Ordinary Council Meeting Agenda

23 April 2020

COUNCIL MEMBERS REGISTER OF INTERESTS

Name	Responsibility (i.e. Chairperson etc)	Declaration of Interests	Nature of Potential Interest	Member's Proposed Management Plan
Hon Mayor John Carter QSO	Board Member of the Local Government Protection Programme	Board Member of the Local Government Protection Program
Hon Mayor John Carter QSO	Carter Family Trust
Deputy Mayor Ann Court	Waipapa Business Association	Member		Case by case
	Warren Pattinson Limited	Shareholder	Building company. FNDC is a regulator and enforcer	Case by case
	Kerikeri Irrigation	Supplies my water		No
	Top Energy	Supplies my power		No other interest greater than the publics
	District Licensing	N/A	N/A	N/A
	Top Energy Consumer Trust	Trustee	Crossover in regulatory functions, consenting economic development and contracts such as street lighting.	Declare interest and abstain from voting.
	Ann Court Trust	Private	Private	N/A
	Waipapa Rotary	Honorary member	Potential community funding submitter	Declare interest and abstain from voting.
	Properties on Onekura Road, Waipapa	Owner Shareholder	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Property on Daroux Dr, Waipapa	Financial interest	Any proposed FNDC Capital works or policy change which may have a direct impact (positive/adverse)	Declare interest and abstain from voting.
	Flowers and gifts	Ratepayer 'Thankyou'	Bias/ Pre-determination?	Declare to Governance
	Coffee and food	Ratepayers sometimes 'shout' food and beverage	Bias or pre-determination	Case by case
	Staff	N/A	Suggestion of not being impartial or pre-determined!	Be professional, due diligence, weigh the evidence. Be thorough, thoughtful, considered impartial and balanced. Be fair.
	Warren Pattinson	My husband is a builder and may do work for Council staff		Case by case
Ann Court - Partner	Warren Pattinson Limited	Director	Building Company. FNDC is a regulator	Remain at arm’s length
	Air NZ	Shareholder	None	None
	Warren Pattinson Limited	Builder	FNDC is the consent authority, regulator and enforcer.	Apply arm’s length rules
	Property on Onekura Road, Waipapa	Owner	Any proposed FNDC capital work in the vicinity or rural plan change. Maybe a link to policy development.	Would not submit. Rest on a case by case basis.
David Clendon	Chairperson – He Waka Eke Noa Charitable Trust	None		Declare if any issue arises
	Member of Vision Kerikeri	None		Declare if any issue arrises
	Joint owner of family home in Kerikeri	Hall Road, Kerikeri
David Clendon – Partner	Resident Shareholder on Kerikeri Irrigation
David Collard	Snapper Bonanza 2011 Limited	45% Shareholder and Director
David Collard	Trustee of Te Ahu Charitable Trust	Council delegate to this board
Felicity Foy	Director - Northland Planning & Development	I am the director of a planning and development consultancy that is based in the Far North and have two employees. Property owner of Commerce Street, Kaitaia		I will abstain from any debate and voting on proposed plan change items for the Far North District Plan.
				I will declare a conflict of interest with any planning matters that relate to resource consent processing, and the management of the resource consents planning team.
				I will not enter into any contracts with Council for over $25,000 per year. I have previously contracted to Council to process resource consents as consultant planner.
	Flick Trustee Ltd	I am the director of this company that is the company trustee of Flick Family Trust that owns properties Seaview Road – Cable Bay, and Allen Bell Drive - Kaitaia.
	Elbury Holdings Limited	This company is directed by my parents Fiona and Kevin King.	This company owns several dairy and beef farms, and also dwellings on these farms. The Farms and dwellings are located in the Far North at Kaimaumau, Bird Road/Sandhills Rd, Wireless Road/ Puckey Road/Bell Road, the Awanui Straight and Allen Bell Drive.
	Foy Farms Partnership	Owner and partner in Foy Farms - a farm on Church Road, Kaingaroa
	Foy Farms Rentals	Owner and rental manager of Foy Farms Rentals for 7 dwellings on Church Road, Kaingaroa and 2 dwellings on Allen Bell Drive, Kaitaia, and 1 property on North Road, Kaitaia, one title contains a cell phone tower.
	King Family Trust	This trust owns several titles/properties at Cable Bay, Seaview Rd/State Highway 10 and Ahipara - Panorama Lane.	These trusts own properties in the Far North.
	Previous employment at FNDC 2007-16	I consider the staff members at FNDC to be my friends
	Shareholder of Coastal Plumbing NZ Limited
Felicity Foy - Partner	Director of Coastal Plumbing NZ Limited
Felicity Foy - Partner	Friends with some FNDC employees
Mate Radich	No form received
Rachel Smith	Friends of Rolands Wood Charitable Trust	Trustee
	Mid North Family Support	Trustee
	Bay of Islands Amateur Swimming Club	Committee Member
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
Kelly Stratford	KS Bookkeeping and Administration	Business Owner, provides book keeping, administration and development of environmenta management plans	None perceived	Step aside from decisions that arise, that may have conflicts
	Waikare Marae Trustees	Trustee	Maybe perceived conflicts	Case by case basis
	Bay of Islands College	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Karetu School	Parent Elected Trustee	None perceived	If there was a conflict, I will step aside from decision making
	Maori title land – Moerewa and Waikare	Beneficiary and husband is a shareholder	None perceived	If there was a conflict, I will step aside from decision making
	Sister is employed by Far North District Council			Will not discuss work/governance mattes that are confidential
	Gifts - food and beverages	Residents and ratepayers may ‘shout’ food and beverage	Perceived bias or predetermination	Case by case basis
Kelly Stratford - Partner	Chef and Barista	Opua Store	None perceived
Kelly Stratford - Partner	Maori title land – Moerewa	Shareholder	None perceived	If there was a conflict of interest I would step aside from decision making
Moko Tepania	Teacher	Te Kura Kaupapa Māori o Kaikohe.	Potential Council funding that will benefit my place of employment.	Declare a perceived conflict
	Chairperson	Te Reo o Te Tai Tokerau Trust.	Potential Council funding for events that this trust runs.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Te Rarawa	As a descendent of Te Rarawa I could have a perceived conflict of interest in Te Rarawa Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga o Whaingaroa	As a descendent of Te Rūnanga o Whaingaroa I could have a perceived conflict of interest in Te Rūnanga o Whaingaroa Council relations.	Declare a perceived conflict
	Tribal Member	Kahukuraariki Trust Board	As a descendent of Kahukuraariki Trust Board I could have a perceived conflict of interest in Kahukuraariki Trust Board Council relations.	Declare a perceived conflict
	Tribal Member	Te Rūnanga ā-Iwi o Ngāpuhi	As a descendent of Te Rūnanga ā-Iwi o Ngāpuhi I could have a perceived conflict of interest in Te Rūnanga ā-Iwi o Ngāpuhi Council relations.	Declare a perceived conflict
John Vujcich	Board Member	Pioneer Village	Matters relating to funding and assets	Declare interest and abstain
	Director	Waitukupata Forest Ltd	Potential for council activity to directly affect its assets	Declare interest and abstain
	Director	Rural Service Solutions Ltd	Matters where council regulatory function impact of company services	Declare interest and abstain
	Director	Kaikohe (Rau Marama) Community Trust	Potential funder	Declare interest and abstain
	Partner	MJ & EMJ Vujcich	Matters where council regulatory function impacts on partnership owned assets	Declare interest and abstain
	Member	Kaikohe Rotary Club	Potential funder, or impact on Rotary projects	Declare interest and abstain
	Member	New Zealand Institute of Directors	Potential provider of training to Council	Declare a Conflict of Interest
	Member	Institute of IT Professionals	Unlikely, but possible provider of services to Council	Declare a Conflict of Interest
	Member	Kaikohe Business Association	Possible funding provider	Declare a Conflict of Interest

Extraordinary Council Meeting Agenda

23 April 2020

DRAFT Statement of Intent 2020 to 2023

Purpose of Statement of Intent

This Statement of Intent (SOI) is presented by Far North Holdings Limited (FNHL) in accordance with Section 64(1) of the Local Government Act 2002. This SOI takes Shareholder comments into consideration and represents the objectives, nature and scope of activities and performance targets by which FNHL is to be measured as the basis of accountability. This SOI relates to the period from 1 July 2020 to 30 June 2023.

Abbreviations

Abbreviation / Term	Description
BOI	Bay of Islands
CCO	Council Controlled Organisation
CruiseNZ	Cruise New Zealand
FNDC	Far North District Council
FNHL	Far North Holdings Limited
LTP	Long Term Plan
PGF	Provincial Growth Fund
SLT	Far North District Council’s Strategic Leadership Team
SOI	Statement of Intent

· Table of Contents

Purpose of Statement of Intent 1

Abbreviations. 1

About Far North Holdings Limited (FNHL) 3

Nature and Scope of Activity. 3

FNHL Strategic Direction. 4

Decision for which prior Council approval is required.. 5

FNHL Objective.. 5

Work plan to deliver on Strategic Objectives. 5

Financials. 7

Operating Profit 3-year Forecast 7

Consolidated Shareholders’ Funds and Total Assets. 7

Accounting Policies. 8

Reporting to Shareholders 8

Transactions with Far North District Council 8

Acquisition of Shares 8

Performance Outlook. 8

Performance Targets. 9

Board’s Approach to Governance.. 10

Current Board Membership.. 10

Engagement with the Shareholder 11

About Far North Holdings Limited (FNHL)

As Council’s commercial vehicle, FNHL facilitates and develops commercial and infrastructural assets, and business growth, in the Far North District. In doing so, it will:

- Operate under good governance

- Seek new business development opportunities

- Identify, collaborative or joint ventures opportunities

- Manage existing assets and bring commercial expertise in property management

- Create profits for its Shareholder and improve the Shareholder asset value.

FNHL leads the delivery of property and infrastructure assets in its ownership and under its management. These actions contribute to the development of the Far North District.

FNHL primary roles are:

- To plan, manage, operate and develop; land, maritime, aviation and public assets within its ownership, or under the terms of any management agreement entered into; and

- To plan, facilitate and secure commercial outcomes in its area of Influence that support the growth of the Far North District.

As a secondary role, FNHL may use its management skills and resources to assist both Council and third parties with consultancy services including project management, funding and business support/planning on a commercial basis.

Nature and Scope of Activity

FNHL currently owns and operates commercial and infrastructural assets in the maritime, aviation, primary and investment property sectors.

FNHL may:

- Elect to investigate and invest in any other commercial opportunities that may arise including any proposed by its Shareholder

- Carry out asset management, and may enter into management agreements for defined services on behalf of its Shareholder, or third party

- Divest any of the assets held, subject to any restrictions that may apply in specific cases (such as where the Council has the right of first refusal, council resolution or where the offer-back requirements of the Public Works Act apply).

FNHL will align itself with the Shareholder’s broader strategic objectives by leveraging off these assets to undertake the following business activities (but not limited to) by

- Developing and enhancing a maritime economy

- Attract business and investment in the maritime economy

- Continue with the BOI Marina infrastructure and land-based development

- Ensure all maritime assets owned by FNHL are cost effectively maintained through asset management plans that appropriately balance care of asset with expenditure

- Seek funding sources to further develop or upgrade such maritime assets

- Developing and enhancing property in its ownership

- Maximise the investment in the BOI Airport and reviewing options for freight, extension to the existing runway and associated airside infrastructure

- Continue to pursue the development of the Ngawha Innovation & Enterprise Park

Where agreed with the Shareholder, enter into a management contract for commercial, strategic and non-strategic property assets in order to:

- Undertake acquisitions of strategic property on behalf of Council

- Undertake disposals or re-development of non-strategic land

- Negotiate third party leases where Council is the tenant

- Undertake management of commercial leases

- Evaluate any other properties, developments, businesses and investments as to their current and future potential.

