Agenda of Report to Tasman District Council Meeting

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.3 Change of name for Regulatory Committee

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Elaine Stephenson, Democracy Services Advisor
Report Number:	RCN22-12-23

1 Summary

1.1 It is proposed to change the name of the Regulatory Committee to the Environment and Regulatory Committee, and to reinforce an environmental focus as part of the Committee’s purpose and areas of responsibility.

1.2 Updated Terms of Reference for the Environment and Regulatory Committee are appended as Attachment 1.

1.3 A review of the Council’s Delegations Register is currently being undertaken, and the Delegations Register will be proposed for adoption in the first half of 2023. Further consideration will be given to where the Council’s responsibilities regarding environmental delivery, governance and regulation sit within the committee structure.

2 Draft Resolution

That the Tasman District Council

1. receives the Change of name for Regulatory Committee report, RCN22-12-23; and

2. amends the name of the Regulatory Committee to the Environment and Regulatory Committee; and

3. adopts the updated Environment and Regulatory Committee’s Terms of Reference in Attachment 1 of the agenda report; and

4. notes that a review of Council’s Delegations Register is currently being undertaken, and an updated Delegations Register will be provided for adoption in the first half of 2023; and

5. notes that staff will undertake the necessary administrative actions relating to the above changes to the Environment and Regulatory Committee.

3 Purpose of the Report

3.1 To change the name of the Regulatory Committee to the Environment and Regulatory Committee.

3.2 To reinforce an environmental focus in the Environment and Regulatory Committee’s delegations.

4 Background and Discussion

4.1 In the previous Council term, at a councillor workshop on 24 August 2022, discussion included the possibility of a name change and areas of responsibility for the Regulatory Committee to better reflect the upcoming environmental challenges, biodiversity outcomes and focus areas; the need to encourage behavioural change and to highlight the value of the environment and the way our community interacts with it.

4.2 At the 3 November 2022 Council meeting, it was noted that a report would be provided to this meeting regarding the change of name for the Committee.

4.3 Attachment 1 is an updated Terms of Reference for the Environment and Regulatory Committee which adds the following environmental responsibilities to the Committee’s delegations:

4.3.1 Ensure the effective promotion of sustainable management of natural and physical resources of the Tasman Region through appropriate performance monitoring and receipt of information; and

4.3.2 Monitor the implementation and progress of biodiversity activities within the Tasman Region; and

4.3.3 Ensure that the management of natural and physical resources gives effect to the principles of Te Tiriti O Waitangi.

4.4 It is anticipated that reinforcing an environmental focus into the Committee will allow it to incorporate both statutory and non-statutory approaches in the management of the natural and physical resources of the Tasman Region. The overall strategy for biodiversity will remain with the Strategy and Policy Committee.

4.5 A review of the Council’s Delegations Register is currently being undertaken, and the Delegations Register will be proposed for adoption in the first half of 2023. In the review, further consideration will be given to where the Council’s responsibilities regarding environmental delivery, governance and regulation sit within the committee structure.

5 Options

5.1 The options are outlined in the following table.

	Option	Advantage	Disadvantage
1.	Agree to the change of name of the Regulatory Committee to the Environment and Regulatory Committee	The new name and additional responsibilities reflect the Council’s Regional Council and Te Tiriti o Waitangi obligations and better reflect the Committee’s desired environmental focus.	The Council’s Delegations Register is undergoing review, there may be further changes to committee Terms of Reference.
2.	Decline the change of name	None identified.	Does not reflect the Council’s Regional Council and Te Tiriti o Waitangi obligations or the Committee’s desired environmental focus

5.2 Option one is recommended.

6 Strategy and Risks

6.1 The Council’s Delegations Register is currently undergoing a review and any further changes regarding environmental responsibilities recommended as a result of the review will be provided to the Council for consideration.

7 Policy / Legal Requirements / Plan

7.1 There are no changes proposed to the Committee’s Statutory powers.

7.2 This proposal gives the Environment and Regulatory Committee responsibility for ensuring that Council gives effect to the principles of Te Tiriti o Waitangi for the management of natural and physical resources in the region. This reflects the direction set in the Natural and Built Environment Bill designed to repeal and replace the Resource Management Act 1990.

8 Consideration of Financial or Budgetary Implications

8.1 There may be increased focus on environmental reporting which will take additional staff time. However no additional Council resources are anticipated.

9 Significance and Engagement

9.1 This proposal is considered of low significance and no consultation is required.

	Issue	Level of Significance	Explanation of Assessment
1.	Is there a high level of public interest, or is decision likely to be controversial?	Low
2.	Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	Yes	This proposal gives oversight of the sustainable management of the region’s natural and physical resources and ensures the principles of Te Tiriti o Waitangi are given effect to.
3.	Is there a significant impact arising from duration of the effects from the decision?		It is anticipated that including an environmental focus into the Committee will allow it to incorporate both a statutory and non-statutory approaches in the management of the natural and physical resources of the Tasman Region.
4.	Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?		This proposal will contribute to the goals.
5.	Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	No
6.	Does the decision create a substantial change in the level of service provided by Council?	No
7.	Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	No
8.	Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	No
9.	Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	No
10.	Does the proposal or decision involve Council exiting from or entering into a group of activities?	No
11.	Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	This proposal gives the Environment and Regulatory Committee responsibility for ensuring that Council gives effect to the principles of Te Tiriti o Waitangi for the management of natural and physical resources in the region.	The Environment and Regulatory Committee will have a voting iwi representative appointed.

10 Conclusion

10.1 Staff support the renaming of the Committee and the addition of responsibilities with an environmental focus.

11 Next Steps / Timeline

11.1 If the Council agrees to the proposal, staff will undertake the administrative changes necessary to reflect the new name and committee delegations.

12 Attachments

1.⇩

Draft updated Environment and Regulatory Committee Terms of Reference

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.4 Motueka Skatepark Upgrade - Funding Application

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Lynne Hall, Horticultural Officer - Motueka & Golden Bay
Report Number:	RCN22-12-24

1 Summary

1.1 Council staff have been working for some time towards an upgrade of the skatepark in Motueka. We have gained external funding together with amounts from Motueka’s Reserve Financial Contributions (RFCs) and the Motueka Community Board Special Projects Fund.

1.2 Costs have risen since the early estimates for the initial concept plan.

1.3 The final tender price is considerably more than previous estimates and quotes on which the funding requests were based.

1.4 The total price to build the skatepark is $335,000 which does not include consent and project management costs - expected to be around $35,000.

1.5 There is a $60,000 shortfall for the full build (including the additional charges) and we now seek to apply to the NZ Community Trust for this amount so that the upgrade can be built as designed.

2 Draft Resolution

That the Tasman District Council:

1. receives the Motueka Skatepark Upgrade - Funding Application report, RCN22-12-24; and

2. approves an application to The New Zealand Community Trust for $60,000 funding to support the construction of the Motueka Skatepark upgrade during the 2022/2023 financial year, in addition to the funding the project has already secured.

3 Purpose of the Report

3.1 To seek a resolution from the Council to apply for funding from the New Zealand (NZ) Community Trust for $60,000 for the Motueka Skatepark Upgrade.

4 Background and Discussion

4.1 In August 2018, Reserves & Facilities staff were requested by the Motueka Community Board to explore an upgrade for the Motueka skatepark. This was the result of the community identifying this as a preferred project.

4.2 The existing skatepark is approximately 20 years old and is not meeting the requirements of the community. There are several experienced BMX riders using the space together with toddler beginners, scooter riders and skaters. The space has become unsafe for all.

4.3 BMX riders requested the park be made more suitable for their requirements, but this would result in the park becoming unsuitable for other users.

4.4 The community was consulted on a preliminary design and estimates were provided by specialised skatepark builders. The design was agreed in principle but has since been improved after further discussion with users and designers so that it meets the needs of multiple types of use as well as all levels of experience.

4.5 The Council now has a final design for the build (refer to Attachment 1), and after going through the tender process are currently negotiating the final details for the project.

4.6 The Council has been granted resource consent and the building consent is imminent.

4.7 The final cost for the build including consents and consultants is $370,000

4.8 The Council has funding of $312,000 available for the build comprising $50,000 RFCs, $40,000 from the Motueka Community Board, $80,000 from The Rata Foundation and $142,000 from the Lottery Community Facilities Fund.

4.9 We now seek to raise an additional $60,000 to complete the build as it has been designed so that the park will provide a suitable environment for multiple users and all levels of experience.

5 Options

5.1 The options are outlined in the following table.

	Option	Advantage	Disadvantage
1.	Approve the request for staff to apply for additional funding	Will enable the build to be completed as designed to cater for multiple types of use and skill levels	Staff time to apply, and report to funder if application is successful.
2.	Decline the request	No real advantage for not attempting to raise additional funding for the project	Project can still proceed although it will need to be de-scoped to meet available budget.

5.2 Option one is recommended by staff – to approve the request for staff to apply for additional funding.

6 Strategy and Risks

6.1 The preferred approach is to apply for the additional funding so that Motueka gets a fit for purpose facility for their community.

6.2 There is a risk with this fund as it relates to gaming machines, however, NZ Community Trust seeks to provide support directly back to the communities from which the money is derived.

6.3 The project has also been supported by the Lottery Community Facilities Fund.

6.4 There is much excitement in the community about this project and when it will begin. The park upgrade will provide a much safer and usable space for all levels and user types.

7 Policy / Legal Requirements / Plan

.7.1 The project was initiated by the Motueka Community Board in 2018 and funding has been approved by way of the Annual Plan process.

7.2 The Council agreed to a funding application to the Rata Foundation on 8 April 2021.

8 Consideration of Financial or Budgetary Implications

8.1 There is no additional cost to the Council above the $50,000 RFCs and $40,000 Motueka Community Board contributions that have already been approved.

8.2 The Council has received external funding of $220,000 for the project and stasff now seek a further $60,000. If successful, this would result in external funding three times the amount of the Council’s contribution.

9 Significance and Engagement

	Issue	Level of Significance	Explanation of Assessment
1.	Is there a high level of public interest, or is decision likely to be controversial?	Medium	High expectation from the skate community for the facility to be completed. Low/medium - concern over the source of funds for this application
2.	Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	Medium	Great opportunity for outdoor activity, particularly for youth. Some negative connotations around the source of funds
3.	Is there a significant impact arising from duration of the effects from the decision?	No
4.	Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	Contributes	Project will enhance low carbon emission activity.
5.	Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	No
6.	Does the decision create a substantial change in the level of service provided by Council?	No
7.	Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	No
8.	Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	No
9.	Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	No
10.	Does the proposal or decision involve Council exiting from or entering into a group of activities?	No
11.	Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	No	Iwi were consulted in the planning stage.

10 Conclusion

10.1 This report is to request the Council approval for staff to apply for additional funding to the NZ Community Trust for $60,000 to complete the proposed Motueka skatepark build as designed.

10.2 The funders require a resolution from the Council agreeing to the application.

10.3 Without the additional funding the project will need to be de-scoped and the skatepark will fall short of the expectations of the community and the reason for the upgrade - which is to provide a fit for purpose and safe skatepark for all users.

11 Next Steps / Timeline

11.1 The build is expected to commence in late February/early March 2023.

11.2 If approved by the Council, an application will be submitted to NZ Community Trust prior to Christmas. The Trustees meet monthly to agree to funding applications, and staff would expect an answer by February 2023 at the latest.

11.3 If no additional funding can be obtained, the project will still proceed but will need to be de-scoped to remove aspects of the build.

12 Attachments

1.⇩

Motueka Skatepark Upgrade Site Plan

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.5 Nelson Regional Sewerage Business Unit - Business Plan 2023/2024 and Annual Report 2021/2022

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike Schruer, Waters and Wastes Manager
Report Number:	RCN22-12-25

1 Summary

1.1 The Nelson Regional Sewerage Business Unit (NRSBU) was established by the Nelson City Council and Tasman District Council in July 2000. Its purpose is to manage and operate the wastewater treatment facilities at Bell Island and the associated reticulation network efficiently, in accordance with resource consent conditions and to meet the needs of its customers.

1.2 The four major customers are the two councils, Alliance Group and Nelson Pine Industries.

1.3 The Memorandum of Understanding requires that the draft Business Plan be presented annually to each council by 31 December each year.

