Agenda of Waitākere Ranges Local Board - Thursday, 25 November 2021

At the close of the agenda no apologies had been received.

Members were reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

Specifically, members are asked to identify any new interests they have not previously disclosed, an interest that might be considered as a conflict of interest with a matter on the agenda.

The following are declared interests of the Waitākere Ranges Local Board:

Board Member	Organisation/Position
Mark Allen	- Community Waitākere – Executive Officer - Bethells Valley Fire – Senior Fire Fighter - Waitākere Licensing Trust – Trustee
Michelle Clayton	- Glen Eden Community House – Treasurer - Glen Eden Residents’ Association – Treasurer - Waitākere Community Organisation Grants Scheme (COGS) – Committee Member - The Personal Advocacy and Safeguarding Adults Trust – Trustee - Glen Eden Returned Services Association (RSA) – Member - Glen Eden Railway Trust – Member - Te Wahi Ora Charitable Trust - Trustee
Sandra Coney	- Cartwright Collective – Member - Women’s Health Action Trust – Patron - New Zealand Society of Genealogists – Member - New Zealand Military Defence Society – Member - Pest Free Piha – Partner is the Coordinator - Piha Tennis Club – Patron and Partner is the President - Piha Wetland Trust – Partner is a Trustee - Waitākere Ranges Pest Free Alliance – Partner is the Co-Chair of this group - Waitematā District Health Board – Elected Member & Chair of Hospital Advisory Committee
Greg Presland	- Whau Coastal Walkway Environmental Trust – Trustee - Combined Youth Services Trust – Trustee - Glen Eden Bid – Member - Titirangi Ratepayers and Residents Association – Member - Waitākere Ranges Protection Society - Member - Titirangi RSA - Member
Saffron Toms	- Titirangi Community House – Secretary - Huia-Cornwallis Residents and Ratepayers Association – Committee Member
Ken Turner	- Huia-Cornwallis Residents and Ratepayers Association – Committee Member

Member appointments

Board members are appointed to the following bodies. In these appointments the board members represent Auckland Council:

External community group or organisation	Lead	Alternate
Aircraft Noise Community Consultative Group	Mark Allen	Saffron Toms
Ark in the Park	Mark Allen	Sandra Coney
Friends of Arataki and Waitākere Regional Parkland Incorporated	Michelle Clayton	Sandra Coney
Glen Eden Business Improvement District (Glen Eden Business Association)	Michelle Clayton	Greg Presland
Glen Eden Playhouse Theatre Trust	Ken Turner	Mark Allen
Te Uru Waitākere Contemporary Gallery	Mark Allen	Saffron Toms and Sandra Coney
The Rural Advisory Panel	Ken Turner	Saffron Toms

4 Confirmation of Minutes

That the Waitākere Ranges Local Board:

a) confirm the ordinary minutes of its meeting, held on Thursday, 28 October 2021, as a true and correct record.

5 Leave of Absence

At the close of the agenda no requests for leave of absence had been received.

6 Acknowledgements

At the close of the agenda no requests for acknowledgements had been received.

7 Petitions

At the close of the agenda no requests to present petitions had been received.

8 Deputations

Standing Order 7.7 provides for deputations. Those applying for deputations are required to give seven working days notice of subject matter and applications are approved by the Chairperson of the Waitākere Ranges Local Board. This means that details relating to deputations can be included in the published agenda. Total speaking time per deputation is ten minutes or as resolved by the meeting.

8.1 Deputations: Titirangi Community House - management agreement update

Te take mō te pūrongo

Purpose of the report

1. To receive a deputation from the Titirangi Community House.

Whakarāpopototanga matua

Executive summary

2. Jan Workman, chair of Titirangi Community House, will be in attendance to report back to the local board as per its management agreement.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) receive the presentation on the management agreement and thank Jan Workman, chair of Titirangi Community House, for her attendance.

9 Public Forum

A period of time (approximately 30 minutes) is set aside for members of the public to address the meeting on matters within its delegated authority. A maximum of 3 minutes per item is allowed, following which there may be questions from members.

At the close of the agenda no requests for public forum had been received.

10 Extraordinary Business

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

(a) The local authority by resolution so decides; and

(b) The presiding member explains at the meeting, at a time when it is open to the public,-

(i) The reason why the item is not on the agenda; and

(ii) The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

“Where an item is not on the agenda for a meeting,-

(a) That item may be discussed at that meeting if-

(i) That item is a minor matter relating to the general business of the local authority; and

(ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

(b) no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”

Waitākere Ranges Local Board

25 November 2021

Waitākere Ranges Grants Quick Response, Round One 2020/2021 grant allocations

File No.: CP2021/16393

Te take mō te pūrongo

Purpose of the report

1. To fund, part-fund or decline applications received for Waitākere Ranges Quick Response Grants, Round One 2021/2022.

Whakarāpopototanga matua

Executive summary

2. This report presents applications received in Waitākere Ranges Quick Response, Round One 2021/2022 (Attachment B).

3. The Waitākere Ranges Local Board adopted the Waitākere Local Grants Programme 2021/2022 (Attachment A), which sets application guidelines for contestable community grants submitted to the local board.

4. The Waitākere Ranges Local Board has set a total community grants budget of $81,889.00 for the 2021/2022 financial year.

5. A total of $29,520.00 was allocated to Local and Multi-Board Grants Round One. This leaves a total of $52,369.00 remaining to be spent.

6. Twenty-one applications have been received for Waitākere Ranges Local Board Quick Response Round One 2021/2022, one application was withdrawn; totalling a requested amount of $24,060.75.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) agree to fund, part-fund or decline applications received for Waitākere Ranges Quick Response, Round One 2021/2022

Table One: Waitākere Ranges Quick Response Grants, Round One 2021/2022 grant applications

Application ID	Organisation	Main focus	Requesting funding for	Amount requested
QR2219-101	David Minty	Environment	Towards the cost of purchasing trapping equipment for Huia from December 2021 to December 2022	$1,000.00
QR2219-102	Bishop Stream Neighbourhood Garde	Community	Towards flexi bin, weed trimmer, and hireage of chipper to use at Wirihana Road, Titirangi between December 2021 and March 2022	$699.40
QR2219-104	Pisces Road Playgroup	Community	Towards the upgrade of play equipment and resources at the Glen Eden Community House from October 2021 to March 2022	$782.75
QR2219-106	Predator Free Waitakere Township	Environment	Towards the purchase of possum traps to be used at the Waitakere township in December 2021	$1,000.00
QR2219-107	Henderson Valley Resident's Association	Community	Towards Community Emergency signs at Grassmere Road Henderson Valley from December 2021 to March 2022	$1,500.00
QR2219-108	Auckland Basketball Services Limited	Sport and recreation	Towards basketball equipment and junior coaching costs in Waitakere Ranges schools from December 2021 to June 2022	$1,500.00
QR2219-109	Environmental Education for Resource Sustainability Trust	Community, Environment	Towards native plants, recycling bins, and delivery costs from 1 December 2022 to 31 December 2022	$1,498.70
QR2219-110	Rohan D'SOUZA	Community	Towards prizes and certificates, DJ, and venue hire for the annual recital at New Lynn Community Centre in December 2021	$1,000.00
QR2219-111	Piha Surf Life Saving Club Incorporated	Community	Towards protection screens at the Piha Surf Life Saving Club from December 2021 to April 2022	$1,500.00
QR2219-112	Youthline Auckland Charitable Trust	Community	Towards the annual cost of counselling and in-school promotion of Youthline in Waitakere Ranges from December 2021 to June 2022	$1,500.00
QR2219-113	Titirangi Community House Society Inc.	Community	Towards phone and electricity bill in the Titirangi Community House from December 2021 to February 2022	$1,500.00
QR2219-114	Briar Broad	Environment	Towards Vespex user registration, printing costs, gloves, and screws to install the bait station in Kitewaho Road between December 2021 and February 2022	$428.00
QR2219-115	Piha Tennis Club Inc	Community	Towards the maintenance of the court, tennis balls, and contribution to the cost of coaches for the Kids Tennis Camp in Piha Tennis Courts in December 2021	$1,500.00
QR2219-116	Piha Surf Life Saving Club Incorporated	Community	Towards the purchase of lockers at the Piha Surf Life Saving Club between December 2021 to March 2022	$1,500.00
QR2219-119	Protect Piha Heritage Society Inc	Environment	Towards creation of the Waitākere Ranges Heritage Area Act resource pack between December 2021 and March 2022	$1,500.00
QR2219-121	Waitakere Japanese Supplementary School	Arts and culture, Community	Towards materials for the ‘Gakushu Happyoukai" end of year school production at Glen Eden Intermediate School in April 2022	$700.00
QR2219-122	Friends of Whatipū Incorporated	Environment	Towards a digger, installation of drainage coil and scoria, and purchase of the corrugated iron sheets in Whatipū campground from December 2021 to April 2022	$1,500.00
QR2219-124	Crescendo Trust of Aotearoa	Community	Towards copyright fees and print production of Crescendo’s Mentoring Programme from December 2021 to March 2022.	$1,351.90
QR2219-125	Auckland King Tides Initiative under the umbrella of The Institution of Professional Engineers New Zealand Inc	Environment	Towards tidal gauges in Cornwallis Wharf between January 2022 to September 2022	$1,500.00
QR2219-126	Scottish Celtic Music Group	Arts and culture	Towards venue hire of Oratia Bowling Club and Oratia Settlers' Hall for a live music concert and Scottish traditional dance open to the community in April 2022	$600.00