FNHL Strategic Direction

This SOI sets the strategic framework, activities, and performance measures we have set for the next three years to deliver the outcomes its Shareholder seeks.

At the time of preparation of this SOI FNHL has several projects seeking high level funding and approvals. For the moment, this SOI is based on known projects. FNHL will liaise with Council on the new projects and update the SOI reflecting any change.

FNHL is to be aware of and, where appropriate, seeks to align itself with FNDC’s vision, mission and principles statement as outlined in the 2018/28 Long Term Plan (LTP) and related Annual Plans.

For community outcomes FNHL will be guided by the 2018/28 LTP and Council’s Vision. “A District of sustainable prosperity and well-being”, its mission “creating great places, supporting our people and its values”.

Over the period of the SOI, FNDC will provide FNHL with any other documents that it should have knowledge of, whether they be in the consultation stage, or have been formally adopted, that reflect any changes to the Council’s vision or aspirations that FNHL needs to align with.

Decision for which prior Council approval is required

The following criteria are used to guide and demonstrate what types of decisions require Shareholder approval:

1. Decisions which will affect the CCO’s ability to meet any statutory responsibility

2. Decisions which will impact on any intended service levels for a CCO activity (except if the impact is minor or has been agreed by the council through the SOI process)

3. Decisions which will commit the council to future provision of funding

4. Decisions which are not based on a “full arm’s length” commercial basis requiring FNDC approval will to be shown in the accounts as such

FNHL Objective

As the FNDC’s commercial vehicle, FNHL will facilitate and create commercial and infrastructural assets in the Far North District, or if outside the Far North District, with the Shareholders approval, with the aim of creating profits for its Shareholder and creating shareholder value.

Work plan to deliver on Strategic Objectives

The table below shows the key capital projects and initiatives we plan to undertake to deliver on our strategic objectives.

Key Project / Initiative	Description	Contribution to Strategic Objectives	Delivery in 2020-23
Te Pu o Te Wheke	Assist with the proposed development and project management of Te Pu o Te Wheke	To establish a multi-use, leading edge community, cultural and tourism hub to revive Kaikohe's main centre	Ongoing
Te Hononga, Kawakawa	To provide a new interpretive Gallery co-governed by Ngati Hine / Hundertwasser Trust, relocate the FNDC library, and provide new workshops for local artists and business to use.	Redevelopment of the Kawakawa town centre, that will make Kawakawa a destination in its own right, linking; the famous toilets, twin coast cycleway and town square.	May 2020 completion. With FNHL providing ongoing promotion and support over the SOI term.
Manea Opononi	The development of an interactive theatre experience telling the story of Kupe.	The development of a tourist attraction, telling a story of national significance to Maori, will be a major tourism attraction and provide economic benefit to the Hokianga.	Anticipated completion of building is December 2020.
Bay of Islands Airport	Maximise the investment in the BOI Airport, including reviewing options for freight, the runway and associated airside infrastructure.	Reflecting the investment made by Air NZ in the apron / taxiway to accommodate larger aircraft, and more frequent flights and the PGF’s investment in the new terminal additional infrastructure is needed to accommodate business growth e.g. car hire etc	Ongoing
Ngawha Innovation and Enterprise Park	204ha Dairy Farm.	To create commercial business opportunities to grow the economic and employment opportunities in Northland.	On-going with the objective that within 12 months the necessary planning needed will have been approved and potential tenants will have been identified and secured. Such as to enable a start to be made on site before the end of 2020.
Te Waiariki Ngawha Springs	FNHL is project managing the redevelopment and enhancement of the Te Waiariki Ngawha Springs hot pool complex located near Kaikohe.	Te Waiariki has the potential to further build the Mid-North's total visitor market and provide employment for up to 30 people, while delivering benefits to the local community through enhancing an important local landmark	December 2020 open to public.

In addition to the above projects, FNHL shall continue to review, maintain and re-invest in existing assets and operations to ensure maximum benefit to the Company. FNHL will also evaluate on an ongoing basis, other investment opportunities as they arise.

Financials

Operating Profit 3-year Forecast

FNHL is forecasting an operating profit before tax for the 2020/21 year to be $2.6 million, for the 2021/22 year $2.7 million and for the 2022/23 year to be $2.8 million.

Consolidated Shareholders’ Funds and Total Assets

For the period from July 2020, the Company is forecasting continued growth in total assets and shareholder’s funds through the completion of PGF developments and asset revaluations.

FNHL has adopted an accounting policy for the government grants received through the Provisional Growth Fund. The grants received are offset against the value of the asset and the grant income will be recognised through the profit and loss through the revaluation of the asset. This will be different to the accounting treatment FNDC will incorporate into the group accounts.

Distribution Policy

Dividends

The Shareholder may require FNHL to pay a dividend of 50% of its after-tax operating profit on 28th February in the following financial year. For the following years the company will endeavour to pay the following minimum amounts:

2020/21 financial year $1,300,000

2021/22 financial year $1,350,000

2022/23 financial year $1,400,000

FNHL may from time to time present commercial proposals to the Shareholder for an alternative use of the Shareholder’s share of after-tax operating profit for its consideration.

Share Redemption

In the event that by 5 November 2021 the company has not been able to develop the Ngawha dairy farm to its potential as an innovation and enterprise park, and thus not led to the establishment of businesses or industry thereon, the company will look to dispose of the farm, and from those proceeds or other resources, will look to repay to its shareholder, over a period no longer than 4 years, the sum of $5.0 million by means of share redemption.

Accounting Policies

FNHL is a for-profit Tier 2 entity that has adopted accounting policies that are consistent with the New Zealand International Financial Reporting Standards and generally accepted accounting practice. Details of the accounting policies are set out in the notes to FNHL’s annual financial statements at 30 June 2019 published on our company website. There is no material change in accounting policies envisaged over the period covered by this SOI.

Reporting to Shareholders

FNHL will provide quarterly reports to its Shareholder in November, February, May and an Annual Report in September. FNHL will provide details of its forecasts of earnings, cash flow and balance sheet structure, if requested by its Shareholder.

In addition, representatives from FNHL will attend Community Board meetings at least once a quarter to update them on current projects and plans that affect their ward, and will include regular communication with the relevant board when physical works are to commence in the ward.

Transactions with Far North District Council

In transactions with FNDC for the provision of goods and / or services, FNHL will seek trading terms and conditions applicable to external customers.

Acquisition of Shares

If FNHL wishes to acquire shares in another company or organisation, it will notify its Shareholder at least 30 days in advance.

Performance Outlook

FNHL has an agreed set of performance measures and targets which form the basis for accountability to delivering on Council’s strategic direction, priorities and targets. These are reported on a quarterly basis, in accordance with the CCO Governance Manual. These include measures agreed as part of the 2018/28 LTP.

FNDC has undertaken to develop a Statement of Expectations aligning with the 2021/31 LTP. FNHL’s subsequent SOI’s will be driven by this Statement of Expectation.

Performance Targets

Objectives	Measure	SOI Target 2020/21	SOI Target 2021/22	SOI Target 2022/23
Engage in successful commercial transactions	Growth in Shareholder value	Shareholders’ funds increase by $1.125m, after payment of dividend	Shareholders’ funds increase by $1.125m after payment of dividend	Shareholders’ funds increase by $1.125m, after payment of dividend
Provide a commercial return to FNDC	Dividend return to FNDC	Pay minimum $1.3m	Pay minimum $1.35m	Pay minimum $1.4m
Effective Financial Management	Annual operating profit after tax to exceed $1.5m	$2.6 million	$2.7 million	$2.8 million
To achieve a return on funds invested	Return on Investment (ROI) is higher than the average cost of borrowing on its commercial assets	ROI 7% AV cost of borrowings 4.85%	ROI 7% AV cost of borrowings 4.85%	ROI 7% Av cost of borrowings 4.85%
Effective Governance and Financial Control	Clean audit sign-off each year from Audit NZ Annual Board Review with appointed Audit NZ representative To remain within Banking covenants Board Audit and Finance committee meetings to be conducted semi-annually	To achieve To be held To achieve To be held	To achieve To be held To achieve To be held	To achieve To be held To achieve To be held
Ensure that the Bay of Islands Airport operates within regulatory requirements	CAA Certification	To achieve	To achieve	To achieve
Enhancing the Far North as a visitor destination	Complete a customer and airline industry survey that demonstrates satisfaction levels with facilities and services at either BOI or Kaitaia Airports	85%	85%	85%
Enhancing and developing a maritime economy	Complete a marina user or maritime services customer satisfaction survey that demonstrates satisfaction levels with facilities and services available	95%	95%	95%
Enhancing the Far North as a destination	Research customer satisfaction via survey within the cruise ship industry that demonstrates satisfaction levels with FNHL as security authority and provider of disembarking infrastructure	85%	85%	85%

Board’s Approach to Governance

Current Board Membership

§ William Birnie CNZM (Chairman - term ends July 2021)

§ Sarah Petersen (Chair Audit & Risk – Term ends 28 February 2021)

§ Kevin Baxter (term ends 30 June 2020)

§ Hon Murray McCully CNZM (term ends 28 February 2021)

§ Ross Blackman (term ends July 2020)

In undertaking its activities, the Board of FNHL will exhibit and ensure:

1. Sound business practice in its commercial undertakings, operating as an efficient and effective business

2. Ethical and good behaviour in dealing with all parties

3. An active partnership approach with Maori, and all other people in business throughout the Far North, promoting effective communication where appropriate

4. To comply with all relevant legislative requirements including those relating to the principles of the Treaty of Waitangi

5. An open and transparent approach to decision-making with its Shareholder, while respecting the need for commercially sensitive information to be protected

6. Operate according to the best practice statements produced from time to time by the Institute of Directors in New Zealand (Incorporated)

7. That Council’s vision and aspirations are considered and that FNHL is conscious that it needs to contribute to the overall financial performance of Council

8. FNHL is a good employer in accordance with the legislation guidelines set by Government.

The Board will adopt the following approach to its fiduciary responsibilities to ensure good governance:

§ Prepare a 3-year SOI setting out its strategic goals and obtain the Shareholder’s agreement to this statement

§ Define its organisation structure and individual accountabilities by ensuring management have clearly defined job descriptions

§ Set corporate budgets for earnings and cash flow

§ Delegate both responsibility and authority to its Chief Executive

§ To hold regular board meetings to monitor progress towards the Company’s goals and objectives; and

§ Prepare Quarterly and Annual Reports to its Shareholder as required and in accordance with current business plan.

Engagement with the Shareholder

To ensure the implementation of good governance within FNHL and within the Shareholder, both parties agree to maintain a high level of communication between each other.

The Chief Executives will use their best endeavours to communicate in a timely manner and ensure that matters are raised so there will be ‘no surprises’.

FNHL’s relationship with the governing body of Council will generally be for the purposes of developing strategic direction, agreeing statements of intent, service agreements and levels of funding, and performance monitoring and reporting.

The Board believes that regular communication with the Shareholder is essential to the good governance of the business and therefore FNHL will, in addition, seek to meet informally with FNDC as required by either FNHL or its Shareholder, to deal with any other matter of mutual interest.

Processes will be established for on-going and regular contact with senior management (SLT) to share information, provide a commercial dimension when required and to ensure alignment with Council’s strategic direction.

