Agenda of Ordinary Council Meeting - Thursday, 24 June 2021

Ordinary Council Meeting Agenda

24 June 2021

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
	District Licensing	N/A	N/A	N/A
	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	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.
	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 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
	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member
	Vision Kerikeri	Financial Member
Rachel Smith (Partner)	Property Owner	Kerikeri
	Friends who work at Far North District Council
	Kerikeri Cruising Club	Subscription Member and Treasurer
	Vision Kerikeri	Financial Member
	Town and General Groundcare Limited	Director, Shareholder
Kelly Stratford	KS Bookkeeping and Administration	Business Owner, provides book keeping, administration and development of environmental 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
	Māori 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
	Taumarere Counselling Services	Advisory Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	Sport Northland	Board Member	May be perceived conflicts	Should conflict arise, step aside from voting
	He Puna Aroha Putea Whakapapa	Trustee	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	Kawakawa Returned Services Association	Member	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	Whangaroa Returned Services Association	Member	May be perceived conflicts	Should conflict arise, step aside from voting should they apply for funds
	National Emergency Management Advisor Committee	Member		Case by case basis
	Te Rūnanga ā Iwi o Ngāpuhi	Tribal affiliate member	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 should there appear to be one
	Te Rūnanga ā Iwi o Ngāti Hine	Tribal affiliate member	Could have a perceived conflict of interest	Declare a perceived conflict should I determine there is a conflict
	Kawakawa Business and Community Association	Member		Will declare a perceived conflict should there appear to be one
Kelly Stratford - Partner	Chef and Barista	Opua Store	None perceived
Kelly Stratford - Partner	Māori 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

Ordinary Council Meeting Agenda

24 June 2021

MINUTES OF Far North District Council
Ordinary Council Meeting
HELD AT THE Council Chamber, Memorial Avenue, Kaikohe
ON Thursday, 13 May 2021 AT 10.00 am

PRESENT: Mayor John Carter (HWTM), Deputy Mayor Ann Court, Cr David Clendon, Cr Dave Collard, Cr Felicity Foy, Cr Mate Radich, Cr Rachel Smith, Cr Kelly Stratford, Cr Moko Tepania, Cr John Vujcich

IN ATTENDANCE: Emma Davis (Kaikohe-Hokianga Community Board Deputy Chairperson), Adele Gardner (Te Hiku Community Board Chairperson), Belinda Ward (Bay of Islands-Whangaroa Community Board)

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 Strategic Planning and Policy - Acting), Jacine Warmington (General Manager - Corporate Services - Acting)

1 Karakia Timatanga – Opening Prayer

His Worship the Mayor commenced the meeting with the Council prayer.

2 NGā WHAKAPāHA ME NGā PāNGA MEMA / Apologies and Declarations of Interest

Nil

3 Deputation

Nil.

4 NGĀ KŌRERO A TE KOROMATUA / MAYORAL ANNOUNCEMENTS

Taituarā award presentation to Far North District Council Staff that contributed to the Nothing But Net Intiative. Ana Mules accepted the award on behalf of all staff involved including: Sheryl Gavin, Catherine Langford, Matt McCambridge, Bill Lee, Helen Cumming, Damon Campbell, Tanya Reid, Rob Cottrell, Guy du Toit, Thomas van Dalen, Roxanne Harrison and Sarah Benikowsky.

5 Reports

5.1 Confirmation of capital programme amendments for the 2021-2031 Long Term Plan

Agenda item 5.1 document number A3183651, pages 12 - 18 refers.

motion

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

That Council:

a) approve the following capital budget adjustments as detailed in the report and attachment:

i. the addition of $975,000 in 2021-22 for new projects previously not identified for the 2021-2031 Long Term Plan and further amendments to budgets from 2022-23 to 2026-27;

ii. the addition of $1.2m in 2021-22 for the Mid North Water project (MN10) that relates specifically to the water agreement for Kaikohe water resilience.

iii. the reforecast of budgets totalling $7,759,985 from 2020-21 to 2021-22 to 2023-24 for projects that will not now be completed in the current financial year;

iv. the movement of $2,495,080 for existing projects in the 2021-2031 Long Term Plan that now need to be re-timed

v. the movement of $2,937,389 from 2020-21 to 2021-22 for the Council committed funding for PGF and externally supported projects; and

vi. the movement of $17,411,238 from 2020-21 to 2021-22 for the externally funded portion of the PGF and externally supported projects; and

vii. the addition of capital budgets for the Kaitaia Airport of $577,316 in 2021/22 and $1,129,370 in 2022/23.

Amendment

Moved: Cr David Clendon

Seconded: Cr Kelly Stratford

iv. that the $1.4m allocated for Ratcliffs Bay in existing projects be reduced to $500,000

and that the budget available for Rangitane be removed.

In Favour: Crs David Clendon, Mate Radic, Rachel Smith, Kelly Stratford and Moko Tepania

Against: Mayor John Carter, Deputy Mayor Ann Court, Crs Dave Collard, Felicity Foy and John Vujcich

LOST

Amendment

Moved: Cr Moko Tepania

Seconded: Cr John Vujcich

viii. to re-time the Kaikohe Civic Hub project in the capital programme for the 2021-2031

Long Term Plan from years 1 to 3 to years 2 to 4 leaving a $50k provision in year 1.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

The amendment became the substantive motion.

RESOLUTION 2021/16

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

That Council:

a) approve the following capital budget adjustments as detailed in the report and attachment:

i. the addition of $975,000 in 2021-22 for new projects previously not identified for the 2021-2031 Long Term Plan and further amendments to budgets from 2022-23 to 2026-27; and

ii. the addition of $1.2m in 2021-22 for the Mid North Water project (MN10) that relates specifically to the water agreement for Kaikohe water resilience; and

iii. the reforecast of budgets totalling $7,759,985 from 2020-21 to 2021-22 to 2023-24 for projects that will not now be completed in the current financial year; and

iv. the movement of $495,080 for existing projects in the 2021-2031 Long Term Plan that now need to be re-timed; and

v. the movement of $2,937,389 from 2020-21 to 2021-22 for the Council committed funding for PGF and externally supported projects; and

vi. the movement of $17,411,238 from 2020-21 to 2021-22 for the externally funded portion of the PGF and externally supported projects; and

vii. the addition of capital budgets for the Kaitaia Airport of $577,316 in 2021/22 and $1,129,370 in 2022/23; and

viii. to re-time the Kaikohe Civic Hub project in the capital programme for the 2021-2031 Long Term Plan from years 1 to 3 to years 2 to 4 leaving a $50k provision in year 1.

CARRIED

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

Note: Elected Members request a report be presented to the Infrastructure Committee on the Kaitaia Airport which provides a copy of the signed lease and details on the planned capital expenditure costs.

5.2 Long Term Plan 2021-31 Deliberations

Agenda item 5.2 document number A3123105, pages 19 - 69 refers.

motion

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

1. Key issues

1.1 Housing for the Elderly

1.1a) That Council instructs the Chief Executive Officer to commence the process of identifying one or more Community Housing Providers to purchase Far North District Council’s Housing for the Elderly assets.

At 11:16 am, Deputy Mayor Ann Court left the meeting. At 11:17 am, Deputy Mayor Ann Court returned to the meeting.

Amendment

Moved: Cr John Vujcich

Seconded: Cr Moko Tepania

1. Key issues

1.1a) That Council instructs the Chief Executive Officer to commence the process of identifying one or more providers that would enable the best option for partially or fully divesting Far North District Council’s Housing for the Elderly assets; and that,

i. The Chief Executive Office report back to Council (including next steps); and that,

ii. with strict requirements to protect existing tenant arrangements, and maintain or increase the number of units and level of service available in the District, over time.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich Rachel Smith, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court and Cr Kelly Stratford

carried

The amendment became the substantive motion.