Total				$24,060.75

Horopaki

Context

7. The local board allocates grants to groups and organisations delivering projects, activities and services that benefit Aucklanders and contribute to the vision of being a world-class city.

8. The Auckland Council Community Grants Policy supports each local board to adopt a grants programme. Waitākere Ranges Local Board adopted their grants programme for 2021/2022 and will operate two quick response and two local grants rounds for this financial year.

9. The local board grants programme sets out:

· local board priorities

· lower priorities for funding

· exclusions

· grant types, the number of grant rounds and when these will open and close and

· any additional accountability requirements.

10. The community grant programmes have been extensively advertised through the council grants webpage, local board webpages, local board e-newsletters, Facebook pages, council publications, radio, and community networks.

Tātaritanga me ngā tohutohu

Analysis and advice

11. The aim of the local board grant programme is to deliver projects and activities which align with the outcomes identified in the local board plan. All applications have been assessed utilising the Community Grants Policy and the local board grant programme criteria. The eligibility of each application is identified in the report recommendations.

Tauākī whakaaweawe āhuarangi

Climate impact statement

12. The local board grants programme aims to respond to Auckland Council’s commitment to address climate change by providing grants to individuals and groups for projects that support and enable community climate action. Community climate action involves reducing or responding to climate change by local residents in a locally relevant way. Local board grants can contribute to expanding climate action by supporting projects that reduce carbon emissions and increase community resilience to climate impacts. Examples of projects include local food production and food waste reduction; decreasing access to single-occupancy transport options, home energy efficiency and community renewable energy generation; local tree planting and streamside revegetation; and education about sustainable lifestyle choices that reduce carbon footprints.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

13. Based on the main focus of an application, a subject matter expert from the relevant department, will provide input and advice. The main focus of an application is identified as arts, community, events, sport and recreation, environment or heritage.

14. The grants programme has no identified impacts on council-controlled organisations and therefore their views are not required.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

15. Local boards are responsible for the decision-making and allocation of local board community grants. The Waitākere Ranges Local Board is required to fund, part-fund or decline these grant applications against the local board priorities identified in the local board grant programme (refer to attachment A)

16. The board is requested to note that section 50 of the Community Grants Policy states “We will also provide feedback to unsuccessful grant applicants about why they have been declined, so they will know what they can do to increase their chances of success next time”.

17. A summary of each application received is provided (refer to Attachment B).

Tauākī whakaaweawe Māori

Māori impact statement

18. The local board grants programme aims to respond to the council’s commitment to improving Māori wellbeing by providing grants to individuals and groups who deliver positive outcomes for Māori. Auckland Council’s Māori Responsiveness Unit has provided input and support towards the development of the community grant processes.

19. Four organisations applying in this round have indicated that their project targets Māori or Māori outcomes.

Ngā ritenga ā-pūtea

Financial implications

20. This report presents applications received in Waitākere Ranges Quick Response, Round One 2021/2022 (Attachment B).

21. The Waitākere Ranges Local Board adopted the Waitākere Local Grants Programme 2021/2022 (Attachment A), which sets application guidelines for contestable community grants submitted to the local board.

22. The Waitākere Ranges Local Board has set a total community grants budget of $81,889.00 for the 2021/2022 financial year.

23. A total of $29,520.00 was allocated to Local and Multi-Board Grants Round One. This leaves a total of $52,369.00 remaining to be spent.

24. Twenty-one applications have been received for Waitākere Ranges Local Board Quick Response Round One 2021/2022, one application has been withdrawn, totalling a requested amount of $24,060.75.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

25. The allocation of grants occurs within the guidelines and criteria of the Community Grants Policy and the local board grants programme. The assessment process has identified a low risk associated with funding the applications in this round.

Ngā koringa ā-muri

Next steps

26. Following the Waitākere Ranges Local Board allocating funding for quick response Round One, Grants and Incentives staff will notify the applicants of the local board’s decision.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Waitakere Ranges Grants Programme 2021/2022	17
b ⇨	Waitākere Ranges Quick Response, Round One 2021/2022 Application Summary (Under Separate Cover)

Ngā kaihaina

Signatories

Author

Rikka Barbosa - Grants Advisor

Authorisers

Rhonwen Heath - Head of Rates Valuations & Data Management

Adam Milina - Local Area Manager

No.	Title	Page
a ⇩	Streets for People - objectives, criteria, and limitations	23
b ⇨	Prospect School proposal (to be provided separately, when available) (Under Separate Cover)
c ⇨	Konini School proposal (to be provided separately, when available) (Under Separate Cover)

Waitākere Ranges Local Board

25 November 2021

Report on the Recovery from the West and North-West Auckland Floods

File No.: CP2021/16301

Te take mō te pūrongo

Purpose of the report

1. To provide the Report on the Recovery from the West and North-West Auckland Floods to the Waitākere Ranges Local Board to support discussion of the recovery, and opportunities to work with local boards in 2022 on arrangements for recovery from such events in future.

Whakarāpopototanga matua

Executive summary

2. An adverse weather event over 30-31 August 2021 caused flooding of low-lying areas and slips to parts of west and north-west Auckland affected parts of the Henderson-Massey, Waitākere Ranges and Rodney local board areas.

3. Auckland Emergency Management activated in response, which transitioned to recovery on 10 September 2021.

4. The development of a recovery plan was replaced by preparation of a Report on the Recovery from the West and North-West Auckland Floods (the Report), in consultation with the National Emergency Management Agency, as:

· there were only low numbers of requests for assistance

· significant activities were being managed by respective organisations within their business-as-usual processes and resources, and without the need for coordination across recovery environments.

5. The Report presents an overall summary of:

· the storm/rain fall event

· the response

· the recovery and completion of activities by respective Auckland Council business units and organisations

· opportunities to be incorporated into Auckland Emergency Managements’ work to prepare for recovery from emergency events in the future.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) receive the Report on the Recovery from West and North-West Auckland Floods.