FNHL will attend Iwi Forums, where invited, and attend Community Board meetings where appropriate or invited to if agenda items warrant their presence.

Ordinary Council Meeting Agenda

23 April 2020

Staffing, Salaries and Training

Current Staffing Levels

Actual Full Time Equivalent (FTE) at 29 February 2019	Annual Plan Establishment (FTE)
349.38	377

Salaries and Training 2019-2020

Financial Performance as at 31 February 2020	YTD Actual	YTD Budget	YTD Actual vs Budget	Annual Budget
Salary Costs	$18,814,418	$19,365,825	$551,407	$29,610,284
Training Costs	$286,067	$570,210	$284,143	$921,864
Trainings as a % of Salaries (Sector average is 4%	1.5%			3.1%

Vacancies

As at 29 February 2020 FNDC held the following part time and full-time permanent vacancies:

Department	Vacancies currently being recruited (FTE)	Vacancies pending recruitment (FTE)
CEO/Communications/People & Capabilities	0	2
Corporate Services	1	0
District Services	4	5
Infrastructure & Asset Management/NTA	6	6
Strategic Planning & Policy	0	1
FNDC TOTAL (FTE) * includes part time & full time permanent staff	11	14

Communications

Summary

Raising community awareness of the drought’s impact on water supplies was the Communication Team’s focus in January and February.

The team delivered a multi-media information campaign that included social media, news coverage, video, posters, leaflets, letters to households, electronic variable message signs, roadside billboards and signage at retail outlets including supermarkets.

By the end of February, there was reduced demand at all Council water supplies, with three supplies achieving or exceeding the Council’s 25% water reduction target.

Media releases

The Council issued 22 media releases between 1 January and 29 February 2020. Thirteen of these were about the drought and its impact on Council water supplies. The remaining nine were about the:

· Bay of Islands-Whangaroa Community Board byelection (two media releases)

· Drought’s impact on road maintenance

· Theft of playground equipment at a park in Kaitaia

· Demolition of a fire-damaged pavilion at Kerikeri Domain

· Purchase of commercial kennels near Kaikohe for a new Southern Area Dog Shelter

· High customer satisfaction levels at an i-SITE visitor information centre

· Team effort involved in producing a digital map of parks and reserves in the District

· Tuia Rangatahi Leadership Programme

Media enquiries

The Communications Team fielded 51 enquiries from news reporters. Thirty-nine of these enquiries were about the drought and water shortages in the district. While the rest were about a range of issues, environmental management and development were key themes.

Other outputs

Other outputs during the reporting period included:

· The Communications Team, assisted by elected members ran a public information stand about the water shortages at the Kaikohe and Kaitaia A & P Shows

· Four Mayoral blogs/newspaper columns about water shortages

· One full-page newspaper advert about Tourism Infrastructure Fund projects in the District

· Letters were sent to households in Kaikohe, Kaitaia, Paihia, Kawakawa and Moerewa where the Council introduced Level 4 water restrictions

· Two full-page newspaper adverts about water shortages in the District

· A four-page newsletter about the triennial revaluation of properties in the District

· Signage and roadside billboards about water shortages

· Six videos about the water shortages

· Weekly graphics showing water usage at the Council’s eight water supplies

· More than 50 Facebook posts

Strategy

Planning

Annual Plan

Consultation will soon commence on the Annual Plan for 2020/21. The consultation document will be adopted in early March 2020. Consultation will span from 16 March to 17 April 2020, followed by hearings. Adoption of the Annual Plan is currently scheduled for 25 June 2020.

Long Term Plan (LTP)

The 2021-31 LTP programme is now well underway, with a “launch” workshop planned with Elected Members in mid-March 2020. Substantial traction has been achieved in planning a community engagement programme incorporating early engagement alongside other future-facing topics such as Far North 2100, Climate Change and the District Plan.

Review

The Revenue Review process gets underway again for this triennium in early March with a workshop with Elected Members. The scenarios left on the table prior to the election in October last year will be discussed again, with new Councillors having received a session with staff on how our rates work and what the scenarios mean. The next step is for Council to decide which scenarios they wish to have an initial conversation with ratepayers on. This engagement has been incorporated in the overarching engagement programme alongside the LTP and other future facing initiatives.

Strategy Development, Bylaws and Policies

Far North 2100 District Strategy

Through January and February 2020 staff have continued to develop an initial list of transformation opportunities that will be the subject of a joint collaborative workshop between iwi and hapū partners and the Council planned for March and April 2020. The output of these workshops will be a draft strategy ready for public consultation in mid-2020.

Transport Strategy

A workshop with key partners and stakeholders on proposed transport projects and programmes of work was completed on 18 February 2020. The output of this workshop will feed into the Council’s submission to the Regional Land Transport Plan in June 2020.

The draft Integrated Transport Strategy will be reviewed as part of the development of the Infrastructure Strategy which is a requirement of the Long Term Plan. The Infrastructure Strategy is scheduled to be completed in December 2020, in alignment with the Long Term Plan.

Climate Change

Work has continued on the development of a roadmap that outlines proposed mitigation and adaptation actions aimed at addressing issues for the Council and the community that are predicted to come from climate change. The roadmap will be presented to the Strategy and Policy Committee on 5 May 2020. The roadmap will include an assessment of best practice approaches by other councils and what the obligations are anticipated to be for Council under the Climate Change Response (Zero Carbon) Amendment Bill that passed into law on 13 November 2019.

An initial calculation carbon footprint of Council’s activities is currently underway.

Bylaw Programme

Staff continue to refine Council’s bylaw development processes and procedures based on guidance provided by the Society of Local Government Managers. This is being applied to the review of the bylaws that have been identified as being revoked.

Staff are working on bylaw option analysis papers for each of the revoked bylaws. These papers will present regulatory and non-regulatory options aimed at addressing the problems that the revoked bylaws originally considered when they were first developed. The first round of options papers will be presented to the Strategy and Policy Committee on 5 May 2020. This will address regulations for reserves and parks, trading in public places and regulation of vehicle crossings from roads in properties.

Northland Water Storage

Northland Regional Council is leading a study of opportunities for water storage to address summer dry conditions below the level that can sustain crops in Northland. The Provincial Growth Fund approved $11 million of further funding to this project in the last quarter of the 2019 calendar year.

This project is in a pre-feasibility phase. The outcome of this phase will be the recommendation to the Ministry of Business Innovation and Employment of the preferred site in Northland for investment in water storage infrastructure.

Strategic Relationships Survey

The contact details for each of Council’s strategic partners and stakeholders have been captured in Council’s contact management system. Interviews with the key contacts aimed at understanding what the quality of the relationship is with each key partner and stakeholder will be completed over April and May 2020.

Iwi/ Hapῡ Relationships

Te Oneroa-a-Tōhē Board (the Board) met during February to review a draft version of the Beach Management Plan. The Board discussed the results of the summer engagement campaign which provided further information to guide the development of the Beach Management Plan. The summer campaign consisted of a photo competition and iwi led engagement with their communities, including face to face, online and advertising through iwi channels and radio.

In February 2020, staff and a Councillor representative were invited to attend a meeting at Otiria Marae. Water security and reserve management were among several issues discussed at the meeting.

The co-chairs of the Iwi Local Government Chief Executives Forum (ILGACE), Council’s Chief Executive Officer and the Chief Executive Officer of Te Runanga o Whaingaroa, have discussed the ongoing relationship. A meeting date is being considered in April 2020 for the next ILGACE meeting.

Staff have been assisting Ngati Kuri to develop their economic development plan which includes the redevelopment of Ka Uri.

Staff have been working closely with the new Te Aupōuri Chief Executive to find alignments and opportunities for greater collaboration

Community Wellbeing

Community Development

Central government and other potential funders have approached the regional interagency partnership that administers the award-winning Kai Ora funding programme, offering funding assistance to grow the programme. The regional team developed a growth strategy which has been submitted and is now being considered. The fund could receive up to $100,000 in assistance.

Staff continue to work with Northland Inc, Department of Conservation, Heritage NZ and others to discuss the potential establishment of a Dark Sky Reserve in the Far North to boost tourism in the district.

With the 2021-31 LTP now underway staff are revamping the strategic plan process through which Community Board priorities are considered for inclusion in the LTP. An initial meeting with chairs has been planned to discuss possibilities. This will lead to individual Board workshops to refine strategic priorities for presentation to Councillors. Staff have, in the meantime, started work to standardise the strategic plan template for Community Boards.

Staff are working with the Towai-Maramaku community to deliver on their community plan. The community see the recent announcement that the rail will be reopened in the area as something that could provide both challenges and opportunities for the area.

Sport Northland activities in the Far North are funded through the partnership between the Council, Sport New Zealand, local sponsors and funders. They continue to deliver popular events and their recent six-monthly report shows Far North residents make up approximately 43% of participants across all major events. The Bay of Islands Beast attracted 36% of Far North residents, the Kerikeri Half Marathon 27% and the Ray White 5km 54%. The attraction of 3,289 participants to the Far North for events represents an opportunity for the Far North to maximise the economic return of these short-term visitors. The ASB Kerikeri Half Marathon and the Ray White 5k continues to attract approximately 30% from outside Northland.

Community Placemaking

Council was approached by the America’s Cup to explore the possibility of establishing official “fan zones” across the Far North. Staff developed a proposal which has been accepted by the America’s Cup and are now working across Council, with Far North Holdings Ltd, businesses and other potential partners to pull together a programme of events that will enable communities to host and allow our district to be part of this global event.

The Provincial Growth Fund funded Te Hononga Project in Kawakawa is near to completion and the across Council project team are now working with the Te Hononga Trust and Far North Holdings Ltd to address the ongoing operational requirements of the centre. The building will be formally opened by the Prime Minister in June 2020.

The Kaikohe basketball court project is completed and staff are now working with the Kaikohe-Hokianga Community Board to master plan the Memorial Park reserve to determine the best placement of the toilet block and other facilities for which Community Board funding has been allocated.

Staff are working with the Kaikohe-Hokianga Community Board and a Hokianga group who would like to take on the management and operation of the Rawene Campus.

District Planning

Genetic Modified Organisms Environment Court Appeal

The Far North District Council and Whangarei District Council jointly appealed the new Northland Regional Plan, due to the Regional Council’s decision not to regulate genetically modified organisms in the coastal marine area. Mediation between the parties occurred on 24 February 2020, with the Regional Council advising that they have a neutral position and not present any new evidence at any court hearing. No other party appealed the decision, but other organisations such as Federated Farmers and GE Free Northland have joined the appeal process as interested parties via the court process. The mediation process has not yet closed. If no resolution is obtained, then the matter will proceed through the court process and be heard by an Environment Court judge.

Plan Review

Understanding Far North’s business land demand

Studies were undertaken in 2015 and 2017 to develop a better understanding of commercial and industrial land demand trends. This includes scale and sector trends that determine industrial land needs, current and future commercial land uses, understanding how much business land is required over the next 10, 20 and 30 years, and the factors that influence industry decisions on where they locate. Both past studies provide an evidence base for staff to best understand the future demand and supply of business land to meet the needs of the district’s industry and commercial sectors. Staff are undertaking further work to update and refine these studies to provide a realistic picture of the current and future business land demand and uses in the Far North district in accordance with our responsibilities under s.31 of the Resource Management Act.

Urban and Public Housing Agency - Kāinga Ora

Staff undertook preparations to meet with Kāinga Ora to understand their mandate and to look to align where possible, in terms of the future provisions in the District Plan. This includes coordinating with the Population Health Intelligence Unit of the Northland District Health Board to ensure a multi-agency approach for this collaborative opportunity. Staff hope to gain an understanding of social housing demand and the housing agency’s plans to respond to the immediate and longer term demands for public housing within the District.

