Agenda of Environment and Community Committee

Environment and Community Committee

16 October 2018

Investigation into North-west Community Provision

File No.: CP2018/13532

Te take mō te pūrongo / Purpose of the report

1. To endorse the findings of the North-west community facility provision investigation.

Whakarāpopototanga matua / Executive summary

2. In 2017/2018 staff investigated community facility provision across North-west Auckland. The purpose was to identify any current gaps in services or facilities, or if there are likely to be gaps in the future and when they might appear.

3. The key findings of the investigation are:

· existing provision is sufficient to support current demand, but significant projected growth across the study area will place pressure on existing facilities and create demand for new facilities

· the profile of the North-west is changing, the baseline population is aging but new developments are bringing in younger people, families and increasing ethnic diversity which will impact future service needs

· there is disparity across the study area (economic and geographic), which restricts access and creates barriers to participation for some residents, particularly those in rural areas and in lower socio-economic areas such as parts of Westgate and Massey

· a pool and additional sport and recreation space are priorities for many residents

· there is some capacity within existing facilities and opportunities to better target services to increase participation in low user groups.

4. The recommended key moves to address the North-west investigation findings are:

a. action to address condition issues at Kumeu Library to maintain service levels

b. new aquatic provision from 2026 (ideally located near Westgate in Henderson-Massey)

c. additional recreation/leisure space in Rodney by 2026 and further recreation space in the longer term (2036) in the Henderson-Massey or Upper Harbour area to support four additional courts across the study area

d. potential additional multipurpose community space in Whenuapai from 2026 and Kumeu from 2036, subject to the impact of new provision in Westgate, the rate of growth across the area and the needs of emerging communities.

5. The next step is for staff to progress the key moves in line with the indicative business case process. The findings will be reported back to the Governing Body.

6. There is a risk that the actual rate of growth is different to projections, there are opportunities through the next phase of work to reassess and mitigate the impacts of this.

Ngā tūtohunga / Recommendation/s

That the Environment and Community Committee:

Kumeu Library

a) note the findings of the Auckland Council North-west community facility provision investigation, 2018 as follows:

i) there are serious condition issues at Kumeu Library, and without intervention the library will close, creating a gap in the network

ii) the next steps to progress is that staff report back to the Rodney Local Board on options and a recommended approach to address condition issues at Kumeu Library by November 2018.

Aquatic Provision

b) agree the findings of the North-west community facility provision investigation for aquatic provision as follows:

i) there is a future gap in aquatic provision in the North-west from 2026

ii) the key move to address the future aquatic gap in provision is a new aquatic facility (ideally located near Westgate in sub-catchment 3 of the study area)

iii) the next steps to progress the future aquatic gap in aquatic is to commence the strategic case for change and the development of investment options to implement the Indicative Business Case approved through the Long-term Plan- 2018-2028.

Recreation and Leisure

c) agree the findings of the North-west community facility provision investigation for recreation and leisure provision as follows:

i) there is a future gap in recreation and leisure provision in the North-west of at least four new indoor courts between 2026-2036

ii) the key moves to address the future gap in recreation and leisure is the provision of one-to-two courts in the Rodney area by 2026 and at least two additional courts in the Massey/Upper Harbour part of the North-west by 2036

iii) the next steps to progress the future gap in indoor court provision in the Rodney area and in the Massey/Upper Harbour area is to commence the strategic case for change and the development of investment options to implement the Indicative Business Case approved through the Long-term Plan 2018-2028.

Multipurpose Community Space

d) agree the findings of the North-west community facility provision investigation for provision of community space as follows:

i) there is no current gap in multipurpose community space provision in the North-west, but one will emerge in future based on forecast population growth

ii) the key moves to address this are additional multipurpose community space in Whenuapai from 2026 and Kumeu from 2036, subject to the impact of the new multipurpose facility in Westgate, the rate of growth across the area and the needs of emerging communities

iii) the next step is to monitor population growth in the area and develop an Indicative Business Case when the population reaches 10,000.

Horopaki / Context

Background to the investigation into community provision

7. The Community Facilities Network Plan, which guides council’s investment in the provision of community facilities, identified a potential gap in aquatic provision in Auckland’s North-west and a priority action to investigate this.

8. Due to the high level of growth anticipated for the North-west, the action was expanded to incorporate a wider scope of community facilities including libraries, arts, community spaces and leisure and recreation.

9. The purpose of the North-west investigation is to determine if there are gaps in current services or facility provision or if there are likely to be gaps in the future and when they might appear.

10. The North-west study area is approximately 150km² and represents three per cent of Auckland’s geographic area. It includes parts of the Rodney Local Board, Upper Harbour Local Board and Henderson-Massey Local Board areas. Its estimated population in 2017 is 34,230.

11. The North-west is growing at a faster rate than the Auckland average. Over the next thirty years (to 2046) the population is projected to expand to over 150,000 people. This growth is likely to place pressure on existing community services and facilities and create demand for new community services.

The investigation is the first phase in a three-phase process for making investment decisions

To support the cost-effective delivery of community facilities, Auckland Council uses a three- stage process for investigating and investing in new or substantially changed community services or facilities. This is based on the NZ Treasury Better Business Case model.

Methodology for investigation

12. To complete the investigation four streams of research were conducted:

· Community profile - provides an overview of the current state and likely future state of the study area using census data, growth data and other primary research

· Social research summary - summarises the findings from recent social research, surveys community engagement to show how residents perceive and feel about their environment and their concerns and aspirations for the North-west

· Community facility stocktake - identifies the network of existing facilities (council and non-council) in the study area and analyses available data on the current state including what is on offer, how it is being used, who is using it, and its condition

· Gap analysis – analyses evidence from the community profile, social research and community facilities stocktake. It assesses if current provision is sufficient to support demand and how it aligns with provision guidelines and desired national, regional and local outcomes. It determines if demand for services and facilities is likely to exceed supply and where and when this might occur.

Tātaritanga me ngā tohutohu / Analysis and advice

13. The high-level findings of the North-west community provision facility investigation are provided in a summary report as Attachment A.

Growth and community profile

14. Significant growth over the next 30 years will create demand for new services/ facilities:

· current population in the study area is 34,230 but this is projected to increase to 150,556 by 2046 (4 times the current population)

· the largest and fasted rate of growth is projected in sub-catchment 2 (the Whenuapai Hobsonville and Redhills area) which will have 50% of the population by 2046

· the increased number of people living and working in the area will place pressure on existing services and create demand for the provision of new services and facilities.

15. The resident profile of the North-west is changing and services/facilities will need to respond:

· the resident population base is older and aging - this trend will continue, however younger people with families are anticipated in areas of new development

· ethnic diversity is increasing - while the majority of residents identify as New Zealand European, pockets of the study area have large Māori, Pacific and Asian population groups. Greater ethnic diversity is likely to accompany growth across the area

· the changing demographics across the North-west creates opportunity to better target services particularly to increase participation in low user groups, and to locate new facilities in areas that create the greatest access to the most users.

16. Some disparity of opportunities due to socio-economic factors and geographical isolation:

· most of the study area is relatively affluent; however, the part that falls within the Massey and Westgate areas have the lowest individual and family income, and highest percentage of people receiving a benefit

· barriers to the use of community facilities are more likely to be felt by lower income households. Deprivation has been identified as a factor, which restricts participation and contributes to inactivity

· where it is rural and geographically isolated, there are a significant number of older people living alone. Over time this trend is likely to increase

· older people may be vulnerable to social and geographic isolation and require support through accessible community facilities.

17. Urbanisation of rural areas will result in changing needs for community services and facilities:

· the study area is changing from mostly rural to future urban. Kumeu, Whenuapai and Hobsonville are zoned as town centres and Westgate identified as a metropolitan centre. This intensification will place pressure on existing facilities and create new demand

· reduced lot sizes of residences in urban areas will increase demand for community facilities close to where people live

· strategically locating facilities where population densities are increasing will support access and participation and reduce overcrowding of existing facilities

· for those in rural areas, distance to a facility can create a barrier to participation. Locating facilities in rural areas where the population is under-served removes barriers to participation associated with travel.

Gap Analysis

18. Provision in the North-west was analysed against the provision guidelines in the Community Facilities Network Plan, a review of existing facilities, population projections, social research and community profiling to assess likely future demand and gaps over time.

19. The following table summarises the key take-outs from this analysis.

Service	Demand	Gap
Library, community, and arts	· The profile of study area aligns with general users of these facilities creating a strong user base · Utilisation of libraries is increasing, although Māori and Pacific population groups are under-represented · There are significant condition issues with Kumeu Library · There is capacity in existing facilities to support growth · The new Westgate multipurpose library/ community facility will provide additional provision.	· There are currently no gaps in provision · Should the Kumeu Library close there will be a gap in library services · As Kumeu and Whenuapai move from rural to urban centres additional spaces for community and arts services are likely to be required (threshold for new provision approximately 10,000-20,000 people).
Leisure and recreation	· Court provision across the study area is relativity low in relation to population · Residents are travelling to facilities in other catchments to access services · Social research identified community aspiration for additional provision · Demand for indoor courts is increasing at Massey Leisure Centre · Māori, Pacific and Asian population groups are underrepresented at Massey Leisure Centre · Changes in the profile of the study area suggest demand for indoor courts will continue to increase over time.	· There is no current population requirement for additional indoor recreation space · By 2026 population projections will exceed the National Strategy ratio for indoor courts (1:9000 people) · To support growth in the long-term six courts may be required in the North-west (four more than currently provided) · One or two in the Rodney area by 2026 · Two additional courts in the Henderson-Massey and/or Upper Harbour areas by 2036.
Aquatic	· Lack of aquatic provision was referenced in all social research · General demand for aquatic provision is likely to increase over time as more families move into the area · Residents are travelling to facilities in other catchments to access services · Catchments for neighbouring aquatic facilities (e.g Westwave) are reaching capacity · Deprivation levels and distance to facilities is linked to lower swimming participation in parts of Henderson-Massey.	· The majority of residents fall outside a catchment for aquatic facility, and there is limited access to non-council facilities · The study area does not quite reach population thresholds for an aquatic facility (minimum threshold is 35-50,000 people) · By 2026 the population base will be approaching this threshold · If the area is extended to include those parts of Henderson-Massey that sit outside a 5km catchment of Westwave pool (which includes pockets of higher deprivation) then the population threshold is reached sooner · Locating a facility near Westgate in the Henderson-Massey area would serve the majority of the population within a 5km catchment · This location would provide better access to residents in Henderson-Massey living in areas of higher deprivation who have lower levels of swimming participation.

Key moves to address the gaps

20. Based on the gap analysis, the investigation concludes that current provision is sufficient to support immediate demand, but additional facilities will be required to address growth and emerging gaps over the next ten years, including:

a) action to address condition issues and maintain service levels at Kumeu Library

b) new aquatic provision will be required in the North-west from 2026 (ideally located near Westgate in sub-catchment 3 of the study area)

c) additional recreation and leisure space to provide at least six courts across the study area (four more than is currently provided):

i. one-to-two courts in the Rodney area by 2026

ii. at least two additional courts in the Massey or Upper Harbour part of the study area by 2036.

d) potential additional multipurpose community space in Whenuapai from 2026 and Kumeu from 2036, subject to the impact of the new multipurpose facility in Westgate, the rate of growth across the area and the needs of emerging communities.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

21. Two workshop sessions were held with each local board in the study area.

22. In March 2018, staff presented the key findings of the community profile. In June 2018, staff presented the draft findings of the investigation.

23. Local board member feedback from the workshops focussed on:

· general support for location and timing of community space

· concern over proposed timing of gaps for leisure and recreation provision

· concern over the proposed location of future leisure and recreation provision

· concern over the proposed timing of aquatic provision and that the study area did not reflect the wider population served by aquatic facility in the North-west, particularly residents of Henderson-Massey Local Board who live in areas of high deprivation and have low levels of swimming participation.

24. Additional research and analysis were undertaken in response to feedback from local board members. As a result, the following changes were made to the findings:

· adjustment to where the local leisure and recreation space may be located

· adjustment to when additional courts space may be required

· consideration of a potential wider population base for aquatic provision, which adjusted the timing for a new facility.

25. In September 2018, updated findings were presented to business meetings in each local board in the study area. The following table outlines each of the local board’s response. The full local board resolutions are included in Attachment B.

Local Board	Response
Henderson-Massey	Endorsed all recommended key moves.
Upper Harbour	Endorsed the recommended key moves for aquatic provision and multipurpose community space. Rejected the recommended key moves for leisure and recreation on the basis that: · the study area for the investigation did not include parts of the Upper Harbour Local Board area to the east of the Greenhithe Bridge · they did not agree with interpretation of the data and information provided by the sport and recreation sector regarding shortfall of indoor court provision. The board noted their expectation that planning and investigation of the indicative business case for the Upper Harbour One Local Board Initiative would be done on a sub-regional basis rather than consideration of local provision which was the basis of the North-west investigation.
Rodney	Noted all recommended key moves. The board requested that staff progress the Rodney Local Board One Local Board Initiative for indoor court provision in Kumeu/ Huapai as soon as possible.

Tauākī whakaaweawe Māori / Māori impact statement

26. The social research used to inform this investigation gathered views from a variety of residents in the North-west, including Māori.

27. Pockets of the study area within the Henderson-Massey Local Board area have a high Māori population. Provision of facilities in these areas would benefit Māori as a significant proportion of the community.

Ngā ritenga ā-pūtea / Financial implications

28. The Long-term Plan 2018-2028 provided resource to develop three indicative business cases that align with the key moves outlined above, as follows:

· aquatic provision in the Henderson-Massey Local Board area

· recreation and leisure space in Rodney Local Board area

· indoor court provision in the upper Harbour Local Board area.

29. The indicative business cases will clarify need, provide options to address provision gaps, analyse costs and benefits and recommend the preferred option(s) that deliver best value for money.

Ngā raru tūpono / Risks

30. The demographic and growth projections may change. This information may require updating when new growth modelling is produced and new census information becomes available. Any implications arising from this can be considered and mitigated as part of the next phase of indicative business case work.

