Agenda of Maungakiekie-Tāmaki Local Board

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 Maungakiekie-Tāmaki Local Board:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 6 December 2022 and the ordinary minutes of its meeting, held on Tuesday, 7 February 2023, including the confidential section, 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 Maungakiekie-Tāmaki 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 - George Gerrard, Mount Wellington Rugby Football Club

Te take mō te pūrongo

Purpose of the report

1. Providing George Gerrard with the opportunity to present to the local board with a request to secure a community facility on Hamlin Park.

2. Whakarāpopototanga matua

Executive summary

3. As per standing orders the Chairperson has approved the deputation request from Mount Wellington Rugby Football Club.

Ngā tūtohunga

Recommendation/s

That the Maungakiekie-Tāmaki Local Board:

a) Thank George Gerrard for his attendance and presentation.

Attachments

a 28 February 2023, Maungakiekie-Tāmaki Local Board Business Meeting: Item 8.1 - Deputation, powerpoint presentation....................................... 181

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.

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

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.”

No.	Title	Page
a ⇩	Tuesday 28 February 2023, Maungakiekie-Tāmaki Local Board Business Meeting: Item 11 - Governing Body Member's Update report, document	11

No.	Title	Page
a ⇩	Tuesday 7 February 2023, Maungakiekie-Tāmaki Local Board Business Meeting: Item 12 - Chairperson's report,document	31

No.	Title	Page
a ⇩	Tuesday 28 February 2023, Maungakiekie-Tāmaki Local Board Business Meeting: Item 13 - Deputy Chair Debbie Burrows board member report, document	37

Maungakiekie-Tāmaki Local Board

28 February 2023

Auckland Council's Performance Report: Maungakiekie-Tāmaki Local Board for quarter two 2022/2023

File No.: CP2023/01564

Te take mō te pūrongo

Purpose of the report

1. To provide the Maungakiekie-Tāmaki Local Board with an integrated performance report for quarter two, 1 October – 31 December 2022.

Whakarāpopototanga matua

Executive summary

2. This report includes financial performance, progress against work programmes, key challenges the board should be aware of and any risks to delivery against the 2022/2023 work programme.

3. The key activity updates from this period include:

· The Oranga Community Decides participatory budgeting pilot has identified that the community want to prioritise initiatives that will create ‘safer spaces’ and support ‘tamariki under the age of 14 years’ for community delivery in 2023.

· Onehunga and Glen Innes libraries are providing innovative digital support initiatives for students and community members.

· East View Reserve neighbourhood park upgrade is being prepared for physical works to commence in February 2023.

· Wai-o-Taiki Nature Reserve nature trail is almost finished.

· Glen Innes Bike hub was busy through quarter two.

· Maungakiekie Songbird continues to increase membership, with 593 households supporting pest control, native planting and bird life in the area.

4. 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 activities are reported with a status of red (behind delivery, significant risk):

· ID26478: Onehunga Bay Reserve

· ID1281: Service Improvement Panmure Community Hall Activation

· ID2833: Te Kete Rukuruku (Māori naming of parks and places) Tranche One

5. 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 or about 28 February 2023.

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

6. 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.

Ngā tūtohunga

Recommendation/s

That the Maungakiekie-Tāmaki 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 Exchange (NZX), which are expected to be made public on 28 February 2023.

Horopaki

Context

7. The Maungakiekie-Tāmaki Local Board has an approved 2022/2023 work programme for the following operating departments:

· Customer and Community Services

· Infrastructure and Environmental Services

· Tātaki Auckland Unlimited

8. 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. [standard paragraph]

Graph 1: Work programme activities by outcome

Tātaritanga me ngā tohutohu

Analysis and advice

Local Board Work Programme Snapshot

9. 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

10. 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

Key activity updates

11. Oranga Community Centre worked with a key local leader who supports less fortunate families in Oranga through her community kitchen and food parcel voluntary work. The Kitchen Projects team are exploring options to support this as an entrepreneurial opportunity.

12. The Oranga Community Decides participatory budgeting pilot went live and has been essential in giving the Oranga community a voice to share what they want to see funded in their community. Staff have approval in principle to a match funding proposal sitting with Foundation North to double the grant pool for 'Oranga Decides'. Initiatives that will create ‘safer spaces’ and support ‘tamariki under the age of 14 years’ were selected by communities as the top two priority for 2023. The second round of consultation calling for proposals that will enable these two priorities will open in February 2023.

13. Libraries, digital support - An initiative between Tamaki College and Glen Innes Library began, providing digital support for selected students in the library. Onehunga and Glen Innes library partnered with Kiakaha Digital offering classes in the libraries to help build digital confidence in a friendly and supportive way.