Kāinga Ora is a government organisation established in 2019 tasked with managing public housing and the delivery of urban development projects, some of which include KiwiBuild, First Home Grant, First Home Loan and Kāinga Whenua. The Urban Development Bill, which Council has submitted on, will give Kāinga Ora a tool kit of powers which include the ability to override or amend Resource Management Act plans, act as the local consent authority, levy targeted rates and Development Contributions and compulsorily acquire land.

Indigenous Biodiversity Identification and Mapping Project

A Council workshop was held on 18 February 2020 to improve understanding of Northland’s indigenous biodiversity issues and Council’s statutory responsibilities, both current and emerging, under the proposed National Policy Statement – Indigenous Biodiversity (NPS-IB).

A specialist consultant provided details on the methods that have been used to identify potential Significant Natural Areas (SNA) as part of Council’s current responsibilities under the Northland Regional Policy Statement. The mapping project, implemented collaboratively with Whangarei and Kaipara District Councils, has now completed full identification of the potential SNAs throughout the region and the next stage includes consulting with affected landowners over the accuracy of the identification of potential SNAs against ecological criteria.

The workshop also covered how the proposed NPS-IB would provide additional responsibilities for district councils in protecting and maintaining biodiversity in the District. Staff have prepared a report and a proposed submission on the NPS-IB for the March 2020 Strategy and Policy Committee meeting.

Northland Forward Together

Below is a snapshot of the active Northland Forward Together projects that are being progressed by Northland Councils. Priorities are:

· The Waters

· Climate Change

· Regional Economic Development

· Refinement of Northland Transports Alliance (NTA)

Overall the Waters, Climate Change and Regional Economic Development projects are ready for socialization with Northland Councils and will be discussed with elected members at their Northland Forward Together (NFT) Workshop on the 14 April 2020.

Northland Forward Together – Snapshot of individual project status and action 28 February 2020

	Projects	Lead	Status	Actions to be taken
1	Regional ICT Programme	FNDC	In Progress	ICT is currently focused on the NTA and a proof of concept to deliver communication and document management tools. This work is on-going.
2	Four Waters	WDC	In Progress	Taumata Arowai – The Water Services Regulator Bill, is currently in Select Committee. Submissions are currently being called for and close 4 March 2020. The Bill establishes Taumata Arowai – The Water Services Regulator as a new Crown Agent and provides for its objectives, functions, operating principles and governance arrangements. The bill is part of a broader package of reforms to the three waters regulatory system and will be complemented by a separate Bill that will give effect to decisions to implement system-wide reforms of the regulation of drinking water and source water and targeted reforms to improve the regulation, and performance of wastewater and stormwater networks. The Four Waters Team has reviewed how water services can be delivered at a regional level and what aggregation can look like for Northland. This is one of the discussion topics at 14 April 2020 Elected Members NFT Strategic Workshop.
3	Climate Change	KDC	In progress	The Te Taitokerau Councils Climate Change Adaptation Group reported to the Mayoral Forum on the 24 February re: · Proposed climate change messages · The group’s current focus on delivery an adaptation strategy August 2020 · The strategy will outline a ten-year work programme and funding for the 21-31 LTP · A small number of pilot community adaptation planning projects · A communication and engagement plan in progress · A Maori engagement plan is being developed with internal Maori advisors and advisory groups · A new governance structure - inter-council joint standing committee · A Maori adaptation technical advisory group · Hazard Mapping – this is underway and will include coastal erosion and coastal flooding, and extreme sea level rise scenario of 1.52M to be included in regional hazard maps for category A development. This project will be discussed at the Elected Members NFT Strategic Workshop on 14 April 2020

Regional Economic Development

FNDC

In Progress

A formal report was presented to the Mayoral Forum 29 May 2019 proposing two staged approach for the future delivery of regional economic development services.

Further work has been completed by CEs and management to put forward a proposal based on the recommendations of the 2017 Martin Jenkins Review, together with consideration to level of funding and shareholding by the District Councils, the timing of public consultation that is aligned to the 2021-31 LTP.

The development of a regional economic development strategy is recommended to be developed alongside moving the present-day Northland Inc. to a regional service delivery organisation. Funding and consultation would need be aligned to the 2021-31 LTP and be completed under Northland Forward Together.

A proposal was discussed at the Mayoral Forum on the 24 February and will progress for discussion at the Elected Members NFT Strategic Workshop on the 14 April 2020.

Corporate

Audit & Risk

Audit and Assurance

The Conflict of Interest Management audit has been completed. This audit is to provide assurance that conflicts of interest are being appropriately managed for new and existing staff. A number of improvements to our management of conflict of interest have been identified.

An investigation into a Fraud Near Miss was completed. The output of this investigation is the Lesson Learned report presented at the 12 February Assurance, Risk and Finance Committee meeting.

Work continues on the Legislative Compliance Framework Improvement with data analysis to inform the business case. This will support staff to manage the risk of frequent legislative and policy change and potential compliance breaches; and to improve reporting and visibility.

Implementation of audit NZ recommendations:

· The network log-on account audit analysis has been completed. This will ensure only current employees and contractors have access to our systems. This audit will be repeated on a six-monthly cycle

· Collaborating with District Administration to design and deploy an improved process for capturing signatures to populate the signature register

The 2020 assurance and audit calendar is presented for adoption at the 25 March Assurance, Risk and Finance Committee meeting.

Risk

Regular reporting, to the Assurance, Risk and Finance Committee, on the top organisational risks and their treatment plans continues.

The deep dive workshop programme is to be scheduled. Business Economic Research Limited (BERL) has been commissioned to provide the Far North District Council with an analysis of the prevalence of rates unaffordability and affordability across the District for eight different constructed household types. This analysis will enable the Far North District Council to better understand the affordability of local authority and regional authority rates on rate paying households. This report was commissioned mid Feb 20 with the final report expected early April 20. This will inform the second ARF005 Affordability workshop.

In accordance with the Risk Management Policy adopted by Council August 2019, the “Fresh Water Resilience” risk has been identified as an emerging risk. This risk was scored and prioritised using the FNDC IDEATE methodology which assessed this risk against the defined risk categories and risk tolerances. The outcome of this analysis is to recommend the addition of this risk onto the Organisational Top Risks Dashboard.

An elected member workshop is also to be scheduled to cover the FNDC Risk Management Framework and a refresh of the Top Organisational Risks Dashboard.

The Transformation and Assurance team continues to work with the organisation to refresh / establish Group risk registers. Two Groups, District Services and Strategic Planning and Policy, are working to imbed risk management into their management meetings as a standing agenda item. The standing agenda item focuses the managers on an appropriate risk conversation facilitated by the provision of a set of risk questions:

Standard risk questions for meeting agendas

· Is the risk register up-to-date?

· Is the risk treatment progress to schedule?

· Has our data baseline for any of our risks changed or has a significant change to our external environment occurred or occurring e.g. legislation?

o Does this data indicate that the risk impact score has changed?

o Has the likelihood of this risk materialising changed?

o Are there any new or emerging risks?

o Do we need to test any of our controls?

· Do we need to escalate (e.g. to SLT then to ARF) or de-escalate any of our risks?

Transformation

We are also leading or supporting a number of transformation work programmes within the organisation. The outcome of these initiatives is to improve the efficiency and effectiveness of our organisation to support our goal of to be a progressive Council.

Samples of initiatives underway are:

· IAM Business Process Support, phase 2

· Resource Consents, Vision 20/20

· Customer experience collaboration

· NTA Diagnostic

· Programme Darwin

· CouncilMARK initiative #33 Top 12 Risk Treatment Programme Action Plan and Reporting; #34 Process Management Framework Action Plan and Reporting; and #11 Risk Management Action Plan and Reporting

· Business Continuity Plan refresh

· Climate Change Action Forum

· Customer and digital collaborative working group

· Innovation Workforce Planning initiative

Information Services and Technology

Electronic Agenda - LG Hub / iPad Rollout

Planning and testing have begun for the introduction and rollout of the electronic agenda platform and iPad for Councillors.

This project will provide a number of advantages with the obvious being the reduction of paper version of Council papers/agendas needing to be produced, faster delivery to elected members and providing Councillors with a ‘single pane of glass’ for all interactions and information that is needed by members in their duties.

The LG Hub product is a companion product with the existing InfoCouncil product already used in Council.

The project will see the devices and applications rolled-out during late March and April. Councillors Smith and Tepania have been the early adopters for the setup and usage of the iPad devices.

More timelines and details will be distributed to Elected Members in the coming weeks.

Property File Digitisation Project

The project achieved another milestone with the final processing of property files occurring in early February by the vendor Desktop Imagine (DTI). This marks the end of the back-capture process following the additional capital funded approved in November last year

The project has been completed ahead of the original August 2020 timeline which will provide some savings for Council as part of the project funding and savings being able to be generated.

The focus will now move to the final reconciliation and review of the work carried out by DTI and delivery of a final project close report that will be reported back to Council in the coming months. The report will provide Council with the final outcomes and deliverables achieved by the project and some options around what will be next and how Council is able to leverage this newly created digital asset.

Property File Requests:

February – 520 requests
January – 562 requests

The amount of activity with property files requests has also increased since the last reporting period given the seasonality of house purchases during the summer months. Following an initial decrease when the fee was introduced in July 19, the property file requests have returned to about the same as before the introduction of the fee.

Server and Network Project – Implementation Underway

At its November 2019 meeting, the Council approved implementation of the Server and Network renewal project. This is a foundational project to enable other Digital/IT related initiatives that will increase staff productivity.

This project has been one that has taken a considerable amount of effort by the internal teams and Council’s vendor Datacom. In February the new server and network hardware was received and installed into the Council Kaikohe and Kerikeri offices.

During the end of February and March we will be migrating a significant amount of applications, data and services from the old environment to the newly installed and configured infrastructure.

The team have installed, configured and now in production:

· New CORE network

· New Firewall network

· New UFB Internet Connection

· Resolved performance issues with Pathway and Objective

· New Servers installed and configured

· New Storage environment installed and configured

· Created the new Citrix environment for rollout.

The project is planned to be completed in April with the Disaster Recovery site at JBC being brought online.

March will see the optimisation of the new infrastructure, this optimisation will support Council operations and planned digital initiatives moving forward.

Office 365 Project – New Citrix Environment providing O365 to all

Work is progressing with the upgrade and migration to Microsoft Office 365 platform. This includes several end-user application/service upgrades and changes that will be progressively rolled-out in the coming months.

The platform will also provide additional options for collaborations with Northland Transport Alliance, Far North Waters, and other regional partners.

Office 365 has been deployed to over 180 staff. The server and network project allows all remaining staff to move to the new Office365 environment. This will give all staff using Citrix (on premise or remotely) with a single toolset for everyone to be able to use.

The second phase of migration begins in April with the move from Skype for Business platform to the new Office 365 Teams environment.

Shared Services – Northland Transport Alliance – Collaborative Proof of Concept

During February a Proof of Concept for the NTA was started for wider NTA teams to be brought online. Proof of Concept is based on the use of Office365 – SharePoint and Exchange Online. It is aimed to give NTA staff options as to how they can operate across agencies, share documents and collaborate more easily.

The outcome will be for all staff from all member councils and organisations to be able to operate under a single environment to ensure teams have the tools and information when needed.