Ngā koringa ā-muri / Next steps

31. Staff will progress the key moves outlined in the table below.

Service Area	Recommended key move	Area	Commencement
Libraries	Options for investment to ensure continued library services in Kumeu for 15 years	Sub-catchment 1	2018/19
Leisure and recreation	Indicative business case for additional recreation and leisure services	Sub-catchment 1	2018/19
Community and arts	Development of indicative business case for multipurpose space in Kumeu	Sub-catchment 1	When population reaches at least 10,000
Community and arts	Development of indicative business case for multipurpose community and arts spaces in Whenuapai	Sub-catchment 2	When population reaches at least 10,000
Leisure and recreation	Indicative business case to identify land for additional recreation and leisure services	Sub-catchment 2/3	2018/19
Aquatic	Indicative business case for aquatic facility	Sub-catchment 3	2018/19

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	North-west Community Facility Provision Summary Report	17
b ⇩	Local Board Resolutions on the North-west Community Facility Provision Investigation Findings	67

Ngā kaihaina / Signatories

Author

Antonia Butler - Principal Policy Analyst

Authorisers

Kataraina Maki – General Manager - Community & Social Policy

Dean Kimpton - Chief Operating Officer

No.	Title	Page
a ⇩	Submission to the Ministry of Business, Innovation and Employment: Reform of the Residential Tenancies Act 1986.	75
b	Reform-of-Residential-Tenancies-Act-1986-discussion-document (Under Separate Cover)

Environment and Community Committee

16 October 2018

Auckland Council's draft submission on Healthy Homes Standards

File No.: CP2018/17905

Te take mō te pūrongo / Purpose of the report

1. To approve Auckland Council’s draft submission on proposed healthy homes standards for rental properties to be set under the Healthy Homes Guarantee Act 2017.

Whakarāpopototanga matua / Executive summary

2. The Ministry of Housing and Urban Development is consulting on proposed healthy homes standards for rental properties (see consultation document in Attachment A). The due date for submissions to the Ministry is 22 October 2018.

3. These standards will set minimum requirements for:

· provision of heating devices

· level of floor and ceiling insulation

· ventilation through provision of windows and extractor fans

· draught-stopping

· moisture entry and drainage.

4. In each of these areas, the ministry is consulting on various options.

5. Depending on the options chosen, the standards have potential to impact significantly on local communities in Auckland. If higher standards are chosen, the 38.5 per cent of Aucklanders who live in rental properties will have the right to warmer, drier and more energy efficient homes. If the standards are effectively implemented this will improve their levels of health and wellbeing.

6. The discussion document also seeks feedback on two other questions:

· when and how should the healthy homes standards be implemented?

· when and how should the healthy homes standards be enforced?

7. Council staff have prepared a draft submission on this proposal (see Attachment B). The draft council submission responds to the options outlined for each area (such as heating). In general, it supports the highest option proposed for the standards for heating, insulation, ventilation, draught-stopping, and moisture.

8. In some areas the draft submission recommends additional improvements to enhance the wellbeing of tenants and improve energy efficiency, contributing to Auckland’s low carbon targets.

9. The draft submission also recommends that landlords should be required to make these upgrades either at the start of a new tenancy or, if the tenancy is not renewed in the next four years, by a specific end date of 2022.

10. The submission notes the requirement for effective enforcement of the standards to achieve desired outcomes. It requests that Auckland Council be included in discussions with the Ministry relating to how the standards be implemented, including through enforcement, education and incentivisation programmes.

Ngā tūtohunga / Recommendations

That the Environment and Community Committee:

a) approves the draft council submission on the proposed Healthy Homes Standards to the New Zealand Government.

b) supports Auckland Council being heard to speak to this submission should the opportunity be presented.

c) nominate an elected representative to speak to the submission.

d) delegate authority to the Chair of Environment and Community Committee to approve any minor changes necessary to the submission before it is provided to the Ministry of Housing and Urban Development.

Horopaki / Context

Consultation on Healthy Homes Standards

11. In December 2017 the New Zealand Government passed the Healthy Homes Guarantee Act (no 2). This Act enables the government to create regulations that set minimum standards to create warmer, drier rental homes: the Healthy Homes Standards.

12. A discussion document on the proposed Healthy Homes Standards is now available for feedback (shown in Attachment A).

13. This consultation was originally released by the Ministry of Business Innovation and Employment. However, during the consultation period this Ministry became part of the new Ministry of Housing and Urban Development.

14. Feedback on the consultation is now due to the Ministry of Housing and Urban Development by Monday 22 October 2018.

15. The document seeks feedback on five healthy homes standards:

· Heating. This includes questions such as ‘what minimum achievable indoor temperature should heating devices be sized for in rental homes’ and ‘where should heating be located’?

· Insulation: What is an appropriate level of insulation for rental homes and how should the condition of insulation be assessed?

· Ventilation: What is the appropriate level of ventilation to ensure rental homes have adequate airflow in areas of high moisture?

· Moisture ingress and drainage: Are existing laws for rental homes sufficient to protect against moisture and inadequate drainage or could regulations better protect against moisture entering the home?

· Draught stopping: What appropriate measures should landlords take to stop draughts in a rental home?

16. The discussion document also seeks responses to two other questions:

· when and how should the healthy homes standards be implemented?

· when and how should the healthy homes standards be enforced?

Auckland Plan direction

17. Improving the health of Aucklanders and the quality of rental housing in the Auckland region is a priority for Auckland Council. This is clearly demonstrated through the Auckland Plan 2050, whose relevant key directions and focus areas include:

· ‘Improve health and wellbeing for all Aucklanders by reducing harm and disparities in opportunities.’

· ‘Aucklanders live in secure, healthy, and affordable homes, and have access to a range of inclusive public places.’

· ‘Advancing Māori wellbeing through improving the specific needs of vulnerable tamariki and whānau, particularly whānau who are experiencing substandard housing and homelessness.’

18. These statements provide a clear direction for Auckland Council’s input into central government initiatives to improve the quality of rental housing in Auckland.

Tātaritanga me ngā tohutohu / Analysis and advice

Overall position and rationale

19. The discussion document proposes options for feedback in relation to each of the five standards described above: heating, ventilation, insulation, moisture ingress and draught stopping.

20. Auckland Council’s draft submission (shown in Attachment B) recommends options in answer to each consultation question with a detailed analysis for each.

21. For each area, it is recommended that Auckland Council support the highest option proposed within the consultation document, as this will give the greatest opportunity to improve rental standards within Tāmaki Makaurau.

Rationale for recommending higher standards

17. Cold and damp rental homes affect a large proportion of New Zealanders, with 38.5 per cent of Aucklanders living in rental homes. Since 2001, there have been significant drops in home ownership for Aucklanders aged in their 30s, 40s and 50s.

18. Housing is one of the key modifiable determinants of health and inadequate, poor quality housing can have far reaching impacts on health outcomes. People who live in unhealthy homes are at increased risk of contracting serious and avoidable illnesses such as meningitis and rheumatic fever.

19. Ministry of Health data (2018) shows that there are approximately 10,800 children or 13,000 events with potential housing quality-related causes presented to NZ hospitals each year.

20. In Auckland, declining rental affordability and competition for good quality housing means the most vulnerable Aucklanders are more likely to be in sub-standard and poor quality housing. Low-income, older people, children, disabled people and Māori and Pasifika are more likely than other groups to live in, or feel the effects of, cold and damp rental homes.

21. This impact is particularly relevant to Auckland, where 14.2 per cent of the population identifies as Māori and 12 per cent as Pasifika. These groups are also more likely to be tenants living in rental properties. Māori and Pasifika have the lowest levels of home ownership in Auckland at 40 per cent and 32 per cent respectively.

22. If the highest standard recommendations proposed in the Healthy Homes consultation document are adopted, they have the potential to significantly improve the health and wellbeing of Aucklanders living in rental homes.

23. Increasing the energy efficiency of Auckland homes is also aligned with Auckland Council’s low carbon target of reducing our overall emissions by 40 per cent by 2040.

24. Meeting the standards will impose some costs on landlords - a high-end estimation of costs required for a landlord in Auckland to meet the standards (assuming they did not currently meet any of the requirements) would be approximately $11,000 to $12,000.

25. The Ministry’s consultation document includes a cost-benefit analysis for each option. In general, these are positive, with the cost of improvements being offset by the wider benefits.

Options analysis – standards for healthy homes

26. As noted above, the consultation document presents five standards for feedback, for the areas of heating, insulation, ventilation, draught-stopping and moisture ingress and drainage. It asks questions and presents different options in relation to each standard. For some areas, three or four questions have been asked.

27. For brevity, the draft submission’s response to each question has not been presented in this report. Examples are given below for two areas that are of high public interest – ventilation and insulation. The full list of questions and responses are shown in the draft submission in Attachment B.

Example one – Options for ventilation standards and council recommendation

28. For ventilation the consultation document asks if landlords should either be required to:

· Option One: provide openable windows in all habitable rooms (the status quo), or

· Option Two: provide extractor fans in rooms with a bath or shower and openable windows in living rooms, dining rooms and kitchens, or.

· Option Three: provide extractor fans in all rooms with a bath or shower or indoor cooktop, and openable windows in living rooms, dining rooms, and bedrooms.

29. The council’s submission recommends that the Ministry choose option three and require landlords to provide extractor fans in both rooms used for cooking and bathing.

30. This is because bathrooms and kitchens without mechanical extractor fans or heating are twice as likely to have moderate or worse patches of mould compared to those with extractors or heating. A study by Jones and White in 2017 found that kitchens without any mechanical ventilation are three times as likely to have visible mould compared to those with mechanical ventilation.

Example two – Options for insulation and council recommendation

31. For some standards, the council has also recommended additional improvements to achieve energy efficiency outcomes or improve the wellbeing of tenants.

32. For example, the consultation document asks what level of insulation should be required in rental properties and offers three options:

· Option one: the status quo (the lowest level of insulation – levels currently required under the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016)

· Option two: moderate improvements to insulation: rentals required to reach the level of insulation that was required for new houses under the Building Code 2001

· Option three: higher levels of insulation: rental properties required to reach the levels of insulation required for new houses under the Building Code 2008.

33. The draft council submission recommends option three: requiring rental properties to have the same level of insulation as houses built in New Zealand since 2008.

34. In addition, it recommends that landlords should be required to provide double lined curtains and retrofit secondary glazing. These changes will improve the warmth of rental properties and reduce the amount of power that tenants will need to use to heat their homes. Retrofit secondary glazing is recommended as it can provide an affordable and effective alternative to double glazing.

Date for complying with standards

35. The consultation document also requests feedback on how the date to comply with the higher standards should be set. Various options for this are proposed including:

· Option one: Compliance at the start of a new or renewed tenancy. From July 2021 landlords would have to comply with the standards at 90 days after the time they sign or renew or vary a tenancy. All landlords would have to comply by July 2024.

· Option two: A single compliance date of July 2022 for all landlords to meet all standards

· Option three: staggered compliance dates over five years up until July 2024. This could be staggered either:

o according to standard (i.e., compliance with some standards, like those for draught stopping would be required earlier than others like insulation)

o by area of New Zealand (i.e., landlords in colder areas of New Zealand, like the South Island, would be required to comply with the standards earlier).

36. The council’s draft submission partially supports both option one and option three. In line with option one, it recommends that compliance be required at the start of a new or renewed tenancy. This is because making changes to a property has the least impact on tenants when done as part of a change to tenancy occupation. It is also a good time to include these with other repairs and maintenance that may be required as part of a tenancy changeover.

37. This option is also preferred because requiring the landlord to meet all the standards at one time means that suppliers may only need to make one visit. This will reduce the impact on tenants and also costs for suppliers. Requiring the upgrades at the start of a new tenancy will also stagger demand on suppliers.

38. Finally, council recommends that the end date for landlords to meet the standards should be 2022, not July 2024. This will give landlords four years to meet the standards while ensuring tenants experience health benefits earlier.

39. In addition to supporting option one, the council’s draft submission also partially supports option three, by recommending that if the requirement to meet the standards is staggered, this should be done based on deprivation levels. The schedule for this could be developed through analysis of statistical data, with the most deprived suburbs being expected to reach the standards first.

Enforcement

40. The discussion document also seeks feedback on when and how the healthy homes standards should be enforced. However, this question is solely focused on what information the landlord should be required to keep and how this should be provided to the Ministry for Housing and Urban development.

41. The consultation document does not discuss who should enforce the standards and how proactive this enforcement should be. These matters are regulated by the Residential Tenancy Act 1986, which is also being reviewed and consulted on by the government. A draft submission on this review is also on the Environment and Community Committee 16 October 2018 agenda.

42. Council’s draft submission on the Healthy Homes Standards states that the standards will not be effective unless they are supported by proactive enforcement. It states that council supports strengthening the enforcement powers of central or local government to ensure that healthy homes standards are met by all landlords in a timely fashion.

43. Creating a proactive enforcement system moves the onus away from tenants to make complaints, which they are often reluctant to do since this can impact on their relationship with their landlord and their right to a secure tenure.

44. It is unclear who will bear the funding burden for any enforcement of these home standards. These are not currently a responsibility of local government.

Information storage

45. In response to the specific consultation question relating to storage of information, the draft submission recommends that landlords be required to store and provide a range of information on the tenancy agreement relating to the warmth and ventilation of the property. This could include the insulation type and quality, heating and ventilation appliances available and barriers in place for ground moisture.

46. It also recommends that consideration be given to creating an easy-to-access and understand method of capturing and communicating information about the quality of rental properties.

Warrant of Fitness

47. This information could be included in a Warrant of Fitness for each property. Council’s draft submission supports the development of such a warrant of fitness system as this would clearly communicate to prospective tenants if a property meets the proposed standards.

48. The use of a nationally administered standard would set a clear expectation of what is required to meet the standard. Council would suggest a pass/fail system. The use of a rating system would also serve to educate the public about which housing features impact on creating warm, dry homes.

Education and incentives

49. The draft submission notes that the legislation is just one tool and must be supported by education and incentivisation. Many landlords want to improve the quality of their asset but lack access to good quality, independent information about how to do so.

50. Councils can play a key role in incentivisation and education programmes. Auckland Council runs a range of programmes to incentivise behaviour change in relation to energy efficiency and housing.

51. The draft submission states that Auckland Council would appreciate the opportunity to work with the Ministry of Housing and Urban Development to develop best practice guidelines and case studies for councils on this topic.

52. Finally, it asks that Auckland Council be involved in future discussions relating to development, implementation and enforcement of the proposed standards.

Impact on council programmes

53. The introduction of the standards will impact on several council programmes. Some of the likely impacts include:

· The Retrofit your Home programme will likely see a significant increase in applications and requests for loans to fund home improvements by landlords.

· Various local boards fund ‘Healthy Rentals’ projects, where an advisor visits a home and provides advice and education to tenants. This is likely to be in higher demand as tenants become more aware of standards required. It may require increased resources or a more strategic approach to properties in most need.

· The council’s Eco Design Advice service, a free, one-on-one advisory service on energy efficiency and healthy homes to home owners, will be in much greater demand. Council currently has two staff who can provide this service and is undertaking a review of the programme to assess how it can be scaled to reach more homes in a more efficient manner. Council is also upskilling local community organisations such as Habitat for Humanity and Ecomatters to deliver these services.

54. Overall, the impact on most of these programmes from the standards is likely to be positive – creating an increased demand for council services. However, this may also create funding pressures if demand exceeds the council’s ability to respond to requests.

Council in our role as landlord

55. The standards will also have some minor impacts on the council in our role as a landlord. Most of council’s housing stock is managed by Panuku. For these properties the implications are not expected to be significant as they already adhere to many of the proposed standards and insulate to the highest standard. Heat pumps are also provided in Panuku houses in most cases, particularly if there has been a tenant request for one and the house is cold.

