Agenda of Regional Council - Wednesday, 10 November 2021

Council

Membership

Chairperson	Chairman Doug Leeder
Deputy Chairperson	Cr Jane Nees
Members	All Councillors
Quorum	Seven members, consisting of half the number of members
Meeting frequency	Six weekly or as required for Annual Plan, Long Term Plan and other relevant legislative requirements

Purpose

· Enable democratic local decision-making and action by, and on behalf of, Bay of Plenty communities.

· Meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

· Set the overarching strategic direction for Bay of Plenty Regional Council as an organisation.

· Hold ultimate responsibility for allocating financial resources across the Council.

Role

· Address Local Electoral Act matters and Local Government Rating Act matters.

· Oversee all matters relating to identifying and contributing to community outcomes.

· Consider and agree on matters relating to significant new activities or areas of involvement such as infrastructure which are not the responsibility of a specific committee.

· Provide regional leadership on key issues that require a collaborative approach between a number of parties.

· Review and decide the Council’s electoral and representation arrangements.

· Consider issues of regional significance which are not the responsibility of any specific standing committee or that are of such regional significance/high public interest that the full Council needs to decide on them.

· Adopt Council’s Policy on Significance and Engagement Policy.

· Develop, adopt and implement the Triennial Agreement, Code of Conduct and Standing Orders.

· Consider and agree on matters relating to elected members’ remuneration.

· Appoint the Chief Executive, and review their contract, performance and remuneration at least annually.

· Approve all delegations to the Chief Executive, including the authority for further delegation to staff.

· Oversee the work of all committees and subcommittees.

· Receive and consider recommendations and matters referred to it by its committees, joint committees, subcommittees and working parties.

· Approve membership to external bodies and organisations, including Council Controlled Organisations.

· Develop, adopt and review policies for, and monitor the performance of, Council Controlled Organisations.

· Monitor and review the achievement of outcomes for the Bay of Plenty Community.

· Review and approve strategic matters relating to the sale, acquisition and development of property for the purposes of meeting Council’s organisational requirements and implement Regional Council policy.

· Address strategic corporate matters including property and accommodation.

· Consider and agree on the process to develop the Long Term Plan, Annual Plan and Annual Report.

· Adopt the Long Term Plan, Annual Plan and budgets variations, and Annual Report.

· Adopt Council policies as required by statute (for example Regional Policy Statement and Regional Land Transport Strategy) to be decided by Council or outside of committee delegations (for example infrastructure policy).

· Develop, review and approve Council’s Financial Strategy and funding and financial policies and frameworks.

· Institute any proceedings in the High Court that are not injunctive proceedings.

· Exercise the powers and duties conferred or imposed on Council by the Public Works Act 1981.

Delegations from Council to committees

· Council has a role to monitor the functioning of all committees.

· Council will consider matters not within the delegation of any one Council committee.

· Council may at any time, revoke or modify a delegation to a Council committee, either permanently, for a specified time or to address a specific matter, if it considers there is good reason to do so.

· The delegations provided to committees may be further delegated to subcommittees unless the power of further delegation is restricted by Council or by statute.

· It is accepted in making these delegations that:

· The committees, in performing their delegated functions, powers or duties, may, without confirmation by the Council, exercise or perform them in a like manner and with the same effect as the Council itself could have exercised or performed them.

· The delegated powers given shall at all times be subject to their current policies and principles or directions, as given by the Council from time to time.

· The chairperson of each committee shall have the authority to exercise their discretion, as to whether or not the delegated authority of the committee be used where, in the opinion of the chairperson, circumstances warrant it.

Powers that cannot be delegated

Under Clause 32 Schedule 7 of the Local Government Act 2002, Council must make the following decisions:

· Make a rate.

· Make a bylaw.

· Borrow money or purchase or dispose of assets, other than in accordance with the long-term plan.

· Adopt the long-term plan, annual plan, or annual report.

· Appoint a chief executive.

· Adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement.

· Adopt a remuneration and employment policy.

Livestreaming and Recording of Meetings

Please note the Public section of this meeting is being recorded and streamed live on Bay of Plenty Regional Council’s website in accordance with Council's Live Streaming and Recording of Meetings Protocols which can be viewed on Council’s website. The recording will be archived and made publicly available on Council's website within two working days after the meeting on www.boprc.govt.nz for a period of three years (or as otherwise agreed to by Council).

All care is taken to maintain your privacy; however, as a visitor in the public gallery or as a participant at the meeting, your presence may be recorded. By remaining in the public gallery, it is understood your consent is given if your image is inadvertently broadcast.

Opinions expressed or statements made by individual persons during a meeting are not the opinions or statements of the Bay of Plenty Regional Council. Council accepts no liability for any opinions or statements made during a meeting.

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
10.1	Public Excluded Regional Council Minutes - 30 September 2021	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
10.2	Arotake Quarter One - Confidential Attachments	Withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities.	48(1)(a)(i) Section 7 (2)(h).	To remain in public excluded.
10.3	Allied Investments Limited Services Agreement	Withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information; Withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities.	48(1)(a)(i) Section 7 (2)(b)(ii); 48(1)(a)(i) Section 7 (2)(h).	To remain in public excluded.

Regional Council Minutes

30 September 2021

Regional Council

Open Minutes

Commencing: Thursday 30 September 2021, 9.30 am

Venue: via Zoom (Audio Visual Meeting)

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Bill Clark

Cr Stuart Crosby

Cr Toi Kai Rākau Iti

Cr David Love

Cr Matemoana McDonald

Cr Paula Thompson

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Bay of Plenty Regional Council: Fiona McTavish – Chief Executive, Mat Taylor – General Manager Corporate, Namouta Poutasi – General Manager Strategy & Science, Sarah Omundsen – General Manager Regulatory Services, Chris Ingle – General Manager Integrated Catchments; Karen Aspey - Director, People & Leadership, Debbie Hyland – Finance and Transport Operations Manager, Kirsty Brown – Rivers and Drainage Assets Manager, Pim de Monchy - Coastal Catchments Manager, Tone Nerdrum Smith – Committee Advisor

Quayside Holdings Ltd: Scott Hamilton, Chief Executive, Sir Rob McLeod, Chair, Keiran Reid, Independent Director

Local Government Funding Agency: Andrew Michl

Apologies: Cr Norm Bruning and Cr Stacey Rose

Recording of meeting: https://www.youtube.com/watch?v=T2O0pcocDZw

1. Opening Karakia

A karakia was provided by Cr Iti.

2. Apologies

Resolved

That the Regional Council:

1 Accepts the apologies from Cr Norm Bruning and Cr Stacey Rose tendered at the meeting.

Leeder/Winters

CARRIED

3. Declaration of Conflicts of Interest

Cr Crosby and Cr White – Quayside Holdings Ltd Annual Report for the Year Ended 30 June 2021 (Quayside Board Directors).

Cr von Dadelszen - Focus Catchments: Kopurererua Stream Re-alignment Project (Chair of Rotary Club Tauranga).

4. Minutes

Minutes to be Confirmed

4.1

Regional Council Minutes - 12 August 2021

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 12 August 2021 as a true and correct record, subject to the following amendments:

Item 7.1 – Chairperson’s Report, Key Points, Second bullet: change ‘Te Rangi’ to ‘Ngāi Te Rangi’.

Leeder/Winters

CARRIED

4.2

Regional Council Minutes - 16 September 2021

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 16 September 2021 as a true and correct record.

Leeder/Thurston

CARRIED

Minutes to be Received

4.3

Rangitāiki River Forum Minutes - 4 June 2021

Resolved

That the Regional Council:

1 Receives the Rangitāiki River Forum Minutes - 4 June 2021.

2 Recommends the following amendment: Item 7.1, Change in Members and Appointment of a Deputy Chairperson: All Bay of Plenty Regional Councillors on the Forum abstained from voting.

Winters/Clark

CARRIED

4.4

Regional Transport Committee Minutes - 9 June 2021

Resolved

That the Regional Council:

1 Receives the Regional Transport Committee Minutes - 9 June 2021.

Thurston/Nees

CARRIED

4.5

Tauranga Moana Advisory Group Minutes - 11 June 2021

Resolved

That the Regional Council:

1 Receives the Tauranga Moana Advisory Group Minutes - 11 June 2021.

McDonald/Nees

CARRIED

5. Reports

5.1

Chairperson's Report

Key Points - Members:

· Noted that the Water Services Bill (omnibus bill to implement the three waters reforms) had been through its third reading on 28 September 2021.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/Winters

CARRIED

Decisions Required

5.2

Resetting Minor Rivers and Drainage Schemes Rates 2021/22

Presented by: Mat Taylor – General Manager Corporate

Key Points:

· Noted that this was the final step in the rates resetting process.

Resolved

That the Regional Council:

1 Receives the report, Resetting Minor Rivers and Drainage Schemes Rates 2021/22.

2 Agrees that Council has completed the requirements of the Local Government (Rating) Act 2002 and Council Standing Orders to enable Council to re-set the Minor Rivers and Drainage Schemes Rates.

3 Approves the alterations to Rates Setting 2021/22 resolution 18 adopted on 24 June 2021 for the Waiotahi River District targeted rates, Huntress Creek Drainage District targeted rates and Waiotahi Drainage District differential targeted rates set out in section 2 of this report, noting that all alterations result in lower rates being set.

4 Adopts the altered Rates Setting 2021/22 resolution 18 as follows:

(i) 18 Sets targeted rates for the Minor Rivers and Drainage Schemes. The rates are set differentially for all rateable land situated in the defined communal pumped drainage and defined minor rivers and drainage schemes areas.