- Outlook Mailbox

- Calendar Access

- File sharing services

- Collaboration via SharePoint and Teams

Program Delivery and Business Intelligence

Server consolidation

With the arrival of the new hardware, we have started with the server refresh within various parts of the BI and GIS environment and most of the mission critical servers have been moved over to the new platform. Some of the current systems are outdated and require a rebuild to accommodate the later versions of software and to provide Council with flexible services. Overall speeds of database services has increased, and the environment is very stable. We hope to complete the server consolidation by end quarter 4.

Building Consent Authority “BCA”

BCA dashboard was amended to reflect more usable data and to identify opportunities for process improvement or alignment of practice to documented processes. The development of this dashboard is nearing completion. The work in this reporting period has focused on responding to the business’ change requests as well as facilitating the improvement of data quality.

Mortgage Demand Process

In previous rating years the Mortgage Demand process was a daunting task due to the amount of manual work involved. The initial work involved fixes to the existing process to allow the initial mortgage demand to be run in December. We have redesigned the process with a focus on automation, update to ‘Date report’ and providing better visibility of the process in Pathway. The initial run involved 200 assessments and rate arrears in excess of $1mil and an additional 300 were generated this month.

GIS Workshop

We have identified projects that require GIS service and had an in-depth workshop on how to improve on our current offerings and what our current system limitations are. Currently we are optimizing our current deployment of ArcGIS by doing maintenance, cleaning out incorrect and out of date data to enable us to deliver one source of the truth. We are scaling down on the amount of applications used to perform the same task bringing everyone in line with one standard system that contains all the relevant in-house data and incorporate external sources of data in a unified platform that will deliver a FNDC data library that consists out of our authoritative collection of data services.

GIS Upgrade

Upgrades were completed successfully to the GIS platform in-house saving $20,000 and enabling us to provide better and faster delivery of geospatial information across all major platforms.

GIS Based Projects

Project Darwin has been identified as one of the key projects that will use GIS services. We have been actively assisting in integrating IPS with our ArcGIS platform to plot assets geospatially on the current data sets, providing a clear understanding of the data and areas of improvement prior to the data import into the IPS system.

Online Services

The second stage of Online Services is nearing completion and delivery. This release will include online customer registration, public license enquiries, the online LIM requests and the CityWatch RFSs for mobile devices which is branded as MyFNDC.

The content of the stages has been changed so that Stage Three will consist of Resource Consent and Building Consent applications. In addition, preliminary work for Payments has begun.

Stage Four will now consist of Permits and Licenses, Animal Registration and Mobile Inspections (other than building inspections) and is scheduled for release in July 2020.

Operational Financial Performance

As at 29 February 2020

Operations

Customer Service

Customer Experience Programme

Closed RFS – Customer Satisfaction Index (CSI)

The scores provided below are for the two months ending 29 February 2020:

· Overall CSI for Requests for Service: 82.7 (2.9% Increase)

· Overall satisfaction making the request 82.8 (8.5% decrease)

· CSI for requests made via the After-Hours provider: 77 (13.05% decrease)

· CSI for library services: 92.9 (0.3% increase)

· CSI for visits to i-SITEs and Service Centres: 99.5 (no change

Monthly CSI Trend for closed Requests for Service:

Please note that due to the inherent delay of between 5 to 6 weeks in receiving feedback from customers, the most recent reporting month should be interpreted with caution.

Customer Service Statistics

Contact Centre / Service Centre’s

· 10.89% decrease in the financial counter stats for Service Centres (3,854 down from 4,325)

· 17.77% decrease in calls to the Contact Centre (13,990 down from 17,013)

· 15.49% decrease in the number of AskUs emails (2,629 down from 3,111)

· 26.55% decrease in the number of Building Inspection bookings (661 down from 900)

i-SITEs

· 16% decrease in visitor numbers district-wide (92502 down from 108,122

· 0.1% decrease in retail revenue ($36,833 down from $36,896)

· 10% increase in transaction spend ($93,230 up from $83,530)

· 24% increase in transaction numbers (22,134 up from 16,647)

Libraries

· 1.8% decrease in total book issues (64,269 down from 65,366)

· 29.2% increase in ebook and audiobook downloads (4,855 up from 3,757)

· 1.2% increase in computer inhouse sessions (7,632 up from 7,539)

Regulatory Services

Environmental Services

1665 Requests for Service were received and 1579 closed during January – February.

Animal Management

The Animal Management team received 588 Requests for Service between January - February and responded to 93% of these on time.

7,864 dogs have been registered for the current registration period. There are 3,270 additional dogs on record which are not currently registered. The team is working with dog owners to promote responsible dog ownership which includes dog registration.

58 dogs were impounded across the District during the January - February period with one dog rehomed through Council’s website. 13 dogs were transferred to rescue groups for rehoming and 24 dogs were claimed by their owners.

5 Infringements were issued to dog owners between January - February.

Southern pound facilities have been acquired. Provisions are being made for an upgrade of the facility to make it work ready. Progress on the northern facility has been slowed due to focus on the southern facility.

Environmental Health and Monitoring Compliance

There were 38 food business verifications conducted between January – February, and 260 noise complaints were received between January – February.

72% of the noise complaints were responded to in time. We are currently working with the contractor to improve response times.

Building Compliance

108 RFSs were received and 97 closed by Building Compliance between January - February.

23 Notices to Fix were issued for breaches of the Building Act 2004 resulting in 6 building infringements being issued.

A successful prosecution was also attained for carrying out work without consent and failing to comply with a Notice to Fix.

Swimming Pools

109 swimming pool inspections were carried out between January - February. There are 776 pools on record, with 89% being compliant and 99 (13%) under investigation for non-compliance.

Resource Consents Management

553 resource consent applications have been received so far during the 2019 - 2020 financial year.

88 resource consent applications were received during the months of January and February.

Note: the four-year average refers to the average number of consents received during the past four calendar years.

Building Consents Management

· During the January to February period a total of 173 building consents were received

· The BCA issued 164 building consents during the same period

· 100% of building consents were issued within the legislative time frame of twenty working days

Construction is currently underway on Seeka Processing Packhouse and Inlet Estate Development.

The number of building consent applications is tracking along the four-year average. This average encompasses the last two years growth – this is our new norm.

The BCA is reliant on contractors to satisfy its capacity to meet processing demand and statutory time frames.

Note: the four-year average refers to the average number of consents received during the past four calendar years.

Building Accreditation Update

The BCA has cleared all General Non-Compliances (GNCs) identified in the October 2019 International Accreditation New Zealand (IANZ) biennial audit.

The focus now turns to the next audit in October 2020.

The current focus for the BCA includes:

· Processing of consents continues to be carried out with the assistance of external contractors where the BCA currently does not have the relevant competencies.

· The BCA is currently working towards increasing in-house capacity and competencies that will facilitate less reliance on contractors in future.

· Developing a new action plan leading into the next audit, to be audited by the Council’s interim Quality Manager, who will train the incoming Quality manage on the BCA requirements for audit.

Water Crisis

The regional water crisis has seen a significant increase to service requests in response to our awareness campaigns. The below data shows the increase in service request compared to this time last year. We have also seen a significant increase in the number of minor water leaks be reported.

Summary

· The district is currently suffering drought conditions

· Water supply in some areas is at level 4 restrictions, which means absolutely no outside water use

· Additional funding has been made available from PGF for temporary supplies in Kaikohe and Kaitaia

· There is no substantial rainfall predicted within the immediate future and actions are required to be put in place to enable Council to be agile and support affected communities

· Current year budgets will be placed under extreme pressure and it is extremely likely that they will be exceeded

Situation

The Far North is currently suffering drought conditions which is affecting the ability of some of the water schemes to provide water to the community.

The Far North has had no material rain for some weeks on the back of a relatively dry winter. The impact of this is that some areas of the district are now on level 4 water restrictions with the very real possibility that other areas will also move to level 4 very soon.

The Government officially declared a medium scale adverse weather event for all areas north of the Harbour Bridge on 11 February 2020. This will provide some additional funds for farmers and growers within the district but will not address the water issue for the wider community. PGF funds of up to $2m have been advised for temporary water supplies to Kaikohe and Kaitaia.

Water is still available across the district, but it is important that Council can be agile and respond to quickly changing conditions. As the ground is so dry, there are increased incidences of pipe breakages. This puts pressure on budgets allocated for maintenance.

Treatment plants across the district are working 24 hours a day, every day, in an effort to maintain supply. This leaves little time for maintenance and there is an increased risk of plant failure.

If Council loses the ability to provide water to households because supply has failed, it will need to be able to access alternative water provision for communities. The provision of water will need to ensure that all persons requiring support can access support, including those that rely on water for medical reasons and the elderly who may not be able to access any water distribution points.

It is anticipated that the serious nature of the water situation in the Far North will result in additional expenditure over and above that provided in the Annual Plan. This is an emerging situation that requires staff to be agile and able to respond to issues with urgency. The additional budget approved will be monitored and reported back to Council as appropriate.

Drought Information

· There is a drought in the Far North, following a dry 2019 and low rainfall in January and February

· 2019 was Kaitaia’s driest year since records began in 1949

· Awanui River is at its lowest recorded level in 50 years

· 2019 was Kerikeri’s third driest year since records began in 1945

· 2019 was Whangarei Airport’s driest year since records began in 1943

· 2019 was the driest year for the Brynderwyn area south of Whangarei since the 1980s

The Northland Regional Council has stepped up monitoring of aquifers during the drought and provided this update last Thursday:

· All aquifers are 70-80% below water levels expected in February, excluding the Aupouri deep system which is above average.

· The regional council expects some aquifers will reach record low levels in April/May 2020.

· The drought has had no discernible effect on the Aupouri deep aquifer due to its large size.

· The low rainfall over 2019 resulted in record low spring recharge levels for some aquifers.

· Currently, no saltwater intrusion has been detected in aquifers across Northland.

· Detailed risk assessments regarding the risk of saltwater intrusion are underway for the Ruawai and Russell aquifers.

Impact on Water Supplies

· Level 4 water restrictions are in place at our Kaitaia, Kaikohe, Omanaia-Rawene, Paihia-Opua-Waitangi and Kawakawa-Moerewa water supplies.

· Level 3 restrictions are in place at our Kerikeri-Waipapa and Opononi-Omapere water supplies.

· Level 2 restrictions are in place at our Okaihau water supply.

· Water shortages are most acute in Kaikohe and Rawene where we are investigating supplementary sources and contingency plans.

· The Northland Regional Council has issued water shortage direction notices for Kaikohe, Kaitaia, Kawakawa, Rawene and Opononi, allowing us to take water from sources beyond consented limits.

· The Northland Regional Council has issued water shortage directions in 23 Northland communities where groundwater bores are at the lowest levels on record.

· The Northland Regional Council has restricted water use for the Awanui River catchment to essential household and stock welfare need.

· We need four weeks of continuous rain to break the drought.

· We are raising community awareness of the water shortages and urging households and businesses to restrict normal water use by 25%.

· Three of our water supplies reduced their normal water usage by 25% or more between 2 March and 8 March, while the rest made reductions of between 2.28% and 20.56%.

· Five water supplies increased the water savings they made the week before last.

· Maintaining a water supply in Kaikohe remains our biggest problem.

· The situation at our other seven water supplies is stabilising and we are reasonably confident that these won’t run dry.

· There are only a few supplementary supply options for Kaikohe and each of these carries significant risks.

· There is a real risk that critical infrastructure failure at any of our supplies will be difficult to recover from and may result in a temporary loss of service.

· Local government leaders in Northland are holding weekly phone conferences to discuss the drought.

