Performance Committee Agenda (3 May 2018) - Agenda

Performance Committee agenda (3 May 2018) - Agenda

MEETING AGENDA

PERFORMANCE COMMITTEE

Thursday 3 May 2018 at 3.30pm

COUNCIL CHAMBER LIARDET STREET NEW PLYMOUTH

Chairperson: Cr Richard Jordan Members: Cr Marie Pearce (Deputy) Cr Gordon Brown Cr Harry Duynhoven Cr Colin Johnston Cr John McLeod Cr John Williams Mayor Neil Holdom

1 Performance Committee agenda (3 May 2018) - Agenda

PERFORMANCE COMMITTEE PURPOSE 1. To monitor the Council’s performance, progress and financial position against, and to ensure actions are compliant with legislation, strategies, policies and plans.

2. To enable delivery of operational activities in accordance with approved plans and policies where those actions are beyond the delegations to Council staff.

Purpose of Local Government The reports contained in this agenda address the requirements of the Local Government Act 2002 in relation to decision making. Unless otherwise stated, the recommended option outlined in each report meets the purpose of local government and:

 Will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

 Would not alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or transfer the ownership or control of a strategic asset to or from the Council.

END

2 Performance Committee agenda (3 May 2018) - Health and Safety

Health and Safety Message

In the event of an emergency, please follow the instructions of Council staff.

Please exit through the main entrance.

Once you reach the footpath please turn right and walk towards Pukekura Park, congregating outside the Spark building. Please do not block the foothpath for other users.

Staff will guide you to an alternative route if necessary.

If there is an earthquake – drop, cover and hold where possible. Please be mindful of the glass overhead.

Please remain where you are until further instruction is given.

3 Performance Committee agenda (3 May 2018) - Deputations

ADDRESSING THE MEETING Requests for public forum and deputations need to be made at least one day prior to the meeting. The Chairperson has authority to approve or decline public comments and deputations in line with the standing order requirements.

PUBLIC FORUM Public Forums enable members of the public to bring matters to the attention of the committee which are not contained on the meeting agenda. The matters must relate to the meeting’s terms of reference. Speakers can speak for up to 5 minutes, with no more than two speakers on behalf of one organisation.

 None advised

DEPUTATIONS Deputations enable a person, group or organisation to speak to the meeting on matters contained on the agenda. An individual speaker can speak for up to 10 minutes. Where there are multiple speakers for one organisation, a total time limit of 15 minutes, for the entire deputation, applies.

 Roger French – Tab 5 - Amendments to Speed Limits

4 Performance Committee agenda (3 May 2018) - Previous Minutes

PREVIOUS COMMITTEE MINUTES Recommendation That the minutes of the Performance Committee (28 March 2018, and the proceedings of the said meeting, as previously circulated, be taken as read and confirmed as a true and correct record.

END

5 Performance Committee agenda (3 May 2018) - Table of Contents

REPORTS

ITEMS FOR DECISION BY COMMITTEE

1 Papa Rererangi i Puketapu Quarterly Report

2 Venture Taranaki Trust Quarterly Report

3 PIF Draft Statement of Intent for the Year Ended 30 June 2019

4 Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

5 Amendments to Speed Limits

6 Delegated Authority Contracts

7 Performance Report 1 July 2017 to 31 March 2018

ITEMS FOR RECOMMENDATION TO COUNCIL

8 Road Stopping Sisson Terrace

9 Road Acquisition – Richmond Road

10 Road Stopping – 99 Messenger Terrace

11 Q3 Health and Safety report

END

6 1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Item for Decision

PAPA RERERANGI I PUKETAPU LTD - NEW PLYMOUTH AIRPORT

PURPOSE The purpose of this report is to present the Para Rererangi i Puketapu Ltd quarterly report for the quarter ended 31 December 2017.

RECOMMENDATION That, having considered all matters raised in the report: a) the matter is uplifted from the table and b) the report be noted.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

DISCUSSION All Council Control Organisations report to the Council on a quarterly basis providing an update on their activities and financial performance.

This report provides Council with a summary of the results of the company for the first six months of the financial year.

FINANCIAL AND RESOURCING IMPLICATIONS This report is produced within existing resources and budgets.

IMPLICATIONS ASSESSMENT This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:  Council staff have delegated authority for any decisions made;  Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;  Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;  Any decisions made are consistent with the Council's plans and policies; and

7 1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Item for Decision

 No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

APPENDICES Airport Report

Report Details Prepared By: Kelvin Wright (Chief Operating Officer) Team: Executive Leadership Team Approved By: Alan Bird (CFO) Ward/Community: District Wide Date: 20 April 2018 File Reference: ECM7649660

------End of Report ------

8 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Papa Rererangi i Puketapu Ltd New Plymouth Airport

Report for the period ended 31 December 2017

Philip Cory-Wright Chair Wayne Wootton Chief Executive

New Plymouth Airport 192 Airport Drive New Plymouth 4373 Website: www.nplairport.co.nz

9 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Contents 1. Introduction ...... 3 2. Responsibilities ...... 3 3. PRIP establishment ...... 4 4. Stakeholder relations ...... 5 5. Strategic outlook ...... 5 6. Operational summary ...... 6 7. Terminal redevelopment project ...... 7

PRIP Report – period ended December 2017 Page | 2

10 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

1. Introduction

This half-year report, covering the period ended 31 December 2017, is presented by Papa Rererangi i Puketapu Ltd (PRIP) in accordance with the requirements of Sections 64 and 65 of the Local Government Act 2002 referencing the company’s Statement of Intent and PRIP’s monitoring and reporting requirements respectively.

2. Responsibilities

PRIP was established in July 2017 and is 100% owned by New Plymouth District Council (NPDC). The company operates as a Council Controlled Trading Organisation (CCTO) through an independent skills-based Board of Directors and employs its own Chief Executive and staff. PRIP operates under a Statement of Intent (SOI) agreed to by its Directors and NPDC.

PRIP’s prime objectives are to:

 operate the Airport in full compliance with the regulations set down by the New Zealand Civil Aviation Authority  ensure that the business is run on a sustainable commercial basis  optimise the use of its assets  generate a reasonable return on investment

The key to this is to ensure the ongoing safe and successful operation of the Airport, whilst also facilitating the growth of tourism and trade by working collaboratively with key stakeholders to sustainably increase passenger numbers.

The Airport provides services to allow the safe and efficient facilitation of travellers and freight and, ancillary to this, it leases terminal space and land at the Airport.

The Airport is viewed as an essential infrastructure asset for New Plymouth and has a key role to play in the economic performance, growth and development of the Taranaki region. As part of this, PRIP will work collaboratively with NPDC, Venture Taranaki, the Chamber of Commerce and other local key stakeholders to work towards the region’s common strategic goals.

PRIP Report – period ended December 2017 Page | 3

11 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

3. PRIP establishment

During the first six months of trading the Airport has now transitioned from previously being a Business Unit managed by the Council’s Property Team to an independent entity governed by a Board of Directors. This did prove to be challenging at first but all outstanding issues have now been resolved and the Council and PRIP have entered into the following agreements for the ongoing operation of the Airport:

 Service Level Agreement  Facility Agreement  General Security Deed  Deed of Lease

Further, following extensive dialogue with the New Zealand Civil Aviation Authority (CAA), the regulator is now satisfied with NPDC’s proposal for PRIP to manage the aerodrome operations in full accordance with the CAA Rule Part 139 and on behalf of the Council, who will retain ownership of the Aerodrome Operator Certificate.

During the period the consultation process with the Airport employees concluded with all of the staff agreeing to transfer from NPDC to PRIP. This was finalised in December and the new structure is shown below.

PRIP Report – period ended December 2017 Page | 4

12 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

4. Stakeholder relations

PRIP is continuing to work constructively and collaboratively with the Puketapu Hapu, who are mana whenua of the land the Airport is sited on. Good progress on this is being achieved and the local Hapu have been heavily involved in the current Airport terminal redevelopment project from a design aspect and also monitoring during excavations of the ongoing construction works.

The Airport has also been recognised as a key stakeholder by the New Zealand Transport Agency in relation to the agency’s plans to improve the State Highway 3 corridor from Bell Block to Waitara. This is particularly significant considering the Airport’s growth over the next decade and the impact this will have on the Airport Drive intersection with the State Highway. A workshop was held in October and further follow-ups are planned for early in the New Year.

NPDC, as the 100% Shareholder, has nominated an advisor who will attend all PRIP Board meetings as an observer. Currently the Council’s Chief Operating Officer (CCO) holds this position and, as well as the Board meeting attendance, the CCO meets regularly with the Chief Executive of PRIP to ensure strong communications and alignment between the Council and the Airport company.

5. Strategic outlook

Currently the main focus for PRIP is the delivery of the new Airport terminal and associated infrastructure, however, another key area that has been reviewed during the period is a new car park pricing strategy.

Changes to the car park pricing structure were approved by the PRIP Board during the quarter and will come into effect early in the New Year. The key elements will be a reduction in the free period from 60 to 20 minutes and the $1 hourly charge increasing to $2. Full day rates will see minor increases for the first four days but day rates above four days and the weekly charge will not alter.

Council will be aware that increases in car parking charges were highlighted as part of the Airport terminal redevelopment business case. This was adopted as one revenue source that was paramount to the Airport being able to sustainably fund the development without the need for ratepayer subsidy. The new rates have been set at a level that will bring New Plymouth Airport closer to charges levied for parking at other regional airports.

A further review will be undertaken once the redevelopment is completed.

PRIP Report – period ended December 2017 Page | 5

13 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Formulation of other detailed strategies will be developed over time with the following being taken into consideration:

o meets the needs of residents and businesses of the district and region o generates a reasonable rate of return on the Airport operations o support the airlines that operate the sectors to make sustainable returns o provides a regional competitive advantage platform for regional tourism growth

6. Operational summary

The following key performance measures are noted:

On a year-to-date (YTD) basis the Airport posted a profit before tax of $477,997 which was $120,861 above budget and 20% ahead of the equivalent period for the prior year. This is mainly due to operational costs being lower than anticipated and the delayed start of the Airport terminal redevelopment project.

YTD passenger numbers are tracking above forecast and, despite some monthly fluctuations, there was a 3.5% increase over the same period last year, a rate which continues to be higher than the growth figure as used in the business case for the Airport terminal redevelopment project at 2.5%

The first half of FY18 saw a total of 221,047 passengers travelling through the terminal and this has produced a new record for a 12 month rolling period of 428,180.

Air New Zealand has continued to perform well during the first half of the financial year and Jetstar, despite the number of weekly movements being less, carried a similar number of passengers to the equivalent period last year.

The third tier operator, Originair, is continuing with the direct air service between New Plymouth and Nelson and passenger numbers are steady, as can be expected from a new player in the market

The table below summarises the performance for the period ended 31 December 2017.

PRIP Report – period ended December 2017 Page | 6

14 1.1 Performance Committee agenda (3 May 2018) - Decision - PRIP Quarterly Report

Period ended 31 December 2017 Budget Budget Actual Previous year full year period ended period ended period ended FY18 31 Dec 17 31 Dec 17 31 Dec 16

Operating revenue $ 3,993,440 $ 2,014,856 $ 1,982,083 $ 1,626,869

Operating expenditure $ 3,315,440 $ 1,657,720 $ 1,504,086 $ 1,231,294

EBIT $ 678,000 $ 357,136 $ 477,997 $ 395,575

Passenger numbers 430,000 215,000 221,047 213,509

7. Terminal redevelopment project

Following approval by the PRIP Board to proceed with the first stage of the Airport terminal redevelopment, the project team completed the design of the enabling works and went out to tender in late October. The enabling contract includes demolition of two hangars and the existing baggage reclaim area, underground service alterations, roading and car park modifications and bulk excavation and hardcore fill for the new terminal footprint. The contract was awarded to Offshore Plumbing Services Ltd at the November Board meeting and a commencement on site was made during December. The initial work was the installation of a new sewerage pumping station, associated pipework and other service alterations.

Work is progressing to programme with car park alterations and roading layout changes scheduled for early in the New Year. The excavation and hardcore fill for the new terminal will be started in March with a target completion date of mid-April.

At this stage there is no new information to indicate that the assumptions in the Airport terminal redevelopment business case are incorrect and, in fact, the enabling works contract and tenders recently received for the baggage handling systems, have both come in below the quantity surveyor’s estimates. It is envisaged that the tenders for the main building work will be the submitted for Board approval on 8 May 2018. If endorsed by the Directors, construction will commence later in May and will be completed by the end of 2019.

A separate contract was let in October to local company TCM Ltd to construct a temporary baggage reclaim area. This work is required due to the existing baggage claim area being within the new terminal footprint and costs for the contract were allowed for in the Airport terminal redevelopment business case. Completion of the works is scheduled for February 2018 and, once operational, the old baggage claim area will be demolished to allow for the excavation of the new building.

In conjunction with the temporary baggage reclaim, TCM are also working with Air New Zealand to build a new 160 square metre regional lounge to replace their existing small lounge on the first floor of the current terminal building and this is scheduled to be open early March.

PRIP Report – period ended December 2017 Page | 7

15 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2

Item for Decision

VENTURE TARANAKI TRUST QUARTER THREE 2017/18 REPORT

PURPOSE The purpose of this report is to present the Venture Taranaki Trust (VTT) Quarter Three Report for the period 1 January to 31 March 2018 to the Council.

RECOMMENDATION That, having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

DISCUSSION VTT is a Council Controlled Organisation (CCO) responsible for delivering New Plymouth District Council’s active economic development initiatives. The Venture Taranaki Trustees (the Trustees) are required to prepare a Statement of Intent (SOI) under the Local Government Act 2002 (LGA). The 2017/18 SOI was accepted by Council on 4 May 2017.

The Trustees also develop an annual business plan focusing on the business support and services, sector support and interventions, and project work the Trust will undertake during the year. This was submitted to Council and forms the basis of quarterly performance monitoring reports such as this.

Council officers received the VTT 2017/18 Quarter Three report on 16 April 2018 (see Appendix One).

This report shows that VTT has made very good progress towards achieving their key performance indicators in quarter three.

Some highlights from the quarter are that:  The Tapuae Roa: Make way for Taranaki Action Plan was completed;  The business support advisory team managed 915 client interactions for the district;  Many event and conferences were assisted;  Tourism growth rates well exceeded those nationally; and  The My Local Secret summer promotional campaign was extended.

FINANCIAL AND RESOURCING IMPLICATIONS There are no new financial and resourcing implications arising from this information report. The VTT quarterly report includes a forecast versus actual budget summary

16 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2

Item for Decision and project and activity breakdown for the quarter. There is a significant budget overrun relating to Tapuae Roa. This is due to the work programme expanding beyond that anticipated with additional executive team time required across a range of project areas including drafting specific regional funding proposals. This is not expected to impact on the overall year-end budgets.

APPENDICES Appendix one: Venture Taranaki Quarter Three Report 1 January – 31 March 2018 (ECM7693890)

Report Details Prepared By: Kathryn Scown (Senior Policy Adviser) Team: Policy Development Approved By: Mitchell Dyer (Policy Development Lead) Ward/Community: District Wide Date: 17 April 2018 File Reference: ECM 7693943

------End of Report ------

17 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

Venture TARANAKI Te Puna Umanga

QUARTERLY REPORT TO NEW PLYMOUTH DISTRICT COUNCIL QUARTER THREE 1 JANUARY - 31 MARCH 2018

VENTURE TARANAKI IS AN INITIATIVE OF

WOMAD. Photo: Zoe Shipley VENTURE TARANAKI: QUARTER 3 2017-2018 1

18 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

This report provides an overview of activity undertaken by Venture Taranaki for quarter three of the 2017 – 2018 financial year – 1 January 2018 – 31 March 2018 inclusive. The work programme of Venture Taranaki is defined by its agreed business plan for the 2017- 2018 year.

Submitted to New Plymouth District Council – 16 April 2018.

QUARTER THREE 2017-2018

Taranaki has been at the mercy of the weather gods during the third quarter of the financial year, as the region lurched from drought – great for golfers and tourists, less so for the rural sector – to being ravaged by the remnants of multiple tropical weather systems, the worst of which, ex-tropical Cyclone Gita, took out a vast portion of New Plymouth’s water supply and power to 24,000 properties. Both extremes have reignited that much vaunted post-trauma keyword ‘resilience’. Activity in the energy sector triggered almost as much profile as the aforementioned broken water pipe, with the announcement of the buyer of Shell’s New Zealand assets and upstream operations, Austrian-headquartered OMV. The company has had a reasonable presence in Taranaki for some time, and the move is being viewed as positive, with high levels of skills retention signalled. The Government announcement on the future of offshore exploration fell just outside the quarter, and the Trust is focused on the process of ‘transition’ that has been used often in relation to the issue. Despite this, the region faces a very busy summer forecast for drilling activity, and most businesses within the sector are well advanced in looking at future energy trends. Tourism has been a strong performer during the quarter, with sustained positive growth every month since October 2015, with particularly strong growth in international arrivals, up 24.8% for the year to end January. Taranaki’s tourism spend to the end of February was up 11% to $380 million, year-on-year. In the regional economic development space, all eyes are on Tapuae Roa, Taranaki’s updated regional economic development strategy, and the associated Action Plan which was publicly released just after the close of the quarter.