· The Council sets one targeted rate for each scheme as follows;

(ii) Where the land is situated and calculated using the area of land within the rating unit.

5 Approves the alterations to Rates Setting 2021/22 resolution 20 adopted on 24 June 2021 for the Minor Drainage Scheme uniform targeted rate for Omehu East set out in section 2 of this report, noting that this results in a lower rate being set.

6 Adopts the altered Rates Setting 2021/22 resolution 20 as follows:

(i) 20 Sets targeted rates uniformly for all rateable land situated in the defined drainage and defined Minor River and Drainage Schemes areas.

· The rates are set as follows;

(ii) Where the land is situated and calculated using the land area within the rating unit.

7 Notes that all other parts of the Rates Setting 2021/22 resolutions as set on 24 June 2021 and amended on 12 August 2021 remain unchanged.

Leeder/Iti

CARRIED

5.3

Focus Catchments: Kopurererua Stream Re-alignment Project

Presentation - Kopurererua Stream Re-alignment Project - PDF: Objective ID A3944730

Presented by: Paul Greenshields – Land Management Officer and Pim de Monchy - Coastal Catchments Manager

Cr von Dadelszen declared a conflict of interest in this item as the Chair of Rotary Club Tauranga that was involved in the K-valley development, and abstained from discussion and voting.

Key Points of Presentation:

· Kopurererua Stream Re-alignment Project

· Focus Catchment Matters

· Lower Catchment Action Plan

· The Project.

Key Points - Members:

· Recognised the importance of this project

· Sought a matrix to measure how Council managed sediment; water control etc.

· Suggested that the Tauranga Ward Councillors be provided with more details regarding the operational aspects of the project

· Suggested the development of story boards on the K-valley walkways to share information regarding the valuable impact of the project

· Noted that erecting story boards fell within the responsibility of Tauranga City Council, i.e. Regional Council did not have the authority to do this, and that TCC had been approached by volunteer organisations regarding this for some time

Key Points - Staff:

· Provided an outline of the management of methanide emission and how the establishment of fresh wetlands could influence emission profiles due to the anaerobic nature of the soils

· Noted the comments with regards to Regional Council’s clear expectations around project delivery and that any cost overruns would be covered by the lead contractor, Tauranga City Council.

Resolved

That the Regional Council:

1 Receives the report, Focus Catchments: Kopurererua Stream Re-alignment Project.

2 Approves the attached Funding Agreement with Tauranga City Council to implement the project, noting that it commits Council to $1,300,000 in contributions over 3 years (already provided for in the LTP) towards the $4,045,000 total project cost.

3 Delegates authority to the Chief Executive to execute the Agreement and approve the associated payments.

Winters/Crosby

CARRIED

5.4

Review of Rivers Scheme Advisory Groups' Term of Reference

Chris Ingle – General Manager Integrated Catchments provided an outline of the report.

Key Points - Members:

· Noted the growing role of co-governance forums in the current political environment

· Recognised the importance of hapū having an input into the representation on the co-governance forums

· Important to work together in a wider context, i.e. hapū, iwi, landowners etc. to achieve

· Active community participation in the river schemes was valuable and important to achieve positive and agreed-to outcomes

Key Points - Staff:

· A relatively small and focussed working group comprising staff and Councillors would aim to formulate recommendations to Council prior to the end of 2021.

Items for Staff Follow Up:

· Establish a working group for the purposes of the review and to provide guidance before any recommendations was brought back to Council for considerations.

Resolved

That the Regional Council:

1 Receives the report, Review of Rivers Scheme Advisory Groups' Term of Reference.

2 Agrees that a review of the River Scheme Advisory Groups is undertaken.

Winters/Iti

CARRIED

5.5

Procurement for Mangrove Seedling Management Services in Tauranga Moana (hand held tools only)

Chris Ingle – General Manager Integrated Catchments, Pim de Monchy - Coastal Catchments Manager and Jackson Efford – Principal Advisor (Land and Water).

Key Points:

· The current mangrove management contractor to Council was retiring, hence the need to commence the process of appointing a new provider

· The contractor would cover mangrove areas that were too challenging/hazardous for volunteers to manage

· Hand held tools were effective in the management of mangroves.

Resolved

That the Regional Council:

1 Receives the report, Procurement for Mangrove Seedling Management Services in Tauranga Moana (hand held tools only).

2 Approves the Procurement Plan for mangrove seedling management services in Tauranga Moana.

3 Approves going to market to invite proposals/quotes.

4 Delegates financial authority to the CEO to approve contracts and supplier selections up to $1,185,035 (being the funding for this work allocated in the LTP 2021-31 for the next six years), including contract variations and renewals, and appointing additional suppliers if required.

Leeder/Nees

CARRIED

5.6

Procurement Plan for Rivers and Drainage Capital Works 2021/22

Presented by: Chris Ingle – General Manager Integrated Catchments.

Key Points:

· The budget was comprised of a mix of targeted and general rates.

Resolved

That the Regional Council:

1 Receives the report, Procurement Plan for Rivers and Drainage Capital Works 2021/22;

2 Approves the attached Procurement Plan for Rivers and Drainage Capital Works 2021/22;

3 Approves going to market to invite tenders for the capital works projects as set out in the attached Procurement Plan;

4 Delegates to the Chief Executive the authority to award the contracts for each capital project, providing the tender price is within the approved capital project budgets as set out in the Long Term Plan 2021-2031;

5 Agrees to additional capital expenditure budget of $105,000 in 2021/22 which results in higher budgeted borrowings, to complete the Lake Ōkāreka Pipeline Replacement project.

Winters/Thurston

CARRIED

5.7

Appointment of Regional On-Scene Commander and Alternative On-Scene Commander

Presented by: Sarah Omundsen – General Manager Regulatory Services.

Key Points:

· Provided an outline of the report and the responsibilities of the on-scene commander.

Resolved

That the Regional Council:

1 Receives the report, Appointment of Regional On-Scene Commander and Alternative On-Scene Commander.

2 Appoints Scott Robinson as Regional On-Scene Commander and Derek Hartley as Alternative On-Scene Commander for the Bay of Plenty.

Winters/Love

CARRIED

5.8

Local Government Funding Agency Annual Report 2020/21

Presentation - LGFA Annual Report 2020-21 - PDF: Objective ID A3944732

Presented by: Debbie Hyland – Finance and Transport Operations Manager and Andrew Michl – Local Government Funding Agency (LGFA)

Key Points - Presentation:

· LGFA Overview

· 2021-22 Statement of Intent

10.17 am – Cr White entered the meeting.

· Financial Statements: 12 months to June 2021

· Historic & Forecast Financial Performance

· LGFA Credit Rating

· Council Headroom: 2021 to 2031 LTP

· Yield Curves – NZGB and LGFA

· LGFA Members as at 31 August 2021

· LGFA Financial Covenants – Member Council Outcomes for June 2020 Year

· Net Debt to Revenue Covenant - Average Member Council Outcomes

· Council Headroom: 2021 to 2031 LTP.

Key Points – Andrew Michl LGFA:

· LGFA did not provide advice to councils with regards to opting in or out in the Three Waters reforms

· Discussions between LGFA, DIA and Treasury regarding Three Waters were at high level only at this stage

· LGFA would currently not be able to lend to the three water entities as such lending would require permission from the shareholder councils

· Auckland Council funded 67% of its own investments

· The water entities would not be established as CCOs, rather the entity structure would be a unique mix of central government, local government and iwi

· Expected the Reserve Bank to increase interest rates by a .25% from October 2021 and that the Official Cash Rate would incrementally increase to 2%, which was still low in a historical sense.

Key Points - Staff:

· Shareholder councils were attempting to quantify possible risks of the three waters reform through scenarios and assessment of risks associated with each scenario.

Resolved

That the Regional Council:

1 Receives the report, Local Government Funding Agency Annual Report 2020/21.

2 Notes the Local Government Funding Agency Annual Report 2020/21

Winters/Love

CARRIED

5.9

COVID-19 Alert Level Changes: Implications for Performance Against LTP Goals

Fiona McTavish – Chief Executive provided an outline of the report.

Key Points:

· LTP goals currently at risk due to Covid-19 included:

o Monitoring of consents

o Processing of non-notified consents

o Visitor number to regional parks

· Public transport patronage.

Resolved

That the Regional Council:

1 Receives the report, COVID-19 Alert Level Changes: Implications for Performance Against LTP Goals.

Winters/Leeder

CARRIED

5.10

Toi Moana Trust Annual Report for the year ended 30 June 2021

Presented by: Scott Hamilton – Chief Executive, Quayside Holdings Ltd.

Key Points:

· An unmodified audit opinion had been provided within the required timeframe by Audit NZ

· Dividend payment of $2.4m was from the previous financial year, which meant there was still a dividend payment in arrears to be distributed

· Clarified the remuneration pool available for Quayside/Subsidiaries Directors which was proposed to be set at $230k p.a.

Key Points - Members:

· Suggested that the wording pertaining to the Quayside Directors’ remuneration pool be amended to show the proposed amount represented an overall increase in the pool.

Resolved

That the Regional Council:

1 Receives the report, Toi Moana Trust Annual Report for the year ended 30 June 2021.

Leeder/Nees

CARRIED

10.45 am – the meeting adjourned.

11.30 am – the meeting reconvened.

