Agenda of Regional Council - Thursday, 12 September 2024

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.

Regional Council 12 September 2024

Recommendations in reports are not to be construed as Council policy until adopted by Council.

Agenda

E te Atua nui tonu, ko mātau ēnei e inoi atu nei ki a koe, kia tau mai te māramatanga ki a mātau whakarite mō tēnei rā, arahina hoki mātau, e eke ai te ōranga tonu ki ngā āhuatanga katoa a ngā tangata ki tō mātau rohe whānui tonu. Āmine.

“Almighty God we ask that you give us wisdom in the decisions we make here today and give us guidance in working with our regional communities to promote their social, economic, environmental and cultural well-being. Amen”.

1. Opening Karakia

2. Apologies

3. Public Forum

3.1 Summerhill Carpark Upgrade

Presented by: Gabrielle Walton and Richard Balm - Summerhill Charitable Trust

Attachment 1 - Summerhill Carpark Upgrade 2024 12

Attachment 2 - Summerhill Boffa Miskel Carpark Options March 2024 13

4. Items not on the Agenda

5. Order of Business

6. Declaration of Conflicts of Interest

7. Public Excluded Business to be Transferred into the Open

8. Minutes

Minutes to be Confirmed

8.1 Regional Council Minutes - 1 August 2024 23

8.2 Regional Council Minutes - 13 August 2024 35

8.3 Emergency Regional Council Minutes - 15 August 2024 40

9. Presentations

9.2 Lakes Freshwater Chair Professor Deniz Özkundakci: Annual Report 2023/24

Presented by: Professor Deniz Özkundakci
Andy Bruere

Attachment 1 - Lakes Freshwater Chair - 2023-2024 Annual Report BOPRC - updated 4

10. Reports

10.1 Chairperson's Report 4

10.2 Adoption of the Bay of Plenty Regional Navigation Safety Bylaws

This item will be distributed under a separate cover.

Attachment 1 - Final Clean Copy Council Adoption Version 1. pdf

Attachment 2 - Navigation Safety Bylaw - Placeholder for Attachment 4

Attachment 3 - Final Schedule 1 Navigation Safety Bylaws Maps

Supporting Document 1 - Final Tracked Changes Council adoption version 1.pdf

Decisions Required

10.3 Tauranga Harbour Ferry Service Trial – Options Assessment 4

10.4 Minor Rivers and Drainage Rates 2024/2025 4

10.5 The Waihi Estuary Catchment Freshwater Improvement Project in partnership with Te Wahapū o Waihī and co-funded by the Ministry for the Environment - approvals needed to progress constructed wetlands work 4

10.6 Ford Road Pump Station Replacement 4

10.7 Procurement Plan for Rivers and Drainage Capital Works 2024/25 4

Attachment 1 - 20240816 Procurement Plan for 2024-25 Capital Works (R&D) 4

10.8 Procurement Plan - Constructed Wetland Design and Implementation Services 4

Attachment 1 - Constructed Wetland Design and Implementation Services Comprehensive Procurement Plan 4

10.9 Amendment to Standing Orders: Virtual Attendance at Meetings 4

Attachment 1 - Amendments - Standing Orders (Adopted 24 November 2022) 4

Attachment 2 - Supplementary Order Paper - Local Government Electoral Legislation Bill - 18 July 2023 4

10.10 Quayside Tauriko Land Holding 4

11. Public Excluded Section

Resolution to exclude the public

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
11.1	Public Excluded Regional Council Minutes - 1 August 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
11.2	Quayside Holdings Limited - Westpac Borrowing Facility	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 maintain legal professional privilege; 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)(g); 48(1)(a)(i) Section 7 (2)(h).	To remain in public excluded.
11.3	Chief Executive’s 2023-2024 Annual Performance Review	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons.	48(1)(a)(i) Section 7 (2)(a).	On the Chief Executive's approval.
11.4	Chief Executive's 2024-2025 Performance Agreement and Development Plan	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons.	48(1)(a)(i) Section 7 (2)(a).	On the Chief Executive's approval.

Minutes to be Confirmed

11.1 Public Excluded Regional Council Minutes - 1 August 2024

Decisions Required

11.2 Quayside Holdings Limited - Westpac Borrowing Facility

11.3 Chief Executive’s 2023-2024 Annual Performance Review

11.4 Chief Executive's 2024-2025 Performance Agreement and Development Plan

12. Public Excluded Business to be Transferred into the Open

13. Readmit the Public

14. Consideration of Items not on the Agenda

15. Closing Karakia

Regional Council Minutes

1 August 2024

Regional Council

Open Minutes

Commencing: Thursday 1 August 2024, 10:00 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom (audio-visual meeting)

Chairperson: Chairman Doug Leeder

Members: Cr Malcolm Campbell

Cr Stuart Crosby

Cr Toi Kai Rākau Iti (via Zoom)

Cr Matemoana McDonald (via Zoom)

Cr Kat Macmillan

Cr Ken Shirley

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White (via Zoom)

Cr Kevin Winters

Cr Ron Scott (via Zoom)

In Attendance: Fiona McTavish – Chief Executive; Mat Taylor – General Manager, Corporate; Namouta Poutasi – General Manager, Strategy and Science; Chris Ingle – General Manager, Integrated Catchments; Reuben Fraser – General Manager, Regulatory Services; Kataraina O’Brien – General Manager – Strategic Engagement (via Zoom); Kumaren Perumal – Chief Financial Officer, Mark Le Comte – Principal Advisor, Finance; Lisa Power – Senior Planner; Hamish Lass – Team Leader, Bio Security; Jackie Healey - Community Engagement Advisor; Danni Manderson - Community Engagement Advisor; Lynda Frew – Legal Counsel (Commercial Lead); Steve Groom – Governance Manager; Oliver Haycock – Director, Public Transport; Andrew Williams – Manager, Transport Planning; Claudia Cameron – Committee Advisor

External presenters:

SSRF Youth Panel: Caitlin Harrison, Scarlett Munro, Amy Earles, Lily Finch, Annabel Caudwell and Kadin Tuck

Quayside Holdings Ltd: Mark Wynne and Lyndon Settle (both via Zoom) and Davide Caloni and Sam Newbury

Regional Software Holdings Ltd: Mark Donnelly and Mike Nield

Apologies: Deputy Chairperson Jane Nees and Cr Paula Thompson

Livestreaming Statement

Chairman Leeder reminded those present that this meeting was being livestreamed and recorded and that the recording would be made available on the Bay of Plenty Regional Council website following the meeting. Bay of Plenty Regional Council Meeting - 1 August 2024 (youtube.com)

1. Opening Karakia

A karakia was provided by Cr Lyall Thurston.

2. Apologies

Resolved

That the Regional Council:

1 Accepts the apology from Cr Jane Nees and Cr Paula Thompson tendered at the meeting.

Leeder/Thurston

CARRIED

3. Order of Business

Agenda item 9.1, School Sustainability and Resilience Fund (SSRF) Youth Panel Presentation, would be heard as the first item.

4. Declaration of Conflicts of Interest

Cr Stuart Crosby and Cr Te Taru White, as Quayside Directors, declared in interest in Agenda Item 10.4, Statement of Intent for Quayside Group, including Toi Moana Trust, and Agenda Item 11.4, Tauranga City Centre Bus Layover Site – Options Assessment.

Cr Ron Scott, as a national Councillor of the Automotive Association (AA), declared an interest in Agenda Item 10.6, 2024 LGNZ AGM Remits for Consideration.

5. Presentations

5.1

School Sustainability and Resilience Fund (SSRF) Youth Panel Presentation

Presentation: School Sustainability and Resilience Fund Presentation: Objective ID A4737555

Presented by: SSRF Youth Panel: Caitlin Harrison, Scarlett Munro, Amy Earles, Lily Finch, Annabel Caudwell and Kadin Tuck
BOPRC Staff: Jackie Healey - Community Engagement Advisor and Danni Manderson - Community Engagement Advisor

Resolved

· Thanked the additional funders for their support with the project: TECT, Bay Trust and Trust Horizon

· The SSRF Youth Panel shared their experience of being involved in the panel

· Highlighted the positive outcomes from projects that had been funded.

10.09 am – Cr Toi Kai Rākau Iti entered the meeting.

· Discussed the application numbers year on year

· Acknowledged that participatory funding helped develop civic education, awareness and skills

· Thanked BOPRC for their support.

Key Points - Members:

· Thanked all the SSRF panellists for their involvement in the project

· The success of the project was demonstrated through the increased funding it had received and the continuation of the programme.

Leeder/von Dadelszen

CARRIED

6. Minutes

Minutes to be Confirmed

6.1

Regional Council Minutes - 5 April 2024 and 24 April

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 5 April 2024 as a true and correct record.

von Dadelszen/Winters

CARRIED

6.2

Regional Council Minutes - 26 June 2024

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 26 June 2024 as a true and correct record.

Crosby/Thurston

CARRIED

7. Reports

7.1

Chairperson's Report

Presented by: Chairperson Doug Leeder

Key Points:

· Noted the quality of presentation from Vangelis Vitalis at the Primary Industries Summit in Wellington

· Noted the concrete off-highway road in Kawerau and the potential for future developments of a similar nature

· The visit to Ngāi Tamawhariua had been to raise awareness of the process undertaken by BOPRC during the gifting of the land at Hot Springs Road and to discuss the Long Term Plan, future plans for the land and the future involvement of Ngāi Tamawhariua.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/von Dadelszen

CARRIED

Decisions Required

7.2

Statement of Intent for Bay of Plenty Local Authority Shared Services Limited

Presented by: Kumaren Perumal – Chief Financial Officer and Mark Le Comte – Principal Advisor, Finance

Key Points:

· There had been no substantive changes from the draft Statement of Intent.

Resolved

That the Regional Council:

1 Receives the report, Statement of Intent for Bay of Plenty Local Authority Shared Services Limited.

2 Agrees that no formal feedback is required on the Bay of Plenty Local Authority Shared Services Limited’s Statement of Intent 2024-2027.

Winters/Crosby

CARRIED

7.3

Local Government Funding Agency Limited (LGFA) - Statement of Intent 2024-2027

Presented by: Kumaren Perumal – Chief Financial Officer and Mark Le Comte – Principal Advisor, Finance

Key Points:

· There had been an increase in cost of borrowing from five to 25 basis points

· Borrower Notes subscription had increased from 2.5% to 5%

· Change had been predominantly driven by a review of LGFA’s capital structure and financial position that aimed to improve financial resilience and to allow the company to better respond to borrowing demands from the sector.

In Response to Questions:

· The net operating profit levels were part of the capital structure requirements of a financial institution, as set by the Reserve Bank, and formed part of the LGFA’s strategy to cover future borrowing demands in the current economic climate.

Resolved

That the Regional Council:

1 Receives the report, Local Government Funding Agency Limited - Statement of Intent 2024-2027;

2 Agrees that no formal feedback is required on the Local Government Funding Agency Limited’s Statement of Intent 2024-2027.

von Dadelszen/Campbell

CARRIED

7.4

Statement of Intent for Quayside Group, including Toi Moana Trust

Presented by: Lyndon Settle (via Zoom) and Davide Caloni - representing Quayside Holdings Ltd

Supported by: Kumaren Perumal – Chief Financial Officer and Mark Le Comte – Principal Advisor, Finance

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

Key Points:

· Noted the apology from Mark Wynne – Chairman, Quayside Board

· Acknowledged the new Board and their collective goal of becoming a high performing company and governance team with a resilient portfolio

· The Investment Committee was now operational

· A review into management positions in relation to subsidiary investments was on-going

· A significant amount of work was underway regarding the Quayside portfolio and its position, with or without the Port of Tauranga sell-down

· External advice had been sought regarding the Statement of Investment Policy and Objectives (SIPO) and defining the reference portfolio to enable assessment of Quayside’s performance

· An internal audit function was being developed.

10:36 am – Cr Toi Kai Rākau Iti withdrew from the meeting.

· Stages 1a and 1b of the Rangiuru Business Park development were underway; this would impact the financial numbers going forward particularly as capital expenditure was due to continue

· Acknowledged BOPRC’s support around the extension of funding, but noted further conversations were required regarding future access to funding.

In Response to Questions:

· There was a focus on becoming a more active shareholder of the Port of Tauranga, particularly in relation to increased levels of engagement with mana whenua. This could potentially be included in future a Statement of Intent

· In order to meet the $47million forecast dividend for 2024-25, a top up would be required. This was not necessarily through the liquidation of capital but could be through realisation of gains.

Resolved

That the Regional Council:

1 Receives the report, Statement of Intent for Quayside Group, including Toi Moana Trust;

2 Agrees that no further formal feedback is required, at present, on the Quayside Group Statements of Intent.

Leeder/Thurston

CARRIED

7.5

Wallaby Programme funding agreements for 2024/25

Tabled Document 1 - Wallaby Management Programme - Further information: Objective ID A4740449

Presented by: Chris Ingle – General Manager, Integrated Catchments and Lynda Frew – Legal Counsel (Commercial Lead)

Key Points:

· Previous agreements had expired, meaning a new funding agreement was required

· Ministry of Primary Industries (MPI) funding baseline would continue.

In Response to Questions:

· The $6.9million from MPI was the national allocation for the programme.

Key Points - Members:

· Positive results of this programme were emerging, which supported its continuation

· Sought clarity as to whether the $2.25million baseline funding from MPI was per annum or in total.

Resolved

That the Regional Council:

1 Receives the report, Wallaby Programme funding agreements for 2024/25;

2 Notes that Bay of Plenty Regional Council administers wallaby management across the Bay of Plenty and Waikato regions;

3 Delegates to the Chief Executive the ability to approve and execute a Service Agreement with the Ministry for Primary Industries to deliver the central North Island component of the National Wallaby Eradication Programme for 2024/25 and any variations to that Service Agreement;

4 Delegates to the Chief Executive the ability to approve and execute any variations to the Multi-Party Funding and Collaboration Agreement, with Waikato Regional Council and Department of Conservation, to manage transfer of funds and resources to support the implementation of wallaby management activities across the Bay of Plenty and Waikato regions;

5 Notes the National Wallaby Eradication Programme Governance Group has approved funding of $2.55m (inclusive of council funding) for wallaby management within the Bay of Plenty and Waikato regions, pending confirmation by the Ministry for Primary Industries;

6 Notes Council’s contribution to the National Wallaby Eradication Programme is $300,000 plus in-kind support of 3 FTE.

Winters/Thurston

CARRIED

7.6

2024 LGNZ AGM Remits for consideration

Presented by: Steve Groom – Governance Manager

Cr Ron Scott as a national Councillor of the AA, declared an interest in this item and abstained from discussion and voting.

Key Points:

· This paper was to guide the BOPRC delegates at the Local Government New Zealand Annual General Meeting (LGNZ AGM) and to authorise the delegates to vote on BOPRC’s behalf.

Key Points - Members:

· Acknowledged that there would be discussion on the day of the AGM, and delegates would be expected to use their own judgment if alternative ideas were presented, unless it was a major departure from the remit

· Cr Ken Shirley noted his opposition against Remit 4, regarding the entrenchment of Māori ward seats for local government

· Remit 8, regarding goods and services tax (GST) revenue sharing with local government, was likely to create debate at the AGM, suggested allowing the delegates to make an informed decision on the day.

Resolved

That the Regional Council:

1 Receives the report, 2024 LGNZ AGM Remits for consideration;

2 Notes staff recommendations on relevant remits and authorises Regional Council’s voting delegates to vote on Regional Council’s behalf at the LGNZ AGM, based on guidance in this meeting and information obtained at the AGM.