2 VENTURE TARANAKI: QUARTER 3 2017-2018

19 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

QUARTER THREE: AT A GLANCE

BUSINESS SUPPORT INNOVATION INITIATIVES: Incubator services 1,222 Techweek’18 CLIENT INTERACTIONS Hackathon with VT in Q3 - 915 in New Plymouth District PROGRESSED/CONTINUED

RESEARCH AND DEVELOPMENT REGIONAL INTELLIGENCE $198,602 2 R&D SUPPORT REPORTS PUBLISHED Facilitated into New Plymouth district during Q3 Retail Statistics and Tourism Statistics $2.6 million into district year-to-date

MAJOR EVENTS CAPABILITY DEVELOPMENT VOUCHERS

1 $63,014 EVENT CONTRACTED to New Plymouth/Taranaki-wide businesses, During Q3. Year-to-date: 7 $217,586 in year-to-date

TAPUAE ROA REGIONAL ECONOMIC CURIOUS MINDS PSP PROGRAMME DEVELOPMENT STRATEGY 10 APPLICATIONS RECEIVED IN 2018 FUNDING ROUND ACTION PLAN COMPLETED

INTERNATIONAL MEDIA RESULTS MASSEY UNIVERSITY PARTNERSHIP $6.07m RECOGNISED EAV EARNED IN PARTNERSHIP WITH TOURISM NZ, WITH AWARD NOMINATION YEAR-TO-DATE, ACROSS 177 ARTICLES

District promotional campaign extended during quarter 3

VENTURE TARANAKI: QUARTER 3 2017-2018 3

20 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

1 SECTOR SUPPORT

Venture Taranaki attended the launch of the 1.1 Energy Futures Government’s latest research on Food Trends and their post-presentation discussion session. Venture Taranaki continues to provide facilitation support for the Energy and Industrial Group Venture Taranaki is a committee member of (EIG) – a cluster comprising over 20 businesses the Taranaki Rural Business Network which who operate within the energy sector. More is hosting a series of progressive speaking and information on EIG can be found at networking sessions for the Taranaki rural / www.energyindustrial.co.nz/. farming community. The next session will be held on April 16th and will focus on Alternative Proteins The EIG group met twice during the quarter, with and the Future of Meat. Other members of the a sub-committee focusing on strategy and finance group include Federated Farmers, FMG, LandPro, also meeting during the period. Venture Taranaki Agripeople and Staples Rodway. continues to assist EIG with their diversification strategy and marketing. Key activities undertaken The Taranaki Honey Company Collective by EIG during the quarter were market intelligence (facilitated by Venture Taranaki) met during the sharing and a focus on business opportunities quarter. At the session, group members compared in Fiji. The later included presentations and notes on the new Mānuka definition as well as discussions with New Zealand Trade and Enterprise collective ways to market honey. A new company (NZTE) and Fulton Hogan who undertake has joined the group – Pouatu Honey, infrastructural work in Fiji. The group is also www.pouatu.co.nz. planning to showcase their capabilities at the 2018 New Zealand Water Conference. Venture Taranaki has continued to assist the Food Futures work stream for the Tapuae Roa Additionally, Venture Taranaki continued to assist Action Plan. This extends to a new dimension in the Regional Strategy Energy Futures Lead Team forestry, given the Government’s ‘billion trees’ with their work-stream. This included a detailed initiative. (Note: funding to support Future Foods briefing with other energy leaders in relation to was anounced at 6 April Tapuae Roa Action Plan the Energy Futures component of the Tapuae Roa launch). Action Plan. (Note: funding to support Energy Futures was anounced at 6 April Tapuae Roa Action Plan launch). 1.3 International Education Finally, Venture Taranaki continued to monitor the new Government and any potential policy changes Venture Taranaki facilitates International Edu- and new targets, as well as meet with Taranaki- cation Taranaki (IET), a collaboration between based Oil and Gas Exploration and Production Taranaki education providers operating in the companies in a regular quarterly round table international education sector, with the goal of session on industry developments. growing the sector in Taranaki. The members of IET are New Plymouth Girls’ High School; New Plymouth Boys’ High School; WITT; Pacific Interna- tional Hotel Management School (PIHMS); High- 1.2 Future Foods lands Intermediate; St Mary’s Diocesan School; Sacred Heart Girls’ College; Patea Area School; During the quarter, Venture Taranaki worked on Inglewood High School; Francis Douglas Memorial a regional stand at the upcoming 2018 Auckland College and Spotswood College. Food Show. The stand will showcase Taranaki, with six local companies now confirmed to Quarter three was predominately focused on showcase their products at the three-day event. the international student experience in Taranaki, Venture Taranaki are developing regional branding alongside preparation for Australia New Zealand for the stand, with the design of the stand Agents event (ANZA) and the post ANZA familiari- currently a key focus. sation tour. Venture Taranaki, on behalf of IET also

4 VENTURE TARANAKI: QUARTER 3 2017-2018

21 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1 continued working with the Manawatu, Whanga- “Jen and I wanted to send this special nui and Hawke’s Bay regions on an upcoming trade mission to China. IET has also been working on “Thank You” to you both to recognise enhancing and refining its regional marketing, key your effort in organising the recent messages and collateral. visit to New Plymouth’s schools for • Student Experience the OPEC Group from Thailand. We Student experience is an integral part to the very much appreciate your contri- successful growth of the international education sector in Taranaki. As such, a bus trip was butions which went toward making organised during the quarter for international this a successful visit. We saw a lot secondary students. Attended by 43 students of learning going on within the Thai from five schools, the tour introduced the students to some of the region’s visitor attrac- group and we know they also ap- tions including Pukekura Park, Mt. Taranaki, preciated the interesting range of Tupare and Te Rewa Rewa Bridge and beaches. The tour proved very successful with students schools and learning techniques on reporting positively back to their teachers and display; so we’ll thank you on their schools. behalf as well. This was a very good A welcome event for international tertiary experience all round, one which we students was held at New Plymouth Surfriders’ hope to repeat in future.” Club. Attended by 50 students plus service organisations who work with migrants to International education agent feedback support their settlement, this event also elicited a positive response from students who attended. Consequently, tertiary providers are keen to repeat the event, expanding its reach 1.4 Engineering and Niche and their support. Manufacturing • International Education Agent Engagement IET worked with a number of agents in the Following the earlier demand-supply workforce quarter, hosting several in the region. The requirements analysis completed by Venture agents in question were working into Vietnam, Taranaki, work continued on an update of Thailand and China. The engagement with this analysis which is now in its final stages of agents is essential to establishing and growing completion. The work is timely given the number the relationships that result in international of shutdowns underway this year in the region. students coming into the region. Work has also commenced on the updated version Venture Taranaki and IET continued preparing of the Manufacturing publication, which Venture for the China trade mission scheduled for Taranaki released for the first time in 2017. quarter four (May 2018). The mission is getting significant traction, and in some locations it is expected up to 80 agents and students will attend each event – a very good turnout. Finally, IET prepared for the upcoming ANZA event with 25 agent appointments booked along with three networking functions. Immediately following ANZA, Taranaki will host international education agents in the region. Looking forward, quarter four will also include strategic planning discussions to help set the future direction of the region’s international education collaboration.

VENTURE TARANAKI: QUARTER 3 2017-2018 5

22 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

A component of the extended ‘My Local Secret’ campaign sought user-generated content by inviting local residents to capture and share their secret spots around the New Plymouth district. The extension generated a fantastic array of high quality content that was then promoted across numerous web and social media channels. The top examples feature here.

6 VENTURE TARANAKI: QUARTER 3 2017-2018

23 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

2 VISITOR SECTOR SUPPORT

confirmations etc. targeting those passengers 2.1 Lonely Planet Leveraging flying into Auckland. – New Plymouth District • A billboard was erected in Nelson airport in a tripartite funding agreement between Venture The New Plymouth district-focused campaign to Taranaki, Nelson Airport and Origin Air, leverage the Lonely Planet Best in Travel award encouraging people to fly to New Plymouth based around ‘My Local Secret’ was extended this and visit. quarter. Six more locals completed short videos revealing one of their favourite “New Plymouth secrets” during the quarter. 2.2 Taranaki Traverse • Simon Rees profiled the Len Lye Centre; Last November, Venture Taranaki coordinated • Local artist Jordan Barnes showcased the the submission of an Initial Proposal for the amazing New Plymouth street art; Taranaki Crossing component of the Taranaki • Annalee Muggeridge (YouTube blogger) talked Traverse to be considered as one of two new about the coastal walkway; Great Walks being developed by the Department • Michael Mansvelt - a renowned landscape of Conservation (DoC). The Taranaki Crossing is designer – let us know his favourite garden in the route from Dawson Falls via North Egmont town; and Pukeiti to Oakura. There were 37 Initial Proposals submitted from around New Zealand • Personal trainer Fiona Ross led us through for 30 different walks. A shortlist of 18 walks was New Plymouth’s tranquil walkways; and developed and announced in February 2018. This • Daisy Day (surf instructor) let us see why she shortlist included the Taranaki Crossing with an loves surfing in New Plymouth more than announcement on the two walks that will gain anywhere else. Great Walk status expected by June. These six short videos are being promoted across The Taranaki Crossing was also positioned as a key Facebook and YouTube, geo-targeted to Auckland, visitor industry development project in the Tapuae Waikato and Wellington to the over 35’s and those Roa Action Plan. In December, Venture Taranaki with a travel interest, and re-targeted at those gained funding via MBIE to prepare a business who watched the earlier longer videos to increase case on the Taranaki Crossing along with an initial engagement. assessment of upgrade options for the North Egmont Visitor Centre. The business case was During the quarter, a questionnaire was compiled completed in February before being submitted to and sent to a range of accommodation providers MBIE. The assessment of upgrade options for the as well as the New Plymouth i-SITE for completion North Egmont Visitor Centre is currently underway. by visitors over the summer holiday period. The (Note: funding of $13.34 million for the Taranaki survey has been undertaken in conjunction with Crossing Experience was announced at the Tapuae the Pacific International Hotel Management Roa Action Plan launch.) School, and ran until the end of March. Analysis of the survey will take place over the next quarter. As noted in previous reports, it is expected the Pouakai Crossing, the related one day route from The quarter also saw a range of promotion North Egmont to Mangorei Road, is likely to be undertaken with our strategic partners including: recognised by DoC in its new category of Day • Jetstar Hikes once upgrade work is completed. Funding of $3.4 million has already been confirmed for the A full page advertisement was undertaken upgrade work and is separate to the additional in the Jetstar magazine, as well as a range funding. The complexity of upgrade required has of digital promotion utilising Jetstar’s increased following a new slip occurring across the digital channels such as e-ticketing/booking

VENTURE TARANAKI: QUARTER 3 2017-2018 7

24 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

Holly Hut Track section of the route in February. A the AA, intercity, Sail South Pacific, Sightseeing detour is available via the Kokowai Track, however Tours NZ, and House of Travel event promotions. this adds 1-2 hours walking to the route with much of this being uphill. There are options to Venture Taranaki also attended the Tourism New remediate the track or reroute the track around the Zealand-run RTO workshops in Sydney in quarter slip, however these will not be assessed until after two. These workshops target Australian travel Winter when the slip is expected to be more stable. wholesalers. An inbound sales event for South and South East Asian (SSEA) frontline sales staff held in Auckland was also attended in partnership with New Plymouth i-SITE. The Sydney event 2.3 Visitor Product & in particular reflected strong awareness of the Infrastructure region, on the back of the Lonely Planet award.

Venture Taranaki’s business advisory function met with a number of potential, new and existing 2.5 Building District Profile – entrants to the region’s visitor industry during the quarter, with targeted guidance provided on PR and Marketing aspects of marketing, media, promotion, digital, and industry operations to an environmentally A number of media familiarisations and articles friendly event organiser, four emerging were supported during the quarter, contributing accommodation providers, a hospitality business to a total international media exposure (gained looking to expand and an online travel business. in partnership with Tourism New Zealand) of 177 A tour of a potential new business for the visitor articles worth an equivalent advertising value industry in the food sector was also undertaken. of $6,070,962 for the year to date, well up on the 2016-2017 year-end total of $3,747,956, and demonstrating the multi-year value of the Lonely 2.4 Visitor Industry Planet award. The region has featured in media coverage this Development & Trade quarter in Backpacker Magazine (US), Arrival Magazine, Explorer Magazine, Wilderness Trade familiarisations (famils) – visits by inbound Magazine, Meeting Newz and Motorhomes, industry contacts – continue to reflect the Caravans and Destinations. heightened regional profile on the back of the Venture Taranaki have also hosted a very Lonely Planet award. Significant trade famils successful media famil with M2 Woman Magazine. supported this quarter included: The journalist was in for a weekend stay and • A Meeting News Magazinewriter visiting the enjoyed time at King & Queen Hotel Suites, tours region, resulting in coverage of Taranaki in of Pukekura Park and the Bowl of Brooklands, as this conference and event industry publication well as the Govett-Brewster Art Gallery and Len as well as two spin-off stories in Wilderness Lye Centre and local restaurants and cafes. Magazine; • New Zealand Cruise AssociationCEO and National Manager for Cruise Services from ISS- 2.6 Regional Promotion McKay Limited Captain Douglas Colaco visited New Plymouth in February. Venture Taranaki The summer campaign building on ‘My Local combined with Port Taranaki to show them Secret’ continued to be delivered across the region services available at the Port and the potential for the VFR (Visit Friends and Relatives) market Shorex options. The objective was to enable through January and February extending the focus both to promote the region as a destination to promote the exploration and discovery of some destination offshore. Two cruises for 2020 have of the lesser-known gems throughout the region. already been booked as a result of this visit. While the initial content from Lisa Tamati, Mark In addition, regional content was provided to the Louis and Jo and Dave James continued to be international Boutique Hotels network, ATS Pacific, profiled, additional 360 degree videos and images

8 VENTURE TARANAKI: QUARTER 3 2017-2018

25 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

with more locals were also created. These new Collaborative promotion of the Right Royal Cabaret locals included Belinda and Louise Hunt from festival in conjunction with TAFT has also been Lushington Jackets, up-and-coming photographer undertaken in KiaOra, Air New Zealand’s in-flight Ben D’Ath, Patea Area School Principal Nicola magazine. Ngarewa and Rod and Lynne Pulford from the Stratford Mountain House. Venture Taranaki is also part of a national working group working on the standardisation of event This new content has been pushed on Facebook, assessment, moving from a pure economic impact Instagram and featured on digital billboards in analysis to a cost-benefit analysis in conjunction Taranaki over WOMAD weekend. It also continued with MBIE. to be presented via features in The Daily News through January and February. In addition, Venture Taranaki ran a competition to 2.8 Meetings, Incentives, crowdsource favourite local secret photos using the hashtag #mylocalsecret, which generated Conferences & Events more than 1,000 entries on both Facebook and Instagram, with the winning images being Venture Taranaki helps the region to secure extensively utilised in promotional activity to corporate, community or sporting events or further extend the campaign. These posts were conferences, by providing advice; assistance with boosted across Facebook, geo-targeted to other bids to host; and regional promotional material to regions, while a voting element and prize offer extend the value of such events. extended engagement. Events/Conferences assisted over the quarter Venture Taranaki also worked with More FM and were: The Hits on the Local Secret regional activity. Both • Around the Mountain Cycle Challenge stations ran similar competitions, getting out and • Bay of Plenty School of Music about and asking locals to share their favourite • BMX National Championships, including spot. The campaign received a great response. advertising in the programme Finally, Venture Taranaki took space at the Covi • Celebrants Association of New Zealand Motorhome show in Auckland in March. Held Conference over three days, the show attracts those in the • Classic Motorcycle Annual Rally 2018 Motorhome sector. Venture Taranaki works with • Field Transport Round 1 ORANZ Short Course Wanganui, Manwatu, Horowhenua and Rangitikei • Friendship Force Exchange to promote a ‘Mid-West Wander’ attending the • National Camelia Show and Convention 2018 show as a consortium and producing a combined • New Zealand Araucana Club Annual Show publication. The Trust also advertised in the Motor • New Zealand Garden Trust Conference Caravanner. • New Zealand Jaguar Car Club 2021 National Rally • New Zealand Saxophone School and Festival • Oakura Arts Trail 2.7 Major Events Fund • Oakura Classic Beach Ultimate Frisbee Tournament One event was contracted this quarter - The • Off Road Half Marathon New Zealand Offshore Powerboat Championship • Pastel Artists of New Zealand Convention Series 2018 – New Plymouth Event, bringing the total number of events contracted year-to-date to Note, many of the events and conferences listed seven. will continue to be assisted over an extended period of time, crossing over quarters. Discussions have also been held with two more event organisers considering bringing potential new events to New Plymouth. During the quarter, the Fringe Garden Festival were assisted in their promotion of the festival in a number of ways including leaflets for distribution in Melbourne, advertising and editorial.

