Agenda of Hibiscus and Bays Local Board - Tuesday, 28 February 2023

1 Nau mai | Welcome

2 Ngā Tamōtanga | Apologies

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

3 Te Whakapuaki i te Whai Pānga | Declaration of Interest

Members are 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.

4 Te Whakaū i ngā Āmiki | Confirmation of Minutes

That the Hibiscus and Bays Local Board:

a) confirm the ordinary minutes of its meeting, held on Tuesday 7 February 2023, as a true and correct record.

5 He Tamōtanga Motuhake | Leave of Absence

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

6 Te Mihi | Acknowledgements

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

7 Ngā Petihana | Petitions

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

8 Ngā Tono Whakaaturanga | 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 Hibiscus and Bays 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 Deputation: Estuary Arts Centre

Te take mō te pūrongo

Purpose of the report

1. Kim Boyd from Estuary Arts Centre has requested a deputation to update the local board on the Studio Three upgrade project.

2. A presentation and architect drawings have been provided and are available under Attachments A and B, respectively, of this item (under separate cover).

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) whakamihi / thank Ms Boyd for her presentation and attendance.

8.2 Deputation: Hugh Cronwright - Flooding at Stapleford Crescent and Sandiacre Way, Browns Bay

Te take mō te pūrongo

Purpose of the report

1. Hugh Cronwright from 21 Sandiacre Way, Michael Smart from 43 Sandiacre Way and Bram Horton from 140 Stapleford Crescent, Browns Bay have requested a deputation to discuss flooding concerns in Browns Bay.

2. Background information and a plan has been provided and are available under Attachments A and B, respectively, of this item (under separate cover).

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) whakamihi / thank Mr Cronwright, Mr Horton and Mr Smart for their presentation and attendance.

9 Te Matapaki Tūmatanui | 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.

9.1 Browns Bay Taiaotea Kindergarten

Te take mō te pūrongo

Purpose of the report

1. Angela Booth from Browns Bay Taiaotea Kindergarten has requested public forum time to discuss an early renewal of their lease.

2. Supporting information has been provided and is available under Attachment A of this item (under separate cover).

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) whakamihi / thank Ms Booth for her presentation and attendance.

Attachments

a 28 February 2023 - Hibiscus and Bays Local Board, Item 9.1 - supporting information.................................................................................. 107

10 Ngā Pakihi Autaia | 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.”

Hibiscus and Bays Local Board

28 February 2023

Landowner approval to install art installations and signs along the Whangaparāoa Coastal Trail

File No.: CP2023/00024

Te take mō te pūrongo

Purpose of the report

1. To seek approval of a landowner approval application from Business Whangaparāoa Inc. to install art installations and signage along the proposed Whangaparāoa Coastal Trail.

Whakarāpopototanga matua

Executive summary

2. Business Whangaparāoa Inc. is proposing to install art installations and signage along the proposed Whangaparāoa Coastal Trail.

3. The proposed signage will be 300mm high and 420mm wide. One of these signs will be placed in Matakatia Parade Reserve and one in Stanmore Bay Road Cemetery Reserve.

4. The art installations are a maximum of 1750mm high and 1720mm wide. These are proposed to be placed at Gulf Harbour Ferry Pier, Manly Park, and Whangaparāoa Library.

5. Auckland Council staff and specialists have been consulted and are supportive of the proposal.

6. The proposal is consistent with the Hibiscus and Bays Local Board Plan because it will attract visitors to the Whangaparāoa Coastal Trail and help to showcase the Whangaparāoa area.

7. Auckland Council staff recommend that the landowner application be approved by the local board. 

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) approve the application by Business Whangaparāoa Inc. to install signage and art installations along the proposed Whangaparāoa Coastal Trail at the proposed locations.

b) delegate approval of the final designs and locations to staff once received.

Horopaki

Context

8. Business Whangaparāoa Inc. are seeking landowner approval to install art installations and signage along the proposed Whangaparāoa Coastal Trail.

9. Business Whangaparāoa Inc. was created to develop and promote businesses on the Whangaparāoa Peninsula.

10. The proposed Whangaparāoa Coastal Trail is a 14km walking and cycling trail showcasing the Whangaparāoa Peninsula. It runs from Gulf Harbour Marina to the New World shops (where Penlink will come through) and can be walked or cycled in either direction or can be broken down into smaller sections by participants.

11. At each of the eight check-in points, people will be able to scan QR codes to both link to the Business Whangaparāoa Inc. website for information, history and specials, and also for augmented reality (AR) adventures.

12. The proposed Whangaparāoa Coastal Trail and the locations of signs and art installations is shown in Figure 1.

Figure 1. Proposed Whangaparāoa Coastal Trail – walking map

13. The proposed signage will be 300mm high and 420mm wide. One of these signs will be placed in Matakatia Recreation Reserve and one in Stanmore Bay Road Cemetery Reserve.

14. The art installations are a maximum of 1750mm high and 1720mm wide. These are proposed to be placed at Gulf Harbour Ferry Pier, Manly Park, and Whangaparāoa Library.

15. The art installations were chosen by Business Whangaparāoa Inc. through a submissions process. Submissions had to meet health and safety criteria.

16. Business Whangaparāoa Inc. has organised ongoing insurance for the art installations.

17. Details of the locations of signs and art installations are shown in Figures 2 to 11 in red.

Figure 2. Location of a new sign within Matakatia Recreation Reserve

Figure 3. Proposed location of the new sign within Matakatia Recreation Reserve

Figure 4. Location of a new sign within Stanmore Bay Road Cemetery Reserve

Map

Description automatically generated

Figure 5. New sign within Stanmore Bay Road Cemetery Reserve is proposed to be located on a signpost by the boat ramp

Figure 6. Location of a new art installation at Gulf Harbour Ferry pier

Figure 7. Proposed art installation at Gulf Harbour Ferry pier

Figure 8. Location of a new art installation within Manly Park

Figure 9. Proposed art installation at Manly Park

Figure 10. Location of a new art installation at Whangaparāoa Library

Map

Description automatically generated

Figure 11. Proposed art installation at Whangaparāoa Library

Tātaritanga me ngā tohutohu

Analysis and advice

Site Details

18. There are five sites in this application. There are eight locations in the Whangaparāoa Coastal Train but not all of these are located within Auckland Council land.

19. A sign is proposed to be located in Matakatia Recreation Reserve. This is located at 34 Matakatia Parade, Matakatia and is legally described as LOT 17 DP 28401. The land is held by Auckland Council in fee simple as classified recreation reserve subject to the Reserves Act 1977. The land is zoned Open Space – Informal Recreation Zone under the Auckland Unitary Plan.

20. A sign is proposed to be located in Stanmore Bay Road Cemetery Reserve. This is located at Stanmore Bay Road in Stanmore Bay and is legally described as Lot 6 DP 64710. The land is held by Auckland Council in fee simple as a classified recreation reserve subject to the Reserves Act 1977. The land is zoned Open Space – Sport and Active Recreation Zone under the Auckland Unitary Plan.