56. The standards may require some upgrades to council owned properties to meet requirements for ventilation, damp or draught proofing.

57. The standards may also slightly reduce the volume of housing that Panuku puts on the rental market. This is because some of the houses that Panuku receives, which are purchased for future infrastructure projects, are often in a poor state on hand-over and require a significant outlay to be fit for renting out.

58. The creation of additional standards through this consultation will add to this initial outlay. If the feasibility (financial pay back on initial outlay from rents collected over the duration of the hold period) does not stack up, some properties may be demolished earlier than planned.

59. These impacts are expected to be fairly minor and will not create significant additional costs for the council.

Recommended decision

60. In summary, staff consider that the Healthy Homes Standards have the ability to significantly improve the health and wellbeing of Aucklanders. Setting higher standards for rental properties also has potential to improve energy efficiency and reduce carbon emissions.

61. To achieve these outcomes, the draft submission recommends higher standards for rental properties across all of the five areas consulted on.

62. The draft submission is also well aligned to the overall direction of the Auckland Plan and current healthy homes programmes that the council is funding.

63. For these reasons it is recommended that the committee approve the draft submission shown in Attachment B on the Healthy Homes Standards consultation document.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

64. Some local boards have demonstrated support for healthy homes standards through their local board plans and also their investment in healthy homes initiatives.

65. Puketāpapa, Whau and Waitematā Local Boards identify initiatives in their Local Board Plans for 2017-2020 to provide healthy housing for residents of their board area.

66. In this financial year, eight local boards (Albert-Eden, Henderson-Massey, Māngere-Ōtāhuhu, Maungakiekie-Tāmaki, Puketāpapa, Waitematā, Waitākere Ranges and Whau) are funding Healthy Rentals, homewise or low carbon living projects. These support Aucklanders to achieve warmer homes and energy efficiency outcomes. Other local boards have funded similar projects in the past, such as Manurewa and Papakura.

67. Local boards have also been given an opportunity to provide feedback on these standards. They were sent a memo on 1 October 2018 outlining the content of the consultation paper and explaining the process for them to make their own submission on the proposal.

68. Any local board submissions received by 15 October 2018 will be tabled at the Environment and Community Committee meeting on 16 October 2018 for the committee’s consideration. Any local board submissions received by 19 October 2018 will be attached to Auckland Council’s response to the ministry.

Tauākī whakaaweawe Māori / Māori impact statement

69. Māori have significantly lower levels of home ownership than other Auckland residents. Overall, only 40 per cent of Maori living in Auckland own their homes (compared to 61.5 per cent of all Aucklanders). Rates of home ownership for Māori are as low as 35 per cent in southern Auckland.

70. The government’s consultation document also states that Māori are more likely to ‘live in, or feel the effects of, cold and damp rental homes.’

71. As such, the introduction of higher healthy home standards is likely to have more positive impacts for Māori than other Aucklanders.

72. The proposed standards align to manaakitanga (nurturing relationships, looking after people, taonga and taiao and fostering mutual respect).

73. The draft submission is also aligned with the Auckland Plan’s direction to advance ‘Māori wellbeing through improving the specific needs of vulnerable tamariki and whānau, particularly whānau who are experiencing substandard housing.’

Ngā ritenga ā-pūtea / Financial implications

74. The direct financial costs of the healthy homes standards to Auckland Council are expected to be minimal. As noted above, the change in standards is not expected to have a significant impact on Auckland Council in our role as a landlord.

75. It is possible that the introduction of higher standards will increase demand for some council programmes, such as the Retrofit Your Home financial assistance scheme and the Eco Design Advice service. This may create funding pressures if demand exceeds the council’s ability to respond to requests.

76. If the council was required to become involved in enforcement of the standards in future, this could also have significant financial and resourcing implications. However, at this stage the consultation does not suggest the council will have any enforcement role. Any further discussions on potential enforcement by Auckland Council would need to include provision for funding.

Ngā raru tūpono / Risks

77. It is not considered that making a submission on the consultation will expose Auckland Council to any significant risks at this stage.

78. As noted above, implementation of the standards could have some resourcing implications for council, depending how effectively these are introduced and our role in the process. The council has requested to remain actively involved in discussions around how the standards are implemented and enforced to mitigate these risks.

Ngā koringa ā-muri / Next steps

79. If the draft submission is approved, this will be provided to the Ministry by 22 October 2018. Any formal local board submissions will also be attached.

80. Auckland Council has requested to speak to its submission and remain actively engaged in the Ministry of Housing and Urban Development’s consultation process.

Ngā tāpirihanga / Attachments

No.	Title	Page
a	Discussion document for Healthy Homes Standards (Under Separate Cover)
b ⇩	Draft Auckland Council submission on Healthy Homes Standards	95

Ngā kaihaina / Signatories

Authors

Sophie Heighway, Sustainability Initiatives Manager

Gael Ogilvie, General Manager Environmental Services

Mara Bebich – Stakeholder Manager, Infrastructure & Environmental Services

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Dean Kimpton - Chief Operating Officer

Environment and Community Committee

16 October 2018

Auckland Council's draft submission on the New Zealand Emissions Trading Scheme

File No.: CP2018/19200

Te take mō te pūrongo / Purpose of the report

1. To endorse Auckland Council’s submission to the Ministry for the Environment’s “Proposed Improvements to the New Zealand Emissions Trading Scheme” document.

Whakarāpopototanga matua / Executive summary

2. All Aucklanders are affected by climate change, especially our most vulnerable. The benefits of action are promising and inaction raises serious risks to infrastructure, the economy and people’s health.

3. New Zealand’s commitments to the Paris Agreement require a substantial reduction in emissions. Government’s forthcoming Zero Carbon Bill aims to set the policy architecture for the transition to a zero carbon society and economy for New Zealand. Auckland formally supported the intent and proposed mechanisms of the Zero Carbon Bill (ENV/2018/93).

4. A market-based approach to price emissions, by placing a cap on overall emissions and trading ‘carbon credits’, can provide an economic incentive to reduce emissions. NZ can make intended and committed emissions reductions in line with the Paris Agreement’s frame for an international carbon market and within the bounds of the forthcoming Zero Carbon Bill.

5. The New Zealand Emissions Trading Scheme (NZ ETS) was established in 2008, aiming to meet (previous) international climate change targets by putting a price on emissions. The NZ ETS has a varied history and has had varied effectiveness at pricing emissions and incentivising reductions. There has been a range of NZ ETS reviews, most recently in 2015/16, to which Auckland Council made submissions.

6. Government’s current proposal aims to make the current scheme ‘fit-for-purpose’ by providing more predictability for the market and more flexibility to Government to collectively and ultimately deliver on New Zealand-wide emissions targets. Note that a decision on inclusion of agriculture is not part of this consultation and will be made next year.

7. The consultation document, Improvements to the New Zealand Emissions Trading Scheme Submission, raises 37 questions, of which nine are most relevant to Auckland Council. A draft submission has been prepared (Attachment A). Main points include:

· Support for modelling the abatement potential and cost of domestic emissions reductions.

· Recommendation for a portion of proceeds to be earmarked for local government climate adaptation and mitigation programmes.

· Suggestion that participants to free New Zealand Unit (NZU) allocation regularly justify their free yearly allocation and demonstrate carbon reduction actions and that the process be transparent and peer reviewed.

· Support for public reporting and review of emissions data and supporting information.

· Recommendation to provide adequate support to small-medium enterprises with limited resources to help comply with the scheme.

· Support for an ambitious transition to a low carbon future, including curtailing use of coal as quickly as possible.

8. Consultation on the NZ ETS closed on 21 September 2018. Due to compressed time frames, an officer submission was lodged with the request that any additions or changes from full committee endorsement be allowed afterward.

9. The Ministry for the Environment will provide advice to Cabinet to consider policy and draft legislative amendments by mid-2019. It is expected that amendments will progress to Parliament in late-2019, followed by public consultation.

Ngā tūtohunga / Recommendation/s

That the Environment and Community Committee:

a) endorse Auckland Council’s submission to the “Proposed Improvements to the NZ Emissions Trading Scheme” document in Attachment A of the agenda report.

b) delegate authority to the Chair of the Environment and Community Committee to approve any minor changes necessary to the submission before it is provided to the Ministry for the Environment.

Horopaki / Context

10. Climate change is a serious issue for all Aucklanders, with particular impacts on our most vulnerable people and communities. Taking action on climate change poses a range of benefits and puts us on a path toward a cleaner, fairer and more prosperous Auckland. Inaction raises serious risks to infrastructure, the economy and people’s health.

11. Auckland is taking action to plan for and respond to climate change. For example, we are making significant investments in public transport, green infrastructure and waste reduction. However, emissions continue to rise and the costs, risks and impacts of climate change are rising as well.

12. The Environment and Community Committee agreed to a full review of Low Carbon Auckland in February 2018. This included development of a climate change action plan that integrates climate adaptation alongside addressing rising emissions (Resolution number ENV/2018/11). Development of this plan is being facilitated by Auckland Council, working with public, private and voluntary sectors, and drawing in expert advice as appropriate.

13. New Zealand’s commitments to the Paris Agreement require a substantial reduction in emissions and Government’s forthcoming Zero Carbon Bill aims to set the policy architecture for the transition to a zero carbon society and economy for New Zealand. The Zero Carbon Bill seeks to provide a transparent transition to a low-emissions, climate-resilient society by establishing the policy architecture for long-term certainty. The four main (proposed) components of the Bill include a 2050 emissions target, emission budgets, establishment of a Climate Change Commission and inclusion of climate adaptation.

14. Auckland formally supported the intent and proposed mechanisms of the Zero Carbon Bill (ENV/2018/93) and has committed to climate action and emissions reduction at a regional level. Auckland Council is currently collaborating with central government on how a regional approach to climate action aligns with the NZ-wide framework.

15. A market-based approach to price emissions by placing a cap on overall emissions and trading ‘carbon credits’ can provide an economic incentive to reduce emissions. The Paris Agreement is meant to set the frame for an international carbon market so countries like New Zealand can make intended and committed emissions reductions in line with that global agreement and within the bounds of the forthcoming Zero Carbon Bill.

16. The New Zealand Emissions Trading Scheme (NZ ETS) was established in 2008, aiming to meet (previous) international climate change targets by putting a price on emissions. The NZ ETS has a varied history and has had varied effectiveness at pricing emissions and incentivising reductions. A range of NZ ETS reviews have occurred, most recently in 2015/16, to which Auckland Council made submissions.

17. Government’s current proposal aims to make the current scheme ‘fit-for-purpose’ by providing more predictability for the market and more flexibility for the Government to collectively and ultimately deliver on New Zealand-wide emissions targets. The NZ ETS can be complemented by a wider set of flexible price and non-price policy instruments to achieve emissions reductions. Note that a decision on inclusion of agriculture is not part of this consultation and will be made next year.

18. Consultation on the NZ ETS closed on 21 September 2018. Due to compressed time frames, an officer submission was lodged with the request that any additions or changes from full committee endorsement be allowed after the deadline.

Tātaritanga me ngā tohutohu / Analysis and advice

19. Improvements to the New Zealand Emissions Trading Scheme Submission consultation document is available on the Ministry for the Environment website. Auckland Council’s submission focuses on nine of 37 main questions most relevant to Auckland. A brief options assessment of each point was undertaken and is summarised as follows.

Question/Area	Option	Benefits	Risks
Question 1: What issues should the decision maker consider when making unit supply decisions?	No or little modelling of cost and abatement; low importance placed on data accuracy	· Low cost for analysis · No time requirements	· Action in the wrong areas or with wrong emphasis leading to low/no impact · Credibility risk to sectors and Government
Stringent modelling of abatement potential/cost of domestic emissions reductions 20. Recommended	· Provides more accurate market signals · Helps to hone impact of actions · Better credibility to agencies and sector	· Cost and complexity · Potential for imprecision in modelling outputs due to assumptions in inputs
Question 6: Do you think that the Government should use the proceeds gained from the auctioning of NZ Units for specific purposes? If so, please explain what those purposes would be.	No specific purpose	· Simpler, centralised and/or less-contested NZ-wide allocation of proceeds via central government	· Less impact from areas with greater emissions and reduction potential (like Auckland) · Potentially fewer localised (Auckland) benefits like better air quality, transport choice, protection from impacts
Portion of proceeds earmarked for local government programmes with consideration of vulnerable communities, biodiversity and clean technologies Recommended	· Greater and more efficient emissions reductions · Larger array of local benefits due to specific and geographically-prioritised funding stream	· Depending on funding allocation formula, potential concerns or perceptions around equity (e.g., rural vs. urban)
Questions 14 - 16: How do you think decisions on a phase-down of industrial allocation should be made? If a decision-making process for industrial allocation is implemented, which of the following factors should the decision-maker take into account? If a phase-down is initiated in future, which of the following rates for phasing-down industrial allocation should be considered?	Decision-making process. Participants to free allocation justify allocation, demonstrate reduction actions, compare to best practice. Transparent and peer reviewed free allocation process reviewed every 2-5 years Recommended	· More flexibility for tailored approach per industry · Greater driver for change given requirement for transparency and benchmarking to best practice · Ability for regular adjustments	· More complex decision-making · Potentially open to outside interference/ influence
Test or trigger to phase down or up-front decision Fewer factors considered Less transparency	· Easier decision-making	· No catering to unique circumstances of particular industries · May require mix of pricing signals and new technology · Potential of some industries to slow progress
Questions 19 - 20: Do you think there would be benefits from publishing individual emissions data reported by NZ ETS participants? Do you think cases of non-compliance should be published?	No publishing	· Fewer requirements; less resource-intensive	· No imperative to take action or make progress
Public reporting and review of emissions data and supporting information. Non-compliance information published. Recommended	· Higher level of accountability and scrutiny	· Additional resourcing required for reporting · Potential reputational impact for non-compliant business/organisations
Question 22: Do you agree with the proposal to introduce strict liability infringement offences for low-level non-compliance?	Yes	· Drives change consistently across sector	· Sizeable impacts on small businesses for minimal gain in emissions reduction
Yes – but not without or before adequate support for SMEs with limited resources to comply with the scheme Recommended	· Allows/assists compliance while mitigating impacts to smaller businesses	· Potential lack of clarity on what ‘small business’ means and where the funding/resourcing comes from
Question 30: Do you agree with the proposal that all coal sold or used from a stockpile be reported, regardless of whether the participant meets the threshold for coal importing or mining in the year the coal was sold or used?	No and/or not at threshold	· Cheaper for businesses to continue to use coal	· Less disincentive for coal use to be curtailed, leading to sustained/increased air quality, emissions and human health impacts · Reputational risks for industry and for NZ
Yes Recommended	· Greater incentive to remove coal from use with flow-on effects beyond emissions reduction like improved human health and air quality	· Cost or technological implications for large users

Question/Area

Option

Benefits

Risks

Question 1:
What issues should the decision maker consider when making unit supply decisions?