VENTURE TARANAKI: QUARTER 3 2017-2018 9

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2.9 Regional Collateral

A total of 43,075 Venture Taranaki visitor at $25,050 were distributed in the district during publications and promotional items were quarter three. This brings the year to date total distributed in response to 97 enquiries in quarter distributed across New Plymouth district to 31,449 three. These items were collectively valued at items valued at $62,161. $71,707.70 During the quarter the Forgotten World Highway Looking specifically at distribution within New guide was reprinted, Surf Highway 45 was updated Plymouth district, a total of 12,553 Venture Taranaki and reprinted, and workMokau started on an update to the

visitor publications and promotional items valued Museums and GalleriesTongaporutu Guide.

Parininihi

WHITECLIFFS WALK WAITARA BEACH

3 SURF HIGHWAY 45 A LITTLE BIT A LEGENDARY 31 Waitara Urenui

4 24 13 11 OUT THERE LANDSCAPE 22 MANUTAHI PARITUTU TAXIDERMY Beyond the waves, the Surf Highway offers some out of the At the northern end of the highway stands the lava outcrop BACK BEACH MUSEUM New ordinary adventures as well: of Paritutu, and the nearby Sugarloaf Islands (24) (Nga Plymouth HILLSBOROUGH TUPARE HOLDEN Motu). Paritutu can be climbed for spectacular views over 14 MUSEUM • Explore the murals of Opunake, stopping at the classic 1 OAKURA BEACH SURF New Plymouth and the coast, while nearby Back Beach Oakura Everybody’s Theatre to catch a film. 72 Tasman Street, WRECK OF THE 20 25 LAKE Opunake. (15) offers many vantage points to watch the sunset over the GAIRLOCH MANGAMAHOE Egmont Village Sugarloaves, catch a wave, or run down the massive black 10 19 STONEY OAKS Whangamomona HIGHWAY 45 • Check the pulse of local creativity at the annual Oakura Inglewood sand hills. FUN HO Arts Trail, held over two weekends in spring. (14) 17 POUAKAI ZOO TOYS Your guide to the touring route around Taranaki’s coastline Taranaki is home to many well-preserved and historically Okato • Climb the 215 steps up the iconic Hawera Water Tower (2) PUKEITI significant pa or battle sites. The immense Koru Pa (25) 9 for fantastic views over South Taranaki. Call into the i-SITE (Surrey Hill Road, Oakura) was a stronghold for centuries 5 at its base for more info. Warea CAPE LIGHT MUSEUM in pre-European times, while Te Ngutu o te Manu (26) Tariki • In Manaia is Yarrows Bakery, a local institution whose (Ahipaipa Road, near Skeet Road) saw a pivotal moment 6 hot bread shop has been fuelling dawn patrols for years. CAPE EGMONT NORTH EGMONT in South Taranaki’s land wars as the base of revered Māori LIGHTHOUSE Pungarehu VISITOR CENTRE Yarrows has become one of the area’s biggest exporters, Strathmore warrior Titokowaru. Both are easily accessed from the Surf MOUNT TARANAKI which might explain the giant loaves of bread on the Highway, while Turuturu Mokai (27) (Turuturu Road, Hawera) Rahotu GLOCKENSPIEL outskirts of Manaia! (23) offers a scale that belies the fact it was created by hand. WILKIES POOLS CLOCK TOWER DAWSON FALLS Stratford • For a different view of the coastline jump aboard Chaddy’s Along with countless sculpted hilltops around the province, VICTORIA PARK Toko Charters’ (22) restored English lifeboat for a tour of the PIONEER VILLAGE PERCY THOMSON these sites provide an insight into the region’s vivid history. GALLERY Sugar Loaf Islands off New Plymouth’s coast. Ocean View 3 Parade, Port Taranaki. Bikes, kayaks and paddleboards can Oaonui 29 8 HOLLARD be hired to explore Breakwater Bay and further afield. DROP A LINE GARDENS The surf highway offers numerous Visitor information, maps, souvenirs, internet facilities, and 12 Kaponga spots for fishing, whether that’s from 15 Eltham accommodation, activity and transport bookings for Taranaki Opunake and all of New Zealand are available from: the Lee Breakwater (22) at Port OPUNAKE BEACH LAKE Taranaki, surf casting off a beach, ROTOKARE Kapuni 26 NEW PLYMOUTH i-SITE VISITOR CENTRE 28 or at one of the lesser-known fly- Te Roti Puke Ariki, 1 Ariki Street, New Plymouth Pihama fishing destinations. There are guides Email: [email protected] Phone: 0800 639 759 Hours: Monday, Tuesday, Thursday, Friday 9.00am-6.00pm. and charters for all types of fishing 21 Oeo – contact the i-SITEs to get more Kaupokonui 23 Normanby Wednesday from 9.00am-9.00pm. Otakeho Weekends and public holidays 9.00am-5.00pm. information. Manaia 27 3 TAWHITI MUSEUM 30 KING EDWARD PARK SOUTH TARANAKI i-SITE VISITOR CENTRE WATER TOWER 55 High Street, Hawera LYSAGHT WATT GALLERY 18 Hawera Email: [email protected] Phone: 06 278 8599 18 2 Hours: Monday-Friday 8.30am-5.00pm. 16 Weekends and public holidays 10.00am-3.00pm. All i-SITES are closed Christmas Day. For more information visit: GET A TASTE OF TARANAKI www.visit.taranaki.info From coffee to fine dining, Taranaki’s hospitality scene is legendary. Choose where to eat at www.visit.taranaki.info/Visit/Eat-and-Drink 7 AOTEA UTANGANUI Patea C7 DESIGN/VT0545/04-18 Photos: Rob Tucker & Trevor Read

WELCOME TO THE RICH IN HISTORY LIGHTING THE WAY THE PERFECT WAVE… TAKE A WALK THE OCEAN’S POWER Taranaki’s history begins with the Mountain’s mythical journey The Cape Egmont Lighthouse (6), at the end of Cape Road, The surf coast that gives the highway its name leads to Surf Highway 45 offers a number of short walks to get you out A drive down Timaru or Weld Roads leads to the shipwreck SURF HIGHWAY from the Central Plateau, brokenhearted after losing a battle marks the western-most point of Taranaki. Built in London, dozens of surf breaks. Almost every road that heads off the and into the landscape: of the SS Gairloch (20) which has been a local landmark for Surf Highway 45, the 105km coastal route around for Mount Pihanga, Historic land battles, the birth of the and shipped to New Zealand in 1865, the lighthouse was highway towards the coast leads to a wave: from gentle the last century. The ship ran aground on Timaru Reef on Taranaki’s coast, connects New Plymouth (1) in the north passive resistance movement, pioneering industrial growth, originally installed on Mana Island near Wellington. In 1881 sandy beach breaks to waves peeling along rocky points. • New Plymouth’s shared-use Coastal 5 January 1903, and has been slowly rusting into the Tasman to Hawera (2) in the south. Between these centres are and a picture-perfect mountain have all contributed to the tower was carried in sections to Cape Egmont, though Surf spots like Stent Road (9), the Kumara Patch (10), Walkway (1) passes artworks, Sea since. The last vestiges of the hull can still be seen dozens of surf breaks, beaches, points of historic and modern-day Taranaki having many vivid stories to tell. These its reconstruction was interrupted by the actions of another Fitzroy Beach (11), Mangahume (28) and Arawhata outdoor cafes, surf breaks and a bike extending from the rock pools just off the coast and closer cultural interest, scenic spots, and cafes in vibrant and stories are best experienced through the many museums on remarkable Taranaki story, that of nearby Parihaka, birthplace Road (12) have become legendary in New Zealand surfing park as it traces the city’s coastline inspection of the reef will uncover more parts of the wreck. welcoming villages. A journey along the Surf Highway for 13km. Don’t miss the Len Lye’s offer, the following are located on or near Surf Highway 45. of passive resistance. The people of Parihaka, in protest to the over the decades, while Kina Road (29) is synonymous While no lives were lost in the grounding of the Gairloch, the traces the route of generations of surfers, but as you’ll iconic Wind Wand sculpture – a confiscation of their lands, used non-violent protest to delay with wave sailing and East End Beach (13) is becoming crew of the Lizzie Bell, an iron barque bound from Wellington read, it offers much more than just surf. The highway • New Plymouth’s waterfront Puke teaser to the nearby Govett- reconstruction until 40 members of the Armed Constabulary known as a kite surfing destination. The region’s surf shops to New South Wales, suffered a far worse fate when she weaves through a number of Taranaki’s stories – the surf, Ariki (1) is a museum, library Brewster Art Gallery and Len Lye were stationed there to ensure its completion. The lighthouse are integral to the story of surfing in Taranaki, and provide ran aground off the South Taranaki coast on the night of the landscape, the rich history, and the creativity, all the and i-SITE providing information Centre (1). first beamed out from Taranaki in 1881, and was automated everything from custom boards hand-crafted for local 24 July 1901, when twelve of the eighteen crew perished. while under the watchful gaze of Mount Taranaki. about the city’s past and present. in 1986. The story of the lighthouse is told at the Historic conditions, great coffee, expert advice and hire boards and • Te Rewa Rewa Bridge (4) across A memorial, featuring the ship’s anchor (21), which was A fascinating guided walk is also Cape Light and Museum (5) located 4km further north at wetsuits. There are shops strategically located all around the Waiwhakaiho River is a popular recovered in the 1960s, can be found on Puketapu Road, available – book at the i-SITE, 1 Ariki the end of Bayly Road, and open Sat-Sun, 11am-3pm or by the coast. destination, as is the nearby Lake 9km south of Opunake. St, New Plymouth appointment. Rotomanu and the Taranaki Cycle • Tawhiti Museum (3) and Traders & Cape Road is also home to some of the best examples of a …AND BEACH Park (31), further along the Coastal Whalers has been repeatedly judged geographic feature unique to Surf Highway 45 – the small Sheltered beaches between the surf breaks offer a safe Walkway towards Bell Block. one of the country’s best museums, rounded hills created by ancient lahars flowing from Mount and often secluded place to swim or sunbathe. Fitzroy • The Nowells Lakes Walkway (16), and has to be experienced to be Taranaki. These hills are also visible from the Highway, (11), East End (13), Oakura (14) and Opunake (15) on Rifle Range Road off Manawapou believed. 401 Ohangai Rd, just out and several still display the earthworks of ancient Māori beaches are popular with surf lifesaving patrols over Road Hawera, offers a short walk of Hawera. Please check opening fortifications. summer, while Ngamotu Beach (22) and Kaupokonui through a growing bush area. hours/days. Beach (30) near Manaia offer sheltered swimming spots, • The 7km Opunake Walkway (15) has • Striding along the Surf Highway as it great for kids. numerous access points around the passes through Opunake is a bronze town, and offers it all – clifftop views, sculpture of legendary New Zealand historic sites, lookouts and a lake. 1500m runner Peter Snell (15), who • Stony River (Hangatahua) was born in the town in 1938. Walkway (17) starts at Hickford • Aotea Utanganui (7), the Museum Place in Okato, and offers historic and scenic points of of South Taranaki, tells the stories of interest over its 4.4km length. the area in central Patea. 127 Egmont • At low tide, the coastal walk from Waihi Beach to Ohawe St, Patea. Beach offers a unique perspective of the coast, (18) from • The Maui Production Station (8) rockpools to old tram rails. visitor centre offers an inside look • South of Oakura is Lucy’s Gully (19), with walks through at the workings of the Maui offshore exotic plantings and native forests on the Kaitake ranges. platform. Tai Road, Oaonui, 8km north of Opunake, open daily 8am- There are many more walks throughout the region – pick up a 5.30pm. copy of Taranaki – A Walkers Guide from the region’s i-SITEs For much more information head or download from www.visit.taranaki.info to www.visit.taranaki.info

The updated Surf Highway 45 touring route guide.

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3 PROJECTS

grow talent for the region internally. It does this by 3.1 Tapuae Roa - Regional working with employers, marketing and promoting Economic Development to prospective talent; developing resources for prospective residents and talent as well as the Strategy (Make Way for region’s employers to use when recruiting; online tools such as the free regional jobs website; and Taranaki) understanding and monitoring trends and research related to talent. The Tapuae Roa Regional Economic Development Engagement with employers during the quarter Strategy is nearing the conclusion of the continues to show that a number of employers action planning stage and will move into the and sectors are continuing to experience issues implementation phase during quarter four. Council finding talent for key roles, particularly those where adopted the Action Planon 26 March 2018 with very specific skills are required. Venture Taranaki South Taranaki District Council and Stratford District continued to promote the region offshore and out- Council also adopting the plan during extraordinary of-region during the quarter to support attraction of meetings in March. Venture Taranaki has provided these key skills. assistance with several sections of the Action Plan. Venture Taranaki assisted the development of the A ministerial launch is scheduled to take place on Talent, Enterprise and Innovation section of Tapuae 6 April with potential announcements on funding Roa’s Action Plan during the quarter. This included support from the Ministry of Business Innovation preparing an application for funding to support and Employment (MBIE) team for feasibility studies an initial feasibility study on the establishment and business case development of several major of innovation precincts / hubs in Taranaki. The projects defined as short term interventions in the innovation precincts and hubs are intended to Action Plan (since occurred with approximately both provide and encourage innovation, as well as $20 million of funding support announced). All improve and broaden education and engagement regional growth funds are reliant on leveraged across the Taranaki region. (Note, funding to support (both in-kind and cash) from regional support talent, enterprise and innovation was stakeholders including Councils. This matched announced at the 6 April Tapuae Roa Action Plan funding will become increasingly important as the launch.) larger Government growth funds become highly contestable inter-regionally. The redeveloped live + work section of Venture Taranaki’s website, www.liveandwork.taranaki.info, The launch at the beginning of quarter four should is providing easily accessible information on Taranaki mark the conclusion of the consultancy driven as a place to live and work; information on living phase of the regional economic growth strategy in the region; and also information on working in with the LEAD team, and redefine responsibility for the region. This completely refreshed jobs vacancy the implementation of the extensive Action Plan. If section which regional employers can freely access successful, the implications for Venture Taranaki’s to promote vacancies within the region, saw an work programme for the next twelve months is average of 150 jobs live on the site at any one time extensive. Venture Taranaki will ensure its structure during the quarter (about 85 percent of these in continues to deliver an efficient and effective model New Plymouth district). of service delivery responding to the changing demands of these new Government initiatives. The www.liveandwork.taranaki.info site also houses stories of those who have chosen Taranaki as their home, with new stories loaded regularly. This 3.2 Talent & Skills gives potential residents a great insight into life in Taranaki from a range of perspectives. Three new Venture Taranaki’s focus on talent includes work on case studies were added during the quarter. attracting and retaining the talentthe region needs to achieve its growth potential, inspiring talent and supporting the initiatives of those looking to

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3.3 Innovation 3.4 Inward Investment &

Innovation is also a key focus of the Tapuae Roa Attraction Action Plan with talent, innovation and skills viewed as one of the four foundations of the plan. (Note, funding to support talent, enterprise and innovation Enhancing the investment infrastructure in Taranaki was announced at the 6 April Tapuae Roa Action is another key focus of Tapuae Roa. A bid for Plan launch.) funding for a feasibility study on setting up a Regional Investment Fund has been made. With the ongoing objective of strengthening the innovation environment in the region, Venture Venture Taranaki has been working with a group Taranaki has taken on the role of regional partner of investors to investigate the establishment of a for Techweek’18 which is being held from 19-27 substantial new business in North Taranaki. Venture May 2018. This is a national event with events Taranaki has provided advice and information on across the country, with Venture Taranaki curating the sector in question, facilitated introductions to the Taranaki programme of events. key Government officials and ministries enabling the potential investors to determine a clear pathway As the event draws closer, Techweek’18 Taranaki is towards establishment. gathering speed and events are being refined and published ongoing. Submitted events cover a wide Discussions are also continuing with New range of subjects - from technology’s vital role in Zealand Trade and Enterprise (NZTE) regarding environmental monitoring in the region, women encouraging foreign direct investment into Taranaki in Tech and learning to fly a drone through to opportunities. innovation workshops and a Hackathon looking at solving problems for the community. The breadth of events shows Taranaki is well and truly engaged 3.5 Infrastructure with innovation that’s good for the world.