5.11

Quayside Holdings Limited Annual Report for the year ended 30 June 2021

Presentation - Quayside Holdings Ltd Annual Report 2020-21 PDF: Objective ID A3944734

Cr Stuart Crosby and Cr Te Taru White declared an interest in this item as Quayside Holdings Ltd Directors and abstained from discussion and voting.

Presented by: Scott Hamilton - Chief Executive Quayside Holdings Ltd, Sir Rob McLeod – Chairman, Quayside Board, and Keiran Horne – Independent Director, Quayside Board.

Key Points - Presentation:

· Operating Environment

· 2021 Financials

· Port of Tauranga

· Financial Results

· Beyond the Numbers

· Quayside Group Results

· Investments

· Listed Assets

· Private Equity

· Highlights

· Tax Changes

· Statement of Intent FY 2021

· 2021 Audit Process

· Key Messages

· Rangiuru Business Park.

Key Points - Members:

· Noted that the lack of resourcing at Audit NZ negatively impacted on Quayside’s ability to meet its statutory audit requirements.

In Response to Questions:

· The application to ‘fast forward’ the extension at the Port of Tauranga had been unsuccessful

· Port of Tauranga supported and encouraged various modes of transport, e.g. rail/shipping/air

· Significant work had been undertaken with regards to an internal value proposition for the Quayside organisation, which was clearly defined in the Annual Report

· First cut modelling on stormwater catchment/management had been undertaken for Rangiuru Business Park

· Noted the Climate Change Disclosure Requirement Bill that was currently progressing through select committee readings and the impact on Quayside, mainly in the requirements for more robust reporting

· The Auditor General directed who audited Quayside, however a dialogue regarding this could be initiated.

Resolved

That the Regional Council:

1 Receives the report, Quayside Holdings Limited Annual Report for the year ended 30 June 2021.

2 Reappoints the Office of the Auditor-General, as the Auditors of the Company, and authorise the Directors of Quayside Holdings Limited to negotiate with the Office of the Auditor‐General pursuant to the Public Audit Act 2001 to fix the Auditor’s remuneration for the ensuing year;

3 Agrees that, on the basis of six directors, the aggregate remuneration pool for Quayside Holdings Limited directors is set as $230,000 (plus GST if any), and that it be noted that Quayside Holdings Limited intends to approve an equivalent limit to be divided between directors of Quayside Holdings Limited’s subsidiaries – Quayside Securities Limited and Quayside Properties Limited;

4 Notes that the aggregate remuneration pool of $230,000 (plus GST, if any) represents an increase in the current Quayside Holdings Ltd Directors; fees.

Thompson/Thurston

CARRIED

6. Public Excluded Section

Resolved

Resolution to exclude the public

1 Excludes the public from the following parts of the proceedings of this meeting as set out below:

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
6.1	Public Excluded Regional Council Minutes - 12 August 2021	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
6.2	Public Excluded Regional Council Minutes - 16 September 2021	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.

Leeder/von Dadelszen

CARRIED

7. Closing Karakia

A karakia was provided by Cr Te Taru White.

12.24 pm – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council

Rotorua Te Arawa Lakes Strategy Group Minutes

14 May 2021

Rotorua Te Arawa Lakes Strategy Group

Ngā Meneti

Open Minutes

Commencing: Friday 14 May 2021, 09:30 am

Venue: Nukuteapiapi Room, Te Arawa Lakes Trust, 1194 Haupapa Street, Rotorua

Heamana

Chairperson: Sir Toby Curtis (Poū Tākiwaiora)

Heamana Tuarua

Deputy Chairperson: Mayor Steve Chadwick (Rotorua Lakes Council)

Ngā Kopounga

Members: Rotorua Lakes Council (RLC)

Deputy Mayor David Donaldson

Te Arawa Lakes Trust (TALT)

Roana Bennett

Bay of Plenty Regional Council Toi Moana (BOPRC)

Cr Kevin Winters and Cr Te Taru White

Observers from Ministry for the Environment (MfE)

Courtney Clyne – Kaitātari Freshwater Investments Team; Karla Kereopa – Senior Policy Analyst, Treaty Partnerships and via Zoom: Lorena Stephen – Director of Sustainable Land Use Delivery

Te Hunga i Tae Ake

In Attendance: BOPRC: Chris Ingle – General Manager Integrated Catchments; Helen Creagh – Rotorua Catchments Manager; Rosemary Cross – Senior Projects Manager – Rotorua; Merinda Pansegrouw – Committee Advisor

RLC: Geoff Williams – Chief Executive; Stavros Michael – Deputy Chief Executive Environmental and Infrastructure Solutions; Gina Rangi - Manahautū Māori (Māori Manager)

TALT: Mariana Te Rangi – Acting Environment Manager

Ngā Hōnea

Apologies: Chairman Doug Leeder (BOPRC)

Nuki Nicholson and Rangitihi Pene (TALT)

1. Karakia Whakatuwhera
Opening Karakia

A karakia was provided by Councillor Te Taru White

2. Ngā Hōnea
Apologies

Resolved

That the Rotorua Te Arawa Lakes Strategy Group:

1 Accepts the apologies from Chairman Doug Leeder, Nuki Nicholson and Rangitihi Pene tendered at the meeting.

White/Chadwick

CARRIED

3. Ngā Take Tōmuri
Items not on the Agenda

· Memorial Service - former Councillor Rosemary Michie

· Suggested items for future Agendas

4. Chairman’s Announcements

· Commended Bay of Plenty Regional Council Toi Moana for the beautiful and appropriate Te Reo Māori translations incorporated into agendas and minutes

· Paid respect to Mr Willie Emery, a former member of the Rotorua Te Arawa Lakes Strategy Group and TALT Trustee who recently passed away. Mr Emery, a stalwart for Rotorua’s Lakes, land and people, has left a lasting legacy. Members acknowledged that he had always put himself forward to serve all to the best of his abilities.

5. Whakapuakanga o Ngā Take Whai Taha-Rua
Declaration of Conflicts of Interest

Nil

6. Ngā Meneti
Minutes

Kia Whakaūngia Ngā Meneti
Minutes to be Confirmed

Matters Arising:

Item 6.2: Progressing a Collective Impact Framework for the Tarawera Lakes System

· TALT Representative Roana Bennett provided an update on progress made regarding Te Mana o Te Wai project for the Tarawera Project. In referring to the Collective Impact Framework for the Tarawera Lakes System (which was endorsed by the Strategy Group in February 2021), she pointed out that further support for the appointment of dedicated resourcing needed for the project was now sought.

Resolved

That the Rotorua Te Arawa Lakes Strategy Group:

1 Confirms the Rotorua Te Arawa Lakes Strategy Group Minutes - 12 February 2021 as a true and correct record.

Donaldson/White

CARRIED

7. Whakahoutanga Kōrero
Verbal Updates

7.1

Te Arawa Lakes Trust Update

Tabled Document 1 - Tabled Item 8.1 TALT Update for RTALSG 14 May 2021: Objective ID A3795827

Presented by TALT Acting Environment Manager Mariana Te Rangi:

Key Points:

· Key focus of the third quarter of 2020/21 had been leading the Tarawera Collective Impact project and continuing to add value to the Te Arawa Lakes Programme on behalf of Te Arawa beneficiaries

· Developing a response to Te Hononga about engagement on the National Policy Statement for Freshwater Management implementation

· Te Tūāpapa had been embedded into the Lakes programme and had formed the basis of input to the BOPRC Long Term Plan submission

· Was working closely with RLC and its contractors on the Lakefront Development, particularly regarding monitoring and management of koura

· Made a submission on the alum dosing consent, supporting the recommendations of the Cultural Impact Assessments (CIA) undertaken by hapū and iwi for the Puarenga and Utuhina Streams

· Continued to engage with BOPRC on Plan Change 14 (Onsite Effluent Treatment systems) and was working with RLC on a CIA for the Rotorua Stormwater Catchment comprehensive consent

· TALT via the National Iwi Chairs Forum (NICF) and Freshwater Iwi Leaders Group was involved in the co-design of the Resource Management Act (RMA) reforms

· Te Arawa Climate Change Working Group - Te Urunga o Kea met with the Climate Commission and made a submission on the Advice Report which would form the basis of the advice to Government

· Mauri Tū Mauri Ora - Jobs for Nature: TALT had secured $2.5m to restore wetlands

· Catfish Killas continued to operate on Lakes Rotoiti and Rotorua with 29 schools registered and around 100 volunteers participating in the programme

· TALT and BOPRC had trained 17 individuals from across Rotorua as biosecurity officers.

Key Points - Members:

· Commended TALT for an informative report and progress made with their mahi

· Noted that the planned establishment of constructed wetlands in the Rotorua catchment would take place in close liaison between BOPRC and TALT once all landowners had been consulted

· Praised the total of 1191 boat ramp inspections that had been undertaken by TALT, contributing to a compliance rate of 98.8%. Stressed the importance of providing enough forms for skippers/boat owners in the letter boxes to complete at the boat ramps.