Horopaki

Context

6. A slow-moving rain band within a broadscale rain event passing over Auckland brought thunderstorms and localised downpours on 30-31 August 2021. Flooding was experienced on low lying land and along the margins of waterways, inundating homes and businesses. Landslips were triggered cutting off access to coastal communities and some homes and several Waitākere water storage dams were impacted.

7. The affected area included parts of the Rodney, Waitākere Ranges and Henderson-Massey local board areas. Multiple streams and their tributaries drain the Waitākere Ranges and their foothills wind their way to the sea through this area.

8. The Insurance Council New Zealand has advised preliminary figures for insured losses of approximately $56.5 million from just over 2,400 claims.

9. The response to the West and North-West Auckland Floods transitioned to recovery on Friday, 10 September 2021. This was the second recovery initiated under the national framework after the Papatoetoe Tornado earlier this year.

Tātaritanga me ngā tohutohu

Analysis and advice

Recovery

10. The national framework for civil defence emergency management comprises the Civil Defence Emergency Management Act 2002, the National Disaster Resilience Strategy, National Civil Defence Emergency Management Plan (Order 2015) and relevant director’s guidelines.

11. The national framework establishes processes to support recovery from an emergency event, informed by Directors Guidelines; DGL 20/17, Strategic Planning for Recovery and DGL 24/20, Recovery Preparedness and Recovery and the local arrangements thereunder.

12. The recovery was characterised by different local impacts over a broad area with flood damage to homes and businesses and storm debris deposited on land and in water courses in low lying areas, and slips causing damage to private property and public infrastructure in the Waitākere Ranges.

13. There were surprisingly low numbers of requests for assistance received through the response or recovery phases. This may result from the level of resilience amongst communities in the affected area, the Covid-19 environment and the arrangements made to support families in this environment.

14. Development of a recovery plan commenced based on the assessment of impacts. It became apparent through this process that some activities would be completed before a recovery plan could be approved. The remaining significant activities were being managed by respective organisations within their business-as-usual processes and resources, and without the need for coordination across recovery environments. On this basis, together with the low numbers of requests for assistance the decision was made, in consultation with the National Emergency Management Agency, to prepare a recovery report instead of a recovery plan.

15. The Report presents an overall summary of:

· the storm/rain fall event

· the response

· the recovery and completion of activities by their respective Auckland Council business units and organisations

· opportunities to be incorporated into Auckland Emergency Managements’ work to prepare for recovery from emergency events in the future.

16. Further particulars of the recovery are outlined in the attached Report.

Opportunities

17. Section 9 of the report identified opportunities to pursue enhancements of Auckland Emergency Management’s work programme.

Recovery Preparedness

18. Business as usual work on recovery is focused on improving arrangements for recovery from future events. Recent experience gained from the Papatoetoe Tornado Recovery and the West and North-West Auckland Flooding Recovery will be incorporated into the recovery work programme outlined in Appendix 2 of the attached report.

19. Arrangements were made earlier in the year, through Local Board Services, to commence workshops with local boards on recovery in October 2021. These workshops have been deferred until 2022, though will benefit from the lessons of recent experience.

Māori Responsiveness Plan

20. Developing relationships with Māori, iwi and mataawaka is part of Auckland Emergency Management’s broader work programme across the 4 R’s of emergency management - Reduction, Readiness, Response and Recovery, will improve the practice of recovery in Tāmaki Makaurau.

Community Resilience Building

21. There is an opportunity to support the Waitākere Ranges Local Board in the 2022/2023 financial year to strengthen community resilience, including preparing for climate change and extreme weather events.

Early Warning and Operational Responses

22. This opportunity relates to a specific project of Healthy Waters and its potential for operational improvements through integration with Auckland Emergency Management systems.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23. The Report outlines opportunities identified through the recovery from West and North-West Auckland Floods to be better prepared to recover from future emergency events, including intense weather events.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24. The Report incorporates input from business units and organisations across the Auckland Council group.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

25. The Report outlines the impacts on part of the Waitākere Ranges Local Board area resulting from the stalled rain band within the broadscale rain event that passed over West Auckland on 30-31 August 2021.

26. The Report is provided to the Waitākere Ranges Local Board to support discussion of the recovery and opportunities to work with local boards in 2022 on future arrangements for the recovery from such events.

Tauākī whakaaweawe Māori

Māori impact statement

27. Emergency events may adversely impact land, water, sites of significance, waahi tapu flora or fauna affecting mana whenua and Māori wellbeing in general. The recovery from such events is of significant interest to Māori.

28. Building relationships with mana whenua and mataawaka as a part of enhancing Auckland Emergency Management’s work programme is identified as an opportunity in the Report.

Ngā ritenga ā-pūtea

Financial implications

29. There are no financial implications arising from this report. Auckland Emergency Management’s work programme for recovery preparations is budgeted, primarily through funding staff resource.

30. Arrangements for the recovery from future emergency events resulting from the work programme for recovery preparations is subject to council decision-making processes with input from local boards.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

31. Section 6 of the Report outlines risks associated with works addressing impacts of the flooding and the rainfall event that caused it. These relate to sourcing construction materials and restrictions associated with Covid-19.

32. Opportunities to enhance Auckland Emergency Management’s work programme are subject to disruption when Auckland Emergency Management is activated to respond to or recovery from emergencies.

Ngā koringa ā-muri

Next steps

33. Recommencing the business-as-usual recovery work programme includes planning to engage local boards on the practice of recovery in 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Report on the Recovery from the West and North-West Auckland Floods	31

Ngā kaihaina

Signatories

Author

Wayne Brown - Principal Recovery Advisor

Authorisers

Jennifer Rose - Head of Recovery

Adam Milina - Local Area Manager

Waitākere Ranges Local Board

25 November 2021

Ngā Hapori Momoho | Thriving Communities Draft Strategy

File No.: CP2021/17246

Te take mō te pūrongo

Purpose of the report

1. To seek support for the draft Ngā Hapori Momoho/Thriving Communities Strategy 2022-2032.

Whakarāpopototanga matua

Executive summary

2. Ngā Hapori Momoho | Thriving Communities was adopted in 2014 as council’s strategy for community and social wellbeing. A review of the plan in 2018 identified it needed to be refreshed to align with the Auckland Plan 2050 outcomes and better address the changes and challenges in Tāmaki Makaurau.

3. These challenges include growing socio-economic disparities, population growth and intensification, the impacts of climate change and more recently COVID-19. These impact on communities’ ability to thrive.

4. Through the refresh process we heard from diverse communities across the region on what is needed to help them thrive. These insights have shaped the draft strategy.

5. The draft Ngā Hapori Momoho | Thriving Communities strategy sets out the high-level direction for the next 10 years to respond to these challenges and to what communities told us was important.

6. The draft strategy has four main outcome areas which are the building blocks for thriving:

· Manaakitanga | Quality of life:

All Aucklanders enjoy the essentials of a good life and fulfil their potential

· Whanaungatanga | Community Connection

Aucklanders are connected and feel as though they belong

· Kotahitanga | Collective action:

All Aucklanders can participate and they take collective action to meet common goals

· Kaitiakitanga | Sustainable futures:

Aucklanders are connected to and care for the environment.

7. The high-level outcomes are supported by objectives that cascade to three key shifts in the way we work: from one-size fits all to targeting our responses, from adhoc and siloed to working in integrated ways, shifting from council as expert to enabling community leadership.

8. Four investment principles focus resources to impact on community challenges. This will ensure there is a strong, intentional link between aspiration, investment and action, and that we focus on communities who experience the greatest inequities.