21. An art installation is proposed to be installed at Gulf Harbour Ferry Pier. This is at 1311 Laurie Southwick Parade, Hobbs Bay and is legally described as Pt Lot 1 DP 124672. The land is held by Auckland Council in fee simple under the Local Government Act 2022. The land is zoned Coastal – Marina Zone under the Auckland Unitary Plan.

22. An art installation is proposed to be installed at Manly Park. This is at 65 Laurence Street, Manly and is legally described as Lot 1 DP 148441, Part Lot 577 DP 17816 and Part Lot 6 DP 42779. Lot 1 DP 148441 is held by Auckland Council in fee simple as classified recreation reserve subject to the Reserves Act 1977. Part Lot 6 DP 42779 is held in fee simple by Auckland Council as classified recreation reserve subject to the Reserves Act 1977. The land is zoned Open Space – Informal Recreation Zone under the Auckland Unitary Plan.

23. An art installation is proposed to be installed at Whangaparāoa Library. This is at 9 Main Street, Stanmore Bay and is legally described as PT LOT 91 DP 21728. The land is held in fee simple by Auckland Council as classified Local Purpose (Community Centre Reserve) subject to the Reserves Act 1977. The land is zoned Business – Town Centre Zone under the Auckland Unitary Plan.

Proposal and Construction Details

24. The signs will be attached to existing signposts within the reserve space.

25. Some earthworks may be required for the art installations. This is because the locations may need to be flattened slightly.

26. The art installations are all mounted on plinths which, whilst heavy, have forklift slots allowing the installations to be moved at any time if required.

Tauākī whakaaweawe āhuarangi

Climate impact statement

27. Te Tāruke-ā-Tāwhiri: Auckland’s Climate Action Plan sets out two core goals:

· to reduce greenhouse gas emissions to reach net zero emissions by 2050, and 

· to prepare the region for the adverse impacts of climate change. 

28. The proposal outlined in this report does not include any change in the use of the land or activity on the land, introduce any new sources of greenhouse gas emissions and will not impact climate change.

29. The sites are not subject to other potential climate change impacts and hazards such as coastal inundation.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

30. Staff sought feedback from wider council teams about the proposal. This is detailed in the table below:

Department/Team	Feedback
Parks and Places Specialist	No concerns about the project.
Parks & Community Facilities, Facilities Manager	No concerns if signpost located next to the boat ramp in Stanmore Bay is used for signage rather than the toilet block.
Parks & Community Facilities, Senior Urban Forest Specialist	No concerns about the project.

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

Local impacts and local board views

31. In November 2022 the Hibiscus and Bays Local Board Senior Advisor was consulted by email and requested that the proposal be presented at a local board meeting.

Strategic Alignment

32. The proposal is consistent with the Hibiscus and Bays Local Board Plan (2020). In particular, it is consistent with ‘Outcome two: A strong local economy’ and ‘Outcome four: Open spaces to enjoy,’ because it is an opportunity to bring visitors to the local area and will showcase Whangaparāoa.

Tauākī whakaaweawe Māori

Māori impact statement

33. Business Whangaparāoa Inc. have been in contact with their local community marae and with Te Herenga Waka o Orewa since the inception of the proposed trail. They have been in support of this project. Historical Māori information regarding the local area was checked by Te Herenga Waka o Orewa and they have confirmed that the information is consistent with their understanding. They continue to support the project and are involved in ensuring any artworks placed on the trail are culturally appropriate.

34. Te Herenga Waka o Orewa also blessed the two start/end points of the trail where two of the new artworks will be placed. A number of local iwi also attended the blessings.

35. Business Whangaparāoa Inc. have also engaged with Ngāti Manuhiri and have provided them with details of the project.

Ngā ritenga ā-pūtea

Financial implications

36. Business Whangaparāoa Inc. have confirmed that they will maintain the installations and signage for the trail. They will also have funding available if installations are required to be moved.

37. Inspections of the trail will be undertaken every three months.

38. Business Whangaparāoa Inc. has insurance for the art installations, including public liability insurance.

39. There are no other financial implications for this matter.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

40. It is recommended that the local board approve the application, as the proposed Whangaparāoa Coastal Trail and the associated signage and art installations will attract visitors to the Whangaparāoa Coastal Trail and help showcase the area. This is in line with outcomes two and four of the Hibiscus and Bays Local Board Plan 2020.

41. There is a contingency fund available for the installations to be moved to alternative locations should the need arise, although no requirement for this is expected.

Ngā koringa ā-muri

Next steps

42. If approved by the local board, Land Advisory Services will issue a landowner approval letter with appropriate conditions.

43. If the local board declines the application, the land use advisor will advise the applicant of the decision.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Kate Burson - Land Use Advisor

Authorisers

Taryn Crewe - General Manager Parks and Community Facilities

Lesley Jenkins - Local Area Manager

Hibiscus and Bays Local Board

28 February 2023

Draft Contributions Policy 2022, Variation A

File No.: CP2023/00688

Te take mō te pūrongo

Purpose of the report

1. To seek feedback from the local board on the proposal (draft Contributions Policy 2022, Variation A) to add to the Contributions Policy 2022 projects planned to be delivered beyond 2031 to support growth in Drury.

Whakarāpopototanga matua

Executive summary

2. Development contributions are charges that recover from new developments a fair share of the cost of the council’s investment in infrastructure. To date our contributions policy has only recovered a share of cost of our infrastructure investment planned in the next ten years.

3. The council has agreed to add projects beyond 2031 to the Contributions Policy for the Investment Priority Areas identified in the 10-year Budget 2021-2031 in stages starting with Drury. This will ensure early developers pay a fair share of the cost of the cumulative impact of growth on the council’s need to invest in infrastructure.

4. The Contributions Policy 2022 was adopted in December 2021 and provides for the recovery of $399 million of the investment planned to be delivered in Drury in the period to 2031. The contributions price in Drury under this policy, including regional and sub-regional charges, is $22,564 per household equivalent unit (HUE – a house between 100m² and 249m²). We are now proposing to vary this policy to add investments we plan to deliver beyond 2031 to support development in Drury.

5. The original proposal was consulted on in late 2021 as part of the consultation on the region-wide Contributions Policy 2022. At that time, the majority of local boards were in support of the changes proposed in the draft Contributions Policy 2021

6. The Finance and Performance Committee considered the report on the proposal, which included local board views, at its meeting on 9 December 2021. The committee agreed to defer a decision on adding investment beyond 2031 to the Drury area to allow for the provision of further information requested by developers and additional time to make submissions once that information was provided.

7. The original proposal consulted on was revised accordingly and more information produced. The updated proposal included $2,470 billion of investment in Drury beyond 2031 of which $1.142 billion was to be funded by Development Contributions (DCs). This would raise the average DC price in Drury by $60,687 to $83,25. Public consultation opened on 13 September 2022 for eight weeks, instead of the usual four weeks, and closed on 8 November 2022.

8. Sixty submissions were received, 33 of which were from those in the development community. The proposal was supported by 35 per cent of all submitters with 50 percent not in support. A further 15 per cent did not clearly state their views on the proposal.

