Agenda of Strategy and Policy Committee Meeting

	Authorising Body	Mayor/Council
	Status	Standing Committee
COUNCIL COMMITTEE	Title	Strategy and Policy Committee Terms of Reference
	Approval Date	19 December 2019
	Responsible Officer	Chief Executive

Purpose

The purpose of the Strategy and Policy Committee (the Committee) is to set direction for the district, determine specific outcomes that need to be met to deliver on that vision, and set in place the strategies, policies and work programmes to achieve those goals.

In determining and shaping the strategies, policies and work programme of the Council, the Committee takes a holistic approach to ensure there is strong alignment between the objectives and work programmes of the strategic outcomes of Council, being:

· Better data and information

· Affordable core infrastructure

· Improved Council capabilities and performance

· Address affordability

· Civic leadership and advocacy

· Empowering communities

The Committee will review the effectiveness of the following aspects:

· Trust and confidence in decision-making by keeping our communities informed and involved in decision-making;

· Operational performance including strategy and policy development, monitoring and reporting on significant projects, including, but not limited to:

o FN2100

o District wide strategies (Infrastructure/ Reserves/Climate Change/Transport)

o District Plan

o Significant projects (not infrastructure)

o Financial Strategy

o Data Governance

o Affordability

· Consultation and engagement including submissions to external bodies / organisations

To perform his or her role effectively, each Committee member must develop and maintain

his or her skills and knowledge, including an understanding of the Committee’s responsibilities, and of the Council’s business, operations and risks.

Power to Delegate

The Strategy and Policy Committee may not delegate any of its responsibilities, duties or powers.

Membership

The Council will determine the membership of the Strategy and Policy Committee.

The Strategy and Policy Committee will comprise of at least seven elected members (one of which

will be the chairperson).

Mayor Carter

Rachel Smith – Chairperson

David Clendon – Deputy Chairperson

Moko Tepania

Ann Court

Felicity Foy

Dave Collard

John Vujcich

Belinda Ward – Bay of Islands-Whangaroa Community Board

Non-appointed councillors may attend meetings with speaking rights, but not voting rights.

Quorum

The quorum at a meeting of the Strategy and Policy Committee is 5 members.

Frequency of Meetings

The Strategy and Policy Committee shall meet every 6 weeks, but may be cancelled if there is no business.

Committees Responsibilities

The Committees responsibilities are described below:

Strategy and Policy Development

· Oversee the Strategic Planning and Policy work programme

· Develop and agree strategy and policy for consultation / engagement;

· Recommend to Council strategy and policy for adoption;

· Monitor and review strategy and policy.

Service levels (non regulatory)

· Recommend service level changes and new initiatives to the Long Term and Annual Plan processes.

Policies and Bylaws

· Leading the development and review of Council's policies and district bylaws when and as directed by Council

· Recommend to Council new or amended bylaws for adoption

Consultation and Engagement

· Conduct any consultation processes required on issues before the Committee;

· Act as a community interface (with, as required, the relevant Community Board(s)) for consultation on policies and as a forum for engaging effectively;

· Receive reports from Council’s Portfolio and Working Parties and monitor engagement;

· Review as necessary and agree the model for Portfolios and Working Parties.

Strategic Relationships

· Oversee Council’s strategic relationships, including with Māori, the Crown and foreign investors, particularly China

· Oversee, develop and approve engagement opportunities triggered by the provisions of Mana Whakahono-ā-Rohe under the Resource Management Act 1991

· Recommend to Council the adoption of new Memoranda of Understanding (MOU)

· Meet annually with local MOU partners

· Quarterly reviewing operation of all Memoranda of Understanding

· Quarterly reviewing Council’s relationships with iwi, hapū, and post-settlement governance entities in the Far North District

· Monitor Sister City relationships

· Special projects (such as Te Pū o Te Wheke or water storage projects)

Submissions and Remits

· Approve submissions to, and endorse remits for, external bodies / organisations and on legislation and regulatory proposals, provided that:

o If there is insufficient time for the matter to be determined by the Committee before the submission “close date” the submission can be agreed by the relevant Portfolio Leaders, Chair of the Strategy and Policy Committee, Mayor and Chief Executive (all Councillors must be advised of the submission and provided copies if requested).

o If the submission is of a technical and operational nature, the submission can be approved by the Chief Executive (in consultation with the relevant Portfolio Leader prior to lodging the submission).

· Oversee, develop and approve any relevant remits triggered by governance or management commencing in January of each calendar year.

· Recommend to Council those remits that meet Council’s legislative, strategic and operational objectives to enable voting at the LGNZ AGM. All endorsements will take into account the views of our communities (where possible) and consider the unique attributes of the district.

Fees

· Set fees in accordance with legislative requirements unless the fees are set under a bylaw (in which case the decision is retained by Council and the committee has the power of recommendation) or set as part of the Long Term Plan or Annual Plan (in which case the decision will be considered by the Long Term Plan and Annual Plan and approved by Council).