9. A key constraint is that there is currently no additional budget attached to the proposed strategy. This means the pace of change will be reliant on future budget and implementation planning to either seek new investment or to refocus existing resources to the strategy’s objectives.

10. Another limitation is that many of the barriers to people thriving relate to complex socio-economic factors where the council is not the primary deliverer.

11. The draft strategy will be reported to the Parks, Arts, Community and Events Committee in February 2022 for adoption.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) support the draft Ngā Hapori Momoho | Thriving Communities Strategy 2022 – 2032 as set out in Attachment A to this report.

Horopaki

Context

12. The Auckland Plan Participation and Belonging outcome in particular sets the aspiration that ‘All Aucklanders will be part of and contribute to society, access opportunities, and have the chance to develop to their full potential’.

13. Ngā Hapori Momoho | Thriving Communities was adopted in 2014 as council’s community and social wellbeing plan. It is a core plan to deliver the Auckland Plan 2050 which has a strong focus on fostering an inclusive Auckland where everyone has the chance to thrive.

14. In 2018 a review of Ngā Hapori Momoho identified several improvement areas. This included refreshing the strategy to better align it to the new Auckland Plan 2050 and to address the changes and growing challenges facing Auckland.

Diverse community voices have shaped the draft strategy approach

15. The new draft Ngā Hapori Momoho | Thriving Communities strategy has been informed by feedback from the diverse communities of Tāmaki Makaurau, key sector stakeholders, partners, and mana whenua. These voices are central to both the content of the draft strategy and how it will be used.

16. During 2019 and 2020 staff looked at feedback from over 50 previous public engagements, and then undertook face-to-face interviews, focus groups and online hui. We heard from over 400 community groups and leaders from across the region on what it means to thrive and what council can do to support that.

17. Staff presented the findings from this community engagement to local boards in April 2021 which can be accessed here.

Tātaritanga me ngā tohutohu

Analysis and advice

Auckland is facing local and international challenges impacting thriving communities

18. At the 2018 Census there were nearly 1.6 million usual residents in Auckland, an increase of 11per cent since the 2013 Census, and this is projected to grow to 2.4 million by 2050^{^[1]}.

19. Tāmaki Makaurau is very diverse – it is home to the largest Polynesian population of any city in the world, and 40 per cent of the population were born overseas.

20. Whilst many of those living in Auckland can make the most of all this region has to offer, there are still many who have limited capability to access social and economic resources and opportunities compared to the general population.

21. Many Aucklanders do not have access to the things they need to thrive. This restricts their ability to fully participate in society and in activities that have meaning and value to them.

22. Tāmaki Makaurau’s strong economic growth has not been shared equally, with Māori and Pasifika communities making considerably less each week than the rest of the Auckland population.

23. Over a third (38.5 per cent) of Pasifika people and 46 per cent of young people in Auckland are living in overcrowded and unsuitable homes^{^[2]}.

24. Only 50per cent of Aucklanders feel a sense of belonging in their neighbourhoods, and 49per cent have felt isolated and lonely^{^[3]}.

25. Tāmaki Makaurau is facing some key challenges over the next 10-20 years that provide the strategic drivers for the refreshed strategy. We need to respond to these if we want to maintain social cohesion and ensure all our people and communities are thriving.

Challenge 1	Challenge 2	Challenge 3
Growing wealth and income inequality will mean too many whānau cannot thrive.	The pace and scale of growth and social change could undermine Aucklander’s sense of belonging and connection.	Our changing climate will make outcomes worse for those communities already struggling.

26. More recently other significant changes both locally and globally are contributing to why we need a strategy that takes an intentional approach to supporting thriving, inclusive and sustainable communities

Changing the way council works can help address community challenges

27. In recognition of the 2018 review findings and from our community and stakeholder engagement, we know there needed to be some key shifts in the underlying thinking and approach of the council. We also need to be explicit in our priorities. Key shifts proposed include the following:

	FROM	TO	WHAT CHANGES WILL WE MAKE?
1	Ad hoc and siloed	Integrated and connected	We will work across the Auckland Council group, with government and across communities and sectors to support Aucklanders to thrive. We will share data, evidence and learning. We will prioritise interventions which support coordination and collective impact to deliver on the multiple outcomes which impact Aucklander’s wellbeing (social, environmental, cultural and environmental).
2	One-size-fits all	Targeted approaches	We will change our current services, activities and ways of working to better meet the needs of whānau and communities, particularly those experiencing the greatest disparity in outcomes. We will tailor services and activities to meet local needs and opportunities.
3	Council as expert	Council as enabler	We will support communities (whānau, hapū, iwi, people) to lead their own responses. We will enable them to define, deliver, and monitor the things that enable them to thrive. We will measure our success based on the outcomes we enable rather than just the services and activities that we deliver.

What we want to achieve – an overview of the draft strategy

28. To guide how we respond to these identified challenges and to support the key shifts we need to make, the draft strategy sets out four outcomes and six objectives. The outcomes set out where communities want to be in the future. Objectives identify where to focus to get there.

Outcomes: Four building blocks for thriving

29. The draft strategy has four main outcome areas which if achieved would contribute to thriving communities.

· Manaakitanga | Quality of life

All Aucklanders enjoy the essentials of a good life and fulfil their potential

· Whanaungatanga | Community connection

Aucklanders are connected and feel as though they belong

· Kotahitanga | Collective action

All Aucklanders can participate and they take collective action to meet common goals

· Kaitiakitanga | Sustainable futures
Aucklanders are connected to and care for the environment.

Objectives: Where should we focus our action

30. To help give direction on how we might achieve the intended outcomes, we have identified six objective areas which will provide guidance on what actions could be taken by the organisation to contribute to the outcomes.

31. While we have grouped action areas under each objective many of these will contribute to multiple objectives. Many are focussed on addressing complex societal challenges which council does not have all the levers, resource or influence to directly address.

32. These objectives do however provide direction on how we can use the levers available to us (such as our procurement power) to affect and influence change, within our control.

Investment principles will help us to invest in what will make the greatest difference

33. The draft strategy proposes we invest our resource to make the biggest impact and this will be guided by four key principles:

34. Auckland Council also has a range of roles and levers that we can use to effect change in conjunction with partners to help communities thrive.

35. Our presence in and understanding of the community is one of our most powerful tools. This can be utilised in several areas: urban form, procurement, community facilities, our workforce, transport, community development and grants.

Strengths of the draft strategy

36. As an outcome focused strategy, it provides focus and direction, but is not prescriptive on processes or actions. It provides scope for creative and innovative responses to achieving the outcomes and objectives.

37. The high-level outcomes and objectives in the draft strategy cascade to key shifts, investment principles and to three-year implementation plans. This will ensure there is a strong and intentional link between aspiration, investment and action.

38. The draft strategy also presents both council and partners with an opportunity to do things differently, apply new approaches and have the flexibility to respond to local needs in ways that are appropriate and effective.

39. This is important as it not only addresses current challenges but allows flexibility to respond to emerging challenges in the future as our intended end outcomes will not change.

40. It also presents us with an opportunity to partner with our communities to incorporate existing and emerging approaches from global research as well as those generated in Aotearoa, so that we are using all tools available to collectively to achieve the outcomes.

Constraints and limitations of the draft strategy

41. Ngā Hapori Momoho | Thriving Communities is a 10-year strategy focused on long-term outcomes. It will take some time to see progress and the impact of actions, especially given the complexity of the challenges.

42. A key limitation is that many of the barriers to people thriving relate to complex socio-economic factors that council does not hold the primary levers for.

43. Council is, however, well-placed to use all of its resources and levers more effectively and work alongside central government and communities to support change.

44. A key constraint is that there is no additional budget to support delivery of the draft strategy, so the pace of change will be subject to how effectively existing resources and budget can be realigned and directed to the draft strategy’s new objectives.