A full calendar of events will be released shortly Venture Taranaki supported the Connectivity and giving details of all Techweek’18 Taranaki events. Accessibility Action area of Tapuae Roa. This plan area considers the range of infrastructure necessary Venture Taranaki is part of the organising team of for the region’s continued economic development. Hack’Taranaki. This is Taranaki’s first hackathon (Note, funding to support State Highway 43 was event and is being held at Manifold with announced at the 6 April Tapuae Roa Action Plan sponsorship provided by Datacom. Hackathon’s launch. The tourism and economic development are similar in structure to Startup Weekend in that opportunities resulting from improving the condition teams are formed to address a specific issue over a of SH43 benefit the whole region.) weekend. Venture Taranaki has progressed its discussions with Manawatu-based specialist business development organisation, BCC (Building Clever Companies) during the quarter. BCC has been contracted by Callaghan Innovation to deliverincubator services in Taranaki. Planning for a business start-up competition programme, assisting innovative new business ideas into potential high-growth start- ups, as well as a support and growth programme targeting companies that are starting, need to grow or need support in gaining outside investment is currently being finalised.

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4 PARTNERSHIPS

4.1 Regional & Government Solutions, was well attended by about 30 people. The kōrero touched on a number of different Partnerships topics, including HR law and employer obligations, contracts, and structures for start-ups. A customer Negotiations have been ongoing with MBIE to survey went out to the attendees following the confirm funding support for the Tapuae Roa Action event, and all respondents rated the event either Plan and associated investments. There was broad Very Good or Excellent. The next networking hui is regional support for Venture Taranaki to become scheduled for April 2018 and will be sponsored by the portfolio manager for the majority of the work BTW Company in New Plymouth. programmes. The group also has a Facebook page, which now has Taranaki Regional Council (TRC) wished to lead on 82 followers, and is used to share information about a forestry initiative and the Taranaki Māori Trust support and opportunities, as well as client success Board, with the support of the regional Iwi Leaders stories. Forum, will continue to drive the Māori economy interventions. 4.3 Massey University Funding criteria continue to evolve and Venture Taranaki is assisting a number of national Partnership working parties currently reviewing the regional development landscape. The Massey University (MU) partnership with Venture Taranaki has the primary objective of connecting Taranaki industry, business and 4.2 Māori Economy organisations with MU expertise and knowledge to encourage greater development, innovation and growth in the region. He Toronga Pakihi ki Taranaki (The Māori Business Network of Taranaki) continues to grow, with the A highlight of the quarter was the Partnership subscriber list up to 132 people by the end of March Excellence finalist accolade awarded to Venture 2018. The hui in February, sponsored by Legal Taranaki at Massey University’s Defining Excellence

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Awards Ceremony at Parliament Buildings on 21 research projects. The programme is funded by March, in recognition of the Venture Taranaki MBIE and coordinated by the Office of the Prime – Massey University Partnership’s intent and Minister’s Chief Science Adviser. achievements. Venture Taranaki opened the 2018 PSP Taranaki Following on from work in quarter two, the funding round late in quarter two, with applications partnership’s business development manager (BDM) closing mid-March 2018. The funding round continued to work on several longer term and was marketed in a number of ways including wide-ranging regional or industry-wide strategic announcement and update emails to all schools, projects. This has included work related to the food iwi, hapū, and other interested parties in the sector, harakeke, native botanicals, industrial hemp, region; social media promotions on the ‘Taranaki environmental and Māori environmental interests, Like No Other’ Facebook and Instagram accounts; innovation and tech training, scholarships and the project manager actively approaching schools regional recycling and waste reduction. and other groups with perceived interest; partner organisation, Taranaki Regional Council marketing Work also continued on preparation of funding the round through their social media, their SITE applicationsto support projects sitting within these magazine, and active encouragement from their areas, alongside ongoing support to previously education officer towards schools they are engaging funded projects. A proposal to Energy Education with; and finally the funding round was also Trust NZ (EETNZ) for Massey University and one promoted nationally via the Curious Minds social of the region’s energy sector companies to work media and website. in partnership on research and development was granted co-funding of $62,400 in January. Throughout the funding round there were 30 expressions of interest, an increase on previous Looking to individual organisations and businesses, rounds, and hinting at the increasing awareness of year-to-date the BDM has worked with 65 clients, five the programme amongst Taranaki communities. of these being new clients added during the quarter. Fourteen of the 30 EOIs came from organisations Forty-one of these clients have received, or are that had no previous engagement with PSP. More receiving, some form of research and development, than half of the EOI were received from North or resource/advice assistance, from MU. Taranaki with the remaining coming from South The partnership also provided vital support into Taranaki and Stratford districts (noting that many internship and student projects in industry during projects work across multiple districts). the quarter. Two food processing related Callaghan With support from the project coordinator ten Innovation-funded internships in Taranaki were applications were submitted by the application resourced with Massey students, three other deadline. The assessment process took place undergraduate students placed in other internships in quarter three. Announcements of successful and work ongoing on further placements. projects is expected early quarter four. Finally, the MU partnership continued to support Previously funded projects also concluded during the Young Enterprise Scheme (including mentoring the quarter, with many also examining ways to a team) and other talent development initiatives, continue their projects beyond the PSP funded as well as make an application to the most recent stage. Taranaki Curious Minds Participatory Science Project funding round. Additionally, the PSP project coordinator worked with PSP projects to develop two Techweek’18 Taranaki events focusing on technology used by 4.4 Curious Minds community based science investigations. Participatory Science Platform Programme

The Participatory Science Platform (PSP) programme, facilitated by Venture Taranaki in region, encourages scientists and communities to engage in collaborative, community-based science

14 VENTURE TARANAKI: QUARTER 3 2017-2018

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SPECIAL FEATURE: PKW WHENUAMAGAZINE ARTICLE

A region shaped by events Several events just a few weeks apart give workplace should the worst happen - individuals, a good insight into what makes Taranaki households and businesses need to be ready. unique, and provide a reminder of the Not so well understood is the planning required to value of strategic thinking. make the most of our region’s big events. These events offer an opportunity to showcase our region; to tourists In the space of just a few weeks, Taranaki will have here for a weekend and to those looking to move their attracted a number of diverse international visitors whanau or their businesses here. They also provide – some more welcome than others. The first was opportunities for businesses, whether by increasing ex-cyclone Gita, which slammed into our region with profile, impressing potential customers, or convincing considerable force in February. Whilst we got off much future staff that Taranaki is the place to be. more lightly than our Pacific neighbours, Gita still caused widespread power outages and a significant break in the What we do after the event can also make a big water supply of New Plymouth. difference. The recovery phase in emergency management is often more difficult than the event The next group of visitors are much more welcome, and itself, as businesses work to get back to normal. For include international performers, top sportspeople, and prospective employees considering a move, a follow-up even cherished cars, as thousands of visitors arrive in message after an event like WOMAD could make all the the region for our major events including AmeriCarna, difference. WOMAD and the ITU World-Cup Triathlon event. These events offer a bright contrast to the destruction of fierce Venture Taranaki has a number of services to help weather, and a chance for people to celebrate Taranaki’s businesses with their strategic thinking and planning, legendary lifestyle, to be inspired by the best, and to from accessing a business mentor, through to vouchers share our stories and manaakitanga with the world. for eligible businesses to develop their capabilities. To find out how we can help you and your business be Whatever comes our way, we need to be ready. ready for the next event to hit Taranaki, get in touch. Preparedness for emergencies is widely understood. From having several days’ of water and supplies on hand, having power generation facilities available to Venture ensure milking can continue, or a safety plan for your TARANAKI Te Puna Umanga

An initiative of the New Plymouth District Council

Taranaki’s Regional Development Agency | 9 Robe Street, New Plymouth | T: 06 759 5150 | [email protected] | www.taranaki.info

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5 ENABLER ACTIVITY - BUSINESS SUPPORT

Venture Taranaki has facilitated $308,848 of 5.1 Growth Business Support capability development vouchers into Taranaki businesses year to date (across 183 vouchers). Venture Taranaki provides growth business Demand for support via capability development support to businesses who have a desire to vouchers is very high, and is likely to outstrip grow and expand, and in doing so increase their supply. A further $20,000 in voucher funding was contribution to the region’s economy. The services able to be secured by Venture Taranaki during the provided by Venture Taranaki help the region’s quarter, for distribution to Taranaki businesses growth-oriented businesses realise opportunities, prior to 30 June 2018. overcome challenges and be world-class businesses (whether they are domestic oriented, export oriented or both). “The skills I learnt on these courses are absolutely invaluable to me - I Venture Taranaki worked with an additional 26 growth oriented clients in quarter three taking would not be the person I am today the year-to-date total to 193 growth oriented without them. Secondly, we are clients. Of these, 76 percent (146) are New working on governance within the Plymouth district businesses. Engagement with these businesses often focuses on discussions business and are using the vouchers and plans around future planning, activity and to arm all the members of our family growth, innovation, research and development business with the skills required to and management / owner capability, leadership and skills development, as well as access and run an effective board. Like many connecting through to Venture Taranaki’s networks things, governance is a work in and partner agencies. progress. Thanks to the training Satisfaction with the service is very high, securing each step is a step closer is a step in a net promoter score of +82 from the New Zealand Trade & Enterprise (NZTE) initiated customer surveys the right direction”. (net promoter scores range from -100 to +100 with a score of +82 considered to be very high). “We do appreciate the support we receive from Venture Taranaki via Venture Taranaki is the Regional Business Partner Taranaki for central Government and facilitates the Capability Development Voucher access to central government’s Callaghan Scheme. It has been very beneficial Innovation’s research and development funding to the growth and development of programmes and services and NZTE’s Capability Development Voucher Scheme and services into our business.” the region as part of this role. “The strategic planning course I During the quarter, Venture Taranaki facilitated $63,014 of capability development voucher support attended with support from Venture into New Plymouth district businesses, or businesses Taranaki has been excellent in defining themselves as Taranaki-wide (across helping me develop the business and 41 vouchers), bring the total investment in the district year-to-date to $217,586. (The Capability constantly improving the way we do Development Voucher Scheme provides up to 50% things.” co-funding support towards business management Voucher Client Comments / owner capability upskilling with the intent of strengthening and growing our region’s businesses.)

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33 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

Demand for management / owner business “Our latest Growth Grant report capability support remains particularly strong from the manufacturing sector; construction and trades; shows that the R&D department has professional, technical and scientific services been too successful and we are out sectors; and the agriculture and primary sector. pacing our production plant. We Current trends show a strong demand for business planning, strategy, health and safety, governance, have a plan to resolve this and will digital marketing, human resources, managing mean employing a lot more people resources and leadership. which I hope Callaghan Innovation Businesses are also referred to wider services see as a good result of their Growth including NZTE for additional export oriented Grant funding. I also have plans to support (four referrals over quarter), and 12 clients referred to Callaghan Innovation services this employ another 2 scientists into our quarter. R&D team.” Moving to research and development activity Feedback on Venture Taranaki’s R&D services (R&D) including Lean business and innovation services support, activity continued steadily across Venture Taranaki also continued to work with the quarter. Venture Taranaki developed six the pipeline of research and development, and/ research and development engagement plans for or innovation funding applications. There were Taranaki businesses during the quarter, bringing six applications in progress at the close of quarter the total year-to-date to 57. A high proportion three. Advisors also worked with customers of these businesses are located in New Plymouth who were not eligible for Callaghan Innovation district. funding support, helping them find alternative opportunities. As a result, Venture Taranaki Venture Taranaki facilitated $209,602 of Callaghan supported applications to Sprout, EECA, Waste Innovation funding support into Taranaki Minimisation Fund, Export Bridge and Taranaki businesses during the quarter, 89 percent of which Electricity Trust. Consequently, $12,000 of EECA was awarded to New Plymouth district businesses. funding had been secured by the end of the The funds awarded were for a range of activities quarter, with further funding outcomes pending. including research and development projects; bringing research and development talent into During the quarter Venture Taranaki continued to businesses; Lean business and first forays into stay in regular contact with Callaghan Innovation’s research and development. sector support staff, attending monthly Energy and Environment Hui meetings and talking Year-to-date, Venture Taranaki has facilitated with key contacts from the AgriTech and Digital $2,714,175 of research and development and sector teams, working towards the co-hosting innovation supportinto Taranaki businesses. Of of a number of targeted events. The quarter this New Plymouth district businesses have been also saw an update with the Māori Economy awarded $2,628,615. Research and development team at Callaghan Innovation, working through activity and grant traffic continues to be very high, mutual customers’ needs. Venture Taranaki also well in excess of that for the previous year. promoted a number of opportunities to clients that came via Callaghan Innovation. Subsequently, “Thank you for your time today. It three clients have registered for the Internet of was an excellent opportunity to look Manufacturing delegation to the USA and one at the technical challenges ahead client is now a finalist in the Hi-Tech NZ Awards. and you gave us some great insights Finally, Venture Taranaki welcomed a visit from our Regional Business Partner contract managers into a number of solutions. We from Callaghan Innovation and NZTE. This was hugely appreciate the support from an ideal opportunity to get an update on central Venture Taranaki – both financial and Government activity, and to put forward ideas and views on future activity and support. conversational.”

VENTURE TARANAKI: QUARTER 3 2017-2018 17

34 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

SPECIAL FEATURE Beefing up jerky production

Funding for a summer intern enabled got involved in learning the electronic interface one of New Zealand’s largest beef jerky for their new ovens, along with new product manufacturers, ANZCO Gourmet Foods, to development and sensory testing,” he says. solve a manufacturing challenge. Nick is about to embark on his final year Nick Walker, a Bachelor of Food Technology at university, which will be project based. (Process Engineering) student studying at “Massey University has arranged for my 4th Massey University spent his summer break in year project to be done with a Hawera-based Taranaki, working as an intern for one of New business. So I am looking forward to adding Zealand’s largest beef jerky manufacturers, value to another company in Taranaki,” says ANZCO Gourmet Foods, located in Waitara. Nick. During his three-month internship, Nick was Jacques Jordaan, ANZCO’s Operation Manager, tasked with investigating how ANZCO can says having an intern funded by Callaghan achieve a more consistent and improved Innovation enabled staff to be more effectively cooking cycle for their beef jerky products. positioned. “Having a dedicated resource freed up other staff and allowed Nick to focus “I really enjoyed working at ANZCO and being on a successful outcome. This equated to an able to apply course work into real world immediate saving to the business of approx. practice. The project allowed me to research $20,000” says Jacques. all sorts of elements that make up the cooking of jerky, like marination time, different binding ANZCO believes it is important to support ingredients and oven placement,” says Nick. the development of students and the R&D Experience grant they received was of benefit He enjoyed the aspect of putting forward to them. engineering ideas to help solve real life issues. “It feels good to know that I helped them solve “Students have a willingness to learn and some issues and improve the cooking cycle,” develop their skills in the real world. They says Nick. can also provide a fresh approach and add value in areas of a business that may not have In addition to his assigned project, Nick been explored due to lack of resources,” says was also invited to be involved in other Jacques. opportunities. “While I was on my placement I

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35 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

Venture Taranaki facilitates the Business Mentors 5.2 Foundation Business New Zealand (BMNZ) programme in Taranaki. Support The services match the skills of experienced volunteer mentors with clients across the three Foundation business support offered by Venture services on offer – business mentoring, community Taranaki ranges from services to support pre-start- organisation mentoring and business start-up up businesses through to those catering to well- mentoring. established successful businesses. These include Twelve mentor matches were made during the Venture Taranaki’s business start-up support quarter across Taranaki, 10 of which were for New service, business advisory support, and mentoring Plymouth district or Taranaki-wide businesses. programme. Thirty matches have been made year to date, 24 of Quarter three saw a continuation of the strong which are New Plymouth district matches. demand for business support with the advisory team managing 1,222 client interactions across “Our mentor quickly identified Taranaki, 915 of which were within New Plymouth several areas in our business that district or businesses describing themselves as needed work so that we can better Taranaki wide. Year-to-date, New Plymouth client interactions number 2,740. Across Taranaki, the manage the continued growth of number of client interactions stands at 3,603 year- the business. … Even at our initial to-date. meeting I felt that she was interested Demand continues to come from all sectors, with and had great knowledge to support businesses approaching Venture Taranaki for a wide range of reasons and support requests. us in moving the business forward.” “Thanks for the time yesterday. Your “Our mentor is honest, efficient, and understanding of our business and its easy to work with. She is candid challenges and opportunities is noted while being upfront and constructive. – it makes things so much easier.” Very supportive and encouraging. Wonderful!” “Thanks for your support. It is good to catch up and figure out our next “I couldn’t be happier with how steps. We have a great team on useful and valuable [mentor’s name] board with us … we are learning mentoring is.” every day.” Feedback from mentor programme clients “I smile now and have confidence in Individuals considering a business start-up can access Venture Taranaki’s confidential start-up what I am doing and the monitoring advisory service which provides support in keeps me honest about the progress developing ideas, business planning, and which of the business.” encourages an informed, considered approach to business start-ups in the region. The service is Business advisory client feedback offered in New Plymouth, Stratford and Hawera. Additional to the business advisory team, Venture The start-up clinic service in New Plymouth Taranaki also provides resource support via catered to 48 client appointments during the its website and through its social media and quarter, bringing the year-to-date total of client newsletter channels. Two editions of Venture engagements via the service to 173. Sectors in Taranaki’s Enterprise News were released over which quarter three potential start-ups in New the quarter, each providing subscribers with Plymouth district would operate in the hospitality, information on events, successes and news of visitors, energy, education, personal services, relevance to the business community. manufacturing and retail sectors.

