Agenda of Regional Council - Wednesday, 11 December 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 11 December 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

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 - 23 October 2024 12

9. Presentations

9.1 Õhau Wall (Rotorua Lakes) - Lakes Water Quality Society

Presented by: John Atkinson and Don Gifford

10. Reports

Decisions Required

10.1 Õhau diversion wall repair progress and water quality impact 26

10.2 Chairperson's Report 32

10.3 2025/26 Annual Plan 36

10.4 2025/26 - Fees & Charges review 43

Attachment 1 - Draft Fees and Charges Policy 2025/26 49

10.5 Quayside Holdings Limited and Toi Moana Trust - Statement of Expectations 2025/26 87

Attachment 1 - Draft Statement of Expectations for Quayside Holdings Limited and Toi Moana Trust for 2025/26 91

10.6 Quayside Holdings Limited - Directors Remuneration Review 95

Attachment 1 - Quayside Directors Remuneraton Review Recommendation to Council - Updated 101

Attachment 2 - Strategic Pay Directors Fees Report November 2024 104

Attachment 3 - Appointment and Remuneration Policy for Directors of Council Organisations 122

10.7 Regional Fares Review 148

10.8 Tauranga Public Transport Joint Committee - Updated Terms of Reference 160

Attachment 1 - Proposed Tauranga and Western Bay of Plenty Transport Joint Committee Terms of Reference 165

10.9 Representative Action Litigation Funding 168

Attachment 1 - Flood Litigation Work Programme Update (copy of R&A confidential report) - Public Excluded

10.10 Notice of Motion: Principles of the Treaty of Waitangi Bill 174

10.11 Bay of Plenty Civil Defence Emergency Management Recovery Manager Nomination 178

10.12 Appointment of Acting Chief Executive 181

Information Only

10.13 Whakatane Project Future Proof - Update 184

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
10.9	Representative Action Litigation Funding - Attachment 1 - Flood Litigation Work Programme Update (copy of R&A confidential report) - Public Excluded	Withholding the information is necessary to maintain legal professional privilege.	48(1)(a)(i) Section 7 (2)(g).	On the Chief Executive's approval.
11.1	Public Excluded Regional Council Minutes - 23 October 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
11.2	Rotorua Land Acquisition Business Case Update and Next Steps	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons; Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(a); 48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
11.3	Regional Deals Governance Delegation	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
11.4	Chief Executive’s Recruitment – Chief Executive Job Description and Job Sizing	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
11.5	Council Chair and Deputy Chair Chief Executive negotiation delegations	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.

10.9 Representative Action Litigation Funding

Attachment 1 - Flood Litigation Work Programme Update (copy of R&A confidential report) - Public Excluded

Minutes to be Confirmed

11.1 Public Excluded Regional Council Minutes - 23 October 2024

Decisions Required

11.2 Rotorua Land Acquisition Business Case Update and Next Steps

Attachment 1 - Veros Report

11.3 Regional Deals Governance Delegation

11.4 Chief Executive’s Recruitment – Chief Executive Job Description and Job Sizing

11.5 Council Chair and Deputy Chair Chief Executive negotiation delegations

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

23 October 2024

Regional Council

Open Minutes

Commencing: Wednesday 23 October 2024, 09:30am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Stuart Crosby

Cr Toi Kai Rākau Iti

Cr Matemoana McDonald

Cr Kat Macmillan

Cr Ron Scott

Cr Ken Shirley

Cr Paula Thompson

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Fiona McTavish – Chief Executive, Mat Taylor – General Manager Corporate, Namouta Poutasi – General Manager Strategy & Science, Reuben Fraser – General Manager Regulatory Services, Chris Ingle – General Manager Integrated Catchments; Kataraina O’Brien – General Manager Strategic Engagement, Steve Groom – Governance Manager, Kumaren Perumal – Chief Financial Officer, AJ Prinsloo – Finance Manager, Merehine Waiari – Senior Advisor, Monique Brooks – Legal and Commercial Manager, Graeme Howard – Corporate Planning, Oliver Haycock – Director, Public Transport, Mark Le Comte – Principal Advisor Finance, Tone Nerdrum Smith – Senior Advisor Governance

Presenters as listed in the minutes

Apologies: Cr Malcolm Campbell, Cr Paula Thompson, Cr Lyall Thurston

1. Opening Karakia

A karakia was provided by Cr Te Taru White.

2. Apologies

Resolved

That the Regional Council:

1 Accepts the apologies from Cr Campbell, Cr Thompson (possible early departure) and Cr Thurston (late arrival) tendered at the meeting.

Leeder/White

CARRIED

3. Order of Business

3.1

Withdrawal of Item 9.9: Approval to Release Draft Regional Policy Statement Change 7 (Freshwater) and Draft Regional Natural Resources Plan Change 19 (Freshwater)

Chairman Leeder asked Fiona McTavish – Chief Executive to speak to this item.

Key Points:

· Due to the announcement from Central Government to add an amendment to the Resource Management Act Amendment Bill that would restrict councils’ ability to notify freshwater plans before the gazettal of the replacement National Policy Statement for Freshwater Management, this item on the Council agenda was being withdrawn as per Standing Orders 9.9: Withdrawal of agenda items

· Other aspects of the Plan Changes, not affected by the amendment, would be brought before the Councillors for discussion in the future.

Resolved

That the Regional Council:

1 Withdraws Agenda Item 9.9: Approval to Release Draft Regional Policy Statement Change 7 (Freshwater) and Draft Regional Natural Resources Plan Change 19 (Freshwater)

Thompson/Macmillan

CARRIED

4. Declaration of Conflicts of Interest

Cr Kevin Winters declared an interest in Item 9.6: Royal New Zealand Coastguard – Regional Safety and Rescue Service Funding Agreement as Treasurer of Rotorua Lakes Coastguard.

Cr Stuart Crosby and Cr Te Taru White declared an interest in Item 9.11: Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2024 as Quayside Holdings Ltd Directors.

5. Minutes

Minutes to be Confirmed

5.1

Regional Council Minutes - 12 September 2024

Matters Arising

Noted that the possible re-establishment of the Navigation Safety Bylaws Review Committee was under consideration.

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 12 September 2024 as a true and correct record.

White/Scott

CARRIED

6. Reports

6.1

Chairperson's Report

Presented by: Chairman Leeder.

Key Points:

· Noted the presentation by Toi Kai Rawa of the launch of the Māori STEAM (Science, Technology, Engineering, Arts, Mathematics) Workforce Development Strategy, and the engagement with youth.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/Crosby

CARRIED

6.2

Approval of Funding Policies

Presented by: Kataraina O’Brien – General Manager Strategic Engagement and Merehine Waiari – Senior Advisor.

Key Points:

· Provided an outline of the process to date, and how the criteria for the funding policies had been developed

· The policies were intended to be flexible and adjustable if required

· Six co-governance forums, including TMAG, would be eligible to apply for funding

· Noted that a Strategy & Policy Committee workshop would take place on 30 October 2024, where further options regarding the Māori Initiatives Fund would be discussed to ensure alignment and consistency between the funding policies.

Resolved

That the Regional Council:

1 Receives the report, Approval of Funding Policies.

2 Approves the draft Regional Co-Governance Secretariat Fund Policy (Aronga Ngātahi), (Attachment 1).

3 Approves the draft Māori Initiatives Fund Policy (He Ara Taituarā), (Attachment 2).

4 Delegates to ~~staff~~, AMEND TO: Chief Executive , authority to update this policy with any required changes as a result of the Community Funding Review in 2024.

Leeder/McDonald

CARRIED

6.3

Bay of Plenty Regional Tertiary Contracts

Presented by: Oliver Haycock – Director, Public Transport.

Key Points:

· Regional Council had operated this service since 2020, which incorporated 51% funding from Waka Kotahi NZTA with the remaining funding being split between Council and two tertiary education providers (Toi Ohomai and University of Waikato)

· Recent NZTA funding changes meant a $180k funding shortfall to Council if the service was to be continued

· Noted that at this stage, neither of the tertiary providers had committed to continue their funding of the service without the NZTA funding contribution

· The Public Transport Committee had recommended the cancellation of the service in recognition of the significant financial constraint for all parties involved

· Staff had worked closely with the tertiary providers on options for continuing to provide transport services in some areas, in particular for the community of Murupara

· Public transport services were not always compatible with the start/finish time of tertiary education and commuting students might need to consider alternative modes of transport if the tertiary contract was discontinued

· Transformation to online study did impact on the need to travel, however applied skills courses required on-site attendance.

Key Points - Members:

· Sought continued exploration of opportunities for public/private partnership transport options to ensure continued community access to educational institutions, in particular in the rural Eastern Bay of Plenty areas.

Resolved

That the Regional Council:

1 Receives the report, Bay of Plenty Regional Tertiary Contracts.

2 Notes the Public Transport Committee resolution made on 24 September 2024 to endorse the recommendation to Regional Council that the Bay of Plenty Regional Tertiary Commuter services cease at the end of 2024.

3 Approves that the Bay of Plenty Regional Tertiary Commuter services cease at the end of 2024.

von Dadelszen/Winters

CARRIED

6.4

Summerhill Charitable Trust - Community Funding Request

Presented by: Chris Ingle – General Manager Integrated Catchments, Reuben Fraser – General Manager Regulatory Services and Graeme Howard – Corporate Planning Lead.

Key Points - Members:

· Supported the transfer of unutilised CIF funding that could then be allocated to the carpark upgrade

· Queried if the Regional Fund could have been suitable for this project

· Recognised the ongoing and positive cooperation between Council and Summerhill Park Trust

· Noted current financial constraints and the instruction to staff for savings, yet it could be challenging to support such saving initiatives

· Recognised the benefits the alternative access via Summerhill Park carpark provided for Pāpāmoa Hills Regional Park visitors.

Key Points - Staff:

· In its Long Term Plan 2024-34 (LTP), Council had determined that the Regional Fund should not be allocated to infrastructure projects and that any exceptions to this would be brought before Council for consideration, as was the case here

· If the request was declined, the funding would be reallocated to other projects as appropriate

· The Regional Fund was intended as a contingency fund for emergencies

· The success of the Pāpāmoa Hills Regional Park upgrade meant an increase in visitors to and via Summerhill Park, which created significant pressure on their carparking facilities.

Resolved

That the Regional Council:

1 Receives the report, Summerhill Charitable Trust - Community Funding Request.

2 Approves the following option for the funding request from Summerhill Charitable Trust:

- Approve the transfer of a total of $100,000 ($50,000 in 2024/25 and $50,000 in 2025/26) of the unallocated budget from the Community Initiative Fund budget to the Regional Parks Activity budget.

3 Notes that any increase to the Regional Parks Budget under 2(b) would be used to support the improvement of the car park at Summerhill, and therefore improved access to the Pāpāmoa Hills Regional Park.

4 Requests that Te Uepu, the decision-making entity for the Regional Park, progresses a partnership agreement with Summerhill Trust.

Macmillan/Nees

CARRIED

Cr Shirley, Cr von Dadelszen and Cr Winters opposed the motion.

6.5

Royal New Zealand Coastguard - Regional Safety and Rescue Service Funding Agreement

Resolved

That the Regional Council:

1 Receives the report, Royal New Zealand Coastguard - Regional Safety and Rescue Service Funding Agreement.

2 Notes that the total funding allocated to Royal New Zealand Coastguard for the three-year period from 2024/25 to 2026/27 is $614,880 plus GST and was confirmed though Council Deliberations and adoption of the Long Term Plan 2024-2034.

3 Delegates to the Chief Executive authority to sign and approve all appropriate contract documentation for the Regional Safety and Rescue Service funding agreement with Royal New Zealand Coastguard for the three-year period from 2024/25 to 2026/27.

Crosby/White

CARRIED

6.6

Surf Lifesaving New Zealand - Regional Safety and Rescue Service Funding Agreement

Cr Winters declared an interest in this item as Treasurer of Rotorua Lakes Coastguard and abstained from discussion and vote.

Presented by: Chris Ingle – General Manager Integrated Catchments, Reuben Fraser – General Manager Regulatory Services and Graeme Howard – Corporate Planning Lead.

Key Points - Members:

· Queried the alignment with Council’s Strategic Framework, i.e. the ‘Future Ready Communities’ as set out in the report.

Key Points - Staff:

· Outlined the considerations and rationale around ‘strategic fit’ as identified in the report, relating to the regionwide Civil Defence Emergency component of the rates for the Regional Rescue Service.

Resolved

That the Regional Council:

1 Receives the report, Surf Lifesaving New Zealand - Regional Safety and Rescue Service Funding Agreement.

2 Notes that the total funding allocated to Surf Lifesaving New Zealand for the three-year period from 2024/25 to 2026/27 is $1,076,040 plus GST and was confirmed though Council Deliberations and adoption of the Long Term Plan 2024-2034.

3 Delegates to the Chief Executive authority to sign and approve all appropriate contract documentation for the Regional Safety and Rescue Service funding agreement with Surf Lifesaving NZ for the three-year period from 2024/25 to 2026/27.

Crosby/White

CARRIED

6.7

Updated Financial Delegation to the Group Controller

Presented by: Reuben Fraser – General Manager Regulatory Services and Monique Brooks – Legal and Commercial Manager.

Key Points:

· ‘Who paid’ if the delegation was acted upon in case of an emergency would depend on the nature of the spend

· The Central Government Emergency Management reforms were closely monitored by the Bay of Plenty Civil Defence Emergency Management Group (CDEMG)

· Honourable Mark Mitchell, Minister for Emergency Management and Recovery, had recently visited the Civil Defence Emergency Management office in Tauranga.