45. New investment will need to be considered as part of future annual and long-term budget processes.

46. There is opportunity, however, for reprioritisation of existing resource and investment to be considered as part of implementation planning. The outcome of this will be reported to the governing body as part of the first three-year implementation plan (2022-2025).

47. The draft strategy relies heavily on the significant cooperation and commitment across the council, elected members and community partners for it to be effective. This in turn relies on visible and active leadership, and ongoing monitoring of progress and impact.

Tauākī whakaaweawe āhuarangi

Climate impact statement

48. During engagement, we heard from communities that the environment was a significant contributor to their wellbeing. Climate Change and environmental degradation are a threat to the way our communities aspire to live in Tāmaki Makaurau.

49. The Kaitiakitanga outcome was created to reflect the voices of mana whenua and community, through prioritising environmental wellbeing and encouraging community action and sustainability. Actions developed in the Thriving Communities three-year implementation plans will need to consider the connection between the wellbeing of our communities and the wellbeing of the environment.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

50. This is a proposed strategy for the whole council group and will also be used to challenge and guide council teams and CCO’s in their implementation roles.

51. Staff and teams from across the council and CCO’s have been involved in the refresh process, including attending a series of workshops to help identify existing and future actions to support what communities told us was important.

52. Going forward staff will work closely with the council group on implementation planning and the development of the first three-year implementation plan.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

53. Local boards have a strong interest, and play a key role, in creating thriving communities in their areas. All local boards have local board plan outcomes that support thriving communities, and many are already working towards several Thriving Communities objectives.

54. Community engagement included communities from across all local board areas.

55. The findings from the engagement phase were shared with elected members and engagement participants in early 2021. They were also published on the Thriving Communities Have Your Say page.

56. Staff attended local board workshops in October 2021 to share the high-level draft strategy. Local boards were broadly supportive of the approach and provided helpful feedback that has helped shape the revised draft. Common themes in local board feedback include:

· concern for isolated communities

· a strong desire to build the strategy into work plans. Boards could see the benefit of the approach and were eager to turn this into a practical response through their local plans

· concerns about funding the strategy, and opportunities to leverage existing or additional resource to support their communities.

Tauākī whakaaweawe Māori

Māori impact statement

57. The 2018 Census found that over 23 per cent of Aotearoa’s Māori population live in Tāmaki Makaurau, making up 11.5 per cent of Auckland’s population – the highest Māori population in any city in Aotearoa.

58. The average age of Auckland’s Māori population is 24.9 years, compared to Auckland’s average of 34.7 years. As this young population grows and reaches working age, Māori will be a critical part of supporting our economy and ageing population.

59. Although Māori make up a large proportion of Tāmaki Makaurau’s population, they have not equitably shared in our economic growth. In 2018 the median income for all Aucklanders was $34,000, but for Māori it was $27,000.

60. By focusing on achieving equitable outcomes for Māori, this strategy will make a positive impact on the social, cultural and economic wellbeing of tangata, whānau and hapori.

Engagement to understand the needs of Māori communities

61. To ensure the strategy is relevant and effective for Māori, staff undertook individual engagement interviews with 17 mana whenua iwi and two mataawaka organisations.

62. Key inputs into the strategy from the engagement process include:

· an environment objective to reflect the importance of whenua to wellbeing and thriving

· focus on achieving equity

· recognition that whakawhanaungatanga and connection is central to thriving communities

Delivering Māori outcomes

63. The council’s direction for delivering Māori outcomes is set out in Kia Ora Tāmaki Makaurau, which reflects the aspirations of Auckland ‘s Māori communities.

64. The draft strategy supports the Schedule of Issues of Significance 2021 by addressing the four pou of social, cultural, economic, and environmental wellbeing for Māori in Tāmaki Makaurau.

65. Mana whenua and mataawaka will have an opportunity to provide further feedback on the draft plan in November 2021.

Ngā ritenga ā-pūtea

Financial implications

66. There is currently no additional budget attached to the proposed Ngā Hapori Momoho /Thriving Communities strategy. This means in the short term it will need to be delivered within existing budgets and resources of council and CCOs. Where any additional investment is required, this will need to be considered through the long-term plan or annual plan processes.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

If <event>:

Then <impact>:

Possible mitigations:

If it is not clear that the draft strategy should drive reprioritisation of existing resources.

It may create expectations that there will be additional budget to support the implementation of the draft strategy.

All public-facing communications and guidance about the draft strategy will make it clear it is intended to focus and re-prioritise existing resources.

Future budget and implementation planning will identify how actions will be funded from existing budgets or through seeking new investment.

If the draft strategy is viewed as too ‘high level’ and does not provide clear enough direction.

The draft strategy may fail to have any meaningful impact on the way the organisation delivers services and therefore would have no meaningful impact on the desired outcomes.

Develop a strong implementation plan and ensure there is visible and active senior leadership to drive implementation.

The objectives will provide appropriate level of direction without being too prescriptive.

Incorporating a measurement framework in the implementation plan to help understand impact.

Ngā koringa ā-muri

Next steps

67. Community engagement on the draft strategy will be undertaken in November 2021.

68. This feedback and local board resolutions will be reported to the Parks, Arts, Community and Events Committee in February 2022, when the committee considers the draft strategy for adoption.

69. The draft strategy will be supported by a three-year implementation plan with tailored actions, and a monitoring and evaluation framework to track progress and impact. These two items are being developed for consideration in April 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Draft Ngā Hapori Momoho \| Thriving Communities Strategy 2022-2032	61

Ngā kaihaina

Signatories

Authors

Mackenzie Blucher - Graduate Policy Advisor

Dave Jaggs - Senior Policy Advisor

Authorisers

Kataraina Maki - General Manager - Community and Social Policy

Adam Milina - Local Area Manager

Waitākere Ranges Local Board

25 November 2021

Draft Contributions Policy 2021

File No.: CP2021/16582

Te take mō te pūrongo

Purpose of the report

1. To seek feedback from local boards on the draft Contributions Policy 2021.

Whakarāpopototanga matua

Executive summary

2. Development contributions allow for an equitable and proportionate share of the total cost of growth-related capital expenditure to be recovered from the development community.

3. The Finance and Performance Committee adopted the draft Contributions Policy 2021 for consultation at its meeting on 16 September 2021, FIN/2021/84.

4. Local board feedback is being sought to inform the Finance and Performance Committee’s consideration of the adoption of the Contribution Policy 2021 in December 2021.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) resolve feedback on the draft Contributions Policy 2021 on the key consultation topics:

i) updating policy for capital projects in the 10-year Budget 2021-2031

ii) inclusion of projects beyond 10-years to the policy in stages starting with Drury

iii) requiring developers to pay their contributions earlier

iv) proposal to support Māori development with grants

v) any other issues.

Horopaki

Context

5. Auckland’s population is expected to grow by 260,000 in the next ten years on top of the rapid population growth experienced in the last decade, bringing the projected population to approximately 1.9 million by 2031.

6. Construction of 145,800 new dwellings is forecast in the next ten years. To support the development enabled by the Auckland Unitary Plan, the council is facing immediate demands for infrastructure in key growth areas and in response to construction on upzoned land, plan changes and the impact of the National Policy Statement on Urban Development.