1.4 The draft 2023/24 NRSBU Business Plan (Attachment 1) has been prepared by the General Manager and was presented to the NRSBU joint committee, which resolved on 16 September 2022 as follows:

That the Nelson Regional Sewerage Business Unit:

1. receives and approves the draft NRSBU Business Plan 2023/2024 subject to minor changes approved by the Chairman; and

2. recommends the draft NRSBU Business Plan 2023/2024 be presented to the Tasman District Council and Nelson City Council for their feedback.

1.5 The NRSBU can only formally adopt the Draft Business Plan after receiving and considering comment from the two councils and is then required to present the final Business Plan to the councils by 20 March, for inclusion in each council’s draft Annual Plan.

1.6 The NRSBU provides an annual report outlining what has been achieved by the business unit during the financial year and its level of performance against the Key Performance Indicators.

1.7 The NRSBU Annual Report 2021/22 (Attachment 2) was presented to the NRSBU joint committee on 16 September 2022. The joint committee recommended that the annual report be presented to both councils for their information.

2 Draft Resolution

That the Tasman District Council:

1. receives the Nelson Regional Sewerage Business Unit - Business Plan 2023/2024 and Annual Report 2021/2022 report RCN22-12-25; and

2. confirms receipt of the draft Nelson Regional Sewerage Business Plan 2023-2024; and

3. notes the budgets in the draft Nelson Regional Sewerage Business Plan 2023-2024 have been included in the draft Annual Plan 2023-2024.

3 Purpose of the Report

3.1 To receive the draft 2023/24 Nelson Regional Sewerage Business Unit (NRSBU) Business Plan (Business Plan) and the NRSBU Annual Report 2021-2022.

4 Background and Discussion

NRSBU Business Plan 2023/2024

4.1 The NRSBU was established by the Nelson City Council and Tasman District Council in July 2000. Its purpose is to manage and operate the wastewater treatment facilities at Bell Island and the associated reticulation network efficiently and in accordance with resource consent conditions and to meet the needs of its customers.

4.2 The four major customers are the two councils, Alliance Group and Nelson Pine Industries.

4.3 The Memorandum of Understanding requires that the Draft Business Plan be presented annually to each council by 31 December each year and allows for each council to provide feedback on the draft Business Plan.

4.4 The draft 2023/24 Business Plan has been prepared by the General Manager and was presented to the Board, who resolved on 16 September 2022 as follows:

That the Nelson Regional Sewerage Business Unit:

1. receives and approves the draft NRSBU Business Plan 2023/2024 subject to minor changes approved by the Chairman; and

2. recommends the draft NRSBU Business Plan 2023/2024 be presented to the Tasman District Council and Nelson City Council for their feedback.

4.5 The NRSBU can only formally adopt the Draft Business Plan after receiving and considering comment from the two councils and is then required to present the final Business Plan to the councils by 20 March, for inclusion in each council’s draft Annual Plan.

4.6 The draft Business Plan is included as Attachment 1.

4.7 There are several items in the draft Business Plan 2023/24 budget that have changed from the previous NRSBU Business Plan 2021/22. These include:

4.7.1 The programme of work for the NRSBU has been significantly altered because of the Activity Management review. The smoothing undertaken during the AMP process means that the regional pipework funding may need to be brought forward if the schedule can be accelerated, and current progress on the regional rising main duplication work suggests that this can be completed by the end of the 2023 calendar year.

4.7.2 Tasman District Council staff have requested NRSBU minimise delays in implementation of the rising main upgrade. Several overflows to the estuary have been caused by insufficient capacity being available at the Beach Road pumpstation.

4.7.3 The General Manager has also included several additional capital items in the budget regarding the inlet works and the treatment capacity at the Bell Island plant, as the inflows being received during rain events is increasing, and it is expected that the duplication of the rising main will allow all flows to reach Bell Island rather than have overflows to the estuary. Additional upgrade capital includes the sludge storage tanks and operator building, incorporating facilities, laboratory, and workshop.

4.7.4 Additional funding has been included to allow the installation of a water reuse pipe between Songer Street pumpstation and Saxton Road pumpstation. This pipe will fill one of the gaps in the reuse pipework and will facilitate wastewater reuse at the Saxton Field sports facility, which will also require a consent application.

4.7.5 Funding has also been added from the 2023/24 year onwards to meet the requirements of the Bell Island resource consent.

Annual Report

4.8 The NRSBU Memorandum of Understanding also requires that the NRSBU presents its Annual Report to each Council. The 2021/22 Annual Report is attached (Attachment 2) for the Council’s information.

5 Options

5.1 The Council has two options:

	Option	Advantage	Disadvantage
1.	Approve the NRSBU Business Plan 2023-2024.	The councils can include budgets in annual plans.
2.	Not approve the NRSBU Business Unit Business Plan 2023-2024.		Will delay Annual Plan process for councils. NRSBU cannot proceed with their work programme.

5.2 Staff recommend Option 1.

5.3 Should the Council not approve the draft Nelson Regional Sewerage Business Unit Business Plan 2023/2024, the NRSBU will not be able to undertake its work programme as proposed.

6 Strategy and Risks

6.1 This report allows the Council to comment on the NRSBU Business Plan and these comments will be considered by the NRSBU joint committee. The risk of not approving the Business Plan is that this could delay the NRSBU implementing its Business Plan for 2023/24 or the councils feeding this information into their 2023/24 Annual Plans.

6.2 The Annual Reports shows how the NRSBU achieved its key performance indicators.

Climate Change Impact Assessment

Issue	Level of Significance	Explanation of Assessment
Is this activity associated with one of the goals in Council’s Climate Action Plan?	Yes	NRSBU Business Plan Goal 1. Council contributes to New Zealand’s efforts to reduce greenhouse gas emissions (including net carbon emissions).

Issue

Level of Significance

Explanation of Assessment

Is this activity associated with one of the goals in Council’s Climate Action Plan?

Yes

NRSBU Business Plan

Goal 1. Council contributes to New Zealand’s efforts to reduce greenhouse gas emissions (including net carbon emissions).

7 Policy / Legal Requirements / Plan

7.1 The NRSBU is a joint committee of the two councils and its activities are included in the Long-term Plans and Annual Plans of each council. Consultation is undertaken by both councils in the preparation and adoption of these plans.

8 Consideration of Financial or Budgetary Implications

8.1 The NRSBU 2023/24 Business Plan reflects an increase in essential renewals expenditure and the commencement of the regional pipeline upgrade.

8.2 The NRSBU Annual Report 2021/22 has no financial impact on the Council.

9 Significance and Engagement

9.1 The draft Business Plan will feed into the Councils’ 2023/24 Annual Plans.

9.2 The presentation of the NRSBU Annual Report is not a significant issue. The report is available to the public and posted on the NRSBU website.

Issue	Level of Significance	Explanation of Assessment
Is there a high level of public interest, or is decision likely to be controversial?	Low
Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	Medium	Upgrades in the plan are likely to have a positive impact on the environment.
Is there a significant impact arising from duration of the effects from the decision?	Low
Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	Low
Does the decision relate to a strategic asset? (Refer Significance and Engagement Policy for list of strategic assets)	Yes	The regional sewerage scheme is a significant asset.
Does the decision create a substantial change in the level of service provided by Council?	Low	Maintaining current levels of service.
Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	Medium	Upgrade costs will impact on rates.
Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	N/A
Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	N/A
Does the proposal or decision involve Council exiting from or entering into a group of activities?	N/A
Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	Position is available on the NRSBU joint committee for Iwi

10 Conclusion

10.1 The NRSBU has approved the draft business plan 2023/2024 and forwarded it to Tasman District Council and Nelson City Council for feedback. Staff have reviewed the draft business plan and recommend that the Council approve the draft business plan.

10.2 The NRSBU has also approved the Annual Report 2021/2022 and this is attached to this report for the Council to receive.

11 Next Steps / Timeline

11.1 The proposed budgets for the NRSBU have been included in the financial estimates for the Annual Plan 2023/2024. Any submissions or feedback from the Council can be considered by the NRSBU in April 2023 before the final Business Plan 2023/24 is adopted.

11.2 If Tasman District Council (or Nelson City Council) seek significant changes to the draft business plan then these changes will need to be agreed by both councils.

11.3 The NRSBU Annual Report 2021/2022 will be posted on the NRSBU website.

12 Attachments

1.⇩	NRSBU Business Plan	40
2.⇩	NRSBU Annual Report	58

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.6 Nelson Tasman Regional Landfill Business Unit - Business Plan 2023/2024 and Annual Report 2021/2022

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike Schruer, Waters and Wastes Manager
Report Number:	RCN22-12-26

1 Summary

1.1 Under its Terms of Reference, the Nelson Tasman Regional Landfill Business Unit (NTRLBU) is required to present its Business Plan to the Nelson City Council and the Tasman District Council.

1.2 The Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024 (Attachment 1) was approved by the NTRLBU Joint Committee on 9 September 2022. The plan is now presented to the Council for approval.

1.3 The NTRLBU provides an annual report outlining what has been achieved by the business unit during the financial year and its level of performance against the Key Performance Indicators.

1.4 The NTRLBU Annual Report 2021/22 (Attachment 2) was presented to the NTRLBU joint committee on 9 September 2022. The joint committee recommended that the annual report be presented to both councils for their information.

2 Draft Resolution

That the Tasman District Council:

1. receives the Nelson Tasman Regional Landfill Business Unit - Business Plan 2023/2024 and Annual Report 2021/2022 RCN22-12-26; and

2. approves the Nelson Tasman Regional Landfill Unit - Business Plan 2023/2024.

3 Purpose of the Report

3.1 The purpose of this report is to approve the Nelson Tasman Regional Landfill Business Unit Business Plan for 2023/2024 and receive the NTRLBU Annual Report 2021/2022.

4 Background and Discussion

NTRLBU Business Plan 2023/2024

4.1 The Nelson Tasman Regional Landfill Business Unit was established as a Joint Committee of Nelson City and Tasman District Councils on 1 July 2017.

4.2 The Nelson Tasman Regional Landfill Business Unit Terms of Reference require a draft Business Plan for 2023-2024 to have been issued to both councils by 31 October 2022.

4.3 Under the Terms of Reference, the Business Unit is required to present a Business Plan that:

4.3.1 … states the activities and intentions of the NTRLBU. It shall outline how those activities relate to the objectives of the NTRLBU as documented in the current strategic plan, the financial forecasts for the following three years, the performance targets for the coming year and any variations to fees and charges proposed for that financial year.

4.4 Key points to note in the draft NTRLBU Business Plan 2023/2024 include:

4.4.1 It is projected that a balanced budget (no surplus or deficit) will be achieved during the 2023/24 financial year if expenditure is maintained within the projected budget at the proposed landfill charges and landfill volumes meet or exceed the assumed level. The proposed 2023/2024 charges reflect an 8.3% increase in charges for general waste, from 2022/23.

4.4.2 An additional rate is proposed for the disposal of sawdust at York Valley Landfill of $510/ton, commencing in 2024/25. This rate reflects the significant difference in density and lack of compaction of sawdust when compared to general refuse and is a better representation of the value of airspace consumed by sawdust. Sawdust is currently charged at the same rate as general refuse.

4.4.3 The NTRLBU has allowed an additional $50,000 per annum in operational costs for the disposal of batteries collected within the Nelson Tasman region.

4.4.4 There is an ongoing $100,000 per annum allowance for studies, investigation and ETS works included in the Business Plan for Emissions Management Improvements. This fund includes the works for the UEF assessment, Swap Analysis, and other actions required to maintain and manage the current ETS position.

4.4.5 This budget is based on the Waste Disposal Levy increase to $50 per ton for the 2023/24 year, and $60 per ton for the 2024/25 year as notified by the Ministry for the Environment and consulted on in the Councils’ Long Term Plans 2021-2031.

4.4.6 The significant changes included in this Business Plan and in the Three Year Renewal and Upgrade Expenditure Forecast above, but not in the AMP are:

· York Valley Landfill leachate, Stability and Airspace upgrade – an additional allowance of $6.4 million has been added (compared to the AMP) over the 2022/23 and 2023/24 period to account for the additional costs for this project. This includes an increase in the project by 8% to account for inflation over the 2021/2022 period.

· An increase in the allowance for emission management including an indicative capital expenditure for implementation of a gas reuse facility. This allowance is indicative and will be refined once an option is selected and designed. This work follows on from the successful acquisition of the Landfill Gas Boiler.

· Additional works for the Stormwater system to account for sediment management and for the revised Western Dirty and Clean water drains not yet completed.