9. This report summarises the key points made in submissions and notes officers’ initial analysis of the issues raised.

10. Local board feedback is sought to inform the Governing Body’s consideration of the adoption of the proposal planned for April 2023. The report to the Governing Body will also be updated reflecting officers' final analysis of the responses to submissions, updates reflecting additional work that has been undertaken since consultation and in particular to incorporate the latest economic forecasts and recent government decisions on their investment in Drury.

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) whakaae / approve feedback from local boards on the draft Contributions Policy 2022, Variation A.

Horopaki

Context

Development contributions and infrastructure investment

11. DCs 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.

Growth and infrastructure investment

12. Auckland’s population is expected to continue to grow in the next ten years on top of the rapid population growth we have experienced in the last decade, bringing the projected population to 1.8 million early next decade. We are forecasting the construction of 145,800 new dwellings in the next ten years. To support the development enabled by the Auckland Unitary Plan, we are facing both immediate and longer-term demands for infrastructure in growth areas. If we do not adequately plan for the delivery and funding of this infrastructure, the cumulative effects of this development could lead to an unfair rates burden on future ratepayers or a risk of infrastructure shortfalls for future residents.

Drury

13. Drury-Opāheke is projected to grow by 22,000 new houses over the next thirty years. The proposal identified that an infrastructure investment of $2,869 billion will be required to support this growth. This investment will include a public and active transport led approach to transport infrastructure, parks and open spaces, and a new community facility that will include a local pool, leisure centre and library.

14. Investment in Drury will take around 30 years to deliver. The Contributions Policy 2022 only requires developers to contribute to the $399 million of investment we plan to make over the next 10 years. Without DC funding for a share of the $2.470 billion investment planned beyond 2031, there is a risk that those undertaking development will not contribute a fair, equitable, and proportionate portion of the capital expenditure necessary to service long-term growth. This risk could lead to shortfalls in the provision of infrastructure for the future residents of Drury and additional and/or additional demands on the city’s ratepayers.

Consultation 2021 and decisions

15. In 2021 the council consulted on a proposal to add investments planned to be delivered in Drury beyond 2031 to the 2022 policy and over the next year to the other Investment Priority Areas (IPAs) identified in the 10-year Budget 2021-2031. The IPAs are Inner Northwest, City Rail Link stations and Auckland Housing Programme (AHP) areas (Tāmaki, Mangere, Northcote, Oranga, and Mt Roskill). This would avoid an unfair rates burden on future ratepayers or the risk of infrastructure shortfalls for the future residents of new developments. The majority of local boards supported the original proposal.

a) The Finance and Performance Committee considered a report on the proposal at its meeting on 9 December 2021 (FIN/2021/119). The committee agreed in principle to add investments beyond 2031 to the Investment Priority Areas but deferred a decision on adding investment beyond 2031 to the Drury area. This was intended to allow the provision of more information to developers and other interested parties and allow more time for them to make further submissions with the benefit of this information.

Tātaritanga me ngā tohutohu

Analysis and advice

Updated proposal for consultation in 2022

16. In response to the council’s direction (resolution FIN/2021/119 b), staff undertook substantial additional work internally, commissioned five external expert reviews of our methodology and key economic issues, and sought expert transport planning and engineering advice on the proposed investments.

17. The original proposal consulted on was revised by updating our forecasts for the timing and location of growth within Drury and of construction costs, land price inflation, and interest rates.

18. External reviews were sought on our growth forecasting, cost estimation, and approach to calculating the share of costs to be recovered from developers. Recommendations from these reviews were applied to our calculations of the contributions charges for projects to be delivered beyond 2031 in Drury for inclusion in the proposal consulted on. These changes will also be considered for incorporation into the wider contributions policy as part of our future policy reviews.

19. Additional analysis of the distribution of the benefits of the proposed transport projects within Drury was also undertaken. The proposal consulted on allocated the transport costs to be recovered from development contributions to four new funding areas within Drury and to the relevant neighbouring areas. Adjustments were also made to neighbouring funding areas to reflect the benefits from community facilities investments, the regional transport funding area for wider transport benefits, and to the regional community facilities funding area for the library accordingly and more information produced.

20. Following completion of the work above the investments planned for beyond 2031 included in the consultation were:

a) $1.882 million in transport including arterial roads and key elements of the collector network to provide an integrated public and private transport network and active transport investment connecting Drury to the wider city (in addition to the $243 million council has already committed to invest before 2031)

b) $403 million for 43 new parks, with a total land requirement of 32.4 hectares (in addition to the $156 million council has already committed to invest before 2031)

c) $185 million for a single multi-purpose facility including a community facility, leisure centre, library, and local pool.

21. Stormwater requirements for Drury beyond 2031 will be identified and added to the contributions policy as more information becomes available on the location and form of development.

22. Of the $2.470 billion of projects, the proposal identified for delivery beyond 2031, $1.142 billion was proposed to be funded by developers through our contributions policy. This additional revenue requirement would raise the contributions price for Drury by an average of an additional $60,687, per household equivalent unit (HUE) to a total of on average $83,251 per HUE. Different charges would apply to different geographical areas based on the benefits accruing to each area.

Consultation

23. Public consultation opened on 13 September 2022 for eight weeks and closed on 8 November 2022. Additional information provided included 13 documents and two spreadsheets to allow submitters to better understand the proposal. These can be found on the council’s Have Your Say (HYS) page.

24. During the consultation period, those from the development industry requested further information and in response the following additional materials were provided:

· transport cost estimates for Drury. Further details on individual construction cost elements for transport projects

· growth and HUE forecast. Spreadsheet outlining data used to forecast growth.

25. Around 336 stakeholders were directly approached to advise them of the consultation. A media release was issued, and an article appeared in Our Auckland at the start of the consultation period. The consultation was also promoted through the council’s Engagement and People’s Panel newsletters. Forty-four people participated in the Have Your Say events held to support the consultation.

26. Two online and two face-to-face HYS events were held. Staff also attended a drop-in session in Drury organised by Waka Kotahi, two meetings organised by Drury developers, and a session organised by the Property Council of New Zealand. There were 44 attendees across all events representing 39 organisations. Officers also provided briefings to Waka Kotahi and the Ministry of Housing and Urban Development.

27. An opportunity for developers to present their submissions directly to the Governing Body at a HYS event was provided on 14 December 2022. Developers were given a ten-minute slot with five minutes for their presentation followed by 5 minutes for questions from the decision-makers. The mayor and 16 councillors heard presentations from 14 organisations at the session.

Feedback and Analysis

28. Sixty submissions were received. Overall, the proposal was supported by 35 per cent of submitters with 50 percent opposing it. A further 15 per cent did not clearly state their support or otherwise to the proposal. Key themes raised in the submissions are identified below. The submissions received in the consultation are available to elected members on the council’s meeting management system Nexus.

29. Twenty six individuals and one Māori organisation provided feedback. Of these, 69 per cent were in support of this proposal, 15 per cent did not support the proposal while the views of 15 per cent of submitters were not clearly stated.

30. Eleven of the individuals who supported the proposal commented that it was fair that developers should pay their fair share towards infrastructure. Those who did not state their support or otherwise thought that the council should support infrastructure development.