Key Points - Staff:

· Central Government’s Emergency Management reforms and their implications on Council’s strategy and policies would be brought to the Strategy & Policy Committee for discussion.

Resolved

That the Regional Council:

1 Receives the report, Updated Financial Delegation to the Group Controller

2 Approve an amendment to Council’s Delegations Manual to reflect that where there is an immediate risk to life during an emergency under the Civil Defence Emergency Management Act the Group Controller has unlimited financial delegation noting that this delegation may not be sub-delegated.

Crosby/Macmillan

CARRIED

6.8	*WITHDRAWN Approval to release Draft Regional Policy Statement Change 7 (Freshwater) and Draft Regional Natural Resources Plan Change 19 (Freshwater)*

6.9

10.15AM Adoption of the Annual Report and Annual Report Summary for the year ended 30 June 2024

Presented by: Kumaren Perumal – Chief Financial Officer, AJ Prinsloo – Finance Manager, supported by Leon Pieterse – Audit Director and Warren Goslett Audit Manager, Audit New Zealand.

Key Points:

· The report provided an outline of Council’s financial and non-financial performance

· Outlined the capital spends and carry forwards from the previous financial year to this and to the next

· Noted the capital expenditure cap of $30M, which was a cost control measure, rather than a project delivery measure

· Any carry forwards were a reflection of the need to transfer capital budget items from one year to the next where deliverability had been impacted for a number of reasons

· As Council was still relatively early in the new practice of collecting its own rates, trends with regards to unpaid/overdue rates were yet to be established and analysed. Furthermore, some rate arrears were ‘inherited’ from the local authorities and would take time to fully clear

· Council was well within the acceptable investment/borrowing ceiling, but reporting also acknowledged the risk associated with such borrowing.

Key Points – Leon Pieterse, Audit New Zealand:

· A verbal audit opinion had been provided on the Annual Report, and an unqualified written audit opinion would be provided

· Audit NZ’s role was to review the applied methodology and transparency of the benchmark reporting, not whether Council had successfully achieved its benchmarks

· Audit NZ was provided with updated guidelines for its reviews each year, with the audit of the benchmark reporting being included for the first time to provide increased transparency and disclosure

· Guidelines for the Local Water Done Well programme and affordability for local councils would be issued by the Office of the Auditor General.

Key Points - Members:

· Queried if there should be a reprogramme of capital works in the Annual Plan, rather than the current practise of carry forwards from year to year

· Concerned regarding the lack of financial/non-financial benchmark achievements in some areas.

Resolved

That the Regional Council:

1 Receives the report, Adoption of the Annual Report and Annual Report Summary for the year ended 30 June 2024.

2 Receives the audit opinion from Audit New Zealand.

3 Adopts the Bay of Plenty Regional Council Annual Report and Consolidated Financial Statements for the year ended 30 June 2024.

4 Adopts the Bay of Plenty Regional Council Annual Report Summary for the year ended 30 June 2024.

5 Authorises the Chief Executive to make minor numerical, editorial or presentation amendments prior to the final publication.

6 Approves the capital expenditure budget carry forward of $17.6 million: $9.1 million from the financial year 2023/24 to 2024/25, and $8.5 million to 2025/26.

7 Approves the deferral of capital expenditure of $2.7 million from 2024/25 to 2025/26.

8 Notes total remissions for $0.8 million given during 2023/24 which equates to 0.92% of the general and targeted rates revenue.

Crosby/Scott

CARRIED

6.10

Appointment of Members to Various Groups

Presented by: Steve Groom – Governance Manager.

Key Points:

· The vacancies were a result of Cr Thompson stepping away from three appointments

· Council resolution was not required for appointments to Mount Maunganui Air Quality Working Party as it was not a formal committee

· As there was more than one nominee for the alternate position on the SmartGrowth Leadership Group, a majority support for Cr Macmillan for this appointment was noted (refer resolution 2)

Key Points - Members:

· The rationale behind the appointments was that the alternate would step up into the vacant primary role, then further appointments would be made as appropriate.

Resolved

That the Regional Council:

1 Receives the report, Appointment of Members to Various Groups;

2 Appoints Cr Scott (Primary) and Cr Macmillan (Alternate) as one of three Bay of Plenty Regional Council Members on the SmartGrowth Leadership Group;

3 Appoints Cr von Dadelszen (Primary) and Cr Crosby (Alternate) as one of four Bay of Plenty Regional Council Members on the Tauranga Moana Advisory Group;

4 Notes the appointment of Cr Stuart Crosby and Cr Ron Scott as Bay of Plenty Regional Council Members (totalling four) on the Mount Maunganui Air Quality Working Party.

Nees/Leeder

CARRIED

10.40 am – The meeting adjourned.

11.02 am – The meeting reconvened and Cr Thurston entered the meeting.

6.11

11.00AM Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2024

Presentation - Quayside End of Financial Year - Council 23 October 2024: Objective ID A4807905

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

Quayside Holdings Ltd (QHL) Board: Mark Wynne - Chair, Keiran Horne – Independent Director and Fraser Whineray – Independent Director, and QHL staff: Lyndon Settle – Chief Executive and Davide Caloni – General Manager Finance.

Key Points:

· Recognised that that Council consideration of Parameters for the Port of Tauranga share divestment process was currently underway

· QHL had undertaken a critical review of its share portfolio and was becoming a more active investor in the current market

· Was exiting venture capital funds as they were not considered the right fit as well as being disproportionally staff/resource demanding

· Was in the process of establishing an investment committee to ensure due process was undertaken prior to any proposal being presented to the QHL Board for consideration

· Provided an outline of the 2024 Audit process, which had resulted in an unmodified Audit Report

· Was exploring options for altered audit practices for its subsidiaries which would generate significant savings

· Audit approach was pragmatic, robust and well supported by QHL staff

· The changes in audit reporting on the Port of Tauranga was being discussed at staff level to ensure the reporting was a clear and ‘reader friendly’ as possible, without impacting on its accuracy

· Following a period of loss, the increase in Port of Tauranga share prices was encouraging

· Recognised the financial and resourcing challenges associated with Rangiuru Business Park, however the development was progressing well with the interchange scheduled to open in 2025

· Recognised the discussion pertaining to managed retreat of Mount Industry to Rangiuru Business Park

· Noted that the Distribution Policy development had been placed on hold due to current workload and priorities. It would be reignited within the near future

· Although actively exploring regionally based investments, they would also need to include a commercial return profile

· Recognised there were differing views within the community regarding the role and purpose of QHL, resulting in targeted communication about the commercial return aspect and drive of the organisation

· Recognised the potential impact climate change could have on QHL’s portfolio and ability to deliver returns to Council, in particular in the context of the large Port of Tauranga share portfolio

· Regional benefit vs commercial return and a ‘fit for purpose’ approach was recognised.

Key Points - Members:

· Recognised that changes in audit reporting for QHL would impact on Council’s report

· Had worked closely with the Port of Tauranga regarding climate change impact reporting, and the Port’s approach to future climate change management

· Recognised the high trust/high confidence model of the relationship between Council and QHL.

Resolved

That the Regional Council:

1 Receives the report, Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2024.

Scott/von Dadelszen

CARRIED

6.12

Local Government Funding Agency Limited (LGFA) - Annual Report for the year ended 30 June 2024

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

Key Points:

· Recognised that the scale of LGFA lending towards the Local Water Done Well entities would have an indirect impact on Council with regards to the levels of leverage within LGFA borrowings.

Resolved

That the Regional Council:

2 Receives the report, Local Government Funding Agency Limited - Annual Report for the year ended 30 June 2024.

von Dadelszen/Crosby

CARRIED

6.13

Regional Software Holdings Limited (RSHL) Annual Report for the year ended 30 June 2024

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

Key Points - Staff:

· RSHL focussed on greater benefits through shared services across the Regional Council sector, and a was a relatively operational system

· The region’s Chief Executives were working closely together in identifying opportunities for savings and efficiencies in shared services

· Opportunities for improving disability accessibility within shared services was being explored by BOPLASS

· Benchmarking was being worked through at a staff level.

Resolved

That the Regional Council:

1 Receives the report, Regional Software Holdings Limited Annual Report for the year ended 30 June 2024.

Thompson/Macmillan

CARRIED

6.14

Bay of Plenty Local Authority Shared Services (BOPLASS) Annual Report for the year ended 30 June 2024

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

Key Points - Members:

· Queried if the current KPIs were appropriate or whether they should be further expanded beyond their procurement focussed nature

· Queried if there would be merit in the Bay of Plenty region’s Risk & Assurance Committee Chairs to meet with staff to discuss risk management at a subregional level.

Key Points - Staff:

· Recognised the significant savings generated by BOPLASS in the procurement space

· Regional Council’s savings compared to its investment in BOPLASS was considerable, in particular in insurance procurement.

Resolved

That the Regional Council:

1 Receives the report, BOPLASS Annual Report for the year ended 30 June 2024.

Leeder/White

CARRIED

6.15

Financial Performance Report Months 1-2 2024/25

Presented by: Kumaren Perumal – Chief Financial Officer and AJ Prinsloo – Finance Manager.

Key Points:

· Noted that this was a new reporting mechanism, based on requests by Councillors, and complimented the digital Insight Financial/Non-Financial Performance Reporting tool

· The revenue budget allocation was pro-rata, meaning the budget line looked excessive this early in the financial year

· The Insight Reporting tool was scheduled to go live in November 2024, and Councillors would be notified accordingly.

Items for Staff Follow Up:

· The Financial Implications section of the report template to be included in the next round of reviews

· Further commentary/details, beyond what was reported here and in the Insight Tool regarding over/underspend to be provided to Councillors.

Resolved

That the Regional Council:

1 Receives the report, Financial Performance Report Months 1-2 2024/25.

Crosby/von Dadelszen

CARRIED

7. 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
7.1	Public Excluded Regional Council Minutes - 12 September 2024	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.

Leeder/von Dadelszen

CARRIED

8. Closing Karakia

A karakia was provided by Cr Te Taru White.

12.32 pm – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Andy Bruere, Lakes Operations Manager
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	To inform council of the progress and process to repair the Õhau diversion wall, and present on water quality impacts.

Õhau diversion wall repair progress and water quality impact

Executive Summary

In 2014, council staff identified corrosion issues with the Õhau diversion wall. Ongoing inspections are underway to assess the rate of corrosion and potential repair solutions. Advice to date indicates the rate of corrosion is well above the design corrosion rate, but the wall is still structurally sound. Staff will present on the progress and process to investigate repair options now underway.

Corrosion holes in the wall are allowing significant leakage to Lake Rotoiti. Water quality modelling by the University of Waikato has been undertaken to understand the past and current impact of the wall under various scenarios, as the quality of Lake Rotorua is improved. Prof Deniz Ozkundakci will present on this work.

Recommendations

That the Regional Council:

1 Receives the report, Õhau diversion wall repair progress and water quality impact.

1. Introduction

The Õhau diversion wall (wall) was constructed in 2007/08, a 1,275m long steel wall designed to divert lower quality water flowing from Lake Rotorua direct to the Kaituna River. The wall is supported by structural king piles, which are driven down to bedrock at 3.2-meter spacings and serve as the main load-bearing elements. The gap is infilled with sheet piles, shallow driven, that act as a physical barrier to water movement, refer to Figure 1 below. There are also horizontal steel beams (walers) spanning between the king piles above and below the water level. The king pile steel is thicker due to the reasons above.

Figure 1 Plan View Õhau Wall

Water quality monitoring and modelling undertaken by the University of Waikato indicates the wall has been successful. However, in 2014 it was discovered that the rate of corrosion on the steel wall components was far higher than the design expectations. By 2020 corrosion holes in the sheet piles wall were observed, all within about 1m of the water surface. These holes are now at such a size they are compromising the performance of the wall in diverting the Ōhau Channel flow. Prof Ozkundakci will present on this effect.

Since 2014 staff have engaged a number of different consultants to advise on the possible management options for repairing the corrosion compromised wall. The key points of that advice have been:

· Development of structural management option in 2016 (walers), with long term management of holes using a polymeric (plastic) screen in the future,

· Undertake detailed 3 yearly underwater investigations and analysis to assess the rate and extent of the corrosion on both king piles and sheetpiles,

· Undertake installation of additional waler beams to support the wall king piles to ensure structural integrity until 2028, (completed in 2021),

· Retrospective corrosion protection such as patching, coating or electrical protection with sacrificial anodes or impressed current devices were not practical and advised against, and

· The most recent advice as a result of the 2023 underwater inspection shows:

o the structural strengthening is working as desired,

o the corrosion rate is higher in the areas closer to the lake surface and the holes have developed all within the top 1m of the surface,

o The wall is still structurally sound with estimated intervention on or before 2038:

o Polymeric screen not preferred as long term plan; instead plastic panelling to be considered as corrosion limited to top 1m.

Now that corrosion holes have developed in all panels of the sheet piles staff have embarked on a programme to evaluate options for wall repair. The details of this investigation are outlined below.

As part of the Õhau wall resource consent Waikato University has undertaken a review of the water quality monitoring to determine the impact of the wall on water quality. In addition they have provided modelled results for a range of scenarios around the possible performance of the diversion wall. The key questions being:

· What impact has the wall had on water quality of Rotoiti and the Kaituna River?

· What is the impact of the wall with a range of different inputs from Lake Rotorua? (ie, current water quality, water quality when Rotorua reaches TLI 4.2, and a higher TLI of 3.8 units).

· What is the impact of the current holes in the wall?