Resolved

That the Rotorua Te Arawa Lakes Strategy Group:

1 Receives the report, Te Arawa Lakes Trust Update, as tabled at the meeting.

Bennett/White

CARRIED

7.2	Ministry for the Environment Update Presented by Ministry for the Environment (MfE) representative Courtney Clyne, Kaitātari Freshwater Investments Team, supported by Karla Kereopa, Senior Policy Analyst, Treaty Partnerships.
	Key Points: · Progress with Jobs for Nature Funding: $30 million was available for projects from the Te Mana o te Wai Fund (via the Jobs for Nature Programme). Expressions of Interest would be accepted until the fund had been fully committed · MfE’s Waste Minimisation Fund (WMF) – Te Pūtea Whakamauru Para - was now open and supported projects that increased the reuse, recovery and recycling of materials. This would help reduce waste to landfill, one-off use of materials and litter. More information was available on MfE’s website: https://environment.govt.nz/what-you-can-do/funding/waste-minimisation-fund/ · Progress on Freshwater Policy Reforms and Implementation · Sector alignment for Farm Environmental Planning · Climate Change / National Adaptation Plan · Freshwater Allocation · Resource Management Act Reform. Key Point - Members: · Noted that Minister for the Environment Honourable David Parker would be considering a request for additional funding to be allocated to the East Rotoiti Rotomā Sewerage Scheme. MfE representatives confirmed that they had received all the required information to support the request and that the appropriate due diligence checks would be undertaken. More clarity on the way forward could be expected by August/September 2021.
	Item for Staff Follow Up: · MfE representatives to provide a schedule of planned activities to members of the Strategy Group.
	Resolved That the Rotorua Te Arawa Lakes Strategy Group: 1 Receives the verbal update provided by Ministry for the Environment representatives. Winters/Donaldson CARRIED

10:15 am - The meeting adjourned

10:35 am - The meeting reconvened.

MfE Director of Sustainable Land Use Deliver Lorena Stephen joined the meeting via Zoom.

8. Ngā Pūrongo
Reports

Ngā Whakatau e Hiahiatia Ana
Decisions Required

8.1

Rotorua Lakes Council Update Report

Presentation 1 RLC Presentation to RTALSG 14 May 21: Objective ID A3799048

Presented by Stavros Michael, Deputy Chief Executive Environmental and Infrastructure Solutions.

Key Points:

· Rotomā/Rotoiti Sewerage Scheme - was a complex project with challenging site conditions in close proximity to sensitive water bodies. RLC’s approach had been to seek to engage, involve and truly understand and address community/iwi concerns

· Rotorua Wastewater Treatment Plant (WWTP) – the renewal discharge consent application had been submitted; as part of the application a Cultural Impact Assessment (CIA) was required and would be submitted to BOPRC. Furthermore, to enable the construction of the Rotorua WWTP upgrade, a resource consent application was currently being prepared

· Tarawera Sewerage Scheme – Feedback/consents from each ratepayer would close 15 May 2021. Each ratepayer had been asked to submit their written approval for the scheme to proceed. RLC would receive a report on the responses and commit to a final decision on how to proceed with the proposal in June 2021

· Rotoehu proposed Wastewater Reticulation Scheme – confirmed that a funding application/request had been submitted to MfE in April 2021, in line with the Strategy Group’s recommendations adopted in February 2021

· Rotorua Urban Area Comprehensive Stormwater Resource Consent - a comprehensive stormwater master plan was progressing with detailed feasibility design and mapping of the consenting process that was required to satisfy both quantitative and qualitative stormwater management

· Ngongotahā flooding/review and actions - engagement with affected landowners was progressing; engagement would be led by BOPRC, supported by RLC. Agreed work programmes were anticipated to be gradually implemented as land owner consents and detailed designs were completed over the next 12-18 months

· BOPRC - Plan Change 10: Lake Rotorua Nutrient Management (PC10) - Staff from RLC and BOPRC continued to work together on implementation of the Memorandum of Understanding

· RLC – Plan Change 2: Pukehangi Heights - had been approved by the Minister for the Environment. It was anticipated that once developed, the area would provide land for approximately 790 houses. However, before subdivision consents could be approved, significant work needed to be undertaken in relation to stormwater management/consultation

· RLC – Plan Change 3: Significant Natural Area - appeals period to close early May 2021

· RLC - Eastside Wellness Plan - each of the five hapū representatives had provided initial feedback and taken the final Draft Plan back to their respective marae committees. Feedback had resulted in some minor alterations to the maps to reflect changes that have occurred since the original draft. The next step was to provide the final Draft to the wider Tatau Pounamu Collective before presenting the final Plan to Council for adoption.

A PowerPoint Presentation highlighted the following in relation to the Rotomā/Rotoiti Sewerage Scheme:

· Targeted Lakes Water Quality improvements and community health

· Indicative metrics - reticulations had isolated harmful effects of wastewater from the lakes and protected sustainably community health

· Gross actual cost to date was $85m (for all wastewater reticulation within the Programme), with an average cost of reticulation totalling $28k per household

· As an alternative, the OSET option would cost $28K plus ongoing care/ compliance costs/performance uncertainty/enforcement costs

· East Rotoiti Scheme Fly-over video

· Schematics and cost analysis

· Tenders for the final component of the scheme had been received and assessed. A preferred supplier contract was ready to be considered by RLC. However, if the Deed funding imbalance was not addressed, the local share of the scheme’s costs would be roughly 75% instead of the 50% envisaged by the 2005 agreement

· Without the funding balance restoration, RLC would be unable to consider and agree to the final installation portion of the scheme. Costs were likely to continue to escalate with further time delays and the outcomes sought by the reticulation scheme would not be achieved with failing septic tanks compromising lake water quality. Further delays would also compromise the repair of relationships achieved between Iwi and Councils since 2012

· A funding application/request had been submitted to MfE and the Minister had been requested to consider the high level of deprivation within the Rotoiti community.

Key Points - Members:

· Suggested that a personal audience with the Minister for the Environment could emphasise the critical importance of the request, highlighting the mana of the mahi

· The video fly-over of the Rotomā/Rotoiti Sewerage Scheme area was very informative and highlighted the enormity of the project

· Acknowledged that the Rotomā/Rotoiti Sewerage Scheme would assist in addressing the dire need for housing in the area.

Resolved

That the Rotorua Te Arawa Lakes Strategy Group:

1 Receives the report, Rotorua Lakes Council Update Report;

2 Notes the Rotorua Te Arawa Lakes Strategy Group’s 12 February 2021 resolution supporting the Deed Funding adjustment by the Minister;

3 Notes the funding contribution principle in the Deed of 50% deed funding and 50% local share;

4 Notes the independent audit review of April 2021;

5 Agrees that, to provide the necessary confidence for Rotorua Lakes Council to commence a final contract for the East Rotoiti scheme, if the Minister does not adjust the current Deed Funding, the Strategy Group will review the allocation of the remaining Deed Funds required to complete the outstanding work, with priority given to completing Rotoiti.

Chadwick/Bennett

CARRIED

8.2

Rotorua Te Arawa Lakes Programme Update; 2021/22 Annual Work Plan and 2021-2024 Three Year Plan

Tabled Document 2 - Tabled Item R069 Weed harvesting additional funding: Objective ID A3799038

Presentation 2 BOPRC Presentation to RTALSG 14 May 2021 PDF: Objective ID A3799045

Presented by BOPRC Rotorua Catchments Manager Helen Creagh.

Key Points:

· An Independent Quality Assurance New Zealand (IQANZ) Audit Review Report was recently completed (April 2021) on the Rotorua Te Arawa Lakes Programme. A review of the recommendations would be undertaken by the Strategy Group at its August meeting/workshop

· Requests had been made to MfE as directed by the Strategy Group per resolutions of the 12 February 2021 meeting

· Toihurewa Waimāori (Lake and Freshwater Chair) would be advertised and facilitated shortly by the University of Waikato

· Lake Rotoehu:

o Compliance audit of all benchmarks and agreements completed with full compliance

o Two tonnes of weeds had been harvested

· Lake Rotorua:

o Syrinx report had identified priority sites for constructed wetlands, and consultation with landowners was underway

o Koura monitoring had indicated that the koura population was impacted in those lakes where catfish was present

o Three more sewerage connections had been made at Rotokawa/Brunswick

o Collaborative project between Mangorewa Kaharoa Z Trust and Rotorua Te Arawa Lakes Programme, exploring a new land use in the Lake Rotorua catchment: mānuka seedlings planted to produce mānuka oil

· Three Year Plan (a requirement of Deed of Funding) - Funding beyond 2022 would only be for incentives and constructed wetlands in the Lake Rotorua Catchment

· Annual Work Plan 2021/22:

o 2022 would be the final year of Deed funding for most projects

o Alum dosing and weed harvesting however, would continue to be funded by BOPRC in its Long Term Plan

o Uncertainties remained around funding for remaining Rotoiti reticulation.

Key Points - Members:

· Highlighted the importance of including Te Tūāpapa o ngā wai o Te Arawa / Te Arawa Cultural Values Framework into future reports

· Members formally noted Attachment 5 of the report which included correspondence sent to MfE in relation to Deed Funding Requests

· Noted that Te Ara ki Kōpū/Climate Change Strategy for Te Arawa, developed by Te Urunga o Kea, had been approved and would provide a pathway for partners to work collectively and proactively in this space.

Items for Staff Follow Up:

· Circulation of the IQANZ Audit Review Report on the Rotorua Te Arawa Lakes Programme to members of the Strategy Group for consideration at a workshop in August 2021

· A future site visit to Lake Rotoehu for members of the Strategy Group to observe weed harvesting during the next season

· Review of the Strategy Group’s strategic direction and related funding options beyond 2022 to be considered at a workshop in August 2021

· Inclusion of Te Tūāpapa o ngā wai o Te Arawa / Te Arawa Cultural Values Framework into all future reports to the Strategy Group.