Tātaritanga me ngā tohutohu

Analysis and advice

7. Development contributions allow for an equitable and proportionate share of the total cost of growth-related capital expenditure to be recovered from the development community. The Contributions Policy sets out how the council will recover from new development an appropriate and fair share of the cost of infrastructure investment attributable to growth. There were four key consultation topics:

i) Updating policy for capital projects in the 10-year Budget

The draft policy provides for the recovery of $2.4 billion of development contributions revenue from $9.0 billion of projects with a growth component included in the10-year budget. The draft policy also included updated forecasts of population growth and dwelling construction. The combined impact of these changes is to lower the weighted average Development Contributions price from $23,900 to $21,100.

ii) Inclusion of projects beyond 10-years to the policy in stages starting with Drury

Extensive work has been undertaken in recent years on the infrastructure requirements to support growth in the investment priority areas. However, further work is required before these costs can be included in the contributions policy. Area specific amendments to the contributions policy will be proposed for consultation as the information becomes available.

The first step in the draft Contributions Policy 2021 will be to add a programme of expenditure to fund some of the key infrastructure required to support growth in the Drury area. The impact of this change is to raise the Development Contributions price in Drury to $84,900 from between $11,000 and $18,300.

iii) Requiring developers to pay their contributions earlier

The council proposed that Development Contributions be paid at the time of building consent for all development (residential and non-residential) except non-commercial development on Māori land (explained further below). This requires Development Contributions due at building consent to be paid 6 to 24 months earlier than under the current policy and reverses the changes made to the policy in 2019. When combined with the other changes proposed this lower the weighted average Development Contributions price to $19,300.

iv) A proposal to support Māori development with grants

The draft policy proposed continuing the support for marae development and papakāinga and Māori housing^{^[4]} on Māori land through grants available through the Cultural Initiatives Fund. These grants can cover payment of development contributions in appropriate circumstances, along with other kinds of development costs.

8. The proposed changes to the draft Contributions Policy 2021 were reported to the Finance and Performance Committee at its meeting on 16 September- see Attachment A Draft Contributions Policy 2021.

Consultation

9. Formal public consultation was held in September and October 2021. To support the consultation a number of documents were made available on the Have Your Say website, https://akhaveyoursay.aucklandcouncil.govt.nz/dc-policy.

10. Two online Have Your Say events were held to provide opportunities for developers and other interested parties to learn more about the draft policy, ask questions and provide their feedback. A third event was also held to allow interested parties to present their views directly to the Finance and Performance Committee. All comments have been captured and will be reported through to the Finance and Performance Committee to inform decision-making on the final policy.

11. A summary of the feedback received from submitters is set out in Attachment B: Draft Contributions Policy 2021 – Analysis of feedback received.

Tauākī whakaaweawe āhuarangi

Climate impact statement guidance

12. Recommendations in this report have a neutral climate impact as they relate to the funding of capital investment rather than decisions on the activities to be undertaken.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views guidance

13. The information presented on the projects included in the draft Contributions Policy 2021 was developed in conjunction with the following council-controlled organisations and council units:

· Auckland Transport

· Eke Panuku Development Auckland

· Healthy Waters

· Community Facilities

· Community and Social Policy.

14. The Chief Economist Unit and Research Investigations and Monitoring Unit worked with us on the impact of higher development contributions on the pace of development and on land and house prices.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

15. The development contribution price varies by location depending on the cost of infrastructure required to support development in an area.

16. Local board feedback is being sought to inform the Finance and Performance Committee’s consideration of the adoption of the Contribution Policy 2021 in December 2021.

Tauākī whakaaweawe Māori

Māori impact statement

17. Recent legislative changes require the contributions policy to support the development of Māori land. Feedback from iwi on the draft policy was sought as part of consultation and via engagement with the Tāmaki Makaurau Mana Whenua Kaitiaki Forum. All developers, including mana whenua, were provided an opportunity to present their feedback to the Finance and Performance Committee on 12 October.

18. The Tāmaki Makaurau Mana Whenua Kaitiaki Forum have provided their feedback which has been included in Attachment B: Draft Contributions Policy 2021 – Analysis of feedback received.

Ngā ritenga ā-pūtea

Financial implications

19. The 10-year budget assumes development contributions revenue of $2.7 billion. After completing the analysis of the cost of investments in the 10-year budget that can be recovered with development contributions and the impact of the proposed policy changes, it is estimated that the revenue will be $2.6 billion. The achievement of this revised revenue forecast requires as a first step the implementation of a contributions policy updated for the capital expenditure decisions in the 10-year budget and the other changes proposed in this report.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

20. The recommendation requesting local boards views does not present any risk. The risks associated with amending the contributions policy are set out in the report to the 16 September Finance and Performance Committee, Attachment A: Development Contributions Policy 2021 Consultation.

Ngā koringa ā-muri

Next steps

21. Feedback from the public consultation will be reported to the Finance and Performance Committee workshop on 10 November 2021.

22. Potential changes to the draft will be reported at the Finance and Performance Committee workshop on 1 December 2021. Staff will report to Finance and Performance Committee for the final policy adoption on 9 December 2021. Local board feedback will be included in the report.

23. The draft Contributions Policy 2021 is proposed to be implemented in January 2022.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇩	Development Contributions Policy 2021 report to the Finance and Performance Committee	93
b ⇩	Draft Contributions Policy 2021 – Analysis of feedback received	109

Ngā kaihaina

Signatories

Author

Andrew Duncan - Manager Financial Policy

Authorisers

Ross Tucker - General Manager, Financial Strategy and Planning

Glenn Boyd - Acting General Manager Local Board Services Adam Milina - Local Area Manager

Waitākere Ranges Local Board

25 November 2021

Three Waters Economic Regulation Submission

File No.: CP2021/16890

Te take mō te pūrongo

Purpose of the report

1. To outline the Government’s Economic Regulation and Consumer Protection for Three Waters Services in New Zealand discussion paper, circulated by the Ministry of Business, Innovation and Employment, and to seek feedback from local boards.

Whakarāpopototanga matua

Executive summary

2. On 27 October 2021, the Ministry of Business, Innovation and Employment released a discussion paper, “Economic Regulation and Consumer Protection for Three Waters Services in New Zealand”.

3. The discussion document describes how the economic regulator is envisioned to operate and what its statutory obligations would be. The discussion document also provides a brief explanation of why economic regulation is required in the face of three waters reform. Finally, it asks for feedback on several topics.

4. The views of local boards on the proposal are requested by 6 December 2021 to enable those views to influence the overall submission and to be included as an attachment to the council submission.

5. Final submissions from Auckland Council to Government on this topic are due at 5pm on 20 December 2021.

Ngā tūtohunga

Recommendation/s

That the Waitākere Ranges Local Board:

a) provide feedback for inclusion in Auckland Council’s submission on the Economic Regulation and Consumer Protection for Three Waters Services in New Zealand discussion paper.

Horopaki

Context

6. On 27 October 2021, the Ministry of Business, Innovation and Employment (MBIE) released a discussion paper, “Economic Regulation and Consumer Protection for Three Waters Services in New Zealand”.

7. The issues of economic regulation and consumer protection for three waters services in New Zealand is related, but separate, to the broader issue of the Water Services Bill. They require separate submissions as they are two different processes run by two different bodies and on different timeframes. There is a separate process to provide feedback about the reform in general. This process is to provide feedback on only the proposed economic regulation.

8. According to central government, economic regulation will have a crucial role to play in driving the level of efficiency that will be required to keep water services affordable in the long run.

9. Economic regulation ensures that the best outcomes for consumers will occur when there are monopoly markets, and the suppliers have a large amount of market power.

10. In this case, it is proposed that the economic regulator will also act as the consumer protection regulator and be funded through levies.

11. It is proposed that the Commerce Commission act in both capacities to regulate the newly-formed three waters industry in New Zealand after the Water Services Bill is enacted.

12. The discussion document describes how the economic regulator is envisioned to operate and what its statutory obligations would be. The discussion document also provides a brief explanation of why economic regulation is required in the face of three waters reform. Finally, it asks for feedback on several topics.