The modelling work is an important part of understanding the eventual natural connections between Lake Rotorua and Rotoiti where the wall will be removed. Staff needed to understand the water quality situation where say: Lake Rotorua water (with a target TLI of 4.2 units) would discharge via the Ōhau Channel to Lake Rotoiti (with a target TLI of 3.5 units).

1.1 Legislative Framework

The Õhau diversion wall is authorised by resource consent until 2052. Under the conditions of the consent council is bound to undertake the necessary structural monitoring and keep the wall in sound structural condition.

There may be additional consent requirements for the wall repair. These will not be understood until such time as we have reviewed the repair option(s) and will need to be considered in the recommendations brought to council in mid-2025.

1.2 Alignment with Strategic Framework

A Healthy Environment	Goal 3 We use evidence-based decision making – all work is informed by the best available science and mātauranga Māori.
Future ready communities	Goal 7 We seek to provide nature-based solutions as appropriate to enhance the environment and protect our communities.
How we work	2. We seek integrated solutions and we collaborate

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

¨ Cultural

¨ Social

¨ Economic

2. Repair options Process and progress

The need to consider wall repair options has now become urgent, as the size and number of corrosion holes in the sheetpile wall are allowing significant leakage of water from the Õhau Channel into Lake Rotoiti. The 2023 routine inspection confirmed that all the holes are within 1m of the lake surface up to water level.

Some trials have already been undertaken to assess the possibility of simply closing these holes using plastic (polyethylene) panels. Two phases of this trial have taken place and have been very informative in assessing the practicality of this method.

The key outcomes from this work are:

· Precision moulded sheets work well to attach to the wall shape,

· A range of fixing methods were trialled and bolting right through the wall seems the most durable,

· Further testing using a “sandwiching” method should be tested to improve on durability of this option.

· Some high level costings have been produced.

More recently, consultants WSP have been engaged with a specific brief to revisit the structural management plan and will provide high level costing in April 2025 for repair options. The outcome of this work will provide council with information to make an informed decision on selecting from options, on capital budgeting now or into the future, along with a risk analysis matrix on the options. Staff can then continue to develop the preferred option, tender, and undertake the necessary repairs. WSP are looking at a range of options, such as:

· Medium term patch repair, such as described above, but also considering a patch option that structurally supports the king piles,

· Long term repairs:

o Sheet pile replacement,

o King pile refurbishment and sheet pile replacement, and

o Entire wall replacement.

Alongside the work reviewing the medium term and long-term repair options, staff have asked Prof Ozkundakci to present to council a more detailed review of the water quality analysis and modelling outcomes. This science review work was undertaken as a part of the resource consent 7-Year Õhau wall review, but also provides a valuable insight into the performance of the Õhau wall and the water quality interactions between lakes Rotorua and Rotoiti with and without the wall.

At the time the wall was planned it was expected that it could take more than 50 years for Lake Rotorua to meet its TLI objective of 4.2. This was based on a number of science investigations and includes the GNS evaluation that the average age of the groundwater within the Rotorua catchment is about 60 years. However, at the same time the wall was constructed (2007), BOPRC commenced the alum dosing of Lake Rotorua, which has accelerated the improvement of Lake Rotorua. As a result of the alum dosing programme, Lake Rotorua has been within 0.2 units of the 4.2 TLI target every year, and for 5 of those years it has achieved the target TLI. This is ahead of expectations without the alum dosing.

As a consequence of the improved water quality flowing from Lake Rotorua it is important for decisions around the operation of the Õhau wall to be informed of the water quality scenarios and outcomes modelled during the Õhau wall 7-Year Review. Prof Ozkundakci will present a summary of the key outcomes from the analytical work and modelling undertaken.

3. Considerations

3.1 Risks and Mitigations

A key consideration in the process to review the repair options for the Õhau wall is that the current wall has not performed as expected with respect to durability and life expectancy. It appears that some assumptions made during the design process have underestimated the corrosion risk in this lake environment. The mechanism of corrosion being Microbial Induced Corrosion was poorly understood at the time, BOPRC is now in a position where the wall is corroding at about 10 times the design expectations, and this is the reason for holes forming in the wall and this repair assessment is now required.

While there is expectation from the local community that we should be undertaking a rapid and long-term repair to the wall staff are cognisant that council will require appropriate advice on:

· The durability of any potential repair,

· The cost of alternatives,

· The water quality benefit, now and in the future as the need for the diversion of lake Rotorua water (and the wall) reduces.

3.2 Climate Change

The implications of this report are climate change neutral at this stage.

3.3 Implications for Māori

The current review of options does not have any impact of Māori cultural values, as staff are not yet making recommendations on repair options in this report. However, council will need to understand the impact on iwi through the process of approving the repair option(s) which will be brought to council in the new year.

3.4 Community Engagement

Staff have endeavoured to engage with the local community to keep them informed of the progress and listen to their views. This has been undertaken by attending local Rotoiti Community Association meetings, engaging a Community Technical Panel and participating in a LWQS workshop to the community outlining the issues around the wall. This engagement is ongoing, and the next public attendance will be 4 January 2025 at the Rotoiti Community Association AGM.

3.5 Financial Implications

This report does not make recommendations to council for action. It outlines the process and progress on assessing options and it is expected that staff will be returning to council in early 2025 with an assessment of options.

Potential costs of the repair of the wall can be further discussed in 2025. Currently council has $1.6m budgeted for repair of the wall in the current Long Term Plan.

4. Next Steps

Staff have held a recent workshop with the Community Technical Panel. The next step is to receive and review the medium-term options in December 2024, and in April 2025 we will receive the review report on the long-term options.

The next report to council will outline medium- and long-term options. This will include more detailed option recommendations and project timing along with cost estimates for recommended option(s).

It is possible that sequenced options may be recommended. For example, initiating a medium-term option to resolve the wall leakage rapidly, with a recommendation to undertake a long-term option at a later stage.



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Authoriser:	Doug Leeder

Chairperson's Report

Executive Summary

Since the preparation of the previous Chairperson’s Report for the Council meeting on 23 October 2024, I have attended and participated in a number of meetings and engagements as Chairperson on behalf of Bay of Plenty Regional Council (BOPRC).

This report sets out those meetings and engagements, outside of Council, Committee and Sub-Committee meetings, and highlights key matters of interest that I wish to bring to Councillors’ attention.

Recommendations

That the Regional Council:

1 Receives the report, Chairperson's Report.

1. Purpose

The purpose of this report is to update Council on meetings and engagements, outside of Council, Committee and Sub-Committee meetings, I have attended and participated in as Chairperson. Also, to highlight key matters that will be of interest to Councillors.

The following section summarises these meetings and engagements. I will provide further detail at the meeting in response to any questions you may have.

2. Meetings and Engagements

Date	Meeting / Engagement	Comment
15 October	Local Government New Zealand Regional Sector meeting – Videoconference	Attended.
18 October	Meeting with Peter and Pamela Silson – Tauranga	Discussed an Environmental Programme Agreement. Councillors Nees and Shirley also in attendance.
24 October	SmartGrowth meeting with Minister Hon Simeon Brown – Videoconference	Councillors Nees and MacDonald also in attendance.
24 October	Quayside and Port of Tauranga Ltd (POTL) dinner – Mount Maunganui	Attended.
25 October	POTL Board meeting and annual meeting of Shareholders – Mount Maunganui	Attended.
4 November	Tompkins Wake public lecture, “Precipice, with Hon Christopher Finlayson KC” - Tauranga	Drawing on his vast experience as a former Attorney-General and Minister for the Treaty of Waitangi Negotiations, Christopher delved into the concept of 'Precipice'—those pivotal moments where crucial decisions shape the future. He addressed race relations and the evolving Treaty partnership in New Zealand, alongside key turning points in law, governance, and global affairs where choices made at crucial junctures can define our collective future.
7 November	Te Uru Kahika Leaders’ Plenary and networking dinner - Wellington	This year’s plenary was themed - ‘Titiro Whakamua/Looking to the future’. I participated in a Q&A session in my capacity as Regional Sector Chair, along with James Palmer, CEO Ministry for the Environment and Paul James, CEO Department of Internal Affairs. The focus of the Q&A session was on the National Operating Landscape and how the Regional Sector fits in.
8 November	Regional Deals weekly meeting catch-up – Videoconference	Attended.
11 November	Meeting with Alison Dewes and Alistair Bisley – Whakatane	Discussed the possibility of a Land and Water Forum in the Bay of Plenty.
11 November	Te Uru Kahika Roadshow - Videoconference	A presentation to Elected Members by Te Uru Kahika RCEO Group Convenor Michael McCartney and Executive Policy Advisor Tom Bowen. They were supported by Fiona McTavish.
15 November	Regional Deals weekly meeting catch-up – Videoconference	Attended.
20 November	Meeting with John and Sue La Roche and Chris Laird - Tauranga	Discussed existing OSET treatment systems at Rotoiti.
21 November	Local Government New Zealand (LGNZ) Combined Sector meeting and dinner - Wellington	Focussed on efficiency, performance and rates capping, and lifting the lid on local government reforms. Discussed practical ways to deliver more with less. Guest speakers included Regional Development Minister Hon Shane Jones, DIA’s Chief Executive Paul James, Auckland Mayor Wayne Brown, representatives from New South Wales (where rates capping has been implemented), and Labour’s Finance and Infrastructure spokesperson, Hon Barbara Edmonds.
22 November	Regional Deals weekly meeting catch-up – Videoconference	Attended.
	LGNZ Regional Sector meeting - Wellington	An engaging session on resource management reform phase three and stormwater performance standards. Emergency Management Minister, Hon Mark Mitchell and the Parliamentary Commissioner for the Environment, Hon Simon Upton also joined the meeting.
	Meeting on the cruise ship industry – Wellington	Attended by Councils with ports that accommodate cruise ships. Discussed engaging with the cruise industry and reversing the projected decline of cruise ships frequenting our ports.
25 November	White Ribbon Day Service, Monica Cantwell Memorial – Mount Maunganui	I was invited to speak at a morning service to mark White Ribbon Day on the summit of Mauao at the Monica Cantwell memorial.
25 November	Meeting with Kawerau District Council – Kawerau	Discussed the Stoneham Park Project and had a site visit to upper Valley Road water detention area and Stoneham Park. Councillor Campbell was also in attendance.
26 November	Presentation to Elected Members from Vangelis Vitalis, Deputy Secretary, Trade and Economic Group and Chief Negotiator, NZ Foreign Affairs and Trade, on “The Future of Trade Policy” – Tauranga	Attended.
29 November	UNISA Mayors and Chairs meeting - Auckland	Discussed the NZTA Waka Kotahi Port Connections Study; UNISA Infrastructure Plan development and National Infrastructure Plan; Biodiversity threats and responses; Regional deals; and a Government Policy Programme update.



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	AJ Prinsloo, Finance Manager; Kumaren Perumal, Chief Financial Officer; Laura Boucher, Communications Team Leader and Olive McVicker, Corporate Performance Team Lead
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To confirm Council will not formally consult on the 2025/26 Draft Annual Plan and seek direction on informing the community on the status of the Annual Plan 2025/26.

2025/26 Annual Plan

Executive Summary

Council is asked to confirm the direction given at recent Annual Plan workshops that consultation on the 2025/26 Draft Annual Plan (draft Annual Plan) is not necessary as there are no matters that reach the thresholds for significance or materiality or would benefit from consultation.

The Long Term Plan 2024-2034 (LTP) identified a general rates increase of 8.2% in year 2. The costs in the draft Annual Plan have been reviewed which has identified savings. As a result the achievable financial envelope for general rates increase is 3% (0% real) and the total targeted rates increase is 1% which includes setting a Public Transport targeted rates increase of 5%. The work programme is consistent with year two of the LTP, and the budgeted savings are within the thresholds identified in the Council’s Significance and Engagement Policy.

Council direction is sought on informing the community about the draft Annual Plan and preliminary rating impacts. A communications plan has been developed that will provide opportunities for Council to communicate the draft Annual Plan to the community.

Recommendations

That the Regional Council:

1 Approves for the purposes of setting budget estimates that the draft Annual Plan 2025/26 should include the identified savings and the additional expenditure as set out in section 2.1 of this report.

2 Confirms a preliminary financial envelope for the draft Annual Plan 2025/26, including:

(a) A 3% general rates increase.

(b) A 1% Total Targeted Rates increase (including a 5% public transport targeted rates increase).

3 Confirms that consultation is not required on the 2025/26 Draft Annual Plan.

4 Directs that public and targeted communication be undertaken to inform communities about the impacts of the 2025/26 Draft Annual Plan.

1. Introduction

The draft Annual Plan is based on year two of Council’s LTP. The draft work programme is consistent with the LTP and costs have been updated to reflect the movement in inflation and interest rates.

At the Annual Plan workshop on 13 November 2024, Council indicated that there were no significant items that would trigger the need for consultation in accordance with the Significance and Engagement Policy.

1.1 Legislative Framework

The Local Government Act section 76AA requires Council to adopt a Significance and Engagement Policy. The purpose of this is to identify the degree of significance attached to decisions and the extent of public engagement required.

The implications of the draft Annual Plan do not exceed the thresholds identified in the Significance and Engagement Policy. As a result, section 95(2A) of the Local Government Act 2002 applies, which means Council is not required to formally consult on the draft Annual Plan.

1.2 Alignment with Strategic Framework

A Healthy Environment
Future ready communities
Connected and enabled communities
Sustainable development
The Pursuit of Excellence
How we work	1. We look to add value regionally

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

Low - Positive

¨ Economic

By deciding not to consult on the draft Annual Plan, Council is acting within the thresholds of the Significance and Engagement Policy and the LTP. In taking a communication approach that informs the public generally but can also target those most affected, Council can act appropriately.