RESOLUTION 2021/17

Moved: Cr John Vujcich

Seconded: Cr Moko Tepania

i. The Chief Executive Office report back to Council (including next steps); and that,

ii. with strict requirements to protect existing tenant arrangements, and maintain or increase the number of units and level of service available in the District, over time.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court and Cr Kelly Stratford

carried

RESOLUTION 2021/18

Moved: Mayor John Carter

Seconded: Cr Kelly Stratford

1.2 Enable sustainable economic development

1.2a) That Council agrees to become an equal shareholder in Northland Inc (resulting in Northland Inc becoming a Council Controlled Organisation of Far North District Council), subject to:

- committing to financial contributions of $82,000 in year one to $500,000 in year 10 of the 2021-2031 Long Term Plan

- Kaipara District Council confirming their equal shareholding and funding commitment

- Northland Regional Council and Kaipara District Council confirming their equal shareholding.

1.2b) That Council requests the Chief Executive Officer implement all necessary steps to enact the decision above so that it is effective from 1 July 2021, the start of the financial year.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford and John Vujcich

Against: Crs Mate Radich, Moko Tepania

carried

Motion

Moved: Mayor John Carter

Seconded: Cr John Vujcich

1.3 Fairer and simpler rates

1.3a) That Council transition to calculating the general rate on land value to capital value in 10% annual increments over the next 10 years.

In Favour: Deputy Mayor Ann Court, Crs Felicity Foy, Kelly Stratford, Moko Tepania and John Vujcich

Against: Mayor John Carter, Crs David Clendon, Dave Collard, Mate Radich and Rachel Smith

LOST

1.3b) That Council retains the Uniform Annual General Charge.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford and John Vujcich

Against: Cr Moko Tepania

carried

1.3c) That Council retains the current roading Uniform Annual General Charge and differentials.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

1.3d) That Council retains the commercial differential at 2.75.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Moko Tepania and John Vujcich

Against: Cr Kelly Stratford

carried

1.3e) That Council retains the scheme-based targeted rating of water and wastewater.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Kelly Stratford and John Vujcich

Against: Deputy Mayor Ann Court, Crs Rachel Smith and Moko Tepania

carried

1.3f) That Council retains the current availability rate for water and wastewater connections at 100%.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford and John Vujcich

Against: Crs David Clendon, Mate Radich and Moko Tepania

carried

1.3g) That Council increases the targeted rate for stormwater so that 90% of urban stormwater costs are levied on urban ratepayers based on capital value and the remainder funded through the general rate.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Moko Tepania and John Vujcich

Against: Crs Mate Radich, Kelly Stratford

Abstained: Cr Rachel Smith

carried

~~1.3h)~~ ~~That~~ ~~Council~~ ~~removes~~ ~~SUIPs~~ ~~for~~ ~~the~~ ~~charging~~ of ~~Uniform~~ ~~Annual~~ ~~General~~ ~~Charges~~ ~~and~~ ~~retains~~ ~~SUIPs~~ ~~for~~ ~~charging~~ ~~the~~ ~~ward~~ ~~rate and small targeted rates for up to five years, then~~ ~~removing~~ ~~SUIPs~~ ~~altogether.~~

NOTE: 1.3h was removed due to 1.3a being carried.

Amendment

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

1.3i) That Council further investigates its rating system, including introduction of differentials.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court

carried

At 12:01 pm, Cr Kelly Stratford left the meeting. At 12:04 pm, Cr Kelly Stratford returned to the meeting.

Amendment

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

1.3j) That Council introduces a public good charge of $15 per rateable property for water and $15 per rateable property for wastewater.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs Felicity Foy, Rachel Smith, Kelly Stratford and Moko Tepania

Against: Crs David Clendon, Dave Collard, Mate Radich and John Vujcich

carried

The amendments became the substantive motion.

RESOLUTION 2021/19

Moved: Mayor John Carter

Seconded: Cr John Vujcich

1.3 Fairer and simpler rates

1.3a) That Council retains the Uniform Annual General Charge.

1.3b) That Council retains the current roading Uniform Annual General Charge and differentials.

1.3c) That Council retains the commercial differential at 2.75.

1.3d) That Council retains the scheme-based targeted rating of water and wastewater.

1.3e) That Council retains the current availability rate for water and wastewater connections at 100%

1.3f) That Council increases the targeted rate for stormwater so that 90% of urban stormwater costs are levied on urban ratepayers based on capital value and the remainder funded through the general rate.

1.3g) That Council further investigates its rating system, including introduction of differentials.

1.3h) That Council introduces a public good charge of $15 per rateable property for water and $15 per rateable property for wastewater.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

At 12:01 pm, Cr Kelly Stratford left the meeting. At 12:04 pm, Cr Kelly Stratford returned to the meeting.

The meeting was adjourned from 12.30 pm to 1.00 pm.

resolution 2021/20

Moved: Mayor John Carter

Seconded: Cr Mate Radich

2. Other items consulted on

2.1 Fees and charges

2.1a) That Council adopts the schedule of fees and charges for 2021/22 proposed.

2.1b) That Council delegate the CEO authority to make any final minor edits to the fees and charges prior to publication.

2.2 Rating policies

2.2a) That Council adopt the amended Rate Relief Policies, including the amendments to R21/01, R21/02 and the revocation of R21/03 following the enactment of the Rating of Whenua Māori Amendment Bill.

2.3 Significance and Engagement Policy

2.3a) That Council adopts the Significance and Engagement policy with the following amendment:

Section 9 Matters of Significance, criteria for items ‘Of specific interest to Maori’ threshold to read:

The proposal has a major and long-term impact on the wellbeing of iwi/hapū/whanau and their culture and traditions with their ancestral land, water, sites, wāhi tapu, valued flora and fauna, and other taonga.

2.3b) That Council delegate the CEO authority to make any final minor edits to the policy prior to its publication.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

Motion

Moved: Mayor John Carter

Seconded: Cr John Vujcich

3. Roading and footpaths

3.1 Kerikeri road network

3.1a) That Council note the submissions but that no change be made to the 2021-2031 Long Term Plan.

Amendment

Moved: Cr Rachel Smith

Seconded: Deputy Mayor Ann Court

3.1a) That Council requests the CEO, in accordance with previous resolutions of Council, provide a report to the Infrastructure Committee, in the first quarter of the 2021/22 financial year, on options to deliver the Kerikeri Central Business District bypass within the first 3 years of the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Cr Mate Radich

carried

Amendment

Moved: Cr David Clendon

Seconded: Cr Kelly Stratford

And that Council note the submissions, responds positively to community submissions, and as a matter of urgency bring forward investment into the Kerikeri road network including development of infrastructure supporting active transport modes.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford and Moko Tepania

Against: Crs Mate Radich and John Vujcich

carried

Amendment

Moved: Cr Rachel Smith

Seconded: Cr John Vujcich

3.2 Footpaths and Walkways

3.2a) That Council requests the Northland Transport Alliance work with the Kaikohe-Hokianga Community Board to undertake an investigation into pedestrian road safety in Rawene.

Note: subject to Waka Kotahi (New Zealand Transport Agency) deliberations.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

3.3 Road sealing, dust control and unsealed road maintenance

3.3a) That Council notes the submissions but that no change be made to the 2021-2031 Long Term Plan.

3.4 Twin Coast Cycle Trail

3.4a) That Council amends the budget for community pump tracks adjacent to Pou Herenga Tai to $61,500 in 2021/22 and $61,500 in 2022/23.

3.4b) That Council removes the $100,000 allocated for pipe removal from the capital programme at this time and reconsiders it alongside any extension planned for cycle trail work in the future.

3.4c) That Council approves diverting funding for the Imms Road Bridge cycle trail project to the upgrades and safety lighting for the Kaikohe rail tunnel.