· Allowance for the installation of a facility for the diversion of HAIL material from landfill including blending and testing equipment.

· The development of selected Landfill Waste Reuse technology project and the implementation of a pilot facility to demonstrate the effectiveness of this facility.

4.5 The draft NTRLBU Business Plan was approved by the Nelson Tasman Regional Landfill Business Unit Joint Committee on 9 September 2022.

Annual Report

4.6 The NTRLBU Memorandum of Understanding also requires that the NRSBU presents its Annual Report to each Council. The 2021/22 Annual Report is attached (Attachment 2) for the Council’s information.

5 Options

5.1 The Council has two options:

	Option	Advantage	Disadvantage
1.	Approve the Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024.	Councils can include budgets in annual plans
2.	Not approve the Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024.		Will delay Annual Plan process for Councils. NTRLBU cannot proceed with their work programme

5.2 Staff recommend Option 1.

5.3 Should the Council not approve the Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024, both councils will not receive the required income to manage the business unit. The business unit would run at a loss.

6 Strategy and Risks

6.1 As noted above, if the Council does not approve the Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024, there is a risk that the business unit will not receive the income required to ensure it remains viable.

6.2 The Nelson Tasman Regional Landfill Business Unit requires a Business Plan to ensure it meets its statutory obligations to central government relating to the emissions trading scheme.

7 Policy / Legal Requirements / Plan

.7.1 The Nelson Tasman Regional Landfill Business Unit was established under a deed of agreement between Nelson City and Tasman District Councils.

7.2 The Business Unit is required to plan for the needs of the community in a cost efficient and environmentally sustainable manner in accordance with the objectives of the Joint Waste Plan.

8 Consideration of Financial or Budgetary Implications

8.1 The Nelson Tasman Regional Landfill Business Unit is authorised by both councils to set fees and charges for waste disposal at the regional landfill facilities by 30 June each year; including the power to apply discounted fees and charges for the disposal of waste in bulk; and may determine other circumstances where discounted fees and charges may be applied. For clarity, the fees and charges shall be included in the draft annual Business Plan that is submitted for Council approval each year.

8.2 The NTRLBU Annual Report 2021/22 has no financial impact on the Council.

9 Significance and Engagement

9.1 The Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024 is of low significance. Larger waste management companies who are the Business Unit’s main customers are made aware of the Unit’s Business Plan.

Issue	Level of Significance	Explanation of Assessment
Is there a high level of public interest, or is decision likely to be controversial?	Low
Is there a significant impact arising from duration of the effects from the decision?	No
Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	Low
Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	Yes	The York Valley Landfill and Eves Valley Landfill are strategic assets managed by the Nelson Tasman Regional Landfill Business Unit.
Does the decision create a substantial change in the level of service provided by Council?	No
Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	No
Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	No
Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	No
Does the proposal or decision involve Council exiting from or entering into a group of activities?	No

10 Conclusion

10.1 Under its Terms of Reference, the Nelson Tasman Regional Landfill Business Unit (NTRLBU) is required to present its Business Plan to the Nelson City Council and the Tasman District Council.

10.2 The draft Nelson Tasman Regional Landfill Business Unit Business Plan 2023/2024
(Attachment 1) was approved by the NTRLBU Joint Committee on 9 September 2022.

10.3 The NTRLBU has also approved the Annual Report 2021/2022 and this is attached to this report for the Council to receive.

11 Next Steps / Timeline

11.1 Once both councils have approved the Nelson Tasman Regional Landfill Business Unit Business Plan, staff will notify the Joint Committee of their decision.

12 Attachments

1.⇩	NTRLBU Business Plan	92
2.⇩	NTRLBU Annual Report	112

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.7 Traffic Control Devices Update December 2022

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike van Enter, Senior Transportation Engineer
Report Number:	RCN22-12-27

1 Summary

1.1 The Council’s Traffic Control Bylaw, and its accompanying Traffic Control Devices Register and map display, is the mechanism for the Council to record all authorised traffic control devices (such as parking restrictions and regulatory traffic signs).

1.2 This report requests the Council’s approval for various changes to the Traffic Control Devices Register.

1.3 A summary of the changes can be found in Section 2, and a diagrammatic description of each change in Attachment 1.

2 Draft Resolution

That the Tasman District Council:

1. receives the Traffic Control Devices Update December 2022 report, RCN22-12-27; and

2. approves the following changes to the Traffic Control Devices Register under the Traffic Control Bylaw, with effect from 16 December 2022:

Street name	Primary Restriction	Start NZTM X	Start NZTM Y	End NZTM X	End NZTM Y
Wharf Road	Stop control	1601733.62	5446193.12
Penny Lane	Stop control	1617768.11	5423149.72
Kahu Close	Stop control	1600518.86	5456861.34
Aranui Road	No parking	1607839.62	5433362.47	1607840.88	5433360.94
Aranui Road	No parking	1607844.43	5433355.68	1607845.59	5433354.00
River Terrace Road	Heavy vehicles no engine brakes next 1.5km	1607845.59	5433354.00	1609523.60	5419109.31
Queen Victoria Street	Heavy vehicles no engine brakes next 2.0km	1599530.51	5446738.44	1599624.89	5448795.82
Trewavas Street	Stop control	1601936.53	5447395.34
Queen Street	Bus stop	1615661.65	5423320.90	1615685.83	5423291.34
Queen Street	Bus stop	1615668.36	5423293.13	1615651.35	5423312.24
Queen Street	P60	1615684.86	5423272.30	1615677.62	5423281.04
Queen Street	Disabled space	1615689.49	5423285.44	1615693.59	5423280.51
Queen Street	P60	1615707.78	5423244.91	1615697.78	5423256.92
Lower Queen Street	Shared path	1615191.13	5423861.08	1615076.25	5424006.11
Hunter Avenue	No parking	1615748.05	5422266.70	1615738.64	5422266.81
2 Appleby Highway	No parking	1613979.06	5422962.63	1613977.05	5422978.75
Cropp Place	No parking	1617109.77	5422490.47	1617068.53	5422436.91
Cropp Place	No parking	1617077.41	5422467.48	1617088.90	5422488.72
Cropp Place	No parking	1617095.51	5422495.21	1617095.73	5422505.17
Tasman Street	Disabled space	1573139.04	5497079.78	1573136.95	5497084.56
Tasman Street	P120	1573140.83	5497102.18	1573150.53	5497082.55

3 Purpose of the Report

3.1 The purpose of this report is to gain the Council’s approval to make changes to the Traffic Control Devices Register and map display to ensure these are enforceable under the Traffic Control Bylaw.

4 Background and Discussion

4.1 The Council’s Traffic Control Bylaw enables the Council to establish, alter or remove traffic control devices by resolution, amending the Traffic Control Devices Register and map display.

4.2 Parking restrictions and certain regulatory Traffic Control Devices are managed through this bylaw. Changes require a resolution of the Council to become legally enforceable.

4.3 The last update of the Traffic Control Devices Register was approved by the Council on
7 April 2022.

4.4 Consultation is undertaken with immediately adjacent landowners and relevant feedback summarised for each change described below.

Richmond

4.5 Penny Lane - Alter priority control from Giveway to Stop at its intersection with Champion Road. Available sightlines warrant Stop control.

4.6 Queen Street - New Bus Stop, disabled space and P60 time restrictions to allow the new bus service to operate in June 2023.

4.7 Lower Queen Street - Add existing shared path into our Bylaw Schedule.

4.8 Hunter Avenue - Add no-parking restriction in the cul-de-sac turning head so that the road can be used as intended.

4.8.1 One objection has been received by a regular visitor to a residence with no parking available on-site. The visitor has spinal stenosis so would find it difficult to walk from the nearby road-side parking. The visitor makes food deliveries to a terminally ill resident. The other residents come and go frequently so parking on the property is inconvenient for the other residents.

4.9 2 Appleby Highway - No Parking restriction on New Zealand Transport Agency land that is open to the public and meets the definition of a public road. Parking prevents the proper use of the site’s intersection with the main road.

4.10 Cropp Place - Proposed ‘No Parking’ lines as shown by Attachment 1. The road width of 5.8 to 6.1m makes it difficult for vehicles to pass if visitors park on both sides of the road. The road has increased parking demand at times due to the Easby Park access point.

4.10.1 Some feedback received from residents preferred further parking removal to enable more convenient boat and caravan access to their properties. Both properties have alternative (two) accessways with unrestricted maneuvering for large vehicles.

4.10.2 The additional parking restrictions have not been proposed. The proposed restrictions provide a balance between providing on-road parking and providing reasonable property access.

Māpua

4.11 Aranui Road - Increase no parking restriction either side of the Hardy Kids driveway from the default 1.0m to 2.0m to aid maneuvering into this busy driveway.

Motueka

4.12 Wharf Road - Alter priority control from Give way to Stop at its intersection with Ward Street. Requested by Talley’s due to ongoing near misses at this intersection due to drivers failing to give way.

4.13 Trewavas Street - Alter priority control from Give way on Old Wharf Road to Stop control on Trewavas Street. Requested due to ongoing near misses due to vehicles failing to give way. This option was preferred by the Motueka Community Board. Adjacent residents were required to remove some overhanging vegetation, which they have completed.

Kaiteriteri

4.14 Kahu Close – Add STOP priority control.

Collingwood

4.15 Tasman Street – Add a disabled parking space, and P120 time restricted parking outside of On the Spot business. The initial request for a disabled space was for the opposite side of Tasman Street however, the western side is now agreed as appropriate by the On the Spot business owner and a local champion for this disabled space.

No Engine Brakes

4.16 River Terrace Road - Heavy Vehicle Engine Brake restriction at the 60km/h speed threshold on River Terrace Road. Requested by the residents adjacent to this speed restriction. Transporting New Zealand (represent national freight industry) and Police have been consulted and are supportive.

4.17 Queen Victoria Street - Heavy Vehicle Engine Brake restriction at the 50km/h speed threshold on Queen Victoria Street. Requested by the residents adjacent to this speed restriction. Transporting New Zealand (represent national freight industry) and Police have been consulted and are supportive.

5 Options

5.1 The options are outlined in the following table.

	Option	Advantage	Disadvantage
1.	Approve changes proposed in the report and in Attachment 1 with effect from 16 December 2022. This is the recommended option.	Improved function and safety of the road network at these locations. Positive feedback from the community who raised some of the concerns and proposals with Council staff.	There is some cost from existing budgets to install ‘No Parking’ lines and extra signs. There may be a small number of residents who have opposed the proposed changes that will not be happy that the changes were approved.
2.	Approve some of the proposed changes.	Some improved function and safety of the road network at these locations. There would be some positive feedback from the community who raised concerns with some of the proposals from the Council.	There is some cost for the installation of the No Parking lines and extra signs, although this is minimal. If all changes are not approved, there could be safety issues and negative feedback from the community, particularly where proposals were consulted on.
3.	Withdraw the proposed changes.	Nil identified.	There could be safety issues and negative community feedback from those already consulted with.

5.2 Option one is recommended.

6 Strategy and Risks

6.1 The proposed traffic control device changes are consistent with the Council’s road safety aims and the Richmond and Motueka Town Centre Parking Strategy 2018–2038.

7 Policy / Legal Requirements / Plan

.7.1 The proposed changes meet the requirements of the Tasman District Council Traffic Control Bylaw 2016.

8 Consideration of Financial or Budgetary Implications

8.1 The cost of extra signage and the installation of ‘No Parking’ lines and signage for parking restrictions is not significant. These costs will be met from the existing subsidised roading budgets.

8.2 Some of the changes have already been installed in response to more urgent issues.

8.3 The cost for updating the Traffic Control Devices Register is covered as part of day-to-day business

9 Significance and Engagement

9.1 The following table describes the level of significance of this decision. Overall, the level of significance is considered low as the changes are generally minor and we have consulted with directly affected residents, businesses, and stakeholders.