Macmillan/Crosby

CARRIED

7.7

Regional Pest Management Plan: Partial Review

Presented by: Lisa Power – Senior Planner; Hamish Lass – Team Leader, Bio Security; Chris Ingle – General Manager Integrated Catchments and Namouta Poutasi – General Manager, Strategy and Science

Key Points:

· The surveillance programmes around Caulerpa and Gold Clams were already underway

· There was potential that surveillance may need to be increased depending on the outcome of the review, this may create a financial implication in future financial years

· Should an incursion occur prior to the report’s conclusion, staff would return to Council to provide advice and seek additional funding.

Key Points - Members:

· Noted that there had been no provision made in the BOPRC Long Term Plan 2024-2034 (LTP) for implementation, funding would be considered as part of the next Annual Plan.

Resolved

That the Regional Council:

1 Receives the report, Regional Pest Management Plan: Partial Review;

2 Approves the Regional Pest Management Plan: Review Proposal for notification;

3 Delegates to the General Manager, Strategy and Science the authority to approve any minor changes, including grammatical and formatting, to the Regional Pest Management Plan Review Proposal prior to its release for notification;

4 Notes the Regional Pest Management Plan review proposes Exotic Caulerpa and Corbicula to be included in the Regional Pest Management Plan and this will require decisions on additional funding;

5 Is satisfied the requirements of Sections 70, 71 and 72 (in part) of the Biosecurity Act 1993 have been complied with;

6 Approves the Regional Pest Management Plan Review Proposal consultation approach (section 3.4) to be undertaken as required by section 72(5) of the Biosecurity Act 1993;

7 Approves the approach to summarise, report on and consider submissions on the Regional Pest Management Plan Review;

8 Approves the minor amendments to the Regional Pest Management Review specified in section 2.9 of this report.

Winters/Campbell

CARRIED

10.53 am - The meeting adjourned.

11:13 am - The meeting reconvened.

7.8

Statement of Intent for Regional Software Holdings Limited (RSHL)

Presentation: RSHL Presentation for BOPRC - 1 August 2024: Objective ID A4734380

Presented by: Mark Donnelly - Chief Executive, RSHL and Mike Nield – Chair of the Board, RSHL

Key Points:

· Introduced RSHL as a collaborative initiative which allowed Regional Councils and Unitary authorities to undertake shared services and collaborative Initiatives

· The direction was set by Councils, with RSHL enabling and facilitating the delivery of solutions

· The current project, Iris NextGen, was working through the design and testing phases

· Te Uru Kahika Executive Director and Team virtual offices was a new initiative under the Sector Work Programmes umbrella to promote best practice and shared services across the sector

· Outlined the key objectives and performance measures for RSHL and the benefits to the Councils involved.

In Response to Questions:

· Some Territorial Authorities (TAs) were being included in projects and programmes of work, however, there were other organisation within local government who supported shared services for TAs and these arrangements often worked well regionally as opposed to nationally as RSHL operated

· Of the 16 potential shareholders (Regional Councils and Unitary Authorities), there were 10 at present, this was often due to the differing priorities of Councils.

Resolved

That the Regional Council:

1 Receives the report, Statement of Intent for Regional Software Holdings Limited;

2 Agrees that no formal feedback is required on the Regional Software Holdings Limited’s Statement of Intent 2024-2027.

Leeder/Macmillan

CARRIED

7.9

Tauranga Harbour Ferry Service Trial – Options Assessment

Presented by: Oliver Haycock – Director, Public Transport and Andrew Williams – Manager, Transport Planning

Key Points - Members:

· A deferral of this item to the next meeting of Council would allow confirmation from the recently elected Tauranga City Council that this project was to be supported, and for absent BOPRC (Tauranga Constituency) Councillors to be present for the debate and vote.

A procedural motion was moved:

Resolved

That the Regional Council:

1 Agrees this item be left to lie on the table until a future meeting of the Regional Council.

Thurston/von Dadelszen

CARRIED

Original motion:

1 Receives the report, Tauranga Harbour Ferry Service Trial – Options Assessment;

2 Endorses one of the following three options:

(a) Option 1: Provide funding of up to $1.4million over two years to Tauranga City Council to contribute to the costs incurred by Tauranga City Council in engaging Hauraki Express to provide a ferry service; Or:

(b) Option 2: Provide funding of up to $1.4million over two years to Tauranga City Council to support a ferry service which is conditional on Tauranga City Council:

(i) Undertaking an open market procurement process to appoint a service provider to deliver the trial; Or:

3 Approves, that in the event it endorses Option 1 or Option 2, funding is conditional on Tauranga City Council reconfirming its intent to implement the service via a council resolution;

4 In the event it endorses Option 1 or Option 2, endorses one of the following funding options:

(a) Fund from the Regional Fund Reserve; Or

(b) Fund 2024/25 from the Regional Fund Reserve, and 2025/26 to 2026/27 from Rates; Or

5 Approves, that in the event it endorses Option 1 or Option 2, delegates to the Chief Executive the ability to approve and execute a funding agreement with Tauranga City Council (and any variations) and approve payments under the funding agreement;

6 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

8. 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:

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
8.1	Public Excluded Regional Council Minutes - 26 June 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.2	Public Excluded Regional Council Minutes - 5 April 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.3	Public Excluded Regional Council Minutes - 24 April 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.4	Tauranga City Centre Bus Layover Site - Options Assessment	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).	On the Chief Executive's approval.

Leeder/Winters

CARRIED

11.55 am – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council

Regional Council Minutes

13 August 2024

Regional Council

Open Minutes

Commencing: Tuesday 13 August 2024, 9:30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom (Audio Visual meeting)

Deputy Chairperson: Deputy Chairperson Jane Nees – Acting Chair for the purposes of this meeting

Members: Cr Malcolm Campbell

Cr Stuart Crosby

Cr Toi Kai Rākau Iti – via Zoom

Cr Kat Macmillan

Cr Matemoana McDonald

Cr Ron Scott

Cr Ken Shirley

Cr Paula Thompson – via Zoom

Cr Lyall Thurston – via Zoom

Cr Te Taru White – via Zoom

Cr Kevin Winter – via Zoom

In Attendance: BOPRC: Fiona McTavish – Chief Executive, Reuben Fraser – General Manager, Regulatory Services, Steve Groom – Governance Manager, Claudia Cameron – Committee Advisor, Tone Nerdrum Smith – Senior Advisor Governance

Jesse Brennan – Federated Farmers

Apologies: Chairman Doug Leeder, Cr Andrew von Dadelszen, Cr Te Taru White, Cr Toi Iti

Livestreaming Statement

Chair Cr Nees reminded those present that this meeting was being livestreamed and recorded and that the recording would be made available on the Bay of Plenty Regional Council website following the meeting Bay of Plenty Regional Council - Representation Review Hearings and Deliberations - 13 August 2024 (youtube.com).

1. Opening Karakia

A karakia was provided by Cr Te Taru White.

2. Apologies

Resolved

That the Regional Council:

1 Accepts the apologies from Chairman Doug Leeder, Cr Andrew von Dadelszen, Cr Toi Iti (late arrival) and Cr Te Taru White (possible early departure) tendered at the meeting.

Campbell/Macmillan

CARRIED

3. Declaration of Conflicts of Interest

None declared.

9.35 am – Cr Iti entered the meeting.

4. Reports

Decisions Required

4.1

Bay of Plenty Regional Council Representation Review 2024 - Hearings Report

Jesse Brennan – Federated Farmers (Sub ID 28):

Key Points:

· Appreciated the opportunity to speak to the submission

· Federated Farmers was not-for-profit interest organisation; membership based and was involved in policies at all levels

· Important to note that a number of Eastern Bay of Plenty farmers carried significant costs through the targeted rates of the river schemes, which typically meant higher costs were born by a lower number of residents than in urban areas

· Members had expressed concerns that decisions were made by Council representatives who might not fully understand the needs and expectations of the farming community

· Submitted that increased representation in the Eastern Bay of Plenty would better reflect and represent the affected communities

· Proposed a redistribution of representation by reducing Councillor numbers from five to four in the Tauranga General Constituency, and increasing from two to three in the Eastern Bay of Plenty General Constituency, thereby retaining the overall maximum of 14 representatives

· Recognised that additional representation would not necessarily mean a member of the farming community was elected

· Noted that the submission focussed on redistribution of the General Constituency representation

· Supported and appreciated the value of the Eastern Bay Māori representative and had expressed this in the submission.

Key Points - Members:

· Noted that having a Māori Constituency representative meant there were three Councillors in total currently representing the Eastern Bay of Plenty.

Resolved

That the Regional Council:

1 Receives the report, Bay of Plenty Regional Council Representation Review 2024 - Hearings Report;

2 Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachment:

(a) ALL SUBMISSIONS Representation Review 2024 - Unredacted version under Section 48(1)(a)(i) Section 7 (2)(a) as withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons and that this attachment remain in Public Excluded.

Scott/Shirley

CARRIED

Minute Note: As there was no request for discussion of the public excluded attachment, it was received in the public section and there would be no need to exclude the public.

4.2

Bay of Plenty Regional Council Representation Review 2024 - Deliberations Report

Presented by: Steve Groom – Governance Manager and Claudia Cameron – Committee Advisor

Key Points:

· Noted that the speaker’s view reflected that expressed in several of the submissions

· A redistribution of the current representation, as submitted by Federated Farmers, would significantly affect the +/-10% representation, however there was precedent of this occurring at other councils and could be acceptable if well supported by evidence of overall benefits

· Outlined key aspects of the proposals that Council had reviewed and how the status quo proposal was considered to offer the fairest representation for the Bay of Plenty region.

Key Points - Members:

· Recognised the significant number of options that had been worked through; the legislative restraints and parameters of representation; and the many, and often conflicting, considerations that needed to be taken into account

· Considered this to be a sustainable proposal, but noted that there had been changes in representation since the local government reforms in 1989, e.g. the reduction of General Constituency representation in Rotorua from four to two

· Recognised the significant value provided by the three Māori Councillors, established under the Bay of Plenty Regional Council (Māori Constituency Empowering) Act 2001

· Complimented the clear and comprehensive report, reflecting the thorough review process undertaken

· Recognised the challenges other councils currently experienced with regards to Māori representation

· Noted that sector group interests did not necessarily link to specific geographic areas or constituencies.

Resolved

That the Regional Council:

1 Receives the report, Bay of Plenty Regional Council Representation Review 2024 - Deliberations Report;

2 Resolves, in accordance with the provisions of the Local Electoral Act 2001 and following its consideration of the public submissions received to its 2024 initial representation arrangement proposal, to adopt its initial proposal as its final proposal for the 2025 and 2028 triennial elections being:

General Constituencies

Eastern Bay of Plenty 2 Elected Members

Rotorua 2 Elected Members

Tauranga 5 Elected Members

Western Bay of Plenty 2 Elected Members

Māori Constituencies

Mauao 1 Elected Member

Kōhi 1 Elected Member

Ōkurei 1 Elected Member

Total 14 Elected Members

3 Notes that in considering matters raised by submitters, the total number of councillors is to remain at 14 to ensure fair and effective representation having regard to the population statistics and communities of interest of each constituency in the region;

4 Notes that the final representation proposal does not comply with section 19V (2) of the Local Electoral Act 2001 and therefore must be referred to the Local Government Commission for determination. However, as in accordance with section 19V(3)(b) of the Local Electoral Act 2001, the Regional Council considers the initial proposal ensures effective representation of communities of interest;

5 Notes that the review is subject to the provisions of the Bay of Plenty Regional Council (Māori Constituency Empowering) Act 2001 and is therefore not required to consider section 19ZH or schedule 1A of the Local Electoral Act 2001 as part of this review;

6 Notes that the Final Representation Proposal will be publicly notified in accordance with section 19N of the Local Electoral Act 2001 and opportunity will be provided for appeals to be lodged during a one month appeals period;

7 Directs staff to respond to each submitter outlining the final representation proposal;

8 Delegates to the Chief Executive the responsibility for making any non-consequential edits or amendments to the final proposal that may be required prior to it being published.

Winters/Crosby

CARRIED

5. Closing Karakia

A karakia was provided by Cr Te Taru White.

10.00 am – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council

Date	Meeting / Engagement	Comment
24 July	Regional Sector Meeting – Video conference	Catch-up meeting before the Local Government New Zealand Conference on 21-23 August.
Meeting with University of Waikato Professor Alister Jones – Tauranga	Discussed the Marine Research Centre in Tauranga.
Meet and greet event with newly elected Tauranga City Council Mayor Mahé Drysdale – Tauranga	Mayor James Denyer also in attendance.
25 to 26 July	Port of Tauranga Limited Meetings – Mount Maunganui	Attended.
26 July	Tūhoe 10-year Crown Settlement Anniversary Dinner – Tāneatua	Attended.
29 July	Finance and Expenditure Committee Hearing on Climate Adaptation Inquiry – Video conference	Presented Te Uru Kahika’s (Regional and Unitary Councils Aotearoa) submission on the Inquiry.
1 August	Meeting with West Coast Regional Council – Video conference	Attended
21 August	Farewell event for Port of Tauranga Ltd Director Alastair Lawrence – Auckland	Attended.
22 August	Port of Tauranga Ltd Meetings – Auckland	Attended.



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Oliver Haycock, Director, Public Transport; Andrew Williams, Manager, Transport Planning and Katri Harmoinen, Transport Planner
Report Authoriser:	Evaleigh Rautjoki-Williams, Digital Manager (Chief Digital Officer)
Purpose:	To provide the Regional Council with options for supporting a ferry service on the Tauranga harbour.

Tauranga Harbour Ferry Service Trial – Options Assessment

Executive Summary

Earlier this year, marine transport operator Hauraki Express (HE) put forward a proposal seeking support to deliver a passenger ferry trial service on the Tauranga harbour, connecting Tauranga’s CBD and downtown Mount Maunganui.

The proposal has been escalated through both Tauranga City Council (TCC) and Bay of Plenty Regional Council’s (Regional Council) respective governance processes.

This matter came before the Regional Council on 1 August 2024, where it was decided that the item should be left to lie on the table until a future meeting of the Regional Council. This was to allow confirmation from the recently elected Tauranga City Council that this project was to be supported, and for absent BOPRC (Tauranga Constituency) Councillors to be present for the debate and vote.

The governance journey for this matter is outlined below:

1. The Tauranga Public Transport Joint Committee (TPTJC) meeting on 4 June 2024;

2. Tauranga City Council meeting on 20 May 2024 where it chose to underwrite up to a maximum of $1.4M to support HE’s proposal;

3. The Public Transport Committee (PTC) meeting on 12 June 2024;

4. The Regional Council meeting on 1 August, where the item was left to lie on the table; and

5. Tauranga City Council meeting on 26 May 2024, where it reconfirmed support for the project.

Three options are presented in this paper for consideration by the Regional Council.