VENTURE TARANAKI: QUARTER 3 2017-2018 19

36 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

SPECIAL FEATURE

Authentic aspirations meet mentoring

Producing authentic Texas BBQ flavours in Wanting to build market profile, Ash turned Taranaki was not without its challenges, but to Venture Taranaki’s business mentoring a Business Mentor has been able to help one programme, a service he had used previously in rapidly emerging company to overcome these, a different role. and set its sights on growing beyond the region. “Teaming up with a mentor has enabled us “We have faced so many challenges, from to better identify, connect with and reach bringing a new product into a crowded market our target markets. One of the big areas was to having to develop new types of packaging, product placement to ensure we maintain our navigating all the necessary certifications and position as a premium product, a simple thing coming up with a brand new business model,” that impacts our bottom line both now and well says the company’s founder Ash Peters. into the future.” “Every process and procedure we have to “Having a mentor has given us fresh eyes create, learn or teach ourselves, and it’s been a on what we are doing and provides another very steep learning curve!” perspective to our business. Their knowledge and experience is different to ours, and that The business, Texas BBQ Foods, produces has really helped us to look further into new a range of barbecue-inspired small goods opportunities,” Ash says. spanning beef, pork, cheese and butter. It’s family owned and operated from a rurally- Fully exploring these new opportunities will located, purpose-built facility near Inglewood. be critical to the company’s ambitions, which While this may seem about as far from the should see it scaling up both production plains of Texas as you can imagine, the flavours and its customer base to engage the global have been honed to be authentic, and are marketplace. With amazing and authentic passing the taste test in a growing number of flavours, and support from the business international markets. mentoring programme, that looks like a given. “We want to produce some of the world’s “A business mentor brings so much to the table, best Texas BBQ products with some of the regardless of whether you’re a brand new best beef and pork in the world. Our methods business or an old one.” are authentic and our raw ingredients are the best we can find which creates a flavour that’s getting rave reviews.”

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37 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

“I recently took my seedling of a • Taranaki Trends The next edition of Taranaki Trends is underway business idea to Venture Taranaki and will be released in the near future. hoping to get some feedback and guidance on whether or not it • Visitor Statistics For the 12 months ending December 2017 might be worth pursuing. I found (latest available statistics at end of quarter), the resulting conversation to be 313,815 visitors stayed in commercial informative and extremely positive. accommodation (e.g. motels) in the Taranaki region resulting in over 652,373 guest nights. I left with a resolve to complete a more formal business plan and take Visitor arrivals increased 6.1 percent, however visitors stayed for a shorter duration than the the steps suggested. A great service, previous period (-1.7 percent), resulting in an thank you.” increase of overall guest nights of 4.3 percent (relative to the previous 12 months). This New Plymouth start-up client feedback compares favourably with a 2.5% increase in guest nights nationally. Fifty-four appointments with the start-up advisory service were taken up across Taranaki during Eighty-two percent of Taranaki’s commercial the quarter, bringing the total number of client guest nights came from domestic visitors, with interactions for the service to 203. the remaining 18 percent being international visitors. International guest nights have Continuously working to ensure high awareness of continued to experience significant growth, services amongst the business community, Venture increasing 22.6 percent for the 12 month ending Taranaki undertook a range of marketing activity 31 December 2017 (relative to previous period). during quarter three. This included newsletters, Again, this compares favourably against the 4.8 marketing publications, website content, social percent increase in international guest nights media posts, case study development and release, nationally. videos, attending events and networking. Venture Taranaki staff also regularly speak at, and attend, On a District basis, New Plymouth experienced business networking events and business group a growth in guest nights of 3.4 percent. More events. information about visitor statistics for Taranaki can be found at http://about.taranaki.info/

Taranaki-Facts-And-Figures/Tourism-Statistics. 5.3 Regional Intelligence aspx.

& Communications 5.4 Web and Digital Profile Venture Taranaki produces a range of economic information and statistics for the business Quarter three saw a total of 50,642 unique visitors community and regional stakeholders. Quarter to Venture Taranaki’s www.taranaki.info site three activity included: (decrease of 31.7 percent from last quarter), viewing a total of 151,482 pages. The decrease is due to the • Retail Statistics cessation of the substantive campaign (for Lonely Venture Taranaki commissions independent Planet leveraging) in November and December 2017 retail statistics that help to track retail spend which drove people to the website. Of the visitors via EFTPOS and credit card every six months. for the Visit site, 16.87 percent were viewing from The latest figures released, the six months to New Plymouth, 71 percent were elsewhere in New December 2017, showed $478.5 million was Zealand, and 14.6 percent from overseas. spent in New Plymouth District (up 6.7 percent); A social media campaign (eight posts, of which four $106.12 million was spent in South Taranaki; and were boosted) to drive visitors to the redeveloped $47.89 million was spent in Stratford District (up sections of Venture Taranaki’s website, had great 2.4 percent). Further details can be accessed at results and engagement. http://about.taranaki.info/Taranaki-Facts-And- Figures/Retail-Statistics.aspx.

VENTURE TARANAKI: QUARTER 3 2017-2018 21

38 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

The Trust’s social media profile maintained its growth over the quarter: • The flagship Taranaki - Like no other Facebook page grew 6 percent to 53,987 followers. • The business-oriented Venture Taranaki Facebook page grew 4.8 percent to 1,917 followers. • Twitter grew 1 percent to 5,771 followers. • Instagram grew 22 percent to 8,421 followers. • The international education focused Study Taranaki Facebook page grew 39.5 percent to 53 followers. • The Study Taranaki Instagram account grew 104 percent to 125 followers.

Eight email newsletters were distributed by Venture Taranaki during the quarter across economic development and business; the visitor sector; international education and the energy sector.

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39 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

6 KEY PERFORMANCE INDICATORS

PROJECT/SERVICE KPI STATUS 2017-18 YEAR AS AT END OF QUARTER 3 1. SECTOR SUPPORT AND SERVICES 1.1 Energy Futures • Provide support to an energy and industrial Achieved focused cluster • Provide support into promoting the strengths, Achieved capabilities and activities of the sector including opportunities for diversification • Investigate and progress an energy futures Ongoing initiative • Monitor trends that have potential for Ongoing economic benefit to Taranaki 1.2 Food Futures • Progress initiatives with added value impact Ongoing for the primary sector and food production, including opportunity identification for future foods • Build Taranaki’s profile as a food production Ongoing region • Provide support to regional clusters and Ongoing networks in food production 1.3 International Edu- • Provide support to Taranaki’s international Achieved cation education sector cluster • Investigate and facilitate progression of Ongoing initiatives including marketing and promotion to grow international education sector and build Taranaki’s profile as an international education region 1.4 Engineering and • Undertake demand-supply workforce Underway Niche Manufacturing requirements analysis 2. VISITOR SECTOR SUPPORT 2.1 Lonely Planet • Advertising campaign planned and initiated; Underway Leveraging – Website and social media campaign goals New Plymouth District attained • Strategic alliances undertaken with key Ongoing partners e.g. AA, Air NZ and Jetstar • Equivalent Advertising Value (EAV) of $350,000 Achieved achieved for PR • Visitor survey undertaken at i-SITEs to establish Underway baseline data 2.2 Taranaki Traverse • Support development of the Taranaki Traverse Ongoing 2.3 Visitor Product and • Support and/or facilitate development of Ongoing Infrastructure product and infrastructure 2.4 Visitor Industry • To support visitor industry operator capability Ongoing Development & Trade development • To inform, liaise with and provide regional Achieved information to key stakeholders • To undertake two initiatives aimed at the travel Underway trade

VENTURE TARANAKI: QUARTER 3 2017-2018 23

40 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

PROJECT/SERVICE KPI STATUS 2017-18 YEAR AS AT END OF QUARTER 3 2.5 Building District • To utilise campaigns, PR, advertising and other Ongoing Profile – PR & marketing tools to promote New Plymouth Marketing district, both internally to district and externally to district, as a desirable place to live, work and play 2.6 Regional Promotion • To promote Taranaki utilising a range of Ongoing marketing initiatives and channels 2.7 Major Events Fund • Attract or retain four major events meeting Achieved NPDC criteria (>100 points) based on $700k event fund 2.8 Meetings, • To assist the sector in bringing and/or Ongoing Incentives, Conferences supporting the delivery of six conferences and Events meetings or events to Taranaki 2.9 Regional Collateral • Produce collateral (soft or hard) to promote Achieved Taranaki and distribute through appropriate channels 3. VISITOR SECTOR SUPPORT 3.1 Make Way for • Participation in project management group Achieved Taranaki – Tapuae Roa • Adoption of the economic investment plan Not applicable for Regional Economic De- quarter velopment Strategy • Adoption of Taranaki Destination Strategy Achieved (incorporated component of Make Way for Taranaki Regional into combined Action Economic Development Strategy Plan) 3.2 Talent and Skills • Undertake initiatives for the attraction,- re Ongoing tention, inspiration and growth of talent 3.3 Innovation • Support innovation based opportunities Ongoing including a potential innovation and knowledge hub 3.4 Inward Investment • Support and/or investigate inward investment Ongoing and Attraction 3.5 Infrastructure • Respond and proactively advocate for Achieved improved Taranaki infrastructure, working collaboratively with other stakeholders 4. PARTNERSHIPS 4.1 Regional and • Engage and inform policy development Ongoing Government Partner- (including long-term plans) affecting the ships Taranaki economy 4.2 Māori Economy • To support projects and opportunities rele- Ongoing vant to the Māori economy 4.3 Massey Universi- • Continue partnership with Massey Achieved ty Partnership University realising projects and activities of benefit to Taranaki economy and business community 4.4 Curious Minds • To successfully deliver Curious Minds Par- Achieved Participatory Science ticipatory Science Platform programme in Platform Programme Taranaki

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41 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

PROJECT/SERVICE KPI STATUS 2017-18 YEAR AS AT END OF QUARTER 3 5. ENABLER ACTIVITY - BUSINESS SUPPORT 5.1 Growth Business • Engage with, and provide active assistance Ongoing Support to, businesses and organisations with growth potential, including those with international markets • Facilitate $1 million investment into Taranaki Achieved: $3,023,023 businesses and organisations for capability building, research and development and/or innovation support • Develop a map of Taranaki exporting activity Underway 5.2 Foundation • Provision of on-demand business advisory ser- Achieved Business Support vices and resources • 42 mentoring matches 30 Matches • Minimum of 200 business start-up engagements Achieved: 203 business start-ups 5.3 Regional • Publish regional economic information and sta- Achieved Intelligence and tistics of relevance Communications 5.4 Web and Digital • Maintain and develop Taranaki’s web portal, Ongoing Profile www.taranaki.info • Maintain and develop connections across social Ongoing media • Continue to implement digital initiatives across Ongoing Venture Taranaki • Relaunch business section of www.taranaki.info Achieved

VENTURE TARANAKI: QUARTER 3 2017-2018 25

42 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

7 BUDGET SUMMARY: End of Quarter 3 2017-2018 Year

2017 – 2018 Year Actual 2017 - 2018 Year Budgeted Total NPDC Leveraged Expendi- Total NPDC Leveraged Expendi- Revenue Investment Revenue ture Revenue Investment Revenue ture Total $3,360,971 $2,494,381 $866,590 $2,999,611 $3,130,175 $2,494,325 $635,850 $3,149,753 Unaudited accounts

VENTURE TARANAKI REVENUE 2017-2018 YEAR

2017 - 2018 Year Actual 2017 - 2018 Year Budgeted

$635,850 $866,590 20% 26%

$2,494,381 74% $2,494,325 80%

NPDC Investment Leveraged Revenue NPDC Investment Leveraged Revenue

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43 Performance Committee agenda (3 May 2018) - Decision - VTT Quarterly Report 2.1

BUDGET SUMMARY 2017 - 2018 Year Actual 2017 - 2018 Year Budgeted END OF QUARTER 2 Total NPDC Leveraged Expendi- Total NPDC Leveraged Expendi- Revenue Investment Revenue ture Revenue Investment Revenue ture 2017 - 2018 YEAR SECTOR SUPPORT AND SERVICES 1.1 Energy Futures $96,375 $96,375 $0 $40,766 $96,375 $96,375 $0 $79,125 1.2 Future Foods $89,881 $80,175 $9,706 $60,855 $80,175 $80,175 $0 $70,575 1.3 International $77,724 $24,000 $53,724 $90,100 $56,000 $16,000 $40,000 $56,000 Education 1.4 Engineering and $19,292 $19,013 $279 $11,551 $64,000 $24,000 $40,000 $84,000 Niche Manufacturing VISITOR SECTOR SUPPORT 2.1 Lonely Planet $350,000 $350,000 $0 $305,198 $350,000 $350,000 $0 $350,000 Leveraging - New Plymouth District 2.2 Taranaki Traverse $53,150 $18,150 $35,000 $73,593 $18,150 $18,150 $0 $18,075 2.3 Visitor Product and $54,825 $36,000 $18,825 $37,531 $54,825 $36,000 $18,825 $54,750 Infrastructure 2.4 Visitor Industry $83,925 $66,150 $17,775 $81,927 $83,925 $66,150 $17,775 $83,925 Development & Trade 2.5 Building District Pro- $95,287 $95,287 $0 $77,593 $95,250 $95,250 $0 $95,625 file - PR & Marketing 2.6 Regional Promotion $130,715 $92,325 $38,390 $121,841 $130,350 $92,325 $38,025 $130,350 2.7 Major Events Fund $627,147 $552,147 $75,000 $596,600 $552,150 $552,150 $0 $595,000 2.8 Meetings, Incentives, $54,681 $53,100 $1,581 $54,170 $53,100 $53,100 $0 $53,100 Conferences and Events 2.9 Regional Collateral $127,227 $76,350 $50,877 $113,242 $128,175 $76,350 $51,825 $128,100 PROJECTS 3.1 Make Way for $64,200 $64,200 $0 $203,953 $64,200 $64,200 $0 $64,200 Taranaki Tapuae Roa Regional Economic Development Strategy 3.2 Talent and Skills $122,180 $105,450 $16,730 $80,011 $122,175 $122,175 $0 $122,175 3.3 Innovation $85,425 $85,425 $0 $58,969 $85,425 $85,425 $0 $85,425 3.4 Inward Investment $79,935 $79,935 $0 $21,186 $79,950 $79,950 $0 $79,950 and Attraction 3.5 Infrastructure $33,075 $33,075 $0 $23,763 $33,075 $33,075 $0 $33,075 PARTNERSHIPS 4.1 Regional and Govern- $67,725 $67,725 $0 $56,348 $67,725 $67,725 $0 $68,675 ment Partnerships 4.2 Māori Economy $38,775 $38,775 $0 $31,762 $38,775 $38,775 $0 $38,775 4.3 Massey University $30,000 $30,000 $0 $28,802 $30,000 $30,000 $0 $30,000 Partnership 4.4 Curious Minds $152,189 $0 $152,189 $120,667 $100,100 $0 $100,100 $100,100 Participatory Science Platform Programme ENABLER ACTIVITY - BUSINESS SUPPORT 5.1 Growth Business $375,602 $109,575 $266,027 $342,015 $368,625 $109,575 $259,050 $368,625 Support 5.2 Foundation Business $171,022 $141,675 $29,347 $164,880 $164,550 $141,675 $22,875 $164,475 Support 5.3 Regional Intelligence $86,900 $65,175 $21,725 $52,040 $76,275 $65,175 $11,100 $57,600 and Communications 5.4 Web and Digital $114,300 $114,300 $0 $127,574 $114,300 $114,300 $0 $114,300 Profile * Additional revenue from private sector members of $42,000 also received from EIG group. VENTURE TARANAKI: QUARTER 3 2017-2018 27

44 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

3 Item for Decision

NEW PLYMOUTH PIF GUARDIANS LIMITED DRAFT STATEMENT OF INTENT FOR THE YEAR ENDED 30 JUNE 2019

MATTER The matter for consideration by the Committee is to receive and note the Draft Statement of Intent (SOI) for the year to 30 June 2019 for the New Plymouth PIF Guardians Limited.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report, the Statement of Intent for New Plymouth PIF Guardians Limited (NPG), for the year to 30 June 2019, be noted.

COMPLIANCE

Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

Options 1. The SOI is a statutory requirement and must be adopted by 30 June each year.

The persons who are affected by or interested in this matter Affected persons are the general community.

Recommendation This report recommends option one for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant There are no significant inconsistencies with current policies Policy and Plan or plans. Inconsistencies

DISCUSSION Each CCO is required to deliver a draft Statement of Intent (SOI) to its shareholders for consideration on or before 1 March each year.