	Issue	Level of Significance	Explanation of Assessment
1.	Is there a high level of public interest, or is decision likely to be controversial?	Low	Council staff have consulted with immediately adjacent landowners. Several proposed changes have come from members of the community who are directly affected. Proposed changes have negative effects on some members of the community as reported in section 4 There will be improved road safety or function at the locations of the proposed changes.
2.	Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	Low	Good management of traffic controls and parking can contribute towards the success of a place; poorly managed and designed traffic controls and parking can undermine efforts to create highly liveable urban areas. The parking restrictions proposed are to address issues identified and no economic impacts have been identified.
3.	Is there a significant impact arising from duration of the effects from the decision?	Low	Traffic devices are not permanent and can be changed if required.
4.	Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	Contribute	The parking and traffic control device changes proposed are minor and are unlikely to alter driving behaviour. Providing for improved bus services may encourage bus use and reduce transport emissions.
5.	Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	Low	The Council’s roading network is considered a strategic asset, but these changes are small in scale.
6.	Does the decision create a substantial change in the level of service provided by Council?	Low	Minimal effects on level of service provided.
7.	Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	No
8.	Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	No
9.	Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	No
10.	Does the proposal or decision involve Council exiting from or entering into a group of activities?	No
11.	Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	Yes

10 Conclusion

10.1 The proposed changes to traffic control devices are required to ensure the safe functioning of the road network at these locations.

11 Next Steps / Timeline

11.1 If the Council approves the proposed changes:

· Staff will provide instructions to our contractors to implement the changes required.

· Staff will update the Traffic Control Devices Register as soon as changes are in place.

· Community Infrastructure staff will provide the Communications team with details of the significant approved changes to be included in Newsline and on the Council’s website

12 Attachments

1.⇩

Traffic Control Devices Update December 2022

150

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.8 Tasman District Council Schedule of Meetings (Meetings Calendar) 2023

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Elaine Stephenson, Democracy Services Advisor
Report Number:	RCN22-12-28

1 Summary

1.1 Clause 19, Schedule 7 of the Local Government Act 2022 sets out requirements for written notification of meetings to elected members.

1.2 It is standard practice for Councils to adopt a schedule of meetings by resolution in order to meet those legislative requirements (Attachment 1).

1.3 The proposed schedule is based on a six-weekly cycle for Council and Standing Committees, four-weekly cycle for Community Boards, with other cycles, such as quarterly, for various committees and subcommittees, for example, Audit and Risk.

1.4 It is noted that some meetings will be required to be arranged on an ‘as needed’ basis, for example, submission hearings.

1.5 To accommodate Council business, the schedule may need to be amended and elected members will be given as much notice as possible of any changes that become necessary.

1.6 Elected members will also receive notification through the weekly Tasman Update, which gives details of upcoming Council meeting commitments for the following week.

1.7 In addition, the electronic Outlook meetings calendar will also be kept up to date. Councillors can access the Outlook meetings calendar via their Council laptops.

2 Draft Resolution

That the Tasman District Council

1. receives the Tasman District Council Schedule of Meetings (Meetings Calendar) 2023 report, RCN22-12-28; and

2. adopts the Tasman District Council Schedule of Meetings (Meetings Calendar) for the 2023 calendar year as set out in Attachment 1 to the agenda report; and

3. notes that the Schedule of Meetings may be amended, as required, to perform Council business efficiently.

3 Purpose of the Report

3.1 To adopt the Tasman District Council Schedule of Meetings (Meetings Calendar) for 2023, in accordance with Clause 19, Schedule 7 of the Local Government Act 2002.

4 Options

4.1 The Council can choose to either adopt the proposed Schedule of meetings for 2023, amend the proposed Schedule, or not to adopt the proposed Schedule.

4.2 Staff recommend adoption of the Schedule of meetings to provide clarity for elected members regarding their meeting commitments and to meet legislative requirements.

5 Policy / Legal Requirements / Plan

.5.1 Adopting a schedule of meetings is in accordance with Schedule 7 of the Local Government Act 2002. Adoption of the proposed Schedule of Meetings 2020 assists the Council in enabling democratic decision-making as efficiently and effectively as possible and assists staff to schedule reports appropriately.

6 Consideration of Financial or Budgetary Implications

6.1 There are no direct budgetary consequences related to the decision to adopt the Schedule of Meetings 2023.

7 Significance and Engagement

7.1 This is a decision for Council and no engagement is required to set Council’s Schedule of Meetings, it is an internal process.

	Issue	Level of Significance	Explanation of Assessment
1.	Is there a high level of public interest, or is decision likely to be controversial?	low
2.	Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	no
3.	Is there a significant impact arising from duration of the effects from the decision?	no
4.	Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	no
5.	Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	no
6.	Does the decision create a substantial change in the level of service provided by Council?	no
7.	Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	no
8.	Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	no
9.	Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	no
10.	Does the proposal or decision involve Council exiting from or entering into a group of activities?	no
11.	Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	no

8 Conclusion

8.1 Staff recommend adoption of the Schedule of Meetings 2023; this is the same meeting cycle that has been used successfully in previous trienniums and will allow elected members to plan their other engagements/commitments accordingly and provide clarity for the public.

9 Next Steps / Timeline

9.1 If the Schedule of Meetings is adopted, staff will complete the necessary administration to arrange the meetings as per the schedule, this includes the provision of a Calendar of Meetings on Council’s website for the calendar year and the issuing of meeting invitations to elected members, so that their diaries are appropriately up to date with the meetings that they are required to attend.

10 Attachments

The meetings calendar will be distributed under separate cover.

8.9 Machinery Resolutions Report

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Alexis Brough, Executive Support Officer, Chief Executive's Office
Report Number:	RCN22-12-29

EXECUTIVE SUMMARY

The execution of the following documents under Council Seal require confirmation by Council.

RECOMMENDATION/S

That the report be received and that the execution of the documents under the Seal of Council be confirmed.

DRAFT RESOLUTION

That the Tasman District Council

1. receives the Machinery Resolutions report, RCN22-12-29, and that the execution of the following documents under the Seal of Council be confirmed:

Deed of Assignment of Lease – Library Café – Franck Sivignon trading as Richmond Library Café as Vendor of Business and Vanny Heng as Purchaser of Business.

Pōhara Boat Club Lease Renewal – Pōhara Boat Club is seeking a new lease following the expiry of its current lease in 2019.

Rabbit Island Vodafone Site Licence – Vodafone New Zealand is wanting a new licence over the land that its cell phone tower occupies on the eastern end of Rabbit Island. The agreement expired on 25 February 2022. Council has been awaiting Vodafone contractors to remedy an electrical cable that was required to be placed underground. This work has now been completed.

Huia Rugby Football Club Incorporated – This community has Resource Consent and TRMP approval to build a new clubhouse on Sports Park Motueka. The new Deed of Lease for the land will be for an initial 11 years (1 September 2022 to 31 August 2023) with two Rights of Renewal for 11 years each (1 September 2033 to 31 August 2024 and 1 September 2044 to 31 August 2055) for a grand total of 33 years from
1 September 2022 to 31 August 2055.

Lease – Downer New Zealand Limited – This lease grants a term of five years with options for renewal for a further 5-year term for processing gravel on the Waimea River Berm land at Bartlett Road.

Assignment of Lease Motueka Aerodrome – Z-Energy to BP Oil New Zealand Limited- Assignment of Lease and continuation of fuelling services at Motueka Aerodrome.

Deed of Funding Essential Freshwater Fund - The Deed provided for funding to be granted to the Council of up to $1,500,000 (GST exclusive). The purpose the grant is to fund the engagement of staff to support catchment group initiatives for strengthening regional capacity and capability between the Council, catchment groups and tangata whenua in the region to deliver the Essential Freshwater reforms.

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.10 Quarterly Treasury Report

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	James Bagnall, Financial Analyst
Report Number:	RCN22-12-30

1 Summary

1.1 This report provides an update on the Council's Treasury operations, reporting on compliance with the treasury policy, along with a market update.

1.2 At 31 May 2022, the Council's total outstanding debt was $249.2 million. Key activity since the last report to the committee comprises:

· August 2022:

o $12.0 million of commercial paper held by LGFA was re-issued as $8.0 million for 9 months and $4.0 million for 6 months, completing the re-balancing of Council's short-term borrowing into 3 × $8.0 million for nine-month terms at 3-month intervals.

o $17.5 million LGFA of fixed-rate loans was drawn for Waimea Community Dam funding; $8.1 million for share purchases in Waimea Water Limited, $9.4m in shareholder advances.

· November 2022:

o $8.0 million of short-term commercial paper held by LGFA was rolled over for a further 9-month term.

At 30 November 2022, Council's total debt stood at $266.7 million.

1.3 The Council is compliant with all limits in the current Treasury Risk Management Policy: §4.2 Borrowing Capacity; and §6.2.2 Liquidity Funding/Risk Position.

1.4 The current interest rate risk position is temporarily non-compliant with §6.1.2 Interest Rate Risk limit in future years. The debt forecast includes fixed-rate loans for pass-through lending to Waimea Water Ltd for the Waimea Community Dam but those loans haven't been borrowed yet, so the current position seems too low.

1.5 The Council is not compliant with §6.3 Counterparty Risk, having $34.1 million risk with Westpac (limit is $30.0 million per institution) due to a $25.0 million term deposit. Westpac interest rates were significantly higher than competing banks, offsetting the increased risk. A decision was taken by the Group Manager Finance to allow a minor policy because of the financial benefits of doing this. The Counterparty Risk limits will be reviewed as part of the Treasury Policy Review. This policy review is scheduled for Q1 2023.

1.6 The interest rate differential between the amount the Council has prefunded from the LGFA and the amount re-invested in deposits is a current side benefit and not the driver of the pre-funding strategy. Currently, term deposit rates out to five years are all a bit lower than LGFA marginal borrowing cost, but this is the average, with some banks (e.g. Westpac) being higher.

1.7 The Council’s cost of borrowing (loan interest, swaps interest differential, facility fees) is 3.881% on Total Debt, compared to a budget of 3.63% (2020-21 budget was 3.50%). Due to our conservative approach in uncertain times, the Treasury (internal bank) cost centre has a modest retained surplus. This is due to lower than forecasted debt levels and lower than budgeted finance costs over t recent years. This retained surplus will likely cover the higher-than-budget borrowing costs for the 2022-2023 year.

1.8 Inflationary pressures have caused the Reserve Bank to make increasing bigger rises to the OCR (Overnight/Official Cash Rate), which is now at 4.25%pa. The OCR influences the price of borrowing money in New Zealand and allows the Reserve Bank to influence the level of economic activity and inflation. Further increases to the OCR are predicted by the ANZ and other commentators. That’s framed by debate about whether increased interest rates would help with addressing the current inflationary pressures. Those pressures are arising from monetary and fiscal policy settings, along with the global economic situation.

1.9 The Council has pre-funded the next 12 months of scheduled LGFA loan repayments being $25.0 million due in April 2023. Pre-funding improves the Council’s liquidity position and is seen as positive from a credit-rating perspective. Prefunding also help address refinancing risk. Staff continue to monitor cash flows closely. This monitoring will inform the timing of any drawdown of additional borrowing.

1.10 Crown Irrigation Investments Ltd (CIIL) interest-free facilities total $28.0 million and are now fully drawn. They were provided to assist with funding and cost over-runs for the Waimea Community dam project. Additional advances for this project are now sourced from the LGFA.

1.11 Council will have a better understanding of the financial implications related to the proposed transfer of debt to the three waters entity C in Q1 2023. By that time (or possibly prior to Christmas) the bill containing the transitional provisions will be introduced to Parliament. Once the bill is introduced, we will assess the implications for Council and the appropriate treasury response to managing our ongoing borrowing programme.

2 Draft Resolution

That the Tasman District Council receives the Quarterly Treasury Report, RCN22-12-30.

3 Treasury November 2022

Borrowing

3.1 The Council is compliant with its 2019 Treasury Risk Management Policy, §4.2.

§4.2: Borrowing	Nov 2022	Within Limits	Possible Limit
Net external debt ≤20% of equity*	10.3%	ü	$353m	Net Debt
Net external debt ≤225% of total operating revenue*	117.6%	ü	$346m	Net Debt
Net interest* ≤15% of total revenue*	4.8%	ü	$23m	Net Interest
Net interest* ≤25% of total rates*	9.5%	ü	$19m	Net Interest
Liquidity ≥110% of total external debt	121.8%	ü	$268m	Total Debt
* Latest audited results: Annual Report 2021, published 16-Dec-21

3.2 The actual result closest to the limit sets the indicative maximum borrowing amount. The liquidity limit would be the first one reached if total debt rose to $268 million, however this would only occur if the Council used up existing facilities without arranging new loans/facilities.

3.3 The interest to revenue and interest to rates limits are sensitive to movements in borrowing costs. The current high limit on potential borrowings is due to the historically low interest rates (perpetuated by the use of interest rate swaps).

3.4 With a projected increase in debt, combined with a reduction in rates and other income in 2020-21, the debt to revenue ratio will deteriorate when the 2022 Annual Report is adopted. This ratio is key in assessing our credit rating.