Recommendations

That the Regional Council:

1 Receives the report, Tauranga Harbour Ferry Service Trial – Options Assessment;

2 Endorses one of the following three options:

(a) Option 1: Provide funding of up to $1.4million over two years to Tauranga City Council (TCC) to contribute to the costs incurred by TCC in engaging Hauraki Express to provide a ferry service; Or:

(b) Option 2: Provide funding of up to $1.4million over two years to TCC to support a ferry service which is conditional on TCC:

(i) Undertaking an open market procurement process to appoint a service provider to deliver the trial; Or:

(c) Option 3: Do not provide funding support for a Tauranga harbour ferry trial;

3 In the event it endorses Option 1 or Option 2, endorses one of the following funding options:

(a) Fund from the Regional Fund Reserve; Or

(b) Fund 2024/25 from the Regional Fund Reserve, and 2025/26 to 2026/27 from Rates; Or

(c) Fund 2024/25 from the Regional Fund Reserve, to be repaid by Rates, and 2025/26 to 2026/27 from Rates;

4 Approves, that in the event it endorses Option 1 or Option 2, delegates to the Chief Executive the ability to approve and execute a funding agreement with TCC (and any variations) and approve payments under the funding agreement;

5 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

1. Introduction

1.1 The Hauraki Express Proposal

Earlier this year, the ferry transport operator Hauraki Express Limited (HE) submitted a proposal to trial ferry services on the Tauranga harbour to the Regional Land Transport Plan (RLTP) process, and subsequently presented to a meeting of the Tauranga Public Transport Joint Committee (TPTJC).

HE’s proposal seeks support for the operation of a passenger and bike ferry trial covering a 5km stretch of Tauranga harbour between Tauranga’s CBD and Mount Maunganui, for a period of 2 years. Two ferries are proposed, that would:

§ Be capable of carrying 30 passengers and 15 bicycles;

§ Have an approximate voyage time of 15-17 minutes, wharf-to-wharf;

§ Operate for 330 days per year with two vessels making 20 harbour crossings – 40 trips in total – per day;

§ Utilise existing shore-based infrastructure where possible at each end – Sailsbury wharf (Mount Maunganui) and the boat ramp at The Strand (Tauranga CBD); and

§ Use 12m long vessels, designed to load/unload either bow-on to boat ramps or alongside floating jetties.

A boat with people on it

Description automatically generated

Figure 1: Hauraki Express concept ferry

Figure 2: Proposed Hauraki Express ferry route

The proposal has gained some media attention with articles in the Bay of Plenty times, Radio New Zealand, Sunlive and Scoop over recent weeks.

1.2 Governance Process to Date

The proposal has moved through TCC and Regional Council’s governance processes. The following meetings and associated decisions have resulted:

§ TPTJC meeting – 1 May 2024: the Committee requested that the two-year trial for a ferry service between the Tauranga CBD and Mount Maunganui be actioned and the Committee be provided with options at the next meeting to be held 4 June 2024.

§ Tauranga City Council meeting – 20 May 2024: Commissioners approved the recommendation to underwrite up to 50% of the funding required to trial ferry operations up to a maximum amount of $1.4M payable over the first two years of the trial (i.e., $700,000 per annum). The same recommendation was supported by a note which stated that the underwrite is conditional on the other 50% being funded by Regional Council.

§ TPTJC meeting – 4 June 2024: the Committee was provided with an options paper, of which the options were ‘do nothing’ or ‘endorse the proposal’. The Committee resolved to endorse the proposal, progress the trial within agreed financial limits, subject to Regional Council approval and to present a report to PTC on 12 June 2024 seeking endorsement to proceed with the proposal and to seek Regional Council funding.

§ PTC meeting – 12 June 2024: the Committee was provided with an options paper, of which the options were ‘do nothing’ or ‘endorse the proposal’. The Committee resolved to endorse the proposal, progress the trial and requested that staff report to Regional Council on 1 August 2024 to seek a 50% financial share of the operational costs, up to a maximum of $1.4M over the two-year trial period.

§ Regional Council meeting – 1 August 2024: Councillors were provided with an options paper but resolved that the item be left to lie on the table until a future meeting of the Regional Council. A deferral of this item to the next meeting of Council would allow confirmation from the recently elected Tauranga City Council that this project was to be supported, and for absent BOPRC (Tauranga Constituency) Councillors to be present for the debate and vote.

§ Tauranga City Council meeting – 26 August 2024: Councillors reconfirmed the recommendation to underwrite up to 50% of the funding required to trial ferry operations up to a maximum amount of $1.4M payable over the first two years of the trial (i.e., $700,000 per annum). The same recommendation was supported by a note which stated that the underwrite is conditional on the other 50% being funded by Regional Council.

At the meeting of TCC on 26 August 2024, it was clarified that the funding contribution from councils would be used to underwrite operational costs only and costs associated with capital expenditure would remain the responsibility of HE.

It was also stated during this meeting that any revenue collected would be used to offset both council’s contributions toward the trial.

It was noted that the decision being sought from councils was to indicate “in principle” support, which would enable HE to conclude processes to obtain third party finance. Additionally, TCC’s report noted that their commitment to the proposal is contingent upon full due diligence, market research, and funding support.

Subject to “in principle” support from both councils, TCC will progress negotiations around commercial terms and operational arrangements with HE.

It was stated in the meeting that TCC staff will bring the proposal back before their council once this next step had been completed, however it should be noted that this final step is not outlined in TCC’s report or reflected in the resolutions made at the meeting.

1.3 Previous Work

A feasibility study on the provision of ferry services in the Western Bay of Plenty was completed in 2023 by MRCagney, the findings of which were reported to the PTC. This study predominantly considered the suitability of ferries for providing public transport, as opposed to a service predominantly serving leisure or tourism markets.

The study recommended that due to the high operational and capital costs of ferry services compared to bus, that “it would be prudent in the short- to medium-term to make best use of the existing albeit underutilised bus mode of public transport in advance of significant investment in a new to the region public transport mode”.

On 14 November 2023 the PTC resolved to defer any further investigations into Tauranga and Western Bay of Plenty ferry services until the development of 2027 long terms plans and the 2027-30 National Land Transport Programme.

1.3.1 Comparable Services

The feasibility study considered the success factors of other ferry services operated in New Zealand. The following two case studies are most applicable to the Tauranga context.

Wellington

Greater Wellington Regional Council contracts a ferry service between Days Bay on the eastern shore of Wellington Harbour and Queens Wharf in Wellington’s City Centre. This service targets both commuters and leisure passengers. The service:

§ Operates between 6:30 am and 8:00 pm on weekdays, with frequencies every twenty to thirty minutes during weekday peaks, and approximately hourly between 10:00 am and 6:00 pm on weekends.

§ The route is 10.5 km by sea and takes twenty-five minutes direct, or forty minutes with an intermediate stop at Mātiu/Somes Island.

§ By land is 21 km and takes approximately fifty minutes by bus, and up to an hour by car during peak traffic conditions. Therefore, travel time and distance by ferry is highly competitive with land transport, taking approximately half the time of the bus or driving during commuter peaks.

§ Transports approximately 15,000 passengers per month^{^[1]}.

Christchurch

Environment Canterbury provides a contracted ferry service across Lyttleton harbour, between the village of Diamond Harbour and Lyttleton. This service targets both commuters and leisure passengers. The service:

· Operates every thirty minutes at peak times, and approximately hourly across the day between 6:30 am and 11:00 pm weekdays and Saturdays, and hourly from 8:00 am to 8:00 pm on Sundays.

· This route takes twelve minutes to traverse 3 km from the southern shore to the north.

· Provides a travel time advantage comparative to the land route. The trip around the harbour by the coastal road is 29 km and takes approximately forty minutes by car, more than three times longer than the ferry. An alternative bus service does not operate between Diamond Harbour and Lyttleton.

Application to the Tauranga Context

Both of the above case studies target both the commuter and leisure market, which would be similar in the Tauranga context. It should be noted that the independent feasibility study identified other success factors, which may not be applicable to Tauranga:

· Places where a journey by road is much slower - both Mount Maunganui and Te Papa are peninsulas. While there is significant journey time variability by both time of day and season, the road journey time differential is not as extreme as other New Zealand case studies.

· Places with strong bus feeder service – while both wharf locations are within a reasonable proximity to some bus routes, there is currently no integration. Street layout and geography would present challenges to achieve this in the short term.

· Places without duplicative public transport services – a ferry between Mount Maunganui and Tauranga CBD would be in direct competition with an existing urban bus route (5).

1.3.2 Specific Considerations

Integration with Existing Public Transport Network

The ferry would compete directly with Baybus Route 5 (Tauranga CBD – Mount Maunganui – Bayfair). This route runs every 15 minutes, with a timetabled journey time of between 21 and 24 minutes (compared to a proposed ferry journey time of 15 minutes).

It is the third poorest performing Baybus route in terms of delays and cancellations, with most of these attributed to traffic congestion.

It is challenging to estimate the extent to which the ferry trial would abstract demand away from Baybus services, but it is anticipated that there will be some impact. The higher ferry fare of $6 (compared to the full adult bus fare of $2.72) is likely to limit abstraction, but should cheaper fares or concessions be offered on the ferry, abstraction will be more significant.

Assessment of potential patronage levels

Forecasting demand for new services is challenging and is usually informed by a combination of understanding existing travel patterns, survey work and learnings from pilot schemes or trials. Demand from tourism is particularly difficult to forecast.

Indication of Commuter Market Size

The feasibility study completed in 2023 utilised data from the 2018 census to infer the demographics of the population within a 15-minute walk of Sailsbury Wharf, Mount Maunganui. This analysis indicated that:

· 2,686 people lived within this catchment, of which 1,759 (65%) were employed either full or part time.

· Of these 16% of people worked from home, 70% commuted in a private or company vehicle, and 2% by public bus.

· 312 people commuted between Mount Maunganui and Tauranga CBD (18% of the employed population within the catchment area).

This is supported by analysis shown on the website Commuter Waka^{^[2]}, which also utilises 2018 census data. This indicates that 288 residential workers and students commute from the “North Mount Maunganui” to the “Tauranga Central” census zone, with 27 commuting in the other direction.

The shortcomings of the 2018 census data are acknowledged, but this was the best available data at the time the study was undertaken. Detailed data from the 2023 census is not scheduled to be published by Stats NZ until October 2024.

Current Public Transport Demand

Over the past 12 months (1 August 2023 – 31 July 2024), it has been estimated^{^[3]} that approximately 70,000 passengers travelled between Tauranga CBD and Mount Maunganui on Baybus Route 5, 80% on weekdays and 20% on weekends – this equates to an average of approximately 220 trips per weekday. Of these, approximately one third were full fare paying adults, with two thirds travelling on a concessionary fare.

HE forecast 158,400 passengers per year for the ferry trial, over double the amount currently carried by Baybus.

The following Auckland ferry services transport a comparable number of passengers^{^[4]}:

· Birkenhead/Northcote Point – Auckland CBD: 170,000 per annum

· Gulf Harbour – Auckland CBD: 182,000 per annum

· Hobsonville/Beach Haven – Auckland CBD: 170,000 per annum

· West Harbour – Auckland CBD: 172,000 per annum

Relevant Survey Data

We are not aware of any relevant surveys undertaken since the 2018 census, either by BOPRC, HE or any third parties to further inform detailed patronage forecasting.

Subsidy Requirement Per Passenger

HE have proposed a $6 flat fare per trip, with their business plan indicating a subsidy requirement of $8.84 per passenger. Baybus Route 5 delivers a revenue recovery ratio of 21%, with average revenue per passenger of $1.08. Subsidy per trip is therefore half of that indicated for the ferry trial and attracts 51% funding from NZTA.

Collection of Revenue

HE have assumed that in addition to accepting card payments, that the Regional Council will install RITS ticketing equipment (Bee Card) on the ferries.

Regional Council will be decommissioning the RITS ticketing system and transitioning to the National Ticketing Solution (NTS), with implementation of the new ticketing system currently indicated for mid-late 2025, likely prior to the ferry service becoming operational.

The feasibility of installing NTS ticketing on the ferry trial is yet to be fully understood.

1.4 Support from Waka Kotahi New Zealand Transport Agency

Waka Kotahi New Zealand Transport Agency (NZTA) are not currently in a position to financially support a ferry trial, as funding is not identified in and has not been requested from the National Land Transport Fund (NLTF).

Requests for NLTF funding are usually put forward as part of the Regional Land Transport Plan (RLTP) process. A submission to the 2024-2034 RLTP from Hauraki Express was rejected by the Regional Transport Committee.

For an investment of this size, a business case would be required. It would need to justify a value for money case for a ferry as a transport service (as opposed to a service predominantly serving the leisure or tourism markets), and given the findings of the feasibility study outlined in Section 1.3, it is not expected that a compelling case could be made to NZTA at this time.

As a result, a ferry service would not currently be classed as a public transport service from NZTA's perspective and therefore any contract for services is not required to sit with the Public Transport Authority^{^[5]} (Regional Council).

Alignment with Strategic Framework

A Vibrant Region	We lead regional transport strategy and system planning, working with others to deliver a safe and reliable public transport system.
The Way We Work	We continually seek opportunities to innovate and improve.

1.4.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

þ Social

Low - Positive

þ Economic

Low - Positive

1.5 Significance

The recommended proposal/decision has been assessed against the criteria and thresholds in Council’s Significance and Engagement Policy, and can be considered:

Medium

The decision is not within existing budgets and does not implement the current long term plan or annual plan.

2. Options assessment

2.1 Option 1: Provide funding to TCC to support the ferry trial proposed by Hauraki Express

Option 1 provides for the provision of funding for the HE proposal for 50% financial share of operational costs, up to a maximum of $1.4M over two years.

This would progress as a direct appointment by TCC of HE to provide a trial ferry service, which could potentially be operational by mid/late-2025.

As noted above, the TCC funding allocation was reconfirmed at its 26 August 2024 Council meeting.

2.1.1 Option 1 - Procurement

Option 1 would see TCC hold the contractual relationship with HE, and Regional Council providing the funding support in the form of a funding grant directly to TCC. TCC have confirmed they are willing to hold the contract with the service provider.

TCC is the contracting party procuring services and TCC has considered direct appointment of HE was permitted within its procurement policy and was the appropriate course of action.

This procurement approach is favoured by TCC, as it reduces the amount of time required to implement the service.

2.1.2 Option 1 - Financial implications

The current proposal is one that, if endorsed, would see costs shared between Tauranga City Council, Regional Council, and HE, as follows:

§ Operating Expenditure (OPEX): Approximately $1.4M per annum with costs spilt evenly between Regional Council and TCC at $700K per council per annum for two years, with Regional Council’s total contribution capped at $1.4M.

§ Capital Expenditure (CAPEX): HE would be responsible for all capital investment for the vessels. The maintenance of wharf side and supporting infrastructure is assumed to be the responsibility of TCC.

Table 6, at Section 3, presents the financial implications for Option 1.

2.1.3 Option 1 - Roles and responsibilities

Table 1: Option 1 - respective roles and responsibilities

· Hauraki Express

· TCC

· Regional Council

· Fund the capex of the ferry vessels.

· Include the ferries in a MTOP (Maritime Transport Operator Plan) and be responsible for full compliance with maritime rules.

· Employ crew and operate the ferries.

· Hold the contractual relationship with HE.

· Fund up to a maximum of $700,000 per annum for two years for the purpose of a trial ferry service.

· Distribute revenue evenly to offset both TCC and Regional Council’s OPEX contributions.

· Make available and maintain wharf side and supporting infrastructure.

· Fund up to a maximum of $700,000 per annum for two years for the purpose of a trial ferry service.

· It is expected that all parties would partake in marketing and promoting the ferry service.