Management received the draft SOI prior to 1st of March and have been working with the Directors of NPG to finalise the attached draft SOI.

45 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

3 Item for Decision

After considering any comments received on the draft SOI, the CCO board must deliver a completed SOI to the Council on or before 30 June each year.

Attached is the draft SOI for the year ended 30 June 2019 for comment and noting.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

OPTIONS Option 1 Adopt the Draft Statement of Intent for the year to 30 June 2019.

Option 2 No alternative operation available as this is a statutory matter.

Recommended Option This report recommends option one for addressing the matter.

APPENDICES 1. The New Plymouth PIF Guardians Limited draft Statement of Intent for the year ended 30 June 2019. 2. PIF Governance Deed 3. Statement of Investment Policies and Objectives

Report Details Prepared By: Carla Freeman (Finance and Reporting Lead) Team: Business Performance Group Approved By: Alan Bird (Chief Financial Officer) Ward/Community: District wide Date: 28 March 2018 File Reference: ECM 7680194

------End of Report ------

46 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

3.1

NEW PLYMOUTH PIF GUARDIANS LIMITED STATEMENT OF INTENT

FOR THE YEAR TO 30 JUNE 2019

1. PURPOSE

1.1 New Plymouth PIF Guardians Limited (the Company, NPG) is a Council Controlled Organisation (CCO) established pursuant to the Local Government Act 2002. Control in the Company is vested in the New Plymouth District Council (the Council, NPDC).

1.2 The Statement of Intent sets out the overall intentions and objectives of NPG for the period 1 July 2018 to 30 June 2019 and the two succeeding years.

2. OBJECTIVES

2.1 The Company operates with the responsibility of:

(a) Managing the Council’s Perpetual Investment Fund (the PIF, the Fund) in line with the Governance Deed (GD) (refer appendix 1). In respect of the Council’s investments the Company’s objectives are: (b) To appoint and manage a Full Outsourced Investment Agent. (FOA). (c) To monitor and report the performance of the FOA. (d) To monitor and report the performance of the Fund against appropriate benchmarks. (e) To ensure the FOA invest the funds in line with the Statement of Investment Policies and Objectives (SIPO) and the Strategic Asset Allocation (SAA) included in the SIPO (refer appendix 2).

3. CONTRIBUTION TO NPDC AND THROUGH THEM TO OVERALL AIMS & OUTCOMES

3.1 The Company’s activities help provide an investment return on the Council’s investment fund, which enables a release payment to be made to the Council on a quarterly basis.

3.2 The release payment is based on international best practice “spending” rules and is payable on a sustainable basis, which over the long term allows the real capital of the PIF to be maintained for current and future generations at an agreed level with the shareholder. The formula for the release payment is outlined in the SIPO in appendix 2.

4. GOVERNANCE AND MANAGEMENT

4.1 The GD sets out the relationship between the Council and the Company. The Company will continue to apply with the terms contained within the GD and advise Council of any breaches in a timely fashion.

4.2 The Board of Directors is appointed by the shareholder to govern the Company in the interests of the shareholder and in accordance with the Company’s constitution and relevant law. The Board has adopted the principles set out in the GD.

Statement of Intent

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4.3 The present Board comprises five independent directors noting that the GD requires there to be a minimum of four directors.

4.4 Administration for the Company is carried out by NPDC in line with a Service Level Agreement attached as appendix 3.

4.5 To ensure strong communications and alignment between the Council and the Company, an advisor will attend, as an observer, all Board meetings. This is currently the Chief Financial Officer.

4.6 Given that the PIF is an investment of ratepayers funds, the risk profile of investments will reflect this and the targeted rate of return will be made in line with the SIPO, including the strategic asset allocation.

5. ACCOUNTING POLICIES

5.1 The NPG accounting policies for the year ended 30 June 2019 will be consistent with the Council accounting policies for the year to 30 June 2019.

6. PERFORMANCE TARGETS

6.1 The performance of NPG will be assessed against the terms in the GD, the Statement of Intent, and industry benchmarks as detailed in the SIPO. Below are the key performance measures.

6.2 Benchmarks for NPG financial performance

(a) NPG is operated on a full cost recovery basis and is therefore budgeted to operate at a nil net cost. The sum below reflects its expected management costs, which are charged to NPDC.

(b) Forecast NPG Statement of Financial Performance

Item FY2019F FY2020F FY2021F $000’s $000’s $000’s Revenue 400 345 350 Costs 400 345 350 Net Profit after tax (NPAT) - - - NPAT to average shareholders’ funds Nil Nil Nil

Item $'000's

Director fees 200 Administration/other* 200 Total costs 400

Other costs include travel, meeting expenses, administration support, third party consultants and audit. Note in FY2019 there is an additional $50k provided for a review of Mercer (NZ) Ltd’s performance.

Statement of Intent

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6.3 Benchmarks for PIF performance

(a) Release payment target

Item FY2018/19 FY2019/20 FY2020/21 $M $M $M Release payment target forecast 8.46 8.77 9.05

(b) Fund balance target

Item FY2018/19 FY2019/20 FY2020/21 Est $M Est $M Est $M Closing balance of fund 284.3 289.4 294.1

i) Total portfolio return

A prime focus for the Council is to ensure that returns from the PIF are at a level that meets its objectives for the fund. The total return on the portfolio (net of all costs) measured on a rolling five-year basis is currently a target of 3.3 per cent plus NZ inflation (as measured by the Consumers Price Index).

Modelling prepared by Meville Jessup Weaver for the Company in 2016 indicates an expected long run return of inflation plus 5.2 per cent net of costs on the fund.

ii) Market comparison

The portfolio has two distinct categories of assets:  Listed Securities (Equities / fixed income / cash) The return on this proportion of the portfolio is targeted to be 0.75% per annum above the weighted average benchmark. NPG will measure and report on these securities quarterly, annually and on a rolling five year basis.

 Unlisted Securities (Private Equity / Alternative Assets) These assets are illiquid, are largely not traded on markets and are valued infrequently. Therefore performance cannot be compared to benchmark returns on a short term basis. NPG will report on the performance of these securities annually.

(d) Maintain PIF within Strategic Asset Allocations ranges

Strategic asset Asset class allocation Allowable range % % Global equities

 developed markets 40 25 - 55

 emerging markets 5 0 - 10 Private equity 17.5 10 - 25 Alternative assets 17.5 10 - 25 Total growth assets 80 60 - 95 Fixed income 15 5 - 25 Cash 5 0 - 20

Statement of Intent

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Total income assets 20 5 - 40 Total 100 6.4 Reporting

Item

Provide a quarterly report to the shareholder covering activities undertaken by the Company, and the performance of and significant issues relating to the Perpetual Investment Fund. The report will provide the information outlined in the GD.

6.5 Timely Response

Item

Provide investment advice within one month to the shareholder on any significant developments that may have an impact on either the income stream to the Council or the value of the Council’s PIF.

7. SENSITIVE EXPENDITURE

While noting that the Company operates in a different market to the Council, NPG is cognizant of the fact that it operates in a public environment and is aware of the Council’s sensitive expenditure policy.

8. INFORMATION TO BE PROVIDED

8.1 The following information will be made available:

(a) A draft Statement of Intent, including an annual budget, for inclusion in the Council’s Annual Plan process (by 1 March each year).

(b) A Statement of Intent, including an annual budget prior to the commencement of each financial year.

(c) A quarterly report on the performance of the PIF operations including a comparison against the Statement of Intent and the budget within 60 days after the end of that quarterly reporting period.

(d) A six-monthly report provided to the Performance Committee within 90 days of the end of the first half of the financial year.

(e) An annual report provided to the Audit and Risk Committee and made available to the public within 90 days of the year end.

9. ACTIVITIES FOR WHICH COMPENSATION IS SOUGHT

9.1 There are no current activities for which specific compensation is sought from the shareholder. NPG currently provides the investment management services defined in the GD, on a full cost reimbursement basis from the PIF as noted above.

10. DIRECTORS ESTIMATE OF VALUE

10.1 The Directors anticipate the nominal par value of the Council’s investment in the Company to be $1,000, being the net equity invested at historical cost. This estimate will be re-assessed in the same manner on an annual basis.

Statement of Intent

50 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

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NEW PLYMOUTH PIF GUARDIANS LIMITED PIF GOVERNANCE DEED

This PIF Governance Deed constitutes a deed dated the 1st day of March 2017

BETWEEN NEW PLYMOUTH DISTRICT COUNCIL, a local authority under the Local Government Act 2002 (Council)

AND NEW PLYMOUTH PIF GUARDIANS LIMITED, a company having its registered office in New Plymouth (NPG)

BACKGROUND

A. The Council currently holds the Perpetual Investment Fund (PIF) which is a long-term pure commercial investment fund set up by the Council containing the sale proceeds of the Council's former shareholding in Powerco Limited.

B. The Council had previously engaged NPG (under the name Taranaki Investment Management Limited) to provide investment management services for the PIF under the terms of an agreement dated 24 May 2011 (TIML Mandate).

C. On 30 September 2016, the Council entered into an agreement (the Implementation Agreement) setting out certain preparatory steps which were to be taken prior to the date of this Deed.

D. In accordance with the Implementation Agreement, the Council and NPG now wish to terminate the TIML Mandate and to establish a new structure for the management of the PIF as set out in this Deed (PIF Governance Deed).

THIS DEED RECORDS THAT:

1. DEFINITIONS AND INTERPRETATION

1.1 Definitions: When used in this Deed, capitalised terms:

(a) defined in the main body of this Deed have the defined meaning throughout this Deed; and

(b) defined in the Implementation Agreement will, unless otherwise defined, have the meaning given in that agreement.

1.2 Interpretation:

(a) Clause and other headings are for ease of reference only and will not affect this Deed's interpretation.

(b) References to the singular include the plural and vice versa.

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(d) The term includes or including (or any similar expression) is deemed to be followed by the words without limitation.

(e) References to any document (however described) are references to that document as modified, novated, supplemented, varied or replaced from time to time and in any form, whether on paper or in an electronic form.

2. TERMINATION OF TIML MANDATE

The Council and NPG agree that, with immediate effect from the execution, by all parties, of this PIF Governance Deed, the TIML Mandate shall be terminated and both the Council and NPG will irrevocably waive any rights conferred upon that party pursuant to the TIML Mandate (including the right to bring any claim against the other as a result of circumstances arising prior to such termination).

3. STRATEGIC PIF OBJECTIVES

3.1 Objectives for the Management of the PIF: The parties understand that the Council’s objectives (PIF Objectives) in relation to the management of the PIF are:

(a) to at least maintain the real capital of the PIF as a sustainable perpetual investment fund in the long term (the Founding Principle) whilst generating a sufficient return to maintain a sustainable release to the Council; and

(b) to ensure that the following principles underpin the operation of the PIF:

(i) all investments are made on purely commercial terms; and

(ii) the PIF will be managed on the basis of a prudent, commercial, diversified portfolio investment style and asset allocation, which manages risk to further the Founding Principle.

3.2 Operation of the PIF: The parties agree that their obligations under this PIF Governance Deed shall be construed in light of their mutual intention that the PIF Objectives be achieved.

4. ESTABLISHMENT OF THE "PIF GUARDIANS"

4.1 Rationale: The Council recognises that, given the nature of local authority core business, specialist investment management capabilities (at the Council or within the Councillor group or the Council's staff) may not be available. Accordingly, the Council considers it prudent to appoint an appropriate agent with the necessary capability to:

(a) provide it with advice; and

(b) act as its direct agent in connection with the management of the PIF (within certain pre-agreed delegated authorities).

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4.2 PIF Guardians: The Council believes that the duly constituted board of directors of NPG (together, the Board or the PIF Guardians and, individually, each a PIF Guardian) will provide the necessary capabilities and therefore, subject to the appointment of the PIF Guardians in accordance with clause 4.3 below, intends to appoint NPG as its agent in accordance with the terms of this PIF Governance Deed.

4.3 Appointment of PIF Guardians:

(a) The Council will, at all times, exercise its power as the sole shareholder of NPG to ensure that, to the extent reasonably practicable:

(i) there will, at all times, be 4 PIF Guardians;

(ii) each PIF Guardian will, at the time of their appointment, be "independent" (i.e. will have no conflict of interest in terms of the PIF Code of Conduct (as defined in clause 6.2 below)) and will not be a past or present member of the Council; and

(iii) a senior Council executive (the Council Observer) will be entitled to attend and speak at meetings of the Board in a non- voting capacity to provide Council oversight and perspective (and, where necessary, to undertake administration). The Council Observer will be entitled to disclose to the Council (and its employees) any information received by the Council Observer as a result of their attendance at meetings of the Board.

(b) When appointing a PIF Guardian to the Board, the Council will:

(i) ensure that the PIF Guardians have the necessary blend of skills to ensure that the duties and responsibilities of NPG are able to be satisfactorily discharged;

(ii) base such appointment on the recommendations of the Council executive and those consultants as are appointed by the Council in connection with the selection of PIF Guardians; and

(iii) assess the capability of candidates based on a range of factors including:

(A) Character (e.g. demonstrated integrity, pursuit of high performance standards and a willingness to think independently and defend decisions);

(B) Capability (e.g. proven fund management / commercial expertise; experience with local government and organisations with high levels of public scrutiny; industry credentials / profile; networks and governance experience); and

(C) Commitment (e.g. level of personal buy-in to the objectives of the PIF; capacity given other roles and commitment to further knowledge development).

4.4 Term of Appointment:

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(a) Subject to clause 4.5, each PIF Guardian will be appointed for a term of 3 years (Term).

(b) On the expiration of the Term of a given PIF Guardian, that PIF Guardian will, subject to (c) below, be eligible for re-appointment for a further term of 3 years.

(d) Notwithstanding clauses 4.4(a), (b) and (c) above, in circumstances in which the operation of those clauses would otherwise result, in the reasonable opinion of the Council, in an insufficient number of PIF Guardians remaining on the Board to ensure continuity of management, the Council may vary the terms of appointment of the PIF Guardians to the minimum extent necessary in order to ensure such continuity.

4.5 Removal of PIF Guardians: The Council will, from time to time (and in accordance with the constitution of NPG (Constitution)), be entitled to remove any PIF Guardian which it believes, acting reasonably, has failed to comply with the role and responsibilities of the PIF Guardians as set out in this PIF Governance Deed.

4.6 Management of NPG: There will be no employees of NPG and NPG will act solely through:

(a) the PIF Guardians; and

(b) any independent contractor appointed in accordance with clause 5 below.

4.7 Meetings of the PIF Guardians: The PIF Guardians will meet 6 to 8 times per annum under normal circumstances and on any more regular basis as is necessary in order to discharge their responsibilities under this PIF Governance Deed.

5. THE ROLE OF NPG AND THE "PIF GUARDIANS"

The overarching role of NPG and of the PIF Guardians will be to ensure that the PIF is managed in a prudent, commercial manner in accordance with the SIPO (as defined in the Implementation Agreement), this PIF Governance Deed and the Constitution. The responsibilities of NPG and, from their appointment, the responsibilities of each PIF Guardian will be:

Advisors and Architecture

5.1 Appointment of Full Outsource Agent: To select and appoint a third party independent advisor (Full Outsource Agent) which will contract with NPG on the Draft Outsource Terms (as defined in the Implementation Agreement). The Full Outsource Agent will have responsibility for 100% of the PIF. It will be the responsibility of the Full Outsource Agent:

(a) to appoint investment managers to manage the investment of that proportion of the PIF allocated to that investment manager by the Full Outsource Agent on a day to day basis (each an Investment Manager);

(b) to provide detailed reports as to the performance of the PIF on such basis as may be requested by the Council or the PIF Guardians from time to time; and

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(c) to carry out such other activities relating to the PIF as may be agreed between the PIF Guardians and the Full Outsource Agent from time to time.

Each of NPG and the PIF Guardians will use reasonable endeavours to procure that the Full Outsource Agent manages the PIF in accordance with this PIF Governance Deed (including the PIF Objectives). Any fair and reasonable costs incurred by the Full Outsource Agent (including all reasonable fees and expenses of the Full Outsource Agent) will be paid by NPG and reimbursed by the Council. If, at any time, a Full Outsource Agent is removed from (or otherwise ceases to perform) its role, the obligation of NPG and the PIF Guardians shall, in accordance with the provisions of this clause 5.1, be to procure a replacement as soon as reasonably practicable.

5.2 Removal of Advisors: To remove any previously appointed advisor or agent or assert such other contractual rights in respect of such third party as shall be considered prudent by the PIF Guardians (acting reasonably and having regard to the PIF Objectives and the responsibilities set out in this PIF Governance Deed).

5.3 Cost Efficiency: To manage the PIF (and to procure the management of the PIF, by the Full Outsource Agent and its own agents) in a cost effective manner.