3.5 On 30 June 2020, LGFA shareholders agreed to change the LGFA debt covenants. The new covenants allow for a debt to revenue ratio of 300% in 2020-21 and 2021-22 for A- or better-rated councils, with a reduction back to 280% over the coming years. The Council’s Treasury Policy debt to revenue ratio limit is currently lower at 225%; any increase in this limit would require an amendment to the current Treasury policy.

Debt Levels

$266.7m	Total Debt	All borrowing
$193.6m	Gross Debt	Total Debt, minus pre-funded and pass-through loans
$181.0m	Net Debt	Gross Debt, minus all other deposits

Cost of Borrowing and Cost of Funds

3.656%	Cost of Loans	Interest, as % of Total Debt
0.180%	Cost of Swaps	Interest differential (w.a. 0.510%), as % of Total Debt
0.046%	Cost of Facilities	Line fees (w.a. 0.305%), as % of Total Debt
3.881%	Cost of Borrowing	Total interest and fees, as % of Total Debt

Interest Rate Risk Position

3.6 This shows a snapshot of the current fixed rate debt – fixed-rate loans and floating-to-fixed swaps – that matures over time, against a corridor of the policy maximum and minimum levels (as a % of forecast Gross Debt). "Fixed-rate" is defined as having an interest rate resetting maturity/expiry date greater than 12 months away.

3.7 The current debt forecast includes fixed-rate loans for pass-through lending to the WCD. However, those loans have not been borrowed yet, making the current position briefly non-compliant in some future years.

§6.1.2: Interest Rate Risk	Minimum	Maximum	Fixed*	Within Limits
Current	50%	95%	88%	ü
Until Nov 2023	50%	90%	67%	ü
Until Nov 2024	45%	85%	48%	ü
* Fixed-rate loans and swaps still available at future date ÷ forecast debt at future date

Interest Rate Swaps

3.8 The Group Manager Finance has delegated authority to enter into interest rate swaps on behalf of the Council on the proviso that such transactions are reported back to the Council. The Council’s approval is required before entering into long-dated swaps with a maturity over 12 years.

3.9 The Council's swap coverage will not currently exceed potential floating-rate debt (FRNs, short-term commercial paper, facilities) for several years.

3.10 No swap transactions were entered into since June 2018.

Liquidity

3.11 The liquidity ratio calculation represents the total committed bank facilities and term debt amounts, together with liquid investments, over the total debt amount. The liquidity ratio is 121.8% (target: >110%) and represents the debt headroom available within the Council’s facilities, along with cash available over and above its existing external debt.

Funding Maturity Risk Position

3.12 This chart groups loan maturities in 12-month blocks. Also shown are available facilities, deposits linked to pre-funding loans, and pass-through loans. The shaded background shows the maximum and minimum liquidity maturity bands (including facilities) in the 2019 Treasury Risk Management Policy:

*§6.2.2: Liquidity/Funding Risk**	Minimum	Maximum	Nov 2022	Within Limits
0 – 3 Years	15%	60%	36%	ü
3 – 5 Years	15%	60%	36%	ü
5+ Years	10%	60%	28%	ü
* Including facilities, and net of linked deposits

3.13 Ensuring a spread of maturities reduces the risk of having to find large amounts of capital, or refinance loans, at a time in the future which may be unfavourable.

Counterparty Credit Risk

3.14 The 2019 Treasury Risk Management Policy, §6.3 requires that New Zealand registered banks (as counterparties) must have a minimum S&P (or equivalent) short-term rating of A-1+ or long-term rating of AA-. All the Council’s counterparty banks are S&P AA- rated. A decision was taken to breach policy regarding Westpac because of the financial benefits of doing this.

§6.3: Counterparty Risk – $30m	Deposits*	Swaps**	Nov 2022	Within Limits
ANZ	-	$1.8m	$1.8m	ü
ASB	$12.7m	$1.7m	$14.4m	ü
BNZ	$0.0m	-	$0.0m	ü
Westpac	***$25.0m	$9.1m	$34.1m	🗶
* 100% of principal 3% of notional value × remaining years * Westpac term deposit interest rates significantly exceed other banks' rates

Current Borrowings

Counterparty	Fixed*	Floating	Nov 2022
LGFA	$90.2m	$124.5m	$214.7m
LGFA (short-term Commercial Paper)	-	$24.0m	$24.0m
Crown Irrigation Investments Ltd (interest-free loans)	$28.0m	-	$28.0m
ASB Facility/Overdraft	-	-	-
Westpac Facility	-	-	-
Total	$118.2m	$148.5m	$266.7m
* Having an interest rate resetting maturity/expiry date greater than 12 months.

Impact of Three Waters Reform

3.15 The Council is now considering the impact of the proposed three-waters reform on the Council balance sheet and Treasury Risk Management Policy settings. We are awaiting a firm indication from Central Government of its decision following the current round of feedback. Once that is known, we will look to position the Council in the best possible way to manage the financial outcomes from any changes. The previous indications were that while debt will be repaid by the proposed three waters entities, the close-out of the related derivatives (interest rate swaps) would be a cost to the Council. These costs are expected to be met from the Government's transitional funding.

4 Investments

4.1 The Council’s cash investments total $37.7 million with an average interest rate of 3.732%. In line with the Treasury Policy, specific reserves are not kept as cash. The Council continues to maintain adequate cash reserves and committed bank facilities to support any drawdown against specified reserves.

4.2 The individual investment balances are as follows:

Counterparty		Nov 2022	Interest
ASB	Call Account	$12,655,134	4.25%
BNZ	Call Account	$100	-
Westpac	Call Account	$2,097	1.1%
ASB	On-call Money-market	$2,950	4.1%
Westpac	Term Deposit (238 Days)	$25,000,000	3.47%
Total		$37,660,281	3.732%

4.3 Since October 2021, ASB has included the Council in the all-of-government arrangement which pays interest on call account balances at the previous day's OCR. This is currently better than the ASB on-call Money-market account rate that other customers receive. This account is usually used for daily surplus cash.

5 Emissions Trading Scheme

5.1 The objective of the Emissions Trading Scheme (ETS) carbon credit policy is to minimise the impact of the movements in the carbon credit prices on Council.

5.2 ETS risk is managed under the limits in the 2019 Treasury Risk Management Policy, §6.4.

§6.4: Forward Cover Risk	Minimum	Maximum	Oct 2021	Within Limits
Committed*	80%	100%	100%	ü
Forecast Period
0 – 1 Years	0%	80%	80%	ü
1 – 2 Years	0%	50%	50%	ü
2 – 3 Years	0%	30%	0%	ü
* Exposure becomes committed in Jan-Mar (quarter following emission period as the Council must report emissions from the previous year)

5.3 Consultation has started on proposed amendments to the ETS. There are two sets of proposed amendments to strengthen the ETS framework and to reduce the complexity around the forestry scheme. The Council has no direct exposure to landfills ETS liabilities as these are managed through the Nelson Tasman Regional Landfill Business Unit.

6 Market Comment

6.1 The Overnight Cash Rate (OCR) has been raised another four times since May and is now at 4.25%, with rises to 5.50% now predicted by the ANZ. The Reserve Bank also reported that a package of additional monetary instruments must remain in active preparation. The deployment of such tools will depend on the outlook for inflation and employment.

6.2 High inflation has driven increases in borrowing interest rates in expectation of further OCR rises. Supply-side inflation pressures remain with new causes: Covid restrictions in China disrupting manufacturing supply; and the Ukraine war impacting food and energy prices.

6.3 New Zealand's terms of trade (the ratio between NZ export and import prices) have decreased over winter – more than would be expected of a country which is a net importer over winter – due to the USD strengthening until mid-October.

6.4 According to Statistics New Zealand, 2021 Q4 gross domestic product was 9.21% above 2019 Q4 – i.e. 4.50% year-on-year – indicating no sustained economic downturn to date from the impact of COVID-19.

6.5 The Council staff continue to work closely with PwC our treasury advisors regarding the best debt financing strategy going forward, given the ongoing uncertainty in local and global markets.

7 Treasury Cost Centre

7.1 The Treasury cost centre operates as the Council’s internal bank. It manages the external costs of borrowing and allocates them across internal loans within individual activities. It also pays/charges interest on reserves and activity balances. In accordance with the Treasury Risk Management Policy, these interest rates are set quarterly. For the quarter starting October 2022, interest is charged on loans and overdrawn closed account balances at 3.63% and paid at 0.36% on credit balances for the next quarter.

8 LGFA ESG Borrowing

8.1 The LGFA is looking to borrowing Councils to support its Environmental, Social, and Governance (ESG) reporting and funding initiatives. Investors are increasingly applying these non-financial factors as part of their analysis to identify material risks and growth opportunities. Councils who can align their new borrowing to these factors get a slightly reduced interest rate from the LGFA. The Council staff will be reviewing how we can assist with reporting tracking ESG factors and borrowing over the next 18 months.

9 Attachments

Nil

Tasman District Council Agenda – 15 December 2022

8.11 October Quarterly Financial Report

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike Drummond, Group Manager - Finance
Report Number:	RCN22-12-31

1 Summary

1.1 This Quarterly Financial Report provides an update on key financial information as at the end of October 2022. To ensure the provision of timely financial information, this report covers four months of operations rather than the usual three.

1.2 The Annual Plan 2022/23 did not assume the level of cost increases arising from the current economic environment including the Government’s monetary policy settings. There will be considerable pressure on the budgets for the remainder of this financial year. That pressure may lead to a number of unfavourable variances. Those variances will need careful management. The Council’s financial performance in the current year will impact directly on the opening position for the 2023/24 Annual Plan year.

1.3 In the Annual Plan 2022/23, the Council budgeted for an October year to date (YTD) controllable deficit of $8.4m; the actual October YTD result was a deficit of $4.6m, which is a favourable movement of $3.8m. The key drivers of the favourable movement are detailed below.

1.4 The focus of this report is the year-to-date position as at 31 October 2022. The table below provides a reconciliation of the accounting position compared to the controllable operational position. This table strips out non-cash items and items that can only be used to fund capital expenditure, eg swap revaluations, vested assets and capital subsidies.

Table 1

1.5 External net debt is $218.6m, compared to a full-year Annual Plan budget of $238.6m. The Council net debt has increased from $204.9m as at 30 June 2022. The increase is due to the funding of capital expenditure during the first four months of the year.

1.6 October 2022 YTD capital expenditure is $16.2m, against a full-year budget including carryovers of $69.9m. We are tracking ahead of budget early in the year, but continue to face Covid-19 supply chain disruptions and contractor demand challenges. We expect additional delays to planned works because of the recovery response to the August 2022 weather event.

2 Draft Resolution

That the Tasman District Council receives the October Quarterly Financial Report,
RCN22-12-31.

3 Purpose of the Report

3.1 The purpose of this report is to update the Council on the YTD financial performance for the four months to 31 October 2022.

4 Background and Discussion – Quarterly Financial Report (October 2022 YTD)

4.1 This is the first Quarterly Financial Report for the 2022/2023 financial year.

4.2 Controllable operating income for October YTD is $58.6m. This is a YTD favourable variance of $11.7m against an October YTD budget of $46.9m. The key drivers are set out in section 6.

4.3 Controllable operating expenditure for October YTD is $63.3m. This is an unfavourable variance of $7.9m on the October YTD budget of $55.3m. The key drivers are set out in section 7.

4.4 Capital expenditure totals $16.2m as at 31 October 2022, against a full-year budget including carryovers of $69.9m.

4.5 Total net debt as at 31 October was $218.6m compared to the 2022/23 full-year budgeted net debt of $238.6m.

5 Statement of Comprehensive Financial Performance

Table 2

5.1 Commentary is provided on the revenue and expenditure in sections six and seven.

6 Income Analysis

Table 3

Controllable Operating Income

6.1 We have received additional controllable income of $11.7m over and above the October YTD budget. The key driver of the variance was forestry revenue in the Enterprise Activity which was well in excess of the budget.

6.2 The key driver of the favourable variance to budget in Environment Assurance relates to additional revenue for Building and Resource Consents ($0.2m); this is demand-driven and reflects the level of consent processing required to support District-wide growth.

6.3 The favourable revenue variance in Community Infrastructure is driven by the Waka Kotahi (New Zealand Transport Agency) subsidy which has a favourable variance of $2m. This relates to the subsidy for the roading costs arising from the extreme weather event in August. This is offset by increased maintenance costs.