14. East View Reserve - Consents for the neighbourhood park upgrade have been approved and preparation is taking place for construction procurement. Engagement is underway with Mana Whenua on implementation of cultural design elements. Physical works are scheduled to start by February 2023 and expected to be complete by March 2024. Planting and vegetation maintenance in the creek will continue for the next 4 years to allow for a self sustaining ecosystem to be created.

15. Wai-o-Taiki Nature Reserve nature trail is almost finished. The 10m bridge is in place.
A handrail will be added following engagement with the local community.

16. Panmure Basin play space - Renewal for the existing skatepark surface is currently underway by Eke Panuku. Additional upgrade features for the skatepark will be constructed in summer 2023.

17. Glen Innes Bike Hub was busy through quarter two, despite some unpleasant weather and minor disruptions due to bike lane installation on nearby Taniwha Street. During this quarter, there were 50 operating days, 602 visitors, 339 bikes repaired, 56 bikes gifted or sold at low cost to the community, and operations were supported by the equivalent of 46 days of volunteer time. The Glen Innes Bike Hub also supported the opening of Taniwha Reserve with novelty bikes for event attendees to ride.

18. Maungakiekie Songbird continues to increase membership within the defined halo area surrounding Maungakiekie and Cornwall Park. The current membership base is sitting at 593 households, 319 of which fall within the Maungakiekie-Tamaki local board area. These households are provided with free resources ranging from native trees to pest traps (wasp, rodent, and possum), to weta motels and bird feeders. The group held a native plant collection day with the support of the Cornwall Park nursery, giving native plants to more than 75 residents, along with 30 traps.

Activities with significant issues

19. ID26478: Onehunga Bay Reserve – develop dog agility area – After consultation with the local board, direction was given to put the project delivery on hold and carry out further conversations with iwi in conjunction with the local board.

20. ID1281: Service Improvement Panmure Community Hall Activation – Service agreement partners are delivering programmes for the community from Panmure Community Hall and will be able to continue deliver without utilising the funds from this activity line. This underspend can be reallocated toward other local activities.

21. ID2833: Te Kete Rukuruku (Māori naming of parks and places) Tranche One – There are ongoing discussions to resolve shared interests.

22. Additional advice regarding options to absorb any underspent funds will be presented to the board in workshop. Reallocations will be recommended through a future report.

Activities on hold

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

· ID24239: Taurima Reserve - redevelop park playspace - This project will commence in financial year 2023/2024 and expected to be completed by June 2025

· ID30645: Fergusson Hall - renew full facility – project on hold for investigation and design in future years.

Changes to the local board work programme

Activities with changes

24. The following work programmes activities have changes which been formally approved by the board.

Table 1: Work programmes change formally approved by the board

ID/ Ref	Work Programme Name	Activity Name	Summary of Change	Resolution number
295	Customer and Community Services: Regional Services and Strategy - Events	Onehunga Christmas Lights 2022	Increase budget by $2906 to cover funding shortfall	MT/2022/178
N/A	N/A	Local film revenue	Reallocate $1,696 from local film revenue to Onehunga Christmas Lights	MT/2022/178
297	Customer and Community Services: Grants	Local Community Grants	Reallocate $1,696 from local community grants to Onehunga Christmas Lights	MT/2022/178

25. The following work programmes activities have been amended to reflect minor change, the implications of which are reported in the table below. The local board was informed of these minor changes, and they were made by staff under delegation.

Table 2: Minor change to the local board work programmes

ID/Ref	Work Programme Name	Activity Name	Change	Reason for change
26068	Customer and Community Services: Parks & Community Facilities	Glen Innes Pool and Leisure Centre – develop carpark extension	Budget increase of $591,000 ABS CAPEX Renewals Breakdown as follows: $231,000 in FY23 $160,000 in FY24 $200,000 in FY25	The price of the works have come back as a higher cost than the engineers estimates. The project manager has considered the works to be phased over 2 stages. Stage 1 – complete the extension, Stage 2 – renew the existing carpark. Due to the condition of the current carpark being very poor, it does not make sense to stage the works, and rather complete it all at once. By staging we also run the risk of seeking further budget on top of what is being currently asked for.
24089	Customer and Community Services: Parks & Community Facilities	Manukau Foreshore East – renew cycleway	Budget decrease $360,000 ABS CAPEX Renewals Breakdown as follows: -$160,000 FY24 -$200,000 FY25	The project manager has considered what the best return of value for cost of works is required for this project. The scope that is now going to be proceeded with is less than the original project budget due to a decrease in scope that allows the cycleway to be safe and utilised easily by members of the public. The additional scope would have added an extra level of service to the cycleway which is not required for the desired outcome, and does not provide value for money.
24242	Customer and Community Services: Parks & Community Facilities	Maungakiekie-Tamaki – renew park furniture and fixture	Budget decrease of $220,000 ABS CAPEX Renewals Breakdown as follows: -$220,000 in FY23	The project manager is unable to deliver the full budget this financial year due to delays in design and consenting for the works as well as contractor availability. This budget is able to be reallocated to another project this financial year, but will be reinstated in future years in order for the physical works to be completed.
18013	Customer and Community Services: Parks & Community Facilities	Dunkirk Activity Centre – renew facility	Budget decrease of $11,000 ABS CAPEX Renewals Breakdown as follows: -$11,000 in FY23	The project manager is unable to deliver the full budget this financial year due to the scope not being confirmed on the project at this current stage. This budget can be reallocated to another project this financial year.