5.4 Advisor Appraisal: To set and agree appropriate mechanisms (including benchmarking if appropriate) to allow NPG and the Council to determine the performance of any particular advisor or agent from time to time.

5.5 Advisor Monitoring: To monitor the performance of advisors and agents appointed in connection with the PIF and to provide such reports and advice to the Council on such reasonable basis as NPG and the Council may request.

SIPO Review

5.6 Review of SIPO: To review the SIPO (including the SAA) on a regular basis to ensure that it remains consistent with this PIF Governance Deed (including the PIF Objectives) and, without prejudice to the foregoing, to conduct a detailed review of the SIPO (SIPO Review) on an approximate 3 yearly basis. The SIPO Review will be conducted with the intention that the results will be available for consideration in the preparation of the Council's long term plan. The SIPO Review shall include:

(a) a comprehensive review of the performance of the PIF;

(b) the preparation and conduct of a workshop for the Council covering, among other things: PIF history; organisational architecture principles; structural arrangements; advisor and agent performance measurement; and monitoring arrangements; and

Any amendments to the SIPO will be notified to the Council as soon as reasonably practicable.

Advice and Reporting

5.7 Advice: To provide advice to the Council on such matters related to the management of the PIF as the Council may, from time to time, request.

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5.8 Critical Analysis: To assess and challenge the advice that NPG and the Council receive from their advisors and agents from time to time in relation to the PIF.

5.9 Investment Consultant: To provide the Council or its agents (including any investment consultant appointed by the Council) with such information as may reasonably be requested to permit any such person to monitor the performance of the PIF Guardians and those agents appointed by NPG in connection with the PIF.

5.10 Regular Reporting: To provide such reports, on a quarterly basis (or more frequently if the Council requests), as the Council may, in its absolute discretion, request in connection with the performance of the PIF Guardians' obligations under this PIF Governance Deed.

5.11 Record Keeping: To procure that the Full Outsource Agent (and its own agents) retain detailed written records of investment decisions and the process relating to those investment decisions.

Compliance

5.12 Compliance: To ensure compliance, by NPG, with all CCO requirements including the preparation of an annual statement of intent.

6. CONDUCT OF THE PIF GUARDIANS

6.1 Integrity and Ethical Behaviour: Each PIF Guardian must, at all times, comply with the express terms and spirit of their statutory obligations to NPG including acting honestly and in good faith and in what they reasonably believe to be the best interests of NPG.

6.2 Code of Conduct: Each PIF Guardian must operate in compliance with the code of conduct set out at Schedule 1 (the PIF Code of Conduct) which sets out the standards of appropriate ethical and professional conduct for the PIF Guardians.

6.3 Acknowledgement: Each PIF Guardian will, and NPG will procure that each PIF Guardian will, as soon as reasonably practicable following the date of this Deed, execute, as a deed, an acknowledgement in the form set out in Schedule 2.

7. GENERAL

7.1 Counterparts: This Deed may be signed in counterparts. All executed counterparts will together constitute one instrument.

7.2 Amendment: No amendment to (or termination of) this Deed will be effective unless executed by the Council and NPG. The Council may not execute any such amendment (or termination) otherwise than with the authority of a vote of not less than 75% of elected members of the Council.

7.3 Governing Law and Jurisdiction: This Deed is governed by the laws of New Zealand. The parties submit to the exclusive jurisdiction of the New Zealand courts in respect of all matters relating to this Deed.

EXECUTED AND DELIVERED AS A DEED

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SIGNED on behalf of NEW PLYMOUTH DISTRICT COUNCIL

Signature of Mayor/Councillor Signature of Mayor/Councillor

Name of Mayor/Councillor Name of Mayor/Councillor

SIGNED on behalf of NEW PLYMOUTH PIF GUARDIANS LIMITED

Signature of director Signature of director

Name of director Name of director

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SCHEDULE 1 CODE OF CONDUCT

1. OBJECTIVES

This Code of Conduct (Code) sets out the standards of ethical and professional conduct with which the board of directors of New Plymouth PIF Guardians Limited (NPG) (together, the Board or the PIF Guardians and, individually, each a PIF Guardian) are expected to comply.

2. PROFESSIONAL CONDUCT AND DUTIES OF THE BOARD

2.1 Collective Duties of Board: The Board must:

(a) Act in a manner consistent with the objectives, function and responsibilities of the Board outlined in the PIF Governance Deed.

(b) Perform its functions efficiently, effectively and consistently with the spirit of service to the public.

(d) Comply with the legal requirements regarding Council Controlled Organisations.

2.2 Individual Duties of Each PIF Guardian: Each PIF Guardian must ensure that he or she:

(a) Does not contravene, or cause the contravention of, any of the laws of New Zealand (or any other relevant jurisidiction).

(b) Acts with honesty and integrity.

(d) Exercises the care, diligence and skill that a reasonable person would exercise in the same circumstances taking into account the nature of the PIF Guardians, the nature of the action, the position of the PIF Guardian and the nature of his or her responsibilities.

(e) Does not disclose information obtained in his or her capacity as a PIF Guardian. There are limited exceptions to this set out below.

3. CONFLICT OF INTEREST

3.1 It is acknowledged that the selection criteria for PIF Guardians include the desirability of having PIF Guardians with relevant investment skills and work experience to assist NPG to achieve its objectives. It is recognised therefore that it is likely the individuals who are appointed to the Board will have obligations to other entities as directors, officers or professional members. It is also recognised that they may have private business or investment interests which could potentially conflict with their duties as a PIF Guardian. This Code has been created, in part, to provide guidance in managing these actual or perceived conflicts of interest.

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3.2 Situations may arise from time to time where conflicts of interest may exist. This can arise where a PIF Guardian is in a position to take any action that is, or reasonably appears to be, influenced by considerations other than the best interests of the PIF Guardians or the PIF. This may exist whether or not the PIF Guardian stands to derive a financial benefit. The "interest" concerned could be financial or nonfinancial.

3.3 For example, a conflict of interest could arise if a PIF Guardian, or a close family member:

(a) has duties to an entity other than the PIF Guardians (e.g. as a director, board member or trustee);

(b) has invested in, or has a financial interest in, a company or other entity that has dealings with the PIF Guardians or the PIF, or in which the PIF is invested; or

(c) is the beneficiary of a trust which has a financial interest in an entity that has dealings with the PIF Guardians or the PIF, or in which the PIF is invested.

3.4 Impartiality and transparency are essential to maintaining the integrity of the PIF Guardians, and the Board should err on the side of caution when deciding whether an involvement or interest gives rise to an interest that needs to be managed. The PIF Guardians need to consider whether there is a reasonable risk that a situation could undermine public trust and confidence in a PIF Guardian or the Board as a whole. Perceptions are particularly important in the public sector, and it is important that PIF Guardians not only act honestly and fairly, but are also clearly seen to be doing so.

3.5 The extent to which PIF Guardians should make inquiries as to interests held by close family members, trusts or others which may be of benefit to a PIF Guardian should be considered on a case by case basis. Each case will be assessed with regard to the circumstances, how they might be perceived (including in hindsight) and the desirability of being seen to have acted appropriately.

When interests need to be disclosed

3.6 For the purpose of the sections below, a "matter" means anything done or not done by the PIF Guardians in performance of their functions or exercise of their powers. It also includes an arrangement, agreement or contract entered into, or proposed to be entered into, by the PIF Guardians.

3.7 A PIF Guardian is deemed to have an interest in a matter in which the PIF Guardians are, or intend to become, a party or in which the PIF Guardians are otherwise involved, if the PIF Guardian:

(a) may derive a financial benefit from the matter;

(b) is the spouse, civil union partner, de facto partner, child or parent of a person who may derive a financial benefit from the matter;

(d) is a partner, director, officer, board member or trustee of a person who may have a financial interest in a person to whom the matter relates; or

(e) is otherwise directly or indirectly interested in the matter.

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However, a PIF Guardian is not interested in a matter if his or her interest is so remote or insignificant that it cannot reasonably be regarded as likely to influence him or her in carrying out his or her responsibilities under the PIF Governance Deed.

Disclosure of interests

3.8 If a PIF Guardian is interested in a matter, they must disclose the nature and extent of the interest and, if capable of being quantified, the monetary value of the interest, in the Board's interests register and to the Board as soon as practicable after the PIF Guardian becomes aware that he or she is interested.

3.9 A PIF Guardian may make a standing disclosure (i.e. a disclosure with ongoing effect). A standing disclosure will continue in effect until the nature of the interest materially alters or the extent of the interest materially increases.

Consequences of an interest

3.10 If a PIF Guardian is interested in a matter, he or she must not:

(a) vote or participate in any discussion or decision of the Board relating to the matter or otherwise participate in any activity of the PIF Guardians in relation to the matter;

(b) sign any document relating to the matter; or

(c) be included for the purpose of forming a quorum for the part of any meeting of the Board or any committee of the Board during which a discussion or decision relating to the matter occurs.

Consequences of failing to disclose an interest

3.11 The Board must notify the Council of any failure by a PIF Guardian to disclose an interest (and of the acts affected) as soon as practicable after becoming aware of the failure.

3.12 Failure by a PIF Guardian to disclose an interest does not affect the validity of an act or a matter (although this does not limit the right of any person to apply for judicial review).

4. CONFIDENTIAL INFORMATION

4.1 In the course of discharging their responsibilities under the PIF Governance Deed, PIF Guardians will have access to certain confidential information relating to the investment of the PIF. All information concerning the investment of the PIF, or the policies or plans relating to such investment, must be kept confidential and may not be disclosed, or made use of, or acted upon, except:

(a) in the performance of the PIF Guardian's functions as a PIF Guardian;

(b) as required by law;

(d) as agreed by the Board (if the disclosure, use or act will be unlikely to prejudice the PIF).

Corporate opportunities

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4.2 A PIF Guardian may not:

(a) use confidential information relating to the PIF for his or her personal gain or for the benefit of any other person; or

(b) buy or sell (or advise or encourage anyone else to buy or sell) a security or property when in possession of any information through his or her position as a PIF Guardian which may affect the value of that security or property; or

(c) engage in front-running, or any other practice that seeks to benefit the PIF Guardian (or other persons) through the PIF Guardian’s understanding of the activities of the PIF Guardians.

4.3 PIF Guardians must be cognisant of their obligations under the Financial Markets Conduct Act 2013.

5. BENEFITS/HOSPITALITY/GIFTS/GRATUITIES

5.1 PIF Guardians will, from time to time, receive offers of hospitality and/or gifts from current or potential service providers. PIF Guardians should use good business judgement and common sense to guide them in determining their response, and ensure that accepting such an offer would not bring suspicion on their objectivity or impartiality.

5.2 As a general guide, PIF Guardians should not accept benefits, entertainment, gifts or favours which create or appear to create a favoured position for another organisation or person who either is or aspires to be a vendor or a supplier to the PIF Guardians or the Council.

5.3 As a guiding principle, PIF Guardians must observe the principles of fairness and impartiality in all aspects of their work. No person or organisation may be given preferential treatment in any way over any other individual or organisation. In addition, PIF Guardians should avoid any situation that could directly or indirectly compromise the performance of their duties, or the standing of the organisation.

5.4 A PIF Guardian must not abuse his or her position for personal gain. He or she must not solicit or accept gifts, rewards, or benefits which might compromise, or be seen to compromise, his or her integrity or that of the PIF Guardians.

5.5 As a general rule, a PIF Guardian should not accept a gift (whatever its nature or value) if the gift could be seen by others as either an inducement or a reward which might place the PIF Guardian under an obligation to a third-party.

5.6 Where offers of gifts or inducements are made, they should be reported by the PIF Guardian to the Board, who will determine the appropriate response. Any PIF Guardian who accepts a gift should declare the gift to the Board for a decision on final disposal.

5.7 In order to avoid an actual or perceived issue relating to any influence regarding relationships, PIF Guardians are required to:

(a) record any gift, of other than a nominal value, in the Gifts/Hospitality Register of the Board;

(b) not accept, at any time, any offers of cash, equity holdings, or other payments; and

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(c) record, in the Gifts/Hospitality Register of the Board all offers of hospitality which have been accepted and where the estimated value is greater than NZ$50, or where the PIF Guardian has accepted hospitality below this value from a provider more than once in the previous three months. During a competitive tender situation, accepting hospitality is discouraged as it may compromise the perceived independence of the process. All hospitality must be declared in the register during a competitive tender process.

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Schedule 2 Acknowledgement Deed Poll

DEED POLL DATED 20[17]

THIS DEED POLL IS MADE BY ______(PIF Guardian)

THIS DEED POLL RECORDS THAT:

1. COMMENCEMENT

1.1 This Deed Poll:

(a) is intended to be enforceable by, and for the benefit of, New Plymouth District Council (Council);

(b) will take effect upon execution; and

(c) will remain binding on the PIF Guardian unless otherwise terminated in writing by the New Plymouth District Council (Council).

2. ACKNOWLEDGEMENT

2.1 As a PIF Guardian, I acknowledge and agree that:

(a) I have been appointed by the Council as a Director of New Plymouth PIF Guardians Limited (NPG) and as a PIF Guardian as defined in the PIF Governance Deed between the Council and NPG dated 1 March 2017 (the PIF Governance Deed);

(b) I have read and understood the PIF Governance Deed; and

(c) I will comply with the obligations placed on the PIF Guardians by the PIF Governance Deed and will use my reasonable endeavours, as a director of NPG, to procure compliance, by NPG, with its obligations under the PIF Governance Deed.

2.2 This Deed Poll is irrevocable and intended to be legally binding and to be governed by New Zealand law.

2.3 The PIF Guardian acknowledges its intention to be immediately and unconditionally bound by the provisions of this deed poll.

EXECUTED AND DELIVERED AS A DEED POLL

SIGNED as a deed

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SIGNED by [NAME OF PIF GUARDIAN] as a PIF GUARDIAN

Witness:* Signature of [PIF GUARDIAN]

Signature of witness

Full name of witness

Occupation of witness

Address of witness

*The witness must not be a party to this deed.

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New Plymouth PIF Guardians Limited March 2017

Statement of Investment Policy and Objectives

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Contents

1 Overview 2 2 Investment beliefs 4 3 Investment objectives 7 4 Investment policy 10 5 Asset class guidelines and policies 12 6 Reporting 15

Appendices

A Allocation of responsibilities 18 B Investment modelling 19

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1 Overview

1.1 Purpose

The purpose of this Statement of Investment Policy and Objectives (“SIPO”) is to document the decisions New Plymouth PIF Guardians Limited (“Guardians”) have made on the investment management of the Perpetual Investment Fund (“PIF” or “the Fund”).

The SIPO: ● Specifies the Guardians’ overall investment objectives for the Fund. ● Details the Guardians’ investment strategy for the Fund. ● Describes the allocation of responsibilities between the Guardians, the New Plymouth District Council (“NPDC” or “the Council”) and the full outsourced agent (“FOA”). ● Specifies the terms of the investment mandates and constraints to be observed by the FOA. ● Sets out the process for reviewing the investment strategy and updating the SIPO. ● Details the process to follow in the event of a breach of the SIPO.

1.2 Background

Total proceeds of approximately $259.43 million were received by the NPDC on 9 November 2004 as a result of the disposal of its earlier Powerco investments.

Taranaki Investment Management Limited (“TIML”) began operating the fund in December 2004. In 2016, following a third party review instructed by NPDC, a new governance structure for TIML was agreed, as set out in a governance deed between NPDC and TIML dated [ ] 2016 (“PIF Governance Deed”). Under the PIF Governance Deed, it was agreed that, with effect from 1 March 2017, a new board of directors would be appointed, the company renamed New Plymouth PIF Guardians Ltd and the investment management of the Fund be outsourced to the FOA.

The Fund has released $190.36 million in release payments up to 30 September 2016. The PIF closing balance at 30 September 2016 was $269.6 million.

The SIPO has been prepared by the Guardians in conjunction with Melville Jessup Weaver and approved by the NPDC. This document succeeds the Investment Policy dated August 2015 and all prior documents.

1.3 The PIF Governance Deed

The PIF Governance Deed, is a separate document that details the governance framework, and should be read in conjunction with the SIPO. The SIPO has been designed to cover the investment management aspects of the PIF and the investment beliefs of the Guardians. The Governance Deed states the Objectives for the Management of the PIF are:

(b) to ensure that the following principles underpin the operation of the PIF:

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(i) all investments are made on purely commercial terms; and

(ii) the PIF will be managed on the basis of a prudent, commercial, diversified portfolio investment style and asset allocation, which manages risk to further the Founding Principle.

1.4 The Guardians

As stated in the PIF Governance Deed, the Council considers it prudent to appoint an appropriate agent with the necessary capability to provide it with advice and act as its direct agent in connection with the management of the PIF.

The PIF Governance Deed sets out the required attributes of the Guardians and the process for appointing and reviewing the Guardians.

1.5 Effective date and review date

This SIPO takes effect on 1 March 2017.