31. Thirty three responses were from those in the development industry. Responses from the industry show that 79 per cent opposed the proposal, six per cent supported it and 15 per cent did not state a clear view. Key themes from the developers’ feedback are outlined below.

Impact of higher development contributions

Feedback

32. Developers’ submissions noted the following concerns that higher DCs will:

· lead to higher house prices as developers seek to recover the increased costs. Developers who had already purchased land commented that they will be particularly disadvantaged as the increased DCs have not been included in the costs of their development

· lead to Drury being treated unfairly in relation to the rest of the city with much higher DCs

· discourage the construction of affordable housing as developers seek to recover higher costs with more expensive developments

· redirect development from Drury to other areas of the city with lower DC prices. Lower DCs are charged in wealthy established central parts of the city where infrastructure is already in place whereas incoming residents to Drury, where affordable housing can be built, are less able to afford higher DCs

· encourage land banking in Drury until house prices rise further or the policy changes.

Analysis

33. For developers who have purchased land recently higher DCs will put pressure on their margins. While staff acknowledge the impact a substantial increase in contributions charges is required if developers are to meet a fair share of cost of the investments required to support Drury’s development. The DCs charged in Drury will be higher than those in other parts of the city but this will reflect the council’s commitment to invest in infrastructure in Drury.

34. In feedback received from the original consultation, developers expressed concern about the equity of charging them now for investments that wouldn’t be delivered until the next decade. Our independent expert advice confirms the council’s previously presented analysis: that while the physical infrastructure wouldn’t be delivered until later, current landowners still benefit from the commitment to deliver in terms of higher land values. Furthermore, development occurring during the early years of this policy still contributes to the need for planned capital expenditure that will be incurred beyond 10 years’ time.

35. The independent economic consultants were asked for their views on the equity of our proposal to consider the likely impact of the proposal on house prices, and the viability of development in Drury. The consultants concluded that while the DC price will lower the price developers are willing to pay for land, this reduction is much lower than the increase in land value arising from the planning changes that enable housing development. There may be an indirect effect on the sequence of sites getting taken up for new housing across the city in the short term as development adjusts around a new equilibrium. However, this will be small relative to other market factors. Higher DCs may be an additional cost to development and could be argued to increase the return to holding land undeveloped however, earlier delivery of infrastructure funded by DCs is likely to accelerate development. The full report was included in the supporting documents pack released as part of the consultation process.

Complexity with a 30-year time frame

Feedback

36. Comments were provided on the accuracy of information on infrastructure requirements planned over a 30-year timeframe, including the assurance that revenue collected today will be used for future investment in infrastructure. Other comments from submitters include:

· possibility that infrastructure will not be needed resulting in over collection of DCs

· impact of inflation on delivery of projects over time adds complexity

· complexities arise around the accuracy of the price of infrastructure over a 30-year timeframe creating uncertainty. For example, when trying to estimate things such as inflation, delivery risks, costs of infrastructure, and future infrastructure demand over a 30-year period

· doubt that benefits will be received by early developers

· actions the council will have to take to ensure money collected today will be spent on delivery of the projects over 30-year period

· it is not clear what happens to the initially unspent portions of development contributions paid, but intended to fund works that are 1, 2 or 3 decades in the future.

Analysis

37. Forecasting capital expenditure over a 30-year horizon inevitably involves a higher degree of uncertainty than capex over the horizon of the 10-year Budget 2021-2031. However, the Local Government Act 2002 allows for development contributions to be recovered to fund capital expenditure to be incurred beyond the Long-term Plan period (10 years). The council may also vary the mix of projects for which development contributions will be used if there is a relevant change of circumstances relating to those projects, and the overall level of contribution does not increase.

38. Our contributions policy is reviewed every three years to ensure that our planned infrastructure investment continues to meet the need of the developing community and is appropriately costed using the latest available information. This enables us to respond to changing circumstances, while ensuring that our charges remain fair for developers.

Consideration of other sources of funding

Feedback

39. Several submitters considered the council should have given more consideration to alternative funding mechanisms before deciding to impose DCs. Submitters noted the council:

· has not demonstrated sufficient consideration of alternative funding methods such as Infrastructure Funding and Financing through the Crown Infrastructure Partners

· should consider the use of other funding and financing tools – such as targeted rates, congestion charging, Special Purpose Vehicles through the Funding and Financing Act and Specified Development Areas through the Urban Development Act – alongside DCs

· should consider using targeted rates to cover the costs of infrastructure that cannot easily be identified with sufficient certainty, subject to these rates being ringfenced for sole use on infrastructure to facilitate growth in the specific area in which the targeted rate applies.

Analysis

40. The council’s Revenue and Financing Policy notes that at present DCs will be used to fund growth infrastructure. However, the Revenue and Financing Policy also makes provision for the use of other tools such as targeted rates and would also allow the use of levies under the Infrastructure Funding and Finance Act. All these tools have the same effective revenue for the council and cost for developers and landowners (the net present value is the same) but are triggered at different times.

41. These options remain open to the council and can be used in combination with development contributions. The first step under any of these options is to establish the investments required to support growth in the IPAs and the appropriate share to be recovered from developers or landowners. All tools need to be applied early in the process to ensure early developments pay their share. The potential application of these funding tools will be considered in the advice to council in April.

Accuracy and assumptions used in the model

Feedback

42. Comments were provided on the accuracy of information on infrastructure requirements planned over a 30-year timeframe, including the assurance that revenue collected today will be used for future investment in infrastructure. Submitters also noted:

· concern that the costings for the various projects incorporate excessive assumptions in respect of construction cost, contingency funding cost, and general inflation

· the recent plan changes which have not been considered

· the model includes invalid assumptions concerning developer funded mitigation works and DC funded works, likely to lead to double dipping and over-recovery.

43. Comments on projects were also provided:

· the new policy encourages the council to design projects that are “gold plated” and have higher initial capital expenditure

· changes in transport patterns (e.g., mode share, e-bike subscriptions and sharing platforms) will influence future transport requirements

· the full list of transportation projects arrived at by Supporting Growth Alliance has never been justified as being required to mitigate the effects of development in Drury East

· an independent audit of the proposed projects and their intended scale is requested to help ascertain how much of the increased cost relates to local rather than general factors

· the policy projects listed assumes that the council will purchase land from developers when in practice it is likely to require the land and infrastructure on it to be vested without charge or at a discount rate pursuant to the consent process will not incur these costs.

Analysis

44. A formal review was undertaken of the methodology the council uses to set DC charges. To do this, three external advisors were contracted to review our methods for growth forecasting, cost estimation, and how we assess the beneficiaries that underpin the DC charge calculations.

45. The feedback from our earlier consultation, the recommendations of these reviews, and our updated data models have allowed the DC calculation methodology to be refined to better suit the specific circumstances of Drury. The financial models were updated following a review conducted in November 2021. No errors in logic or in the functionality were identified in a review conducted in November 2022.

Updates to proposal

46. Further analysis of the feedback raised by developers will be presented to the Governing Body for decision making, planned for April 2023 and will include potential changes to the proposed amendment. Officers are in the process of updating the proposal to incorporate further work we have undertaken since consultation concluded to:

· respond as appropriate to issues raised in submissions including in the key areas noted below

· refine the projects and project costings in the proposal including

o estimates of developer mitigation - roading investments that developers will be required to provide as a condition of consent

o property costing

o investment decisions by the government

o community facilities funding areas

o transport funding areas.