3.4d) That Council reviews future investment in cycle trails for the District and retains the current timing of the $14.6 million provided in the 2021-2031 Long Term Plan.

3.5 Other roading issues

3.5a) That Council notes these submissions but makes no change to the 2021-2031 Long Term Plan.

AMENDMENT

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

3.5a) That Council notes these submissions and request an update report to the Infrastructure committee in the 2021/22 financial year on the potential alternatives to the use of glyphosate and other toxic sprays on road reserves; and that,

3.5b) $30,000 for the maintenance of the full length of the Ahipara seawall be added in year 1.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court

carried

The amendments became the substantive motion.

RESOLUTION 2021/21

Moved: Mayor John Carter

Seconded: Cr John Vujcich

3. Roading and footpaths

3.1a) That Council:

i) request the CEO, in accordance with previous resolutions of Council, provide a report to the Infrastructure committee in the first quarter of the 2021/22 financial year, on options to deliver the Kerikeri Central Business District bypass within the first 3 years of the 2021-2031 Long Term Plan; and that,

ii) note the submissions, responds positively to community submissions, and as a matter of urgency bring forward investment into the Kerikeri road network including development of infrastructure supporting active transport modes.

3.2a) That Council requests the Northland Transport Alliance work with the Kaikohe-Hokianga Community Board to undertake an investigation into pedestrian road safety in Rawene.

3.2b) That Council notes the submissions but that no change be made to the 2021-2031 Long Term Plan 2021-2031.

Note: subject to Waka Kotahi (New Zealand Transport Agency) deliberations.

3.3 Road sealing, dust control and unsealed road maintenance

3.3a) That Council notes the submissions but that no change be made to the 2021-2031 Long Term Plan.

3.4 Twin Coast Cycle Trail

3.4a) That Council amends the budget for community pump tracks adjacent to Pou Herenga Tai to $61,500 in 2021/22 and $61,500 in 2022/23.

3.4b) That Council removes the $100,000 allocated for pipe removal from the capital programme at this time and reconsiders it alongside any extension planned for cycle trail work in the future.

3.4c) That Council approves diverting funding for the Imms Road Bridge cycle trail project to the upgrades and safety lighting for the Kaikohe rail tunnel.

3.4d) That Council reviews future investment in cycle trails for the District and retains the current timing of the $14.6 million provided in the 2021-2031 Long Term Plan.

Note: Moving forward we have clear timelines and fair and equitable distribution of funding for the North.

3.5 Other roading issues

3.5) That Council:

i) notes these submissions and request an update report to the Infrastructure committee in the 2021/22 financial year on the potential alternatives to the use of glyphosate and other toxic sprays on road reserves; and that,

ii) $30,000 for the maintenance of the full length of the Ahipara seawall be added in year 1.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

Motion

Moved: Mayor John Carter

Seconded: Cr John Vujcich

4. Water supply

4.1 General water

4.1a) That Council note the submissions but that not change be made to the 2021-2031 Long Term Plan.

Amendment

Moved: Cr Moko Tepania

Seconded: Cr Kelly Stratford

4.1a) That Council note the submissions and commit to increasing public communications empowering water tank installation on private property by private owners.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

The amendment became the substantive motion.

RESOLUTION 2021/22

Moved: Cr Moko Tepania

Seconded: Cr Kelly Stratford

4.1a) That Council note the submissions and commit to increasing public communications empowering water tank installation on private property by private owners.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

Motion

Moved: Cr Rachel Smith

Seconded: Mayor John Carter

5. Wastewater

5.1 General wastewater

5.1a) That Council note the submissions and continue to investigate wastewater and water infrastructure options for the Waipapa area in alignment with the Kerikeri/Waipapa Structure Plan, and report findings to the Infrastructure committee in the first 3 years of the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith and Moko Tepania

Against: Crs Kelly Stratford and John Vujcich

carried

Amendment

Moved: Cr Felicity Foy

Seconded: Mayor John Carter

That Council add $75,000 per annum to years 1 and 2 2021-2031 Long Term Plan to resource investigating water and waste water infrastructure options in the Waipapa area as per resolution 5.1a).

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy and Rachel Smith

Against: Crs Kelly Stratford and John Vujcich

Abstained: Crs Mate Radich and Moko Tepania

carried

The amendment became the substantive motion.

RESOLUTION 2021/23

Moved: Cr Rachel Smith

Seconded: Mayor John Carter

5. Wastewater

5.1 General wastewater

5.1b) That Council add $75,000 per annum to years 1 and 2 2021-2031 Long Term Plan to resource investigating water and waste water infrastructure options in the Waipapa area as per resolution 5.1a).

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy and Rachel Smith

Against: Crs Kelly Stratford and John Vujcich

Abstained: Crs Mate Radich and Moko Tepania

carried

RESOLUTION 2021/24

Moved: Cr Kelly Stratford

Seconded: Mayor John Carter

6 Solid Waste Management

6.1 General solid waste management

6.1a) That Council notes the submissions but makes no change to the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Mate Radich, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

At 2:42 pm, Cr Mate Radich left the meeting.

RESOLUTION 2021/25

Moved: Mayor John Carter

Seconded: Cr Kelly Stratford

7. District Facilities

7.1 Sporting facilities

7.1a) That Council notes the submissions but makes no change to the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

motion

Moved: Mayor John Carter

Seconded: Cr John Vujcich

7.2 Broadwood Swing Bridge

7.2a) That Council engage with the Broadwood community to review their design and costings for a repairs/replacement bridge and help them to secure funding for the project.

Amendment

Moved: Cr Moko Tepania

Seconded: Cr John Vujcich

That $100,000 be retained for the Broadwood Swing Bridge.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

The amendment became the substantive motion.

RESOLUTION 2021/26

Moved: Cr Moko Tepania

Seconded: Cr John Vujcich

7.2 Broadwood Swing Bridge

7.2a) That Council:

i) engage with the Broadwood community to review their design and costings for a repairs/replacement bridge and help them to secure funding for the project; and that,

ii) retain $100,000 for the Broadwood Swing Bridge.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

AMENDMENT

Moved: Cr Felicity Foy

Seconded: Cr Dave Collard

7.3 Public toilets

That $200k for toilets be included in year 3 of the 2021-2031 Long Term Plan to avoid adverse environmental effects from high tourism activities and high use. The funding and location of the toilets at Ahipara shall be agreed to with Department of Conservation and local mana whenua.

At 3:08 pm, Cr Rachel Smith left the meeting. At 3:11 pm, Cr Rachel Smith returned to the meeting.

In Favour: Mayor John Carter, Crs Dave Collard, Felicity Foy and Moko Tepania

Against: Deputy Mayor Ann Court, Crs David Clendon, Kelly Stratford and John Vujcich

Abstained: Cr Rachel Smith

The Mayor used casting vote in favour.

carried

The amendment became the substantive motion.

RESOLUTION 2021/27

7.3 Public toilets

7.3a) That Council

i. notes the submissions; and that,

ii. $200k for Ahipara toilets be included in year 3 of the 2021-2031 Long Term Plan to avoid adverse environmental effects from high tourism activities and high use. The funding and location of the toilets at Ahipara shall be agreed to with Department of Conservation and local mana whenua.

In Favour: Mayor John Carter, Crs Dave Collard, Felicity Foy and Moko Tepania

Against: Deputy Mayors Ann Court, Crs David Clendon, Kelly Stratford and John Vujcich

Abstained: Cr Rachel Smith

The Mayor used casting vote in favour.

carried

RESOLUTION 2021/28

Moved: Mayor John Carter

Seconded: Cr Felicity Foy

7.4 General District Facilities

7.4a) That Council approves the re-timing of funding for the Opononi War Memorial Hall from years four and five to years one and two of the 2021-2031 Long Term Plan.