Financial

Financial commitments associated with our drought response now total $3.56 million. We will offset these costs with $1.39 million of Provincial Growth Funds.

The Council approved $5 million of additional drought response funding at a Council meeting recently. There will be weekly on the financial impact of the drought and risks this poses to the Council.

Leak Repairs

359 requests for service about leaks outside the Kaikohe area have been lodged since 1 January 2020. We are working our way through these and 149 requests for service are currently outstanding.

Managing our response

We have disestablished the Drought Operations Team and formed a new Drought Response Team that is aligned with the Northland Civil Defence Emergency Management Group’s response. The new team is not an emergency operations centre. However, it will operate according to coordinated incident management (CIM) principles.

Compliance

Businesses are respecting the water restrictions and filing applications for exemptions. In many cases, businesses are showing concerted effort to conserve water and the Water Shortage Committee is approving exemptions where appropriate.

Common breaches are filling swimming pools, watering gardens and washing cars. Monitoring officers have used persuasion to deal with people breaching the water restrictions. No formal warnings have been issued. At this stage we are following up on RFS and educating and stressing the importance of water saving.

Compliance staff are testing irrigation water in some instances to ensure it doesn’t contain chlorine and come from the Council’s water supply.

Summary

The main points of the drought are:

· We established a Drought Response Team of 15 people early to deal with the drought and to be prepared for the pandemic.

· While Regional Civil Defence (Whangarei based) has dealt with working up immediate/emergency water supplies (e.g. tankers from Fonterra and Army for supplying water, plastic tanks for public places in our town centers in case of reticulated supply failure), the Council has been dealing with two things: alternative waters supplies and demand management.

· Alternative supplies that we have worked up include, for Kaitaia, Sweetwater aquifer for tanker supply and a farm bore for town supply and for Kaikohe, Lake Omapere water for town supply.

· Demand management efforts have seen spectacular changes in usage rates which has had the effect of pushing out supply expiry dates significantly.

· The rains we have been receiving are not substantial enough to be relevant.

Infrastructure and Asset Management

Roading

Resilience Slips (Low Cost Low Risk), Minor Events and Emergency Slips:

· Wharau Rd RP1900 - complete

· Broadwood Rd 6950 & 6970 practically complete

· Taumata Rd 5900 – Construction to finish in March

· Kaitaia Awaroa 26991 – Contract awarded and construction to commence in March

· West Coat Rd RP 16005 – Evaluating tenders

· West Coast Rd RP9563, Fairburn Rd RP9588, & Diggers Valley Rd RP12722 Advertising on GETS – closes 11 March 2020

· Wharekawa Rd RP3552 & 3663 – Tenders close end March

· Waiotehue Rd RP5400 and RP5251 – complete

· Rawhiti Rd – Risk assessment found danger of loose material falling onto road. Remediate in April/May

· Paponga Rd – Prioritised as high risk Minor Event. Remediate in May

· Waikare Road – Procurement planning (expect to procure in April)

· Wainui Road – Recently added to programme to replace sites re-categorised from Resilience to Emergency Work. Aiming to start construction before July.

Panguru Flood Mitigation (Low Cost Low Risk):

Design work progressing. Risk that project will be significantly over budget due to no materials surplus from NRC drainage component and potential discrepancies between NRC & FNDC survey data.

Minor Safety Improvements (Low Cost Low Risk):

Starting to procure physical work for the following Route Treatment safety improvement works (various treatments):

· Kaitaia-Awaroa Road

· Te Ahu Ahu and Old Bay Roads

· Wiroa Road, Waiare Road, Wehirua Road and Kerikeri Road

· Oruru Road, Fairburn Road and Peria Road

· Matauri Bay and Loop Roads

Progressing the following Site-Specific safety improvement designs (guardrail):

· West Coast Road Route Position 14.7km – construction complete

· West Coast Road Route Position 17.1km (design only) – design complete

· Pawarenga Road Route Position 1.7km (design only) – design complete

· Broadwood Road Route Positions 0.3km – construction complete

· Broadwood Road 6.9km – design complete

Consultation On Northland Speed Limits

The Okaihau-Kaeo-Waimate North Speed Limit Review is progressing toward the confirmation of new recommended speed limits.

Following the completion of hearings in December 2019, NTA staff undertook additional assessments of roads within the review area, focusing on areas where community feedback varied from originally proposed speed limits. A Recommendations Report is currently being finalised based on the technical evidence, risk ratings, additional assessments and community feedback.

NTA Staff are currently mapping the new speed limits at the accuracy level required to ensure legally enforceable speed limits. As part of this process, NTA Staff are ensuring that speed limit mapping will be compatible with a newly announced national speed limit map database.

As work is completed on the Okaihau-Kaeo-Waimate North Speed Limit Review, background technical work will commence in the Kaitaia-Awaroa Catchment Area and will include the Kohukohu-Broadwood area. It should be noted that the Kaitaia-Awaroa Road has the highest risk rating in Northland. Community consultation is expected to commence later this year.

Hokianga Ferry (Kohu Ra Tuarua)

Revenue received from ticket sales for January 2020 was $108,092. This is higher than the same month last year ($95,909). Total revenue received for the financial year to date is down by approximately 3%.

A complete repaint of the vessel’s deck has commenced and is planned for completion by the end of April.

Utility Services – CAR (Corridor Access Request) & TMP (Traffic Management Plan)

· Kerikeri and Kaikohe UCG connections still on going.

· Kaitaia UCG connections are ramping up.

· The laying of the main fibre in Kaitaia is now fully complete.

· Ahipara main fibre laying is fully complete.

· Coopers Beach, Mangonui and Taipa main fibre laying is well under way and five crews are now on site.

· Traffic Management has been approved for the construction of two broadband cell towers, one in Whirinaki and one in Herekino. Notification of another Cell Tower on Doves Bay Rd has been received

· TMPs have been received for many events in the Far North

· Bonnets Rd water main CAR and TMP have been approved, and work has started

· TMPs for other temporary water storage facilities have been approved and awaiting instructions as to when these will need to be put in place.

· Waipapa Roundabout construction has now commenced with the installation of the underground services required.

Road Seal Extensions

Seal Extension sites in the below table have been approved by Council to proceed with construction. The unsubsidised roads have progressed with testing and design however the subsidised roads is going through the process of NZTA approval is ongoing with NZTA.

Road Name	Length (m)	Estimated Cost	FNDC Cost share	Fund Source	Contractor
Kumi Road	3,964	$1,803,000	100% = $1,803,000	LTP 2019/20	Fulton Hogan
Porotu Road	1,380	$764,000	100% = $764,000	LTP 2019/20	Broadspectrum
Puketi Road	1,000	$433,000	100% = $433,000	LTP 2019/20	Broadspectrum
Otangaroa Road	203	$109,000	34% = $37,060	NZTA LC-LR	Fulton Hogan
Church Road	1,700	$791,000	34% = $268,940	NZTA LC-LR	Fulton Hogan
Koropewa Road^**)	1,818	$100,000	34% = $34,000	NZTA LC-LR	Broadspectrum
Totals	10,065	$4,000,000.00	$3,340,000

Unsubsidised Seal Extension

· Kumi Road – Enabling works, Drainage (Culvert extensions and renewals incl. Headwalls) complete, Pavement aggregate placed and compacted, 1^st stage of 3-stage 250mm Stabilising (<2% lime/cement) is complete.

· Porotu Road – Road legalisation discussion with the IWI group has commenced, with a formal meeting planned in the coming weeks. The contractors design reports are under review.

· Puketi Road – Enabling works have commenced.

Subsidised Seal Extension

· Otangaroa Road – diversion of log haulage route has seen this road fail funding criteria.

· Church Road – Business case to NZTA delayed for data verification required by NZTA.

· Koropewa Road- Business case to NZTA delayed for data verification required by NZTA.

NB: these three sites are not expected to be physically constructed this Financial Year.

Structures

The following works have been undertaken:

· Otaua Road Bridge N28 – The tender has been awarded to the successful contractor, with physical works programmed to commence later this month.

· West Coast Road Bridge G01 – the contract has been awarded and the contractors has commenced with design of the bridge, the contractors design team have also commenced with the application with Resource Consent application. Due to time constraints with design completion and RC, the physical works will only commence next Financial year.

· Matawherohia Rd Bridge I48 – Road legalization in progress and Design to be further reviewed. This bridge will be designed this Financial year and constructed next financial year.

· Inkster Rd Culvert W35 Replacement – This project has been awarded to the successful contractor and physical works will commence later in March 2020.

· Kenana Rd Culvert E16 Replacement – This project has been awarded to the successful contractor and physical works will commence later in March 2020. .

· Mangamuka Rd Culvert H40 Replacement – This project has been awarded to the successful contractor and physical works will commence later in March 2020.

Pavement Rehabilitation & Associated Improvements:

There is approximately 5.5km Rehabilitation programmed for this financial year, which is distributed into 8 different sites. Sites are as follows:

North

Mangamuka road RP0-1736 – Construction is in progress, the contractor has completed all the earthworks, drainage and associated improvement works prior the year end break. Pavement works are progressing and anticipated to complete Mid-March 2020.

· Broadwood Road RP13350-13780 – The designs works are complete and approved. The contractor has commenced with drainage and other improvement works around the site.

South

Ngawha Springs Road RP2610-3163 – Differed until the development are complete.
Punakitere Loop Road RP0-346 – Physical works are completed. Defects walkover programmed later in the month.
Pungaere Road RP5547-6572 – Construction in Progress and planned to complete by late March 2020.
Purerua Road RP6251-6794 - Investigation and survey works complete. Contractor is working on the design.
Stanners Road RP1580-1720 – construction has been completed.
Waimate North Road RP20-425 - construction has been completed.

Sealed Road Resurfacing

North and South Contract Seal Design and programme confirmed. Sealing in the South region is 95% complete with the pending surfacing to be completed early March 2020. Sealing in for the North Region is 80% complete with the pending surfacing to be completed by mid-March 2020.

Parking

Final preparations are underway to implement district-wide changes to mobility parking spaces as requested by Councils Disability Action Group. These proposed changes are operational in nature and have a dedicated funding allocation, but it was felt appropriate to invite the three Community Boards to review the proposals. The Community Boards have recommended that the proposed changes be implemented. Site specific Engineering assessments have now been completed and the final locations have been established.

Bylaw schedule changes will be required to ensure that the parking restrictions are enforceable, but this is not considered urgent. These schedule changes will be made once all sites have been signed and marked and the full Parking Bylaw review has been undertaken.

Footpaths

Renewals and maintenance work for the 2019/20 FY are prioritised programmed to meet the budget available and as per the condition assessment.

Community Boards agreed to the 2019/20 New Footpaths Programme which commenced in August 2019 with Designs and Safety Reviews. Construction of the new footpaths have commenced and will be completed by May 2020.

Programme Darwin

„ Programme Vision
Vision: Leading best practice enterprise asset management in NZ. Mission: Lifting the understanding and delivery of asset management across the organisation.