District Plan

· Review and approve for notification a proposed District Plan, a proposed change to the District Plan, or a variation to a proposed plan or proposed plan change (excluding any plan change notified under clause 25(2)(a), First Schedule of the Resource Management Act 1991);

· Withdraw a proposed plan or plan change under clause 8D, First Schedule of the Resource Management Act 1991;

· Make the following decisions to facilitate the administration of proposed plan, plan changes, variations, designation and heritage order processes:

§ To authorise the resolution of appeals on a proposed plan, plan change or variation unless the issue is minor and approved by the Portfolio Leader District Plan and the Chair of the Regulatory committee.

§ To decide whether a decision of a Requiring Authority or Heritage Protection Authority will be appealed to the Environment Court by council and authorise the resolution of any such appeal.

§ To consider and approve council submissions on a proposed plan, plan changes, and variations.

§ To manage the private plan change process.

§ To accept, adopt or reject private plan change applications under clause 25 First Schedule Resource Management Act (RMA).

Rules and Procedures

Council’s Standing Orders and Code of Conduct apply to all the committee’s meetings.

Annual reporting

The Chair of the Committee will submit a written report to the Chief Executive on an annual basis. The review will summarise the activities of the Committee and how it has contributed to the Council’s governance and strategic objectives. The Chief Executive will place the report on the next available agenda of the governing body.

STRATEGY AND POLICY COMMITTEE - MEMBERS REGISTER OF INTERESTS

Name	Responsibility (i.e. Chairperson etc)	Declaration of Interests	Nature of Potential Interest	Member's Proposed Management Plan
Hon John Carter QSO	Board Member of the Local Government Protection Programme	Board Member of the Local Government Protection Program
Hon John Carter QSO	Carter Family Trust
Rachel Smith (Chair)	Friends of Rolands Wood Charitable Trust	Trustee
	Mid North Family Support	Trustee
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member and Treasurer
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
David Clendon (Deputy Chair)	Chairperson – He Waka Eke Noa Charitable Trust	None		Declare if any issue arises
	Member of Vision Kerikeri	None		Declare if any issue arises
	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
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.
Felicity Foy	Flick Family Trust Ltd	I am the director of this company that is the company trustee of Flick Family Trust that owns properties in 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 dwellings on Church Road, Kaingaroa and dwellings on Allen Bell Drive, Kaitaia, and 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.
	112 Commerce Street Holdings Ltd	Owner of commercial property in Commerce Street Kaitaia.
	Foy Property Management Ltd	Owner of company that manages properties owned by Foy Farms Rentals and Flick Family Trust.
	Previous employment at FNDC 2007-16	I consider the staff members at FNDC to be my friends
	Shareholder of Coastline Plumbing NZ Limited
Felicity Foy - Partner	Director of Coastline Plumbing NZ Limited
Felicity Foy - Partner	Friends with some FNDC employees
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
Belinda Ward	Ward Jarvis Family Trust	Trustee
	Kenneth Jarvis Family Trust	Trustee
	Residence in Watea
Belinda Ward (Partner)	Ward Jarvis Family Trust	Trustee and beneficiary
	Kenneth Jarvis Family Trust	Trustee and beneficiary
	Residence in Watea	Trustee

Strategy and Policy Committee Meeting Agenda

9 February 2021

MINUTES OF Far North District Council
Strategy and Policy Committee Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Tuesday, 1 December 2020 AT 9.39 am

PRESENT: Cr Rachel Smith (via TEAMS), Cr David Clendon, Deputy Mayor Ann Court, Cr Dave Collard, Cr Felicity Foy (via TEAMS), Cr Moko Tepania, Cr John Vujcich, Cr Kelly Stratford, Bay of Islands-Whangaroa Community Board Belinda Ward (via TEAMS)

IN ATTENDANCE:

STAFF PRESENT: Shaun Clarke (Chief Executive Officer), Andy Finch (General Manager Infrastructure and Asset Management), Dean Myburgh (General Manager District Services), William J Taylor, MBE (General Manager Corporate Services), Sheryl Gavin (General Manager Strategic Planning and Policy - Acting)

1 Karakia Timatanga – Opening Prayer

Councillor Smith opened the meeting with a Karakia.

The meeting was adjourned from 9.40 am to 9.52 am due to technical issues.

Motion

Committee Resolution 2020/21

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

That the Strategy and Policy Committee agree that Deputy Chair Clendon chair the meeting due the physical absence of Councillor Smith.

Carried

2 Apologies and Declarations of Interest

Committee Resolution 2020/22

Moved: Cr David Clendon

Seconded: Cr Dave Collard

That apologies from Mayor John Carter be received and accepted.

Carried

3 Deputation

Nil

4 Confirmation of Previous Minutes

4.1 Confirmation of Previous Minutes

Agenda item 4.1 document number A3001273, pages 14 - 19 refers.