· update the forecasts of the following factors to reflect the latest economic conditions and predictions:

o growth in the Drury area – reflecting recent plan change decisions

o interest rates

o construction cost inflation

o land price inflation.

Compliance

47. Some submitters expressed a view that the proposal is not legally compliant and that there may be a case for a judicial review. Staff advice on the Contributions Policy is given in the context of highly prescriptive provisions of the Local Government Act 2002 (LGA) which cover the content of a contributions policy and the assessment of contributions. These provisions are the only source of the council’s power to require development contributions and must be strictly complied with.

48. Staff have reviewed the proposal and will consider the matters raised in submissions giving consideration to the legislative requirements in the LGA, including specific content requirements for development contributions policies, and the council’s Revenue and Financing Policy.

Tauākī whakaaweawe āhuarangi

Climate impact statement

49. 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

50. The information presented on the projects included in the draft Contributions Policy 2022, Variation A was developed in conjunction with the following council-controlled organisations and council units:

· Auckland Transport

· Community Facilities

· Community and Social Policy.

51. The Chief Economist Unit and Research Investigations and Monitoring Unit worked with us on growth and economic forecasts, 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

52. The Drury funding area in the proposal is within the Franklin and Papakura local board areas. The recommendations in this report support a higher level of infrastructure investment in the Drury area and sets a higher DC price in this area.

53. Local board feedback is sought to inform the Governing Body’s consideration of the adoption of the Contribution Policy 2022, Variation A in April 2023.

Tauākī whakaaweawe Māori

Māori impact statement

54. Development contributions are assessed against the demand that different types of development generate on council infrastructure. Māori developments are assessed under broader development types based on the demand they generate. For example, kaumātua housing is treated the same as retirement villages, and marae are considered under community facilities. As more Māori developments occur, evidence of demand generation can be used to reclassify developments or create new development types.

55. Eleven iwi authorities (with mana whenua interests) in the Drury area were contacted prior to the start of consultation to seek expressions of interest in discussing and providing feedback on the proposed changes. All iwi authorities were also notified when consultation opened, further advising of how they could have their say. Opportunities to present to the Mana Whenua forum, the Independent Māori Statutory Board and other council forums were explored, however, this topic was not seen as a priority area at the time. One response supporting this proposal was received from mana whenua who considered this was a fairer way to fund the required infrastructure.

Ngā ritenga ā-pūtea

Financial implications

56. There are no financial implications from requesting local boards views.

57. The proposal provides for additional investment by the council beyond 2031 to support growth in Drury of $2.470 billion. The draft Contributions Policy, Variation A provides for $1.142 billion of this investment to be funded by DCs.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

58. The recommendation requesting local board views does not present any risk. The risks associated with amending the contributions policy will be set out in the report to the Governing Body planned for April 2023.

Ngā koringa ā-muri

Next steps

59. Feedback from the public consultation will be reported to the Governing Body in February 2023.

60. Staff will provide advice, options and responses to the issues raised in the feedback to the Governing Body to assist in their decision making.

61. A decision-making report to the Governing Body is planned for April 2023 and will include potential changes to the draft policy and local board feedback.

62. All local board feedback is due on 3 March 2023.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Andrew Duncan - Manager Financial Policy

Authorisers

Carol Hayward - Team Leader Operations and Policy

Louise Mason - General Manager Local Board Services

Hibiscus and Bays Local Board

28 February 2023

Auckland Council's Performance Report: Hibiscus and Bays Local Board for quarter two 2022/2023

File No.: CP2023/01600

Te take mō te pūrongo

Purpose of the report

1. To provide the Hibiscus and Bays Local Board with an integrated performance report for quarter two, 1 October – 31 December 2022.

2. To seek the approval to re-allocate budget underspends confirmed in the 2020/2021 and 2022/2023 financial years to operational grants for Centrestage Theatre and Estuary Arts Centre within the Hibiscus and Bays Local Board 2022/2023 Customer and Community Services Work Programme.

Whakarāpopototanga matua

Executive summary

3. This report includes financial performance, progress against work programmes, including re-allocations, key challenges the local board should be aware of and any risks to delivery against the 2022/2023 Hibiscus and Bays Local Board Work Programme (resolution number HB/2022/80).

4. The key activity updates from this period include (but are not limited to):

· ID 24085 Ōrewa Library - comprehensive renewal including roof: preliminary architectural design work is underway

· ID 189 Event partnership fund Hibiscus and Bays: events held this quarter include Brands by the Beach (Destination Ōrewa), Ōrewa Christmas Parade, Ōrewa Surf Sounds, Browns Bay Christmas Parade, and Sir Peter Blake Regatta

· ID 1417 Supporting business associations - BID establishment: Silverdale Business Association continues with their Business Improvement District establishment activities including stakeholder engagement and communications, information sharing and providing opportunities to demonstrate the value of a future Business Improvement District

· ID 1045 HB: Local parks ecological volunteers and environmental programme FY23: over 2,000 volunteer hours have been recorded this quarter. Ongoing restoration work including weed and animal pest control continues at key sites. Several one-off clean-up events have taken place.

5. All operating departments with agreed work programmes have provided an update against their work programme delivery. Activities are reported with a status of green (on track), amber (some risk or issues, which are being managed) or grey (cancelled, deferred, or merged). The following activity is reported with a status of red (behind delivery, significant risk):

· ID 694 HB: Te Kete Rukuruku (Māori naming of parks and places) Tranche Two

6. Auckland Council currently has a number of bonds quoted on the NZ Stock Exchange. As a result, the council is subject to obligations under the Main Board & Debt Market Listing Rules and the Financial Markets Conduct Act 2013 sections 97 and 461H. These obligations restrict the release of half-year financial reports and results until the Auckland Council Group results are released to the NZ Stock Exchange on or about 28 February 2023.

Due to these obligations the financial performance attached to the quarterly report is excluded from the public.

7. The Customer and Community Services capex budget has been revised to incorporate delayed delivery or earlier commencement of individual projects or other changes that are of material value.

8. This report is also seeking approval from the local board for the re-allocation of $2,800 from work programme line 691: local contestable grants and facilities grant within the 2020/2021 community services work programme and $10,000 from line 186: local civic events within the 2022/2023 customer and community services work programme to lines 172: operational grant top up to Centrestage Theatre and 182: operational grant top up to Estuary Arts Centre within the 2022/2023 customer and community services work programme.

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) receive the performance report for quarter two ending 31 December 2022

b) note the financial performance report in Attachment B of the agenda report will remain confidential until after the Auckland Council Group half-year results for 2022/2023 are released to the New Zealand Stock Exchange, which are expected to be made public on or about 28 February 2023

c) approve the re-allocation of $2,800 from work programme line 691: local contestable grants and facilities grant within the Hibiscus and Bays Local Board 2020/2021 Customer Services Work Programme and $10,000 from line 186: local civic events within the Hibiscus and Bays Local Board 2022/2023 Customer and Community Services Work Programme to lines 172: Operational grant top up to Centrestage Theatre and 182: operational grant top up to Estuary Arts Centre within the Hibiscus and Bays Local Board 2022/2023 Customer and Community Services Work Programme

d) approve a delegation to the local board chairperson for making any further re-allocations of budget underspends confirmed in the 2022/2023 Hibiscus and Bays Local Board 2022/2023 Work Programme to operational grants for community organisations, including Estuary Arts Centre and Centrestage Theatre.