No or little modelling of cost and abatement; low importance placed on data accuracy

· Low cost for analysis

· No time requirements

· Action in the wrong areas or with wrong emphasis leading to low/no impact

· Credibility risk to sectors and Government

Stringent modelling of abatement potential/cost of domestic emissions reductions

20. Recommended

· Provides more accurate market signals

· Helps to hone impact of actions

· Better credibility to agencies and sector

· Cost and complexity

· Potential for imprecision in modelling outputs due to assumptions in inputs

Question 6:
Do you think that the Government should use the proceeds gained from the auctioning of NZ Units for specific purposes? If so, please explain what those purposes would be.

No specific purpose

· Simpler, centralised and/or less-contested NZ-wide allocation of proceeds via central government

· Less impact from areas with greater emissions and reduction potential (like Auckland)

· Potentially fewer localised (Auckland) benefits like better air quality, transport choice, protection from impacts

Portion of proceeds earmarked for local government programmes with consideration of vulnerable communities, biodiversity and clean technologies

Recommended

· Greater and more efficient emissions reductions

· Larger array of local benefits due to specific and geographically-prioritised funding stream

· Depending on funding allocation formula, potential concerns or perceptions around equity (e.g., rural vs. urban)

Questions 14 - 16:

How do you think

decisions on a

phase-down of

industrial allocation

should be made?

If a decision-making process for industrial allocation is implemented, which of the following factors should the decision-maker take into account?

If a phase-down is

initiated in future,

which of the

following rates for

phasing-down

industrial allocation

should be

considered?

Decision-making process.

Participants to free allocation justify allocation, demonstrate reduction actions, compare to best practice.

Transparent and peer reviewed

free allocation process reviewed every 2-5 years

Recommended

· More flexibility for tailored approach per industry

· Greater driver for change given requirement for transparency and benchmarking to best practice

· Ability for regular adjustments

· More complex decision-making

· Potentially open to outside interference/ influence

Test or trigger to phase down or up-front decision

Fewer factors considered

Less transparency

· Easier decision-making

· No catering to unique circumstances of particular industries

· May require mix of pricing signals and new technology

· Potential of some industries to slow progress

Questions 19 - 20:

Do you think there would be benefits from publishing individual emissions data reported by NZ ETS participants?

Do you think cases of non-compliance should be published?

No publishing

· Fewer requirements; less resource-intensive

· No imperative to take action or make progress

Public reporting and review of emissions data and supporting information.

Non-compliance information published.

Recommended

· Higher level of accountability and scrutiny

· Additional resourcing required for reporting

· Potential reputational impact for non-compliant business/organisations

Question 22:
Do you agree with the proposal to introduce strict liability infringement offences for low-level non-compliance?

Yes

· Drives change consistently across sector

· Sizeable impacts on small businesses for minimal gain in emissions reduction

Yes – but not without or before adequate support for SMEs with limited resources to comply with the scheme

Recommended

· Allows/assists compliance while mitigating impacts to smaller businesses

· Potential lack of clarity on what ‘small business’ means and where the funding/resourcing comes from

Question 30:
Do you agree with the proposal that all coal sold or used from a stockpile be reported, regardless of whether the participant meets the threshold for coal importing or mining in the year the coal was sold or used?

No and/or not at threshold

· Cheaper for businesses to continue to use coal

· Less disincentive for coal use to be curtailed, leading to sustained/increased air quality, emissions and human health impacts

· Reputational risks for industry and for NZ

Yes

Recommended

· Greater incentive to remove coal from use with flow-on effects beyond emissions reduction like improved human health and air quality

· Cost or technological implications for large users

20. A draft submission has been prepared (Attachment A) based on the above. Main points include:

· Support for modelling the abatement potential and cost of domestic emissions reductions, including close consideration of the accuracy of data, reporting and budget review.

· Recommendation for a portion of proceeds from the NZ ETS be earmarked for local government climate adaptation and mitigation programmes, including a) consideration of more vulnerable people and communities, b) environmental programmes to maintain and help biodiversity to adapt to climate stresses and c) best practice technical innovation for clean technologies that create an equitable, healthy and resilient low carbon economy.

· Suggestion that participants to free New Zealand Unit (NZU) allocation regularly justify their free yearly allocation, demonstrate carbon reduction projects and actions in line with a plan, and compare emissions intensity to international best practice. Further suggestion that the free allocation process be transparent, open to public scrutiny and be independently peer reviewed.

· Recommendation that the amount of free allocated NZUs be considered every two to five years rather than a gradual phase out.

· Support for public reporting and review of emissions data and supporting information, including emissions intensity of operations and associated reduction plans as well as Unique Emissions Factors for each industry. Also support for non-compliance information to be published.

· Recommendation to provide adequate support to small-medium enterprises with limited resources to help comply with the scheme.

· Support for an ambitious transition to a low carbon future, including curtailing use of coal as quickly as possible, in part by reporting all coal sales/use.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

21. The submission timeline presents a challenge in gathering a complete understanding of local board views. However, the Chief Sustainability Office has held individual workshops with nearly all local boards on the development of Auckland’s climate action plan. The price of carbon/emissions did surface in those conversations and have been captured here.

22. The Chief Sustainability Office highlighted key points from our local board engagement in connection with the Zero Carbon Bill and Auckland’s Climate Action Plan to the Environment and Community Committee at workshops on 4 July 2018 and 26 September 2018.

Tauākī whakaaweawe Māori / Māori impact statement

23. Climate change will affect areas over which Māori have kaitiakitanga; impacting ecosystems, shaping community vulnerability and resilience, and linking to economic outcomes. Increasing water scarcity and temperatures will impact Māori communities and businesses, including fisheries and forestry. Cultural sites may also be at risk from rising seas and coastal inundation.

24. Given the diverse climate sensitivities that exist for Māori across Auckland and New Zealand there is a clear need to know more about the implications (and risks) of a variable and changing climate on different iwi/hapū/whanau as well as the impacts of pricing emissions. This underpins points in our submission relating to local allocation of proceeds, consideration of our most vulnerable people and communities and assistance to small-medium enterprises. These are also part of our regional work in the development of Auckland’s Climate Action Plan and we aim to put Te Ao Māori at the centre of the plan.

Ngā ritenga ā-pūtea / Financial implications

25. There is likely to be some cost to council operations that generate emissions and these are currently being assessed within the context of the climate action plan. Our recent commitment to the Climate Leaders Coalition (alongside 60+ NZ businesses and organisations representing half of NZ’s GDP) reaffirms Council’s commitment to “get ahead of the curve” with innovations in emissions reductions that have lasting benefits.

26. There are no direct financial implications on Auckland Council as a result of making a submission on the NZ ETS. The estimated financial cost for the related development of Auckland’s Climate Action Plan (ACAP) is $140,000, covered in existing budgets. Part of ACAP will include a full review of financing opportunities and models, actions and implementation costs.

Ngā raru tūpono / Risks

27. The greatest long-term risk is maintaining the status quo. The lack of a credible price signal to the market to drive down emissions and address climate change (in a pragmatic and predictable way) creates the potential for unpredictability and shocks to the economy. There are also various models noting financial, legal, infrastructure, health and other impacts associated with climate change.

28. Lack of proper price signals and subsequent action creates opportunity costs for NZ, as other nations/cities outperform and compete for a global share of innovation dollars in the development of clean tech and climate solutions. Also at risk is New Zealand’s “clean and green” reputation, especially if we do not take credible action on climate change consistent with our international/domestic obligations. More specific risks are listed above as part of the options analysis.

Ngā koringa ā-muri / Next steps

29. Any additions or changes from full committee endorsement of the officer submission will be lodged with Ministry for the Environment.

30. Ministry for the Environment will be providing advice to Cabinet to consider policy and draft amendments to the Climate Change Response Act by mid-2019. It is expected that amendments will progress to Parliament in late-2019 followed by public consultation.

31. The development timeline of Auckland’s Climate Action Plan is intentionally woven into this larger national context. Following local board workshops in June, a committee workshop on 4 July 2018, and Kaitiaki Forum engagement on 5 July 2018, eight expert stakeholder workshops have been held to help prioritise actions alongside wider community engagement. A draft will be ready for consultation by the end of 2018 and implementation can begin around April 2019.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Draft submission to "Proposed Improvements to the New Zealand Emissions Trading Scheme"	119

Ngā kaihaina / Signatories

Author

John Mauro - Chief Sustainability Officer

Authorisers

Jacques Victor – General Manager Auckland Plan Strategy and Research

Jim Quinn - Chief of Strategy

Dean Kimpton - Chief Operating Officer

Environment and Community Committee

16 October 2018

Auckland Council's early position on the three waters review

File No.: CP2018/18100

Te take mō te pūrongo / Purpose of the report

1. To agree an early position on central government three waters reform, which informs a letter to the Minister of Local Government and the Minister for the Environment.

Whakarāpopototanga matua / Executive summary

2. In July 2018, the Minister of Local Government Hon Nanaia Mahuta announced the Government’s review of three waters, which is partly a response to the Inquiry into Havelock North Drinking Water.

3. Cabinet will decide on the scope of options in late October, with final decisions on regulation likely to follow in mid-2019 and service delivery in 2020.

4. We recommend that the mayor and the chair of the Environment and Community Committee send a letter to the Minister of Local Government Hon Nanaia Mahuta and the Minister for the Environment Hon David Parker setting out the council group’s early position on the three waters review. A draft letter is attached as Attachment B to this report.

Ngā tūtohunga / Recommendation/s

That the Environment and Community Committee:

a) note that decisions on the scope of options in the government’s review of three waters are likely to be made before the end of October, with final decisions to follow in 2019 and 2020

b) agree that the mayor and chair of the Environment and Community Committee send a letter to the Minister of Local Government setting out Auckland Council’s early positions on the three waters review

c) delegate to the mayor and chair of the Environment and Community Committee the authority to make minor changes to the letter to the Minister as contained in Attachment B of the agenda report.

Horopaki / Context

5. In July 2018, the Minister of Local Government Hon Nanaia Mahuta announced the government’s review of three waters at the Local Government New Zealand (LGNZ) conference. The review is partly a response to the Inquiry into Havelock North Drinking Water. However, the government has expanded the scope of the review to include wastewater and stormwater. The review has two focus areas, regulation and service delivery.

6. The Minister has stated that she will take a proposal to cabinet in late October this year on the scope of the review, which we understand will confirm the scope of options to be assessed. The decisions on regulation are likely to follow in mid-2019, with service delivery decisions following in 2020.

7. The Environment and Community Committee held two workshops on the government’s problem definition and possible options in August and September, as well as a presentation from Department of Internal Affairs (DIA) officials at a joint Governing Body – Watercare Services Limited board workshop on 25 September 2018.

8. The presentation by DIA is provided as Attachment A, which sets out how it has defined the issues facing the water sector, and high-level descriptions of likely options under consideration.

Tātaritanga me ngā tohutohu / Analysis and advice

9. We recommend that the mayor and the chair of the Environment and Community Committee send a letter to the Minister of Local Government and the Minister for the Environment Hon David Parker setting out the council’s early position on the three waters review. A draft letter is attached to this report (Attachment B). The letter provides a brief description of the Auckland context, and sets out some key messages. We have consulted with Watercare Services Limited (Watercare) and Auckland Transport staff in preparing the letter.

Possible changes to three water regulation

10. The government’s review of water regulation covers three distinct areas: drinking water standards, environmental regulation and economic regulation. The government will focus initially on drinking water and environmental regulation.

· Drinking water standards: The Inquiry into Havelock North Drinking Water made a number of recommendations, which include making compliance with drinking water standards mandatory, and requiring water supplies to be treated with a residual disinfectant. These are not likely to be as material to Auckland as they are to other parts of New Zealand.

· Environmental regulation: This is likely to include changes to the National Policy Statement on Freshwater Management and changes to compliance and monitoring of discharges. It may also mean changes to regional council functions, which would affect Auckland Council as a unitary authority.

· Economic regulation: In general terms, economic regulation aims to restrict monopoly power and protect the interests of consumers. The minister has noted that without it there is "no authoritative way of knowing whether there is value for money and providers are making sensible investments”. The term ‘economic regulation’ covers a range of different interventions, from compelling service providers to publicly disclose information, to setting prices.

Proposed key messages: water regulation

11. We recommend that the council adopts the following early positions, which have been incorporated into the draft letter.

· there is a case for change to drinking water regulations; having clear standards with effective monitoring and compliance would result in better outcomes from a national perspective (although this is not as material to Auckland as other areas)

· in-principle support for changes to environmental regulation, but advocating for a catchment-based approach which focuses on overall water quality outcomes rather than regulating a specific (point-source) discharge

· in-principle support for economic regulation to improve transparency and accountability for consumers, subject to more detail on what it would include.

Possible changes to service delivery

12. The service delivery options that have been presented by DIA officials are still at a very early stage. A high-level analysis of some of the impacts is set out in Table A (the status quo is not included). Currently, the scope of changes could cover three waters or may include water and wastewater only.

Table A: High-level analysis of central government options for three waters service delivery

Option	Costs	Benefits	Other
A water services provider for each region in New Zealand	No significant changes for Auckland, as it is already under a regional model
Between three and five cross-regional water services providers across the nation	· less local accountability for services · could result in cross subsidisation · would need to ensure it supports Auckland growth plans · could be less responsive to Auckland issues	· it may provide Auckland with more certainty of water supply in the long-term	· it would likely become a Crown entity, which would remove it from the council’s control and balance sheet. This would have a favourable impact on the debt to revenue ratio
NZTA model (where a national, hypothecated revenue source is used to provide some funding for local investment based on business cases)	· this option has been less worked through. In principle, this model is based on deriving a portion of funding for projects from a national revenue source (which means that some level of cross-subsidisation is implicit) · there is no obvious revenue source without difficulties attached to it. For example, one option is a tax on water takes, however it is likely to attract significant opposition from iwi

Proposed key messages: service delivery

13. We recommend that the council adopts the following early positions, which have informed the draft letter:

· strong support for the government’s bottom line of continued public ownership.

· While the quality of Auckland’s reticulated water supply is consistently ‘Aa’, higher standards for water are likely to mean higher costs for some communities.

· Any subsidies for communities should come from central government taxes, not from rates or user charges.

· The council group is happy to offer its expertise to other councils on a contractual basis to achieve efficiencies of scale, noting that Watercare is currently in early negotiations to provide three waters services to the Waikato district on a commercial basis. This is premised on Auckland not being negatively affected and no cross-subsidisation occurring.

· There should be careful consideration of whether stormwater is included in changes to service delivery, and offering to share the analysis around whether some stormwater functions should go to Watercare, once the council has made decisions on this.