2.1.4 Option 1 - Benefits, issues and risks

Table 2: Option 1 - summary of benefits, issues and risks

	Option 1: Fund the HE proposal
Benefits	- TCC procuring via direct appointment would likely be the quickest way to commence a ferry service trial. - By not holding the contract, the trial will not place significant additional burden on Regional Council staff. - It will test the anecdotally high levels of public interest in trialling a ferry service. - Opportunity for both TCC and Regional Council to evaluate the true viability of ferry services for delivering public transport, including their ability to alleviate traffic congestion in the Mount Maunganui area & Hewletts Road corridor.
Issues	- The $1.4M of expenditure required to deliver this option is currently unbudgeted by Regional Council. - An appropriate monitoring programme would need to be developed to measure success. This would need to consider public transport outcomes, patronage targets, farebox recovery.
Risks	- Excluding a competitive tender process may result in missed opportunities for options that deliver better value for money. - The ferry trial could abstract revenue from existing Baybus services.

2.2 Option 2: Provide funding to support a ferry trial, contingent on an open procurement process

Option 2 mirrors Option 1 but would make Regional Council’s funding contingent on an open market procurement process, undertaken by TCC.

Option 2 has not previously been tabled for consideration. Both the TPTJC and PTC have solely been asked to consider whether they support the HE proposal or not.

Option 2 has now been put forward in response to concerns around the perceptions associated with directly appointing an operator. It should be noted that two other ferry operators have approached the Regional Council since the Hauraki Express option was endorsed by the TPTJC to express an interest in the potential trial.

2.2.1 Option 2 - Procurement

This option would be contingent on TCC running an open procurement process and holding the contractual relationship with the successful operator.

It would be the responsibility of TCC as the contract holder to facilitate the procurement process.

Going out to the open market would likely slow the speed of getting any ferry service operational. It should be noted that TCC staff have expressed concern with this option, for this reason.

However, it would allow for transparency, additional potential suppliers to bid for the services, and possibly a greater range of options and technological solutions for consideration, as well as greater value for money.

2.2.2 Option 2 - Financial implications

Option 2 proposes Regional Council making up to a maximum of $1.4M available for funding a ferry trial service. This is the same funding allocation requested by Option 1, and therefore, has the same funding implications, though the timing will almost certainly be delayed until 2025/2026.

2.2.3 Option 2 - Roles and responsibilities

Table 3: Option 2 – respective roles and responsibilities

· Successful Operator

· TCC

· Regional Council

· Fund the capex of the ferry vessels.

· Include the ferries in a MTOP (Maritime Transport Operator Plan) and be responsible for full compliance with maritime rules.

· Employ crew and operate the ferries.

· Run an open market procurement process to identify a preferred supplier.

· Hold the contractual relationship with the supplier.

· Fund up to a maximum of $700,000 per annum for two years for the purpose of a trial ferry service.

· Distribute revenue evenly to offset both TCC and Regional Council’s OPEX contributions.

· Make available and maintain wharf side and supporting infrastructure.

· Fund up to a maximum of $700,000 per annum for two years for the purpose of a trial ferry service.

· It is expected that all parties would partake in marketing and promoting the ferry service.

2.2.4 Option 2 - Benefits, issues and risks

Table 4: Option 2 - summary of benefits, issues and risks

	Option 2: Provide funding to support a ferry trial with an open market procurement process.
Benefits	- Running a competitive tender process could deliver a proposal that offers better value for money. - By not holding the contract, the trial will not place significant additional burden on Regional Council staff. - Anecdotally high levels of public interest in trialling a ferry service. - Opportunity to evaluate the true viability of ferry services for delivering public transport, including their ability to alleviate traffic congestion in the Mount Maunganui area & Hewletts Road corridor.
Issues	- The operational expenditure required to deliver this option is currently unbudgeted by Regional Council. - An appropriate monitoring programme would need to be developed to measure success. This would need to consider public transport outcomes, patronage targets, farebox recovery.
Risks	- Running an open procurement process would delay the introduction of the service. - TCC’s funding commitment is not guaranteed under this option and would have to be confirmed. - The ferry trial could abstract revenue from existing Baybus services.

2.3 Option 3: Do not provide funding support for a Tauranga harbour ferry trial

Option 3 would mean that Regional Council provide no financial support for a ferry service trial on the Tauranga harbour at this time.

Under this option, for the trial to progress, TCC would either need to fully fund the trial, or seek funding from alternative sources. Therefore, there would be a significant risk that a trial would not progress.

As Regional Council would not be involved in a trial if Option 3 were selected, procurement considerations, financial implications and roles and responsibilities have not been considered.

From a public transport outcomes perspective, $1.4M could deliver better value for money if it was allocated to public transport service delivery. Therefore, Council should consider the opportunity cost of any investment made.

2.3.1 Option 3 – Benefits, issues and risks

Table 5: Option 3 - summary of benefits, issues and risks

	Option 3: Do nothing
Benefits	- Resources are retained for initiatives that may better deliver against the strategic outcomes of the Regional Council.
Issues	N/A
Risks	- The ferry trial does not proceed if alternative funding cannot be sourced. - Missed opportunity to trial a new method of service delivery and understand its value to the transport network. - Potential reputational risk should Regional Council appear unsupportive of a proposal with anecdotally high levels of public interest.

3. Financial implications

Table 6, below, outlines the financial implications to enable the $1.4M allocation for Option 1. Financial implications for Option 2 are similar, however, implementation will almost certainly be delayed until at least 2025/26.

Costs in Year 1 would be funded through Regional Fund Reserves^{^[6]} with no rating implication in that year, whereas Year 2 and 3 would be funded via a mix of targeted and general rates.

Table 6: Option 1 - Financial Implications

Recommended Option – Ferries Option 1
	Year 1 2024/25 $000	Year 2 2025/26 $000	Year 3 2026/27 $000	Comments
Opex Cost
Grants and Contributions	175	700	525	3 months operation in Year 1
Regional Fund Interest foregone	4	9	9	Year 1 reflects phased drawdown of Regional Fund over the year rather than an early lump sum payment
Total Opex	179	709	534
Opex Funding
Rates	-	709	534	Additional rates funding (90% TR and 10% GR), Regional Fund Interest Foregone funded by General Rates
Regional Fund Reserves	179	-	-	Funded by Regional Fund reserves year 1
Cost Impact per Rating Unit
TGA Targeted Rate	$2.94 Equivalent	$11.53	$8.65
General Rate	$0.18 Equivalent	$0.66	$0.51	Funded by Regional Fund reserves in Year 1, Year 2-3 rates funded

If Council were to require the Regional Fund use to be repaid, this could be achieved by maintaining the higher rates funding of Year 2 into Year 3. Alternatively, Council could fund the trial entirely from the Regional Fund, which would decrease the projected 2026/27 closing balance from $7.1M to $5.7M.

The assumption is that BOPRC would promote the service through existing channels, using internal resources. To this end, no additional funding has been sought for these activities.

It should be noted that the Hauraki Express proposal does contain some other uncosted activities, such as market research. It has been assumed that these activities, if required, would need to be delivered within any funding allocated by the Regional Council.

4. Considerations

4.1 Legislative Framework

The Land Transport Management Act 2003 (LTMA) provides the legal framework for managing and funding public transport activities. The purpose of the LTMA is to contribute to an effective, efficient, and safe land transport system in the public interest.

At this stage, and as noted, a ferry service would not be managed under the LTMA as it will not be receiving financial support from NZTA, nor will the contract to operate the service sit with Regional Council as a Public Transport Authority. This position may change if monitoring of a trial can illustrate value for money comparative to other public transport service offerings.

4.2 Alignment with Strategic Framework

4.3 Risks and Mitigations

Risks and mitigations for each option are outlined in section 2 above.

4.4 Climate Change

Staff consider that the ferry trial will not provide large scale mode shift away from private vehicle use in Tauranga. However, a trial will likely inform the scale of benefits which could be derived from a scaled or permanent offering which, especially if utilised by commuters, may have some mitigating benefits.

Going out to the open market to seek a service provider for a trial ferry service would allow a range of businesses and operators to tender for the opportunity. This might support opportunities such as the deployment of alternatively fuelled (likely electric) ferries, subsequently reducing emission impacts of a trial. The two ferries that are proposed for inclusion in the HE trial, at this stage, are understood to be diesel powered.

It should be noted that the BOPRC’s feasibility study identified that alternatively fuelled solutions would likely be significantly more costly to implement due to the higher costs associated with the vessels and the requirement for shore-based charging infrastructure to be installed.

4.5 Implications for Māori

Engagement with Māori communities, including the broader public, partners and stakeholders, would likely occur if the two-year trial was to be either extended or considered as a permanent service. Māori within the Tauranga moana area would likely benefit from the trial as it would provide another form of transport to support access to goods, services, and education.

4.6 Community Engagement

No community engagement has taken place to date. If the service, after the initial two-year trial period was successful and was extended or became permanent, community engagement would likely occur to ensure the offering considers public opinion and responds accordingly.

4.7 Financial Implications

The financial implications for the three options are outlined in section 3.

5. Next Steps

If the Council endorses Option 1 or Option 2, work will begin to draft a funding agreement.

Staff would work with TCC to develop a funding agreement which set out the roles and responsibilities including the terms on which funding from Regional Council was provided and any required deliverables. This would include noting that it would be the responsibility of TCC as the contract holder to engage the services of HE. A funding agreement would also set out how a monitoring framework would be developed to measure the success of the ferry service.

Monitoring metrics and reporting processes would also need to be developed.



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Mark Le Comte, Principal Advisor, Finance; AJ Prinsloo, Finance Manager; Jo Pellew, Rates Manager; Gillian Payne, Principal Advisor and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to reset Minor Rivers and Drainage Rates for 2024/25

Minor Rivers and Drainage Rates 2024/2025

Executive Summary

This report seeks Council approval to reset the Minor Rivers and Drainage Rates for 2024/25 following public notification.

Council set rates for Minor Rivers and Drainage Schemes for 2024/25 on 26 June 2024, and approved public notification of several corrections on 15 August 2024. Council has completed the requirements of the Local Government (Rating) Act 2002 and Council Standing Orders to enable it to reset these rates.

A minor change is also required to the Rates Funding Impact Statement in the Long Term Plan 2024-2034 and this will be made as part of this process. This did not require separate consultation.

Recommendations

That the Regional Council:

1 Receives the report, Minor Rivers and Drainage Rates 2024/2025.

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 2024/25 resolution 16 adopted on 26 June 2024 for the Omeheu West Communal Pumped Drainage Scheme, Awaiti West Pumped Drainage Scheme, Withy Communal Pumped Drainage Scheme, Omeheu Adjunct Communal Pumped Drainage Scheme and Lawrence Communal Pumped Drainage differential targeted rates, noting that all alterations result in lower rates being set. All other rates in Rates Setting 2024/25 resolution 16 adopted on 26 June 2024 remain unchanged.

4 Adopts alterations to Rates Setting 2024/25 resolution 16 as follows:

16 Sets targeted rates for the Minor Rivers and Drainage Schemes. The targeted rates are set differentially in accordance with Section 16, 17 and 18 of the Local Government (Rating) Act 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 based on where the land is situated and calculated using the area of land within the rating unit.

5 Approves the alterations to Rates Setting 2024/25 resolution 17 adopted on 26 June 2024 for the Minor Drainage Scheme targeted rate for Awakeri, Baird-Miller, Foubister, Gordon, Halls, Hyland-Baillie, Riverslea Road, Kuhanui, Luxton, Martin, Nicholas, Noord-Vierboon, Pedersen-Topp, Robins Road, Travurzas, Wylds, Poplar Lane, Awaiti East and the total amount noting that this results in lower rates being set. All other rates in Rates Setting 2024/25 resolution 17 adopted on 26 June 2024 remain unchanged.

6 Adopts the alterations to Rates Setting 2024/25 resolution 17 as follows:

17 Sets targeted rates in accordance with Sections 16, 17 and 18 of the Local Government (Rating) Act 2002 for all rateable land situated in the defined drainage and defined Minor River and Drainage Schemes areas.

The targeted rates are set as based on where the land is situated and calculated using the land area within the rating unit as follows:

7 Notes that all other parts of the Rates Setting 2024/25 resolutions as adopted on 26 June 2024 remain unchanged.

1. Introduction

As part of the Long Term Plan 2024-2034 Rates setting process, Council set rates for Minor Rivers and Drainage schemes on 26 June 2024. Several errors have been detected in which rates have been set at a higher amount than were required.

On 15 August 2024, Council resolved to commence the process to reset these rates to correct the errors. The proposed changes have been publicly notified.

1.1 Legislative Framework

The legislative requirements for Rates are set in the Local Government (Rating) Act (LG(R)A). Section 119 outlines the requirements and process to set rates again as follows.

119 Local authority may set rates again

(1) A local authority may set a rate again in the financial year in which the rate was set.

(2) Subsection (1) applies if—

(a) the local authority determines that it is desirable to set the rate again because of—

(i) an irregularity in setting the rate; or

(ii) a mistake in calculating the rate; or

(iii) a relevant change in circumstances; and

(b) setting the rate again will not increase the amount of rates assessed to any rating unit.

(3) A local authority may set a rate again only if—

(a) it has given 14 days’ public notice of its intention to set the rate again; and

(b) it complies with the local authority’s standing orders for the revocation and alteration of resolutions.

(4) Notice under subsection (3) must include—

(a) the information in relation to the rate that was, or would otherwise have been, required to be included in the local authority’s long-term plan or annual plan; and

(b) a statement of the reason why the local authority has determined that it is desirable to set the rate again.

(5) If setting the rate again results in a change to the amount of rates to be assessed to any rating unit,—

(a) the rates record for the rating unit must be corrected as soon as practicable; and

(b) section 41 applies.

These requirements have been completed and Council may re-set the Minor Rivers and Drainage Schemes rates at this meeting.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

Council could choose to retain the Minor Rivers and Drainage Schemes rates as originally set; however, this level of revenue is not required and staff recommend setting the rates again at the proposed lower levels.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

The Minor River and Drainage Scheme rates are used to fund flood protection work. These rates have been set at a higher level than is required and could be reduced.

2. Minor Rivers and Drainage Scheme Rates 2024/25

As part of the Long Term Plan 2024-2034 rates setting process, Council set rates for Minor Rivers and Drainage schemes on 26 June 2024. Several errors have been detected in which rates have been set at a higher amount than were required. The list of affected rates is set out in section 2.1 of this report.

The total value of the errors is a revenue budget that is $423,431 (including GST) too high. While this is a small amount relative to Council’s total rates requirement, the impact on individual ratepayers with large landholdings in affected areas could be several thousand dollars.

On 15 August 2024, Council resolved to commence the process to reset these rates to correct the errors. The proposed changes have been publicly notified. Council can now decide to reset these rates in accordance with the process set in LG(R)A section 119.

2.1 Corrections

The tables below show the affected rates, the amounts of the adopted rates and the intended amounts for the rates to be reset to. In the following tables N/A means that there is no rate requirement and rates can be set to $0.

3. Considerations

3.1 Risks and Mitigations

Council could choose to retain the Minor Rivers and Drainage Scheme rates at the level originally set, however, this would pose a reputational risk by requiring more rates than necessary and the intention to reset the rates has already been publicly notified and communicated to affected ratepayers.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

The matters addressed in this report are of a procedural/financial nature and there is no need to consider implications for Māori, who are affected to the same extent as other ratepayers within the affected Minor Rivers and Drainage Scheme areas.

3.4 Community Engagement

INFORM

Whakamōhio

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

The affected ratepayers have already been informed of the correct Minor Rivers and Drainage Schemes rates for 2024/25. Public notices have been released to comply with requirements for re-setting rates pursuant to the LG(R)A section 119.