Resolved

That the Rotorua Te Arawa Lakes Strategy Group:

1 Receives the report, Rotorua Te Arawa Lakes Programme Update; 2021/22 Annual Work Plan and 2021-2024 Three Year Plan.

2 Approves the Rotorua Te Arawa Lakes Programme 2021/22 Annual Work Plan and 2021-2024 Three Year Plan for submission to the Minister for the Environment.

3 Approves change request CR068 Lake Ōkāreka Land Use Change Funding.

4 Approves change request CR069: An additional $141,000 spend on Lake Rotoehu weed harvesting project for the 2020-2021 financial year, noting the additional spend on this intervention is covered by underspends on phosphorous locking within the Te Arawa Lakes Programme.

Bennett/Winters

CARRIED

9. Ngā Take Tōmuri Hei Whakaaroaro
Consideration of Items not on the Agenda

9.1	Memorial Service - Rosemary Michie
	Members noted that a Memorial Service to honour the life of former Councillor Rosemary Michie was scheduled for Friday afternoon, 14 May 2021, celebrating Michie's contribution to Rotorua and the wider region. She spent 12 years as a RLC Councillor and served nine years as a BOPRC Councillor.
9.2	Items for Future Agendas
	The following matters were highlighted as items for inclusion on future agendas of the Rotorua Te Arawa Lakes Strategy Group:
	Items for Staff Follow Up: · TALT/BOPRC: Presentation on boat ramp monitoring · TALT: Presentation on Te Arawa Lakes Trust Project Delivery into Te Tūāpapa o ngā wai o Te Arawa and the Lakes Strategy · MfE: Update on progress made with the Resource Management Act Reforms · Once TALT had completed the appropriate process of reporting to iwi/ hapu, a presentation to be arranged by Cornel de Ronde, Research Geologist GNS Science, Te Pū Ao on research findings relating to “Geothermal Activity under the Lakes Water” · TALT to action: Due to the current low lake levels, the cleaning of excessive mud/leaves/rubbish at Rotorua Lakefront be followed up and progress on the matter be reported at the next meeting of the Strategy Group.

10. Karakia Kati
Closing Karakia

A karakia was provided by Councillor Te Taru White.

12:10 pm – the meeting closed.

Confirmed 22 October 2021

Sir Toby Curtis

Chairperson, Rotorua Te Arawa Lakes Strategy Group

Date	Meeting / Engagement	Comment
22 September	Meeting with Environmentalists Geoff Reid and Angus Robson– Tauranga	Discussed Intensive Winter Grazing issues.
23 September	Presentation to Whakatāne District Council - Whakatane	Discussed Regional Council Spatial Planning, in particular our perspective as a Regional Council and why spatial planning is important to us, including from a future investment perspective.
1 October	Meeting with Urban Task Force Board – Tauranga	Attended.
4 October	National Council Meeting – Videoconference	Discussed Three Waters Reform.
Joint catch-up with Tauranga City Council and Western Bay of Plenty District Council – Tauranga	Discussed topical local matters.
5 October	Jobs for Nature Discussion – Teleconference	Discussed the stocktake across the Jobs for Nature programme, by the Department of the Prime Minister and Cabinet Implementation Unit.
7 October	National Council Strategy Day – Wellington	Attended.
8 October	National Council Meeting – Wellington	Attended.
15 October	Bay of Plenty Mayoral Forum – Videoconference	The meeting was recorded and can be accessed along with the meeting agenda and minutes on our website. Hosted by Whakatāne District Council Mayor Judy Turner, the forum focussed on housing. There were also discussions on the RM reforms, Climate Change, and BOPLASS provided a summary of LTP projects to be delivered across the Bay of Plenty over the next 10 years.
Meeting with Peter Winder, Western Bay of Plenty District Council Mayor Garry Webber, and Tauranga City Council Commission Chair Anne Tolley – Videoconference	Discussed Local Government Futures Reform.
20 October	Local Government Three Waters Advisory Group catch-up – Videoconference	Discussed LGNZ’s new strategy and an overall reform strategy.
29 October	Port of Tauranga Ltd Board Meeting and Annual General Meeting – Tauranga	Attended.
31 October	Eastern Bay of Plenty Combined Care Group Annual Hui - Waiotahe	This year’s theme was “to achieve our conservation outcomes, we have to look beyond our individual habitats and projects and see our whole rohe as inter-twined.”
1 November	Informal Councillors Briefing with Ōpōtiki District Council – Videoconference	Discussed the River Scheme Flooding Modelling Review.
2 November	Regional Council hosted an informal get together with Tauranga City Council Commissioners – Tauranga	Attended.



Report To:	Regional Council
Meeting Date:	10 November 2021
Report Writer:	Lisa Power, Senior Planner
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	To make the remainder of the Regional Pest Management Plan operative in accordance with Environment Court direction.

Regional Pest Management Plan: Implementing direction from the Environment Court

Executive Summary

On 24 November 2020 the Royal Forest and Bird Protection Society of NZ Incorporated filed an application with the Environment Court against Bay of Plenty Regional Council’s decisions on the Regional Pest Management Plan.

At its meeting on 17 December 2020, Bay of Plenty Regional Council decided to make the majority of the Regional Pest Management Plan operative, less the advisory pest plants in Appendix 1, in accordance with s77 of the Biosecurity Act 1993. Bay of Plenty Regional Council also established an Appeals Subcommittee to provide direction to staff in resolving the Application. Following direct discussions and correspondence between the Royal Forest & Bird Protection Society of NZ Incorporated and Bay of Plenty Regional Council, guided by the Appeals Subcommittee, the two parties were able to reach agreement on changes to the Regional Pest Management Plan to resolve the Application. The parties filed a joint memorandum with the Environment Court on 25 August 2021 attaching a draft consent order detailing the proposed changes to the RPMP. A hearing was held, as required under the Biosecurity Act 1993, on 22 September 2021.

The Environment Court has now issued its decision and has confirmed all the changes proposed. The Environment Court has directed Bay of Plenty Regional Council to modify the Regional Pest Management Plan to reflect its decision. In its decision the Environment Court commended the collaborative approach taken by both parties in resolving this matter. The Environment Court decision is attached.

This report summarises the modifications to be made to the Regional Pest Management Plan as directed by the Environment Court and seeks a decision that the remainder of the Regional Pest Management Plan, incorporating those changes, be made operative. Financial implications as a result of the directed changes to the Regional Pest Management Plan are outlined in this report.

As the Application is now resolved the Appeals Subcommittee can be disestablished.

Recommendations

That the Regional Council:

1 Receives the report, Regional Pest Management Plan: Implementing direction from the Environment Court.

2 Modifies the Regional Pest Management Plan as directed by the Environment Court in its decision dated 23 September 2021.

3 Decides to make the remainder of the Regional Pest Management Plan operative, following compliance with the Environment Court’s direction, in accordance with s77(4)(a)(ii) Biosecurity Act 1993.

4 Delegates to the Group Manager Strategy and Science the authority to make minor alterations or corrections to the Regional Pest Management Plan.

5 Authorises the Chief Executive to make the remainder of the Regional Pest Management Plan 2020-2030 operative by affixing the seal of the Regional Council in accordance with section 77(1) of the Biosecurity Act 1993.

6 Notes additional funding is available for the implementation of the Regional Pest Management Plan including those pests included as Sustained Control pursuant to the Environment Court’s decision.

7 Disestablishes the Regional Pest Management Plan Appeals Subcommittee.

1. Introduction

The Regional Pest Management Plan (RPMP) is the key policy document that sets out how pests in our region will be managed. The proposed RPMP was notified in September 2018 and 56 submissions were received.

At its meeting on 30 September 2020, Bay of Plenty Regional Council (Council) adopted the agenda report, Supporting Document Proposed Regional Pest Management Plan Staff Recommendations and Supporting Document Amended Regional Pest Management Plan as Council’s report and approved it for submitter and public notification under section 75 of the Biosecurity Act 1993.

On 24 November 2020 the Royal Forest and Bird Protection Society of NZ Incorporated (Forest & Bird) filed an application with the Environment Court (Court) against Council’s decisions on the RPMP.

Under the Biosecurity Act 1993, Council was required to decide whether the matter dealt with in the Application was severable from the rest of the plan. At its meeting on 17 December 2020, Council decided the application was severable because the Application related specifically to the plant pests set out as Advisory pests in Appendix 1 of the RPMP – Decisions Version and sought to include additional provisions or controls rather than amending existing ones. Council authorised the Chief Executive to make the RPMP Plan operative excluding plant pests listed in Appendix 1.

Making the remainder of the RPMP fully operative has been reliant on resolving the Application.

1.1 Legislative Framework

The Biosecurity Act 1993 (sections 70 to 77) requires specific sequential steps to be undertaken before a RPMP can come into effect. Section 2 below sets out the legislative process that Council has followed since Forest & Bird filed an application to the Court on the RPMP.

1.2 Alignment with Strategic Framework

A Healthy Environment	We develop and implement regional plans and policy to protect our natural environment.
Freshwater for Life	We listen to our communities and consider their values and priorities in our regional plans.
Safe and Resilient Communities
A Vibrant Region
The Way We Work

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

Medium - Positive

þ Social

Medium - Positive

þ Economic

Medium - Positive

The RPMP provides descriptions of individual pests along with the adverse effects to be managed. It identifies whether each pest has an effect on environmental, production or public values. This strongly correlates to the four well-beings and has been at the forefront of decision-making throughout the development of the RPMP including resolution of the appeal.