Committee Resolution 2020/23

Moved: Cr David Clendon

Seconded: Cr John Vujcich

That the Strategy and Policy Committee agrees that the minutes of the meeting held 20 October 2020 be confirmed as a true and correct record.

Carried

5 Reports

5.1 Draft Significance and Engagement Policy 2020

Agenda item 5.1 document number A2995853, pages 20 - 35 refers.

Committee Resolution 2020/24

Moved: Cr David Clendon

Seconded: Cr Dave Collard

That the Strategy and Policy Committee:

a) approve the draft Significance and Engagement Policy 2020 for audit

b) delegate authority to the General Manager Strategy and Policy to make non-material edits to the Policy as required, with the agreement of the Committee Chair prior to the beginning of the Audit process.

Carried

5.2 Joint Local Authority Climate Change Committee - Agreement and Appointment of Members

Agenda item 5.2 document number A2992651, pages 36 - 50 refers.

Committee Resolution 2020/25

Moved: Cr David Clendon

Seconded: Cr Moko Tepania

The Strategy and Policy Committee

a) revokes the decision made at the Committee meeting on 30 July 2020 (resolution 2020/2)

4.1 Joint Climate Change Adaptation Governance Committee

Agenda item 4.1 document number A2905655, pages 14 - 22 refers.

Committee Resolution 2020/1

Moved: Cr Rachel Smith

Seconded: Cr John Vujcich

That the Strategy and Policy Committee:

a) approve the forming of a Joint Climate Change Adaptation Governance Committee with one tangata whenua representative from each of the four Councils that are contained in the Northland Region, these being Northland Regional Council, Whangarei District Council, Kaipara District Council and Far North District Council and that; and

b) approve that Councillor Clendon as the climate change portfolio holder, Councillor Stratford as an alternative, to be appointed as the Far North District Council elected member representative on the proposed Joint Climate Change Adaptation Governance Committee and that;

c) approve that Te Kahu O Taonui be asked to nominate a representative and an alternate as tangata whenua representation on the proposed Joint Climate Change Adaptation Governance Committee and that;

d) approve the development of a policy for the remuneration of non-elected members to committees of Council.

Carried

The Strategy and Policy Committee recommends Council

b) agrees, under clause 30A(1) of Schedule 7 of the Local Government Act 2002, with the Northland Regional Council, Whangārei District Council and Kaipara District Council to appoint a joint committee called the Joint Climate Change Adaptation Committee as specified in the Terms of Reference (A2994705), subject to the Terms of Reference being amended by:

· replacing, in the Membership section, the words “nominated”, “nomination” and “nominate” with the words “appointed”, “appointment” and “appoint” respectively

· replacing, in the Committee Chair and Deputy Chair section, the words “elected from” with the words “appointed by”

· replacing, in the Remuneration section, the words “non-elected members remuneration policy of that Council” with “the Northland Regional Council Appointed Members’ Allowances Policy”.

c) appoints Councillor Clendon as the Far North District Council elected member on the Joint Climate Change Adaptation Committee.

d) appoints Councillor Stratford as the Far North District Council alternative elected member on the Joint Climate Change Adaptation Committee.

e) request His Worship the Mayor and Cr Clendon to invite Te Kahu o Taonui to nominate two people with skills, attributes, or knowledge that will assist the work of the Joint Climate Change Adaptation Committee to be the Far North District Council iwi/hapū member and alternative iwi/hapū member of the Committee.

Carried

resolution 2020/26

Moved: Deputy Mayor Ann Court

Seconded: Cr John Vujcich

That the Strategy and Policy Committee

a) recommend to Council that a policy for the rummuneration of non-elected members for committees of Council be developed.

b) request that the policy is not inconsistent with other Northland Councils remuneration policies for Joint Regional committees.

CARRIED

5.3 Consultation on Draft District Plan

Agenda item 5.3 document number A3000902, pages 51 - 55 refers.

Committee Resolution 2020/27

Moved: Cr David Clendon

Seconded: Cr John Vujcich

That the Strategy and Policy Committee

a) endorse the approach to include “Significant Natural Areas” in the consultation process on the draft District Plan and FN2100.

b) request a workshop be scheduled early in the new year to provide Elected Members insight into the detail of the documents prior to consultation.

Carried

At 11:14 am, Bay of Islands-Whangaroa Community Board Belinda Ward left the meeting.

6 Karakia Whakamutunga – Closing Prayer

Councillor Tepania closed the meeting with a Karakia

7 Meeting Close

The meeting closed at 11.28 am.

The minutes of this meeting will be confirmed at the Strategy and Policy Committee Meeting to be held on 09 February 2021.

...................................................

CHAIRPERSON

Strategy and Policy Committee Meeting Agenda

9 February 2021

5 Reports

5.1 Options Report Treated Water Supply Regulation

File Number: A3042053

Author: Donald Sheppard, Strategic Planner

Authoriser: Sheryl Gavin, Manager - Corporate Planning & Community Development

Purpose of the Report

To provide options and a recommendation to Council for the regulation of treated water supply in the Far North District.