Tauākī whakaaweawe āhuarangi

Climate impact statement

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

27. 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.

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.

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

Local impacts and local board views

29. This report informs the Maungakiekie-Tāmaki Local Board of the performance for ending 31 December 2022.

Tauākī whakaaweawe Māori

Māori impact statement

30. The local board remains committed to integrating and supporting work that contributes to outcomes for Māori. This includes enhancing partnerships and collaborative ways of working with mana whenua and mataawaka.

31. The Maungakiekie-Tāmaki Local Board Plan 2020 has the lens of Te Ao Māori woven throughout, as well as an outcome that focuses on: Te ao Māori is thriving and visible. The local board plan guides local board decision making, including through the development and delivery of the 2022/2023 work programme.

32. Some of the activities in the local board’s 2022/2023 work programme (Attachment A) have specific impact on the wider Māori community, updates on these activities include:

· ID289: Māori Responsiveness: Ruapōtaka Marae support -- During Quarter 2, staff and contractor continued to support progression of the marae redevelopment project through the Land Owner Approval, reserve re-classification and statutory planning processes. The marae continued their engagement with mana whenua and progressed their resource consent application. Staff and the contractor assisted the marae with their aspirations to develop marae-based services for the local community. The business plan for the Ruapataka social supermarket is near completion following a successful pilot phase in 2022. The marae secured a commercial lease at Colin Maiden Park for a community hauora hub to support whānau wellbeing.

· ID291: Strategic Partnerships Programme – One to one capacity and capability support continued for the rōpū of 13 community groups and organisations with six-month video reporting underway to capture the impact on the organisations and the communities that they serve. 'Oranga Decides', a Participatory Budgeting Pilot enabling the Oranga community to decide on priority areas of need, and put forward new initiatives that address them and have input into distribution of funds is progressing well.

· ID298: Youth empowerment – five community groups have been funded to continue their work with rangatahi to increase their wellbeing, and create pathways for learning and work, including supporting pastoral care, growth of personal passions, entrepreneurial skills and educational/employment pathways.

· ID1482: Māori Participation and partnership in local board decision-making – planning and development of engagement activities is progressing. The local board are reengaging with iwi and Māori to establish relationships for the new term. Upcoming local board planning is a key opportunity for partnership.

Ngā ritenga ā-pūtea

Financial implications

33. This report is provided to enable the Maungakiekie-Tāmaki Local Board to monitor the organisation’s progress and performance in delivering the 2022/2023 work programmes. There are no financial implications associated with this report.

Financial Performance

34. 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

35. 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.

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

Ngā koringa ā-muri

Next steps

37. 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 ⇩	Maungakiekie-Tāmaki Local Board Work Programme 2022/2023 Q2 Report	47
b ⇩	Maungakiekie-Tāmaki Operating Performance Financial Summary - Confidential

Ngā kaihaina

Signatories

Author

Samantha Tan Rodrigo - Local Board Advisor

Authorisers

Louise Mason - General Manager Local Board Services

Victoria Villaraza - Local Area Manager

Maungakiekie-Tāmaki Local Board

28 February 2023

Draft Contributions Policy 2022, Variation A

File No.: CP2023/00794

Te take mō te pūrongo

Purpose of the report

1. To seek feedback from local boards 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 (DCs) 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 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 Maungakiekie-Tāmaki 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. 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.

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 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 Have Your Say (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 Have Your Say 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. 26 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. 33 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 LTP 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 boards 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

Victoria Villaraza - Local Area Manager

Chairperson	Maria Meredith
Deputy Chairperson	Debbie Burrows
Members	Don Allan
	Nerissa Henry
	Chris Makoare
	Peter McGlashan
	Tony Woodcock

Author	Jessica Prasad - Democracy Advisor
Authoriser	Victoria Villaraza - 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)

No.	Title	Page
a ⇩	Urgent Decision - Local Board Feedback on the Resource management reform: Natural and Built Enviroment Bill and Spatial Planning Bill	95

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