2. Application to the Environment Court

2.1 Notice of Motion by Forest & Bird

The Notice of Motion by Forest & Bird’s appeal on the RPMP sought the following relief:

a) All pest plants in Appendix 1 Advisory Pests to the RPMP (except Kauri dieback disease) to be moved into the Sustained Control programme;

b) Kauri dieback disease (Phytophthora agathidicida) to be moved from Appendix 1 Advisory Pests to the Exclusion programme where it is not present in the Bay of Plenty and to Sustained Control where it is found in the Bay of Plenty; and

c) A new Rule 5A that requires removal of pest plants by occupier following the written direction of an authorised person.

Following receipt of the Notice of Motion, on 26 November 2020 the Court directed Forest and Bird to serve its application on all relevant persons. Notice was served by email on 8 December 2020 and confirmed to the Court by memorandum of counsel of the same date. No interested parties joined the Application.

Council and Forest & Bird engaged in direct discussions and the parties were able to reach agreement on amendments to the RPMP to resolve the issues between them.

Counsel for both Forest & Bird and the Council provided the Court with a joint memorandum dated 25 August 2021 and attached a draft consent order. This memorandum and draft order proposed that:

(a) 24 of the 55 plants in Appendix 1 Advisory Pests be included in the Sustained Control programme.

(b) A new definition would be added for “Self-propagated Phoenix Palm”.

(d) A new Rule 5A that applies to the 24 new Sustained Control pests would be included that requires removal of pest plants by an occupier following the written direction of an authorised person. Some minor consequential amendments were to be made to the explanation to the rules as a result.

(e) Those plants listed in Appendix 1 as Advisory Pests that were severed from the now operative RPMP and that are not to be moved into Sustained Control would be reinstated in Appendix 1 Advisory Pests.

(f) Consequential updates be made to Table 14 – Allocation of Costs.

Under s76 of the Biosecurity Act 1993, the Court was required to hold a public hearing to determine whether to dismiss the Application or direct the Council to modify the RPMP. The hearing was required despite the parties having resolved the Application by agreement. This hearing was held on 22 September 2021 via AVL (due to Covid restrictions and the Judge being based in Auckland).

In its decision, the Court directed Council to modify the RPMP as set out in Attachment 1.

The Application was otherwise dismissed with no order as to costs.

3. Considerations

3.1 Risks and Mitigations

Staff consider there is a low degree of financial risk associated with implementing the Court’s direction. Please refer to section 3.5.

3.2 Climate Change

Climate change is a contributing factor to pest incursions and this is acknowledged in the RPMP, which also includes the supporting of ongoing science to advance effective pest management including actions to monitor and adapt to climate change impacts on pest species. However there are no direct climate change implications arising from the modifications to be made to the RPMP following the Court directions.

3.3 Implications for Māori

Implications for Māori have been thoroughly considered and reported on during the policy development process. There are no direct implications for Māori arising from this procedural step, although it is acknowledged that there could be pest species located on land owned by Māori to which a direction under the new rule 5A could now apply. The new rule provides discretion to Council as to whether to direct removal of pest plant species or consider alternative options to work with Māori landowners to manage subject pests.

3.4 Community Engagement

Consultation and community engagement has been a significant part of developing the RPMP and Council has previously confirmed it has satisfied legislative requirements regarding consultation. Relevant submitters were served with the Application and had the opportunity to become interested parties to it. There are no further procedural requirements to be satisfied in relation to consultation in order to comply with the directions of the Court and make the remainder of the RPMP operative.

3.5 Financial Implications

There are financial implications stemming from the Court’s direction.

Section 74(d) of the Biosecurity Act 1993 requires that Council is satisfied that for each subject of the RPMP there is likely to be adequate funding for the implementation of the plan for the shorter of its proposed duration or 5 years.

Costs and benefits were considered during the negotiation process with Forest & Bird and an adjustment has been made to Table 14 of the RPMP to reflect changes in funding allocation arising from the proposed changes to the RPMP. The cost of the overall pest management programme is expected to increase by around $130,000 on an overall total of $5.7 million a year or just over 2%, which the Court considered and held to be reasonable.

Staff have prepared a ‘budget change request’ to be considered as part of the 2022/23 Annual Plan development process to address the additional costs to the biosecurity activity associated with the changes to the RPMP. While this will cover the ongoing budget implications from next year, it will not address the potential budget impact for the remainder of the 2021/22 year.

Staff intend to manage the potential 2021/22 budget impact (which is estimated at around $86,700) within the current Biosecurity budget by reducing levels of service for some non-RPMP pest programmes. Budgets will be reallocated from advisory pest advocacy and support services, and ‘new to region’ pest surveillance work to cover services associated with delivering the additional RPMP pest programmes required as a result of the Forest & Bird Application and Court directions.

An amended RPMP Operational Plan incorporating the changes in level of services will be presented to the Monitoring and Operations Committee for their consideration.

4. Next Steps

An amended version of the RPMP reflecting the direction from Court is provided as Supporting Document 1. All changes are shown using underline and ~~strikeout.~~

Following decisions made at this meeting, the fully operative RPMP will be publicly notified as per Council’s normal notification procedures.

Attachments

Attachment 1 - Environment Court Decision: Royal Forest and Bird Protection Society of New Zealand v Bay of Plenty Regional Council - Bay of Plenty Regional Pest Management Plan ⇩

Attachment 2 - Regional Pest Management Plan - Track changes following Environment Court Decision 20 OCT 2021 ⇩



Report To:	Regional Council
Meeting Date:	10 November 2021
Report Writer:	Annabel Chappell, Manager, Special Projects
Report Authoriser:	Fiona McTavish, Chief Executive
Purpose:	To update on progress with Council moving to an in-house rates collection service, and to make decisions on rates collection parameters including staff delegations.

Rates Collection Project Update

Executive Summary

In October 2020 Council made the decision to collect rates internally. The main drivers for change are increasing the visibility and transparency of services, and direct control over the rating system and all related processes.

Extensive research has been conducted to ensure the most customer-centric, effective and efficient in-house rates collection function, to comply with legislation, and to communicate this change to ratepayers.

Following Council’s approval of the Procurement Plan in May 2021, a procurement process to engage a software supplier was carried out, and a contract was entered into with New Zealand company MAGIQ for the supply of a rates technology system. A Council Workshop was held in September 2021 for direction on policy parameters. System testing is now underway.

Under the Local Government (Rating) Act 2002 (LGRA), delegations of certain functions, duties and powers is permitted to the Chief Executive or any other specified officer of Council, and recommendations for these delegations are included in this report. Recommendations are also made in relation to penalties for late payments, an early payment discount, and the due date for the instalment. Information on the range of payment options for customers is provided to give an insight into affordability.

The focus for this project is to ensure that the customer experience is positive and as seamless as possible, and achieving full legal compliance.

Recommendations

That the Regional Council:

1 Receives the report, Rates Collection Project Update.

2 Notes the progress made towards Bay of Plenty Regional Council moving to an in-house rates collection service.

3 Confirms for the purposes of system configuration, policy development and change communications with customers that:

(a) Bay of Plenty Regional Council will have one annual rates instalment with October as the instalment due date for all rates.

(b) No early payment discount will be offered by Bay of Plenty Regional Council for early payment of rates.

(c) A 10% penalty will be applied by Bay of Plenty Regional Council to overdue rates.

4 Notes the key focus of regional council rates collection and the associated collection parameters in item 3 above, is to provide a customer centric, cost effective service.

5 Delegates its statutory functions, duties and powers under the relevant rating legislation as set out in Attachment 2 “Rating Delegations - Recommended Additions to Council’s Delegations Manual”

1. Introduction

At the 29 October 2020 Council Meeting, approval was given to collect all Regional Council rates in-house, with a target date of collecting rates for the 2022/23 financial year. Historically Council has relied on the Territorial Authorities (TAs) to collect the Regional Council rates on its behalf (except for minor river scheme rates).

Council has given direction that it wishes to increase public awareness of the work we do, and the benefits this work has for the community. Collecting our own rates will further increase the public’s awareness of Council, and result in more community connections, feedback, and engagement. It will also provide transparency of services, and direct control over the rating system and all related processes.

Following Council’s approval in May 2021 of the Procurement Plan for the supply of a rates collection technology system, a procurement process to engage a software supplier was carried out, and a contract was entered into with New Zealand company, MAGIQ. Configuration of the base system is now complete and system testing is underway.

A Council Workshop was held on 29 September 2021 to seek guidance on the preparation of the new Rates Remission and Postponement Policies that will be required for Council to commence collecting its own rates from 1 July 2022. Discussion on collection options including penalties, instalments and early payment discounts also took place. Feedback from Councillors included making sure that the service was customer focussed, that a ”no worse off” principle was applied to remissions, and that transition period for implementing new remissions was the preferred approach. Guidance received at the Workshop is being used to prepare draft policies for public consultation in early 2022.

Options for the amount of any penalties for late payments of rates, whether an early payment discount would be offered, and the number of instalments per annum were also discussed at the Workshop.

This report provides Councillors with an update on progress being made in preparation for delivering a customer-centric in-house rates collection service.

It also seeks confirmation of recommendations in relation to the amount of any penalties for late rates payments, whether to offer an early payment discount, and the instalment due date(s) for rates. Note that these decisions will also need to be set through the Annual Plan process and included in the annual rates resolution for the 2022/23 financial year. For Council’s first year of rates collection, decisions are needed now so that we are able to set up our new systems and processes, and inform our customers of the upcoming changes.