6.4 The favourable revenue variance in the Enterprise Portfolio is driven by forestry harvesting revenues. Forestry harvesting revenue is partly offset by the corresponding increased harvesting costs. Two million dollars ($2m) of this favourable variance relates to the sale of carbon credits by the Forestry Activity. The Council now holds additional unencumbered carbon credits which may be sold at a future date or held to offset Council’s carbon footprint.

Non-Controllable Income

6.5 Development and Financial Contributions were $6.4m favourable to budget YTD. At this stage of the financial year, we were already over the full year budget. This reflects the continued growth in the region. The timing and extent of these contributions is hard to predict.

6.6 Capital subsidies and grants were $2.4m unfavourable to budget due to the timing of budgeted Three Waters Stimulus’ revenue.

7 Operating Expenditure Analysis

Table 4

7.1 There was an unfavourable October YTD variance of $7.9m in controllable operating expenditure. There are several significant items that drive this variance.

7.2 Environmental Assurance had a $0.1m unfavourable YTD variance to budget due mainly to increased professional fees relating to building consultancy, however, there is a favourable offsetting variance in their income. The variance is driven by growth and demand for services.

7.3 Community Infrastructure had a $4.1m unfavourable YTD variance to budget due mainly to a higher level of roading maintenance costs carried out in the first four months of the year than budgeted.

7.4 Service and Strategy Management had a $0.1m unfavourable YTD variance to budget mainly due to the timing of various community grants and the Saxton Field grant.

7.5 Enterprise Portfolio had a $3.4m unfavourable YTD variance to budget due higher than budget forestry harvesting costs. This is offset by favourable to budget forestry revenues.

7.6 Departmental overheads had a $2.0m favourable YTD variance to budget due to a range of underspends, including wage-related expenses and general operating costs. These were offset by unfavourable variances in maintenance and depreciation.

7.7 Employee related expenses were $1.1m favourable to budget, however, this will be offset now the union negotiations are completed, and staff are paid the performance and market movements in November (backdated to 1 July 2022). It is expected that staff related costs will well exceed the budgeted level for the full year and that managers will need to find savings in other areas to mitigate this cost increase.

8 Statement of Financial Position

Table 5

8.1 Overall, the financial position of the Council remains strong and ahead of year-end budget expectations.

8.2 Cash and cash equivalents are lower than full-year budget; this reflects the phasing of quarterly cash flows, which are largely driven by the month in which rates fall, November is the next quarterly rates’ month.

8.3 In other financial assets, there is a mismatch between current and long term other financial assets. This part of the balance sheet is where we pre-fund any debt maturing in the next six months or any long-term requirements like the CCO pre-funding associated with the Waimea Community Dam. Having a mismatch between short and long-term assets such as this reflects market conditions in terms of what length of maturity we enter into.

8.4 Higher than full-year budget trade receivables and payables are in line with historical trends.

9 Total Net Debt

9.1 Total net debt is $218.6m as at 31 October 2022, compared to a full-year budget of $238.6m. The increase is due to the funding of capital expenditure during the first four months of the year. The quarterly rates’ take impacts on cash flow movements and, therefore, Net Debt.

9.2 Net debt is gross debt less cash on hand and other liquid financial assets.

· Opening Net Debt July 2022 $210.2m

· Net Debt October 2022 $218.6m

· Net Debt June 2023 per 2022/23 Annual Plan $238.6m

10 Capital Expenditure Analysis

Table 7

10.1 Overall, the capital programme is tracking ahead of budget with total capital spend, excluding Joint Ventures, exceeding budget by $3.6m. This variance is primarily driven by $3m for the purchase of 4 Wensley Road, Richmond in August (reported in Departmental Overheads). We continue to face Covid-19 supply chain disruptions and contractor demand challenges which will put pressure on the forecast and budgets.

11 Attachments

Nil

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.12 Chief Executive's Report

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Leonie Rae, Acting Chief Executive
Report Number:	RCN22-12-32

1 Summary

1.1 The purpose of this report is to provide an update on some key activity since the last Chief Executive’s Update on 22 September 2022.

2 Draft Resolution

That the Tasman District Council receives the Chief Executive's Report, RCN22-12-32.

3 Chief Executive Officer’s Update

3.1 This is my first report to the new Council. Congratulations to all returning and newly elected members. It is great to see a mix of returning elected members, bringing their experience into this new triennium and new elected members bringing fresh ideas and experience. We welcome you all to our Tasman District Council whanau. The inauguration event at Te Āwhina Marae on 9 November 2022 was a very moving and significant occasion. Thank you to Jenna Neame and Renee Thomas for arranging the day.

3.2 Elected member inductions have been a major focus of our governance team. Elected Members have had a full programme, from understanding the governance structure to the work we do and have ahead of us. Further induction activity will continue through to the holiday break and then into January. Thank you to the staff who have provided what has been a comprehensive and informative induction programme.

3.3 On Monday 14 and Tuesday 15 November, Tasman District Council hosted the Local Government New Zealand (LGNZ) South Island Mayor’s and Chair’s conference (the conference) at the Headingly Centre. Day One we heard from Jim Palmer, Future for Local Government (FFLG) Panel chair. John talked about the themes in the FFLG draft report which was released in October. Tasman District Council will be providing a submission to the report by 28 February 2023. The final FFLG report is expected on 19 June 2023.

3.4 On Monday afternoon the conference attendees were treated to a visit to the Waimea Community Dam. Two buses transported the attendees on what was a beautiful day. The attendees were provided with an overview of the construction of the dam, how it will operate, the positive environmental, community and economic benefits. The visit was well organised and well received by the attendees.

3.5 At the conference we received an economic update from Brad Olsen (Infometrics). Brad painted a challenging picture ahead for Councils as we prepare our Annual Plans and LTPs. Notably, labour shortages, high interest rates, cost increases and supply chain challenges.

3.6 The challenges that Brad talked about at the conference are very real for all councils. Council staff at Tasman District Council are keenly focused on the financial challenges when preparing the 2023/2024 Annual Plan (AP). We are acutely aware of the financial pressures that our communities are facing, inflation costs, increased interest rates and the general cost of living. Council is not immune to those financial pressures, rising costs of fuel, electricity, insurance and cost of materials are all increased impacting the cost to deliver all of our services and programmes.

3.7 As we prepare the Annual Plan, we have also started the work on the 2024 – 2034 Long Term Plan (LTP). Council is currently in year two of the 2021 – 2031 LTP, the financial pressures mentioned above are also present for the LTP.

3.8 On 9 December 2022, we will be holding our staff “Values Event”, which recognises staff who demonstrate one or more of our values – Manaakitanga (Caring/Sharing), Kawenga (Responsibility), Auaha (Innovation) and Whanaungatanga (Relationships). Staff nominate their colleagues for an award. For this event 54 staff were nominated. How we celebrate our people culture and values will be part of the elected members induction programme.

4 Council Operations Update

Summary of Investigations, LGOIMA and Complaints

4.1 Figure 1 below provides a summary of the total number of Local Government and Official Information Meetings Act (LGOIMA) requests, complaints and investigations over the past five-year period. They are based on the calendar year. Prior to 2020, complaints and investigations were not tracked, so the data in those years is null.

Chart, bar chart

Description automatically generated

Figure 1: Total Number of Requests, Complaints and Investigations

4.2 Figure 2 below provides a monthly comparison between 2021 and 2022 calendar years for LGOIMA requests, complaints, and investigations. The peak in complaints in December 2021 and January 2022 relates to Council decision making around Covid-19, including the introduction of the My Vaccine Pass requirements.

Chart, line chart

Description automatically generated

Figure 2: Monthly Comparison 2021 and 2022

4.3 The number of LGOIMA requests not being responded to within the statutory timeframes is decreasing, with only two in the most recent monthly reporting cycle. This is despite difficult circumstances this year with many staff off due to COVID-19, the flu or other sickness, sometimes repeatedly.

Delegations Register

4.4 The Legal and Democracy Services team is leading a project for a comprehensive review of the Delegations Register. The intention is for the new Delegations Register to be approved by Full Council in the first half of 2023.

Representation review

4.5 In early 2023 officers will begin work on the Council’s representation review as required by the Local Electoral Act 2001. A representation review addresses the total number of elected members there should be for the district or region and the way they are elected. The Council will need to make several decisions as part of this review including consideration of the system of voting used in the 2025 local government election (STV or FPP) and the creation of a Māori ward.

Code of conduct

4.6 LGNZ has updated its model code of conduct template, which is significantly different from its previous model. The Legal and Democracy Services Team will work with the elected members on the new model, with the aim to bring a new code of conduct before the Council early next year. Until then, the current code of conduct remains in force.

5 People Management

Multi-Employer Collective Agreement (MECA)

5.1 Further to the update in my previous report to the Full Council meeting on 11 August 2022, the Council has now concluded negotiations with the PSA Union for a Multi-Employer Collective Agreement (MECA) bargaining with the PSA Union, Tasman District Council, Nelson City Council and Marlborough District Council.

5.2 Tasman’s negotiated salary grade increases ranged from 5.0% to 6.3%, plus some employees will also receive performance increases on top of this. This MECA bargaining process was always anticipated to take much longer than previous Collection Employee Agreement (CEA) bargaining processes, however we are very aware of the impacts this is having on all our staff. The longer process has also meant that we are also only now applying any performance conversation (appraisal) increases that also form part of our annual market adjustment process.

Recruitment

5.3 Recruitment remains steady. We are currently at various stages of recruiting for approximately 15 vacancies which are a mix of existing and new positions. Since my last report, another 24 appointments have been made with many of these being internal promotions or movements which then result in another vacancy needing to be filled.

Retaining Staff

5.4 We remain very aware of the impact the current inflation pressures are having on our staff, and on our community, and the Executive Leadership Team is continuing to explore a range of options and initiatives to respond to our ability to attract and retain good people.

5.5 The current inflation rates have created a very different environment for many employers, at a sector level and both locally and nationally. As an employer we’re all now competing with many other employers for resources.

6 Health, Safety and Wellbeing Update

6.1 There have been 14 events reported by staff since my last report on 11 August 2022.

· One was a near miss event involving a car moving at a very low speed;

· there were three minor trip events;

· one event resulted in a minor finger cut;

· one event resulted in back strain from moving a desk with the wheel brake still on;

· one report of self-discomfort relating to office lighting being too bright;

· and there were seven events of aggressive / abusive behaviour towards our staff.

6.2 It is alarming to see that events of aggressive and abusive behaviour towards our staff are continuing and happening more frequently.

· Four of these events involved members of the community towards our Customer Services staff. Police were contacted for one incident.

· One occurred on a roadside that was closed due to the weather event.

6.3 Council delivered conflict awareness training in mid-September.

7 Kaihautū

7.1 As the Council will know, this triennium commenced with all elected members making their oaths at Te Āwhina Marae. This was well received by the hau kāinga from the marae. They have noted that it was influential in building the relationship between the marae whānau and the Council. Iwi leaders have praised Tasman District Council for taking a leading step and have encouraged the other Te Tau ihu councils to follow our lead.

7.2 On 9 November 2022, elected members and senior staff from the three Te Tau ihu councils came together for an induction session with the eight iwi of Te Tau ihu, Wakatū and Ngāti Rārua Ātiawa Iwi Trust. Elected members had the opportunity to meet key iwi leaders, hear about the history and aspirations of ngā iwi, explore Te Ao Māori (the Māori world view) and Te Mana o Te Wai. This was a notable occasion for Te Tau ihu, being the first time ngā iwi and the councils have come together for such a kaupapa.

7.3 During the week of 28 November 2022, around 120 staff and elected members attended Te Tiriti o Waitangi training. This was delivered by Kaupare Legal and Consultancy, who shared their expertise and knowledge. The training was very informative, taking attendees through Te Ao Māori in the context of New Zealand history. The training highlighted that there is still much more room for growth and development in this area. Key next steps are likely to be application of Treaty principles in contemporary legislation, as well as more about our local Te Tau ihu history and dynamics. Staff are working on an organisational cultural development plan which will put in place more structure and purpose for this type of training. The plan will identify development pathways that are appropriate to individual’s and team’s roles.

7.4 Staff have recently been trialling a new way of engaging with the Iwi Trusts on project and policy work. The new method involves routine engagement hui with individual or combined iwi Trust representatives. Early feedback from iwi Trust staff is that this is a better way to work together and goes some way to navigating capacity issues by creating focused sessions and agreed scope and timelines.