Local Government New Zealand positions

14. DIA has formed a reference group with LGNZ to seek the views of the sector on the three waters review. In general, LGNZ is advocating for:

· A ‘co-regulatory’ approach. LGNZ’s view is that “this would bring together the information held by central government policy makers with the knowledge of local issues held by local government and the technical insights of suppliers and assessors.”

· A clearer problem definition for any changes to service delivery arrangements, and questioning the move towards aggregation. LGNZ argues that any changes must be based on evidence and should not be mandatory.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

15. Because the review is still at an early stage, we have not sought the views of local boards to date. Once the government’s proposed options are more clear, we will consult with local boards.

Tauākī whakaaweawe Māori / Māori impact statement

16. There are likely to be significant impacts for Māori of any changes, and therefore a high level of interest in the review. Because the government’s proposals are not clear yet, we have not prepared a detailed assessment of the impacts. However, we will begin engaging with mana whenua as the proposals become clearer. The draft letter emphasises the need for the government to engage with Māori.

17. The Independent Māori Statutory Board has been informed of the review.

Ngā ritenga ā-pūtea / Financial implications

18. There are no financial implications of this proposal.

Ngā raru tūpono / Risks

19. There are no risks associated with the recommendation to communicate the council’s early position to the minister. However, given the significance of the review and possible changes, there are likely to be risks associated with the proposals. We will assess these risks when further information is released by the government.

Ngā koringa ā-muri / Next steps

20. If the Committee agrees to the recommendations, we will finalise the letter in consultation with the mayor and chair and send it to the minister of local government.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Department of Internal Affairs presentation - September 2018	129
b ⇩	Draft letter to Minister - three waters review	153

Ngā kaihaina / Signatories

Author

Sarah Holdem - Principal Advisor

Authorisers

Alastair Cameron - Manager - CCO Governance & External Partnerships

Phil Wilson - Governance Director

Dean Kimpton - Chief Operating Officer

Environment and Community Committee

16 October 2018

Water quality targeted rate – Quarter one 2018 update

File No.: CP2018/10367

Te take mō te pūrongo / Purpose of the report

1. To note a progress update on the water quality targeted rate work programmes.

Whakarāpopototanga matua / Executive summary

2. In June 2018 Auckland Council introduced a new water quality improvement targeted rate. This will provide $452 million of additional investment over the next ten years into water quality outcomes.

3. These outcomes will be delivered through five key work programmes:

· western isthmus water quality improvement programme - $361 million

· contaminant reduction programme - $54.3 million

· urban and rural stream rehabilitation programme - $22.6 million

· septic tank and onsite wastewater programme - $9 million

· safe networks programme - $5 million.

4. Significant achievements for these work programmes from the first quarter include:

· Three major projects are currently on track to upgrade stormwater infrastructure in preparation for the America’s Cup. These are the St Mary’s Bay and Masefield Beach project, Daldy Street outfall and Picton Street separation.

· The St Mary’s Bay and Masefield Beach water quality improvement project is well underway, with resource consent hearings completed in September 2018. This project will significantly reduce the frequency of overflows from the combined network at these two beaches. The project is currently on track to start construction in early 2019 and be completed by late 2020.

· The construction consent for the Daldy Street outfall project will be lodged in early October 2018. This project will improve water quality in the Freeman’s Bay, Viaduct Harbour and Wynyard Wharf areas.

· Detailed design for the Picton Street stormwater network extension project has been completed. This $15 million project will reduce stormwater runoff to the combined sewer network and overflow volumes from the Wynyard Wharf outfall. An application for resource consent has been lodged and the project will go to tender in October 2018. It is currently on track to be completed by November 2020.

· Waterview - council is leading design work to separate the combined network in this area, in order to reduce overflows to the Waterview inlet. The planned construction start for the project is June 2020, with completion due by June 2022.

· Council is working with the Tāmaki Regeneration Company on a project to install stormwater treatment devices in Glen Innes, to counteract the impact of urban development and high traffic on Omaru and Ann’s Creek. A business case has been completed to commit $1.8 million from the targeted rate to this project.

· Council and Watercare have been undertaking significant network investigations in Northern Manukau, Takapuna and Red Beach to trace sources of faecal contamination in the stormwater network and identify solutions to these issues.

5. Maps showing safe network investigations and current or potential healthy waters capital works projects that will contribute to water quality outcomes are provided in Attachment A.

Ngā tūtohunga / Recommendation

That the Environment and Community Committee:

a) note the update on the water quality targeted rate work programmes.

Horopaki / Context

6. Auckland’s harbours, beaches and streams are being polluted by overflows from ageing sewerage and stormwater systems that cannot cope with heavy rainfall and from contaminants washed into natural waterways.

7. Aucklanders want to improve our infrastructure to address this problem but under the council’s previous budgets this would have taken 30 years to achieve.

8. Auckland Council’s introduction of the new water quality improvement targeted rate in June 2018 will provide an additional $452 million of funding to address these issues. Watercare will also invest a further $404 million from user charges, over the same period.

9. This extra funding will allow significantly more infrastructure upgrades and other water quality improvement projects to speed up delivery of cleaner harbours, beaches and streams within ten years.

10. The overarching goals of the water quality targeted rate investment are to:

· reduce wastewater overflows into the Waitematā Harbour

· reduce stormwater volumes into the Manukau Harbour

· reduce contaminants (such as litter, sediments, metals and oils) in stormwater across the region and in the South Kaipara Harbour

· improve water quality, from the perspectives of public health and ecology.

11. Over time, the targeted rate work programmes will also reduce Safeswim non-compliance public health warnings at our recreational beaches across urban Auckland. Reducing pollution of our beaches will improve their amenity value and mean Aucklanders can swim safely there.

Tātaritanga me ngā tohutohu / Analysis and advice

12. Implementation of the water quality improvement targeted rate will be achieved through five work programmes.

13. The budget, key objectives of each work programme and some highlights from the first three months of the financial year are briefly summarised in Table One below.

Table One. Update on activities for the water quality targeted rate work programmes

Work programme – objectives and highlights

Budget

Western Isthmus water quality improvement programme

Key objective: The primary benefit of this work will be to reduce waste water overflows into Waitematā Harbour and reduce stormwater volumes into Manukau Harbour. The project will reduce offensive beach litter, remove permanent closure of Meola Reef and Cox’s Beach and reduce other intermittent beach closures in this area.

This workstream is being delivered in partnership with Watercare who will provide $452 million of additional funding for infrastructure upgrades.

These upgrades will enable Watercare to reach their targets for the frequency and volume of wastewater spills per annum. They will also contribute to the Unitary Plan’s objectives of improving the health of receiving environments (i.e., harbours and other waterbodies).

Core deliverables for this programme include:

· construct a new 4.5 metre diameter tunnel from the Central Interceptor termination point at Western Springs through to Grey Lynn

· construct new wastewater infrastructure to enable growth

· construct new stormwater enhancements, including separation of existing combined networks and the construction of strategic consolidated outfalls.

Highlights:

· St Mary’s Bay and Masefield Beach improvement project. This project will significantly reduce the frequency of overflows from the combined network at these two beaches. The resource consent for construction for the project has been publicly notified and the hearings were completed in September 2018. A decision is expected in early November 2018. Procurement is also underway, with the project currently on track to start construction in early 2019 to be completed by late 2020.

· Daldy Street outfall. This project will relocate the existing outfall at Daldy Street to the end of Brigram Street. This will directly improve water quality in the Wynyard Basin and significantly reduce the closure events at the nearby designated Safeswim site in the Viaduct Harbour. Stage two of the project involves looking at stormwater treatment options, such as catch pit filters and raingardens throughout the Freemans Bay catchment. The project will be delivered by the America’s Cup 36 alliance. The construction consent for the project will be lodged in early October 2018.

· Picton Street stormwater network extension project. This $15 million project will construct new separate stormwater and wastewater networks, where a combined area currently operates. This will reduce stormwater runoff to the wastewater network and overflow volumes to the Wynyard Wharf outfall. A detailed design report is complete, and consultation has been undertaken with the local community and mana whenua. An application for resource consent has been lodged and the project has gone for tender, with the contract likely to be awarded before January 2019. Completion of the works is expected by November 2020.

· Waterview separation works: Healthy Waters is leading design work in Waterview to extend and upgrade the existing stormwater network and outfalls to Waterview Inlet, in order to separate the currently combined drainage network. Planned construction start for Waterview at this stage is June 2020, with completion by June 2022.

Ten years:

$361 m

2018/2019:

$18.3m

Contaminant reduction programme

Key objective: Reduce contaminants entering waterways across the region. This programme will reduce the amount of litter, sediment and road pollutants entering waterways.

In rural areas, the primary focus will be on sediment reduction by reducing streambank erosion. Approximately $15 million over ten years is allocated to address sediment in Kaipara, a predominantly rural area where water quality is affected by agriculture and forestry.

In urban areas, the focus of the programme will be on the capture of both gross pollutants (i.e. litter) and the multiple contaminants from heavily trafficked roads.

Highlights:

· Auckland Council has entered into an agreement with the Ministry for the Environment to jointly fund the Hōteo Sediment Reduction Project. This project includes representatives from mana whenua, community, private landowners and business. It is a five-year project to trial a range of management solutions to stabilise stream banks and reduce sediment loads into the Kaipara Harbour. This project is not funded through the rate but it is expected to provide insights for future targeted rate-funded projects in this area.

· A regional modelling tool is being developed to identify the highest areas of contamination across the region, and from this information target ‘hotspots’. The first draft list of high priority areas will be complete in November 2018. However, the tool will take several years to develop full capability, as it will need to analyse 20,500 km of waterways across 230 catchments.

· Healthy Waters and the Tāmaki Regeneration Company have identified a project to retrofit stormwater treatment devices in Glen Innes. It will be delivered as part of a partner funding arrangement, of which $1.8 million will come from the targeted rate.

Ten years:

$54 m

2018/2019:

$4m

Urban and rural stream rehabilitation projects

Key objective: Improve ecological health of streams and reduce flow of contaminants into harbours. In particular, this programme will reduce and manage streambank erosion across the region.

Highlights:

· A tool is being developed to analyse erosion risk and test where sedimentation is occurring and the ability of natural stream beds to cope with this. It will be used to predict the best places for urban growth for the least impact on water quality.

· Local stream rehabilitation projects are also being developed in collaboration with community organisations. Regional programmes that are currently being scoped for local delivery include:

o Wai Care: water quality monitoring, education and action programme for community groups.

o Whitebait Habitat Restoration: A partnership with the Whitebait Connection to locate and where feasible enhance inanga spawning habitat across the region.

o Million Metres: Partnership with Million Metres to crowdfund and coordinate community riparian tree planting at specific sites.

o Ngaroto Lakes Groundwater Model: Investigation to understand how water enters the lakes to enable communities to target their interventions.

o Small Building Sites Sediment Control: A behaviour change initiative aimed at reducing sediment from small building sites entering waterways.

o Fonterra Partnership: Partnership with Fonterra to support their 50 Catchments campaign.

o Regional Litter Programme: A regional approach to preventing litter from entering waterways.

· Local boards were consulted on potential water quality improvements projects to be delivered in their areas in September and October 2018, some of which are targeted rate funded. Their feedback on these will be taken into account before final projects to be delivered in each area are confirmed.

Ten years:

$22.6 m

2018/2019:

$2.1m

Septic tanks and onsite wastewater systems

Key objective: Develop a compliance programme to ensure wastewater systems are regularly inspected and maintained to reduce the amount of wastewater entering our waterways.

Highlights:

· A regionally consistent compliance programme for on-site wastewater systems across Auckland is being developed. This will improve the maintenance and operation of systems, by requiring property owners to regularly provide documentation that their systems have been inspected and maintained.

· A review of the septic tank pump-out service operating in the legacy Waitakere City Council area is underway, to consider whether it is still fit for purpose. To date the review has identified that the septic tank pumpout service does not appear to be achieving desired outcomes, as water quality has not improved in areas where it is operating and in some places is getting worse.

· The views of the impacted local boards (Henderson-Massey, Upper Harbour and Waitākere Ranges) are being sought in October 2018 on a proposal to consult in the Annual Plan 2019/2020 on ending the septic tank pumpout service and associated targeted rate.

Ten years:

$9 m

2018/2019:

$0.5m

Safe Networks

Key objective: Investigate and eliminate the sources of wastewater and other faecal contamination of discharges from stormwater networks and watercourses, which cause increased public health risk at the region’s beaches.

Examples of sources include illegal private wastewater connections to the stormwater system, unidentified wastewater overflows, broken infrastructure, and neglected drain maintenance at private properties.

Highlights:

· Council’s existing safe networks programme has been scaled up to reduce public health risks at beaches that are monitored by Safeswim. This will be achieved by investigating and reducing the sources of contaminated discharges entering stormwater drainage systems. Examples of sources can range from illegal wastewater pipes connected to the stormwater system, broken infrastructure and neglected drain maintenance at private properties. Over time the programme will reduce Safeswim non-compliance alerts and improve the amenity value of recreational beaches across the Auckland region.

· In addition to the extensive sampling programme underway for Safeswim, safe networks investigations have made significant progress during the 2018 winter around the areas of Glen Innes, Takapuna, Red Beach and along some of the northern Manukau beaches. The investigations have included a combination of water sampling, smoke testing, dye testing, closed circuit television (CCTV) and manual inspections to identify location-specific problems that contribute to the stormwater contamination. This information will enable the council and Watercare to develop solutions to make these beaches safer for swimming.

Ten years:

$5 m

2018/2019:

$0.3m

14. Two of the programmes described above will be delivered jointly by Auckland Council’s Healthy Waters team and Watercare. These are:

· the western isthmus water quality improvement programme, which will involve significant collaboration to reduce wastewater overflows and the safe networks work programme, and the

· safe networks programme which involves investigations and remediation of both the stormwater and wastewater networks to reduce bacterial contamination. This programme is run by Healthy Waters but will work collaboratively with Watercare’s inflow and infiltration programme, which has similar goals.

15. The other three programmes will be primarily delivered by Auckland Council’s Healthy Waters departments.

16. In summary, delivery of the five work programmes is well underway, with significant progress towards delivering a number of major infrastructure projects in the first quarter of 2018/2019.

17. Maps showing safe network investigations, current and proposed healthy waters capital works projects that will contribute to water quality outcomes are provided in Attachment A.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

18. Local boards provided formal feedback on the water quality targeted rate through the Long-term Plan 2018-2028 consultation process. Overall, this feedback showed strong support, with 16 local boards fully supporting introduction of the rate. While some of the remaining local boards did not support the funding mechanism, almost all expressed support for the desired water quality outcomes identified through the consultation.

19. A strong theme in local board feedback was the desire to be involved in development of the detailed work programmes for implementing the water quality targeted rate. In response to this feedback, staff have held workshops with all local boards from September to October 2018 on the water quality improvement targeted rate work programmes.