Tātaritanga me ngā tohutohu

Analysis and advice

13. What follows is a short summary of the discussion document and the areas where feedback is sought through the submissions process.

What is economic regulation and why do we need it?

14. Economic regulation protects consumers from the problems that can occur in markets with little or no competition and/or a large amount of market power. The regulation is intended to make businesses in the market behave similarly to how they would in a competitive market.

15. Utilities tend to be what is known as a “natural monopoly”. These markets are more cheaply served by one firm rather than many because of massive fixed costs.

16. Without regulation, markets with natural monopolies tend to have higher prices and/or lower outputs and/or lower output quality.

17. While consumer involvement in the governance of natural monopolies is helpful, it is not sufficient to ensure the best outcomes for consumers. Consumer involvement must work in concert with regulation.

18. Ultimately, the purpose of economic regulation is to advance the long-term interests of consumers. This ensures that suppliers deliver high-quality services that reflect consumer demand and incentivises improved efficiency. It also ensures any gains by the suppliers are passed through to the consumers.

What type of regulation is being proposed and who would pay the costs?

19. There are several types of regulation – price-quality, information disclosure, and quality-only. In this case, it is proposed that the regulator be a price-quality regulator.

20. Price-quality regulators essentially set upper limits on the price that can be charged by the supplier while setting lower limits on the quality of service that must be delivered.

21. Typically, price-quality regulators operate on regulatory cycles of four to six years. It is proposed that the economic regulator operate on a five-year cycle, with the possibility of the first regulatory cycle being shorter.

22. Economic regulation has costs. These costs come from two places. On one hand, the economic regulator costs money to operate and administer. On the other hand, the suppliers incur compliance costs to meet the requirements of the regulator.

23. It is proposed that the administrative costs of the regulator be recovered through levies. This is a straightforward, transparent, and standard way of recovering these costs. Ultimately these costs are borne by the consumers.

24. The cost to the supplier of complying with regulation is also ultimately borne by the consumers. Since both categories of regulatory costs are borne by the consumers, it is necessary to design the regulations to ensure they are net beneficial to consumers.

25. Given the amalgamation proposed by the Water Services Bill will increase the market power of the water providers, it is likely that regulation is necessary. Further, the research for the Water Services Bill finds that even the current absence of profit motives, and the obligations to promote the social, cultural, environmental, and financial wellbeing of communities has been insufficient to ensure delivery of effective and efficient three waters service. Put another way, there is probably a case for economic regulation, even in the absence of the proposed three waters amalgamation.

26. Thus, the MBIE’s recommendation is that three waters be price-quality regulated.

27. However, there is also a question as to whether the regulation should be applied generically across all suppliers or tailored to individual suppliers. Given the inflexibility of generic regulation and Government’s strong commitment to water service quality, it is recommended that the price-quality regulation be flexible to allow for different incentives to the different suppliers.

What parts of three waters should regulation apply to?

28. The delivery of stormwater services is fundamentally different to drinking water and wastewater.

29. While drinking water and wastewater services are delivered directly to the beneficiaries (that is, the person drinking the water or flushing the toilet), stormwater services have a public good element as well. When the stormwater in one area is managed, it could make other areas less likely to flood, for instance. This means that it is difficult to identify and charge the consumers of stormwater services.

30. Additionally, while drinking water and wastewater infrastructure is easily identified, stormwater infrastructure is more difficult. Stormwater systems are often integrated into roading networks, use natural topographical features, and are owned by various land holders and infrastructure providers.

31. Internationally, when stormwater systems are operated alongside drinking water and wastewater, they tend to be economically regulated.

32. The preliminary view put forward by the MBIE is that stormwater should be economically regulated, but it will be less straightforward to demonstrate that it is net beneficial.

Should the regulation apply to all providers?

33. Three waters reform is proposed to result in four main entities serving approximately 85% of the population. The remainder would be served by small community or private schemes, or through self-supply. A recent study for Taumata Arowai suggested that there could be between 75,000 and 130,000 unregistered drinking water suppliers.

34. None of these small-scale suppliers serves more than 5,000 customers. There are only three non-defense force suppliers that serve between 500 and 5,000 customers.

35. For even smaller (less than 500 customers) providers, it is likely that the owners of three waters supplier and the consumers of the services are largely the same people. Therefore, it is less critical to have a regulatory framework to ensure consumer wellbeing.

36. Since the goal of the reform is to further consumer wellbeing, these other suppliers should only be regulated if the cost of regulation is outweighed by the benefits.

37. Given the small scale and relatively high compliance costs, the MBIE has recommended that regulatory framework only apply to the new water service entities created by the Water Services Bill.

How and when should regulation be implemented?

38. To be effective, price-quality regulation requires high quality information on the assets, costs and quality of service provided by regulated suppliers. However, the Three Waters Reform Programme has found that the scope and quality of the available information is not currently at the level that would be required to implement an effective economic regulation regime.

39. Because of this information gap, it is unlikely that the regulatory regime would be operational by the time the new three waters entities are set to begin operation in 1 July 2024.

40. However, starting the new entities operations without a regulatory framework in place poses its own risk.

41. Therefore, the Government’s recommendation is that there should be a graduated approach to implementing a conventional cost-based price-quality path, with the first regulatory pricing period beginning 1 July 2027. In the interim the industry would improve its data and the regulator would work with the industry on information disclosure.

42. This interim period from 1 July 2024 through to 30 June 2027 would leave the supplies unregulated in terms of price-quality. There are two potential solutions to this gap. The first is that the regulator impose a price-quality path based on incomplete information but using its best judgment. The second option is that an interim price-quality path be implemented by government. There are significant pros and cons to each option and the MBIE is seeking feedback on this issue.

What should be the statutory objectives of the regulation regime?

43. Recently in New Zealand, regulatory regimes are set to achieve four goals.

a) there must be incentives to innovate and invest

b) there should be incentives to improve efficiency

c) that the efficiency gains must be shared with consumers

d) lastly, suppliers are limited in their ability to turn profits. This point is irrelevant to the three waters reform scenario.

44. However, there is scope for the economic regulator to have responsibility for a broader range of objectives (including issues such as climate change and Te mana o te Wai).

45. There is also a question as to how Te Tiriti o Waitangi considerations factor into the design of any economic regulatory regime for the three waters sector.

46. The MBIE seeks feedback on what the precise role of the economic regulator should be and whether it should be expanded in the ways described above.

What should compliance and enforcement look like?

47. Compliance and enforcement are essential for regulation to be effective.

48. An economic regulator’s compliance and enforcement toolkit typically includes education initiatives, warning letters, infringement offences, pecuniary penalties, enforceable undertakings, and other civil remedies such as out-of-court settlements.

49. The MBIE is seeking feedback on whether there needs to be any other tools in the toolkit.

Who should the economic regulator be?

50. To be effective, regulators need to be at arms-length from government, transparent, accountable, credible, freely share information, and act in a coordinated way with policy agencies.

51. There are three potential options for the economic regulator: Taumata Arowai, the Commerce Commission, or a new regulatory authority created specifically for economic regulation of three waters.

52. The MBIE’s multi-criteria analysis suggests that the Commerce Commission is best suited to be the economic regulator.

Do we need additional consumer protections and how are those regulated?

53. Due to the nature of the three waters sector, there may be other consumer protections required. There likely needs to be rules around the acceptable likelihood and duration of supply outages, the acceptable level of leakage from reticulated supply networks, the level of resilience to natural and man-made hazards, and the amount of innovation and efficiencies delivered to consumers.

54. These protections will be required because three waters is a natural monopoly and consumers cannot go elsewhere when unhappy with their service.

55. Importantly, the current democratic, consultation, and governance mechanisms that are provided for in the Local Government Act 2002 will not apply to the proposed new Water Services Entities. In addition, the Ombudsman’s current role in dealing with complaints about local government agencies will cease.