7.5 Staff are progressing well on the iwi engagement tool. The tool was modelled on Nelson City Council’s tool at the request of ngā iwi. Staff intend to launch the tool early next year.

8 Holiday Season

8.1 The statutory clocks for LIMs, Building Consents, Resource Consents and LGOIMA requests stop on 20 December 2022 and restart on 11 January 2023.

8.2 We have all had a challenging year and have completed a power of work. Staff are tired and challenged to deliver whilst backfilling staff who are sick, staff having extended leave to visit family and the significant amount of work that we have delivered. I am encouraging as many staff as possible to take a good break over the Christmas/New Year period. Please see below for our holiday hours.

· Richmond Service Centre & AA will close early on Friday 9 December at 3.45pm

· Richmond Service Centre & AA will open later on Thursday 15 December at 9.15am.

· Christmas Closure – ALL Council AA & Customer Services Centres will close at 3.00pm on 23 December 2022 and reopen at 8.00am on Wednesday 4 January 2023.

8.2 I wish elected members, staff and our communities a safe and restful break.

9 Attachments

Nil

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.13 Mayor's Update

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Tim King, Mayor
Report Number:	RCN22-12-33

1 Summary

1.1 Welcome to our final Council meeting for 2022 and my first report of the new triennium. A special welcome to our five new Councillors Glen Daikee, Jo Ellis, Mike Kininmonth, Brent Maru and Dan Shallcrass. A warm welcome also to new Golden Bay Community Board members, Henry Dixon and Robert Hewison and Motueka Community Board members, Nick Hughes, Claire Hutt and Terina Graham.

Tasman District Council Elected Members 2022-2025

1.2 While it has only been three months since this triennium began, the new Council has hit the ground running. Our new Councillors have been provided with the opportunity to get up to speed on a variety of issues and topics in a very short time. The induction programme has included all Councillors which ensures we are all on the same page.

1.3 We had a very successful tour to Murchison via Tapawera on 8 December 2022. This was an opportunity for the new Councillors to get a “feel” for all the many activities the Council is involved in. The tour included the Tapawera wastewater and water treatment plants, an opportunity to see at first hand the results of recent changes in land use at Tapawera (change from dairy and beef to hops), roading projects (both state highway and local roads), a site visit of the Council’s owned Riverside Holiday Park, a tour of the Murchison Sport, Recreation and Cultural Centre and a site visit of the Murchison resource recovery centre.

1.4 A similar tour of Motueka and through to Golden Bay will happen in the new year.

1.5 This year has been extremely busy with considerable time required from both staff and the Council to understand the many government reforms, be involved in the development of the new Tasman Environment Plan and carrying on with our business as usual.

1.6 Next year promises to be even busier. We will begin development of the Long Term Plan which in the current environment is likely to present some significant challenges. The three waters legislation will be enacted and the National Transition Unit within the Department of Internal Affairs has been charged with ensuring the transition period up to 1 July 2024 is efficient and effective and that there is minimal disruption to our communities and consumers.

1.7 The first draft of the report into the Review into the Future of Local Government is now out for public consultation with submissions closing on 28 February 2023. As part of this review, the Review Panel met to discuss their report and recommendations with the Council on
9 December 2022 and those discussions will help us to formulate our own submission on what is proposed. We will share that submission with our community.

1.8 Finally, thanks to our elected members and Council staff for their hard mahi during 2022.
And best wishes for 2023.

Thanks to Gabby and Alexis who ensured that my office door
was suitably adorned for the festive season

2 Draft Resolution

That the Tasman District Council receives the Mayor's Update report, RCN22-12-33.

3 Mayoral Events

3.1 Attended the Local Government New Zealand’s Mayoral induction and training in Wellington on 17 October 2022 with former Nelson City Council Mayor, Rachel Reese.

3.2 The Institute of Directors Emerging Director Award event was held on 20 October 2022.
It was pleasing to see our Acting Chief Operating Officer, Jenna Neame receive the award.

3.3 Attended the Waimea College prize giving 2 November 2022 and the Golden Bay High School prize giving on 5 December 2022.

3.4 Local Government New Zealand held an induction programme for Top of the South elected members in Nelson on 7 November 2022. I was asked to present on my experience as an elected member.

3.5 On 8 November 2022 it was a pleasure to present the New Zealand Planning Institute’s “Distinguished Service Award” to our former Group Manager – Environmental Assurance, Dennis Bush-King.

With Dennis Bush-King and New Zealand Planning Institute, Branch Chairman, Sam Nevin

3.6 A hui with the Te Tau ihu iwi and the three top of the south councils, Marlborough District, Nelson City and Tasman District was held on 9 November 2022. This was an opportunity to build on our relationships with our iwi partners.

3.7 Met with Federated Farmers from Golden Bay on 10 November to discuss the Council’s biodiversity strategy and the water conservation order for Te Waikoropupū Springs.

3.8 An event in honour of former Nelson City Council Mayor, Rachel Reese was held at Nelson City Council on 11 November 2022. This was an opportunity for local leaders to thank Rachel for her service to the Nelson-Tasman region.

3.9 On 14 and 15 November 2022, Tasman District Council hosted the Local Government New Zealand Zone 5-6 conference at the Headingly Centre in Richmond. This group comprises Mayors and Chairs, Chief Executives and Councillors from across Te Waipounamu.
A highlight for the group was a site visit to the Waimea Community Dam.

Local government leaders at the Waimea Community Dam – 14 November 2022

3.10 Attended several meetings to assess applications to the Mayoral Relief Fund as a result of the August rain event.

3.11 Two Local Government New Zealand meetings were held in Wellington on 17 and 18 November 2022 - Rural and Provincial and Regional Sector. These meetings provide a good opportunity for elected members to discuss the matters affecting local government now and in the near future.

3.12 Invited to judge the Trade Stalls at the Nelson A&P Show on 19 November 2022. Also spent time at the Council’s stand where we provided information on the new Tasman Environment Plan.

3.13 Met with Joanna Santa Barbara, the Chair of the Nelson-Tasman Climate Forum on 24 November 2022 to discuss the forum’s plans for the next three years.

3.14 Met with Nelson Mountain Bike trails personnel and Council staff on 24 November to discuss proposals for extending the trails in our District.

3.15 The Waimea Water Limited Annual General Meeting and Shareholders Meeting was held on 24 November 2022.

3.16 Mission Zero is a local charitable trust which supports projects that have a meaningful impact on climate change. It was good to see at first hand the work they are doing – see news article here.

3.17 Climate Change Minister, James Shaw spoke to the three Top of the South Councils about climate change and what it means for local government and the country on 28 November 2022.

3.18 Along with elected members and Council staff, a Treaty of Waitangi training day was held on 30 November 2022.

3.19 The Annual Shareholders Meeting for Nelson Airport Limited was held on 30 November 2022.

3.20 The Outstanding Community Service Awards ceremony was held on 1 December 2022.
It was great to present awards to Joan Reilly and Pam and Donald Gardiner from Golden Bay, Richmond’s Wendy Barrett, and Sharon Beuke from Motueka. Congratulations and thanks to you all for everything you do in our community.

3.21 The Motueka Starlight Christmas Parade was another huge success and the judges final decision to find the placegetters was difficult.

3.22 Two monthly catch up with Fiona Wilson and Meg Matthews from the Nelson Tasman Regional Development Agency on 7 December 2022.

4 Attachments

Nil

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.14 Waimea Water Ltd - Annual Report 2022

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike Drummond, Group Manager - Finance
Report Number:	RCN22-12-34

1. Summary

1.1 The Waimea Water Ltd (WWL) Annual Report for the period ended 30 June 2022 is attached (Attachment 1). Waimea Water Ltd representatives will attend the Council meeting to present an update on the project and to answer any questions on the Annual Report.

1.2 The attached copy of the Annual Report has been approved by the Company Board and was adopted by the Joint Venture Shareholders at the Company’s Annual General Meeting (AGM) on 24 November 2022.

1.3 The report has been provided to this meeting to coincide with the regular Waimea Water Ltd update on the project and to allow Councillors to consider the Company’s performance.

1.4 The Company’s Annual Report meets the requirements of both the Companies Act 1993 and the Local Government Act 2002. It was also received within the extended statutory timeframe arising from Covid-19.

1.5 The Company’s Annual Report was made available to the public once it was adopted by the shareholders at the Company’s Annual General Meeting.

1.6 There are no matters that staff need to bring to the attention of councillors.

2. Draft Resolution

That the Tasman District Council:

1. receives the Waimea Water Ltd Annual Report 2022m RCN22-12-34; and

2. notes the delivery of the Waimea Water Ltd Annual Report 2022 in accordance with the requirements of the Local Government Act 2002; and

3. notes the Waimea Water Limited Annual Report (or a link to the report) will be published on the Council’s website within seven (7) working days of this meeting.

3. Purpose of the Report

3.1 To note receipt of the Annual Report 2021 from Waimea Water Ltd (Attachment 1).

4. Background and Discussion

4.1 For your convenience, the report from the Waimea Water Ltd Board Chairman, David Wright which is included in the Annual Report is reproduced below. The full report is attached (Attachment 1).

4.2 The Operating and Financial overview for the year is set out on page 36 of the Annual Report. The performance of the Company against the Statement of Intent (SOI) is set out on page 42 of the Annual Report. There are no matters that staff need to bring to the attention of councillors.

4.3 The Annual Report should be read in conjunction with the Quarterly Report which provides a further update on project progress.

4.4 The attached copy of the Annual Report has been approved by the Waimea Water Ltd Board. It was presented to the shareholders at the Company’s Annual Meeting held on 24 November 2022.

4.5 The report has been provided to this meeting to coincide with the regular Waimea Water Ltd quarterly update on the project and to allow Councillors to consider the Company’s performance against the Statement of Intent. Councillors with questions on the Annual Report or the Quarterly Report should address them to the Company representatives during the presentation session.

4.6 The Annual Report has also been provided by the Company to Waimea Irrigators Limited as the other shareholder in the Company.

4.6.1.1 Extract of Report from Board Chair – David Wright

Welcome to the 2022 Annual Report for Waimea Water Ltd. It is now four years since we began this important but challenging project, and while there is another year before we expect to largely complete the dam, it is gratifying that we are now in the position of saying we are three quarters along our way. The scale of what we are achieving with the construction of the dam is significant and it is fair to say, like any big undertaking, the journey has not been as easy or as straightforward as originally planned. Last financial year we reported on the impact to the project of the encountered geology, global inflationary environment and COVID-19. This financial year, these have again been influential factors on the project, impacting both the cost and project programme. Disrupted supply chains and a high inflationary construction sector have been exacerbated by the international environment. This year we have again seen challenges with the geology, particularly upstream and downstream of the spillway which, thanks to the expert team involved, are being resolved. On their own, each problem would have been significant.

Unfortunately, when they are combined, they have pushed the cost of the project higher than forecast. We share the frustration of others involved in construction and infrastructure projects around the country who have been similarly impacted and unable to deliver on schedule.

At the same time, we are proud that we have kept our workforce safe, met the challenges and continued making progress toward completion. I thank our management team, our Contractor and our dam engineers Damwatch Engineering Ltd for their commitment and effort to achieve what has been achieved given the challenging 12-months.

I am grateful for the guidance provided by our board, who bring to the project strong governance, infrastructure, dam engineering, construction, finance and engagement skills. The board is ensuring that the strategy to construct a safe, reliable and efficient dam is achieved, holding our management team to account on executing the complex project and adapting to encountered conditions.

As outlined on page 43, the board oversees management of risk through committees that work with management to understand and mitigate issues and risks. I thank the board members and our management team for their considerable effort and time in making these committees work effectively. Through both the work of our audit and risk committee and auditor, I am confident that the company is meeting its fiscal, governance and fiduciary responsibilities.

I believe the project is already proving to be a good example of strategic vision and long-term commitment to our community by our shareholders. We are building an asset that will provide our region with water security, stability, certainty and prosperity for the next 100 years, much needed as we face the impacts of climate change.

Even in the short time since construction began, the threat posed by climate change has become more and more apparent. Overseas, blisteringly high summer temperatures, wildfires and dropping dam reservoir levels are rightly causing concern.