7.4b) That Council notes all other submissions but makes no change to the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

The meeting was adjourned from 3.12 pm to 3.25 pm.

amendment

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

7.5 Far North Holdings Limited

7.5a) That Council approve the following capital works amendments:

- Taipa seawall $90,000 in year two of the 2021-2031 Long Term Plan

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court and Cr Kelly Stratford

carried

- Waipapa Landing carpark additional funding of $110,000 in year two of the 2021-2031 Long Term Plan

In Favour: Mayor John Carter, Crs David Clendon and Felicity Foy

Against: Deputy Mayor Ann Court, Crs Dave Collard, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

LOST

- Pukenui carpark retiming of $381,000 in year two of the 2021-2031 Long Term Plan to year one of the 2021-2031 Long Term Plan

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court and Cr Kelly Stratford

CARRIED

- Rangitane maritime additional funding of $157,500 in year one of the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter

Against: Deputy Mayor Ann Court, Crs Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Abstained: Crs David Clendon, Dave Collard and Felicity Foy

lost

The amendments became the substantive motion.

RESOLUTION 2021/29

Moved: Mayor John Carter

Seconded: Deputy Mayor Ann Court

7.5 Far North Holdings Limited

7.5a) That Council approve the following capital works amendments:

- Taipa seawall $90,000 in year two of the 2021-2031 Long Term Plan

- Pukenui carpark retiming of $381,000 in year two of the 2021-2031 Long Term Plan to year one of the 2021-2031 Long Term Plan

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

MOTION

Moved: Mayor John Carter

Seconded: Cr John Vujcich

8. Community Boards

8.1 Te Hiku

8.1a) That Council notes the submission from the Te Hiku Community Board and commits to continued collaboration towards achieving the aspirations of the Board.

Amendment

Moved: Cr Felicity Foy

Seconded: Mayor John Carter

That a $15,000 allocation be made in year one of the 2021-2031 Long Term Plan for the Mangonui Information Centre.

In Favour: Mayor John Carter, Crs Dave Collard, Felicity Foy, Kelly Stratford and Moko Tepania

Against: Deputy Mayor Ann Court, Crs David Clendon, Rachel Smith and John Vujcich

carried

8.2 Bay of Islands-Whangaroa

8.2a) That Council notes the submission from the Bay of Islands-Whangaroa Community Board and commits to continued collaboration towards achieving the aspirations of the Board.

In Favour: Mayor John Carter, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court

carried

The amendment became the substantive motion.

RESOLUTION 2021/30

Moved: Mayor John Carter

Seconded: Cr John Vujcich

8. Community Boards

8.1 Te Hiku

8.1a) That Council:

i. notes the submission from the Te Hiku Community Board and commits to continued collaboration towards achieving the aspirations of the Board; and that,

ii. an allocation of $15,000 be made in year one of the 2021-2031 Long Term Plan for the Mangonui Information Centre.

8.2 Bay of Islands-Whangaroa

8.2a) That Council notes the submission from the Bay of Islands-Whangaroa Community Board and commits to continued collaboration towards achieving the aspirations of the Board.

In Favour: Mayor John Carter, Crs Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court

Abstained: Cr David Clendon

carried

Meeting Duration 2021/31

Moved: Mayor John Carter

Seconded: Cr Kelly Stratford

That Council agrees that the meeting continue beyond the six hour duration in Standing Order 4.2 - Meeting Duration, to discuss the remaining items left on the agenda.

carried

motion

Moved: Cr Kelly Stratford

Seconded: Cr Moko Tepania

9. District Services

That Council include $400,000 per year for years 1,2 and 3 of the 2021-2031 Long Term Plan capital programme to address the renewals and investment in the Far North Tsunami network.

In Favour: Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Mayor John Carter and Deputy Mayor Ann Court

carried

9.1 Dog control and amenities

9.1a) That Council note the submissions but that no change be made to the 2021-2031 Long Term Plan.

The amendment became the substantive motion.

RESOLUTION 2021/32

Moved: Cr Kelly Stratford

Seconded: Cr Moko Tepania

9. District Services

9.1 Far North Tsunami Network

9.1a) That Council include $400,000 per year for years 1, 2 and 3 of the 2021-2031 Long Term Plan capital programme to address the renewals and investment in the Far North Tsunami network.

9.2 Dog control and amenities

9.2a) That Council note the submissions but that no change be made to the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

resolution 2021/33

Moved: Cr Rachel Smith

Seconded: Cr Kelly Stratford

10. Strategic Planning & Policy

10.1 General Strategic Planning & Policy

10.1a) That Council note the submissions and commit to reviewing the policy and establishing charges to give effect to the Far North District Council Development Contributions policy, to be consulted on through a 2021-2031 Long Term Plan amendment in year 1 of the 2021-2031 Long Term Plan.

At 4:11 pm, Mayor John Carter left the meeting and Deputy Mayor took the Chair.

In Favour: Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Deputy Mayor Ann Court

carried

RESOLUTION 2021/34

Moved: Deputy Mayor Ann Court

Seconded: Cr Rachel Smith

10.2 Funding requests

10.2a) That Council approve an operating grant for the Turner Centre of $50,000 in year one of the 2021-2031 Long Term Plan.

Note: An amendment was withdrawn.

At 4:18 pm, Cr Kelly Stratford left the meeting. At 4:21 pm, Cr Kelly Stratford returned to the meeting.

At 4:23 pm, Mayor John Carter returned to the meeting and resumed as the Chair.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

RESOLUTION 2021/35

Moved: Cr Felicity Foy

Seconded: Cr Dave Collard

10.2 Funding requests

10.2b) That Council approve an operating grant for the Te Ahu Charitable Trust of $50,000 in year one of the 2021-2031 Long Term Plan.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

RESOLUTION 2021/36

Moved: Mayor John Carter

Seconded: Cr Felicity Foy

10.2 Funding requests

10.2c) That Council instruct the Chief Executive to commence the development of a Community Operational Funding Policy and Framework within the next calendar year.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

RESOLUTION 2021/37

Moved: Cr Moko Tepania

Seconded: Cr John Vujcich

11. Corrections and updates

11.1 Okaihau Playcentre

11.1a) That Council acknowledges that work will continue to identify a legal solution to enable a new use to clear the site and enter into a new lease with a new user.

11.1b) That a report on findings and possible solutions is presented to the Kaikohe/Hokianga Community Board once potential solutions have been identified.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

RESOLUTION 2021/38

Moved: Cr Felicity Foy

Seconded: Cr Moko Tepania

11.2 Funding for land disposal consents

11.2 That Council approve the addition of $330k to the operational budget for wastewater in year 1 of the 2021-2031 Long Term Plan to enable staff to review the options for disposal to land for Kaikohe and Kaitaia.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

RESOLUTION 2021/39

Moved: Cr Felicity Foy

Seconded: Cr John Vujcich

11.3 Amendments as a result of Whenua Māori rating changes

11.3 That Council acknowledge the amendments made to the rating base and operational budgets in response to the changes to the Local Government (Rating) Act 2002 arising from the Rating of Whenua Māori Amendment Bill.

At 5:09 Pm, Cr Kelly Stratford left the meeting.

11.4 Budget requirement for Māori participation

11.4a) That Council approve $50,000 in year one of the 2021-2031 Long Term Plan to enable the operationalisation of the resolutions to establish Māori wards and enable Māori participation in Council committees and Community Boards.

At 5:12 pm, Cr Kelly Stratford returned to the meeting.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

carried

Motion

Resolution 2021/40

Moved: Mayor John Carter

Seconded: Cr Ann Court

That Council request the Chief Executive Officcer prepare a report by the end of July2021 outlining the capacity to deliver on the capital programme and strategies identified in the resolution passed at deliberations 13 May 2021.