2. Annual Plan Engagement

2.1 Financial overview

2.1.1 Background

The development of the draft Annual Plan updates the second year of the LTP, which sets out Council's strategic vision and financial commitments.

The LTP originally forecast an 8.2% increase in general rates and a 6.3% increase in targeted rates for Year 2, driven by inflationary pressures, service demands, and infrastructure investment. However, recognising the need to address affordability concerns from communities and evolving economic conditions, Council directed a comprehensive review of the budget to identify cost savings that would reduce rate increases while ensuring the continuation of essential services and alignment with strategic priorities.

Over three workshops, staff presented options for savings, cost deferrals, operational efficiencies, and the use of reserves to smooth rate impacts. This approach aimed to align the draft Annual Plan with Council's principles of effective and efficient use to resources to achieve better value for money.

During these workshops, staff identified over $5 million in savings to mitigate rate increases.

This enabled Council to achieve substantial cost and rates reductions compared to forecast rates increases for Year 2 in the LTP, lowering the general rates increase to 3% and the total targeted rates increase to 1% (including public transport targeted rates increase of 5%).

2.1.2 Summary of Savings and Additional Expenditure

Staff have identified over $5 million in savings to mitigate rate increases signalled for Year 2 in the LTP. These savings are shown in the table below,

Activity	Savings amount $‘000	General Rate $’000	Targeted Rate $’000
Climate Change	20	20
Coastal Catchments	50	50
Rotorua Catchments	50	34	16
Maritime Operations	20	20
Flood Protection & Control	300	60	240
Rivers and Drainage Schemes	290	58	232
Freshwater	235	235
Science	75	75
Te Amorangi	126	126
Public Transport	1,569	556	1,013
Community Engagement	67	67
Corporate	627	597	30
Rotorua Catchments – Ōhau Channel	800	536	264
Council Efficiency and Effectiveness savings	777	764	13
TOTAL	5,006	3,198	1,808

Additional expenditure is recommended for two activities as shown below:

Summary of additional expenditure

Activity	Amount $‘000	General Rate $’000
Biodiversity	280	280
Governance	150	150
TOTAL	430	430

2.1.3 Financial Envelope – Limit on Rate Increases

General Rate Increase: 3%

Budget adjustments have been identified which will reduce the General Rates for 2025/26 by $3.2 million. They are made up of cost savings, deferrals, additional revenue, and operational efficiencies. Setting a target of 3% (0% real) General Rates increase is achievable through these measures, together with using the Regional Fund Reserve to smooth rates impacts.

Public Transport Targeted Rates Increase: 5%

In previous workshops, savings totalling $1 million for public transport have been identified that will reduce the total public transport targeted rate requirement for 2025/26. When combined with the 2024/25 forecast budget underspends and use of reserves, a 5% increase in total Public Transport Targeted Rates is achievable.

Regional Fund Reserve forecast

The current forecast closing balance for the Regional Fund Reserve for 2024/25 is $4.5 million. Based on current forecasting assumptions, it is anticipated that sufficient reserves will be available to smooth the rating impact as required. The forecast is subject to the in-year financial performance monitoring process and items being considered over the remainder of the 2024/25 financial year that may impact the final Regional Fund Reserve balance.

Ongoing Work and other cost pressures

Staff will continue to work towards these targets and incorporate decisions made at the December Council Meeting around the proposed budget for the draft Annual Plan. As part of this process, budgets are being refined to inform subsequent versions of the draft Annual Plan, which will be presented to Council at future workshops for review and guidance.

2.1.4 Outstanding Points for Consideration

Several key items remain under discussion and will require decisions at upcoming Council meetings:

· Freshwater Program Savings: Adjustments to the freshwater program will depend on the outcome of the reset and associated policy decisions.

· Ōhau Diversion Wall Costs: Potential additional expenditure for repair/maintenance/upgrade yet to be fully scoped.

· Land Acquisition. Business case pending.

· Fare Revenue and Public Transport Budgets: Future decisions around fare structures and additional public transport efficiencies.

· Inflation Assumptions: The current budget retains the LTP inflation rate of 2% for 2025/26, subject to review following updated BERL indicators in May 2025.

Once more information is known, if any of these items warrant consultation or Council wishes to consult, the consultation process could be undertaken separately from the Annual Plan process.

Council is able to make in-year budget adjustments, however, rates must be set based on the adopted 2025/26 Annual Plan so any rating requirement would only take effect in the following year (2026/27 Annual Plan).

2.1.5 Next Steps

The draft Annual Plan reflects Council’s strategic direction to reduce rates increases while maintaining essential services. Staff will integrate Council’s direction and present a refined draft Annual Plan in February 2025.

2.2 Consultation vs Engagement

Consultation requirements for the draft Annual Plan were considered at the Council workshop held on 13 November 2024. The thresholds for consultation were not triggered as:

· The work programme is consistent with year two of the LTP

· Budget variances were not significant or material in terms of the Significance and Engagement Policy

· Council has not identified any topics that would benefit from consultation.

A Communications Plan has been developed and will be implemented subject to Council direction received on informing the community on the draft Annual Plan.

This Communication Plan includes a variety of tools including:

· Social media posts

· General campaign – newsletters, Around the Rohe (monthly Council news update in local papers)

· Information resources at events – information available to elected members and staff at events to enable conversations about the draft Annual Plan

· Direct outreach to most affected ratepayers.

3. Considerations

3.1 Risks and Mitigations

There are no direct risk implications arising from this report.

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

There are no implications for Māori arising from this report.

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.

3.5 Financial Implications

Please refer to the financial overview section.

4. Next Steps

Following this meeting the communications approach will be implemented.



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Alicia Burningham, Corporate Planner and Olive McVicker, Corporate Performance Team Lead
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Adoption the Draft 2025/26 Fees and Charges policy

2025/26 - Fees & Charges review

Executive Summary

The Fees and Charges Policy has been reviewed as part of the 2025/26 Annual Plan process. At the workshop held on 13 November 2024 Council considered proposed updates to the policy and supported the changes proposed. Changes included are:

· Increase to resource consent deposits

· Recovery of the actual and reasonable cost of work on Fast-Track Approval projects

· Minor adjustments to some compliance inspection frequencies

· Applying 10% for the increased cost of service delivery to some fixed fees, which were omitted in the 2024/25 review

· Applying a general increase to schedules in line with CPI

A draft Fees and Charges Policy for 2025 has been prepared (refer Attachment 1), incorporating changes proposed, for approval by Council in order develop a Statement of Proposal for consultation in March/April 2025.

A proposed increase to Harbour dues has not been included as the projected shipping volumes are expected to generate sufficient revenue.

Recommendations

That the Regional Council:

1 Receives the report, 2025/26 - Fees & Charges review.

2 Approves the draft Fees and Charges Policy 2025/26, to enable preparation of a Statement of Proposal and Draft Fees and Charges Policy 2025/26 for consultation in 2025.

1. Introduction

The Fees and Charges (F&C) Policy outlines the fees and charges associated with a range of services provided by the Bay of Plenty Regional Council. These fees and charges are used to recover the costs of undertaking certain activities. This is to ensure the individuals and organisations using and benefiting the service meet their share of the cost. This principle is directly provided for through Section 36(1)(c) of the Resource Management Act 1991, and Council’s Revenue and Financing Policy, alongside other legislation specific to the activities.

This policy is reviewed regularly to ensure the charges reflect the cost of the service.

1.1 Legislative Framework

The Resource Management Act 1991 (RMA) and Building Act 2004 form the foundation of the majority of our work. The proposed Fees and Charges Policy sets out our charges under these Acts and includes changes to charges under our Bylaws and general cost recoverable work.

1.2 Alignment with Strategic Framework

A Healthy Environment	Goal 1 The region’s diverse range of physical environments and natural ecosystems are in a healthy state.
Future ready communities
Connected and enabled communities
Sustainable development
The Pursuit of Excellence
How we work

The Fees and Charges Policy contributes indirectly to A Healthy Environment, by setting fees that partly pay for the cost of activities that deliver these outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

¨ Social

¨ Economic

The Fees and Charges Policy contributes indirectly to Environmental well-being by setting fees that partly pay for the cost of activities that deliver this well-being.

2. 2025/26 Fees and Charges proposed changes

A draft Fees and Charges Policy for 2025 (Attachment 1) has been prepared for approval incorporating the proposed changes for the following activities or charges.

2.1 Consents processing charges

2.1.1 Increases in resource consent deposits

The deposit fees currently set out in the draft Fees and Charges Policy for a resource consent application have increased. The deposit fees were last adjusted in 2018/19.

Table 1 - Consents Deposits proposed changes

Deposit Fees (inc GST)	Current 2024/25	Proposed 2025/26
Tier 1	$775	$1000
Tier 2	$1770	$2500
Tier 3	$2700	$4000
Fixed Fee Bore and Pump Test Discharges	$485	$550

2.1.2 Including Fast-track Approval projects.

A fee for recovering the actual and reasonable cost of work on Fast-track Approval projects will be included in the draft Fees and Charges Policy 2025/26. These approvals are expected to be passed into law before the end of 2024.

Proposed wording is below:

2.1.4 Fast track approval projects

We charge the actual and reasonable costs for processing a Fast-track Approval in accordance with Schedule A, the same as any consent application.

2.2 Minor adjustments to some compliance inspection frequencies

The inspection frequencies have been amended for two compliance categories i.e. the physical site visit component. The proposed changes affect Schedule 2A Variable (also known as Actual and Reasonable) compliance categories. See Table 2 below.

Table 2 – Proposed Compliance inspection frequencies

Compliance Category	Code	Current Frequency	Proposed Frequency 2025/26
Consumptive Water use with 5 or more Abstraction Points with Manual or Telemetry Water Use Record Submission, or any Consumptive Water Use with additional use management	CWMX	As required	5 yearly
Hydro Dams	Hydro	1 yearly	3-5 yearly

2.3 Increased cost of service delivery to fixed fees omitted in 2024/25 review

During the 2024/25 review, a 10% increase was applied to cover the increased cost of service delivery. This increase was reflected in the fees listed in the schedules, but several fixed fees in the policy were not adjusted. This increase will be applied to those fixed fees (listed below in Table 3) for 2025/26.

Table 3 – Proposed increases to fixed fees

Table	Type	Current policy (excluding GST)	Proposed 2025/26 (excluding GST)
Table 6: Administration charge	Standard charge	$150.00	$165.00
Table 6: Administration charge	Multiple consents: additional charge per consent holder where separate invoicing and correspondence is required	$130.00	$145.00
Table 7: Compliance monitoring charges	'Fixed administration fee relating to late or non-submission of records and monitoring reports'	$265.00	$290.00
Table 12: Enforcement charges	Issue of an abatement notice	$250.00	$275.00

2.4 Application of CPI increase

To address the increased cost of service delivery, such as staff and overhead costs, an increase has been applied to the remaining charges in the schedules in line with the CPI adjustment used for the 2025/26 Annual Plan. The draft policy includes a CPI increase of 2.3%.

Note that the final policy adopted in June 2025 will use the March 2025 CPI value that is due to be released in April 2025.

2.5 Unchanged Port Charges (Harbour Dues)

The Harbour Dues will remain unchanged, as projected shipping volumes that have been received from Port of Tauranga are expected to generate sufficient revenue to cover the cost recovery share of the Maritime Activity, as specified in the Revenue and Financing Policy.

3. Considerations

3.1 Risks and Mitigations

The current cost of living pressure means that any increase in fees or rates could be met with criticism. The Revenue and Financing Policy specifies how each activity is to be funded:

· by fees and charges used to recover service delivery costs that provide private benefit and

· rates used to fund services that provide wider public benefit.

However, the increased Fees and Charges are the result of maintaining the same proportion of costs between individuals (through fees and charges) and the wider community (through rates).

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

Implications for Māori are the same as the general community.

3.4 Community Engagement

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

Charges set under the Resource Management Act s36 may only be set after using the Special Consultative Procedure set out in the Local Government Act (2002) s83.

3.5 Financial Implications

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

4. Next Steps

A full Statement of Proposal (SOP), accompanied by a Draft Fees and Charges Policy 2025/26, will be prepared and presented to Council in February 2025 for adoption for consultation in March/April 2025.

Attachments

Attachment 1 - Draft Fees and Charges Policy 2025/26 ⇩



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Kumaren Perumal, Chief Financial Officer and Gillian Payne, Principal Advisor
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To seek approval for the 2025/26 Statement of Expectations for Quayside Holdings Ltd and Toi Moana Trust.

Quayside Holdings Limited and Toi Moana Trust - Statement of Expectations 2025/26

Executive Summary

The Local Government Act 2002 section 64 requires every Council Controlled organisation to prepare and adopt a Statement of Intent (SOI).

This report seeks approval for a Statement of Expectations (SOE) to be sent to Quayside Holdings Limited (Quayside).

Following the receipt of the SOE, Quayside will prepare a draft SOI 2025/26 for Council to consider, in early 2025.

Recommendations

That the Regional Council:

1 Receives the report, Quayside Holdings Limited and Toi Moana Trust - Statement of Expectations 2025/26.

2 Approves the Quayside Holdings Limited Statement of Expectations, subject to minor editorial adjustments that may be agreed between the Chief Executive and the Chair, and notes that this will be sent to Quayside Holdings Limited to support the preparation of their draft Statement of Intent 2025/26.