At home in New Zealand, we have seen record rains, high temperatures, damaging storms and droughts. The Waimea Community Dam will undoubtedly be a significantly positive factor in our region’s planning as we adapt to climate change. We are fortunate that we started this project when we did.

On behalf of my board, Waimea Water Ltd, our hardworking staff, Contractor and consultants, I thank you all for your continued support as we head towards the successful conclusion of this momentous undertaking.

Ngā mihi, David Wright

5. Strategy and Risks

5.1 This is a routine matter and there are no strategic matters or risks that the Council needs to consider in noting the receipt of the Waimea Water Ltd Annual Report.

6. Policy / Legal Requirements / Plan

.6.1 Under Section 67 of the Local Government Act 2002:

6.1.1 A Council Controlled Organisation must, within three months of the end of the financial year (30 September), deliver to shareholders and make available to the public a report on the operations during the year.

6.1.2 The report must include the information required by sections 68 and 69 of the LGA 2002 namely:

6.1.2.1 A comparison of the Company’s performance with the Statement of Intent and an explanation of any material variations.

6.1.2.2 State the dividend (if any) to be paid.

6.1.2.3 Audited Financial Statements for the year prepared using generally accepted accounting practice (GAAP).

6.1.2.4 An audit report on the financial statements and performance measures.

6.2 The Annual Reporting and Audit Time Frames Extensions Legislation Act 2021 extended by two months the statutory reporting timeframes in the Crown Entities Act 2004 and the Local Government Act 2002. The extensions apply to Crown entities and organisations listed in Schedules 4 and 4A of the Public Finance Act 1989 and local authorities and council-controlled organisations with 30 June balance dates.

6.3 Waimea Water Ltd has met the extended statutory timeframe (30 November 2022) for delivering their Annual Report to shareholders.

7. Consideration of Financial or Budgetary Implications

7.1 There are no financial or budgetary implications arising from this noting report.

8. Conclusion

8.1 The Company has met the Annual Report requirements in the Statement of Intent and delivered its report in accordance with the Local Government Act 2002, as amended by the Annual Reporting and Audit Time Frames Extensions Legislation Act 2021.

9. Next Steps / Timeline

9.1 The Company has made their Annual Report publicly available on their website.

9.2 The Waimea Water Limited Annual Report (or a link to the report) will be published on the Council’s website within seven (7) working days of this meeting.

10. Attachments

1.⇩

Waimea Water Ltd - Annual Report 2022

200

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.15 Waimea Water Ltd - Quarterly Report

Information Only - No Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Mike Drummond, Group Manager - Finance
Report Number:	RCN22-12-35

1 Summary

1.1 The Waimea Water Ltd Quarterly Report to shareholders was delivered to shareholders on 23 November 2022 and discussed at the shareholders’ (WWL Investor) quarterly briefing on 24 November 2022. The Quarterly Report is attached as (Attachment 1).

1.2 The report has been provided to this meeting to coincide with the regular Waimea Water Ltd quarterly update on the project and to allow Councillors to consider the Company’s performance and to allow Councillors to direct any questions to the Company after their presentation.

1.3 Waimea Water Ltd have advised shareholders that the Quarterly Report has been published on their website.

2 Draft Resolution

That the Tasman District Council

1. receives the Waimea Water Ltd - Quarterly Report, RCN22-12-35; and

2. notes the receipt of the Quarterly Report for the period ended 30 September 2022 from Waimea Water Ltd; and

3. notes the remaining identified residual risks through to project completion; and

4. notes the Waimea Water Limited Quarterly Report (or a link to the report) will be published on the Council’s website within 7 days of this meeting.

3 Purpose of Report

3.1 To formally receive the Waimea Water Ltd Quarterly Report for the period ended 30 September 2022.

4 Background and Discussion

4.1 The Company is required under the terms of its Statement of Intent to provide a quarterly report to shareholders. These reports are also made available to the public via both the Council and the Waimea Water Ltd websites.

4.2 The report provides information regarding:

· health and safety performance;

· an update on the dam project design;

· an update on the dam construction progress;

· an update on expected cost and risk;

· financial statements; and

· a commentary on the results for the period.

4.3 The Nelson/Tasman adverse weather event on 19/20 August 2022 delayed the project by six days due to the flooding and cleanup. This event saw sufficient water flow through the site to fill the Dam two and a half times in four days. There was no significant damage and flood controls worked well.

4.4 The Dam construction progress is set out on Section 4 (page 6) and costs and risks in Section 7 (page 14). The estimated cost to complete remains at $195m as was previously forecast in June 2022. The project is now 80% complete with 11 months and $40m of spend remaining.

4.5 The work programme is expected to be completed and ready for filling (SP-1) in February 2023. The Dam would fill and be commissioned (SP-2) by September 2023, in time for the summer of 2023/2024.

4.6 The remaining identified residual risks are:

4.6.1 Weather events delaying the river diversion and dam closure.

4.6.2 Further increases in mechanical and river diversion costs.

4.6.3 Contractor claims and dispute proceedings

5 Conclusion

5.1 The Company has provided the required quarterly update. The information in the update is in line with the presentation being made to Councillors today.

6 Next Step / Timeline

6.1 The Council will provide a link to the report on our website within seven days of this meeting.

7 Attachments

1.⇩

Waimea Water Ltd - Quarterly Report September 2022

241

Tasman District Council Tasman District Council Agenda – 15 December 2022

8.16 Waimea Water Limited Constitution - amendment re Ngāti Koata appointed Director

Decision Required

Report To:	Tasman District Council
Meeting Date:	15 December 2022
Report Author:	Marie Callander, Senior Legal Advisor
Report Number:	RCN22-12-36

1 Summary

1.1 The Constitution of Waimea Water Limited (WWL) (Attachment 1) needs to be amended to accurately record arrangements agreed under the Land and Water Use Partnering Deed with Te Pātaka a Ngāti Koata trustees acting in their capacity as trustees of that trust (Ngāti Koata) dated 8 December 2018 (Deed) between the Council and Ngāti Koata
(Attachment 2).

1.2 The Deed provides that, so long as Ngāti Koata owns the land known as the Water Storage Land (detailed item 4 below):

1.2.1 one of the directors of WWL is to be appointed by Ngāti Koata; and

1.2.2 the Council is to ensure that the Constitution of WWL provides for this right of appointment.

1.3 It has come to the attention of staff that the wording in the WWL Constitution (and for consistency, the WWL Shareholders Agreement) needs to be amended to correctly reflect this appointment right provided for under the Deed.

1.4 The WWL Constitution and Shareholder Agreement are currently being amended as part of documenting the arrangements for the Waimea Community Dam Cost Over-Run Funding that Council approved at its meeting on 22 September 2022. It is proposed that the amendments detailed in item 4 below be included with these amendments to the WWL Constitution and Shareholders Agreement.

2 Draft Resolution

That the Tasman District Council:

1. receives the Waimea Water Limited Constitution - amendment re Ngāti Koata appointed Director report, RCN22-12-36; and

2. approves clause 12.3 of the Waimea Water Limited Constitution being amended by a Shareholders Resolution to be signed by the Mayor on behalf of the Council to read as follows:

12.3 In addition, one (1) Director may be nominated by iwi located in the Tasman District by notice in writing to the Company and, subject to clause 12.4, the Shareholders will exercise their voting rights to appoint such Director to the Board. Any Director so appointed may be removed or replaced in the same way. For so long as Te Pātaka a Ngāti Koata trustees acting in their capacity as trustees of that trust (Ngati Koata) own:

Section 11 on Survey Office Plan 509793(8.1320 hectares); and

Section 12 on Survey Office Plan 509793 (13.500 hectares),

such Director is to be solely nominated by Ngāti Koata; and

3. approves clause 7.3 of the Waimea Water Limited Shareholders Agreement being amended to be consistent with the wording of clause 12.3 of the Constitution proposed in resolution 2 above and the Deed.

3 Purpose of the Report

3.1 To approve amendments to the WWL Constitution and Shareholders Agreement to be consistent with the Deed.

4 Background and Discussion

4.1 WWL is the Council Controlled Organisation (CCO) that operates the Waimea Water Augmentation Scheme which involves the construction of the Waimea Community Dam (Project).

4.2 As part of the arrangements to enable the Project to proceed, the Council entered into the Deed.

4.3 The Deed contemplates the Company operating the Project and provides that:

(i) Council will ensure that the constitution of the CCO operating the Project provides for one of the directors to be appointed by iwi located in the Tasman region, subject to the approval of the remaining shareholders of the CCO (acting reasonably); and

(ii) this director shall be solely nominated by Ngāti Koata for so long as Ngāti Koata owns:

· Section 11 on survey Office Plan 509793 (8.1320 hectares); and

· Section 12 on survey Office Plan 509793 (13.5000 hectares).

(Constitutional Requirement).

4.4 The WWL Constitution does not accurately record this Constitutional Requirement. Staff understand that this is an oversight resulting from the timing of the approval of the WWL constitution occurring prior to the finalising of the Deed.

4.5 The Board of WWL now proposes to amend:

4.5.1 the WWL Constitution to correctly include the Constitutional Requirement as set out in the letter (Attachment 3) which Crown Irrigation Investments Limited has approved; and

4.6 the WWL Shareholders Agreement be amended to be consistent with the amended Constitution and the Constitutional Requirement.

5 Options

5.1 The options are outlined in the following table.

Option

Advantage

Disadvantage

Amend the Constitution and the Shareholders Agreement

Council will be complying with its obligations under the Deed

None

Amend the Constitution and the Shareholders Agreement

None

Council would be deliberately in breach of its obligations under the Deed.

This would undermine its relationship with Ngāti Koata.

5.2 Option 1 is recommended.

6 Policy / Legal Requirements / Plan

.6.1 The Council is obliged to comply with its obligations under the Deed. Accordingly, if the Council does not approve the signing of a Shareholders Resolution to correct the WWL Constitution, the Council would be willfully acting in breach of contract.

7 Consideration of Financial or Budgetary Implications

7.1 No financial or budgetary considerations apply.

8 Significance and Engagement

8.1 This is considered a matter of low significance and therefore no consultation is required.

	Issue	Level of Significance	Explanation of Assessment
1.	Is there a high level of public interest, or is decision likely to be controversial?	Low	This resolution is to correct a document to reflect a legal obligation and existing practice. Ngāti Koata have appointed a director to the board of WWL.
2.	Are there impacts on the social, economic, environmental or cultural aspects of well-being of the community in the present or future?	No
3.	Is there a significant impact arising from duration of the effects from the decision?	No
4.	Does this activity contribute or detract from one of the goals in the Tasman Climate Action Plan 2019?	No
5.	Does the decision relate to a strategic asset? (refer Significance and Engagement Policy for list of strategic assets)	Yes, the Waimea Community Dam	This resolution is to correct a document to reflect a legal obligation and existing practice.
6.	Does the decision create a substantial change in the level of service provided by Council?	No
7.	Does the proposal, activity or decision substantially affect debt, rates or Council finances in any one year or more of the LTP?	No
8.	Does the decision involve the sale of a substantial proportion or controlling interest in a CCO or CCTO?	No
9.	Does the proposal or decision involve entry into a private sector partnership or contract to carry out the deliver on any Council group of activities?	No
10.	Does the proposal or decision involve Council exiting from or entering into a group of activities?	No
11.	Does the proposal require inclusion of Māori in the decision making process (consistent with s81 of the LGA)?	No	The Deed includes the decision/agreement which was previously made with Ngāti Koata.

9 Conclusion

9.1 The Council is obliged to approve the signing of a Shareholders Resolution to amend the Waimea Water Limited Constitution and the amending of the Shareholders Agreement to be consistent with the amended Waimea Water Limited Constitution.

10 Next Steps / Timeline

10.1 Once a Shareholders Resolution to amend the Constitution is signed by the Mayor it will be sent to WWL who will arrange for the amendment to the Constitution to be notified to the Registrar of Companies.

11 Attachments

1.⇩	Waimea Water Limited Constitution	254
2.⇩	Land and Water Use Partnering Deed	254
3.⇩	CIIL WWL Constitution Amendments Signed by CIIL	254

Mayor	Mayor T King
Deputy Mayor	Deputy Mayor S Bryant
Councillors	Councillor C Butler	Councillor M Kininmonth
	Councillor G Daikee	Councillor C Mackenzie
	Councillor B Dowler	Councillor K Maling
	Councillor J Ellis	Councillor B Maru
	Councillor M Greening	Councillor D Shallcrass
	Councillor C Hill	Councillor T Walker