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

If the answer is ‘yes’ to either question please select “Budget Implications” in the building block below and liaise with your Management Accountant in order to complete the Financial Impact table.

Correcting the Minor Rivers and Drainage Scheme Rates will also correct an over-budgeting for revenue of $423,431 (including GST) for 2024/25, which is approximately 0.4% of total rates revenue.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

The key next steps are:

· Minor Rivers and Drainage Schemes rates assessments and invoices released.

· Update Long Term Plan 2024-2034 Funding Impact Statement (minor amendment) and the Rates Resolutions section on Council’s website.



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Pim De Monchy, Coastal Catchments Manager
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	To seek Council approval for new design and construction budget for the Cutwater Road wetland, accepting additional MfE funding and bringing forward of LTP Capex budget.

The Waihi Estuary Catchment Freshwater Improvement Project in partnership with Te Wahapū o Waihī and co-funded by the Ministry for the Environment - approvals needed to progress constructed wetlands work

Executive Summary

This paper provides details of the updated design for the 30 hectare Cutwater Rd wetland project that has been developed in partnership with Te Wahapū o Waihī. The new design involves the creation of a 27 hectare freshwater wetland to treat agricultural drainage water from the upstream dairy farms as well as a 3 hectare tidal wetland to help improve the estuary’s health, improve indigenous wetland habitat and biodiversity. All the procurement and contracting for the project will be carried out using Council’s standard procurement processes and the individual contracts will be within the Chief Executive’s delegated financial authority. Staff seek approval to start construction based on the new design once the consents have been issued.

Secondly, the Ministry for the Environment has proposed a variation to the Freshwater Improvement Fund grant based on approval by Minister Andrew Hoggard following his site visit. This new funding would provide an additional $1.92 million from MfE to create an additional 33.5 hectares of wetland by 30 June 2026, over and above the 30 hectare Cutwater Rd project. In order to meet the associated co-funding commitments to accept this funding, $2.1 million of the budgeted Capex from years 3-5 of the LTP would need to be brought forward to years 1-2. We are therefore seeking approval from Council to accept this additional funding and to bring forward the required Capex budget to realise significant additional environmental benefits with the help of central government.

Recommendations

That the Regional Council:

1 Receives the report, The Waihi Estuary Catchment Freshwater Improvement Project in partnership with Te Wahapū o Waihī and co-funded by the Ministry for the Environment - approvals needed to progress constructed wetlands work.

CUTWATER ROAD WETLAND

2 Approves the new design for the 30 hectare Cutwater Road Wetland

3 Approves the $1,552,500 expenditure for construction of the 30ha Cutwater Road Wetland, noting that this amount is already budgeted for in year 1 of the Coastal Catchments Activity within the LTP 2024-34

PROPOSED NEW ADJOINING WETLANDS

4 Approves accepting the additional $1.92m from the Ministry for the Environment (Variation #2 to the Freshwater Improvement Fund grant)

5 Delegates to the Chief Executive the ability to approve and execute the Ministry for the Environment funding agreement including any variations.

6 Approves the transfer of up to $2.1m Capex from years 3-5 of the LTP into years 1-2 in order to meet the co-funding commitments associated with the MfE Deed of Grant.

1. Introduction

The 35,000 hectare Waihī Estuary catchment was identified as a ‘Focus Catchment’ in Council’s Environmental Grants Policy because of the significant reductions in water contaminants required to improve the estuary health. The Waihī Estuary Freshwater Management Unit needs a high level of change to reduce four key contaminants: 70% less nitrogen, 30% less phosphorus, 25%- 50% less E. coli, and 20%-65% less suspended sediment.

Regional Council is working in collaboration with Te Wahapū o Waihī (TWOW) to restore the health of the estuary. Their overarching objectives state that the restoration will be succeeding when we have healthy mahinga kai (food harvesting areas or resources), as an indicator of a thriving Waihī estuary, catchment and community for the long term.

“He oranga te wahapū, he oranga te iwi: the health of the estuary is a metaphor for the health of the people.”

One of the key workstreams is Mahinga Kai Repo/Saltmarsh Wetland, which is focused on the establishment of 20 ha of new wetland, including 40,000 indigenous plants. The proposed MfE variation would see this target increase to 63.5 hectares and 89,500 indigenous plants, among other deliverables. This target is based on the additional wetland areas identified in Figure 1 below:

Figure 1 Additional wetland locations to be included in MfE variation.

On 9 February 2023, Council approved the submission of a tender to purchase a 109 hectare farm at 264/265 Cutwater Road and to enter into an on-sale agreement to sell 79 hectares to the neighbouring landowner and retain the 30 hectares of low-lying farmland closest to the estuary.

The tender was successful and settlement for the property occurred on 1 June 2023. The purchase of the 30 hectare block was funded 50% from the Coastal Catchments Activity’s existing capital budget ($315,000) and 50% was from the Ministry for the Environment’s Freshwater Improvement Fund, which was granted to achieve the vision of Te Wahapū o Waihī and thus create an equal interest in the land for TWOW collectively alongside Council. The existing farm titles are in the process of being re-arranged to recognise the future wetland area.

Council has been working in partnership with TWOW to co-design a preferred wetland creation option that will benefit the estuary, the catchment and its landowners and contribute to improved water quality, wetland habitat, biodiversity, cultural and climate change resilience outcomes, without compromising land drainage services provided to farmers by the Waihī District Drainage Society (underwritten by Western Bay of Plenty District Council).

Based on the outcome of the feasibility studies, the original proposed design of 10 hectares of treatment wetland and 20 hectares of saltmarsh was ruled out due to the amount of fill that would have been required to achieve a suitable elevation for creating saltmarsh habitat. A new design was assessed and developed as briefly presented through the Chair’s report of the Monitoring and Operations Committee meeting in June 2024.

This paper provides details of the new design that has been supported by the TWOW board, the Waihi District Drainage Society (WDDS), WBOPDC, DOC and surrounding landowners as well as the details of the associated construction costs.

1.1 Legislative Framework

The overall Land Management programme that this project falls under is an education and incentives-based work programme. It both complements and aligns with the legislative requirements and priorities of the Essential Freshwater Programme for Bay of Plenty, as well as other priorities such as biodiversity and care group support.

1.2 Alignment with Strategic Framework

A Healthy Environment	We work cohesively with volunteers and others, to sustainably manage and improve our natural resources.
Freshwater for Life	We deliver solutions to local problems to improve water quality and manage quantity.
Safe and Resilient Communities	We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We continually seek opportunities to innovate and improve.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

High - Positive

þ Social

Medium - Positive

þ Economic

Low - Negative

2. Cutwater Road Wetland

2.1 Partnership and Consultation

Throughout the design process extensive consultation has been undertaken with our key partners and stakeholders. Fortnightly discussions have been held at the TWOW operations level, two kaitiaki hui were held for wider input/feedback and at the 21 June TWOW board meeting, unanimous support was provided for the new design approach as well as the consent application.

We have also maintained a close working relationship with WDDS, WBOPDC and the neighbouring landowners on Cutwater Rd throughout the design process. Each of these parties are in support of the new design approach and have provided statements of support for the consent application.

A draft legal agreement is in the process of being drafted up between Regional Council, WDDS and WBOPDC around asset ownership, operating costs and rate payment removal for the 30 hectares. As part of the updated design, a new pump station is required at the inlet to enable the hydraulic functioning of the 27 hectare freshwater wetland. The proposal with WDDS/WBOPDC is that they will take on the new pump as part of their asset management plan and Regional Council will assume responsibility of pump station 10 at the outlet end of the wetland.

Powerco have also been consulted as there are some powerlines that currently run through the proposed wetland site that provide power to pump station 10. After assessing the current state of the powerlines, Powerco advised that based on the porosity of the poles they cannot stay as they are if we are going to introducing additional water into the area. The current preferred option is to underground the cables through the paper road that leads to pump station 10.

Consultation with the Department of Conservation has also occurred as an easement application is required to be able to underground the powerlines through the paper road that is within the marginal strip boundary. The easement application also will include an agreement for long term access to the marginal strip for enabling ongoing maintenance of pump station 10 and the inanga ponds.

2.2 Updated Design

Figure 2 below shows the updated design that has been supported by all our key partners and stakeholders.

Figure 2 Updated design.

During the feasibility stage, water loggers were installed in the Pukehina Canal and the data from this demonstrated that the area previously identified for saltmarsh habitat creation was too low lying and would require a significant amount of fill to be imported to reach a suitable elevation range. The costs associated with this were too prohibitive, so an alternative design approach was required.

The design has now shifted to creating a 27 hectare freshwater wetland with treatment benefits, that incorporates the design principles from the NIWA Constructed Treatment Wetland Guidelines (Figure 3). The updated design will be approximately 4.2% the size of the contributing catchment, which is now on the higher end of the NIWA recommendation of 1-5% compared to 1.6% in the original design. This should lead to higher water quality benefits and better outcomes for the health of the estuary.

Figure 3 Engineering design plan for freshwater wetland.

Due to the low-lying nature of the site, the scale of earthworks required is much lower than the original proposal. Approximately 25% of the wetland will be open water zones and the cut material from these areas will be used for creating the bunds. The additional fill that will be required for creating the bunds will be taken from the section of the Pongakawa Canal that is adjacent to the proposed wetland site. WDDS are supportive of this approach as the canal banks are getting too high from cumulative stockpiles of dredgings over the years and they are struggling to clean the drains with their machinery as they are now sitting too high from the water.

From a cultural perspective, there is more support for the new design as it allows for the preservation of the remnant channels that are indicated in Figure 2. A culvert is also going to be installed in the south-western corner of the wetland to allow for connection to the Pongakawa, which will also be useful in case of periods of drought if additional water is needed to be diverted into the wetland.

At the historic exit point of the Pongakawa Canal, a gravity fed box culvert with a flow control structure and non-return gate is going to be installed prior to pump station 10. The purpose of this outlet is to help manage water levels in the wetland and reduce the usage of pump station 10. Approximately 20% of the flow will exit via the box culvert and the remainder will be serviced by pump station 10. Under normal flow conditions, this will allow us to achieve a residence time of between 3-6 days which is within the optimum range for maximising treatment potential. In the event of a flooding event, pump station 11 will be triggered to direct excess flows directly into the Pukehina Canal instead of that water going through the wetland. It is estimated that the wetland will operate in normal flow conditions 90% of the time.

In addition to the freshwater wetland, a 3 hectare tidal wetland will also be created as well as an informal parking area, as shown in Figure 4 below. The area identified for this wetland was the highest elevation land across the 30 hectare site and is within the suitable range for saltmarsh establishment. This area will be bunded off and then a culvert will be installed in order to connect to the Pukehina Canal.

Figure 4 Engineering design plan for tidal wetland.

Once the earthworks have been completed for the tidal wetland we will wait to see if natural revegetation processes occur on their own. If required, we will follow up with planting to speed up the habitat restoration/creation process. For the freshwater wetland, we intend to plant the shallow water areas following construction and then the bund surrounds with taller species in June/July 2025.

2.3 Construction Cost Estimates and Timeframes

Our proposed approach for construction is for the Toi Moana Rivers & Drainage Team to be the lead operator. The earthworks costing estimates in the table below have been prepared by the R&D team based on a recent large scale wetland project that they completed.

Powerline realignment/upgrade	$ 350,000
New pumps	$ 200,000
New pump station installation + control tech	$ 200,000
Earthworks	$ 450,000
Drain enhancements	$ 50,000
Planting	$ 100,000
MSQA	$ 67,500
Contingency	$ 135,000
TOTAL	$ 1,552,500

For the powerline realignment/upgrade works we are only able to use Powerco approved contractors. There are only two available in the region and we are awaiting quotes from the two companies, with the price indicated in the above cost table an estimate that was provided by Powerco.

In order to ensure the water from the upstream farm drain network is directed towards the inlet of the freshwater wetland, some drain modification/enhancement is required as detailed in Figure 3 below.

This programme of works has been designed in conjunction with the WDDS scheme operators and they will be engaged to complete the earthworks.

In regards to the new pump station at the freshwater wetland inlet, discussions are progressing with WBOPDC and WDDS to finalise the most suitable pump make and model. WDDS have expressed their preference for using MacEwans pumps as that is what the use in the rest of the pump station network so they are familiar with how they operate as well as their maintenance requirements. Metis Consultants have provided a cost estimate of $200,000 for the pumps that would be required.

An additional $200,000 has been included for the installation of the pump, construction of the pump shed as well as the establishment of a telemetry set up between the new pump, pump station 10 and pump station 11. The telemetry configuration is crucial, in particular for flood conditions as the settings will need to be established so that pump station 11 is triggered to start operating when water levels reach a certain point.

In terms of timeframes around the construction process, below is our intended schedule of works:

· Earthworks to begin in November 2024 (consent dependent)

· Complete earthworks by end of February 2025

· Plant shallow water section in March 2025

· Plant remaining bund areas in June/July 2025

2.4 Next Steps

The immediate next steps are to complete the resource consenting process to enable construction works to begin in November as planned.

In the meantime, we are also in the process of developing a monitoring plan similar to what has been completed at the Baygold and Hickson wetlands, so we can quantify the treatment benefits of the freshwater wetland over time once construction has been completed.

3. Freshwater Improvement Fund – Variation #2

3.1 Progress to Date

Regional Council and TWOW have been working in close partnership since December 2022 to deliver the milestones and objectives set out in the MfE Freshwater Improvement Fund Deed of Grant. There are four main work streams, two of which Regional Council is responsible for taking the lead on (Mahinga Kai – Repo/wetland and Whenua/land).

The target for the Repo workstream under the current agreement is to create 20 hectares of new saltmarsh or other tidally connected wetland by June 2026, including 40,000 indigenous plants. The delivery of the Cutwater Road project will meet this target within the stipulated timeframe, and in fact deliver almost 30 hectares.

For the Whenua workstream, the target is to deliver at least 120,000 new plants and 16 km of waterway fencing in the Waihī Estuary Focus Catchment through delivering 32 Environmental Programme Agreements by June 2026. Currently there are 17 EPs in place, so we are also on track for delivering this target within the stipulated timeframe.

3.2 Visits by Ministers in winter 2024

There have been three ministerial visits to the Cutwater Road project site this year; Climate Minister Simon Watts visited 3rd May 2024, Minister for Biosecurity and Associate Minister for Agriculture Andrew Hoggard on 6th June and Minister for Agriculture Todd McClay on 4th July.

Between 30 and 40 people attended each visit, including BOPRC Councillors and staff, TWOW Board members and kaitiaki, neighbouring landowners and WDDS members, representing all of the critical stakeholder groups in the project.

A group of people standing in a field

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The Ministers were receptive and interested in the project as a template for how water quality objectives could be met while continuing to farm productively.

3.3 Proposed Variation #2

Following the visit by Ministers to the project site, Ministerial approval was given to MfE to offer an addition $1.92 million of funding, subject to Regional Council’s ability to meet additional co-funding commitments.

The focus of the additional funding would be on the Repo workstream, with the target increasing from 20 hectares to 63.5 hectares of wetland creation by June 2026 in the Waihī Estuary catchment.

On the Pamment property there is an opportunity to purchase 9.5 hectares of low-lying land for wetland development, which would have a similar arrangement to the Cutwater Rd project except we would only be purchasing the 9.5 hectare area instead of the whole farm and then on-selling the remainder of the property. The Pamments have expressed significant interest in the opportunity to sell that section of their property, and staff believe that it will be possible to achieve agreement on terms that are acceptable to both parties.