„ Status Indicators
Overall	→	Programme overall is on track; however some work is delayed due to staff availability (drought response)
Benefits		Programme benefits articulated and approved
Capability		Work being delivered in-house with INFOR assistance for system implementation as per statement of works
Leadership		Programme meetings with Sponsor scheduled for the year
Budget		On track
Roadmap		Approved and on track, see end of report
Risk		See Top Programme Risks section
„ State of Play
Last Month			Next Month
· Agreement reached on how to approach Enterprise Asset Management roles & responsibilities, using the in-development Projects Register as a way to start the discussion (noting this work needs to be delayed by 3 months now) · Re-scope of programme timeframes given above delay and INFOR system implementation delay · Stakeholder workshop held, however due to lack of availability the planned AM maturity assessment was unable to be completed · INFOR site visit to understand data and how INFOR will integrate with other systems went well and FNDC have a clearer understanding of how system integration will occur · Due to the Programme Manager moving to another position internally, the fixed term Programme Manager (until 30 June 2021) position is being recruited to · Programme Darwin TK2 site developed · Draft asset hierarchy completed			· Culture survey sent to all people leaders to complete, from the Sponsor or CE · Set targets for culture improvement based on these survey results · Review stakeholder engagement plan based on feedback in culture survey · Stakeholder group complete the AM maturity assessment, setting a baseline measurement for which we will look to improve (covers all facets of AM) · Recruitment process for Programme Manager continued · All Asset Management (including Programme Darwin) significant work mapped against LTP timeframes · System stakeholders to approve the asset hierarchy · Commence the ION integration server build

Infrastructure Planning

Stormwater	District Facilities		Wastewater		Water	Transport
Activity	Asset Group	Expected Completion		Comment

Strategies / Plans / Policies
District Transport Strategy		FY19/20		Completed preparation of the first draft of the Integrated Transport Strategy. Project Steering Group IAMS and NTA members are considering whether to continue holding back public consultation originally planned for October 2019 in order to align with release of Far North 2100 Strategy and Spatial Plan or to realign for release concurrently with the Infrastructure Strategy and Plan as part of Long-Term Plan. The Strategic Business Case has been submitted to NZTA and approval is imminent. Development work continues on an Integrated Transport Plan to give effect to the strategy. The project team are working closely with the NTA to ensure programme alignment with the Transport AMP. Draft Option programmes were presented to stakeholders at a Programme Development workshop on 18 February and reported to Elected Members later that day. The importance of the prioritisation task dictated that stakeholder evaluation work be extended up to 26 February. Development of a draft recommended programme is now underway
Rawene WWTP Optioneering		On-going		Staff are working with engineering consultants and Rawene locals to identify options for discharging wastewater to land. The consultants have priced three options and will present these to the community for discussion. The final draft of this work has been completed.
Water Demand Management Plans		TBA		Water Demand Management Plans (WDMP) aim to identify ways a particular scheme can manage demand to limit the need to invest in increased capacity. Parked until BRANZ household water use data is available.
Backflow Prevention Policy		FY19/20		A renewed look at Water Safety Plans (required by Drinking Water Standards) took place in September across Asset, Planning and Operational teams. Backflow prevention policies contribute to this requirement and will be programmed to align with our goals in this space. Vacancies in 3 Waters Planner roles has stalled progress on this project. Recruitment partially complete.
Water and Wastewater Service Area Review		FY19/20		A policy or internal guideline for water and wastewater connections will increase transparency and support consistent decision making when considering requests to connect to the water and wastewater networks around the district. A project to undertake an initial review of FNDC’s water and wastewater service areas has been initiated as a first step to developing a connection policy. The purpose of the review is to is to analyse the nature of the issues affecting the service areas, the cause of these issues and to identify practicable options to address these matters. The review has been placed on hold given resourcing constraints associated with drought management.

Stormwater	District Facilities	Wastewater	Wastewater	Transport
Activity	Asset Group	Expected Completion	Comment
Activity	Asset Group	Expected Completion	Comment
WWTP consent replacement programme		On-going	A programme initiation document has been approved which sets the process by which the replacement resource consent applications will be programme managed. The objective of the programme is to ensure resource consent application project is adequately resourced, prepared in accordance all relevant provisions of the RMA and the best practicable option for each consent application has been determined though the appropriate LGA financial planning process prior to lodgement. An engagement plan for the programme has been developed and a planning and risk assessment is presently being drafted. The programme in running behind schedule due to resourcing limitations associated with secondments to the drought management team.
Paihia Water Strategy			Consultants Harrison Grierson (HG) further refined the assumptions made during the detailed options assessment for a new Water Treatment Plant for Paihia. A preferred option has been identified and we will include this high-level information in our LGA planning processes. The final report by HG concludes the work they were engaged to do using the approved Tourism Infrastructure Funds (TIF) for Paihia. A separate engagement for modelling work using the TIF for Paihia was planned to commence in the first quarter of 2020. However, there are some potential delays with this due to resourcing limitations associated with secondments to the drought management team. Staff are in the process of engaging with MBIE in order to seek an extension to the deadline se out in the TIF funding agreement (present set to June 2020).
Proposed Regional Plan for Northland	All	FY19/20	Working closely with WDC, FNDC has joined six appeals on the Proposed Plan, with a focus on ensuring that it enables public water supply. Mediation with appellants started in early August and is now largely complete. Most of the matters have now been resolved, however it is likely the appeal on the water allocation rules will proceed to Court. WDC and FNDC will be appearing to at court

Activity	Asset Group	Completion / Consent Expiry	Comment
Activity	Asset Group	Completion / Consent Expiry	Comment
Consent Applications/Authorisations
Taipa WWTP Renewal/Appeal		Under Appeal	The Taipa WWTP discharge consent decision was to the Environment Court. Legal counsel has been retained to support the hearing and several technical experts have been engaged to the mediation process and provide evidence at the hearing. Technical work to contribute to the Court evidence is on track. Hui have been held with stakeholders 12 February and 8 March 2020. Both hui were generally positive. A pre-hearing conference was 12 March 2020 with the judge presiding over the appeal. FNDC was directed to report back to the Court in early April on progress of the technical work being undertaken. The judge directed the parties to mediation and it is likely that this will occur in late May - early June in Taipa at one of the local marae. The judge also strongly advised FNDC to ensure that there is an executive level presence at the mediation ideally this would be the CEO.
Kohukohu WWTP Renewal		June 2020	A request for further information has been received from NRC. Work has begun to procure the responses to the request for further information.
Opononi / Omapere WWTP Renewal		Mar 2020	A Cultural Impact Assessment for the discharge of wastewater to the Hokianga Harbour has now commenced. Both the Hydrodynamic Model and the quantitative microbial risk assessment for the discharge have been completed. Staff are in the process of seeking an extension to the submission timeframe for the information request is there remain some outstanding matters that are unlikely to be addressed in time due to resourcing limitations associated with secondments to the drought management team.
Opononi / Omapere New Source – Resource Consent		January 2020	The final consent has been issued with a 35 year consent term
Puketotara surface water take (source for Kerikeri WTP)		June 2020	An application has been lodged with NRC to renew the resource consent for the surface water take from the Puketotara Stream. This application is expected to be approved before April 2020.
Kerikeri Sports Complex Wastewater Renewal		March 2020	The final consent has been issued with a 35 year consent term
Motutangi Drainage District Concession application		June 2020	Draft concession report received from the Department of Conservation (DOC). Final comments on the draft have been forwarded to DOC. DOC has advised that the report will be peer reviewed and then be sent to Kaitaia’s Operations Manager for approval. No update available at the time of writing.
Waitangi - (TIF) Public Toilets		June 2020	An alternative location for the toilets needs to be agreed on by the Waitangi Trust Board. Once the project manager gets approval from the Waitangi Trust Board a planning assessment will be completed. However there may be delays with his due to resourcing limitations associated with secondments to the drought management team.
Okaihau Public Water Supply – Variation to consent to take groundwater from new bore		April 2020	Consultants have been engaged to prepare the application and AEE to take ground water from the new bore. It is anticipated this will be lodged mid-March and issued mid-April.
Kaikohe Public Water Supply – Wairoro Stream Take		-	Preliminary investigation into reducing the minimum flow requirements set by conditions of consent. Anticipate an application being made mid 2020 No update available at the time of writing.

Summary of Abatements
Asset	Asset Type	Non-Compliance	Action Underway
Kerikeri Sports Complex		· Issued Dec 2016 · Breach of discharge consent limit for wastewater discharge amount	No breaches of discharge volume since November 2018. Plumbing repairs, meter calibration and maintenance undertaken. Cancellation of abatement will be requested when the new Compliance Lead has been appointed.
Mangonui Handrail		· Abatement notice issued May 2018 · Erection of a safety rail on the Mangonui boardwalk required	As agreed by NRC, 80m of handrail installed in September 2018 in high risk area. Staff continues to work with the Community Working Group to reach acceptable solution for remainder.
Kaitaia Recovery Centre		· Abatement notice issued Nov 2018 · Stormwater runoff from bins at site may contaminate waterway	Interceptor / oil separator have been installed. Waiting on inspection from NRC and if satisfied a request will be made to cancel notice when the new Compliance Lead is appointed.
Opononi WWTP		· Abatement Notice issued Apr 2016 · Plant evidencing non-compliance with E. Coli limits	Short term: aerator and desludging have improved E. Coli readings, re-fencing of wetland area completed November 2019, wetland refurbishment costs to be input into next LTP. Long term: engagement with the Community Liaison Group continues to try and find an acceptable upgrade solution before next LTP.
Kaitaia WW Network		· Abatement notice issued Apr 2016 · Unconsented network overflows	Screens have been installed at overflow location and programme of work underway to reduce frequency of overflows.
Paihia WWTP		· Abatement Notice issued Oct 2016 · Breaches in ammonia ongoing	Paihia WWTP upgrade project completed.
Russell WWTP		· Abatement notice issued Mar 2017 · Intermittent breaches in E. Coli	Various upgrade work undertaken during 2018/2019, plant compliant for several months however November evidenced non-compliance due to operator error during process upgrade. NRC satisfied with actions taken. Continue monitoring.
Ahipara WWTP		· Abatement notice issued Mar 2018 · Non-compliant leachate volume to pond from Ahipara Landfill.	Pump controller upgraded 2019 however slight exceedances of consent limit have still occurred occasionally. Continue monitoring.
Kaitaia WWTP		· Abatement notice issued Feb 2020 · De-sludging activities by Conhur (contractor) not compliant with consent conditions	Following the issue of the notice NRC monitoring officer met with Conhur and FNW on site to discuss the non-compliance. Conhur subsequently pegged the max sludge height to avoid exceeding the 200mm freeboard. Contractors are now aware of the conditions of consent relating other de-sludging activity. NRC satisfied the compliance issues have been resolved and no further action is required.

3 Waters Operations

Summary

During the month of January there were no LTIs or MTI’s, and we are currently operating with 849 days LTI free.

We have 100% compliant drinking water from our 9 plants. However due to the raw water shortage there are several resource consent compliance breaches, these are being actively managed through a water shortage direction from NRC.

We attended 510 requests for service call outs in January, well above with the seasonal average expected. A significant proportion of this effort is related to attending to water leaks reported by the community, which is expected to continue as the ground dries out and land movement occurs.

Attending to water shortage issues across the network is being prioritised over non-critical maintenance which will be addressed later in the year. Planned Maintenance (PM) completion was 100% for January. Total PMs completed for January was 16. We have a backlog of 12 non-critical PM’s YTD; these will be attended to during February and March

Due to the risk of fire across the district, grounds mowing has been reduced to critical areas only and replaced with spraying where necessary and appropriate.

Final commissioning of the Omanaia water treatment plant has been delayed due to the water shortage and the amount of water necessary to send to waste during the commissioning process.

Smoothy Road Bore stage 1 works are nearing completion under urgency to meet the water shortage requirements for Opononi.

Health and Safety

During January there were no LTIs or MTIs and we are currently 849 days LTI free.

We had one close call in January where a gas detector was triggered as a result of a wind change blowing CO2 from the generator into the manhole. The immediate response was the worker in the manhole was evacuated, the risk reassessed. The gas detector worked as it should, and we are happy with the result.