Executive Summary

· This report identifies seven problems relating to the treated water supply network in the Far North:

1. being able to preventatively apply water restrictions, for example due to an emerging drought

2. having the ability to still charge customers if water supply is interrupted, shut off, quality is poor or if water use is restricted

3. being able to manage the amount of water supplied to customers

4. being able to estimate water use if a meter is faulty or being repaired

5. avoiding potential contamination of the water supply by members of the public

6. avoiding damage to council’s assets by the public (particularly damage to water mains)

7. preventing misuse of the water supply, for example by people wasting water.

· The report assesses three options to address the problem:

1. do nothing – allow the current bylaw to revoke

2. develop a new supply contract

3. make a new bylaw.

· The report recommends that the governing body approves option 3 - make a new bylaw to regulate water supply.

Recommendation

That the Strategy and Policy Committee recommend to Council, under section 155 of the Local Government Act 2002:

a) agrees that making a new Treated Water Supply Bylaw is the most appropriate way to regulate reticulated water supply in the Far North District;

b) requests that staff prepare a statement of proposal to make a new Treated Water Supply Bylaw.

1) Background

From Far North District Council’s (FNDC’s) 2018/19 Annual Report, around one-third of properties in the Far North (10,133 properties) are connected to water services and all these properties have water meters. In the 2019 financial year, $10.1 million in water rates was collected from these properties.

These water services are now regulated by FNDC’s Water Supply Bylaw 2009, which was due for review on 16 October 2019. As this review did not occur, the Bylaw will revoke on 16 October 2021. To avoid not having a bylaw to regulate water supply, a new bylaw needs to be made before 16 October 2021.

Water supply reforms were announced by Central Government in July 2020. These reforms make it likely that the Council will lose its water management role to a super-regional entity with shared ownership by local authorities including FNDC. When this occurs, the proposed regulation could be superseded by shared rules established by this entity and agreed by FNDC. However, the new entity will not commence operation until after July 2022. Therefore, FNDC needs to proceed with its own water supply regulation in the interim period.

2) Discussion and Options

Proposed course of action

Make a new bylaw to regulate treated water supply in the Far North District.

Issue and problem definition

From analysing logged interactions with the public regarding the supply of treated water, key problems include:

1. being able to preventatively apply water restrictions, for example due to an emerging drought

2. having the ability to still charge customers if water supply is interrupted, shut off, quality is poor or if water use is restricted, for example, due to a drought

3. being able to manage the amount of water supplied by determining the level of water supplied to a property

4. being able to estimate water use If a meter is faulty or being repaired

5. avoiding potential contamination of the water supply by members of the public, which could make it unsafe to drink or use

6. avoiding damage to council’s assets by the public (particularly damage to water mains)

7. preventing misuse of the water supply, for example by people wasting water.

Scope

The regulation of water supply applies to all eight water supply schemes owned by council. It applies to all users of water supplied by these schemes including property owners/occupiers and operators of bulk water supply businesses.

It does not extend to private water schemes, which are regulated by national legislation.

Affected and interested parties

These parties include:

· All those supplied with reticulated water from Far North District Council’s water schemes

· Commercial suppliers of bulk water

· Relevant tradespeople such as plumbers and drainlayers

· Property developers and building companies

· Community groups concerned about the supply of water to their community

· Northern Regional Council

· The District Health Board

· Far North Water – our partner in the delivery of treated water.

If elected members decide that a new bylaw will be made, these parties will be defined in greater detail in a communication and engagement plan.

Māori

Wai, or water, is regarded as a taonga of significant importance to Māori. Therefore, effective management of wai is considered essential by Māori. Consultation on new regulation in this area, if any, will require input from Iwi.

Objectives

1) To fairly and efficiently manage water supply in the district

2) To ensure public health and safety

3) To protect Council’s assets

4) To protect the public from nuisance

5) To protect the water supply from misuse.

Relevant bylaw-making powers of the Council

To address the objectives, a new treated water supply bylaw could be made under:

· section 145 of the Local Government Act 2002 (general bylaw-making powers) to protect, promote and maintain public health and safety and/or to protect the public from nuisance

· section 146 of the Local Government Act 2002 (specific bylaw-making powers), to

manage, regulate against, or protect from, damage, misuse, or loss, or to prevent the use of, the land, structures, or infrastructure associated with water supply.

Under section 155 of the Local Government Act 2002, before making a bylaw the Council must first determine that a bylaw is the most appropriate way of addressing the perceived problem.

Relevant water supply legislation

Given the national importance of a safe and reliable water supply, there are at least fourteen Acts of Parliament as well as eight national standards, guidance documents and codes which govern the supply of treated water.

a) Legislation Regulating the Council

Much of this legislation includes mandatory obligations for territorial authorities such as Far North District Council. These obligations are set out in:

· the Local Government Act 2002

· the Local Government Rating Act 2020

· the New Zealand Building Code

· the Fire and Emergency Act 2017

· the Health Act 1956

· the Resource Management Act 1991.