For the Buchanan property, there is 24 hectares of land available for retirement and wetland creation. No land acquisition would be required for this project and instead the standard Environmental Programme Agreement process would be followed in accordance with the Regional Council’s Environment Grants Policy and/or Capital Projects funding.

In order to meet the June 2026 deadline for delivering these two additional wetland projects and to secure the additional $1.92 million of MfE funding, we would need to bring up to $2.1 million Capex from the LTP forward from years 3-5 to years 1-2. Staff recommend that this be done by reducing each of years 3, 4 and 5 by $700,000; increasing year 1 by $500,000 and increasing year 2 by $1.6 million.

4. Considerations

4.1 Risks and Mitigations

There is a risk around whether the freshwater wetland will deliver similar benefits to the recently constructed treatment wetlands. This is due to the low-lying nature of the land, and the reliance on pumping to deliver water into (and potentially out of) the wetland, rather than gravity. This is a risk that staff believe is worth taking as there are a large number of pumped catchments in the region with water quality challenges, so the method may have wider application. There are linked operational risks such as maintaining the level of service for landowners within the Waihi District Drainage Society’s operational area; managing salinity at the farm/wetland interface and restoring coastal wetlands within the elevation ranges available. However, these can be addressed during the detailed design and consenting process.

Climate change risks are addressed below.

4.2 Climate Change

Mitigation			Adaptation
Reduce GHG emissions	Produce GHG emissions	Sequester carbon	Anticipate climate change impacts	Respond to climate change impacts
☒	☐	☒	☒	☒

This proposal is aligned with Council’s climate position statement and the principles of the National Adaptation Plan, it responds to projected climate risks and it seizes an opportunity to increase resilience, along with significant co-benefits for water quality and wetland habitat creation/restoration. Climate projections for the coastal lowlands of the Western Bay of Plenty include an increase in the frequency of extreme weather events, rising groundwater, and net sea level rise.

Our Climate Action Plan Position Statement states that we will ‘act proactively and with urgency to address climate change risks [and opportunities]’ and that we will ‘work collaboratively’ and ‘align with national direction’. Our goals include ‘As a region we are adapting to a changing climate’.

The National Adaptation Plan (2022) sets out a number of principles to guide adaptation action. Relevant to this proposal these include:

• Be Proactive

• Think long-term and take an intergenerational perspective

• Maximise co-benefits

• Collaborate

• Work with Nature

• Adapt locally

This proposal provides an opportunity to act proactively to respond to both climate risks and a significant opportunity to secure co-benefits. The development of a 30ha coastal wetland will provide not only biodiversity gain. The proposal is a collaborative one, both with farm landowners and with Te Wahapu o Waihī. It therefore also delivers on the “Partnerships with Māori” Impact area.

However, sea level rise also poses a long-term risk to the functioning of the treatment wetland, and over the even longer term, risks to the persistence of the coastal wetland (and the surrounding farmland). The design life is defined by the level of protection offered by the bunds against sea level rise in the Waihi Estuary. The current minimum bund level is 1.5mRL (NZVD2016), and current MHWS is 0.73mRL. The bund level allows for future sea level rise of 0.77m. Takiwa’s SeaRise shows that 0.77m of sea level rise, accounting for vertical land movement, is predicted to be reached by 2120 (worst-case, SSP5-8.5+VLM, p50 scenario) or 2150 (intermediate, SSP2- 4.5+VLM p50 scenario).

On balance, staff believe that proceeding with this project with its clear benefits to freshwater, biodiversity, cultural values and both climate adaptation and mitigation is a risk worth taking, given its overall alignment with Council’s strategic framework, and the fact that it can be adapted in the future as the environment changes.

4.3 Implications for Māori

Crtl + click for Guideline material.

As a financial and co-design partnership with TWOW representing Ngati Whakahemo, Ngati Whakaue ki Maketu, Ngati Makino, Ngati Pikiao and Tapuika to jointly acquire land and then co-design and create wetland, this proposal is considered to have very positive implications for Maori. It is fully supported by TWOW and its member iwi as it will directly contribute to the achievement of their vision.

4.4 Community Engagement

Consider identifying in the report:

INVOLVE

Whakaura

To work directly with affected communities throughout the process to ensure that their issues and concerns are consistently understood and fully considered in Council’s decision making.

The success of the Cutwater Road Wetland Project relies strongly on collaborative partnerships with TWOW, WDDS, WBOPDC, landowners and other stakeholders within the community.

4.5 Financial Implications

The consenting and construction costs for Cutwater Rd can be sourced from existing Coastal Catchments Activity budgets.

However, if the additional MfE funding is accepted, there is an estimated $2.1 million of funding that will need to be bought forward from years 3-5 of the current LTP to years 1-2 to cover our co-funding commitments. Staff recommend that this be done by reducing each of years 3, 4 and 5 by $700,000; increasing year 1 by $500,000 and increasing year 2 by $1.6 million.

Below is a summary table that was prepared by the Finance team that shows the financial implications of this shift, which includes $341,000 in additional borrowing costs associated with the earlier-than-budgeted loan drawdown.

2024/25

2025/26

2026/27

2027/28

2028/29

2029/30

2030/31

2031/32

2032/33

2033/34

10 year total

CAPITAL EXPENDITURE

$000

Coastal Catchments total capital Budget (LTP)

2,038

2,366

2,752

2,132

2,045

1,088

1,181

1,200

1,220

1,242

17,264

Proposed Budget Movement

1,000

3,020

(700)

1,920

Total Capital Expenditure

3,038

5,386

2,052

1,432

1,345

1,088

1,181

1,200

1,220

1,242

19,184

Proposed MFE Funding

(500)

(1,420)

(1,920)

2,538

3,966

2,052

1,432

1,345

1,088

1,181

1,200

1,220

1,242

17,264

Impact on borrowing costs

128

(0)

341

5. Next Steps

For Cutwater Rd, progressing the consenting process and once consent is granted, begin construction in the 2024/25 summer earthworks period.

For the FIF Variation #2, finalise the agreement and work on both the Pamment’s and Buchanan projects.



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Mark Townsend, Engineering Manager
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	For Council to consider projected costs and funding for the replacement of the Ford Road Pump Station.

Ford Road Pump Station Replacement

Executive Summary

In 2021 Council approved the replacement of the Ford Road Pump Station and provision was made in the Long Term Plan 2021-2031 for the project to begin. Stage One channel and drainage works are underway, and the pump station concept design is now well advanced. Updated costs for Stage two, which is the pump station itself, are available based on an Archimedes pump design that meets New Zealand conditions. While the upfront cost of the Archimedes screw pump option is higher than the originally proposed Axial pump option, there are operational savings over the life of the asset and this option provides certainty of fish passage performance.

Stage three decommissioning works for the old pump station are now planned for 2030/31. Due to scope improvements and inflation, the additional budget requirement to deliver the pump station project in the Long Term Plan 2024-2034 is $4.025M.

Council has been notified that this project has been approved for grant funding as part of the Regional Infrastructure Fund. Once grant funding is considered alongside the additional pump station costs, the overall outcome results in total lower borrowings of $1.77M, which will provide savings in loan repayment costs.

The Ford Road Pump Station project is planned for completion in 2027.

Recommendations

That the Regional Council:

1 Receives the report, Ford Road Pump Station Replacement .

2 Agrees to fund additional capital expenditure of $4.025 million in 2025/26 and agrees to new Regional Infrastructure Funding of $5.802 million which results in lower budgeted borrowings of $1.777 million for the Ford Road Pump Station replacement.

3 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

1. Introduction

In 2021, following extensive optioneering and consultation Council approved replacing the Ford Road pump station by installing a new (additional) pump station at the Diagonal Drain pump station site. Like for like replacement of the pump station at the existing site was not considered feasible due to the likelihood of the discharge creating adverse environmental and cultural effects at Ongatoro/Maketū Estuary.

The project at that time, provided for a three stage approach.

1 Widening of 1,600m of existing drains by 2 metres and upgrading 2 existing culvert crossings.

2 Installing a new pump station at the Diagonal Drain site, adjacent to the existing pump station.

3 Decommissioning the existing gravity outlet and gates and pump station at the Ford road site.

Since the 2021 decision, significant progress has been made. Resource consent has been granted, and the drain works have commenced. Considerable environmental enhancement has been completed in conjunction with the drainage works. Design for the pump station has also progressed in keeping with best practice. The recommended pump option has increased the estimated cost of the pump station replacement.

Alongside this, Council was also anticipating the receipt of grant funding to support this project through the Regional Infrastructure Fund recently announced by central government.

The Stage 3 decommissioning of the old Ford Road Pump Station has been rescheduled at the request of the Kaituna Catchment Control Scheme, to 2030/31.

1.1 Legislative Framework

Under the Local Government Act 2002, regional authorities are responsible for the provision and control of river scheme assets. The Council manages and maintains the River Schemes under the Soil Conservation and Rivers Control Act 1941 and in keeping with its Rivers and Drainage Asset Management Plans. These plans include levels of service that the Council provides for the community, which drive the upgrade, replacement, and development of scheme assets.

1.2 Alignment with Strategic Framework

Freshwater for Life	We deliver solutions to local problems to improve water quality and manage quantity.
Safe and Resilient Communities	We support community safety through flood protection and navigation safety.
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We deliver value to our ratepayers and our customers.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

High - Positive

þ Cultural

Low - Positive

þ Social

Medium - Positive

þ Economic

Medium - Positive

1.3 Significance

The recommended proposal/decision has been assessed against the criteria and thresholds in Council’s Significance and Engagement Policy, and can be considered:

Medium

The decision is not within existing budgets and does not implement the current long term plan or annual plan.

The financial costs and implications of the decision are not yet known or provided for.

2. Ford Road Pump Station Replacement

2.1 Background

The Ford Road pump station was constructed in the early 1960’s with major upgrades occurring in 1982. Renewal of the pump station was identified following the May 2005 flood event and was provided for in the 2010/11 financial year. However, the work was later deferred to align with the completion of the Kaituna River Re-diversion and Ongatoro/Maketū Estuary Enhancement Project to ensure the design provided for any dependencies with those projects. New climate change predictions and water quality standards have also been introduced.

The current pump station supports drainage of the Lower Kaituna - Eastern Drainage Area. This low-lying area is managed by the Kaituna Catchment Control Scheme and comprises of 33.6km of drains and three pump stations, one of which is the Ford Road Pump Station.

Figure 1 - Lower Kaituna Eastern Drainage Area

An extensive list of options for enhancing the pump station in its present location or relocating the pump station were assessed. This long list was reduced to a short list and engagement commenced. Through the engagement process, two options were shortlisted for further investigation, and additional engagement was undertaken. A recommended option was presented to Council in 2021. Council approved the project to replace the pump station by installing a new (additional) pump station at the Diagonal Drain site and allowed funding for the project.

2.2 Purpose

The purpose of the Ford Road Pump Station replacement in the lower Kaituna is to maintain levels of service for drainage and flood mitigation, improve operational issues, improve water quality of the Ongatoro/Maketū Estuary, and allow for climate change. The pump station should also allow for fish passage in keeping with the Department of Conservation (DOC) recommendations. Flood control structures, such as pumping stations typically act as barriers to fish migration. DOC recommend fish passage improvements as pump stations reach the end of their useful lives, and these need to be cognisant of the fish species, the fish size and apply across the life of the pump station asset.

The existing pump station location is no longer suitable due to the need for additional capacity, the current location in the CMA and the likelihood of the discharge creating adverse environmental and cultural effects on the Ōngātoro /Maketū Estuary.

2.3 Project Detail

Work during the 21/22 year focused on the satisfying resource consent requirements, including the assessment of environmental effects and Iwi engagement. The project was paused during 2022/23 to allow the impacts of the Rangiuru Business Park to be assessed. The delivery of this project will support the Business Park development. The stage one drainage works, and the pump selection process have been the focus for the 2023/24 year.

2.3.1 Pump Station Stage One Works

To enable the pump station to be relocated, upgrading the drain network was required. This is to mitigate hydraulic issues associated with the conveyance of stormwater runoff over an increased distance.

The stage one (channel and drainage work) is currently underway. These works involve three components, drain widening, drain crossings (three bridges) and riparian planting works.

The 2021 budget estimate for this work was $1,322,000, however the forecast cost to complete is $2,700,000. Key variations are property access/compensation costs, physical works access (additional bridge) costs and added planting (environmental enhancement) costs. The original estimate was also based on the Rivers and Drainage Operations team undertaking most of the drainage and channel works inhouse. However, this was not possible due to those resources being prioritised for other business as usual operational activities. Works completion is expected in late September 2024.

2.3.2 Pump Station Stage Two Works

Stage two involves the installing of a new pump station at the Diagonal Drain site adjacent to the existing pump station. The project includes the pump station, pipework, the discharge structure and associated works. In 2021 budget provision of $6,938,000 was allowed in the LTP 2021-2031 years 1-3 following preliminary design.

As the design option work has developed, so has the cost estimate. The project was originally scoped based on an Axial Pump however the Archimedes pump option was added as it became evident the Axial pump would not meet fish passage guidelines.

Toi Moana is a partner to the “Pathways to the sea initiative” led by Waikato Regional Council to investigate pumping options to enable safe passage of tuna and other species through Council-run drainage systems and pump stations. Waikato has been trialling the use of Archimedes screw pumps and different impellor types in Axial flow pumps. The most recent fish trial resulted in 99.2% no damage using the Archimedes screw pump compared to 44.8% no damage for the Axial flow pump with the modified impellor. Based on trials, the FishFlow Encased Archimedes screw pump proposed for Ford Road outperforms any other available pump.

The updated forecast cost to complete Stage two is $10,335,000 based on the Archimedes pump option. Key variations are the pump cost, associated larger structures needed to support the pump station, and increased construction costs since 2021.

While the Archimedes Pump Station cost is a higher upfront cost (pump fabrication and establishment) the pump is more efficient to run in the longer term and provides certainty for New Zealand fish passage. An independent peer review was undertaken on the pump optioneering, and Net Present Value analysis has endorsed the Archimedes Pump as the better value option over the long term (75yrs).

Works completed to date include the granting of resource consent, pump selection, and peer review of the pump selection design. There is a lead time of 15 months for the Archimedes pump to be delivered, however preparatory works for the pump station can begin this financial year. Current costings do not include provision for purchasing of land or easement costs associated with the existing Pump Station.

2.3.3 Pump Station decommissioning

Stage three decommissioning work involves decommissioning of the existing gravity outlet, gates, and pump station at the Ford Road site. The 2021 budget estimate for this work was $1,700,000 and while originally planned for 2024/25 it has now been deferred to 2030/31. The table below shows the 2021 budget compared to inflated cost and forecast budget:

Item	LTP budget (2021 estimates and preliminary scope)	Inflationary adjustment to original budget	2024 estimates for updated scope	Scope additions
Stage One Drain widening, access and planting	$1,322,000	$1,545,000	$2,700,000	Land entry compensation, legal fees. Access – additional bridge required over drains and building consents. Riparian planting for environmental enhancement (this item was omitted from the original estimate)
Stage Two New pump Station	$6,938,000	$8,111,000	$8,994,000	Axial Pump Station
Stage Two New pump Station	$6,938,000	$8,111,000	$10,335,000	Change from Axial to Archimedes Pump Station (increase of $1.34M)
Stage Three Demolition	$1,700,000	$1,987,000	$2,100,000	Now provided for in 2030/31
Total	$9,960,000	$11,643,000	$15,135,000

While the updated budget requirement has increased since 2021 a significant portion of that increase is due to increased construction costs.