Horopaki

Context

9. The Hibiscus and Bays Local Board has an approved 2022/2023 work programme for the following operating departments:

· Customer and Community Services

· Infrastructure and Environmental Services

· External Partnerships: Business Associations.

10. The graph below shows how the work programme activities meet local board plan outcomes. Activities that are not part of the approved work programme but contribute towards the local board outcomes, such as advocacy by the local board, are not captured in this graph.

Graph 1: Work programme activities by outcome

Tātaritanga me ngā tohutohu

Analysis and advice

Local Board Work Programme Snapshot

11. The graph below identifies work programme activity by RAG status (red, amber, green and grey) which measures the performance of the activity. It shows the percentage of work programme activities that are on track (green), in progress but with issues that are being managed (amber), and activities that have significant issues (red) and activities that have been cancelled/deferred/merged (grey).

Graph 2: Work programme by RAG status

12. The graph below shows the activity status of activities which shows the stage of the activity in each departments the work programmes. The number of activity lines differ by department as approved in the local board work programmes.

Graph 3: Work programme by activity status and department

Chart, waterfall chart

Description automatically generated

Key activity updates

13. Key updates in the delivery of the local board work programmes for quarter two include:

i) ID 31869 Hibiscus and Bays – modular pump track relocation: the pump track has been moved from Freyberg Park to Ridgeline Park in Long Bay on 20 October 2022 and will remain there until April/May 2023 when it will be moved to Metro Park East

ii) ID 26400 Hibiscus and Bays - settlement stories signage: Parks and Community Facilities project team are collaborating with Connected Communities to plan locations and options for context of these signs

iii) ID 24381 Silverdale War Memorial Park - renew park assets: construction of footpath renewal and bollard replacement alongside the car park and Men's shed is complete

iv) ID 1019 HB: Centennial Park Bush Society grant allocation: approximately 300 volunteer hours have been recorded this quarter. Working bees on Wednesdays are all well supported and there are 10-80 volunteers in attendance once a month on the weekend. The track network has received improved drainage and new metal. New dogs 'on leash' signs from Community Facilities are in the process of being installed

v) ID 28131 Hibiscus Coast Community House - renew roof and spouting: the building consent has been granted

vi) ID 28190 Waiake Beach Reserve – remediate boardwalk and storage shed: a consultant has been engaged to prepare the design for the remediation of the boardwalk, removal of the shed, support for the Pohutukawa limbs and planning for the new shed

vii) ID 572 Eco-Neighbourhoods Hibiscus and Bays: there are currently 11 Eco-Neighbourhood groups, and some community interest in establishing new groups. In this quarter, Millwater Eco-Neighbourhood organised another bike maintenance check and collected and rehomed an average of 1.4 ute loads of goods per week otherwise destined for the inorganic collection. Ōrewa Eco-Neighbourhood have formalised their site agreement and made extensive progress on physical works including new raised beds, worm farms, and water tanks. They have 180 members. Hatfields Beach Eco-Neighbourhood have run four more Otānerua Reserve working bees, including weed control and Wai Care tests on the stream. Browns Bay Eco-Neighbourhood hosted the Browns Bay Chinese Society for parts two and three of a food growing and zero waste workshop. Stillwater has finalised pricing and measuring up to install rain-fed water barrels for their community garden. Mairangi Bay Eco-Neighbourhood is designing and building a produce sharing stand to complement their edible garden

viii) ID 184 Citizenship ceremonies Hibiscus and Bays: the Civic Events team delivered three citizenship ceremonies this quarter, with 361 people from the local board area becoming new citizens.

ix) ID 185 Subsidy for use of Ōrewa Community Centre: the allocation of the subsidy has changed based on the allotted budget $5,000). The following has been allocated accordingly: Hibiscus Coast Senior Citizens Club ($4,261.45) and Hibiscus Coast Country Music Club Inc. ($738.55).

Activities on hold

14. The following work programme activities have been identified by operating departments as on hold:

· Hibiscus and Bays - deliver Centre Plan improvements. This project is on hold until future years.

Changes to the local board work programme

Deferred activities

15. There is one activity that is deferred from the 2022/2023 work programme:

· ID 694 HB: Te Kete Rukuruku (Māori naming of parks and places) Tranche Two: signage was installed at Whenua-roa / D'Oyly Reserve. Awaiting interpretive text which is now expected in March 2023. Tranche two names will not be delivered this financial year due to Tranche 1 site naming delays and will be workshopped with the local board in March 2023.

Activities with changes – reallocation requests

16. The Hibiscus and Bays Community Services Work Programme for financial year 2020/2021, as approved by the local board at its June 2020 business meeting, reflects a total of $552,395 Locally Driven Initiatives operational budget (LDI opex) allocated to line 691: local contestable grants and facilities grant for the contestable grants programme (resolution HB/ HB/2020/103).

17. Staff have been made aware of one grant recipients’ inability to deliver their project within the 2020/2021 and 2021/2022 financial year and a refund of $2,800 has been received from the Kahikatea Music Therapy and Community Arts Trust.

18. The Hibiscus and Bays Customer and Community Services Work Programme for financial year 2022/2023, as approved by the local board at its June 2022 business meeting, reflects a total of $10,000 LDI opex allocated to line 186: local civic events for the delivery of local events (resolution HB/2022/80).

19. Staff proposed civic opening events for capital works renewal projects within the Parks and Community Facilities work programme by way of memo to the local board in November 2022 and feedback from local board members was received not to go ahead with these events as a matter of spending prudency as they are not new assets.

20. Staff have identified line 172: operational grant top up to Centrestage Theatre and 182: operational grant top up to Estuary Arts Centre for re-allocation and recommend tagging this funding towards the operational costs for the next financial year (2023/2024).

21. There is significant risk that LDI opex budgets will be reduced next financial year and this re-allocation mitigates the risk of serious impact to these key community groups financial viability should the local boards budget constraints lead to full or partial cuts to operational top ups in FY2023/2024.

22. The local board provides asset-based service (ABS) funding to Mairangi Bay Arts Centre, Estuary Arts Centre and the Centrestage Theatre within their annual work programme. To ensure equitable funding for all three service groups, the local board provides Estuary Arts Centre and Centrestage Theatre with additional LDI operational top up funding (shown in table 1) to cover disparities of total funding for these groups. Centrestage Theatre is a privately owned building, whereas the arts centres are council owned assets.