Some of these obligations do not directly apply to the public but set out what the Council must do. For example, under the Health Act 1956, FNDC must prepare a water safety plan for each water scheme and review it at least every five years, ensure that drinking water complies with drinking water standards and test back-flow protection devices annually.

Other Council obligations are broader and more directly affect the public. For example, under the Health Act 1956, FNDC has a duty to protect and promote public health and must take reasonable steps to protect water supply from contamination or pollution. As public activity may contaminate or pollute the water supply, the Council must ensure that this does not occur.

b) Legislation Directly Regulating Public Activity

National legislation also directly regulates public activity in several areas, for example:

· Wasting water is an offence under sections 192 and 224 of the Local Government Act 2002

· The Building Act 2004 and the associated Building Code sets standards for plumbing within buildings including connections to the water supply. Section 152 of the Local Government Act 2002 says that no bylaw can be made that covers matters regulated under the Building Act

· The ability to restrict water for non-payment of water bills is covered in section 69S of the Health Act 1956

· Section 69ZZZ of the Health Act 1956 covers the installation of backflow devices

· Protection of catchment areas is covered by Sections 224 and 228 of the Local Government Act 2002, section 69ZZO of the Health Act 1956, and section 15 of the Resource Management Act 1991

· Section 228 of the Local Government Act 2002 makes it an offence to take water without a proper permit

· Section 19 of the Local Government (Ratings) Act 2002 allows the council to charge for water at a targeted rate

· It is an offence to tamper with water meters under section 224 of the Local Government (Ratings) Act 2002

· Enforcing water restrictions is covered under section 193 of the Local Government Act 2002, sections 69S and 69T of the Health Act 1956, sections 329 and 330(1) of the Resource Management Act 1991 and section 25 of the Civil Defence Emergency Management Act 2002.

Local regulation is not necessary in the above areas as these areas are covered by this national legislation.

Gaps in the legislation where local regulation is appropriate

While national legislation covers many aspects of water supply, there are some areas not covered by this legislation where local regulation is appropriate, including:

· terms and conditions of supply, for example, covering:

o ordinary and extraordinary supply

o the size of service delivered to properties

o applications for supply, disconnection and change of use

o connections to the system

o permits for supply

o the use of fire hydrants and standpipes

o placement of connections, meters and stop taps

o meters

o fees and charges.

· restrictions on supply for example, when a drought scenario appears likely

· ensuring public health and safety e.g.

o prevention of contamination

o fittings and connections to be in good repair

o inspection of connections and meters.

Options

1. Do nothing – allow the current bylaw to revoke

This option relies on public goodwill in that most people will want to do the right thing. However, without rules spelling out what the right approach involves, this is likely to result in an ambiguous situation for both the public and for staff, where sorting out any issues relating to the supply of water to properties from the Council’s water supply network may become difficult.

While existing national legislation does cover a range of areas relating to water supply, there are significant gaps in this legislation (described above) where local regulation would be appropriate.

Allowing the current Bylaw to revoke would mean that the Council would have no powers of enforcement, which may compromise its ability to address health and supply risks in a timely and cost-effective manner.

For the reasons above, this option is not recommended.

2. Develop a supply contract

An alternative to a bylaw is a supply contract with customers for the supply of water from the Council’s network. A local government example of this is the customer contract used by Watercare in Auckland.

A contract of this nature would have some advantages:

· it would be legally binding

· enforcement of a contract can be simpler than enforcing a bylaw as it would involve a one-on-one agreement between the Council and the customer, rather than district-wide rules that are set out in a bylaw.

However, there are several disadvantages with this option:

· not all problems and objectives associated with the supply of water identified in this report can be covered in the terms and conditions of a supply agreement or contract with each customer and therefore a bylaw will still be necessary. For instance, provisions regarding not digging or excavating near water mains would not be included in a contract. Note that the supply of water in Auckland is regulated by a bylaw made by Auckland Council and administered via a contract from Watercare with each customer

· changing to a contract would pose logistical issues such as getting around 10,000 existing customers to sign the contract

· this new approach is likely to be time-consuming to introduce, meaning that the existing bylaw is likely to revoke before a contract regime is put in place.

This option is not recommended as staff consider the disadvantages identified above outweigh the advantages of introducing individual supply agreements or contracts with customers for the supply of water.

3. Make a new bylaw

With this option, Council would make a new bylaw to regulate water supply. Benefits of making a bylaw include:

· it would back up other options such as public education

· it would be legally binding

· it would include enforcement provisions to ensure compliance

· it would set District-wide rules which would be applicable to all users

· it is the status quo approach which would not pose logistical challenges to introduce and would not require a communication and compliance campaign to move around 10,000 properties to individual contracts.

For these reasons, a new bylaw is recommended as the most appropriate approach to water supply regulation.