Ford Road Pump Station	Budget
Actual - spend to date	$2,298,000
Remaining approved budget (LTP 2024-2034 and Carry Forward)	$8,812,000
Balance required	$4,025,000
2024 Budget Requirement	$15,135,000

Table 2 - Budget Summary

2.3.3 Regional Infrastructure Fund

This Ford Road Pump Station project is part of the Kaituna Catchment Control Scheme project, one of 42 projects that have been approved for grant funding through the Regional Infrastructure Fund (RIF). The co-investment from Central Government is to help fund critical flood protection infrastructure, including stopbanks, floodwalls and pump stations, across the region. Grant funding for the Ford Road Pump Station replacement is $5.802M. RIF funding has been approved at 60% of the funding application figure. The application for funding for the Kaituna Catchment Control Scheme included 3 projects (Ford Road Pumpstation, Kaituna stopbank upgrades, and Te Puke Stormwater).

The funding granted through the RIF will offset the additional budget requirement for the Ford Road Pump Station replacement.

3. Considerations

3.1 Risks and Mitigations

The objective of the Ford Road Pump Station Replacement is to maintain levels of service for drainage and flood mitigation in the lower Kaituna drainage area, improve water quality, negate operation issues associated with the existing pump station, meet safe fish passage specifications, and provide for climate change.

The project, as detailed, provides the optimal opportunity to meet the project objectives. If additional funding is not approved the project will need to be downscaled or cancelled.

Ford Road Pump Station Replacement
Risk	Mitigation
Budget – Tenders exceed budget	Engineering estimate Update Quantity Survey estimates. Provisions of NZS 3910:2013 or NZS 3916:2013. Conditions of contract for building and civil engineering construction. Project included in programme approved by Central Government for funding support as part of the Regional Infrastructure Fund. (anticipated funding $5.8M)
Limited capability in the market	Specific procurement plan -Two stage procurement process for major contracts (ROI and RFT).
Delay in sourcing specialty equipment	Pump sourcing and supply built into project programme
Timing – works delayed (due to consent requirements, access restrictions, weather, ground conditions)	Consent granted. Preparatory works underway Execute property access agreements. Prepurchase and storage of material to reduce sourcing time lags and increased costs. Mitigate conditions through construction procurement and methodology.
Reputational Risk	Communications Plan – website project page, e-panui, direct landowner engagement, dedicated communications resource, local papers, and community newsletters. Reporting to Council through Assurance and Risk Committee, Kaituna Catchment Control Scheme Rivers Advisory Group, Kanoa – regional economic development and investment Unit

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. Allowance for climate change has been built into the pump station design

3.3 Implications for Māori

The Kaituna River and the Ōngātoro/Maketū Estuary are taonga and hold special value to iwi and hapū who have a strong interest in the long-term management of our rivers and waterways.

The Ford Road pump station project has been the subject of direct consultation and engagement with Tapuika Iwi Authority and Ngāti Whakaue. Other iwi/Maori consultation has included Ngā Potiki, Ngāi Te Rangi, Ngāti Mākino, Ngāti Pikiao, Ngāti Pūkenga, Ngāti Rangiteaorere, Ngati Rangitihi, Ngati Rangiwewehi, and Te Arawa Lakes Trust, Te Kapu Ō Waitaha. Consultation has also been undertaken for resource consent and archaeological purposes.

This work is part of a priority project (Project 1 - lowland, drains and drainage canal improvement project) of the Kaituna Action Plan prepared by Te Maru o Kaituna River Authority.

Cultural monitoring will be undertaken in conjunction with the physical works.

3.4 Community Engagement

INFORM

Whakamōhio

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

Comprehensive engagement has been undertaken through the project development process, the Long Term Plan processes, the River Advisory Group forum, and the resource consent process. Regular six monthly updates have been provided to the Kaituna Catchment Control Group.

The subject matters for this report relate to costs and funding.

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

Please refer to the relevant analysis in the options below.

Following the completion of the concept design and the update to 2024 costs, the budget requirement for the Ford Road Pump Station replacement has been reviewed. This review indicates an increase of just over $4 million in the required budget.

In evaluating the financial implications, we have included the 10-year forecast for the Ford Road Pump Replacement project, which accounts for the $5.8 million in Regional Infrastructure Funding (RIF) and $4.4 million proposed capital carry forwards from the 2023/24 financial year.

It should be noted that the approved 60% Regional Infrastructure Funding does not account for the increased funding requirement.

The overall impact is a reduction in the loan funding necessary to complete the pump station. Compared to the 2024-2034 Long-Term Plan (LTP), this will result in ongoing savings in interest costs and reduced loan repayments, which will consequently lead to lower rates from year 2 of the LTP (2025/26).

Since the rates for 2024/25 have already been set, any savings derived from the RIF will be allocated to the respective reserves for the Kaituna Catchment Control Scheme.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Stage one works are in hand and close to completion. While Council has been notified of the RIF grant funding contracts are yet to be considered and executed. In the meantime, work continues for the Archimedes pump design and procurement planning. The pump station is expected to be completed by 30 June 2027.

· Complete Stage One channel and drainage works.

· Execute RIF funding contract.

· Execute access agreements.

· Confirm pump design and begin pump procurement process.

· Complete detailed design works for pump station and associated infrastructure.

· Pump station construction.

· Pump station commissioning.



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Mark Townsend, Engineering Manager
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	For Council to approve the Procurement Plan for Rivers and Drainage Capital Works 2024/25

Procurement Plan for Rivers and Drainage Capital Works 2024/25

Executive Summary

This paper seeks approval for the Procurement Plan (Attachment 1) relating to Rivers and Drainage Scheme capital works projects that will begin in 2024/25 as budgeted in the Long Term Plan 2024-2034.

The Council’s procurement approach is based on good practice guidance for the public sector, including social procurement consideration. The approach seeks approval for the proposed method of procurement before going to the market. The proposed outcome of the procurement process is to tender then engage the most appropriate contactors to undertake the physical works as required.

It is recommended that the Council delegate to the Chief Executive the authority to approve the award of any contract, and to execute the contracts with the successful tenderer for each of the projects included in the Procurement Plan, provided that each tender is within the approved budget as set out in the Long Term Plan 2024-2034.

Recommendations

That the Regional Council:

1 Receives the report, Procurement Plan for Rivers and Drainage Capital Works 2024/25.

2 Approves the attached Procurement Plan for Rivers and Drainage Capital Work 2024/25.

3 Delegates to the Chief Executive the financial authority to accept tenders and approve contractors, supplier selections, and payments, including contract variations and renewals for each capital project providing that the total value of all contracts are within the approved budget for Capital works as provided for in an approved Long Term Plan.

1. Introduction

It is recommended good practice in New Zealand for organisations to gain approval on their method of procurement before going to the market. The Council’s procurement framework is based on this good practice guidance for the public sector. This paper reflects a very similar approach taken this time last year for last year’s rivers and drainage capital programme for Toi Moana.

It is considered efficient to produce one procurement plan that covers most of the River and Drainage capital works for the coming year. This approach is adopted to support planning for the year ahead and avoid construction delays. The plan allows for approaches to market that provide for the major capital works projects planned to begin in the 2024/25 year. Noting that some of these projects are across the first three years of the LTP.

Other capital works underway or planned for 2024/25 have previously had approved high level procurement plans.

More detailed and contract specific procurement planning supported by the council procurement and legal team will be developed and approved as part of each project delivery.

1.1 Legislative Framework

1.2 Alignment with Strategic Framework

Safe and Resilient Communities	We support community safety through flood protection and navigation safety.
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We deliver value to our ratepayers and our customers.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

þ Cultural

Low - Positive

þ Social

Medium - Positive

þ Economic

High - Positive

The decisions recommended in this paper support the delivery and procurement of capital projects and promote organisational efficiency.

2. Procurement Planning

2.1 Rivers and Drainage Scheme Capital Works 2024/25

This report seeks approval for the Procurement Plan relating to 2024/25 capital works projects in the Rivers and Drainage Schemes. The single Procurement Plan establishes the method of engagement of suitably qualified and experienced contractors with the skills and resources necessary to carry out planned works. The plan outlines the projects covered, the contract type, method of procurement, the tendering process, evaluation methodology, risks associated with the procurement and roles and responsibilities.

The proposed outcome of this procurement process is to engage the most appropriate contractors to undertake the physical works, in keeping with the evaluation method.

The estimated value of the individual construction contracts contained in the procurement plan will exceed the Chief Executives delegation of $500,000. For this reason, staff recommend to Council to delegate to the Chief Executive the authority to approve the award of contract and to execute the contracts with the successful tenderers for each of the projects, provided they are within the proposed contract budget for the Long Term Plan 2024-2034

3. Considerations

3.1 Risks and Mitigations

Risks and Mitigations - Rivers and Drainage Capital Works 2024/25 Procurement Plan
Risk	Mitigation
Tender prices exceed budget	Engineering Estimate Provisions of NZS 3910:2013 Conditions of contract for building and civil engineering construction.
Limited capability in the market	Open Tender Evaluation method
Low number of suppliers	Open Tender GETS (Government Electronic Tender Service) used to advertise and manage the tender process.
Time constraints to tender	GETS (Government Electronic Tender Service) used to advertise and manage the tender process. BOPRC Procurement Team support Rivers and Drainage Contractors Panel Engineering Panel
Reputation risk	GETS (Government Electronic Tender Service) used to advertise and manage the tender process. BOPRC Procurement Team support

3.2 Climate Change

Crtl + click for guideline material.

These projects are designed to support climate change adaptation in our communities. The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

Crtl + click for Guideline material.

The Council has a responsibility to manage the risks posed by our major rivers, particularly those included in the council’s flood and drainage control schemes. Our Bay of Plenty Iwi have an inherent interest in the long-term health and management of our rivers and waterways. The flood mitigation and environmental work encompassed by these projects are fundamentally of interest to Māori as kaitiaki and individual projects require specific engagement and consultation with Iwi partners.

3.4 Community Engagement

Consider identifying in the report:

Engagement with the community is not required as the recommended proposal / decision relates to internal Council matters only.

The need for these projects and their funding impact on ratepayers was consulted on comprehensively during the recent LTP consultation.

3.5 Financial Implications

The Rivers and Drainage Activity capital works programme is provided for in the Long Term Plan 2024-2034. There are no budget implications associated with the adoption of the attached Procurement Plan - Rivers and Drainage Activity Capital Works 2024/25.

Procurement Item	Estimated work commencement	Procurement reference	LTP Budgeted cost of procurement (000)
Ohineangaanga Erosion Repairs	February 2025	TBA	$1,060
Ngongotahā Stream Civil Works	November 2024	TBA	$5,660
Rangitāiki River and Canal stopbank upgrades	October 2024	TBA	$2,107
Whakatāne Project Future Proof Stages 2 - 4	October 2024 – January 2025	TBA	$15,934
Safeguarding our Stopbanks - Stage 4	October 2024	TBA	$924

Table 1 – Procurement Plan items 2024/25

4. Next Steps

The approval of the attached Procurement Plan will allow for efficiencies in approaching the market, timely award, and contract delivery commencement, provided budget requirements are met.

In the case of the Ngongotahā Stream Civil Works and Whakatane Future Proof detailed procurement plans will be developed alongside the procurement team to provide for the various phases of the project. The budget for these works is across multiple years. It is noted that the existing Ngongotahā project budget does not provide for revisiting the Western Road raising design.

Capital works progress will be reported regularly through the Monitoring and Operations Committee and to the relevant River Scheme Advisory Group.

Attachments

Attachment 1 - 20240816 Procurement Plan for 2024-25 Capital Works (R&D) ⇩



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Baylee Jackson, Land Management Officer
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	To request approval from Council to enter a procurement process to establish a panel of suppliers for constructed wetland design and implementation services and to enter into any resulting contracts.

Procurement Plan - Constructed Wetland Design and Implementation Services

Executive Summary

In accordance with its 2024-2034 Long Term Plan, Bay of Plenty Regional Council is seeking to build constructed wetlands to reduce nitrogen entering Lake Rotorua and enhance wetland biodiversity and carbon sequestration.

We are proposing to commence a competitive procurement of specialist suppliers to assist with ongoing design and implementation of constructed wetlands. We are seeking suppliers who have technical expertise in constructed wetland design for nutrient removal and can work across a wide range of stakeholders.

The Procurement Plan proposes to approve a procurement process for a 10-year period to ensure Council has a panel of suppliers that can provide specialist skills required to design these wetlands over this time period.

The total value of any contracts resulting from this procurement process will exceed staff delegations and Council’s approval is sought to enter into any resulting supplier selection, contracts, renewals or variations as required.

Recommendations

That the Regional Council:

1 Receives the report, Procurement Plan - Constructed Wetland Design and Implementation Services .

2 Notes that the funding for this procurement is approved in the current Long-Term Plan.

3 Notes that this work is being undertaken to achieve targets set in the Regional Policy Statement, Regional Plans and the Integrated Framework for Lake Rotorua

4 Delegates to the Chief Executive the ability to approve all contracts, supplier selections and payments including contract variations and renewals under this supplier panel.

5 Delegates to the supplier panel sponsor the ability to make all tactical and operational procurement decisions related to this supplier panel.

1. Introduction

Lake Rotorua is under pressure from development and land-use changes that have contributed to reducing lake quality. Catchment land use activities are a major source of nitrogen and phosphorus to the lake which enter the lake via streams, springs and groundwater.

The Rotorua Te Arawa Lakes Strategy Group is a partnership between the Regional Council, the Rotorua Lakes Council, and Te Arawa Lakes Trust. In 2013, under this programme, Council adopted an Integrated Framework designed to achieve sustainable nutrient loads to Lake Rotorua.

This programme includes an ‘Engineering Solutions’ component which has the objective of removing 50 tonnes of nitrogen from Lake Rotorua each year. Establishing wetlands for long-term sustainable nutrient removal was identified as the most sustainable and practical option for achieving the 50 tonnes of nitrogen removal target.

We have built one wetland and developed designs for another two wetlands using Syrinx Environmental, an Australian based company with much experience in wetland design and construction. Now that we have funds secured for these wetlands through the full 10 years of the 2024 – 2034 Long-Term Plan, we have proposed a competitive Procurement Plan. This is to ensure Council has a panel of suppliers that can provide specialist skills required to design these wetlands over that ten year time period.

We seek appropriate delegations to establish and operate the supplier panel. This includes delegation for tactical and operational procurement decisions as granted by Council in March 2024 for all existing supplier panels.

1.1 Legislative Framework

There are no specific legislative requirements related to this procurement. Any suppliers that are contracted under this procurement plan will be required to comply with applicable legislative and legal requirements as part of the design and delivery of any resulting wetland.

1.2 Alignment with Strategic Framework

A Healthy Environment	We work cohesively with volunteers and others, to sustainably manage and improve our natural resources.
Freshwater for Life	We collaborate with others to maintain and improve our water resource for future generations.
The Way We Work	We look to partnerships for best outcomes.

Work enabled through this procurement plan helps to improve the natural environment by designing wetlands that maximise nitrogen removal, act as carbon sinks, and improve ecological values for our communities and future generations.