Customers

The request for service (RFS) total for January was 510, a large increase from the 360 RFS recorded for December, and 398 RFS recorded for January 2019. The significant increase in RFS jobs across the region has seen Kaitaia water with the largest increase. This increase has meant we have had to utilise our projects team for support over an extended period.

An extremely high number of wastewater RFS for Awanui relate to the automated inlet valve on the transfer pump station locking shut, creating back pressure, and setting off alarms. Far North Waters were able to manually lock the inlet valve open and a new valve has been ordered.

Kerikeri is currently considered critical to the Northland water supply and plans are in place to work alongside Keri Irrigation to ensure we have enough spare water during the dry period.

Assets

Planned Maintenance completion attainment was 100% for January. Asset management currently have a total of 12 jobs outstanding, one for flushing, seven for mechanical air valve inspections, and four for laboratory units sent for calibration awaiting return. The flushing Planned Maintenance work will only be done on an as required basis due to the water shortage. The air valve inspections and laboratory unit calibrations are planned for February and March.

District facilities

Parks and Reserves

A site for a temporary flagpole located on the outskirts of the Kerikeri Domain was decided upon in conjunction with the Kerikeri RSA and Community Board in time for ANZAC Day. Fortunately, a flagpole which had recently been removed from the Russell Cemetery due to it being surplus to requirements was available.

Lindvart Park, Kaikohe – recent work to remove a number of trees, resulted in the identification of a field light that posed a risk to the public due to its unstable nature. The light has been decommissioned and removed.

More complaints were received concerning Freedom Campers at Te Haumi, Paihia. In discussion with the Community Board Chair and local hapu it was agreed to install rocks along where vehicles gain access to the foreshore area and park endlessly. We will continue to monitor this and the effect of having rocks stopping vehicular traffic. This will not stop people from enjoying this beautiful location but should stop the ongoing degradation to the area, unnecessary use of the water from the public toilet and rubbish being left lying around etc.

A young family has taken up residence on Parkdale Reserve, Kaitaia stating they have nowhere else to live. District Facilities are working alongside the Council’s Compliance team and local community groups to find suitable accommodation rather than issuing a Trespass Notice.

Further playground equipment was reported missing from Centennial Park Kaitaia. One piece of the missing playground equipment was located in nearby bushes and could be re- installed.

Cemeteries

Due to current water shortages being faced across the District a review on all taps associated with public cemeteries was carried out with some being turned off due to their locations and being excess to need.

Kerikeri Cemetery – water tap

Town Maintenance

District Facilities were involved with organising the installation of ‘Save water now’ informative signage around Kaikohe and Kaitaia.

Water conservation sign installed in Kaikohe

Contractors have been instructed to cease all weed spraying operations due to the current water restrictions and where there is a fire risk (where vegetation growth has dried and in a populated area), to reduce the unnecessary growth by weed eating. This action will save approximately 1000 litres of water per week.

Concerns have been raised with the contractor concerning the channel cleaning operation in Kaikohe and Kaitaia.

Public Toilets

A letter outlining terms and conditions has been received from the Whangaroa Marina in relation to the supply of water to Councils public toilet situated next to the Whangaroa Marina.

The letter will now be reviewed by District Facilities and a decision will be made as to whether or not Council will go into another relationship around the supply of water to a public toilet.

Quite significant repairs were required on the deep well bore pump at the Opito Bay public toilets requiring a Crane to remove the deep well pump from the bore, carry out the required repairs and reinstate the pump.

Kaitiaki Rangers 2019/2020

The 2019/20 TIF Responsible Camping fund has helped employ a number of Kaitiaki Rangers across the Te Hiku ward. This year’s programme continues to prove it is a successful investment in using locals to educate and communicate with visitors.

Solid Waste

Fibre Recycling

Many Councils around the country are experiencing difficulties due to the falling market prices for fibre and cardboard. Our contractors are still able to find markets in New Zealand, however in some parts of the country some councils are stockpiling and may be forced to landfill fibre.

The Ministry of the Environment is aware of the issue and has had several meetings, but there is unlikely to be any quick fixes in the short term.

Taipa Woodwaste trial.

Northland Waste has trialed diverting wood waste as fuel for Golden Bay Cement works. They stockpiled wood waste then shredded it on site to the required specifications. Although wood shredding has been done on site before with no complaints, the type of grinder contracted this time produced a large amount of dust which resulted in some complaints from the public. This trial is unlikely to be repeated due to prohibitive costs but if it is, a more suitable location will need to be found.

Event Waste Management Plans

The review of the event process continues and involves a multi departmental group reviewing and implementing improvements including the need to ensure event organisers provide a waste minimisation plan as part of their event application process. It is a requirement that all event organisers are responsible for their own rubbish and recycling needs and costs.

This review will consider how community clean up requests are better managed.

Kaitaia Refuse Transfer Station Abatement Notice

The oil separator at the Kaitaia Resource Recovery Centre has been installed in response to an abatement notice. NRC was due to inspect this in January – we are still waiting for this to happen. NRC wants similar devices installed at other Refuse Transfer Stations around the District. This work will continue throughout 2020.

Solid Waste Stats for August

Civil Defence Emergency Management

National

· The new National Emergency Management Agency became operational on 1 December 2019. All of the existing functions and staff of the Ministry of Civil Defence and Emergency Management have transferred into the new National Emergency Management Agency.

· The National Emergency Management Agency will assume all of the current responsibilities of the Ministry of Civil Defence and Emergency Management under the Civil Defence Emergency Management Act 2002 and National Civil Defence Emergency Management Plan 2015.

· The third national test of the Emergency Mobile Alerts was carried out on Sunday 24th November. The system has been used a number of times for local emergencies, most recently the Auckland Convention Centre fire.

Regional

· Two half day workshops hosted by the Northland CDEM Group and led by the Ministry of Business, Innovation and Employment (MBIE) have been held to develop a Temporary Accommodation Plan for Northland. District planning staff and Building Services from all three Territorial Local Authorities were invited to participate in the development of this plan.

· The proposal to progress with a project to establish a Multi-Agency Coordination Centre in Northland was supported at the last Coordinating Executive Group (CEG) meeting. Recommendations also included establishing a Project Team to further develop the business case in support of the proposal. It is proposed that the CEG members become the Project Team, with the Project Sponsor being the CEG Chair. Project team members may be required to provide support and input into the project business case at various times. The drafting of and completing the business case in support of the proposal will need to be completed early in the new year (by 1 February) to enable consideration during each of the councils Long Term Plan round. Development of a funding model or proposal will be incorporated into the business case. Consideration of the various options will also be addressed i.e. status quo, new build, re-fit existing building. Building Act implications for such a facility will also be outlined.

· Northland CDEM Group Managers have completed Civil Defence Inductions for Elected Members across all councils. Information included National and Regional arrangements, Service Level Agreements for Shared Services across northlands district councils. Additionally, for the FNDC an overview was given on flood risk reduction work undertaken on river catchments in Kaitaia and Kaeo.

Local

· As part of the Northland CDEM Group Work Plan (Tsunami Risk Management and Preparedness), six more tsunami information boards have been installed in FNDC coastal areas. Communities included in the latest rollout are Russell, Rangiputa and Taipa. Civil Defence Officers are working with the Department of Conservation to place information boards in coastal Department of Conservation campgrounds.

· The tsunami alarm network is starting to move into a renewal phase with some of the alarms starting to come to the end of their life cycle. The life of the alarms due to the conditions in the coastal environment was estimated to be 8-10 years.

· Five staff attended a two day Coordinated Incident Management System Course hosted by the Northland CDEM Group in November.

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	This is a matter of low significance.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	This report complies with the Local Government Act 2002 Schedule 7 Section 28.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	It is the responsibility of each meeting to confirm their minutes therefore the views of another meeting are not relevant.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	There are no implications for Māori in confirming minutes from a previous meeting. Any implications on Māori arising from matters included in meeting minutes should be considered as part of the relevant report.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example, youth, the aged and those with disabilities).	This report is asking for minutes to be confirmed as true and correct record, any interests that affect other people should be considered as part of the individual reports.
State the financial implications and where budgetary provisions have been made to support this decision.	There are no financial implications or the need for budgetary provision arising from this report.
Chief Financial Officer review.	The Chief Financial Officer has not reviewed this report.

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	Low.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Local Government Act 2002 Part 5 S66.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	This report has district wide relevance.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	There are no specific issues that have implications for Māori.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities.	N/A.
State the financial implications and where budgetary provisions have been made to support this decision.	None.
Chief Financial Officer review.	The Chief Financial Officer prepared this report.

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	Low.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Part 5, Sections 55-74, of the Local Government Act 2002 (LGA). Schedule 8, Clauses 1-10, of the Local Government Act 2002 (LGA).
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	The matter has District wide relevance.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	Considered in relation to proposed performance objectives of FNHL.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities.	Not applicable.
State the financial implications and where budgetary provisions have been made to support this decision.	There are no financial implications or the need for budgetary provision arising from this report.
Chief Financial Officer review.	The Chief Financial Officer has prepared this report.

Funding Source	$
Provincial Growth Fund	3,000,000
Lotteries	500,000
Foundation North	1,100,000
NRC/Sport Northland	1,400,000

Total Funding	6,000,000

Compliance requirement	Staff assessment
State the level of significance (high or low) of the issue or proposal as determined by the Council’s Significance and Engagement Policy	There has been considerable community consultation undertaken by the Trust to date. Letters of support have been received from a wide range of entities.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	The Hub will support community wellbeing.
State whether this issue or proposal has a District wide relevance and, if not, the ways in which the appropriate Community Board’s views have been sought.	The Te Hiku Community Board supports the development of the Hub.
State the possible implications for Māori and how Māori have been provided with an opportunity to contribute to decision making if this decision is significant and relates to land and/or any body of water.	Wellbeing benefits will support the whole community, including Māori.
Identify persons likely to be affected by or have an interest in the matter, and how you have given consideration to their views or preferences (for example – youth, the aged and those with disabilities.	See proposed level of service within the report.
State the financial implications and where budgetary provisions have been made to support this decision.	See the financial implications section in the body of the report.
Chief Financial Officer review.	The Chief Financial Officer prepared this report.

Key Work Plan Areas:

CEO Office

Welcome to the latest summary report of Council activities

Infrastructure and Asset Management

Programme Darwin

Infrastructure Planning

3 Waters Operations

FUNDING PROVIDER	AMOUNT	AVAILABLE FROM	CONDITIONS
Provincial Growth Fund	$3,000,000	From 1 December 2019. Progress payments have already commenced ($300k in December 2019 held in trust)	Payments based on key milestones being achieved. Any publicity requires pre-approval.
Lotteries (DIA)	$500,000	Drawdown 1: $250,000; 22/5/2020. Drawdown 2: $250,000; 20/11/2020.	Payments subject to reporting schedule / key milestones.
Foundation North	$1,100,000	ASAP	Funds to be directed towards building construction.
Northland Regional Council	$1,400,000	May 2020	To deliver as per concept plan.
TOTAL FUNDS APPROVED	$6,000,000

ACCOUNT	BALANCE	PURPOSE	CAVEAT/ACCOUNT BRIEF
Working account	$4,848.47	Operational funding	$2,000 for BMX track design
Buy a Brick	$16,157.79	General Design / Construction	Assist with general facility construction
Exercise Stations	$1,446.92	Exercise Stations	Funds raised separately for exercise stations around trim track
Solicitors Trust	$345,000.00	General Design / Construction	PGF Funding held in trust (GST Incl)