Summary of the three options

1. Do nothing – allow the current bylaw to revoke

2. Make a new supply contract

3. Make a new bylaw

Advantages

Public education is appropriate for the majority who want to do the right thing

Existing national legislation covers many areas relating to water supply

Legally binding

Will clearly spell out the terms and conditions of treated water supply

In some cases, could be simpler to apply than a bylaw as it involves a one-on-one contract with the customer

Legally binding

Would back up public education and existing national legislation

Can include provisions beyond the terms and conditions of supply in Option Two

Will include enforcement provisions

It is the status quo approach with no need to sign up existing customers (as in Option Two)

Alignment with the approach of other local councils in the super-regional area under the proposed water reforms

Disadvantages

No powers of enforcement

There are gaps in the national legislation where local rules are needed

Logistical issues to sign up existing customers

Limited to terms and conditions of supply applying to individual customers

Likely to be time consuming to introduce

Inability to have individual contracts as in Option Two

3) Financial Implications and Budgetary Provision

The cost of preparing a proposal to make a new treated water supply bylaw and then consulting on that bylaw will be met from existing operational budgets.

Attachments

Nil

Compliance schedule:

Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular:

1. A Local authority must, in the course of the decision-making process,

a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and

b) Assess the options in terms of their advantages and disadvantages; and

c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga.

2. This section is subject to Section 79 - Compliance with procedures in relation to decisions.

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	As there is a high degree of public interest across the entire district regarding the supply of water from the Council’s reticulated network the recommendation contained in this paper meets the Council’s significance threshold.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	The recommendation in this report directly applies to section 145 and 146 of the Local Government Act 2020 and references sections 152, 192, 193, 224, 228 of the same Act. As part of the legal review of relevant legislation that is applicable to supply of water the following legislation has also been referenced; · The Building Act 2004 · The Health Act 1956 · The Resource Management Act 1991 · Sections 19 and 224 of the Local Government (Ratings) Act 2002 · The Civil Defence Emergency Management Act 2002.
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.	As there is reticulated water supply in all of wards of the District the recommendation in this paper 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.	The recommendation in this report will be of importance to Māori, considering water’s status as taonga. Seeking the views and input of Iwi in the development of a new bylaw (if recommendation is endorsed) is integral. Discussion between Council and Iwi is yet to commence.
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).	Affected and interested parties are described in the body of this report.
State the financial implications and where budgetary provisions have been made to support this decision.	The cost of preparing a proposal to make a new water supply bylaw and then consulting on that bylaw will be met from existing operational budgets.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

Strategy and Policy Committee Meeting Agenda

9 February 2021

6 Information Reports

6.1 Briefing Paper On-Site Water Storage February 2021

File Number: A3038395

Author: Donald Sheppard, Strategic Planner

Authoriser: William J Taylor MBE, General Manager - Strategic Planning and Policy (Acting)

Purpose of the Report

To update the elected members on the work being done to assess the potential for on-site water storage, such as rainwater tanks, as a solution to improving the resilience of public water supply schemes. This report covers previous and current Far North District Council (FNDC) projects and the current stance of other local authorities.

Executive Summary

· Elected members and members of the public have suggested that on-site water storage could be a solution to improving the resilience of the district’s water supply schemes that supplies both residential and commercial properties. This largely refers to harvesting of rainwater in water tanks but could include on-site storage of treated water

· This report provides a summary of an initial review of what other Councils are doing in regards to the onsite collection and storage of water, what the Far North District has done in recent years in response to previous requests to investigate on-site water storage across the District and then provides an update on how staff are responding to and progressing with a request for an in-depth, definitive report on this topic .

Recommendation

That the Strategy and Policy Committee receive the report Briefing Paper On-Site Water Storage February 2021.

Background

The local problem

At least nine severe droughts have occurred in Northland from 1900 to 2020, increasing in frequency after 1994. Since 2010, according to the New Zealand Drought Monitor, extremely dry periods or droughts occurred in the Far North in 2010, 2011, 2013, 2017 and 2020.

The risk of insufficient drinking water supplies was determined at the 5 July 2020 Council meeting as one of the current top organisational risks that Council currently has. The risk is described as follows:

Unless effective mitigations are put in place, it is likely that current water supply issues will become worse, as the frequency, intensity, and duration of droughts in Northland are forecast to increase in the coming years.

The national problem

Water supply is also a national issue and the national climate change risk assessment (August 2020) gave the risk to potable water supplies the highest consequence and urgency rating. According to the Ministry for the Environment, risk to potable water supply is one of ten climate change risks that "require urgent action in the next six years to reduce their impacts". Nationally, urgent action is required to mitigate what is predicted to be a major risk by 2050 and an extreme risk by 2100. Therefore, ensuring reliable water supply is likely to be a key focus area in the national climate change adaptation plan (due 2022) where the government is expected to make recommendations for improvement.

Discussion and Next Steps

What are other councils doing in this area?