In Favour: Mayor John Carter, Deputy Mayor Ann Court, Crs David Clendon, Dave Collard, Felicity Foy, Rachel Smith, Kelly Stratford, Moko Tepania and John Vujcich

Against: Nil

Carried

Councillors acknowledged staff for their hard work during deliberations and the extensive amount of work that has been undertaken on the Long Term Plan and the Rating Review.

6 Karakia Whakamutunga – Closing Prayer

Cr Moko Tepania closed the meeting with a karakia.

7 Meeting Close

The meeting closed at 5:32 pm.

The minutes of this meeting will be confirmed at the Ordinary Council meeting to be held on 24 June 2021.

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

CHAIRPERSON

Ordinary Council Meeting Agenda

24 June 2021

6.2 Adoption of the 2021-31 Long Term Plan

File Number: A3223043

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

Authoriser: Darren Edwards, General Manager - Strategic Planning and Policy

Take Pūrongo / Purpose of the Report

To adopt the Long Term Plan (LTP) for 2021 – 2031.

WhakarĀpopoto matua / Executive Summary

· The Local Government Act 2002 (the Act) requires a Council to have, at all times, an LTP. The LTP must be adopted before commencement of the first financial year to which it relates.

· Council adopted its Consultation Document for the 2021-2031 LTP, along with supporting information including strategies, policies, forecast financial statements and work programmes, in March 2021, and consulted from 6 March 2021 until to 6 April 2021 in accordance with the Special Consultative Procedure.

· 740 submissions were received. Over 100 people spoke to their submissions at public hearings on 20-23 April in Kaitaia and Kaikohe. His Worship the Mayor, Councillors, Community Board Members, the Chief Executive Officer and senior managers attended these hearings.

· The LTP presented for adoption was developed from the supporting information that was previously adopted with the Consultation Document in March (Council’s “right debate” with the community) and amended in accordance with the decisions made by Council at the Deliberations meeting on 13 May 2021.

· The Revenue and Financing Policy, which shows how Council proposes to fund its operating and capital expenditures, must be adopted for inclusion in the LTP. The LTP must then be adopted to enable the setting rates for the 2021/2022 financial year.

· This report also recommends a further change to the rating policy ML21-02 (Māori Freehold Land used for the purposes of Papakāinga or other housing purposes subject to occupation licenses or other informal arrangements).

tŪtohunga / Recommendation

That Council:

a) adopts the Revenue and Financing Policy contained in the final 2021-31 Long Term Plan.

b) adopts the Financial Strategy and Infrastructure Strategy contained in the final 2021–2031 Long Term Plan.

c) adopts the 2021–2031 Long Term Plan as amended in accordance with the decisions made at the Deliberations meeting held on 13 May 2021 and the final changes notified by Audit New Zealand.

d) adopts the ML21/2 policy (Māori Freehold Land used for the purposes of Papakāinga or other housing purposes subject to occupation licenses or other informal arrangements) as amended.

e) authorises the Chief Executive Officer to approve any minor accuracy, grammatical or formatting amendments prior to the Long Term Plan 2021– 2031 and associated documents being published or uploaded onto the Far North District Council website.

1) TĀhuhu kŌrero / Background

The adoption of an LTP is a requirement of Section 93 of the Local Government Act 2002. The process to be followed and / or matters to be taken into account are contained in Part 6 of the Act which encompasses Council’s decision making (sections 76 – 81), consultation processes (sections 82 – 90), and planning (sections 93 – 94). Council has followed the necessary Special Consultative Procedure prescribed by the legislation.

In March 2021, Council adopted the Consultation Document and Supporting Information for the 2021–2031 LTP. All items were made publicly available on 6 March 2021. Consultation continued until 6 April 2021. 740 submissions were received, and more than 100 submitters spoke at hearings on 20-23 April in Kaitaia and Kaikohe. With public feedback in mind, Council formally deliberated changes for inclusion in the final LTP on 13 May 2021.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

The 2021-31 LTP presented for adoption was compiled from the supporting information that was previously adopted with the Consultation Document in February (Council’s “right debate” with the community) and was amended in accordance with the decisions made by Council at the Deliberations meeting held on 13 May 2021. These decisions were guided by community input gathered through consultation and engagement, the submissions process, and public hearings.

Changes agreed at deliberations are summarised in The Right Debate section of the LTP. Other changes relating to a range of operational issues have also been incorporated into the final LTP as a result of additional or updated information that became available after the adoption of the Consultation Document and its supporting information.

While Councillors have already received the majority of the material presented in the LTP (i.e. the supporting information including strategies, policies, forecast financial statements, work programmes and other material), the front section of the document is new. This section serves to provide structure and includes:

· A message from the Mayor and Chief Executive Officer

· Council, Community Boards and the management and organisational structure

· Strategic direction including community outcomes and strategic priorities

· An overview of Council’s approach to working in partnership with Māori

· A summary of what we consulted on and the changes that were made as a result of consultation

· Disclosures requested by Audit NZ.

Key elements of the LTP are:

· A balanced budget in each year, where revenue exceeds expenditure (including depreciation)

· A rate to rate increase of 6.74% in 2021/2022. Note that the Financial Strategy shows the rate increase to be lower than this at 3.44% due to the corresponding reduction in the number of rateable units as the result of the enactment of the Whenua Māori Amendment Bill. Rates increases across the remaining nine years of the plan range between 1.5% and 5.7%

· Net debt forecast from $159 million in year one to $331 million by the end of the 2030/31 financial year

· Total annual operating expenditure ranging from $140 million in 2021 to $192 million in 2031

· Total annual spend on capital projects ranging from $96 million to $140 million.

Further amendment to Rating Policies

At deliberations a resolution to adopt Rate Relief Policies with amendments as a result of consultation and the enactment of the Rating of Whenua Māori Amendment Bill. Part of the resolution was an amendment to the wording of ML21/02, Māori Freehold Land used for the purposes of Papakāinga or other housing purposes. The policy was updated to reflect the changes in the Bill. On reflection, however, feedback from the Rates team indicates that the amended wording could present issues when applying the policy. The Chief Financial Officer therefore recommends that the wording of the ML21/02 policy be reverted to the original. This will not negatively affect any customer in terms of rates charges. Staff will continue to work on this policy to align it with recent legislative changes prior to the legislative deadline of 1 July 2022.

The Rating Policies are not required content for the LTP. They are a single document available on the Council website. The amended ML21/02 section is attached, marked up to show the reverted changes.

The process from here:

The Local Government Act 2002 requires Council to adopt its LTP by 30 June 2021.

Adoption of the LTP must follow adoption of the Revenue and Financing Policy. The LTP must then be adopted to enable the setting of rates for the 2021/2022 financial year.

Take Tūtohunga / Reason for the recommendation

Section 93 of the Local Government Act 2002 requires a Council to have, at all times, a Long Term Plan. The section prescribes the purpose and the procedure for adopting an LTP as well as specifying that an LTP must be adopted before the commencement of the first year to which it relates, and that an LTP adopted under this section must cover a period of not less than 10 consecutive financial years.

The 2021-2031 LTP meets the statutory requirements of the Act and must be adopted by Council prior to 1 July 2021.

3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision

The 2021-2031 LTP sets in place the Council programme for the next ten years along with the funding required. This document sets the budget for the ten-year period.

Āpitihanga / Attachments

1. Rating Relief Policies Amended ML21-02 MFL used for Papakainga Marked Up for adoption - A3244740 ⇩

2. Long Term Plan 2021-2031 Final - A3248571 (under separate cover)

3. Draft Audit Opinion - A3249244 (under separate cover)

Hōtaka Take Ōkawa / 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.