20. At these workshops, local boards have been presented with a list of potential water quality improvement projects to be delivered in their area through the targeted rate (see maps in Attachment A). Local boards have also provided informal feedback on priorities for their area. In general, key themes arising from local board feedback include:

· Concerns relating to the impact of growth on waterways, particularly sediment run-off from development.

· Support for local stream restoration projects in their board area.

· Concerns relating to wastewater overflows at popular recreational beaches and a desire to see these urgently resolved.

21. Staff will review this feedback and use it to shape the programme of local projects that will be delivered through the water quality targeted rate work programmes.

Tauākī whakaaweawe Māori / Māori impact statement

22. During consultation on the Long-term Plan 2018-2028, the council sought formal feedback from mana whenua on the water quality improvement targeted rate. 10 iwi made submissions which commented specifically on the rate. Nine of out ten iwi supported the rate and one iwi (Ngāti te Ahiwaru – Waiohua) expressed conditional support.

23. A clear theme in all submissions was the expectation that council should work in partnership with mana whenua as kaitiaki to implement the water quality targeted rate.

24. Building and maintaining respectful relationships and partnerships with Māori, including valuing mātauranga Māori (traditional Māori knowledge, wisdom and understanding) are key principles of the water quality improvement targeted rate work programmes.

25. As such, staff are carrying out engagement with mana whenua on each of the major projects to be delivered through the water quality targeted rate.

26. For example, iwi have been involved in extensive consultation on the St Mary’s Bay and Masefield Beach water quality improvement programme since its inception through a formal mana whenua Project Working Group. This approach has resulted in the design of the project being consistent with mana whenua aspirations and iwi support for the Resource Consent application.

27. The Mana Whenua Kaitiaki Governance Forum have also been contacted regarding the level of oversight they would like to have of implementation of the water quality targeted rate work programmes. They have indicated that at this stage they are comfortable with consultation taking place at an operational level on specific water quality projects.

Ngā ritenga ā-pūtea / Financial implications

28. The budget expenditure on the targeted rate has been phased as shown in Table Two across the five work programmes.

Table Two. Phased budget across water quality targeted rate work programmes

Work Programme ‘000s	Year One 2018/2019	Year Two 2019/2020	Year Two 2020/2021	Years 4 to 10 2021/2022 to 2027/2028	Total
Western isthmus programme	$18,288	$28,169	$32,714	$281,746	$360,918
Contaminant reduction	$4,000	$5,000	$5,500	$39,750	$54,250
Urban and rural streams	$2,063	$2,233	$1,805	$16,208	$22,309
Safe networks	$509	$519	$529	$4,012	$5,568
Septic tanks and onsite wastewater	$305	$311	$423	$8,320	$9,360
Total	$25,165	$36,232	$40,971	$350,036	$452,405

29. In the first three months of 2018/2019 approximately $1.9 million has been spent on delivery of water quality improvement targeted rate work programmes. This is slightly ahead of phased expenditure for this time period of $1.7 million.

Ngā raru tūpono / Risks

30. Some key risks that have been identified to successful delivery of the water quality targeted rate are identified below, along with proposed mitigations.

Table Two. Risks and proposed mitigations

Risks	Mitigation
Successful achievement of water quality targeted rate outcomes requires collaboration between Auckland Council, Watercare and other members of the council family.	Auckland Council is working closely with Watercare to progress delivery of water quality targeted rate projects, particularly the western isthmus and safe networks work programmes. Healthy Waters department is also collaborating with Auckland Transport, Panuku and other parts of the council.
Compressed timeline for delivery of major infrastructure projects before the America’s Cup creates a risk that projects may not be completed by late 2020. In particular, regulatory and consenting processes may cause delays to project delivery.	Council is prioritising delivery of these infrastructure projects. Design, consenting and procurement processes are being progressed with urgency. However, some regulatory processes may still cause delays.
Limited contractor capacity to deliver major capital works projects.	Early engagement with contractors and use of strategic procurement approach to encourage participation in tenders. Procurement of some works will be bundled together to reduce barriers to tendering and give certainty of supply.

Ngā koringa ā-muri / Next steps

31. As outlined above, some of the top priorities in 2018/2019 will be to:

· Progress delivery of key infrastructure upgrades project, such as the St Mary’s Bay and Masefield Beach, Picton Street separation and Daldy Street outfall projects, with an aim of completing these before the America’s Cup.

· Continue engagement with local boards and community groups to confirm programme of local water restoration projects that will be delivered across the region.

· Continue investigations through the safe networks programme to identify sources of pollution at popular recreational swimming beaches and resolve these.

32. The next update on the water quality targeted rate will be provided in February 2019.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Healthy Waters Investment Maps - Capital Works Programme and 18/19 Safe Networks Programme	165

Ngā kaihaina / Signatories

Author

Craig Mcllroy – General Manager Healthy Waters

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Dean Kimpton - Chief Operating Officer

Environment and Community Committee

16 October 2018

Natural environment targeted rate – Quarter one 2018 update

File No.: CP2018/13983

Te take mō te pūrongo / Purpose of the report

1. To receive a progress update on the natural environment targeted rate work programmes.

Whakarāpopototanga matua / Executive summary

2. In July 2018 Auckland Council introduced a new natural environment targeted rate. This will provide $311 million of additional investment into environmental outcomes over ten years.

3. An implementation plan for the targeted rate, comprising ten work programmes, has been developed. These programmes cover areas such as kauri dieback management, protecting our parks and expanding community conservation action.

4. Key outcomes and deliverables for each work programme are shown in Attachment A. Maps showing some recent activities and currently planned work for 2018/2019 are provided in Attachment B.

5. An update on progress to date over the first three months (July to September 2018 inclusive) is provided below. Significant achievements include:

· Expanded kauri dieback control work outside our two largest regional parks (Waitākere Ranges and Hunua) to our local community parks. In consultation with Kaipātiki Local Board, 13 tracks in local parks have been closed in this area. Part of Clevedon Scenic Reserve has also been closed to protect a significant stand of Kauri. These will be re-opened once they have been upgraded to a sufficient standard.

· Track upgrade design work in the Waitākere Ranges so that closed tracks can reach kauri safe standards and be opened. Staff are working closely with Te Kawerau ā Maki to agree track standards required prior to re-opening tracks.

· An expanded round of aerial application of 1080 in the Hunua ranges and adjoining privately owned and Department of Conservation land. This key project will protect endangered bird species, such as kōkako, during the spring breeding season.

· The launch of Te Korowai o Waiheke on 16 September 2018. This is an ambitious project with a vision of eradicating mammalian pests from Waiheke. The project is a community-led initiative with targeted rate investment from council of $2.6 million (over a seven year period) and significant additional funding from Predator Free 2050 and Foundation North.

· Council’s annual Pestival and inaugural Mayoral Conservation Awards were both held during Conservation week in September 2018. The Pestival was attended by over 500 community groups, reflecting a significant growth in school and community group participation in conservation activities.

· Increased investment of $200,000 per annum in the Regional Environment and Natural Heritage grant scheme to support more community conservation activity.

· Expansion of feral deer, goat and possum control in high priority areas across the region

· Surveying marine pests at Kaipara and Manukau harbours to fill current knowledge gaps and provide data on presence of marine pests.

6. The next update on the natural environment targeted rate will be provided in February 2019.

Ngā tūtohunga / Recommendation

That the Environment and Community Committee:

a) note the progress update provided on the natural environment targeted rate work programmes.

Horopaki / Context

7. In June 2018 the governing body adopted Auckland Council’s ten-year budget for the period 2018-2028. This included a natural environment targeted rate which will provide $311 million of additional investment towards environmental outcomes.

8. This investment is focused on programmes to achieve Pest Free Auckland outcomes by:

· controlling pest plants and animal species, at high priority sites on Council parks, in our harbours, Hauraki Gulf islands and high priority freshwater lakes;

· reducing the risk of plant pathogens spreading, particularly kauri dieback;

· supporting community groups, schools and households to take action.

9. This investment creates a significant opportunity for Auckland Council to address the ongoing and gradual decline in wellbeing of our native ecosystems and species.

10. An update on progress on implementing the natural environment targeted rate work programmes over the first three months of the financial year is provided below.

Tātaritanga me ngā tohutohu / Analysis and advice

11. Ten work programmes have been developed to implement projects funded through the natural environment targeted rate.

12. A fuller description of the key deliverables and objectives for each works programme is provided in Attachment A. Maps showing some recent activities and currently planned work for 2018/2019 are provided in Attachment B.

13. Significant achievements have been made for eight programmes during the first quarter of implementation. The budget and key outcomes for these work programmes plus highlights from the first three months of the financial year are briefly summarised in Table One below.

Table One. Key outcome and highlights of the natural environment targeted rate work programmes – Quarter one 2018/2019

Work programme

Budget (millions)

Plant pathogen management

Key outcome: To reduce the risk of spread of plant pathogens (including kauri dieback, myrtle leaf rust and Dutch elm disease). For kauri dieback this will be achieved through upgrading the track network and hygiene stations, as well as awareness raising and monitoring.

Highlights:

· Council is working alongside Te Kawerau ā Maki to provide continued access to parts of the Waitākere Ranges in a manner that respects the rāhui. Staff have completed track upgrade works that the winter months will allow, and are now engaging in medium to long term planning for a more strategic approach to our track network. Together with Te Kawerau ā Maki we have been working to develop best practice guidelines for track design across different forest types, to mitigate the risk of spreading kauri dieback.

· The scope of kauri dieback control work has also been expanded from our two largest regional parks (Waitākere Ranges and Hunua) to our local community parks.

· In consultation with Kaipātiki Local Board, 13 tracks in local parks have been closed in this area. These will be re-opened once they have been upgraded to a sufficient standard.

· Part of Clevedon Scenic Reserve, which homes a significant stand of healthy kauri, has also been closed as a precautionary measure.

· The next priority is to agree and implement an approach to kauri dieback across the local park network in the Waitākere, Waiheke and Upper Harbour local board areas.

· Contracts for temporary compliance staff have been extended with staff being enabled to undertake a broader range of tasks.

Ten years:

$102 m

2018/2019:

$7.5 m

Expanding community action

Key outcome: To provide a high level of support to over 600 community groups, iwi, households, landowners and schools to achieve biodiversity outcomes. Currently council provides a low level of ad hoc support to around 450 community groups.

This will be achieved by providing technical advice, funding, training, tools and networking/connections between community groups. A co-design approach is being taken to the programme to ensure council understands what the community most needs and to build ownership external to council.

Highlights:

· The annual Pestival was held on 15 September 2018 with 500 attendees representing the community conservation sector. The event included presentations from thought leaders, a showcase of innovations and networking for communities to share experiences, successes and challenges.

· The inaugural Mayoral Conservation Awards were held on 20 September 2018. The event recognised and valued the substantial commitment by communities and landowners around the region to restore the natural environment.

· Council is seeking expressions of interest for funding conservation activity coordinators embedded in the community at a variety of levels. This will allow conservation groups to increase their capacity and on the ground delivery in priority areas.

· A community nursery pilot project is underway to assess biosecurity preparedness and develop best practice standards for the industry.

· Over 2,500 traps and over 2,000 kg of bait, as well as other tools have been provided to support community conservation activities.

· The value of the Regional Environment and Natural Heritage grant scheme is being increased by $200,000 per annum so the fund can support more community conservation activity.

Ten years:

$37.5 m

2018/2019:

$2.2 m

Protecting our parks

Key outcome: To protect 66 per cent of highest ecological value areas on regional and local parkland. The current level protected is 30 per cent.

Highlights:

· The latest round of Project Hunua pest animal control through aerial application of baits containing 1080 was successfully completed in October 2018. Funding from the natural environment targeted rate enabled the scope of this existing programme to be expanded to include pest control on privately owned land adjoining to the park and Department of Conservation land. It will also fund land based pest control in buffer zone properties around the park that will occur up to December 2018.

· Pig control within the Waitākere Ranges Regional Park has been expanded to double the hunting programme.

· The Whakanewha Regional Park pest plant control programme has been expanded.

· Work is underway to expand council’s ecological restoration contracts to deliver more pest plant and animal control on significant ecological areas within local community parks.

Ten years:

$71.7 m

2018/2019:

$2 m

Islands biosecurity

Key outcome: To either control, or where possible, eradicate plant and animal pests from Hauraki Gulf Islands

Highlights:

· Te Korowai o Waiheke was launched by Mayor Goff and the Minister of Conservation. This is an ambitious project with a vision of eradicating stoats and rats from Waiheke within seven years. It will be a world first for these mammalian predators to be eliminated from such a large and urbanised island. The project is a community-led initiative and is jointly funded by Auckland Council, Predator Free 2050 and Foundation North.

· Scope of work to contain and eradicate Argentine and Darwin’s ants from Aotea Great Barrier and Kawau has been doubled.

· Work to control rhamnus on Rakino has been significantly increased to complete eradication of the weed.

Ten years:

$35.8 m

2018/2019:

$2.4 m

Region-wide biosecurity

Key outcome: To control priority pest plants and animals across the region.

Highlights:

· The proposed Regional Pest Management Plan is being revised based on public, local board and mana whenua feedback. The final plan will be presented to the committee for approval by March 2019. Once finalised this plan will help to further shape and enforce region-wide biosecurity activity funded under the targeted rate.

· Feral deer and goat control has been expanded from approximately 2,200 hunting hours per annum to approximately 7,000 hunting hours per annum. It will now include buffer zones around Hunua and Waitākere regional parks, Te Rau Puriri, Kawakawa Bay and Puhoi.

· The area targeted for ground based possum control has been significantly increased, with Okura, Awhitu and Tapora being targeted to increase the effectiveness of council and community programmes.

Ten years:

$31.5 m

2018/2019:

$1.8 m

Freshwater biosecurity

Key outcome: To protect the region’s two highest ecological value freshwater lakes (Tomarata and Rototoa Lakes) and reduce the incidence of human-mediated spread of freshwater pests to freshwater bodies.

Highlight: Staff are working with NIWA, University of Waikato and Cawthron Institute to provide monitoring and collection of baseline data.

Ten years:

$6 m

2018/2019:

$0.1 m

Marine ecology

Key outcome: To increase protection of marine habitats and seabird populations.

Highlight: Survey work is being carried out to obtain sub-tidal marine and coastal seabird habitat data to inform ecological restoration actions.

Ten years:

$3.9 m

2018/2019:

$0.3 m

Marine biosecurity

Key outcome: To protect threatened marine ecosystems and species from pests. This is also important to prevent the spread of marine pests during America’s Cup 36.

Highlights:

· Increased presence at the on-water boat show in October 2018, directly interacting with an audience of over 1,500 people to convey key marine biosecurity messages.

· Surveying marine pests at Kaipara and Manukau Harbours to fill current knowledge gaps and provide data on presence of marine pests.

Ten years:

$2.1 m

2018/2019:

$1.0 m

14. In summary, as outlined above in Table One, implementation of the natural environment targeted rate is well underway, with many positive achievements in the first quarter of 2018.