Stuff NZ published an article in August 2020 on local councils’ attitudes to rainwater storage tanks connected to private homes/buildings to supplement the supply of treated water. Stuff conducted a survey of 66 local councils and identified only five were actively promoting rainwater capture in residential zones where reticulated water is provided. Another 21 councils (32%) were supportive, while 62% were neutral.

The actions of councils that are supportive or actively promoting on-site rainwater storage are described below.

Types of on-site storage promoted by other local councils

A small number of councils (e.g. Kāpiti District Council, Gore District Council and Auckland Council) financially support rainwater collection for non-potable use only (e.g. outdoor use and toilet flushing) by providing loans for residents to install tanks.

At least eight councils in the lower North Island are actively promoting rainwater collection for emergency use. This involves partnering with a New Zealand water tank manufacturer, The Tank Guy, to make a 200-litre water tank and kit available for $105 (RRP $265). These tanks can either collect rainwater or store treated water for an emergency and are offered at this cost price by Wellington City Council, Hutt City Council, Porirua City Council, Kapiti Coast District Council, Carterton District Council, Palmerston North City Council, South Wairarapa District Council and Horowhenua District Council.

Reasons why other councils are for or against on-site water storage

The Stuff NZ article identified several reasons for the attitudes of the local authorities:

Reasons for being negative

Reasons for being positive

· Rainwater can contaminate treated water. This means that potable treated water and non-potable water should be separated or the rainwater should be filtered and treated on-site

· It is difficult to ensure that untreated rainwater is not used as a potable source

· Looking at the total cost (borne by local council and/or property owners, storage of rainwater is not a cost-effective solution compared with developing existing water supply systems

· Water tanks run dry in drought periods

· The cost involved in running a pump from a rainwater storage tank

· The carbon footprint of rainwater systems is higher than treated water

· Council metered water rates will increase if demand for reticulated water supply reduces due to onsite rainwater collection, as the fixed costs must continue to be covered for the network.

· Rainwater used for outdoor purposes (washing cars or boats and watering the garden or lawn) can potentially relieve pressure on reticulated water supply

· Rainwater can be stored for an emergency

· There may be environmental issues with developing water infrastructure. For example, in West Auckland, plans to build a new water treatment plant met opposition because it required clearing native bush.

Whangarei District Council Briefing Paper

A briefing paper was submitted to Whangarei District Council (WDC) on 12 November 2020 to examine the case for rainwater tanks supplementing the water supply. The conclusions of that paper are summarised below.

For Whangarei, using 5m3 rainwater tanks for non-potable uses to supplement the town supply would be of limited benefit for the following reasons:

· Rainwater tanks installed at 13,000 properties would provide only a very small additional storage capacity equating to less than three days summer usage by Whangārei. Because of this small additional storage, their use will not avert the need for investment in raw supply and water treatment to meet the demands of population growth

· Even if on-site rainwater storage increases, it will not reduce the cost of infrastructure required by WDC in the future. These findings are supported by a GNS report for the Wellington Region which concluded that… “installation of rainwater tanks for non-potable uses (toilet flushing and outdoor usage) would be unlikely to make a significant contribution to reducing demand in Wellington City during dry summers; and furthermore would be difficult to justify on economic grounds as installation costs greatly outweigh savings in water charges”

· The development costs of tapping new water sources and extending the capacity of the current treatment plant to meet Whangārei’s future needs ($30 million) would be far less than on-site rainwater storage ($90 million)

· Over the lifetime of a water tank, the cost of water per cubic metre is estimated to be 4 times more expensive than that provided via the water network

· Similarly, the cost of power to run a water tank pump is 4 times more expensive than the cost of pumping reticulated water

· Rainwater collection has a negative environmental impact. An Environmental Agency UK report found that on average rainwater systems had a carbon footprint 1.4 times greater than mains water supply.

Current Initiatives to Address Water Resilience in the Far North

Several initiatives are already underway or planned to address the district-wide problem of water supply resilience during drought. For example:

· Increasing raw water capture e.g. from a second bore at Monument Hill to supply the Kaikohe scheme and from a bore at Sweetwater to supply the Kaitaia scheme

· Increasing water storage for the Kaikohe scheme via a 750,000 cubic-metre water reservoir to be built with Provincial Growth Funding primarily to support horticulture, but also to act as a back-up water source for Kaikohe

· Building a new water treatment plant and storage tanks at Omanaia

· Detecting and repairing leaks, with the Kaitaia and Paihia water schemes identified as the worst for water loss. The priority is the Kaitaia scheme.

Past Initiatives to Investigate On-Site Water Storage in the Far North

Over the last decade the use of on-site water storage to provide greater water supply resilience has been investigated. However, no resolution has been made to support this approach across the district. Examples of previous initiatives are summarised as follows.