1. Introduction

Each year Council issues a SOE to Quayside as part of the process leading up to their preparation of a SOI for the forthcoming year.

The SOI, once developed, will state publicly the activities and objectives of Quayside for the year. The process of developing an SOI gives Council (as shareholder) the ability to influence the organisation and provides a basis for accountability of Quayside directors for performance.

1.1 Legislative Framework

Local Government Act 2002 section 64 requires every Council Controlled organisation to prepare and adopt a SOI, before the start of the financial year to which it applies.

1.2 Alignment with Strategic Framework

A Healthy Environment
Future ready communities
Connected and enabled communities
Sustainable development
The Pursuit of Excellence
How we work	1. We look to add value regionally

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

High - Positive

2. Approval of SOE

2.1 Draft SOE for consideration

The draft SOE in Attachment 1 has been prepared against a background of ongoing discussions between Quayside and Council at governance and staff levels, covering both strategic and operational matters.

In June 2024, following consultation on Long Term Plan 2024-2034, Council decided to enable a managed sell-down of the Port of Tauranga Limited (PoTL) shares, to a minimum shareholding of 28%. Before a sale can go ahead Council needs to consider and approve the details of the process that will be followed and approve the conditions of any sale of shares. Council also indicated this would involve further consideration of any LTP submissions that commented on the potential process, determination of any imperatives for strategic control and engagement with Tangata Whenua.

The content of the draft SOE has been informed by a series of workshops held during 2024 to:

· develop Council’s Annual Plan 2025/26, including the expected dividend from Quayside, and

· consider the process for any sale of PoTL shares and parameters within which Quayside should implement Council’s June 2024 decision to enable partial divestment.

These workshops are ongoing and final direction has not yet been identified. Some of the matters addressed in this SOE depend on the outcome of Council’s future workshops, particularly those relating to the divestment parameters.

Given the ongoing nature of the divestment parameters discussions, the draft SOE in Attachment 1 sets an expectation that Quayside will incorporate the final divestment parameters in its draft SOI or final SOI. The draft SOE does not specify the scope or settings of the parameters.

Council will have an opportunity to provide further direction to Quayside in March-April, through the SOI development process (Local Government Act Schedule 8) illustrated below. Council has the power to extend the dates below by up to one month, by written notice.

In addition, after an SOI is adopted, Council can require the Quayside Board to make a change to the SOI, after Council has given notice and consulted with the Quayside Board on the proposed changes.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter.

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

Council ‘s decision in June 2024 to enable the sale of some of the Port of Tauranga shares noted that it still needed to consider and approve the details of the process that will be followed and approve the conditions of any sale of shares.

Council indicated this work would involve further consideration of any LTP submissions that commented on the potential process, determination of any imperatives for strategic control and engagement with Tangata Whenua. This engagement is currently underway and will inform future decisions by Council on the divestment parameters and process.

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.

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.

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

The draft SOE includes the expectations of a dividend from Quayside for 2025/26 of at least $48 million, and $3.5 million distribution from the Toi Moana Trust, which is in line with the assumptions in the 2024-2034 LTP for that year.

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.

Following the receipt of the SOE, Quayside will prepare a draft SOI 2025/26 for Council to consider, by 1 March 2025.

Attachments

Attachment 1 - Draft Statement of Expectations for Quayside Holdings Limited and Toi Moana Trust for 2025/26 ⇩



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Kumaren Perumal, Chief Financial Officer; Gillian Payne, Principal Advisor and Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to consider a report and recommendation from Quayside Holdings Limited’s review of directors’ remuneration and make decisions on the remuneration pool and its distribution.

Quayside Holdings Limited - Directors Remuneration Review

Executive Summary

In November 2024 the board of Quayside Holdings Limited (Quayside) considered a report from Strategic Pay, which followed a review of remuneration of Quayside directors. The Quayside board has recommended to Council to approve a total remuneration pool of $520,000 made up of:

· Chair $140,000

· Independent directors (three) $70,000 each

· Councillor directors (two) $70,000 each

· Supplement for Committee Chairs (three) $10,000 each

· Council CEO director (one) $0

This represents an increase of $5,000 (7.7%) for each of the five directors paid by Quayside, and an increase of $10,000 (7.7%) for the Quayside Chair, noting that the previous fees were set in December 2022.

When Council last approved the remuneration pool in 2022, at $475,000, there was one fewer Committee Chair positions, so for comparative purposes, the base directors’ remuneration pool would now be $485,000.

Recommendations

That the Regional Council:

1 Receives the report, Quayside Holdings Limited - Directors Remuneration Review .

2 Approves the aggregate remuneration pool for Quayside Holdings Limited’s directors for 2024/25 at $520,000 (plus GST if any), which includes remuneration paid by Quayside Holdings Limited’s subsidiaries – Quayside Securities Limited and Quayside Properties Limited.

3 Approves increasing Quayside Holdings Limited’s directors’ fees for 2024/25, including remuneration paid by Quayside Holdings Limited’s subsidiaries – Quayside Securities Limited and Quayside Properties Limited, to:

(a) Chair $140,000

(b) Independent directors (three) $70,000 each

(c) Councillor directors (two) $70,000 each

(d) Supplement for Committee Chairs (three) $10,000 each

(e) Council CEO director (one) $0.

4 Delegates authority to the Chief Executive to sign the Quayside Holdings Limited shareholder resolutions and any ancillary documentation required to give effect to such resolutions.

1. Introduction

In November 2024 the board of Quayside considered a report from Strategic Pay, which followed a review of remuneration of Quayside directors. Quayside has consequently made recommendations to Council for an increase to the remuneration pool (Attachment 1).

Previous Council decisions

The previous review of directors’ remuneration in 2022 recommended that directors fees be increased in two steps over two financial years, from a pool of $380,029 in 2021/22, to $475,000 in 2022/23 and to $510,000 in 2023/24.

On 14 December 2022, Council considered the recommendation from Quayside directors to increase fees in 2022/23 to $475,000. It was noted that prior to the 2022 review, Quayside directors’ base fees had last been reviewed in 2007, and the size, complexity and value of Quayside had increased substantially since then. Council approved the remuneration pool of $475,000 for 2022/23.

Before the Council meeting, but after the agenda has been circulated, Quayside withdrew its request for Council to consider the second increase in the remuneration pool, from $475,000 to $510,000 for 2023/24 year.

No decision on directors’ remuneration for 2023/24 was subsequently made by Council.

1.1 Legislative Framework

The Local Government Act 2002 (LGA) requires local authorities to adopt a policy that sets out an objective and transparent process for appointing and remunerating directors. Accordingly, Council’s Appointment and Remuneration Policy for Directors of Council Organisations (Attachment 3) states that for each financial year, Council will agree with each wholly owned CCO the pool of funding available for the remuneration of directors. It also sets out the principles Council will apply and the matters it will take into account in making its decisions (refer Attachment 3, page 11, sections 2.11 to 2.15).

The Companies Act 1993 provides that directors fees can be set by the board of a company, unless that company’s constitution provides otherwise.

1.2 Alignment with Strategic Framework

A Healthy Environment
Future ready communities
Connected and enabled communities
Sustainable development
The Pursuit of Excellence
How we work	1. We look to add value regionally

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Low - Positive

Quayside invests primarily for financial return which increases regional wealth and reduces the rates required by Council. Quayside also holds some investments for wider regional benefits.

2. Quayside Directors’ Remuneration

2.1 Quayside Board remuneration 2021-2024

Table 1 below shows the aggregate pools of remuneration for 2021/22 and 2022/23 as agreed with Council.

Table 1

Position	2021/22 $	2022/23 $
Chair	93,171	130,000
Chair of Audit and Risk Committee	69,210	75,000
Chair of People, Culture and Safety Committee	58,108	75,000
Three directors [per director]	159,720 [53,240]	195,000 [65,000]
Council Chief Executive	0	0
Total directors’ remuneration pool agreed	380,209	475,000

During the 2024/25 year, changes to the Board’s Committee structure resulted in additional remuneration, over and above the amount set in Table 1. The establishment of an Investment Committee resulted in additional $10,000 p.a. for the Investment Committee Chair.

This increased the total remuneration pool for directors from $475,000 in 2022/23 to $485,000 for 2023/24.

Table 2 below is an extract from the Quayside Annual Report showing actual remuneration paid to each director, during the year ended 30 June 2024. The total remuneration paid to directors was $503,000 – refer Table 2 below.

There is a difference of $18,000 between the actual amount paid to directors in 2023/24 ($503,000) and the remuneration pool for directors ($485,000). This was a result of short overlaps between the appointment of three new directors and the resignation of three directors during the 2023/24 year, as shown in Table 2.

Table 2 – 2023/24 financial year

2.2 Review process undertaken by Quayside Board

Quayside have completed benchmarking of director fees. This process included receiving advice from Strategic Pay (Attachment 2), review by Quayside’s People, Culture and Safety Committee

The Strategic Pay report recommended that Quayside Holdings:

· Set the base annual fees for Directors in the range of $70,000 to $75,000 per annum

· Maintain the Chair fee at 2:1 ratio to the base annual Director fee (a range of $140,000 to $150,000 per annum)

· Maintain the additional $10,000 per annum for the Committee Chairs (Audit & Risk, People, Culture and Safety, and the Investment Committees).

The Quayside board considered the advice and approved a recommendation to Council (Attachment 1) that implements the lower range of the advice.

2.3 Recommendation from Quayside to Council

On 26 November the Quayside Board resolved to recommend to Council an increase to the remuneration pool that included fees for three independent committee members. However, a technical amendment to the resolution was required, to exclude the independent committee members as they do not meet the definition of director.

The amended resolution will be put to the Quayside Board meeting on 4 December 2024 (refer Attachment 1) and Council will be updated at its 11 December 2024 meeting, accordingly.

In summary, the amended resolution to be put to the QHL Board recommends to Council a remuneration pool of $520,000, for seven positions, made up of:

o Chair – two times the base annual directors fee, being $140,000

o Independent directors (three) $70,000 each

o Councillor directors (two) $70,000 each

o Supplement for Committee Chairs (three) $10,000 each

o Council CEO director (one) $0.

Table 3 below shows the difference between the 2023/24 (base, annualised) remuneration pool and the recommended remuneration pool for directors and independent committee members for 2024/25.

Table 3 – Recommended remuneration for 2024/25 (from 1 December 2024)

Position	2023/24 base annualised $	2024/25 Recommended $	Increase over base annualised 2023/24 $
Chair	130,000	140,000	10,000
Supplement for Chair of People, Culture and Safety Committee	10,000	10,000
Supplement for Chair of Audit and Risk Committee	10,000	10,000
Supplement for Chair of Investment Committee	10,000	10,000
Five directors [per director]	325,000 [65,000]	350,000 [70,000]	25,000 [5,000]
Council Chief Executive	0	0
Total for directors	485,000	520,000	35,000

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

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 nature. The Appointment and Remuneration Policy for Directors of Council Organisations (Attachment 2), recognises the duty of Council to consider whether Te Ao Māori skills are a requirement for candidates for board appointments.

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.

3.5 Financial Implications

There are no material unbudgeted financial implications to Council as costs fall to Quayside.

4. Next Steps

Staff will advise Quayside of the outcome of Council’s decisions.

Attachments

Attachment 1 - Quayside Directors Remuneraton Review Recommendation to Council - Updated ⇩

Attachment 2 - Strategic Pay Directors Fees Report November 2024 ⇩

Attachment 3 - Appointment and Remuneration Policy for Directors of Council Organisations ⇩



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Niki Carling, Team Leader, Transport Planning
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	This paper is to support decision making on the proposed fares system, as recommended by staff.

Regional Fares Review

Executive Summary

Fares are one of the key tools in encouraging use of public transport services. The fare system of a public transport network plays a significant role in determining its affordability, equity and usability.

The current Bay of Plenty public transport fares system has evolved over time into a system that:

· Is difficult to understand;

· Does not provide consistency or balance across the region;

· Generates low levels of revenue.

Critically, the current system does not meet central government’s directive for Public Transport Authorities (PTAs) to increase revenue generation from private share. For the Bay of Plenty, reviewing fares is a key part of the mix towards increasing revenue generation.

The timing of the regional fares review has been set to ensure that the parameters of the new fare system will be ready for National Ticketing Solution (NTS) configuration by the end of 2024 to feed into the NTS implementation process for the region, which will happen between January and August 2025.

Further to guidance received from workshops with both Regional Council and the Public Transport Committee (PTC), initial fares modelling work was undertaken by staff and presented to the PTC at a workshop on 1 November 2024. Direction given on the modelling was used to refine a fare system which was presented at the PTC meeting on 19 November 2024. At that meeting, the PTC recommended that Regional Council adopt the fare system presented by staff - fare structure, adult base fare, concessions and products - at its 11 December 2024 meeting.

Recommendations

That the Regional Council:

1 Receives the report, Regional Fares Review;

2 Adopts the fare system recommended by the Public Transport Committee at the Public Transport Committee Meeting on 19 November 2024:

a) Fare structure	Zonal (as depicted in section 2.2)
b) Adult base fare	$3.70, with prepaid card
c) Concessions	· Infant (free) · Community Service Card (50%, national concession) · Supergold, as per national concession conditions (free travel between 9.00am and 3.00pm and after 6.30pm from Monday to Friday, and all day on weekends and public holidays) · Accessibility and +1 (free) · Child/young person (50%)
d) Time of travel discount	50% discount for off-peak travel (between 9.00am and 2.30pm and after 6.00pm)
e) Fare products	Revenue based caps: · Day cap (free travel after 3 trips p/day) · Week cap (free travel after 7 trips p/week) Family pass

1. Introduction

Fares policy and pricing is one of the key tools in encouraging use of public transport services. The fare system of a public transport network plays a significant role in determining its affordability, equity and usability.