This report also seeks approval in relation to the delegation to staff of certain statutory functions, duties and powers under relevant rating legislation. As discussed below, as delegations are not able to be sub-delegated under the LGRA, it is particularly important to get these delegations in place to enable staff to implement Council’s rating function and deliver an efficient rating service.

1.1 Legislative Framework

The LGRA and the Rating Valuations Act 1998 are the primary enactments governing the setting, assessment and collection of rates by Local Government.

Council can choose by resolution to impose penalties of up to 10% for late payment of rates under the LGRA (s57 and s58 of the LGRA). Council may also choose to provide early payment discounts if it has adopted a Policy for the early payment of rates following the Special Consultative Procedure set out in in the Local Government Act s83. It must also set the due date(s) for payment of the annual instalment(s).

Under the LGRA, delegation for the exercise of certain functions, duties and powers is permitted to the Chief Executive or any other specified officer of Council. Significantly, any powers delegated to the Chief Executive or other specified staff cannot then be sub-delegated - Council’s delegation is the final authority. This means that setting the appropriate delegations is important to enable Council to deliver an efficient service.

In addition to complying with rating specific legislation, Council also needs to ensure that the rating function and processes comply with the Local Government Act 2002 and the Privacy Act 2020.

1.2 Alignment with Strategic Framework

The Way We Work	We deliver value to our ratepayers and our customers.
	We continually seek opportunities to innovate and improve.
	We provide great customer service.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

Medium - Positive

þ Economic

Medium - Positive

.Collecting our own rates will have a positive effect on social and economic well-being. The economic benefit of this project includes less cost to ratepayers as internal costs are forecast to be lower than paying other organisations a commission to collect revenue on our behalf.

The cost of collecting rates internally indicates a savings to ratepayers over the Long Term Plan 2021-2031. These savings are discussed further in the financial implications section of this report.

Positive social benefits include the community having more awareness about the work that we do and engaging with us more, the public will receive an improved customer experience and equity across the region as council will have control over rating policies and will be able to apply a more consistent and holistic view of the Bay of Plenty community.

2. Customer Centric Services

Improving the customer experience has been highlighted as a significant focus for the Rates Collection project. From the research we have conducted with other councils, our customer service delivery model is well set up to be able to support the new rates team with queries and payments. We have the agility to scale up our resources to respond to expected peaks in customer enquiries and interactions.

A detailed communications plan has been developed to inform ratepayers of the change as well as promoting the various payment methods available, including the benefits of direct debit payment plans to enable people to smooth their payments over the year and avoid penalties for any remaining balance outstanding on the instalment due date.

NZ Post will be used as a payment agency to meet the needs of customers who chose to pay their rates over the counter, and to provide broad coverage across the region for this payment option. We will also be offering extensive online services, and we are working with the TAs to establish joined up processes so that the customer only needs to make a request for certain changes once. For example if a customer asks to change their postal address through us, with the customer’s consent we can pass on that information to the TA for action rather than the customer having to make the request to both councils.

For each of the decisions discussed in section 4 of this report, the impact on the customer has been considered. The project team has been focussed on achieving customer centric services, while being mindful of costs to ensure that the services do not have an impact on rates affordability.

Customer profile examples have been provided in Appendix 1 to show the payment options for either one or two instalments, and impact of the options presented.

3. Delegations

The LGRA gives a local authority the power to assess, set and collect rates in a transparent and consultative manner. The LGRA also sets out the processes and information which must be made available to enable ratepayers to identify and understand their liability for rates.

The following rating functions, duties and powers cannot be delegated under the LGRA:

· The power to set and assess rates (general, targeted, uniform annual general charge), and to set the date by which rates must be paid (s7- 26 LGRA);

· The power to authorise penalties to be applied to overdue rates, including how the penalty is to be calculated and the date that the penalty is to be added (s 57 LGRA); and

· The power to reset or replace rates (s119 – 130 LGRA); and

· The power to delegate the rating powers under the LGRA (s 132 LGRA).

All other functions, duties and powers can be delegated to staff to enable an efficient and effective rates collection service.

Bay of Plenty Regional Council undertakes the calculation of rates setting within the Finance Team, and this practice will continue as it is intrinsically linked to budget setting and revenue requirements. It is the collection of rates revenue that is now being brought in-house, and a new rates collection team has been established to carry out this function. The rates collection team is supported by the customer services team.

Delegations for functions, duties and powers across the whole rating cycle are proposed. The below diagram illustrates in which team the various responsibilities within the rating process fall.

Appropriate delegates have been identified for each Section of the Act, depending on the significance of the decision and which team the responsibility lies with. There is more than one delegate recommended for each Section of the Act, with the authority to be given severally rather than jointly to ensure that individuals’ unavailability (for example due to unexpected leave or busy work schedules) does not hinder the efficiency of decision making. Delegation has been allocated to role responsibilities rather than job titles, as job titles may change from time to time and they do not necessarily describe the relevance to the delegated responsibility.

The recommended additions to Council’s Delegations Manual in relation to the LGRA and Rating Valuations Act 1998 delegations is shown in Attachment 2.

4. Rates collection decisions

To enable efficient and effective rates collection there are a number of decisions that need to be made by Council. These decisions were discussed at the Council Workshop on 29 September 2021 and are outlined below. There is an interrelationship and some connectivity between collection decisions and how these impact on customers. The recommendations for each decision have been considered in context with one another, so if one of the recommendations is not approved, it is suggested that the others be reviewed in the context of what is an appropriate bundle.

4.1 Payment dates/instalments

Council is required to set the due date (or dates) for rates payments. This requirement means that we need to determine how many instalments per annum there will be, so that the due date(s) for payment can be set. Use of the term ‘instalment’ is a LGRA reference used for rates setting purposes. Although it is linked to payment and penalty dates, it does not mean that all payments have to be made by the instalment payment date. For example, if a customer has a payment plan in place and keeps to the plan, the instalment due date and penalties are not relevant. Payment plans are explained in more detail later on in this section.

4.1.1 Frequency of instalments

District and city councils have either two or four instalments per annum, and regional councils that collect their own rates generally have one. The reasons that regional councils only have one are:

· The annual rates are much lower than district or city council rates, thereby making a single payment more affordable for many ratepayers.

· There is a need to keep administration costs as low as possible so that they do not have a negative impact on rates. Costs for resourcing, printing and postage per instalment have been estimated at $350,000 for our 140,000 rating units.

Affordability of payment has been further considered and is supported by a direct debit payment plan process. If a customer sets up a direct debit to pay their annual rates on either a weekly, fortnightly or monthly basis, they can smooth payments across the year and they won’t be charged penalties for any amount still owing once the instalment due date has passed. A diagram showing the benefits of this payment plan option is shown in Attachment 1. Approximately 46,000 direct debit payment arrangements for rates are currently set up across the region through the TAs, indicating that many customers are already familiar with this process (circa 30%).

The following table shows the number of annual rates invoices across the region (in $500 ranges). For a single instalment, of the 135,000 invoices, 97% percent would be under $1,000.

Rates invoices
Value of annual rates invoice	Number of invoices in value range	Percentage of invoices
<$500	90,485	67.0%
$500 - $1,000	40,853	30.3%
$1,000 - $1,500	1914	1.4%
$1,500 - $2,000	616	0.5%
$2,000 - $2,500	289	0.2%
>$2,500	879	0.6%
	135,036	100%

A single annual instalment is the recommended option for the following reasons:

· Ninety seven percent of annual rates are less than $1,000 per annum.

· Payment plans are available for all customers to use the direct debit payment option to smooth payments over the entire year, either on a weekly, fortnightly or monthly basis, and penalties are avoided.

· The high cost of administering each instalment of $350,000 means that a single instalment is the most efficient option and has the least impact on rates affordability.

· TA rates are significantly higher than Regional Council rates, and this is the justification for multiple instalments.

· A single instalment is the sector benchmark for regional councils.

4.1.2 Due date for payment

In the Bay of Plenty region Western Bay of Plenty District Council and Tauranga City Council have two instalments, and all of the other councils have four. Phasing of the instalments over the financial year is shown in the below table.

Council	Instalment 1 Due Date	Instalment 2 Due Date	Instalment 3 Due Date	Instalment 4 Due Date
TCC	August	February	-	-
WBOPDC	September	February	-	-
RLC	August	November	February	May
ODC	August	November	February	May
KDC	August	November	February	May
WDC	August	November	February	May
TDC	August	November	February	May

For the current year and previous financial years, the months of September and October is when cash flow has been the tightest for Council, as the Quayside dividend and TLA rates have not yet been received.

Bay of Plenty Regional Council invoices customers directly for its Minor River and Drainage Scheme rates. There are approximately 580 rating units in these schemes. The invoices are usually sent out in July, with payment due in January. Now that we will be collecting the remainder of our rates directly, the Minor River and Drainage Scheme rates will be combined with all other rates in a single invoice.

The change for ratepayer customers in the number of instalments, consolidation of Minor River and Drainage Scheme rates with our other rates, and the timing with other councils’ due dates have been considered when proposing the due date for Regional Council rates payments.

The month of October is the recommended due payment period for the following reasons:

· It gives the rates collection team sufficient time between setting rates, applying remissions, and setting up customer payment plans before sending out invoices (which are likely to be printed in-house for the first time).

· It doesn’t clash with any of the other councils’ due dates, meaning that our ratepayer customers will experience a reduced financial pressure at rates payment time.

· October provides an appropriate distance from the Christmas and New Year period, where financial pressures can be high in many households.