He Take Ōkawa / Compliance Requirement	Aromatawai Kaimahi / 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 decision involves a high degree of significance.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	The Local Government 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.	District-wide relevance. Community Boards were represented at all workshops and public meetings. Community Board submissions were considered.
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. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi.	Implications were considered within the development process of the LTPA.
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).	The LTP applies to all ratepayers and residents of the District. Feedback received from the public was considered through the decision-making process.
State the financial implications and where budgetary provisions have been made to support this decision.	The LTP sets the budgets for the next 10 years.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

Ordinary Council Meeting Agenda

24 June 2021

6.3 Setting of Rates, due dates and penalties for 2021-2022

File Number: A3217445

Author: Zakeeda Khan, Financial Planner

Authoriser: Janice Smith, Chief Financial Officer

Purpose of the Report

The purpose of the report is to allow Council to set the rates, due dates and penalties for the 2021-2022 rating year in accordance with the provisions of the Local Government (Rating) Act 2002.

Now that Council has adopted the Long Term Plan for 2021-2031 it must set the rates for the 2021-2022 rating year.

Executive Summary

· Set General Rates

· Set Targeted Rates

· Penalty Dates

· Setting of the Fees in respect of Postponed Rates

Recommendation

That, pursuant to Section 23 of the Local Government (Rating) Act 2002 (the Act), Council sets the rates as described below for the year commencing 1st July 2021 and concluding 30th June 2022;

All rates are shown inclusive of GST

GENERAL RATE

General Rate

Differentiated on the basis of land use set on all rateable land

Differential	Basis	Rate
General Differential	Per $ of Land Value	$0.0046648
Commercial Differential	Per $ of Land Value	$0.0128282

Uniform Annual General Charge (UAGC):

A UAGC of $450.00 per Separately Used or Inhabited Part (SUIP) on every rateable Rating Unit

TARGETED RATES

ROADING RATES

Uniform Roading Rate

A Uniform Targeted Rate of $100 per Separately Used or Inhabited Part (SUIP) on every rateable Rating Unit

Differential Roading Rate

Differentiated on the basis of land use set on all rateable land

Differential	Basis	Rate
Residential	Per $ of Land Value	$0.0001041
Lifestyle	Per $ of Land Value	$0.0001130
Farming General	Per $ of Land Value	$0.0001243
Horticulture	Per $ of Land Value	$0.0000776
Dairy	Per $ of Land Value	$0.0001803
Forestry	Per $ of Land Value	$0.0019579
Commercial	Per $ of Land Value	$0.0002810
Industrial	Per $ of Land Value	$0.0003402
Mining/Quarry	Per $ of Land Value	$0.0087814
Other	Per $ of Land Value	$0.0001935

Ward Services Rate

Differentiated on the basis of location set on all rateable land in the identified wards

Differential	Basis	Rate
BOI - Whangaroa Ward	Per SUIP	$327.60
Te Hiku Ward	Per SUIP	$288.40
Kaikohe - Hokianga Ward	Per SUIP	$373.90

Stormwater Rate

10% of the required funding for stormwater is from general rates and the remaining

90% is set on the basis of capital value on all rateable property identified in the rating area maps for the listed urban communities;

Ahipara	Haruru Falls	Kaikohe	Kawakawa
Awanui	Hihi	Kaimaumau	Karikari
East Coast	Houhora/Pukenui	Kaitaia	Kerikeri/Waipapa
Kohukohu	Okaihau	Paihia/Te Haumi	Taupo Bay
Moerewa	Opononi/Omapere	Rawene	Tauranga Bay
Ngawha	Opua/Okiato	Russell	Whangaroa/Kaeo

Basis	Rate
Per $ of Capital Value	$0.0002787

DEVELOPMENT RATES

Paihia CBD Development Rate

Differentiated on the basis of land use set on all rateable land identified in the rating area maps

Differential	Basis	Rate
General Differential	Per SUIP	$18.00
Commercial Differential	Per SUIP	$56.00

Kaitaia BID Rate

Commercial rating units defined in the rating area map	Basis	Rate
Commercial rating units defined in the rating area map	Per $ of Land Value	$0.0013551

BOI Recreation Centre Rate

Rating Units defined in the rating area map	Basis	Rate
Rating Units defined in the rating area map	Per SUIP	$5.00

PRIVATE ROADING RATES

Hupara Road Sealing Rates

Rating Units defined in the rating area map	Basis	Rate
Rating Units defined in the rating area map	Per SUIP	$661.73

SEWERAGE RATES

Separate sewerage rates are set for each sewerage scheme on every rating unit that is connected to each scheme or to which the scheme is “available”.

The additional pan rate is set on the basis of the third and subsequent water closet or urinal within the rating unit. A rating unit used primarily as a residence for a single household will be treated as having a single pan.

Ahipara Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$269.73
Available	Per Rating Unit	$269.73
Additional Pan Rate	Per additional pan	$161.84

East Coast Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$244.41
Available	Per Rating Unit	$244.41
Additional Pan Rate	Per additional pan	$146.65

Hihi Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$596.96
Available	Per Rating Unit	$596.96
Additional Pan Rate	Per additional pan	$358.18

Kaeo Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$587.14
Available	Per Rating Unit	$587.14
Additional Pan Rate	Per additional pan	$352.28

Kaikohe Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$183.02
Available	Per Rating Unit	$183.02
Additional Pan Rate	Per additional pan	$109.81

Kaitaia and Awanui Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$189.62
Available	Per Rating Unit	$189.62
Additional Pan Rate	Per additional pan	$113.77

Kawakawa Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$392.13
Available	Per Rating Unit	$392.13
Additional Pan Rate	Per additional pan	$235.28

Kerikeri Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$698.57
Available	Per Rating Unit	$698.57
Additional Pan Rate	Per additional pan	$419.14

Kohukohu Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$570.13
Available	Per Rating Unit	$570.13
Additional Pan Rate	Per additional pan	$342.08

Opononi Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$251.54
Available	Per Rating Unit	$251.54
Additional Pan Rate	Per additional pan	$150.92

Paihia Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$391.95
Available	Per Rating Unit	$391.95
Additional Pan Rate	Per additional pan	$235.17

Rangiputa Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$210.23
Available	Per Rating Unit	$210.23
Additional Pan Rate	Per additional pan	$126.14

Rawene Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$455.90
Available	Per Rating Unit	$455.90
Additional Pan Rate	Per additional pan	$273.54

Russell Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$392.48
Available	Per Rating Unit	$392.48
Additional Pan Rate	Per additional pan	$235.49

Whangaroa Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$477.95
Available	Per Rating Unit	$477.95
Additional Pan Rate	Per additional pan	$286.77

Whatuwhiwhi Sewerage Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$258.42
Available	Per Rating Unit	$258.42
Additional Pan Rate	Per additional pan	$155.05

Sewerage Public Good Rate is set on every rating unit in the district

Per Rating Unit

$15.00

District Wide Sewerage Operating Rate is set on every rating unit connected to a sewerage scheme

Operating Rate	Basis	Rate
Connected (All schemes)	Per SUIP	$615.49
Additional Pan Rate	Per additional pan	$369.30

WATER RATES

Separate water rates are set for each water supply scheme differentiated on the basis the supply or availability of supply to each scheme.

Kaikohe Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$225.62
Available	Per Rating Unit	$225.62

Kaitaia Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$260.86
Available	Per Rating Unit	$260.86

Kawakawa Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$334.37
Available	Per Rating Unit	$334.37

Kerikeri Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$135.59
Available	Per Rating Unit	$135.59

Okaihau Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$272.47
Available	Per Rating Unit	$272.47

Omapere/Opononi Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$528.98
Available	Per Rating Unit	$528.98

Paihia Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$178.63
Available	Per Rating Unit	$178.63

Rawene Water Capital Rate

Differential	Basis	Rate
Connected	Per SUIP	$318.96
Available	Per Rating Unit	$318.96

Water Public Good Rate is set on every rating unit in the district

Per Rating Unit

$15.00

District Wide Water Operating Rates

The District wide operating rates are assessed on the basis of the quantity of water supplied as recorded by meter.