The current Bay of Plenty public transport fares system has evolved over time into a system that:

· Is difficult to understand;

· Does not provide consistency or balance across the region; and

· Generates low levels of revenue.

Undertaking a fares review is a primary action in the Regional Public Transport Plan 2022-2032 (RPTP).

The Government Policy Statement for land transport 2024 requires Public Transport Authorities (PTAs) to increase public transport fare-box recovery and third-party revenue. Staff are currently working with the New Zealand Transport Agency – Waka Kotahi (NZTA) to agree private share targets for the Bay of Plenty. eviewing fares is a key part of the mix towards increasing revenue generation for the region.

Work on the fares review has included workshops with both the Regional Council and the Public Transport Committee, at which elected members provided the following guidance:

Meeting/Workshop	Component	Direction provided
Regional Council workshop - 5 Sept	Fares principles	· Principles ratings: - Simple – High - Customer-focused – High - Equitable – Medium - Incentivised – High - Transport system efficiency – Medium - Social equity – Medium - Financial sustainability – Medium-High
	Potential for charging children/ youth	· Consider charging children/youth
	Fare cap for Total Mobility	· Staff proposed separate piece of work to review TM
	Level of community engagement	· Community engagement to be at ‘information’ end of community engagement spectrum
PTC workshop 1 24 September	Concessions
	‘Time of travel’ fares	· Consider fares based on ‘time of travel’ e.g. peak/ off-peak, weekend fares
	Capped fares	· Consider fare capping
PTC workshop 2 1 November	Zones	· Agree zonal fare structure but reconfigure Tauranga urban zone to include Te Puna · More work required on zonal fare increments
	Concessions	· Consider how a discount might be provided for families with multiple children
	Fare products	· Investigate feasibility of family passes under the National Ticketing Solution (NTS)
	On-Demand	· Consider increasing fares for the On-Demand trial service (this work has been progressed outside the regional fares review)
	Cashless service	· Should not happen in the early stages of the NTS rollout but should be considered in the medium-term

The direction given by elected members has been used to undertake modelling of potential fare systems for the region.

At the Public Transport Committee meeting on 19 November 2024, elected members recommended that Regional Council adopt the fare system presented by staff - fare structure, adult base fare, concessions and products - at its 11 December 2024 meeting. These components are discussed in section 2.0.

1.1 Legislative Framework

The Regional Public Transport Plan 2022-2032 (RPTP) adopted in 2022 is the key statutory document for public transport planning and investment in the region, required under the Land Transport Management Act 2003 (LTMA).

‘An equitable fare and pricing system that attracts new customers and rewards frequent use’ is an objective of the RPTP. The primary RPTP action to achieve this objective is: ‘Undertake a comprehensive region-wide fare review to give effect to the RPTP fares and pricing policies.’

1.2 Alignment with Strategic Framework

Future ready communities	Goal 6 We will empower communities to make sustainable choices and transition towards a low emissions economy.
Connected and enabled communities	Goal 8 Communities are connected through an effective transport system, land use and urban design that improves wellbeing, livability and environmental outcomes.

The performance of the region’s public transport services is continually monitored and reported through KPIs in the Arotake quarterly reports, found on the Council’s website, here.

The new NZTA Development Guidelines for Regional Public Transport Plans 2024 state that ‘PTAs must include a fares and pricing policy in their regional public transport plan that:

· Specifies the method for setting and reviewing fares, with fare pricing reviews to occur annually and fare structure reviews at least every six years.’

This is reflected in RPTP Policy 7.6: Reviewing fares: Conduct regular fare reviews which take into account inflation and changes in operating costs, while ensuring consistency with the fare principles in Policy 7.1.

Fares in the Bay of Plenty have not been reviewed regularly over the last few years. However, staff will give consideration to how fare prices can be reviewed annually to feed into the Annual Planning process and how future fare structure reviews will fit in with Long Term Planning processes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

þ Social

Low - Negative

¨ Economic

The two well-beings most affected by fare changes that may result from this fares review work are environmental wellbeing and social wellbeing.

Environmental: The use of public transport instead of individual cars is generally considered to benefit the environment, primarily through reduced emissions. Whilst the potential introduction of higher fares may result in a degree of patronage reduction, it is anticipated that there will also be increased patronage through the introduction of fare products that encourage more frequent use of public transport as well as organic growth resulting from population increase.

Social: Staff acknowledge that fare pricing increases, including the potential removal of free fares for children/young people, will likely have a negative social effect, especially for those in lower socio-economic households. However, concessions will still be available to those with access to a Community Services Card, or a SuperGold card and those approved for an accessibility concession.

2. Fares Modelling

Fares modelling was carried out using the direction given by elected members, and a set of informed assumptions.

Modelling was undertaken for three base adult fare scenarios - $3.50, $3.70 and $4.00 - to produce projected revenue and patronage levels. Public transport point elasticities of demand were used from best practice domestic and international modelling and generally adopted principles of demand forecasting.

2.1 Assumptions

The assumptions made in the fares modelling work were:

Component	Assumption
Base adult fare	$3.70, with prepaid card - consistent for the whole region
Standard concession fare	50% off base adult fare
Concessions	Remove Senior concession Remove Tertiary concession[1] Use national conditions for Supergold concession, ie. free travel between 9.00am and 3.00pm and after 6.30pm from Monday to Friday, and all day on weekends and public holidays Retain Community Service Card national concession – 50% Retain Accessibility (and +1) concession – travel for free Retain free travel for infants (under 5 years)
Child/Young person	Introduce fares for children/young people (5-18 years) at 50% of adult fare
Time of travel	50% discount for off-peak travel
Capping[2]	Revenue based caps: - Day cap (free travel after 3 trips p/day) - Week cap (free travel after 7 trips p/week)

2.2 Fare structure base model

Fare structures establish rules and methods used to calculate the fare charged for a journey. Fare structures are generally either classified as:

· Flat fares

· Distance-based fares, or

· Zone-based fares.

A simple multi-criteria analysis of these options against the fares principles ratings provided by the Regional Council at the workshop on 5 September 2024 resulted in staff discounting further consideration of a distance-based fare structure. Flat and zone-based fare structures were used as the base for the fares modelling work, with the zonal structure being as follows:

2.3 Fares modelling results

Analysis shows that in the Bay of Plenty, around 95% of patronage relates to travel within a single ‘urban zone’. The remaining ~5% of travel occurs in the outer zones and its impact on revenue is relatively low, providing a 0.1% increase in farebox recovery ratio (FRR). However, there are additional benefits to the use of a zonal structure in creating a fare system that is easy to understand across the region and can be readily adapted to include future intraregional routes.

The results of the fare modelling are presented in the table below, with the various initiatives shown as increments against the current state. For each initiative, an impact range is given, which is governed by ‘high’ and ‘low’ elasticity bounds. The results show an FRR of between 17.3% and 19.3%.

2.3.1 Results in the context of private share revenue targets

In terms of context for these modelling results, all PTAs have been directed to actively engage with NZTA to ‘agree and set interim private share targets for 2024/25 and 2025/26 and indicative targets for 2026/27’. In the Bay of Plenty, this private share is currently mainly made up of farebox revenue.

The early indication from NZTA was that they would use the actual private share results achieved by PTAs in 2018/19 as the interim target. For the Bay of Plenty, this was 24%. On this basis, the FRR results in section 2.3 show significant inroads towards achieving this indicative target.

However, it should be noted that NZTA have changed the formula to calculate private share revenue from the previous formula used to calculate the FRR. NZTA have proposed a draft interim target (2024/25) of 12% (cf. a 2023/24 actual of 7.2%). Once NZTA have completed their engagement with PTAs and confirmed the formula and targets, the updated approach will be adopted for future reporting.

The private share targets proposed by NZTA are draft only and will be discussed with the Agency over the coming weeks.

2.1 Impact of revised fares

The current adult urban fare with a Beecard is $2.72 for Tauranga and Whakatāne, increasing by 36% to $3.70 with the revised fare pricing. In Rotorua, the current adult urban fare with a Beecard has for some time been lower than the rest of the region, at $2.24. Introducing a consistent base adult fare across the region will bring Rotorua urban fares back in line with those in Tauranga and Whakatāne but will mean a 65% increase in the adult fare. The effect of the increased adult fare will be in part offset by the continued provision of Community Service Card, Supergold and Accessibility (and +1) concession fares and the introduction of an off-peak travel discount and fae capping.

Below are some example current and future fares for journeys within the region.

3. Future Fares and Pricing Reviews

In line with the NZTA requirements for fare structure and pricing reviews (identified in section 1.2), staff will be proposing to Regional Council at a future Council meeting that fare levels are reviewed annually, to feed into Council future planning processes.

In light of the work underway with NZTA to determine targets for private share revenue staged over the next two years, the revenue impact of fare levels will over this period need close monitoring and possible further adjustment to help meet targets. Regional Council could ask the PTC to consider future fare changes and make recommendations back to Council.

The timing of future fare structure reviews will be subject to ongoing monitoring, consideration of alignment with RPTP, and central government direction, but will be at least every six years as required by NZTA.

4. Considerations

4.1 Risks and Mitigations

Noted below are the biggest risks to the project:

Risk	Risk Level	Mitigating Actions
Timing – risk of not meeting deadlines for NTS configuration	High	· Regular touchpoints with Governance · Support recommendations to Governance with comprehensive information and analysis to support efficient decision making. · Create and maintain momentum in process · Prioritise internal resources
Community – risk that the proposed options are not positively received or understood	High	· Develop a comprehensive stakeholder Communications and Engagement Plan · Clearly define the challenge that Council is facing (i.e. do nothing is not an option)
Funding - risk of not securing national funding if preferred option does not align with national policy direction	High	· Develop options that align with national direction · Keep NZTA engaged and informed throughout the review process

4.2 Climate Change

The use of public transport instead of individual cars is inherently supportive of climate change mitigation, through reduced emissions. While the potential introduction of higher fare levels may result in a degree of patronage reduction and potential shift to car use, it is anticipated that there will also be increased patronage through the introduction of fare products that encourage more frequent use of public transport, as well as organic growth resulting from population increase, which will support climate change mitigation goals.

4.3 Implications for Māori

Potential fare pricing increases, including removing free fares for children/young people, will likely impact those in lower socio-economic households and those with larger families. However, concessions will still be available to those with access to a Community Services Card, or a SuperGold card and those approved for an accessibility concession.

Some of the region’s rural communities have a disproportionately higher population of Māori who might potentially be impacted by a zonal system when travelling longer distances to access urban centres. However, refined modelling to include zonal fare increments that tail off in the outer zones has identified some potential fare reductions for those travelling longer distances, especially in the eastern Bay of Plenty.

4.4 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 focus of community engagement on the fares review has primarily been to inform the community about the work underway. In addition to newspaper advertising and social media, a Participate page was created to inform and seek feedback on concessions and fare products e.g. capping and time of travel discounts. Staff have also undertaken ‘light touch’, face-to-face engagement by attending existing events e.g. markets and have engaged with bus users at the Durham Street and Arawa Street (Rotorua) interchanges.

Data Collected

· Participate page – 266 responses

· Face-to-face – 116 responses

· Facebook - 167 comments

Geographic spread

Child/Youth Fares

Off-Peak Discounts

Fare Capping

Concessions

*IDK – I don’t know

4.5 Financial Implications

The implementation of the fares review project, including the costs associated with communicating potential changes to the community, is expected to align with existing planned program budget allocations.

Preliminary modelling suggests the fares review could generate approximately $2 million annually in additional revenue from passenger transport fees and charges.

This additional revenue has not been factored into Draft Annual Plan 2025/26 Budget Version 2 and will be reassessed in future budget iterations once approved.

Based on the timelines and information provided, early indications suggest the anticipated local share rating impact for the Draft Annual Plan 2025/26 may result in a 2% reduction in total Public Transport Targeted Rates compared to LTP Year 1.

5. Next Steps

This work culminates with the parameters of the new fare system ready for National Ticketing Solution (NTS) configuration by the end of the 2024 calendar year. These will then feed into the NTS implementation process for the region.

In the context of the NTS implementation for the Bay of Plenty, the next steps are:

The timing of the introduction of revised fares and concessions (except school services) is recommended to happen in August 2025, at the time of the NTS ‘go live’. This date could be brought forward, but staff would like to emphasise that a shortened timeframe will significantly affect the time available to engage with/educate the community on the new fares and thus potentially affect community acceptance.



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Oliver Haycock, Director, Public Transport
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To seek adoption of the Tauranga Public Transport Joint Committee Terms of Reference

Tauranga Public Transport Joint Committee - Updated Terms of Reference

Executive Summary

This report seeks Council adoption of updated Terms of Reference (ToR) for the Tauranga Public Transport Joint Committee.

Originally created in February 2022, this joint committee is currently comprised of voting representatives from the Bay of Plenty Regional Council (BoPRC) and TCC, with non-voting representation from New Zealand Transport Agency (NZTA). The committee focuses on projects being delivered within the Tauranga City area, which have a public transport component.

The proposed updates to the ToR see the focus elevated to cover the whole of the transport system (not just public transport), the geographic scope broadened to the whole Western Bay of Plenty sub-region, and the inclusion of Western Bay District Council as a voting member.