· The later the due date in the financial year the more this will adversely impact council cash flow. The October instalment date is expected to provide council with sufficient revenue to meet all expected payment commitments at the right time during the financial year when combined with other major revenue sources. For every month the due date is delayed beyond October, there is an estimated impact of approximately $370,000 for the cost of funding operations.

· If ratepayer customers incorrectly attempt to pay their rates through the district or city councils, an error would not happen at peak rate payment periods for the city or district councils, thereby reducing the pressure on our local authority partners.

4.2 Early payment discounts

Rotorua Lakes Council (2%), Whakatāne District Council (2.5%) and Western Bay of Plenty District Council (3%) offer early payment discounts for full lump sum payment of the annual rates prior to the first instalment due date. The other Councils in the Bay of Plenty do not offer an early payment discount.

Because an early payment discount is only available when the full annual rates are paid in a lump sum, and before the due date of the first instalment, it is most suitable for use when there are multiple instalments.

There are positive and negative impacts of offering early payment discounts to be considered. It rewards those customers who can afford to pay their rates in a lump sum, but consequently disadvantages customers who can’t afford to pay their rates in a lump sum as they cannot access the early payment discount. Additionally, if these customers miss the due date for payment as well, and they are not on a payment plan, then a penalty is also applied which means that they have two layers of increased costs.

An early payment discount is intended to act as a payment incentive and assist council with cash-flow. It is especially beneficial to Council in a high interest environment where Council can invest the revenue it receives until it needs to be used.

The discount applied is based on an assumption made in the overall rates revenue level when it is set, and it is therefore paid through the cash flow benefit, and by all other ratepayers. If one instalment is implemented, then offering an early payment discount would be detrimental as Council may lose a significant amount of revenue through the discount being applied for everyone who pays their instalment in a lump sum prior to the due date. Modelling shows that if all ratepayers who are not currently on a direct debit payment plan paid their rates prior to the first instalment due date, the value in lost revenue of the early payment discount could be between $1m (for a 2% discount) and $1.5m (for a 3% discount). In a low interest environment, the burden of this shortfall in rates will be borne by ratepayers who cannot afford to pay their rates in a lump sum up front.

If Council wanted to provide early payment discounts, a new policy on early payments would need to be adopted.

The recommendation is that no early payment discount policy is adopted for the following reasons:

· Based on the low annual rates for the majority of customers, the discount for the individual customer is minimal (a savings of $10 (for a 2% discount) to $15 (for a 3% discount) on annual rates of $500).

· It disadvantages customers who cannot afford to pay their annual rates in a lump sum.

· The benefits received from those who take up the early payment discount is paid for by all other ratepayers in a low interest environment.

· Interest rates are low, therefore providing little benefit to Council.

4.3 Penalties for late payment

Council can choose to impose penalties of up to 10% for late payment of rates. Most local authorities in the Bay of Plenty charge the full 10%, with the exception of Kawerau District Council which charges 5%. Horizon, Otago and Waikato Regional Councils all collect their own rates and charge a 10% penalty.

The penalty can be applied to any outstanding balance more than once, for example after the due date for payment has passed, and again on any amount still outstanding at the end of the financial year.

Council can delegate authority to staff to waive penalties. The application of waivers are generally applied in one-off circumstances beyond the customer’s control like temporary extreme hardship, or an event such as an accident or injury which has caused or contributed to late payment. Waiving penalties for customers who have a direct debit payment plan in place is considered best practice and is applied now by city/district council staff. As previously mentioned, this process addresses affordability issues because the customer can smooth payment over the entire year without incurring penalties for the outstanding portion remaining beyond the due date.

The recommendation is that a consistent penalty rate of 10% is applied across the Region for the following reasons:

· It dis-incentivises wilful non-payment of rates.

· A 10% penalty rate is the sector standard for councils.

· It is the status quo for all councils across the region, except for Kawerau (98.7% of regional ratepayers).

· Penalties are not applied to customers who have a payment plan in place.

5. Considerations

5.1 Risks and Mitigations

There are a number of risks in relation to the rates collection process, regardless of whether they are being collected by the TAs or whether we are collecting them in-house. In-house rates collection will mean that we have better control over these risks, and Council can mitigate and manage the risks directly. Council will also be able to apply remissions and postponement policies consistently across the region, resulting in a more equitable system for our regional ratepayers.

Delivery of a new rates collection service is a complex undertaking, and there are specific risks in relation to the change. If the project is not delivered well, with effective communications to the public, and an easy transition for our ratepayers, there could be public dissatisfaction and reputational damage.

Other key risks are legal compliance, technology system implementation and reliance on TAs to provide the information we need. Mitigation and management plans for each of these risks are in place.

5.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. The project is designed to adapt to our communities views through the investigation of the impact rates collection could have on Council’s visibility of work, which takes into account the future impacts of climate change.

5.3 Implications for Māori

Collecting our own rates will give Bay of Plenty Regional Council greater control and enable it to apply equity across the region, and address economic disparity. In-house collection will mean that Council can establish its own rating policies and will no longer be bound by the TA’s policies.

With greater control over rating policies, Bay of Plenty Regional Council will have the ability to decide how to rate whenua Māori including decisions on rates arrears, remissions and consolidation of whenua Māori land blocks or multiple dwellings for rating purposes.

5.4 Community Engagement

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

Staff have begun planning a comprehensive communications and marketing campaign to accompany this work. Our key objective is to ensure ratepayers are informed about the changes taking place to their rates collection, and know what they need to do from 2022 onwards.

Our 2020 Residents Survey showed that there is a lack of awareness about who we are and what we do. Because of this, a further objective is to build awareness about the important mahi we do as an organisation, and the benefits that that mahi brings.

As we need to reach all ratepayers, we are looking at a multi-channelled approach which will use communications in both digital and traditional media. We expect some messaging will begin toward the end of this year, with an awareness campaign taking place in the first half of 2022.

All of this will ultimately culminate in some clear messaging to be included in the first rates demand to be sent to our ratepayers for the 2022/23 financial year outlining the reasons for the change and the work that we do.

5.5 Financial Implications

The financial implications set out in the 29 October 2020 Council report were developed from high level assumptions and calculations. More detailed costings have now been put together as information has become available, resourcing requirements have been identified, and the cost of technology system implementation and customer payment methods have been scoped. The decision around how many annual instalments will be implemented will have an impact on costs. The impact of this decision is quantified in the following budget implications section of this report.

5.5.1 Budget Implications

The Long Term Plan 2021-2031 (LTP) rates collection budget was set from high level assumptions and calculations, during the early stages of the rates implementation project. The budget in 2021/22 is $2.5m for rates collection and includes the cost of the TAs’ commission for the final year of collection and operating expenditure for setting up internal rates collection services. There is also a budget of $0.8 million for capital expenditure. The rates collection operating budget from 2022/23 onwards is $2m per annum.

LTP Budget	2021/2022	2022/2023
Operating Expenditure	$2.5m	$2m
Capital Expenditure	$0.8m

More detailed cost estimates for internal rates collection have now been identified. Two cost scenarios have been developed as the costs will depend on how many annual instalments are adopted. Rates collection includes both fixed and variable costs. The variable costs associated with supporting each instalment include printing and postage, an increased number of NZ Post transaction fees, scaling up staff resources to respond to a peak period of customer enquiries (from the time an invoice is sent out until the due date for payment has passed), and an increase in staff resources to process and administer rates payments. These costs are estimated as follows:

Printing and Postage costs $250,000

Rates staff increase $31,000

Customer Services staff increase $56,000

NZ Post payment agency services $31,000

Total per instalment $350,000

Estimated costs of internal rates collection have been compared against the costs we would have faced had we continued with the TA commission model over the LTP to identify the potential efficiencies of this initiative. Following Council’s decision on how many instalments will be implemented per annum, adjustments will be made through the Annual Plan process to the rates collection budget based on the revised figures below.

Expenditure	Y1 – Y5	Y5 – Y10	LTP Total
TLA Collection model	$10.5m	$13.m	$23.6m

One instalment	$9.4m	$8.2m	$17.7m
Efficiencies	$1.1m	$4.8m	$5.9m

Two instalments	$10.8m	$10m	$20.9m
Efficiencies	-$0.3m	$3m	$2.7m

Instalment frequency

Having a single annual instalment is expected to result in an estimated saving of $5.9m over the LTP in comparison to the previous TA collection model. If Council adopts two annual instalments, the savings is reduced to $2.7m over the LTP period.

6. Next Steps

· Annual Plan workshops will take place in November 2021 and February 2022 to further discuss Finance and Revenue policies, including Remissions and Postponements.

· Iwi engagement in relation to development of policies on Remissions and Postponements for Māori Freehold Land will take place under direction and guidance from Komiti Māori.

· Testing of the rates technology system will be completed in November 2021.

· The rates collection budget will be adjusted through the Annual Plan process, in accordance with the decision on how many instalments will be implemented per annum.

· The Delegations Manual will be updated to incorporate new delegations under the Local Government (Rating) Act 2002 and the Rating Valuations Act 1998.

· Work will continue on preparation of the draft new Rates Remission and Postponement Policies that will be required for Council to commence collecting its own rates from 1 July 2022, with public consultation to begin in early 2022 in conjunction with the Annual Plan process.

Attachments

Attachment 1 - Rates customer payment options - one and two instalments ⇩

Attachment 2 - Rating Delegations - Recommended Additions to Council's Delegations Manual ⇩