56. These points suggest that regulation needs to consider these angles of consumer protection above and beyond the standard roles of an economic regulator.

57. There is also a need for additional protections for vulnerable consumers. It is recommended that that there should be a positive obligation on the regulator to consider interests of vulnerable consumers, and that minimum service level requirements are flexible enough able to accommodate a wide range of approaches to addressing consumer harm and vulnerability.

58. The MBIE is seeking feedback on how the consumer protection regime could be designed in a way that contributes to equitable outcomes and mitigates unintended impacts on Māori. This includes impacts on different iwi/hapū, Māori landowners, urban Māori consumers, and rural Māori consumers. Additionally, views are sought on how the consumer protection regulator could be expected to consider Treaty obligations, and the cultural competency of the economic regulator to recognise the significance of water as a taonga for Māori.

59. As with economic regulation, a multi-criteria analysis suggests that the Commerce Commission should be the consumer protection regulator.

How should consumer disputes be resolved?

60. There are several ways that consumer disputes can be resolved.

61. The preliminary preferred option put forward by the MBIE is for mandatory provision of consumer dispute resolution services, but feedback is sought as to whether this should be achieved through a new scheme or by expanding the mandate of an existing scheme.

62. Traditionally, vulnerable populations face difficulties in accessing dispute resolution schemes. Therefore, it is important that both suppliers and the dispute resolution provider ensure that underserved and vulnerable communities can participate in processes that affect them including dispute resolution processes.

Local Board Feedback

63. While the MBIE has posed 46 questions to submitters in the discussion document, only a few are acutely relevant. The following 11 questions are the most critical for the council family to provide feedback:

a) What are your views on whether the stormwater networks that are currently operated by local authorities should be economically regulated, alongside drinking water and wastewater?

b) Do you consider that the economic regulation regime should be implemented gradually from 2024 to 2027, or do you consider that a transitional price-quality path is also required?

c) If you consider a transitional price-quality path is required, do you consider that this should be developed and implemented by an independent economic regulator, or by Government and implemented through a Government Policy Statement?

d) What are your views on how Treaty of Waitangi principles, as well as the rights and interests of iwi/Māori, should be factored into the design of an economic regulatory regime for the three waters sector?

e) Who do you consider should have primary responsibility for determining the structure of three waters prices: a. The Water Services Entity, following engagement with their governance group, communities, and consumers; b. The economic regulator; or c. The Government or Ministers?

f) Who do you think is the most suitable body to be the economic regulator for the three waters sector? Please provide reasons for your view.

g) What are your views on whether minimum service level requirements should be able to vary across different types of consumers?

h) What are your views on whether the regulatory regime should include a positive obligation to protect vulnerable consumers, and that minimum service level requirements are flexible enough to accommodate a wide range of approaches to protecting vulnerable consumers?

i) What are your views on how Treaty of Waitangi principles, as well as the rights and interests of iwi/Māori, should be factored into the design of a consumer protection regime for the three waters sector?

j) Do you agree with the preliminary view that the Commerce Commission is the most suitable body to be the consumer protection regulator for the three waters sector?

k) Do you consider that there should be special considerations for traditionally under-served or vulnerable communities? If so, how do you think these should be given effect?

64. A resolution requesting the views of local boards on the proposal is included in this report.

65. Local board views are requested by 6 December 2021 to enable those views to influence the overall submission and to be included as an attachment to the council submission.

Tauākī whakaaweawe āhuarangi

Climate impact statement

66. The discussion paper acknowledges that addressing climate change challenges and ensuring water service resilience is one of the drivers of the overall Three Waters Reform. However, the economic regulation regime is not being considered for these reasons directly.

67. The proposed economic regulation framework does not have direct impacts on greenhouse gas emissions or climate. However, it may be in the purview of the regulator to ensure consumer expectations are met with regards to environmental and climate outcomes.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

68. Relevant council departments and council-controlled organisations have been identified and contributions will be sought from them in developing the council group’s response to the Economic Regulation and Consumer Protection for Three Waters Services in New Zealand discussion paper.

69. While overall three waters reform will have a direct impact on council and council-controlled organisations, economic regulation put in place after that reform will not have any impact on council or remaining council-controlled organisations.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

70. Local board views are sought as part of the development of the council’s submission and will be reported back to Governing Body. Local board resolutions will be included as part of council’s submission.

Tauākī whakaaweawe Māori

Māori impact statement

71. The overall three waters reform is, in part, to recognise and provide for iwi/Māori rights and interests with a specific focus on service delivery. It is proposed that iwi/Māori will have a greater role in the new Three Waters system, including pathways for enhanced participation by whānau and hapū as these services relate to their Treaty rights and interests.

72. On a price-quality basis, economic regulation of the three waters industry does not directly impact on Māori any differently than other three waters services consumers. However, the overall three waters reform and specific topics within the economic regulation of three waters are likely to be of significant interest. In particular, how treaty obligations are considered, the recognition of water as taonga for Māori, and the overrepresentation of Māori in the group of consumers vulnerable to price shocks.

73. Māori outcomes leads within the council family are being consulted on these topics.

Ngā ritenga ā-pūtea

Financial implications

74. The submission can be developed within existing budget provision and as part of business-as-usual central government advocacy activity.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

75. There is little risk in making a submission on the economic regulation of three waters. Conversely, there is high risk if we do not make a submission. As the work programme progresses, staff can provide further information about the potential impacts on council’s activities.

Ngā koringa ā-muri

Next steps

76. The office of the Chief Economist is current drafting a submission on behalf of Auckland Council.

77. Staff are preparing a report for the Governing Body seeking a delegation of Governing Body members to approve the council’s submission.

78. The views of local boards on the proposal are requested by the 6 December 2021 to enable those views to influence the overall submission and to be included as an attachment to the council submission.

79. The deadline for the final submission to Government is 20 December 2021.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author	Shane Martin - Senior Economist
Authoriser	Adam Milina - Local Area Manager

No.	Title	Page
a ⇩	WRLB feedback, 9 Nov 2021 - Resource Management (Enabling Housing Supply) Amendment Bill	133

No.	Title	Page
a ⇩	Waitākere Ranges Local Board Input to Auckland Light Rail engagement July / August 2021	137

[1] Stats NZ (2020). 2018 Census data – Auckland region. Retrieved from https://www.stats.govt.nz/tools/2018-census-place-summaries/auckland-region

[2] Stats NZ (2020). 2018 Census household crowding. Retrieved from https://www.stats.govt.nz/

[3] Allpress, J. and Reid, A. (2021). Quality of Life survey 2020: results for Auckland. Auckland Council technical report, TR2021/16

[4] Māori housing grants are only available for housing developments undertaken in conjunction with an urban marae and must fill the same general purpose as papakāinga

No.	Title	Page
a ⇨	Waitākere Ranges Local Board workshop record and attachments - 28 October 2021 (Under Separate Cover)
b ⇨	Waitākere Ranges Local Board workshop record and attachments - 4 November 2021 (Under Separate Cover)
c ⇨	Waitākere Ranges Local Board workshop record and attachments - 11 November 2021 (Under Separate Cover)
d ⇨	Waitākere Ranges Local Board workshop record and attachments - 18 November 2021 (Under Separate Cover)

Chairperson	Saffron Toms
Deputy Chairperson	Greg Presland
Members	Mark Allen
	Michelle Clayton
	Sandra Coney, QSO
	Ken Turner

Author	Jenny Bramley - Democracy Advisor
Authoriser	Adam Milina - Local Area Manager

Author	Brett Lane - Local Board Advisor
Authoriser	Adam Milina - Local Area Manager