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 environmental benefits of wetlands in the landscape are recognised regionally and nationally, providing many benefits including improving water quality by filtering nutrients and removing contaminants, reducing floods and supporting biodiversity. They also help store carbon, which fosters better climate resilience.

Wetlands are of great importance as Māori have strong cultural, traditional and historical links with wetlands. These taonga are spiritually significant and closely linked to the identities of the tangata whenua. Many people wish to re-establish wetlands as a source of traditional food and for other cultural practices.

Operational spend linked to this procurement will lead to positive economic benefits by contracting providers who can design wetlands to maximise nitrogen removal and by engaging expertise which presents the best value for money.

2. Services proposed in Procurement Plan

The wetlands project is budgeted for the full 10 years of the 2024-2034 Long-Term Plan. A total of $13 million is provided across those 10 years to build wetlands in the Lake Rotorua catchment, it is estimated that up to 20% (up to $2.6 million) of this budget will be required for wetland design services as sought in the Procurement Plan.

We would like to move through a competitive procurement of specialist suppliers to assist with ongoing design and delivery of wetlands that maximise nitrogen removal, and as far as possible with the same level of investment, maximise complementary benefits in ecology, provision for cultural practices and carbon sequestration.

We are seeking suppliers who have technical expertise in constructed wetland design for nutrient removal, can effectively deliver nature-based solutions, and can work across a wide range of stakeholders.

We will approach the market through a Request for Proposals. The proposed Procurement Plan sets out the expertise we are seeking from specialist suppliers to form a panel of providers with skills required to design wetlands over the ten-year period.

Once the panel of suppliers is established, individual proposals for projects will be sought from suppliers on the panel based on a Work Brief (within the scope of the Procurement Plan). Each Work Brief would set out the required services, deliverables, fees and any KPIs or additional contractual requirements. Work Briefs could be for varying durations and values within the overall term and scope of the ten-year funding term under the Long-Term Plan.

Below are the key services that may be provided under the resulting contracts and Work Briefs.

2.1 Contracting Suppliers for service

Key services provided by the contractors will vary depending on the wetland project and will be agreed to as appropriate with the contracted supplier through a Work Brief. Key services may include but are not limited to:

· Support in the initial phases of wetland feasibility and site selection including review of information such as geotechnical investigations, flood modelling assumptions, drainage design, and cultural mapping investigations.

· Wetland design services incorporating a range of technical information, cultural values and stakeholder preferences.

· Wetland construction support services including construction supervision, monitoring and training.

· Support to establish robust environmental monitoring including soil quality, carbon, and water.

· Project management and administration as required to deliver the Work Brief.

3. Considerations

3.1 Risks and Mitigations

The primary risk is that the wetlands we build do not deliver the desired nitrogen reduction to the lake estimated by the design. This is difficult to determine in advance of the construction, but we mitigate this by ensuring that we have well defined monitoring programmes in place for the wetlands we build, which will inform decision making on future investment. We are also looking to engage services through this procurement from suppliers who have successfully delivered wetlands where monitoring shows proven nutrient reduction. The effectiveness of these wetlands will be assessed as part of the 5-yearly independent science reviews for Lake Rotorua as per our Regional Plan requirements.

When establishing the panel of suppliers, the Legal and Commercial teams will assist to develop appropriate contracts and secondary procurement processes. Procurement and contracting of services under the new panel of suppliers will follow those processes. Agreeing a panel contract with a supplier will not guarantee work or any fees. We plan to contract suppliers under a Work Brief for specific pieces of work as and when required. There are no material risks with this approach and any concerns that arise during procurement can be addressed with assistance from the Legal and Commercial teams. Concerns that require tactical and operational changes to the panel of suppliers can be efficiently addressed by the General Manager under the Council approved delegation.

This approach to market is to ensure that Council has the expertise it needs to deliver on the nitrogen reduction targets set in its Regional Policy Statement for Lake Rotorua, in-particular the engineering solutions target of the Integrated Framework and to ensure that Council is engaging expertise which maximises value for money.

Regarding health and safety, the majority of work will be office based, but some field work may be required for site investigations and construction supervision. Any suppliers will need to provide a health and safety plan and meet any requirements relevant to specific work or sites they are engaged on.

3.2 Climate Change

Mitigation			Adaptation
Reduce GHG emissions	Produce GHG emissions	Sequester carbon	Anticipate climate change impacts	Respond to climate change impacts
☐	☐	☒	☒	☐

The Bay of Plenty Regional Council’s climate change statement in the Long-Term Plan recognises the significant implications that climate change will have for the Bay of Plenty and the need for mitigation and adaptation actions. It also identifies the significance of identifying opportunities for nature-based solutions and enhancing biodiversity, including the creation of wetlands.

The restoration and construction of wetlands are considered to be positive from a climate change mitigation perspective as wetlands increase carbon sequestration and improve local resilience to weather events. Effects of future climate impacts such as fluctuations in water levels will be factored into the design of the wetlands.

3.3 Implications for Māori

We have an existing Framework Agreement with Te Arawa Lakes Trust (TALT) who have an established operations team with whakapapa to the Te Arawa Lakes catchments to deliver a variety of key environmental services. We intend to work with TALT, as well as Iwi groups who have the capacity and capability to support the development and ongoing maintenance and monitoring of wetlands.

There is strong support for wetland development and a strong desire to be actively involved in aspects of the programme, including delivery. The development of wetland design and implementation would ideally be done in partnership with local iwi/ hapu so that values and customary activities are incorporated into the design.

3.4 Community Engagement

Engagement with the community is not required as the recommended decision relates to internal Council process matters only.

3.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

The 2024-2034 Long Term Plam has a capital budget of $13 million over the 10-year period for engineering solutions – towards the 50-tonne target of the Integrated Framework for Lake Rotorua, budgeted as shown in the table below.

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4. Next Steps

If Council approves the Procurement Plan in this paper, it is proposed that staff will proceed through the procurement process and approach the market through a Request for Proposals released on the 16^th of September 2024.

Following this, we will enter into resulting contracts for wetland design and implementation support.

Attachments

Attachment 1 - Constructed Wetland Design and Implementation Services Comprehensive Procurement Plan ⇩



Report To:	Regional Council
Meeting Date:	12 September 2024
Report Writer:	Tone Nerdrum Smith, Senior Advisor, Governance
Report Authoriser:	Karen Aspey, General Manager, People and Leadership
Purpose:	Seeking an amendment to Standing Orders regarding virtual attendance at meeting

Amendment to Standing Orders: Virtual Attendance at Meetings

Executive Summary

This report asks the Council to consider the adoption of an amended set of Standing Orders with the inclusion of remote participation (attending via audio or audiovisual link) to continue to count towards quorum at Council and Committee Meetings once the Severe Weather and Emergency Recovery Legislation Bill provisions lapse on 30 September 2024.

Recommendations

That the Regional Council:

1 Receives the report, Amendment to Standing Orders: Virtual Attendance at Meetings.

2 Approves the following amendments to Council’s Standing Orders (refer Attachment 1):

a) Amend the Definition Section to read “Present at the meeting to constitute quorum means the member is to be present (in person or via audio/audiovisual link)”;

b) Amend Standing Order 11.1 (Council Meetings) to read: “The quorum for a meeting of the council is:

(a) Half of the members present (in person or via audio/audiovisual link), where the number of members (including vacancies) is even; and

(b) A majority of the members present (in person or via audio/audiovisual link), where the number of members (including vacancies) is odd. r”;

c) Amend Standing Order 13.8 (Member’s status: quorum) to read “Members who attend meetings by electronic link will be counted as present for the purposes of a quorum.”;

d) Amend Standing Order 13.9 (Member’s status: voting) to read “Where a meeting has a quorum, determined by the number present (in person or via audio/audiovisual link), the members attending by electronic link can vote on any matters raised at the meeting.”;

e) Amend Standing Order 13.11 (Conditions for attending by audio or audio-visual link) to read: “Noting standing order 13.7, members may attend meetings by electronic link, either generally or for a specific meeting, if the technology allows”;

f) Amend Standing Order 13.12 (Request to attend by audio or audio visual link) by replacing the word ‘request’ with ‘notification’; AND

g) Amend Standing Order 13.10 (Chairperson’s duties) by deleting the sentence “If the Chairperson is attending by audio or audio-visual link, then chairing duties will be undertaken by the Deputy Chair, or a member who is physically present”; OR

h) Do not amend Standing Order 13.10 (Chairperson’s duties) and retain the requirement that the Chairperson must physically present [in the event of a hybrid meeting].

3 Notes that a 75% majority vote is required to amend Standing Orders.

1. Introduction

Schedule 7, clauses 23 – 25B of the Local Government Act 2002 (LGA) provide the legislative parameters for the conduct of Council and Committee meetings and outline what constitutes a quorum for the conduct of meetings. Council’s current version of Standing Orders is based on these provisions in the LGA, and the current version of Standing Orders (Standing Orders 11.1, 13.8 and 13.9) provides for remote participants at Council and Committee meetings to be able to participate and vote in meetings, but not be counted towards quorum. Standing Orders 13.11 and 13.12 provide for other aspects of remote attendance.

During the COVID-19 pandemic and most recently during the Cyclone Gabrielle response, the Government enacted temporary provisions in the LGA to allow for remote participants (via audio or audiovisual link) to also count toward quorum in order to enable councils to continue to conduct their business when the ability to meet in person and meet this legislative requirement was restricted.

On 30 September 2024, the latest temporary provisions enacted by Central Government during the Cyclone Gabrielle response will expire. However, an amendment to the LGA was enacted on 30 August 2024, providing for all participants (in person and remote) to count towards quorum if a territorial authority’s Standing Orders allow for it.

A minor amendment to Standing Orders 11.1, 13.8 and 13.9 is therefore proposed in order to maintain the Council’s current practice of holding hybrid meetings (a meeting with both virtual and physical attendees) and lower the risk of meeting cancellation due to lack of quorum once the temporary provisions enabling this have lapsed.

A further amendment to Standing Orders 13.11 and 13.12 is proposed as specific approval to attend a meeting via electronic means is no longer required, although prior notice is preferable to facilitate the necessary practical arrangements.

Finally, Standing Orders 13.10 (Chairperson’s duties) currently stipulates that the Chairperson must be physically present at a hybrid meeting to undertake the Chair’s duties. Council has the opportunity to remove this requirement, enabling the Chairperson to chair when attending via audio/audiovisual means. There is no requirement in the LGA that the Chairperson must be physically present to chair a meeting.

Under the provisions of schedule 7 clause 27 of the LGA, a local authority must adopt a set of Standing Orders for the conduct of meetings. The adoption of a new or amended set of Standing Orders can only be resolved by the Council and must achieve a vote of not less than 75% of members present (a supermajority), i.e. a supportive vote from 11 members if all 14 members are present.

1.1 Legislative Framework

On 30 August 2023, the Local Government Electoral Legislation Bill received royal assent. Amongst changes to the Local Electoral Act 2001, this Bill also sought permanent amendments to the LGA provisions around quorum requirements in the supplementary order paper dated 18 July 2023 in the Explanatory Note section (as per Attachment 2). As a result of the Bill, once the provisions enacted by the Severe Weather and Emergency Recovery Legislation Bill lapse, from 1 October 2024, member attendance by audio link or audio-visual link at Council and Committee meetings will count towards quorum if a territorial authority’s Standing Orders allow for this.

The LGA enables councils to manage provisions for remote participation through their Standing Orders themselves and makes the changes enabled throughout the COVID-19 pandemic and the Cyclone Gabrielle response permanent.

1.2 Alignment with Strategic Framework

The Way We Work

We continually seek opportunities to innovate and improve.

Enabling members to attend meetings virtually, yet count towards the quorum of the meeting, supports effective meeting processes and recognises members’ individual and changing needs and ability to attend a meeting in person.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

¨ Social

þ Economic

Low - Positive

Reducing members’ meeting travel has a positive impact on emissions, and attending virtually minimises the need for accommodation, catering etc., i.e. represents a reduction in costs.

2. The Proposed Amendments to Council’s Standing Orders

2.1 Current Standing Orders

The current Standing Orders allow for members to attend meetings via electronic (audio/audiovisual) means providing certain conditions are met. However, members who attend meetings by electronic means cannot be counted as present for the purposes of a quorum, but if a quorum has been met by those physically present, then members attending via electronic means are able to participate in and vote on any matters raised during the meeting. In practice, the legislation that will soon lapse currently over-rides this part of Standing Orders, so in effect, members attending by audio-visual link count towards quorum currently. If no changes are made to Council’s Standing Orders, when the legislation lapses at the end of September 2024, virtual attendees will not count towards quorum.

2.2 Temporary Legislative Provisions to Count Remote Participants Towards Quorum

During the COVID-19 pandemic, an Epidemic Management – Covid-19 Notice 2020 (the Notice) was in force which made temporary amendments to the Local Government Act 2002 under section 25B to enable councils to hold virtual meetings and count all remote participants towards quorum. The Notice was in force from March 2020 until October 2022.

The effect of this temporary amendment was to ensure that quorum requirements, which would otherwise require physical attendance by elected members, were met when elected members attended meetings remotely due to adhering to lockdown or isolation requirements set by Government direction. In October 2022, after multiple extensions, the Notice lapsed, which required councils to revert to holding meetings under the standard provisions of the LGA. In practice this meant elected members were required to be present in person at meetings in order to be counted towards quorum. They were still able to attend remotely and vote in these meetings.

In March 2023, at the start of the Cyclone Gabrielle response, the Government passed the Severe Weather Emergency Recovery Legislation Bill, which amongst other provisions, brought back the same provisions for councils to allow for remote participants to be counted towards quorum to enable councils to continue to conduct their business when the ability to meet in person was restricted.

2.3 Benefits of Amending Standing Orders

The amended Standing Orders will allow for remote participation to be counted towards quorum in line with the intent of the amended legislation to enable councils to decide to make these provisions permanent.

The amendments to Standing Orders will align with the Council’s current practice of holding hybrid meetings as required.

There is less risk of a meeting being cancelled due to lack of quorum and in the event of an emergency, the Council would be able to hold fully remote meetings and continue to conduct its business when the ability to meet in person is restricted.

3. Considerations

3.1 Risks and Mitigations

Although there is an element of risk that the Council’s chosen audiovisual system/technology could fail, such risk can be mitigated by members attending via other means, e.g. mobile phone or a landline.

3.2 Climate Change

Reducing members’ meeting travel will have a positive impact on carbon emissions.

3.3 Implications for Māori

This matter is of a procedural nature and does not have a direct implication for Māori.

3.4 Community Engagement

Engagement with the community is not required as the recommended decision as it is of a procedural nature.

3.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

4. Next Steps

Once adopted, the amended Standing Orders will be made publicly available on the Council’s website.

Attachments

Attachment 1 - Amendments - Standing Orders (Adopted 24 November 2022) ⇩

Attachment 2 - Supplementary Order Paper - Local Government Electoral Legislation Bill - 18 July 2023 ⇩

[3] Origin and destination data is only available where Beecard users tag both on and off buses. Trips where full origin and destination is not known have been allocated proportionally.

[4] Source – BOPRC Ferry Feasibility Study, 2023

[5] Regional councils, unitary authorities and Auckland Transport are collectively referred to as public transport authorities (PTAs). All public transport services in New Zealand must be delivered by, or be under contract to a public transport authority, unless exempt or excluded.

[6] The regional fund reserve is an alternative Regional Council funding source used to fund future infrastructure projects. Is replenished through budgeted contributions from activities and is available for use by all activities.