Table 1: Arts Centers and Theatres funding lines within the local board work programme 2022/2023

Work programme	Activity Description	2022/2023
ID 171	Operational grant to the Mairangi Arts Centre	ABS $88,685
ID 170	Operational grant to the Estuary Arts Centre	ABS $17,541
ID 182	Operational grant top up to Estuary Arts Centre	LDI $50,000
ID 169	Operational grant to Centrestage Theatre	ABS $22,817
ID 172	Operational grant top up to Centrestage Theatre	LDI $30,000

23. Staff recommend delegating approval to the local board chairperson should there be further re-allocations of budget underspends confirmed in the 2022/2023 Hibiscus and Bays Local Board Work Programme to operational grants for community organisations, noting that the exact amounts awarded to organisations in the re-allocatin of funds be made proportionately based on the current financial years totals (i.e. Centrestage Theatre up to a maximum of $30,000, and Estuary Arts Centre up to a maximum of $50,000).

Tauākī whakaaweawe āhuarangi

Climate impact statement

24. Receiving performance monitoring reports will not result in any identifiable changes to greenhouse gas emissions.

25. Work programmes were approved in June 2022 and delivery is underway. Should significant changes to any projects be required, climate change impacts will be assessed as part of the relevant reporting requirements. Any changes to the timing of approved projects are unlikely to result in changes to emissions.

26. The local board has invested in several sustainability projects, which aim to build awareness around waste management, water harvesting, pest control, and changing behaviours at a local level. These include:

· ID 480: Restore Hibiscus and Bays Coordinator

· ID 64: Pest Free Hibiscus Coast

· ID 721: Zero Waste Early Childhood Education Programme

· ID 572: Eco-Neighbourhoods Hibiscus and Bays

· ID 65: Pest plans on private land Okura

· ID 724: Ko te wai he taonga: Water is a treasure

· ID 1113: Taonga tuku iho - Legacy - we preserve our past, ensure our future (environment) Hibiscus and Bays.

27. The proposed work programme reallocation does not impact on the increase of greenhouse gas emissions.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

28. When developing the work programmes council group impacts and views are presented to the boards. As this is an information only report, there are no further impacts identified.

29. Relevant departments within Auckland Council have been consulted regarding the re-allocations and no objections or concerns have been raised by delivery staff.

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

Local impacts and local board views

30. This report informs the Hibiscus and Bays Local Board of the performance for quarter two for ending 31 December 2022.

31. The re-allocation of funding within the local board’s work programme supports strong delivery and optimisation of the local board’s available budget for FY2022/2023.

32. The nature of the re-allocation aligns with the local board’s work programme and the Hibiscus and Bays Local Board Plan 2020.

Tauākī whakaaweawe Māori

Māori impact statement

33. The Hibiscus and Bays Local Board Plan 2020 provides a commitment framework through the development of initiatives that respond to Māori aspirations. The following activities have a Māori outcome focus:

· ID 507: Te Ao Māori and community led conservation

· ID 174: Māori responsiveness Hibiscus and Bays

· ID 694: Te Kete Rukuruku (Māori naming of parks and places) tranche two

· ID 1105: Whakatipu i te reo Māori - we grow the Māori language Celebrating te ao Māori and strengthening responsiveness to Māori - Hibiscus and Bays

· ID 175: Apply the Empowered Communities Approach – connecting communities Hibiscus and Bays.

Ngā ritenga ā-pūtea

Financial implications

34. This report is provided to enable the Hibiscus and Bays Local Board to monitor the organisation’s progress and performance in delivering the 2022/2023 work programmes.

35. Re-allocation of funding is regarded as a prudent step for the local board to take in order to optimise the locally driven initiatives (LDI) opex budget each financial year.

36. Should the local board choose not to support the re-allocation of funding, additional conversations will take place and a new re-allocation report will come to the local board at a future date.

Financial Performance

37. Auckland Council (Council) currently has a number of bonds quoted on the NZ Stock Exchange (NZX). As a result, the council is subject to obligations under the NZX Main Board & Debt Market Listing Rules and the Financial Markets Conduct Act 2013 sections 97 and 461H. These obligations restrict the release of half-year financial reports and results until the Auckland Council Group results are released to the NZX on 28 February 2023.

Due to these obligations the financial performance attached to the quarterly report is excluded from the public.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

38. While the risk of non-delivery of the entire work programme is rare, the likelihood for risk relating to individual activities does vary. Capital projects for instance, are susceptible to more risk as on-time and on-budget delivery is dependent on weather conditions, approvals (e.g., building consents) and is susceptible to market conditions.

39. Information about any significant risks and how they are being managed and/or mitigated is addressed in the ‘Activities with significant issues’ section.

40. There is a risk if the re-allocation of $10,000 budget from line 186: local civic events within the 2022/2023 customer and community services work programme, and the $2,800 from line 691: local contestable grants and facilities grant within the 2020/2021 community services work programme is not approved the local board will need to re-allocate this funding in quarter three reducing the available project delivery time, i.e. delivery before the end 2022/2023 financial year.

Ngā koringa ā-muri

Next steps

41. The local board will receive the next performance update following the end of quarter three, 31 March 2023.

Ngā tāpirihanga

Attachments

No.	Title	Page
a ⇨	Hibiscus and Bays Local Board Work Programme 2022/2023 (Under Separate Cover)
b ⇩	Hibiscus and Bays Local Board Operating Performance Financial Summary - Confidential

Ngā kaihaina

Signatories

Author	Saskia Coley – Local Board Advisor
Authoriser	Lesley Jenkins - Local Area Manager

No.	Title	Page
a⇨	Te Pūrongo a Te Kaunihera o Tāmaki Makaurau Ngā Huanga Māori 2021/2022 - Auckland Council Group Māori Outcomes Report 2021-2022 (Under Separate Cover)

Hibiscus and Bays Local Board

28 February 2023

Local board feedback on the draft Future for Local Government report

File No.: CP2023/01775

Te take mō te pūrongo

Purpose of the report

1. To seek feedback from local boards on the draft report released by the Future for Local Government Review Panel.

Whakarāpopototanga matua

Executive summary

2. The Future for Local Government Review Panel released its draft report for consultation on 28 October 2022.

3. Auckland Council is preparing a submission in response to the draft report. Submissions close on 28 February 2023.

4. The draft report makes 29 recommendations on a wide range of areas including: revitalising citizen-led democracy, achieving Tiriti-based partnership between Māori and local government, the approach to allocating roles and functions across different players, achieving genuine partnership between central and local government, more equitable funding, designing a local government system to enable the change we need, and putting in place effective system stewardship.

5. Auckland Council has previously reached positions on some of the draft report’s recommendations through programmes of work or engagement with central government. These positions will be the starting point for preparing the submission but there will be an opportunity for this council to reconsider those positions.

Ngā tūtohunga

Recommendation/s

That the Hibiscus and Bays Local Board:

a) provide feedback on the draft report to inform the council’s draft submission.

Horopaki

Context

6. The Minister for Local Government established the Future for Local Government Review (the Review) in April 2021 and established a Review Panel (the Panel). The purpose of the Review is to identify how our local democracy and governance system needs to evolve over the next 30 years, to improve the wellbeing of communities and the environment and to actively embody the Treaty partnership.

7. The Panel released its Interim Report in October 2021. The case for change described a local government under pressure without all the levers needed to deliver on community wellbeing. The sector therefore needs to work collaboratively with others including central government, iwi/Māori organisations, the business sector and community groups. It noted that trust had broken down and that there is a need for greater understanding between central government and local government.