15. Two natural environment targeted rate work programmes (region-wide biodiversity and threatened species and ecosystems) are not included in the table as there has been no significant targeted rate expansions of these in this first quarter. Plans to expand work to incentivise private landowner investment in biodiversity protection are underway and will be reported in future update reports.

16. For the enabling tools work programme plans are underway to develop the spatial data management and community relationship management tools that will underpin delivery.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

17. Local boards provided formal feedback on the natural environment targeted rate through the Long-term Plan 2018-2028 consultation process. Overall, this feedback showed strong support from local boards for the natural environment targeted rate. A theme in local board feedback was the desire to be involved in development of the detailed work programme for implementing the targeted rate.

18. In response to this feedback staff are holding workshops with all local boards from September to November 2018 on the natural environment targeted rate work programme.

19. The objective of these workshops is to provide an overview of the proposed targeted rate funded work programmes and seek local board feedback on any local projects they are aware of that will meet criteria for regionally funded investment. These criteria include biodiversity value, defendable areas, gaps in wildlife corridors, significant community support and meeting multiple outcomes, such as improving both water quality and human wellbeing.

20. Once the local board feedback has been collated, investment decisions will be made based on alignment with the regional criteria outlined above.

Tauākī whakaaweawe Māori / Māori impact statement

21. Natural environment targeted rate activities are of key significance to mana whenua in their role as kaitiaki of Auckland’s environment. During consultation on the Long-term Plan 2018-2028, 11 iwi made submissions which commented specifically on the natural environment targeted rate. Ten out of 11 iwi supported the natural environment targeted rate.

22. There was a strong theme in iwi feedback that council should work in partnership with mana whenua on the delivery of this increased investment. Iwi also stated their expectation that mana whenua will be part of the delivery of these environmental outcomes.

23. In response to this staff, have contacted the Mana Whenua Kaitiaki Governance Forum to seek their guidance on what oversight they would like to have of the natural environment targeted rate work programmes

24. Some work programmes that are being expanded through the targeted rate have also already involved significant engagement with mana whenua. For example, considerable engagement has been undertaken on the proposed Regional Pest Management Plan. Key messages from mana whenua through this consultation have included:

· the importance of building the capacity of mana whenua to directly undertake pest management in each rohe

· acknowledgement that the council should control pests on its own land if asking public to do the same on private land

· the need to look holistically at rohe (regions)

· a desire to see pest control across the landscape including urban areas and all wai māori, rather than solely at highest value sites.

25. As outlined above, the council is also working closely with Te Kawerau ā Maki to provide access to the Waitākere Ranges while respecting the rāhui. As part of this we have been working to develop best practice guidelines for track design across different forest types, and to agree a schedule for track reopening, with input from the public.

26. Staff are also working closely with mana whenua on the development and implementation of a wide range of other biosecurity and biodiversity projects funded through the rate. These provide opportunities for mana whenua to exercise kaitiakitanga, through direct involvement in the protection of culturally significant sites and taonga species. This engagement will continue as new projects are confirmed for delivery through the targeted rate.

Ngā ritenga ā-pūtea / Financial implications

27. The budget expenditure on the targeted rate has been phased as shown in Table Three across the three major work programmes and other smaller work programmes.

Table Three. Phased budget across natural environment targeted rate workstreams

Work programmes	Year One 2018/2019	Year Two 2019/2020	Year Two 2020/2021	Years 4 to 10 2021/2022 to 2027/2028	Total (millions)
Plant pathogens (including kauri dieback)	$7,827	$24,222	$22,864	$47,174	$102,087
Expanding community action	$2,203	$3,856	$3,235	$28,227	$37,522
Protecting our parks	$2,096	$4,944	$9,266	$55,408	$71,714
Other targeted rate funded work programmes	$5,631	$15,028	$12,558	$66,307	$99,523
Total	$17,757	$48,050	$47,923	$197,116	$310,846

28. In the first three months of 2018/2019 approximately $588,000 has been spent on delivery of natural environment targeted rate work programmes. This is consistent with phased expenditure for this time period of $562,000.

29. Expenditure in Year One (2018/2019) was originally estimated in the Long-term Plan 2018-2028 to be approximately $24 million. However, contractor capacity to carry out some of the infrastructure projects included in the plant pathogen management workstream (such as track upgrades to prevent kauri dieback) is constrained.

30. The forecast expenditure on this workstream is therefore now estimated to be $6 million capex less, that is $18 million rather than $24 million in 2018/2019. The additional funds will be carried forward and spent in 2019/2020.

Ngā raru tūpono / Risks

31. Some key risks to successful delivery of the natural environment targeted rate funded work programme are identified below, along with proposed mitigations.

Table Three. Risks and proposed mitigations

Risks	Mitigation
Implementation of the natural environment targeted rate work programme is dependent on participation by a range of departments across council.	A governance structure has been established to enable efficient implementation of the targeted rate work programme across key departments of council.
Successful achievement of targeted rate outcomes will require coordination of work across the council family, with external partners such as Department of Conservation and input from a wide range of environmental community groups.	An Executive Advisory Group including key external partners and representatives from across the council family will be established. A co-design approach with external partners through the Expanding Community Action workstream will enable high levels of community participation.
Insufficient staff capacity to deliver a work programme that is 300 per cent larger than previous workload. Some advisor positions required are also highly specialised and may be difficult to recruit in current market.	An initial phase of recruitment is underway to provide increased capacity in the short-term. Recruitment strategy includes targeted use of specialist technical networks to address lack of market capacity in some areas.
Market capacity to provide capital works (such as track upgrades) required for implementation of the natural targeted rate work programme is limited.	Staff are developing best practice standards and procedures to build capability of contractors to deliver these works. Council will be providing training and auditing of contractors to ensure market capability.

Ngā koringa ā-muri / Next steps

32. Staff will continue to deliver those environmental programmes that can be immediately expanded, while also completing the detailed design for new work programmes including our pest control work on our mainland parks, plus Auckland’s islands and harbours.

33. Most importantly, the council will be enhancing our support for the growing (estimated now up to 1,700 groups versus 700 a year ago) number of community groups leading conservation work across the region.

34. The key next steps for delivery of individual work programmes are listed below:

· Continued track upgrades and installation of phytosanitary stations in Waitākere Ranges and Hunua Regional Parks.

· Finalising the Regional Pest Management Plan by March 2019.

· Significant increases in the ecological restoration contracts to achieve best practice pest management in high ecological value Auckland Council parks.

· Increase in Pest Free Warrant holders and increased inspections of high risk vessels and vehicles going to the Hauraki Gulf Islands.

· Focused pest control work on Aotea Great Barrier and Kawau Islands, such as working with the Department of Conservation on Aotea to achieve plague skink eradication.

35. The next update on progress in implementing the natural environment targeted rate work programme will be provided to Environment and Community Committee in February 2019.

Ngā tāpirihanga / Attachments

No.	Title	Page
a ⇩	Key objectives and deliverables for work programmes	175
b ⇩	Maps showing current plans for expanded animal and pest plant control in 2018/2019	177

Ngā kaihaina / Signatories

Authors

Mara Bebich – Stakeholder Manager, Infrastructure & Environmental Services

Gael Ogilvie - General Manager Environmental Services

Authorisers

Barry Potter - Director Infrastructure and Environmental Services

Dean Kimpton - Chief Operating Officer

Environment and Community Committee

16 October 2018

Komiti Taiao a Hapori Hoki /

ENVIRONMENT AND COMMUNITY COMMITTEE FORWARD WORK PROGRAMME 2018

This committee deals with strategy and policy decision-making that relates to the environmental, social, economic and cultural activities of Auckland as well as matters that are not the responsibility of another committee or the Governing Body

Committee Priorities:

1. Clearly demonstrate that Auckland is making progress with climate change adaptation and mitigation and taking action to reduce greenhouse gas emissions

2. Enable green growth with a focus on improved water quality, pest eradication and ecological restoration

3. Strengthen communities and enable Aucklanders to be active and connected

4. Make measurable progress towards the social and community aspects of housing all Aucklanders in secure, healthy homes they can afford

5. Grow skills and a local workforce to support economic growth in Auckland

The work of the committee will:

· Deliver on the outcomes in the Auckland Plan

· Be focused on initiatives that have a high impact

· Meet the Council’s statutory obligations, including funding allocation decisions

· Increase the public’s trust and confidence in the organisation.

Area of work

Reason for work

Decision or direction

Expected timeframes

Quarter (month if known)

Edited 4 September 2018

Jan-Mar 2018

20 Feb

13 March

Apr-Jun 2018

10 April

8 May

12 June

Jul-Sep 2018

10 July

14 Aug

11 Sept

Oct-Dec 2018

16 Oct

13 Nov

4 Dec

Strategic approach to Climate Change

To demonstrate that Auckland is making progress with climate change adaptation and mitigation and taking action to reduce emissions.

Strategic direction will be provided in the coming months.

Progress to date:

A summary of activities to prepare for climate change was given in the presentation on 8/8/17 meeting.

Report was considered on 20/2/18, resolution ENV/2018/11

Dec 18 – approval for consultation

Feb – Mar 19 - targeted public engagement

Apr 19 – feedback presented to elected members

Jun 19 – final strategy for adoption

(Dec)

Low carbon living

To deliver on Low Carbon Auckland Plan commitments by the design and implementation of awareness raising and incentives programmes to reduce household, community, business and schools carbon emissions by approximately 50% of current levels.

Strategic direction and endorse programmes as part of the Low Carbon Auckland Plan implementation.

Progress to date:

Report was considered at 20/2/18 meeting. Res ENV/201811 report back in Dec18 for a decision. Independent Advisory Group (IAG) was approved. Chairs Planning and Env & Community Cttees, an IMSB member and the Mayor’s office to decide on the membership of the IAG.

(Feb)

(Sept)

(Dec)

Low Carbon Auckland / Climate Change Mitigation

Four-yearly review of strategic action plan due in 2018; increased engagement with and commitments via C40 Cities membership; development of proactive policy agenda to central government emerging

Climate Plan Workshop:

Risks and vulnerabilities (June)

• Committee workshop on risks and vulnerabilities

• Communication strategy for broader public engagement

• Local Board workshops

• Mana whenua engagement (integrated throughout)

• Stakeholder workshops

Prioritisation criteria and identified actions (Jul/Aug)

• Cost benefit and total value analysis

• Agree prioritisation criteria

• Review all actions

• Draft plan

• Draft plan to committee (Dec 2018

• Consultation (linking to other plans, approach tbc)

• Updates to action plan

• Adoption of updated plan by council (Proposed December 2018)

• Final Adoption of Climate Plan (Mar 09)

Decision and endorsement of strategic direction

Progress to date:

Report was considered at 20/2/18 meeting. Res ENV/201811 report back in Dec18 for a decision. Independent Advisory Group was approved.

Workshops scheduled: 4/7/18 and 26/09/18. An update was on 12/06/18 meeting agenda.

(Feb)

(Dec)

Urban Forest Strategy

Strategic approach to delivering on the wider social, economic and environmental benefits of a growing urban forest in the context of rapid population growth and intensification.

Decision on strategic direction and endorsement of strategy.

Progress to date:

A workshop was held on 14/06/17. Report was considered on 12/09/17 ENV/2017/116 a full draft of the strategy was considered 20/02/18, res ENV/2018/12 with a report back on the results of the LIDAR and an implementation plan on costs and benefits in Aug 2018. An update was included in the 14 Aug agenda regarding several workstreams covered by the 18 high level implementation actions. A report on a full progress on implementing the strategy will be in August 2019.

(Aug19)

Allocation of the Waste Minimisation and Innovation Fund

Decision making over medium and large funds from the Waste Minimisation and Innovation fund in line with the fund’s adopted policy. Funds to contribute towards council’s aspirational goal of zero waste to landfill by 2040.

Decision on the annual allocation of the Waste Minimisation and Innovation Fund for the 2018-2019 financial year.

Progress to date:
Decision: Approval of allocation of September 2016 funding round Resolution ENV/2016/19 Item C5. Approval of grants in Dec 17

Auckland’s water strategy

The health of Auckland’s waters is a critical issue. Both freshwater and marine environments in Auckland are under pressure from historic under-investment, climate change and rapid growth. The draft Auckland Plan 2050 identifies the need to proactively adapt to a changing water future and develop long-term solutions.

Decision and strategic direction and priorities as part of the Auckland Plan.

Consider the development of an Auckland’s waters strategy to be adopted for consultation December 2018.

Progress to date:

A report was considered on 12/06/18 to approve the proposed scope, timeframe and budget for the development of the strategy. Res ENV/2018/78

Key milestones:

· June 2018 – develop a strategic summary of water related outcomes, identify integrated water outcomes,

· July-Oct 2018 – high level regional options are developed and assessed for the five draft themes – consultation with mana whenua

(June)

(Dec)

Regional Pest Management Plan review

Statutory obligations under the Biosecurity Act to control weeds and animal pests.

To ensure that the plan is consistent with the national policy direction and up to date.

Decision and strategic direction on weed and plants that will be subject to statutory controls.

Consider submissions received on the draft plan in mid 2018 and adopt the final plan by December 2018.

Progress to date:

Decision: Agreed to the inconsistencies in ACT at the 14 Feb 2017 ENV/2017/7 Item 12

Workshops held on 4/04/17, 3/05/17 and 27/09/17

Draft plan was approved for consultation in Nov 2017

Funding for implementation of the proposed RPMP through LTP.

A memo was distributed and is attached to the July agenda.

Key milestones:

· workshops with local boards on public feedback – September - October 2018

· engagement with mana whenua – September – October 2018

· workshop with Environment and Community Committee – October – November 2018

· formal feedback from local boards at business meetings – October – November 2018

· approval of final plan by Environment and Community Committee – March 2019

(Mar 19)

(Jul)

(Nov)

Inter-regional marine pest pathway management plan

To ensure the plan is consistent with Auckland Council’s:

- proposed Regional Pest Management Plan

- current and future marine biosecurity programmes

- response to SeaChange – Tai Timu Tai Pari Hauraki Gulf Marine Spatial Plan.

Decision on the development of the discussion document for an inter-regional marine pest pathway management plan for public consultation.

Progress to date:

A memo was distributed on 31/05/18 advising the committee on the Auckland Council’s participation in the development of a discussion document for an inter-regional marine pest pathway management plan, through the Top of the North Marine Biosecurity partnership.

(Nov/Dec)

Allocation of the Regional Natural Heritage Grant

Decision-making over regional environment fund as per the grants funding policy and fund guidelines

Decision on the annual allocation of the Waste Minimisation and Innovation Fund for the 2018-2019 financial year.

Progress to date

Allocation of the Regional Environmental Natural Heritage Grant for the 2017-2018 financial year was made on 6 Dec 2016_ENV/2016/11 Item 15

(Dec)

National Policy Statement for Freshwater Management

The National Policy Statement for Freshwater Management is being implemented, with periodic reporting to council committee on progress, and responding to ongoing central government refinement of the framework for achieving water outcomes.