Metered Supply rate (all schemes)

Operating Rate	Basis	Rate
Potable Water	Per m³ Supplied	$3.43
Non-potable Water	Per m³ Supplied	$2.23

Non Metered Water Supply Rate (Includes 250 M³Supply)

Operating Rate	Basis	Rate
Potable Water	Per SUIP	$1,084.14
Non-potable Water	Per SUIP	$784.45

DRAINAGE RATES are set on all rateable land in the relevant drainage area

Kaitaia Drainage Area

Basis

Rate

Area of land within the defined rating area

Per hectare

$9.60

Kaikino Drainage Area (as defined in the FIS)
Differential	Basis	Rate
Differential A	Per hectare	$19.22
Differential B	Per hectare	$9.61
Differential C	Per hectare	$3.21

*Motutangi Drainage Area (as defined in the FIS)*
Differential	Basis	Rate
Differential A	Per hectare	$90.07
Differential B	Per hectare	$45.04
Differential C	Per hectare	$15.04

*Waiharara Drainage Area (as defined in the FIS)*
Differential	Basis	Rate
Differential A	Per hectare	$21.66
Differential B	Per hectare	$10.83
Differential C	Per hectare	$3.62

And that, pursuant to Section 24 of the Act and with the exception of the targeted rates set for the supply of water pursuant to Section 19 of the Act, Council charges the rates for the 2021-2022 rating year by way of four equal instalments. Each instalment to be paid on or before the due dates set out below;

*Rate Instalment*	*Due Date*	*Penalty Date*
First Instalment	20 August 2021	27 August 2021
Second Instalment	22 November 2021	29 November 2021
Third Instalment	21 February 2022	28 February 2022
Fourth Instalment	20 May 2022	27 May 2022

And that, pursuant to Sections 57 and 58 of the Act and with the exception of the targeted rates set for the supply of water pursuant to Section 19 of the Act, Council imposes the following penalties:

A ten percent (10%) penalty on any portion of any instalment of rates assessed in the 2021-2022 financial year that is not paid on or by the due date for payment as detailed above. This penalty will be added on the penalty dates detailed above;

And that the water meters be read and invoiced on a six-month cycle, or more often if required, and the subsequent invoices become due for payment set out overleaf.

And that, pursuant to Sections 57 and 58 of the Act, Council imposes the following penalties in respect of targeted rates set for the supply of water pursuant to Section 19 of the Act:

A ten percent (10%) penalty on any portion of the rate for the supply of water charged pursuant to Section 19 of the Act, as separately invoiced, that is not paid on or by the due date for payment as set out below;

Scheme	1^st Invoice	Due Date	Penalty Date	2^nd Invoice	Due Date	Penalty Date
Kaikohe	Nov-21	20/12/2021	27/12/2021	May-22	20/06/2022	27/06/2022
Kaitaia	Aug-21	20/09/2021	27/09/2021	Feb-22	21/03/2022	28/03/2022
Kawakawa	Jul-21	20/08/2021	27/08/2021	Jan-22	21/02/2022	28/02/2022
Kerikeri	Sep-21	20/10/2021	27/10/2021	Mar-22	20/04/2022	27/04/2022
Okaihau	Jul-21	20/08/2021	27/08/2021	Jan-22	21/02/2022	28/02/2022
Omapere/ Opononi	Jul-21	20/08/2021	27/08/2021	Jan-22	21/02/2022	28/02/2022
Paihia	Oct-21	22/11/2021	29/11/2021	Apr-22	20/05/2022	27/05/2022
Rawene	Jul-21	20/08/2021	27/08/2021	Jan-22	21/02/2022	28/02/2022

And that, pursuant to Section 88 of the Act, Council set Postponement Fees as provided for in the relevant Rates Postponement Policies;

FEES IN RESPECT OF POSTPONED RATES

Pursuant to Section 88 of the Local Government (Rating) Act 2002, Council will charge a postponement fee on all rates that are postponed under any of its postponement policies.

The Postponement fees are as follows:

· Application Fee: $300

· Administration Fee: $50 per year

· Financing Fee on all Postponements: Currently set at 3.00% pa but may vary to match Council’s average cost of funds. At Council’s discretion all these fees may be added to the total postponement balance.

1) Background

Council has adopted the Long Term Plan 2021 - 2031 and therefore, pursuant to Section 23 of the Local Government (Rating) Act 2002 (the Act), must now formally resolve to set the rates for the year commencing 01 July 2021 and concluding 30 June 2022.

2) Discussion and Options

The Act requires Council to formally set the rates for each year after it has adopted the appropriate Annual Plan or Long-Term Plan. It is this resolution which gives Council the power to set and charge rates for the year.

Reason for the recommendation

It is by setting the rates that Council obtains the funding for the forthcoming year. This resolution provides for funding as set out in the Long Term Plan 2021 - 2031 rating year.

3) Financial Implications and Budgetary Provision

It is by setting the rates that Council obtains the funding for the forthcoming year. This resolution provides funding as is set out in the Long Term Plan 2021 - 2022 rating year.

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

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	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, Local Government Rating 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.	Not applicable.
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.	Not applicable.
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.	Not applicable.
State the financial implications and where budgetary provisions have been made to support this decision.	Not applicable.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.

Ordinary Council Meeting Agenda

24 June 2021

6.4 Northland Inc Shareholding

File Number: A3225999

Author: Bill Lee, Special Projects Manager - Te Hono

Authoriser: Darren Edwards, General Manager - Strategic Planning and Policy

Take Pūrongo / Purpose of the Report

WhakarĀpopoto matua / Executive Summary

· Now that Council through the Long Term Plan (LTP) 2021- 31 adoption has agreed to 10 years funding and to becoming an equal shareholder of Northland Inc, Council needs to adopt the Shareholder Agreement, purchase 40 shares from Northland Regional Council (NRC) and nominate a shareholder representative (a requirement under the Companies Act).

· Additionally, there will be a joint decision-making governance committee and Council along with the other shareholders (NRC and Kaipara District Council (KDC)) will nominate 2 Elected Members each (total of 6) to be part of this Committee. Previously, NRC acted as the sole Governance entity.

· With the decisions made, Council will become a shareholder on July 1 2021, along with KDC and NRC, who are making the similar decisions after adopting their respective LTPs.

tŪtohunga / Recommendation

That Council:

a) agrees to purchase 40 shares in Northland Inc Limited from Northland Regional Council at a value of $2 per share and authorises the Chief Executive Officer to sign the Share Sale and Purchase Agreement (Attachment One) and Share Transfer Form (Attachment Two) to execute the purchase on 1 July 2021.

b) authorises His Worship the Mayor to sign the Northland Inc Limited Shareholder Agreement (Attachment Three) which includes the Constitution of Northland Inc Limited.

c) authorises the establishment of a Joint Regional Economic Development Committee with Northland Regional Council and Kaipara District Council, pursuant to clause 30(1)(b) and 30A of Schedule 7 of the Local Government Act 2002.

d) adopts the Terms of Reference for the Joint Regional Economic Development Committee (Attachment Four), delegates those responsibilities and duties to the Joint Regional Economic Development Committee and acknowledges that this fulfils the requirements of 30A(1).

e) appoints Councillor Vujcich and Councillor Clendon as Council’s representatives on the Joint Regional Economic Development Committee and appoints Councillor ________________ as the alternative elected member.

f) appoints Councillor ________________ as the shareholder representative for Northland Inc Limited delegating all necessary authority to represent the Council’s interest including but not limited to exercising the Council’s vote as a shareholder of Northland Inc Limited at all shareholder meetings and in regard to any shareholder resolutions.