8. The Panel released its Draft Report He mata whāriki, he matawhānui on 28 October 2022. The Draft Report (the Report) can be found at: https://www.futureforlocalgovernment.govt.nz/reports/

9. The Report makes 29 recommendations and asks a range of questions intended to inform the Final Report to the Minister.

10. The Panel states that we are in a period of change (climate change, pandemics, biodiversity loss, social and economic inequity). This is causing many of our communities to lose trust in democratic institutions and to disengage. Government reform is creating further uncertainty for the role of local government in communities.

11. The challenges facing Aotearoa New Zealand are too big for central government to address alone. Local government has a fundamental role to play in responding to these complex issues and improving the wellbeing of communities. This will require renewal and change (shifts) to many aspects of the local government system.

12. The Panel previously indicated five shifts are needed to make this change: strengthened local democracy, authentic relationships with hapū/iwi and Māori, a focus on wellbeing, genuine partnership between central and local government, and more equitable funding. Two additional shifts – system design and stewardship – will also need to be considered.

13. The Report sets out recommendations and asks questions in relation to: revitalising citizen-led democracy, Tiriti-based partnership between Māori and local government, allocating roles and functions, local government as champion and activator of wellbeing, replenishing and building on representative democracy, and equitable funding and finance.

14. Following the release of the Report, the Review Panel undertook a further round of engagement with the local government sector across New Zealand. This included three in-person sessions with local board members in Auckland on 5 and 6 December 2022.

15. The Governing Body has approved the preparation of an Auckland Council submission in response to the Report. Submissions are due by 28 February 2023.

16. The Panel’s Final Report is due with the Minister by June 2023. Any response to the Panel’s final recommendations will be a decision for the next government.

Tātaritanga me ngā tohutohu

Analysis and advice

17. The purpose of the Review is highly relevant to local government and Auckland Council.

18. Some recommendations in the Report are of a functional order (e.g. allocation of roles), some more foundational (e.g. Te Tiriti based partnerships) and some about the ‘system’ we work within. The Report does not necessarily set out all the relationships/interdependencies between the components.

19. It is proposed that the council’s submission draws these connections where possible to ensure there is a clear understanding of how all elements of the future system will work together and potential impacts and risks. Council should also seek further clarity on the future funding framework for local government and the pathway to build the required capability and capacity to carry out its future role.

20. The council has formed positions in previous terms on a number of recommendations contained in the Report. These will be the starting point for preparing the submission but there will be an opportunity for this council to reconsider those positions through the drafting process.

Tauākī whakaaweawe āhuarangi

Climate impact statement

21. The Report acknowledges that councils have a significant role in mitigating and adapting to climate impacts in their areas. It also notes that the future climate challenge for local government is likely to be greater than the challenge it has faced over the past 30 years to address the infrastructure deficit.

22. Current funding streams to manage the impacts of climate events are already being challenged, placing many communities at risk and requiring a long-term approach to addressing these issues. The sums involved to mitigate and respond to climate effects are likely to be significant.

23. Accordingly, the Report recommends (recommendation 23) that central government develops an intergenerational fund for climate change, with the application of the fund requiring appropriate regional and local decision-making input.

24. In its submission on the Draft National Adaptation Plan earlier this year, Auckland Council argued that central government funding is crucial and must have a long-term focus.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

25. CCO chairs and chief executives have been provided with a summary and high-level analysis of the Report.

26. CCO staff are included in the experts across the council group who will develop the council’s submission for approval.

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

Local impacts and local board views

27. The Report proposes that putting wellbeing at the core of council’s purpose and its roles and functions will unlock greater wellbeing outcomes for communities. Councils have an opportunity to strengthen and expand their role in three key ways: as anchor institutions, place-makers, and systems networkers and convenors.

28. The Report also proposes a framework to guide the allocation of roles and functions between different actors: central government, local government, hapū/iwi and community. The framework starts with a local-first approach (the subsidiarity principle) and is guided by te ao Māori values.

29. The Panel has engaged with local board members over the course of the Review in July 2021, March 2022 and most recently on 5 and 6 December 2022 through three separate in-person sessions held across Auckland.

30. Local board views on the Report are sought and will be incorporated into the council’s submission as appropriate. Formal local board feedback will be appended to council’s submission.

Tauākī whakaaweawe Māori

Māori impact statement

31. A finding of the Review is that the system needs to ensure a more meaningful expression of rangatiratanga and a more culturally specific exercise of kāwanatanga by councils, with te ao Māori values reflected at all levels of the system.

32. In response, the Report proposes fundamental changes to Te Tiriti o Waitangi provisions of the Local Government Act 2002, a strategic role for Māori in identifying and addressing priority outcomes that will lift community wellbeing, as well as strengthened specific mechanisms for partnership and engagement (including the incorporation of tikanga Māori).

33. It also proposes improvements to Māori representation at the council table, and a concerted investment in the capability and capacity of both local government and Māori to build and maintain a Tiriti-based partnership in local governance.

34. Staff have engaged with iwi on the system shifts proposed by the Panel at earlier stages in the Review process. Now that the Report has been released, iwi have been asked for their views to be considered for inclusion in council’s submission.

35. There has been ongoing engagement with IMSB staff on the Review and they will have an opportunity to review the council’s submission.

Ngā ritenga ā-pūtea

Financial implications

36. The submission will be developed within existing resources.

37. The recommendations of the Review Panel are multi-faceted and there is insufficient information to anticipate or quantify financial implications for the council.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

38. No risks have been identified in relation to preparation of council’s submission.

Ngā koringa ā-muri

Next steps

39. Staff are drafting a submission for the Governing Body’s approval at its meeting on 23 February 2023.

40. There will be a briefing on the Draft Report for local board members on 23 January 2023.

41. Local board views to be considered for incorporation into council’s submission must be received by 2 February 2023.

42. Formal feedback to be appended to council submissions must be received by 23 February 2023.

Ngā tāpirihanga

Attachments

There are no attachments for this report.

Ngā kaihaina

Signatories

Author

Denise O’Shaughnessy – Manager Strategic Advice

Authorisers

Carol Hayward – Team Leader, Operations and Policy

Louise Mason - General Manager Local Board Services

Chairperson	Gary Brown
Deputy Chairperson	Julia Parfitt, JP
Members	Jake Law	Victoria Short
	Sam Mills	Gregg Walden
	Alexis Poppelbaum, JP	Leanne Willis

Author	Matthew Kerr - Senior Local Board Advisor
Authoriser	Lesley Jenkins - Local Area Manager

Authors	Matthew Kerr - Senior Local Board Advisor
Authorisers	Lesley Jenkins - Local Area Manager

Authors	Louise Healy - PA/Office Manager
Authorisers	Lesley Jenkins - Local Area Manager

No.	Title	Page
a ⇩	Urgent Decision memo and local board feedback - Resource Management Reform	75
b ⇩	Resource Management Reform: Natural and Built Environment Bill and Spatial Planning Bill	79

Exclusion of the Public: Local Government Official Information and Meetings Act 1987