To reflect the above changes, it is also proposed to update the name of this committee to the “Tauranga and Western Bay of Plenty Transport Joint Committee” (referred to as the “Joint Committee”).

The updated ToR are provided in Attachment 1.

Recommendations

That the Regional Council:

1. Receives the report “Tauranga Public Transport Joint Committee – Updated Terms of Reference”.

2. Adopts the updated Terms of Reference for the Tauranga and Western Bay of Plenty Transport Joint Committee (previously named the Tauranga Public Transport Joint Committee) in Attachment 1 and delegates the role and powers to, and sets the quorum for, the Joint Committee as specified therein.

3. Notes that the Chairperson and Deputy Chairperson remain unchanged, along with the arrangements for administrative support, which will continue to be rotated between BOPRC and TCC on an annual basis, currently sitting with TCC for 2024.

1. Introduction

Members of the Joint Committee have identified changes to the ToR that will support the Joint Committee with delivering more effective governance for the subregional transport system.

The Urban Form and Transport Initiative (UFTI) and Tauranga Transport System Plan (TSP) together provide the strategy and programme for transport investment across the Western Bay of Plenty sub-region.

1.1 Legislative Framework

Under the Land Transport Management Act 2003, BoPRC is responsible for producing the Regional Land Transport Plan (RPTP) and Regional Public Transport Plan (RPTP).

Clause 30(1)(b) Schedule 7 of the Local Government Act 2002 provides the power to appoint committees, subcommittees, other subordinate decision-making bodies, and joint committees.

1.2 Alignment with Strategic Framework

Connected and enabled communities	Goal 8 Communities are connected through an effective transport system, land use and urban design that improves wellbeing, livability and environmental outcomes.
How we work	2. We seek integrated solutions and we collaborate

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Medium - Positive

þ Cultural

Low - Positive

þ Social

High - Positive

þ Economic

High - Positive

The proposed changes to the Joint Committee will continue to provide BoPRC with an opportunity to further promote desired outcomes for public transport and sustainable development.

2. Proposal to Update the Joint Committee Terms of Reference

2.1 Background

In December 2021, TCC Commissioners and representatives of BoPRC discussed forming a Joint Committee - so that projects being delivered by both organisations, which have a public transport component, could be jointly discussed with representatives of both organisations involved. Regional Council resolved to establish a joint committee on 17 February 2022.

The Joint Committee has met with a bi-monthly frequency since this point.

2.2 The Case for Change

Members of the Joint Committee first raised a desire to explore making changes to the scope of the committee in early-2024. The reasons for exploring change include:

(i) It is challenging to consider public transport in isolation, and it would be advantageous to consider the whole transport system.

(ii) The integration of the TSP with the Joint Committee is unclear, and the benefits of closer alignment should be considered.

(iii) The geographic mismatch between the focus of the Joint Committee (Tauranga City area only) and the strategic plans and programme (Smartgrowth / UFTI / TSP), which all have a subregional focus.

2.2.1 Process Followed

A paper was presented to the Joint Committee outlining proposed changes to the ToR on 4 June 2024, where members provided feedback.

Following this meeting, TCC elections were held. Subsequently, workshops were held with Joint Committee members, as well as representatives from Western Bay of Plenty District Council (WBOPDC) on 11 September and 18 October 2024, to reaffirm the aims and objectives for the committee, and how these could be supported through changes to the ToR.

Updated ToR were presented to the Joint Committee on 7 November 2024. These were endorsed and referred the matter to each participating Council for adoption. TCC are due to deliberate on the updated ToR at their meeting on 9 December 2024.

At the time of writing, the date on which WBOPDC will consider adopting the ToR is not known.

2.3 Updated Terms of Reference

The updated ToR endorsed by the Joint Committee are provided in Attachment 1.

Key changes include (but are not limited to):

· A change in focus to cover the whole of the transport system (not just public transport)

· A broadened geographic scope to the whole Western Bay of Plenty sub-region, to align better with sub-regional plans and programmes, such as Smartgrowth, UFTI and TSP.

· Removal of references to specific projects in the ToR, with the updated focus on preparing and reviewing an integrated transport work programme.

· The inclusion of one representative from Western Bay of Plenty District Council as a voting member.

· The inclusion of a representative from the TSP Executive Steering Group as a non-voting member.

The following aspects have not changed:

· The Joint Committee has no financial delegation – any matters with financial impacts must be referred to the relevant councils.

· It does not have the power to vary or renew the Regional Land Transport Plan or Regional Public Transport Plan.

· It has the power to make recommend to respective Councils, the Public Transport Committee and the Regional Transport Committee.

· The frequency of meetings is bi-monthly. The Chairperson, Deputy Chairperson, and administrative support rotate between BOPRC and TCC on an annual basis, with administration currently sitting with TCC for the 2024 calendar year.

· For the remainder of 2024, the Chairperson of the committee is TCC Councillor Rick Curach, and Deputy Chairperson is BOPRC Councillor Andrew von Dadelszen.

· The other Joint Committee members are BOPRC Councillor Paula Thompson and TCC Councillor Glen Crowther. TCC Councillor Rod Taylor is an alternate member.

· Waka Kotahi NZ Transport Agency remain a non-voting member.

3. Considerations

3.1 Risks and Mitigations

The proposed updates to the Joint Committee ToR will continue to support mitigating the risk of decisions being taken by separate organisations in a way that does not promote a “one-system” approach of UFTI and the TSP. This is likely to increase the ability to meet agreed sub-regional outcomes in the most efficient way possible.

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

As with any advisory and decision-making body, it will be essential for implications on Māori to be highlighted and considered with every matter that comes before the Joint Committee.

3.4 Community Engagement

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

3.5 Financial Implications

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

4. Next Steps

If the respective Councils adopt the updated ToR, the Joint Committee will transition to its new scope and membership in 2025.

Attachments

Attachment 1 - Proposed Tauranga and Western Bay of Plenty Transport Joint Committee Terms of Reference ⇩



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Monique Brooks, Legal and Commercial Manager; Brigid McDonald, Legal Counsel and Annabel Taylor, Manager, Special Projects
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	Approve Funding for External Legal Costs

Representative Action Litigation Funding

Executive Summary

On 6 April 2017, a breach of the Rangitāiki River stopbank at College Road in Edgecumbe resulted in widespread flooding of properties and the evacuation of the township. In May 2023, Council was served with two legal claims in relation to the 2017 Edgecumbe flooding event. The plaintiffs in each claim have applied to the High Court to bring a representative action on behalf of others who were impacted by the event. This is the first proceeding of this scale against a local authority.

Based on information available Council currently, considers it is in the best interests of the community to defend these claims. The cost to do so will exceed Council’s insurance limit of $2 million to cover legal and related costs. Council needs to decide whether to make a provision for unbudgeted costs by setting aside a reserve for these additional expenses. Current best estimates indicate that should this matter proceed to full trial external costs may be incurred of approximately $7million.

The Risk & Assurance Committee resolved on 27 November to recommend that funds be set aside to cover any currently unfunded external costs through the Regional Fund Reserve.

Recommendations

That the Regional Council:

1 Receives the report, Representative Action Litigation Funding .

2 Approves that up to $5m of the Regional Fund Reserve is identified as the source of funding for any potentially unfunded class action defence costs.

3 Delegates to the Chief Executive authority to approve expenditure on costs relating to the Representative Class Action Litigation.

4 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) Flood Litigation Work Programme Update (copy of R&A confidential report) under Section 48(1)(a)(i) Section 7 (2)(g) as withholding the information is necessary to maintain legal professional privilege and that this attachment be released to the public on the Chief Executive’s approval.

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

On 6 April 2017, a breach of the Rangitāiki River flood protection assets at College Road in Edgecumbe resulted in widespread flooding of properties and the evacuation of the township.

On 9 February 2023 and 4 April 2023, just prior to the six-year anniversary of the 2017 flood event, two claims were filed against Bay of Plenty Regional Council in the Rotorua High Court in relation to damages caused by the floodwall breach. Both claims have applied to the High Court to bring representative actions on behalf of others who were impacted by the event. A hearing date is yet to be set but it is anticipated that this is likely to be held in the first half of 2025.

This is the first proceeding of this scale against a local authority for a flood event using the representative litigation model. Council is cognisant that these proceedings have the potential to set a precedent for the sector. Based on the information currently available to it, Council intends to defend itself against both proceedings on the basis that is in the long term best interests of the community.

Council holds insurance and some of Council’s defence costs are met under its insurance policy by its insurer through this process. However, insurance cover for costs incurred in Council’s defence (including legal and technical expert costs) are limited to $2 million. Given the size, scale and complexity of the claims and Council’s intention to defend the proceedings, Council will likely exceed this insurance cover limit and will require additional funding to maintain its defence. Current estimates indicate costs to follow the proceedings through to a full trial are likely to be approximately $7million.

A report was provided to the Risk & Assurance Committee on 27 November 2024 providing an update on the current status of the proceeding and requesting the Committee make a recommendation to Council to set aside funds to cover these additional external costs. A copy of the 27 November 2024 report is attached as a Public Excluded item as it contains additional detail on the status of the litigation.

1.1 Legislative Framework

The claims are brought in tort alleging that Council has caused loss to the plaintiffs and is therefore liable to them in the torts of negligence, nuisance and Rylands v Fletcher.

One of the claims alleges breach of statutory duty under the Soil Conservation and Rivers Control Act 1941 (SCRCA).

1.2 Alignment with Strategic Framework

This decision is of a procedural nature and does not specifically align to any Council’s Community Outcomes and Objectives. However ultimately the decision to fund Council’s defence may have an impact on Council’s ability to fund other work that may align with and progress Council’s Community Outcomes and Objectives.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

þ Cultural

þ Social

þ Economic

The decision to reserve funding (or not) to cover Council’s costs may ultimately have an impact on all of the well beings as this will dictate how Council proceeds in defending the claims.

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.

2. Management of Legal Proceedings

Participating in and managing litigation of this scale is a slow process. It has been more than 18 months since the proceedings were filed against Council and the Court is yet to set down a date to hear the representative applications. The decision by the High Court on these applications will have a significant impact on the course of the proceedings. This illustrates the length of time this may be a live matter for Council to manage.

Given the time period it is anticipated that costs to cover Council’s defence will well exceed the $2million amount covered by Council’s insurance policy. It is essential that additional resource is secured to cover these costs to allow Council to have all options available to it when considering the course of action most beneficial for the community, which at this stage includes defending the proceedings to a full trial.

While staff will oversee and monitor costs associated with the litigation it is important to recognise that there may be matters outside Council’s control in relation to costs.

3. Considerations

3.1 Risks and Mitigations

External counsel were engaged at the time of the event and continue to support Council in this matter. Technical experts in a variety of fields have been engaged to provide independent advice to the Court. Management of the legal proceedings through the engagement of external legal counsel and technical experts mitigates Council’s risk by ensuring that Council receives objective advice and recommendations on the appropriate course of action from experts in their relevant fields. This approach also ensures Council’s actions are in line with the ongoing conditions of the insurance policy, which include giving assistance to the insurer to enable it to investigate and defend the claim or determine its liability under the policy.

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. However, management of the litigation links to Council’s wider work programme as Council considers how to best provide (and fund) flood protection for at-risk communities, particularly given the increase in the frequency and severity of significant weather events.

3.3 Implications for Māori

This report is of a procedural nature and the interests of Māori are aligned with those of the community.

3.4 Community Engagement

Engagement with the community is not required as the recommended decision relates to internal budget Council matters only. As these matters are currently before the Court and given the majority of the population of Edgecumbe are potentially captured by the two legal claims, it would be inappropriate for Council to engage with the community more broadly on these issues. Levels of service currently provided to the community will not be impacted by this decision.

3.5 Financial Implications

The overall costs to manage these legal proceedings are unknown, given the early stage of the proceedings. It is further recognised that Council has limited control over external factors that may impact the course of the proceedings.

Despite these unknowns, it is anticipated that given the size, scale and complexity of the litigation (ie. Potentially managing two representative actions), costs are likely to exceed the amount provided for by Council’s insurance policy, being $2 million. Current estimates indicate costs to follow the proceedings through to a full trial are likely to be approximately $7 million.

While Council is not yet required to draw on these funds, to take a cautious approach and act in a financially prudent manner, staff are recommending that Council set aside up to $5m of the Regional Fund Reserve as the source of funding for any potentially unfunded class action defence costs, should these be required.

At the appropriate time Council will have to determine who ultimately pays for these costs. Options will include:

· a general rate across the region,

· a targeted rate for the specified area or group of ratepayers (e.g. those in the Edgecumbe area).

Whatever the final outcome of the proceedings it will ultimately be ratepayers who are required to satisfy costs associated with these proceedings.

4. Next Steps

Staff will continue to work with external legal counsel to manage these claims and will monitor costs and provide regular reports to the Risk & Assurance Committee and full Council as required.

Attachments

Attachment 1 - Flood Litigation Work Programme Update (copy of R&A confidential report) (Public Excluded) ⇩



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Rhianon Lewis, Executive Assistant - General Manager
Report Authoriser:	Reuben Fraser, General Manager, Regulatory Services
Purpose:	To obtain endorsement for the nomination of Jacqui Rolleston-Steed as a Civil Defence Emergency Management Recovery Manager

Bay of Plenty Civil Defence Emergency Management Recovery Manager Nomination

Executive Summary

This report seeks the endorsement by Regional Council for the nomination of Jacqui Rolleston-Steed, Director – Regional Public Service Commission – Bay of Plenty as a Civil Defence Emergency Management Recovery Manager under Section 29 of the Civil Defence Emergency Management Act 2002.