1) TĀhuhu kŌrero / Background

Since the initial agreement in principle by FNDC in the 2020/21 Annual Plan, FNDC and KDC agreed to consult on the equal shareholding proposal in each Councils Long Term Plan Consultation Document. WDC has chosen not to continue with the opportunity and did not consult.

To assist with the process of moving to joint ownership, Northland Regional Council established a Regional Economic Development Service Delivery Working Party, consisting of two elected members from each of the three councils (Councillors Vujcich and Clendon represented FNDC). This working party has been supported by staff from each of the three councils. The working party has provided input into the development of the statement of intent of Northland Inc which will become effective 1 July 2021, the appointment of three directors for terms to commence 1 July 2021, and the documents required for joint ownership.

There are a number of decisions required under the Companies Act 1993 and the Local Government Act 2002 needed for the implementation on July 1 2021. These are discussed below.

2) matapaki me NgĀ KŌwhiringa / Discussion and Options

Purchase of shares

Council has consulted, deliberated, and agreed to become a joint owner in Northland Inc Limited. For this to occur Council must purchase 40 shares in Northland Inc Limited from Northland Regional Council. Northland Regional Council is selling 40 shares to both Far North District Council and Kaipara District Council and retaining ownership of the remaining 40 shares. These transactions will result in joint and equal ownership of Northland Inc Limited by the three councils. The cost of purchasing these shares is $80, being 40 shares @ $2 per share, the price originally paid by Northland Regional Council for the shares.

A Share Sale and Purchase Agreement (Attachment One) and a Share Transfer Form (Attachment Two) have been prepared. These documents set out the terms under which the share sale and transfer will be made. An important feature is that this will happen on 1 July 2021. Purchasing shares at the beginning of the financial year considerably reduces the financial management and accounting burden.

Shareholders’ Agreement

To assist with the move to joint ownership of Northland Inc Limited by the three councils, a Shareholders Agreement has been prepared (Attachment Three). The agreement sets out the terms between the parties (the three councils and Northland Inc Limited) in relation to the management and ownership of Northland Inc., its activities, and the rights and obligations of the shareholders. Among other things, the Agreement sets out the rights attached to shares, the appointment of directors, the procedures for board meetings, matters requiring joint committee approval, the issue of new securities and share transfer restrictions. It also includes specific reference to the process by which Whangarei District Council would become a joint owner should it decide to do so later.

Joint committee

As a shareholder in a CCO, a local authority has a number of responsibilities, duties and powers under the Local Government Act 2002. These include:

a. Receiving a draft Statement of Intent and providing any comments, before receiving the final Statement of Intent;

b. Agree to the Statement of Intent, or require it to be modified if it does not agree;

c. The ability to extend a deadline regarding the statement of intent by up to one month;

d. Adopting a policy that sets out an objective and transparent process for identifying required skills of Directors, appointment and remuneration of Directors;

e. Requiring the preparation and delivery of additional plans (i.e. an asset management plan, a long-term plan or a thematic plan);

f. Regularly undertaking performance monitoring of the CCO to evaluate its contributions to achieving the desired results (set out in statement of intent);

g. The ability to prepare a statement of expectations to specify how the CCO is to conduct its business and any expectations in relation to community engagement and collaboration.

It is proposed to establish a joint committee of the three councils to carry out these functions. The establishment of a joint committee means that only one decision on any matter is required rather than three separate council decisions. In addition, as mentioned above, the Shareholders’ Agreement sets out several matters affecting the operation of Northland Inc. Limited that require joint committee approval. These include certain thresholds for financial and contractual commitments, and the remuneration of directors. Furthermore, Northland Regional Council is delegating responsibility for the allocation of funding from its Investment and Growth Reserve (IGR) to the joint committee. The IGR is the pool into which the three council’s will be placing their funding commitment to regional economic development as set out in their respective Long Term Plans.

The formation of joint committees is provided for in the Local Government Act 2002 (Clause 30 and 30A Schedule 7). Clause 30A(1) states that a local authority not appoint a joint committee under clause 30(1)(b) unless it has first reached agreement with every other local authority or body that is to appoint members of the committee. Under Clause 30A(2), an agreement under subclause 30A(1) must also specify—

a. the number of members each local authority or public body may appoint to the committee; and

b. how the chairperson and deputy chairperson of the committee are to be appointed; and

c. the terms of reference of the committee; and

d. what responsibilities (if any) are to be delegated to the committee by each local authority or public body; and

e. how the agreement may be varied.

The Terms of Reference for the Joint Regional Economic Development Committee (Attachment Four) address the requirements above and by each council resolving to adopt the terms of reference the requirements of Clause 30A(1) are considered to be met.

The Terms of Reference establish a joint committee of six members with each council nominating two elected members as full members and one as an alternate ‘back-up’ in the event that either of the two nominees are unable to attend. A Northland Regional Council member will be elected as the initial Chair. This will be reviewed at the beginning of the next triennium. The committee will endeavour to make all decisions by consensus (100%), but if this cannot be reached then by simple majority vote of those in attendance. Administrative support will be provided by Northland Regional Council.

Shareholder representative

In addition to appointing members to the joint committee, Council is also required to appoint a shareholder representative for Northland Inc. Limited. The main purpose of the representative is to exercise council’s vote at all shareholder meetings and in regard to any shareholder resolutions. While the joint committee is a forum in which the shareholders meet and make decisions regarding Northland Inc Limited, it is not a shareholder meeting as defined by the Companies Act. The Companies Act requires certain matters to be decided at a shareholder meeting. Joint Committee meetings are in addition to the required shareholder meetings, not instead of them.

Options

As Council has already made the decisions through the Long Term Plan 2021-31 deliberations and adoption, this report just focuses on the requirements of the Companies Act 1993 and Local Government Act 2002 in relation to forming a Council Controlled Organisation. Many of the attachments are revisions of existing documents to be fit for purpose for 1 July 2021. Much of the preparation and proposed changes have been led by NRC, through legal advice from Wynn Williams along with review and input from both FNDC and KDC legal advisors. Additionally, the Regional Economic Development Service Delivery Working Group has provided governance oversight of the documents input into the preparation in readiness for adopting or signing by the respective councils.

Take Tūtohunga / Reason for the recommendation

The recommendations allow Council to become an equal shareholder of Northland Inc under the Companies Act 1993 and under the Local Government Act 2002. With these decisions, Northland Inc will become a Council Controlled Organisation of Council, along with NRC and KDC on 1 July 2021.

3) PĀnga PŪtea me ngĀ wĀhanga tahua / Financial Implications and Budgetary Provision

Budgetary provision has been made for the next 10 years in the Long Term Plan 2021-31.

Āpitihanga / Attachments

1. Share Sale and Purchase Agreement between NRC and FNDC - A3247144 ⇩

2. Share Transfer Form between NRC and FNDC - A3247149 ⇩

3. Northland Inc Shareholders Agreement including Constitution - A3247152 ⇩

4. Terms of Reference for the Joint Regional Economic Development Committee - A3247155 ⇩

Hōtaka Take Ōkawa / 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

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

He Take Ōkawa / Compliance Requirement	Aromatawai Kaimahi / 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	High.
State the relevant Council policies (external or internal), legislation, and/or community outcomes (as stated in the LTP) that relate to this decision.	Significant issue consulted on as part of the 2021-31 Long Term Plan Consultation Document.
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.	Both district and regional.
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. State the possible implications and how this report aligns with Te Tiriti o Waitangi / The Treaty of Waitangi.	Consulted as part of the 2021-31 Long Term Plan Consultation Document and views consider at deliberations.
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).	Consulted as part of the 2021-31 Long Term Plan Consultation Document and views considered at deliberations.
State the financial implications and where budgetary provisions have been made to support this decision.	Budget provision has been made across the 10 years of the 2021-31 Long Term Plan.
Chief Financial Officer review.	The Chief Financial Officer has reviewed this report.