1. 2014 Engagement with hapū in the South Hokianga

In 2014 a series of hui regarding water supply were held with hapū in the South Hokianga. A common theme raised by hapū is that they have a very strong mana whenua relationship with their rivers. The hapū were concerned that water is needlessly wasted through leaks and poor management processes. They stated that people are now relying on rivers without first utilising the resource they already receive by harvesting rainwater and on-site storage. See the attached report to the Infrastructure Committee on 25 February 2015.

2. 2015 South Hokianga Water Tanks Options Assessment

In 2014, FNDC considered initiatives relating to improving water security and supply for the communities of Opononi, Omapere, and Rawene. Alongside investigating a new groundwater source (the Smoothy Road bore), options were investigated to use on-site water tanks to supplement water supply during periods of low stream flow. A report by Morphum Environmental Ltd on this topic was provided to FNDC in May 2015 (attached).

Rather than recommending the use of on-site water storage, elected members adopted a recommendation at its 8 October 2015 meeting to undertake exploratory drilling at Smoothy Road to investigate the presence of ground water in this area. This bore was successful, and the Smoothy Road bore is now in the final stages of completion. Given the success of this bore, the role of water tanks in the South Hokianga is not currently being developed or promoted.

3. 2015 Resolution for Administration to Develop Strategies to Better Manage Water Shortages

At the October 2015 meeting, Council also adopted a recommendation that administration should work on developing water supply and water management strategies to better manage water shortages. Staff advised at the time that initiatives were being developed involving water conservation, education and the role of water tanks.

4. 2015 Investment Logic Mapping Workshop – Decision Making for Water

Alongside the South Hokianga water tanks investigation, an Investment Logic Mapping (ILM) workshop was held in late 2015 attended by FNDC staff and elected members. The purpose of the workshop was to gain a full understanding of the benefits and issues of on-site water storage. In preparing for this workshop a wider scope was developed, to attempt to define the problem(s) regarding water supply.

The ILM process defined and weighted the benefits of addressing identified problems, as follows:

· More cost-effective and efficient sources (40%)

· Improved Maori, stakeholder confidence and satisfaction (40%)

· Improved source reliability, quality, availability (20%)

A copy of the ILM workshop summary document is attached.

5. 2016 Te Kao Water Supply (Tanks) Assessment

Water tanks were identified as a preferred solution for a failing community water supply scheme at Te Kao.

In 2016 FNDC staff helped the community of Te Kao investigate options to improve the safety of water being supplied to the community by a private water supplier. Through a working group, FNDC staff helped community members come to a decision (by way of community ballot), that on-site water tanks were the preferred option.

The on-site storage option was included in the 2018-28 LTP consultation process. This consultation focused on identifying preferred, affordable funding options for the Te Kao community. In the final 2018-28 LTP, FNDC confirmed its decision to support Te Kao’s community preference for rainwater harvesting, with the cost of implementation to be borne by residents. Council agreed that staff would consult with affected residents on providing interest free loans to those who wished to take up the offer. To date, this option has not been implemented in the community because of the costs involved.

Ongoing Water Conservation Education Initiatives

The Communications Team has actively communicated with the public about water issues including creating posters and media releases. Since May 2019 there have been 41 media releases concerning water.

The Communications Plan – Water includes communication strategies about water shortages, water supply and water projects to improve the water resilience of Far North towns and surrounding areas. This Plan incorporates a number of initiatives for the district (both new and ongoing) regarding water conservation education; for example issuing Save Water This Summer posters, and Save Water Now signs; and installing existing Save Water Now billboards to inform affected communities about relevant water restrictions. These billboards refer to the bewaterwise.org.nz website, where a range of water conservation measures are recommended.

Follow-Up In-Depth Report with Recommendations

The proposed in-depth report will analyse the problem of water supply resilience in more depth and provide a recommended course of action. The report will:

· Outline the requirement for council to provide water from a wellbeing perspective

· Discuss alternative levels of service delivery, including a recommended minimum level

· Analyse the current and future ability of our eight water supply schemes to supply treated water in periods of drought at the recommended minimum level of service. This will be informed by a demand forecasting study to be conducted by Staff, assisted by Morphum Environmental NZ

· Describe the advantages and disadvantages of possible supply solutions, such as sourcing raw water, building reservoirs and dams, increasing leak detection and repair work, water conservation measures and demand management approaches (e.g. imposing water restrictions and/or increasing the price of treated water) alongside on-site water storage

· Make recommendations regarding the preferred solution/s for each water scheme

· Provide indicative costs for these solutions and discuss how the Council could encourage more on-site water storage if this is a preferred solution.

NB. Preparing this report will be outside current planned resources and therefore scheduling this work will need to be discussed and prioritised.

Financial Implications and Budgetary Provision

To be assessed in the following in-depth report.

Attachments

1. Investment Logic Map - FNDC Water Supplies v2.0a 2015 - A3041995 ⇩

2. Morphum South Hokianga Water Tanks Options Assessment 2015 - A3041996 ⇩

3. NIWA NZ Drought Index results Dec 2020 - A3041997 ⇩