Recommendations

That the Regional Council:

1 Receives the report, Bay of Plenty Civil Defence Emergency Management Recovery Manager Nomination.

2 Endorses the nomination of Jacqui Rolleston-Steed, Director – Regional Public Service Commission – Bay of Plenty as a Civil Defence Emergency Management Recovery Manager under Section 29 of the Civil Defence Emergency Management Act 2002 (CDEM Act)

1. Introduction

The Bay of Plenty Civil Defence Emergency Management Group is required to appoint a suitably qualified and experienced persons to serve in the role of Group Recovery Manager[3].

The Bay of Plenty Civil Defence Emergency Management Group may also appoint suitably qualified and experienced persons to serve in the roles of Local Recovery Manager[4].

Janelle Coradine, Manager Planning, Emergency Management Bay of Plenty serves as the appointed Group Recovery Manage and Julian Reweti, Principal Advisory Recovery, Emergency Management Bay of Plenty is an alternative Group Recovery Manager.

1.1 Legislative Framework

1.1.1 Civil Defence Emergency Management Act 2002 Section 26(2)

A Group must appoint, either by name or by reference to the holder of an office, at least one suitably qualified and experienced person to be the person or persons who are to perform the functions and duties and exercise the powers of the Recovery Manager on the occurrence of a vacancy in the office of Recovery Manager or the absence from duty of the Recovery Manager for any reason, for the duration of the vacancy or absence.

1.1.2 Bay of Plenty Civil Defence Emergency Management Group Policy for the appointment and development of controllers – May 2013

The policy provides that alternate Group Controllers be identified by the Chief Executive of the Bay of Plenty Regional Council in consultation with the Chair of the Coordinating Executive Group.

1.2 Alignment with Strategic Framework

A Healthy Environment
Future ready communities	Goal 5 Communities are aware of and prepared for the impact of natural hazards and climate change.
Connected and enabled communities
Sustainable development	Goal 13 Enable and advocate for climate resilient spatial plans that take a sustainable development approach.
The Pursuit of Excellence
How we work

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

Low - Positive

¨ Economic

2. Nomination

Jacqui Rolleston-Steed is currently Director of the Regional Public Service Commission – Bay of Plenty.

She has 22 years local and regional government experience in various regulatory, strategic, policy and programme management roles.

Jacqui is also currently the Group Manager Alternate - Welfare and has supported various emergency management responses within her designated GECC, as well as deployment to external GECCs and EOCs.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter.

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

There are no implications for Māori as a result of this decision.

3.4 Community Engagement

Engagement with the community is not required as the proposed recommendation relates to internal Council matters only.

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.

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

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.

Following the endorsement by Council for the nomination of Jacqui Rolleston-Steed as a Civil Defence Emergency Management Recovery Manager, the next steps are;

· Seeking the endorsement of the Bay of Plenty Civil Defence Emergency Management Coordinating Executive Group at their meeting on 28 Feb 2025.

· Seeking appointment by the Bay of Plenty Civil Defence Emergency Management Group Joint Committee at their meeting on 28 March 2025.



Report To:	Regional Council
Meeting Date:	11 December 2024
Report Writer:	Mark Townsend, Engineering Manager
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	To update Council on Whakatāne Project Future Proof progress

Whakatane Project Future Proof - Update

Executive Summary

Project Future Proof is a multi-year project which will ensure Whakatāne Central Business District (CBD) flood defences meet their current level of service for a significant flood event through to 2040. The upgrade area is well used and highly valued by the community for recreational purposes and provides a key linkage for walkers, cyclists, river and harbour users.

The project is being implemented in four stages over four years. Stage One has reached practical completion and Stage Two is planned to begin in January 2025. Design and implementation are supported by the Whakatane Futures Steering Group, along with a significant engagement and communications programme.

Recommendations

That the Regional Council:

1 Receives the report, Whakatane Project Future Proof - Update.

1. Introduction

In April 2017, the Whakatāne District experienced widespread damage to homes, property, businesses, the natural environment, and key infrastructure as a result of ex-Tropical Cyclones Debbie and Cook. Analysis of data gathered during that time, together with the growing body of knowledge about changing weather patterns, confirmed the work already underway to upgrade flood defences on the lower Whakatāne River/Ōhinemataroa required to continue to protect the community from flooding in the coming decades.

Project Future Proof is a multi-stage project to upgrade flood defences (stopbanks and floodwalls) along the Whakatāne CBD stretches of the Whakatāne River. The changes underway will provide a 1% Annual Exceedance Probability (AEP) level of protection through to 2040.

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 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

Future ready communities	Goal 5 Communities are aware of and prepared for the impact of natural hazards and climate change.
Connected and enabled communities	Goal 9 We foster strong communities through engagement in decisions that are important to them.
Sustainable development	Goal 14 Regional infrastructure is resilient, efficient and integrated.
How we work	1. We look to add value regionally 2. We seek integrated solutions and we collaborate

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

þ Cultural

Low - Negative

þ Social

Medium - Positive

þ Economic

High - Positive

2. Whakatāne Project Future Proof

2.1 Rationale

Flood protection infrastructure is the first line of defence to reduce the risk of flood events impacting on people, property, and livelihoods.

Whakatāne CBD flood defences are not meeting their current level of service for a significant flood event. These defences need to meet a 1% AEP event through to 2040. To achieve this level of service, the flood defences require upgrading. The location of Whakatane township is particularly impacted by sea level rise.

Known seepage areas are also being addressed through the project works. While controlled seepage is required to relieve pressure within the stopbanks, excessive, uncontrolled seepage can lead to a failure.

Project Future Proof is divided into four stages for delivery purposes. Each stage has its particular design, engagement, and delivery characteristics. Running across the entire project is our partnership approach with Ngati Awa and Whakatāne District Council.

2.1.1 Governance

The Whakatāne Futures Steering Group was established in early 2023. The role of the group is to provide joined-up leadership and support for progressing integrated planning and communication for Kānoa funded projects in the Whakatāne Town Centre. The group includes the Chief Executives of:

· Toi Moana Bay of Plenty Regional Council,

· Whakatāne District Council (WDC),

· Te Rūnanga o Ngati Awa,

· The Regional Principal Advisor of Kānoa (Ministry of Business, Innovation and Employment).

2.1.2 Whakatāne Project Future Proof - Stage One

The aim of Stage One of the project was to upgrade flood defences between the McAlister Street pump station in the east and the Whakatāne I-Site, on the true right bank of the Whakatāne River. The project also addresses known seepage issues associated with the original floodwall.

This project began in February 2024, and involved the replacement of a 200 metre section of flood wall and the raising of 300 metres of stopbank adjacent to Kakahoroa Drive which borders the CBD.

The work comprised the removal and disposal of the original concrete floodwall, and the installation of new 7.5m long sheet piles for the length of the new wall. The exposed section of sheet pile flood wall was then encased in concrete. The stopbank section entailed raising and rebuilding the stopbank with a variation in alignment where needed to accommodate existing community infrastructure and use of the area. Kakahoroa Drive, recreational accessways, carparking, walking and cycleways, sculptures, yacht club rooms and berths, a culturally significant site, park furniture, lighting, gardens, paving, grade changes and a range of inground services infrastructure all needed to be considered as part of the design and delivery of the project.

Design and construction challenges included integrating the new stopbank level with existing infrastructure to ensure safe and accessible access. The area is well used and highly valued by the community for recreational purposes and provides a key linkage for walkers and cyclists to the town centre. As part of the design, realigning and widening pathways along with new steps and ramps have improved this aspect of the area.

Additional seepage control has been installed in the form of a seepage trench. Any water that runs toward the roadside under the floodwall will be collected and pumped back to the river.

Encasing the sheet pile in concrete, and a framed panel design with planting in front have softened the use of hard materials on the floodwall from the roadside. The existing rock facings feature at road level has been continued as part of the aesthetics. On the walkway side, artwork will be applied to the concrete floodwall. This narrative for the design is being developed by our Iwi/hapu partners and its installation is scheduled for early 2025.

The scale of the works meant Kakahoroa Drive needed to be reduced to one lane for a large portion of the physical works. Access to all businesses and main parking areas was maintained and the road was able to reopen for two way traffic in late October, prior to Labour weekend.

The completed floodwall, ranges in height from 0.6m to a maximum height of 1.8m. The higher section is for less than a 50m stretch closest to the I-Site.

The contract works provided for continuous flood protection provision during the physical works and are scheduled for completion this December.

Consents required included earthworks and land use consent from WDC, and Regional Council consent for construction, alteration, maintenance, use and occupation of the flood protection structures within the Coastal Marine Area. In conjunction with our project partners close engagement was needed with key stakeholders such as the Yacht Club and recreational river users.

2.1.3 Whakatāne Project Future Proof - Stage Two

The aim of Stage Two of the project is to upgrade flood defences in an area from the Whakatāne I-Site in the east to the end of the Regional Council Offices in Quay Street on the right bank stopbank of the Whakatāne River. This section of the project integrates with Stage One and also addresses known seepage issues. Due to size and scale Stage Two is divided into two parts. Stage 2a, covers the I-Site to Wairere Stream, with Stage 2b covering the Wairere Stream Bridge and the section to the end of Quay Street. Stage Two construction is expected to take eight to nine months.

This section involves the replacement of the existing floodwall with a new, higher floodwall along the 240m stretch. Parts of the stopbank will be raised to better integrate with the new floodwall height and to provide for a new shared path on the river side. A new pedestrian bridge is planned for the Wairere Stream section.

The project team are working closely with WDC and an independent arborist to ensure as much of the existing vegetation as possible along with access to the river is retained.

The construction of the required upgrades will involve some road restrictions and traffic management will be in place during construction. The intention is to keep the one way street open as much as possible during the construction period. Physical works are planned to begin in January 2025.

Engagement and communications with directly impacted residents and businesses in the area is underway. This aspect of the project was unfortunately behind schedule due to delays with other consultation and the firming up of construction plans and timing. While there had been widespread communication about Project Future Proof over the last year including public drop-in sessions, face to face discussions with business owners only occurred in November.

As with any major infrastructure project there will be impacts for adjoining residents and businesses including noise, vibration, carparking, and traffic management. The project team are working with the business owners to implement initiatives to mitigate as much as possible potential impacts. Discussions are underway with all business owners.

2.1.4 Whakatāne Project Future Proof - Stage Three

The aim of Stage Three of the project is to upgrade flood defences between the end of Quay Street up to and including Mataatua Reserve. Stage Three involves the replacement of the floodwall and will integrate with the Ngati Awa Strand development, and the relocation of the Whakatāne Sport Fishing Club being facilitated by WDC.

Detailed design is currently underway, and the physical works are planned for 2025/26.

2.1.5 Whakatāne Project Future Proof - Stage Four

The aim of Stage Four of the project is to upgrade flood defences from the boat ramp carpark beside Muriwai Drive, towards the Heads. This stage also includes the section alongside Wairere Stream. Concept designs have been produced. Detailed design and engagement are planned for 2025/26, and construction for 2026/27.

3. Considerations

3.1 Risks and Mitigations

The objective of Whakatāne Project Future Proof is to provide the agreed level of flood protection to 2040. The project as detailed provides the optimal opportunity to meet the project objectives. Close engagement is required throughout the project with project partners and the community. Stage One physical works and Stage Two planning have highlighted a number of risks associated with the project.

Whakatāne Future Proof – Flood protection
Risk	Mitigation
Budget – Tenders exceed budget	· Engineering estimate. · Update Quantity Survey estimates. · Provisions of NZS 3910:2013 Conditions of contract for building and civil engineering construction. · Funding support from Central Government as part of the Regional Infrastructure Fund (Stages 2,3 and 4).
Limited capability in the market	· Procurement planning.
Delay in sourcing specialty equipment	· Sheet pile sourced ahead of the physical works programme.
Timing – works delayed (due to consent requirements, access restrictions, weather, ground conditions)	· Consent processes underway. · Preparatory works underway · Property access agreements. · Prepurchase and storage of material to reduce sourcing time lags and increased costs. · Mitigate conditions through construction procurement and methodology. · Construction management. · Steering Group forum.
Reputational Risk	· Communications Plan – website project page, direct landowner engagement, dedicated communications resource. · Reporting to Whakatane Future Steering Group, Monitoring and Operations Committee, Whakatane-Tauranga Rivers Scheme Advisory Group, Kanoa – Regional Economic Development and Investment Unit.

3.2 Climate Change

The matters addressed in this report directly respond to the effects of climate change.

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

3.3 Implications for Māori

Comprehensive engagement with Ngati Awa and relevant Hapu has been a key feature of the project. Feedback and input have been incorporated into the design and construction where able. The implementation of the Steering Group has enabled Ngati Awa input as a strategic partner.

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.

3.5 Financial Implications

Funding for various stages has been provided for in the Long Term Plan 2024-2034. Grant funding was approved for Stage One from the Climate Resilience Fund ($4m) and for Stages 2,3 and 4 from the Regional Infrastructure Fund ($10.69m).

4. Next Steps

Completion of Whakatane Future Proof Stage One - December 2024.

Physical works begin for Whakatane Future Proof Stage Two – January 2025.

Estimated completion of physical works Whakatane Project Future Proof Stage Two – October 2025.

Whakatane Project Future Proof Stage Three works 2025/26.

Whakatane Project Future Proof Stage Four works 2026/27.

[1] Students (including tertiary) receiving a Student Allowance are automatically sent a Community Services Card unless they have a partner who is working.

[2] Fare capping is a pricing concept that limits the total amount of fares each passenger pays for a defined period of travel.