In December 2018 further decisions will be sought under the national policy statement, including:

· approve final targets for swim-ability of major rivers in the Auckland region

· approve the updated Progressive Implementation Plan for the National Policy Statement for Freshwater Management

Progress to date:

Council submission was approved on Central Govt. Clean Water Consultation 2017 process: Minutes of 4 April ENV/2017/54 Item 12. Follow up is required for resolution b) – a workshop held on 14 June. A supplementary submission on the Clean Water Consultation package was made on 25 May 2017, Item 14 13/06/17

Decision ENV/2018/14 on engagement approach for consultation on the National Policy Statement for Freshwater Management in Feb 2018.

A report was considered on 26/6/18 : Res ENV/2018/78

· June 2018: develop strategy

· July to Oct 2018 – High level regional options are developed and assessed for the five draft themes in consultation with mana whenua, local boards and key stakeholders.

· Dec 2018- Draft Auckland's waters strategy presented to Environment and Community Committee for approval for release for public consultation

· Feb to Apr 2019 - Targeted public engagement on the draft Auckland's waters strategy in February to March 2019.

· Apr 2019 - Feedback analysed and presented to elected members in April 2019

· Jun 2019 - Final strategy presented to Environment and Community Committee for adoption

(Dec)

Food Policy Alliance

To consider food policy alliance

Decision on food policy alliance

(Mar)

TBC

Auckland Growing Greener

Statutory obligations under the Resource Management Act, Biosecurity Act and Local Government Act.

Consideration of items to give effect to the adopted commitment of Auckland Council to grow greener.

Strategic direction and oversight into council’s role to improve the natural environment, and to endorse proposed incentives.

This may include endorsing:

· a framework to ensure planning and growth decisions are underpinned by relevant environmental data

· proposed incentives for green growth

· recommendations arising from a current state statutory obligations review.

Hunua Aerial 1080 Operation

Provide information on outcomes of the Hunua 1080 aerial pest control operation

To note outcomes of the Hunua 1080 aerial pest control operation.

(Nov)

Parks, Sports and Recreation

Sport and Rec Strategic Partnership Grant to Aktive Auck Sports Rec

Approval of $552,000 strategic partnership grant to Aktive Auck & Sport to deliver on agreed priority initiatives.

To approve the $552,000 strategic partnership grant to Aktive Auckland Sport & Recreation for 2017/2018

Progress to date:

Report was considered 5/12/17 Resolution ENV/2017/186 – report back against KPI every six months.

A report was considered on 10 July 2018 to approve the strategic partnership grant of $552,000 per annum for a three-year term (2018-2021) Res ENV/2018/90

A funding agreement will be prepared for Aktive that ensures clear accountability and KPIs for each of the four geographical areas (North, West, Central and Southern) for the investment. (TBA)

Te Motu a Hiaroa (Puketutu Island)

Status update on the Te Motu a Hiaroa Governance Trust

To note further update on progress of the governance trust.

(Oct/Nov)

Sport and Recreation Strategic Action Plan

Status report on implementation plan

Direction on future options for sport and recreation.

(Nov)

Sports Investment Plan

Council’s strategic approach to outcomes, priorities and investment in sports

Decision on issues papers

Draft Plan approval

Finalise and adopt investment plan – approval of guidelines

Progress to date:

Evaluation of current sports facilities investments and proposed changes was adopted on 14 March, resolution ENV/2017/39 Item 13 with the final draft investment plan to be adopted prior to consultation.

An outcome measurement tool to support the Sports Facilities Investment Plan was considered and agreed at the 4 April 2017 meeting. Resolution ENV/2017/50 Item 9 The findings of the pilot will be reported in mid-2019 seeking a decision on the roll-out model.

(2019)

(Nov)

Golf Investment Plan

Council’s strategic approach to outcomes, priorities and investment in golf.

Decision on issues papers

Draft Plan approval

Finalise and adopt investment plan

Progress to date:

A workshop was held on 12 Sept and information is available on OurAuckland.

(Dec)

Indoor Courts

Strategic business case for indoor courts investment

Decision on investment approach

(Nov)

Western Springs Community School Partnership

Improve Community Access to school facilities

Decision on Business and Investment in indoor court facility at Western Springs

Progress to date:

The report was considered in May. Resolution ENV/2017/71 A business case will be prepared to outline the opportunity to fully invest in the indoor court development and can consider as part of the LTP 2018-2028.

(May19)

Growth Programme

Update on proposed growth funding allocation for 2018-2020

Decision on growth funding allocation

Regional Sport and Recreation grants programme 2018/2020

Review of previous grants allocation and recommendation for next round

Decision on sport and recreation grants programme objectives and approach

Progress to date:

Approved on 12 Sept the 2018/2019 grants programme to proceed in accordance with the Community Grants Policy suggested outcomes and assessment matrix. Applications open 30/10/17 close 8/12/17 ENV/2017/119 Workshop in April 2018. Report was considered on 8/5/18 and resolved ENV/2018/57 .

Approved applications for 2019/2020 funding round on 25/1/2019 and close on 8/3/19 for allocation from July 2019.

(May19)

(Sep)

Review of the Community Occupancy Guidelines 2012: TOR

The review will assess the efficacy of the guidelines in for the council to deliver the best possible outcomes for Auckland through community leases

Decision on the terms of reference for the review of the Community Occupancy Guidelines 2012

Progress to date:

The TOR was approved for the review to commence and will report back in ~~May~~ July 2018 subject to TLP.

An update memo was circulated in August 2017 in response to feedback from the July 2017 meeting. Joint workshop with local board chairs held 20/6/18.

(Nov)

Active Recreation Investment and Visitor Experience

Council’s strategic approach to outcome, priorities and investment for active walking, cycling, waterways and visitor experience on open space, parks and regional parks

Decision on scope and phasing

(Aug)

Takaro – Investing in Play discussion document

Development of a play investment plan

Decision on approval for public release

Progress to date:

Approved on 16/05/17 for public release the discussion document and will report to E&C for approval in late 2017

Takaro was approved for release on 20 Feb 2018

A report back by August 2018 for approval to initiate public consultation

(Feb)

(Oct)

Regional Parks Management Plan 2010 – variation to incorporate land at Piha into the Waitākere Ranges Regional Park

To approve variation to incorporate land purchased at Piha to be known as Taitomo Special Management Zone as part of the Waitākere Ranges Regional Park

Decision on approval to a variation

Progress to date:

Approved on 20/2/2018 Res ENV/2018/15 report

Manager, Regional Parks, will prepare an integrated vegetation management and fire–risk reduction plan in consultation with the local community and report back on the resourcing needs for its effective implementation.

(tbc)

ECONOMIC DEVELOPMENT

The Southern Initiative (TSI)

Provide an update on the TSI approach, priorities and achievements.

Strategic direction of the TSI approach to social and community innovation in south Auckland

Global Engagement Strategy

Provide an update and direction of Auckland Council’s global engagement strategy and priorities. It has been three years since a new strategic direction was introduced, progress on this strategy will presented.

Funded

Strategic direction of Auckland Council’s global engagement strategy and priorities

Progress to date:

Monthly global engagement updates are published on each agenda

Options to expand revenue streams for sport facilities investment

Provide strategic direction to expand revenue streams to fund future sports facilities investment in the draft Sports Facilities Investment Plan

strategic direction to expand revenue streams to fund future sports facilities investment in the draft Sports Facilities Investment Plan

Progress to date:

A report was considered in Aug. Res ENV/2017/121

SOCIAL, COMMUNITY, CULTURAL INFRASTRUCTURE

Community Facilities Network Plan

Update on progress and report back on strategic business case for central west.

Decision on indicative business case for central west

Progress to date:

A progress report was considered on 14 March. Resolution ENV/2017/36 Item 11 to report back on an indicative business case for investment in the central-west area.

(Mar)

(July)

Auckland Sport Sector: Facility Priorities Plan

Develop and endorse the Sports Facilities Investment Plan to enable Auckland Council to take a more co-ordinated approach to its sports facilities investment.

Decision on the Auckland Sport Sector : Facility Priorities Plan.

Decision on sector’s investment priorities and investigate potential funding options.

Progress to date:

The plan was endorsed on 12 Sept ENV/2017/118. Staff to report back on priorities and potential funding options.

(Sept)

Homelessness

Implementing Regional Policy and Strategy resolution to progress work around Council’s strategic position on addressing homelessness

(note this work will be informed by discussions at the Community Development and Safety Committee)

Decision on scope

Decision on role and direction addressing homelessness

Progress to date:

Approved the scope policy 14 Feb Item 17

Auckland council’s position and role was considered at the August meeting report item 12. Staff to report back with an implementation plan. Resolution ENV/2017/118 of preferred position and role

(Feb)

(Aug)

TBC

Facilities Partnerships Policy

Identify the range of current council approaches to facility partnerships, issues, opportunities and agree next steps

Decision on facility partnership approach

Decision to adopt Facility Partnership Framework in December 2017

Progress to date:

Update was given at 14 February meeting on Phase 1. Approval was given on the proposed timelines for Phase 2 : Minutes 14 February Item 14 preferred option

A report seeking approval to engage on a draft facility partnerships policy on 12/06/18. Resolution ENV/2018/74

(Feb)

(Dec)

Citizens Advice Bureaux Services

Review of the Citizens Advice Bureaux Services

RSP decision in April 2016 (REG/2016/22)

Decision on review results

Progress to date:

Report was considered at 20 Feb meeting. Decision: lies on the table. A supplementary report was considered on 10 April 2018, Res ENV/2018/48 and with changes for an updated funding model to be agreed by 1 April 2019

(Feb)

(Feb/Mar19)

Social and Community Housing Strategy and initiatives

Strategic overview of social and community housing initiatives. Wider housing portfolio and spatial outcomes of council’s role in housing is led by the Planning Committee.

Affordable Housing Intervention

Understanding NZ and international interventions to address affordable housing

Decision on future Auckland Council approaches to affordable housing interventions

Te Kauroa – Library Strategy

Libraries and Information is carrying out a change programme (Fit for the future) to accelerate the implementation of this 2013-2023 strategy (approved by the Governing Body)

Direction relating to priorities and to receive update on strategic direction and implementation progress

Approve an expanded and improved regional mobile library service

Progress to date:

workshop held on 7 March with local board chairs. Workshop notes were attached to the 10 April agenda

(Sep)

Central library strategic review

A strategic review of the Central Library has been commissioned to understand how the current building can meet future need and demand for services, asses the Central Library’s current and potential future role in the region, and guide decision making about future investment and development opportunities

Decide direction and receive the strategic review

Libraries

Work around the integration with customer services

Decision on matters relating to regional aspects of the proposed integration (local boards will decide on local outcomes)

Intercultural Cities Network

Consideration of a proposal to join the Intercultural Cities Network to support implementation and monitoring of progress on ‘Inclusive Auckland’ actions.

Decide whether Auckland should be a member of the network

(Jun)

Investing in Aucklanders (Age Friendly City)

Identify issues and opportunities for an inclusive friendly city (Regional Policy and Strategy resolution REG/2016/92)

Strategic direction on the approach to a friendly, inclusive, diverse city.

Progress to date:

Update reports were circulated on 18 April 2018 and 14 Dec 2017. Staff report findings and the proposed next phase in 2018.

A report on the Findings was considered on 12/06/18 meeting. Resolution ENV/2018/75 approval for up to five inclusion pilots.

A report back on the advantages and any obstacles to Auckland becoming an Age Friendly City as part of the World Health Organisation’s Global Network.

(Jul)

Social Enterprise approaches for youth and long term unemployed

Improved understanding of social enterprise reach, impacts, costs and benefits

Strategic direction on councils approach to social enterprise.

(Jul)

Youth volunteer programmes

Intervention assessment of youth volunteer programmes on long term education and employment – understanding impacts, costs and benefits

Strategic direction on interventions approach

(Jul)

Events Policy

A review of what is working well and what isn’t

(Sep)

Grant Policy Monitoring

Audit of the application of the Grants Policy

Decision on audit results

Toi Whitiki Strategy

Targeted analysis of social return on investment on specific art and culture investment

(Dec)

Public Art Policy

Review of the Public Arts Policy: what’s working what’s not.

Decisions relating to major public arts

Decision on review results

Progress to date:

The report was considered on 14/08/18. Resolution ENV/2018/103 : report back on implementation within 18 months

(Apr19)

Current Development Contribution revenue and expenditure – funding for open space purposes

Highlight the new parks and open spaces for Aucklanders’ use and enjoyment

A report was considered on 14/08/178 on Open Space acquisition in 2017/18 financial year. resolution ENV/2018/104 to report back on DC revenue and expenditure by funding area for open space purposes based on current based on the current DC policy.

Tbc

LEGISLATION/CENTRAL GOVERNMENT

National Environmental Standards

Council response on the National Direction for aquaculture expected following scheduled release of consultation document in April 2017. The National Direction is likely to address matters relating to re-consenting, bay-wide management, innovation and research, and biosecurity.

Direction

Committee agreement to a council submission on the National Direction for Aquaculture

LAND ACQUISITIONS

Strategic acquisition issues and opportunities

Understanding current acquisition issues and options.

Land acquisition for stormwater purposes

Delegated responsibility of the committee.

To acquire land for stormwater management and development purposes, to either support a structure plan or ad-hoc development.

Decision to acquire land. Reports will come to committee as required.

Next report will be in Feb 2018 seeking authority to carry out compulsory acquisition of land in the Henderson area for a flood prevention project.

(Feb)

OTHER

Long-term Plan

Informing the development of the 2018-2028 Auckland Council Long-term Plan

Chairperson	Cr Penny Hulse
Deputy Chairperson	Cr Alf Filipaina
Members	Cr Josephine Bartley	Cr Mike Lee
	IMSB Member Renata Blair	Cr Daniel Newman, JP
	IMSB Member James Brown	Cr Greg Sayers
	Cr Dr Cathy Casey	Cr Desley Simpson, JP
	Deputy Mayor Cr Bill Cashmore	Cr Sharon Stewart, QSM
	Cr Ross Clow	Cr Sir John Walker, KNZM, CBE
	Cr Fa’anana Efeso Collins	Cr Wayne Walker
	Cr Linda Cooper, JP	Cr John Watson
	Cr Chris Darby	Cr Paul Young
	Cr Hon Christine Fletcher, QSO
	Mayor Hon Phil Goff, CNZM, JP
	Cr Richard Hills

No.	Title	Page
a ⇩	Forward work programme	183
b	20181001_Global Activity memo - October 2018 (Under Separate Cover)
c	20180907_Memo update on the Te Korowai o Waiheke project (Under Separate Cover)
d	20180912_Workshop: proactive approach to council's investment in golf (Under Separate Cover)

Author	Tam White - Senior Governance Advisor
Authoriser	Dean Kimpton - Chief Operating Officer