In accordance with the PIF Governance Deed, the Guardians will review the SIPO (including the strategic asset allocation) on a regular basis to ensure that it remains consistent with the PIF Governance Deed (including the PIF Objectives). This SIPO will be reviewed in detail at least every three years, with the first review to occur no later than March 2020.

The results of any SIPO review will be available for consideration in the preparation of the NPDC's long term plan. A SIPO review shall include: ● a comprehensive review of the performance of the PIF; ● the preparation and conduct of a workshop for NPDC covering, among other things: PIF history; organisational architecture principles; structural arrangements; advisor and agent performance measurement; and monitoring arrangements; and ● recommendations to NPDC for ratification of existing or revised arrangements with third parties.

Any amendments to this SIPO will be notified to the Council as soon as reasonably practicable.

1.6 Taxation

The PIF is exempt from paying tax on income and capital gains. The advice from the FOA will consider the tax status of the Fund to ensure there is minimum dilution from domestic or foreign tax imposts.

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2 Investment beliefs

2.1 Introduction

The Guardians have adopted the following investment beliefs to serve as guiding principles for the Fund’s investment strategy. In selecting a FOA, the Guardians have sought to align the FOA’s beliefs and approach as closely as possible to their investment beliefs. The Guardians may, from time to time, seek input from the FOA with respect to the investment beliefs.

2.2 Investment beliefs

The Guardians’ investment beliefs are; ● A higher return is achieved by taking on more investment risk. Unrewarded risks should be minimised and mitigated where possible. ● Diversification across risk factors, investment styles and asset types improves the risk-return ratio. ● It is difficult, but not impossible, to identify asset class mispricing and therefore add value and/or reduce risk through dynamic asset allocation positioning. ● True investment management skill is rare and most active managers underperform their benchmark after fees. ● Costs represent a known drag on investment returns and should be minimised. Transparency in fees and costs is important. ● Environmental, social and governance (“ESG”) aspects of investments have a material impact on the long-term risk-return profile. ● Alternative assets can improve portfolio outcomes mostly through diversification of return/risk drivers but potentially also through additional returns.

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2.3 Decision making structure

The Guardians believe that the optimal structure is to allocate decision-making discretion along the spectrum from long-term strategic direction through to shorter-term security selection. This approach is illustrated in the diagram below.

Strategic asset • Guardians determine long term (strategic) asset allocation with a 10+ year view allocation • Guardians select FOA to implement all aspects of investment approach

Dynamic asset • FOA dynamically tilts asset allocation into/away from asset sectors based on a allocation medium-term (3-5 year) view

Investment • FOA determines the underlying investment strategies to be implemented within strategies each asset class

Investment • FOA appoints investment managers to implement the investment strategies managers

Security • Investment managers buy and sell securities selection

2.4 How these beliefs are expressed

The Guardians have selected a strategic asset allocation that they believe will best meet the Fund’s investment objectives. The strategic asset allocation determines the risk appetite; specifically, the split between growth and income assets. It also determines the asset classes and risk exposures at a broad level, with the FOA being responsible for the more granular detail.

The belief that markets can be mispriced from time to time leads the Fund to have asset class ranges as well as long-term target weights.

The focus on diversification leads the Fund to avoid highly concentrated portfolios or large investments in single assets. It also drives a significant allocation to alternative assets, the primary purpose of which is to provide some diversification against the main equity and bond market risks.

The Guardians’ scepticism towards skill-based strategies in well-covered, liquid markets, and their strong focus on low cost efficient implementation, gives them a strong bias towards low-cost passive or enhanced passive exposure for the core investments in developed market equities. It also affects the types of strategies that will pursued under the private equity and alternative asset allocations, which should focus more on alternative risk premia and the most alpha-rich markets, and less on largely skill-based alternative strategies.

2.5 Responsible investing

The Guardians believe that responsible investors must take account of environmental, social and governance (ESG) factors because this leads to better long-term returns.

By managing ESG risks and adhering to high standards of corporate behaviour, the Guardians expect that the Fund’s performance will be higher over the long term, with less downside risk.

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The Guardians’ benchmark for responsible corporate behaviour is the United Nations Global Compact. The Guardians support the six Principles of Responsible Investment developed by the UNPRI. These principles are regarded as the industry benchmark for how to integrate Responsible Investing into all aspects of the portfolio.

In New Zealand, the Guardians support the best practice guidelines developed by the NZ Corporate Governance Forum. The Guardians expect their local investment managers to actively try to improve corporate governance standards in New Zealand companies.

Investment managers are selected by the FOA with consideration given to their responsible investment policies and capabilities.

All of the Fund’s investment managers should have a responsible investing policy and a set of procedures appropriate to their asset class and investment strategy. They must ensure that ESG factors are properly integrated into their investment process, and must report on their Responsible Investment activities.

All investment managers must actively vote their shares in line with principles of good corporate governance. They may use their own voting guidelines or those of a reputable proxy voting service.

The Guardians are working for a diverse community that has a wide range of views on ethical questions. They do not think it is appropriate to impose their own personal ethical views on the portfolio. With that said, the Guardians will endeavour not to invest directly in anything that is widely regarded as abhorrent by the vast majority of the New Plymouth community.

It is necessary for the Fund to use pooled funds and passive index products in order for it to invest in an efficient and low-cost way, and to ensure the portfolio is highly diversified. In doing so the Guardians recognise that they have no influence on the securities held in those funds or index products, and so may own shares in companies or activities that some people may not approve of. Generally, these positions will be a tiny fraction of the portfolio. The Guardians acknowledge that regrettably there is often no cost-effective way of excluding these companies from the investment universe. The Guardians will continuously seek cost-effective investment options that minimise the risk of investing in companies that do not meet their Responsible Investing standards.

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3 Investment objectives

3.1 Introduction

As stated in the PIF Governance Deed, the Guardians’ Founding Principle is:

To at least maintain the real capital of the PIF as a sustainable perpetual investment fund in the long term whilst generating a sufficient return to maintain a sustainable release to the Council.

In doing so, the Council and the Guardians ensure that: 1. All investments are made on purely commercial terms, and 2. The PIF will be managed on the basis of a prudent, commercial, diversified portfolio investment style and asset allocation, which manages risk to further the Founding Principle.

The remainder of this section deals with the Fund’s investment objectives that fit within the governance framework.

3.2 Primary investment objectives

The primary objective is to achieve an investment return after all fees and costs greater than 3.3% per annum in real terms (i.e. after allowing for inflation).

Inflation is determined by the New Zealand Consumers Price Index published by Statistics New Zealand.

This objective is to be achieved over the long term and in practical terms is monitored over rolling five year periods.

3.3 Risk tolerance

While the primary objective takes precedence, the Guardians have regard to the following parameters with respect to the risk tolerances of the investment. Experienced past results, or expected future results, that are significantly out of line with these tolerances would be cause for review of the strategy – however, this would not necessarily dictate a change in approach.

The risk tolerances are; ● Volatility of around 9-12% per annum, measured over rolling three year periods, ● A fall in the real value of the Fund of more than 10% in any one year, expected at no more than once-in-twenty year frequency (i.e. at a 5% confidence level). ● A fall in the real value of the Fund of more than 20% in any one year, expected at no more than once-in-a-hundred year frequency (i.e. at a 1% confidence level).

The investment modelling completed for the investment strategy (see Appendix B) suggests that the Fund may have a negative real return after fees 1 in every 3.5 years.

Real world markets may exhibit more extreme results than standard statistical models would predict. Therefore, these figures should be viewed with a degree of caution.

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3.4 Secondary investment objectives

The secondary objectives are for the Fund to achieve an appropriate excess return over its composite benchmark return before the deduction of fees and costs.

This objective is to be achieved over the medium term and in practical terms is monitored over rolling three year periods.

The composite benchmark return is defined as the return from a portfolio at the Fund’s strategic asset allocation and achieving the return from the appropriate index in each asset sector; as given by the table below.

Asset class Benchmark index

Global equities - developed markets MSCI World Index with net dividends (100% NZD hedged) - emerging markets MSCI Emerging Markets Index with net dividends (in NZD) Private equity S&P/NZX Government Bond Index + 5% pa Alternative assets CPI + 4% Fixed income Bloomberg Barclays Global Aggregate Index (100% NZD hedged) Cash S&P/NZX Bank Bills 90-Day Index

3.5 Asset class investment objectives

Each of the asset classes’ performance will be measured against their benchmark index given in the table in the previous section, with performance hurdles and over the time periods given below. Performance is measured before the deduction of fees. ● Global developed market equities 0.75% pa Rolling three year periods ● Global emerging market equities 1.50% pa Rolling three year periods ● Private equity1 0% pa Rolling five year periods ● Alternative assets1 0% pa Rolling five year periods ● Fixed income 0.75% pa Rolling three year periods ● Cash 0.25% pa Rolling one year periods

1 1 Private equity and alternative assets have a performance hurdle built into their benchmark index.

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3.6 Release rule

The release to the NPDC from the PIF is based on a model that follows best industry practice and a formula that enables the PIF to fulfil its perpetual objective both in terms of the maintenance and enhancement of the target capital value over time and the delivery of sustainable levels of release payments to the NPDC.

The annual release payment is to be based on the following formula in the long term:

퐷푡 = 80% × 퐷푡−1 × (1 + 퐶푃퐼푡−1) + 20% × 3.3% × 푃퐼퐹푡−1 × (1 + 퐶푃퐼푡−1)

Weight on previous year’s Weight towards long-term payment 3.3% pa target

Where

● 퐷푡 = release payment in year t

● 퐷푡−1 = prior year’s release payment

● 퐶푃퐼푡−1 = prior year’s inflation rate

● 푃퐼퐹푡−1 = prior year’s opening audited PIF value

This rule means that the annual release will average approximately 3.3% of Fund value over time. The 80% weight on previous year’s release provides a smoothing mechanism to ensure that the release payment is relatively stable.

The release payment is to be made by way of four equal payments which are made in the last week of each calendar quarter or with mutual consent between NPDC and the Guardians.

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4 Investment policy

4.1 Introduction

The Fund operates one diversified investment strategy instituted by the FOA. The FOA is responsible for selecting and monitoring the underlying investment managers within most asset classes, with the exception being the Fund’s investments in private equity which were selected prior to the appointment of the FOA. The FOA will have responsibility for monitoring and managing these assets.

4.2 Strategic asset allocation

The Guardians’ have, in consultation with the FOA, developed the following strategic asset allocation and allowable ranges. The Transition range applies until 31 December 2017 unless otherwise agreed.

Strategic asset Allowable Transition range Asset class allocation % range % % Global equities – developed markets 40 25 - 55 25 - 55 Global equities – emerging markets 5 0 - 10 0 - 10 Private equity 17.5 10 - 25 5 - 25 Alternative assets 17.5 10 - 25 5 - 25 Total growth assets 80 60 - 95

Fixed income 15 5 – 25 5 – 25 Cash 5 0 – 20 0 – 25 Total income assets 20 5 – 40

Total 100

The total exposure of the Fund to growth and income assets is set out in the table above. The ranges for these override the ranges set for each individual asset class – i.e. the individual asset class allocations may not be such as to cumulatively have the effect of making the total exposure of the Fund to growth or income assets fall outside the growth or income range.

Currency Hedging Strategic asset Allowable Asset class allocation % range % Global equities – developed markets 100 80 - 100 Global equities – emerging markets 0 - Private equity 100 - Alternative assets 100 - Fixed income 100 -

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4.3 Dynamic asset allocation

The FOA has discretion to vary the actual asset allocation within the allowable ranges set out in the table above with the goal of increasing the prospective returns and/or reducing the expected risk to achieving the Fund’s objectives. This is referred to as dynamic asset allocation.

While not directly measured, the Guardians expect the FOA to add in the order of 0.50% pa from dynamic asset allocation decisions over the long-term. The Guardians recognise that this will be irregular in nature and is not expected to occur every year. When the FOA has no clear dynamic asset allocation views, it is expected that it will maintain the actual asset allocation close to the strategic asset allocation.

Dynamic asset allocation decisions notwithstanding, if at any time any asset sector falls outside its allowable range as set out above then the FOA will inform the Guardians and, as soon as practicable, arrange for a rebalancing to take place so that the actual asset allocation is rebalanced back within the allowable range.

4.4 Liquidity management

The Fund will generally have regularly quarterly cash flow requirements to pay the releases determined by the release rule. In the first instance, these shall be paid from the cash allocation. If the allocation to cash is approaching the lower bound, the FOA may act to redeem other investments to ensure sufficient cash is on hand to meet the cash flow requirement.

The FOA manages immediate liquidity requirements including, but not limited to, foreign currency hedging calls, timing mismatches during rebalances, et cetera.

4.5 Concentration risk

The Guardians expect the FOA to operate prudently with respect to concentration risk. This applies to both concentration with individual investment managers and concentration with individual securities.

The Guardians’ expectations are (with the exception of Cash); ● No more than 10% of the overall Fund’s value may be invested with any one active investment manager (including exposure to its related entities), there is no limit for exposure to a pure passive or enhanced passive manager, ● No more than 5% of the overall Fund’s value may be invested in securities relating to, or guaranteed by, a single entity1. ● No more than 10% of any one asset sector may be invested in securities relating to, or guaranteed by, a single entity1.

1 In the case of fixed income, exception is made for exposure to sovereign entities (including securities with an explicit guarantee from the particular sovereign) with a credit rating of at least AA from Standard and Poor’s (or equivalent from Moody’s or Fitch).

These limits do not apply at the fund level. For example, when using a multi-manager strategy, the individual underlying managers are considered and not the exposure to the multi-manager.

If at any time any of these limits are breached, the FOA will inform the Guardians and set out either (i) the process to be put in place to remedy the breach and the expected timeframe, or (ii) the reasons why it believes it is appropriate to retain the existing exposure and how long it intends to retain the exposure.

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In the case of (ii), the Guardians reserve the right to instruct the FOA to remedy the breach as soon as practicable.

4.6 Market Proxies

Due to the relative illiquidity of Private Equity and Unlisted Property and Infrastructure investments, the FOA may invest in listed markets as a proxy to achieve the desired allocation. Any proxy investments will be identified in reporting and will be treated as part of the asset class they are intended to proxy for compliance purposes.

The proxies to be used are:

Private Equity: Global Equities – Developed Markets

Unlisted Property: Global Listed Property

Unlisted Infrastructure: Global Listed Infrastructure

4.7 Full outsourced agent

The Guardians have appointed Mercer New Zealand Limited as the FOA, effective 1 March 2017.

The Guardians will review the FOA every three years, or more frequently as they see fit. The first review is scheduled for no later than March 2020.

Mercer will also be responsible for managing the investments of the PIF. Mercer proposes to implement the Guardian’s investment strategy via investment in the Mercer Investment Trusts New Zealand (“MITNZ”), a series of wholesale unit trusts, which offers a variety of multi-manager investment options. Other investment vehicles may also be used from time to time.

The trustee of MITNZ is Mercer Investments New Zealand Limited (“MINZL”). Mercer provides manager research and investment advice to MINZL and is responsible (among other things) for evaluating the effectiveness of the trusts, recommending managers, and monitoring and reporting investment performance.

Mercer will also be responsible for the management of any existing private equity investments within the TIML Portfolio that cannot be liquidated.

5 Asset class guidelines and policies

5.1 Introduction

The Fund’s assets are invested in line with the following parameters.

The Guardians accept that there may be cases where the underlying investment strategies selected by the FOA do not conform to all the desired parameters. When this is the case, any exceptions shall be noted by the FOA to the Guardians and the Guardians shall confirm their comfort with the investments.

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5.2 Overall restrictions

Global equities

Global equities are equity securities issued by entities listed on a public exchange. These include real estate investment trusts (REITs) and other property-related securities.

Global equities include developed market and emerging market equities with the exposure to the latter being approximately 10-15% of the total global equity exposure.

Developed market equities strategic target is to be fully hedged to the New Zealand dollar with an allowable range of 80-100%. Emerging market equities are unhedged due to cost and efficiency considerations.

The primary purpose of global equities is to provide capital growth over the long-term, taking advantage of the equity risk premium.

Global developed market equities are to be managed with a passive or enhanced passive approach, reflecting the Guardians’ belief that developed equity markets are relatively efficient. Emerging market equities may be actively or passively managed, reflecting the belief that there are more opportunities to add value, net of fees, in this sector but that good active managers may not always be able to be identified that may still lead to passive management.

Private equity

Private equity means equity holdings in primarily unlisted companies. These are expected to be diversified globally.

The Fund’s allocation to private equity in part includes direct investments by the Fund. The FOA retains the responsibility to monitor the proportion of the strategy allocated to private equity and advise the Guardians on the management of current and future private equity investments.

The primary purpose of private equity is to provide capital growth over the long-term, taking advantage of the equity and illiquidity risk premia.

Alternative assets

The primary purpose of alternative assets is to diversify the risk exposure of the Fund, reducing its overall volatility.

The PIF’s allocation to Alternative Assets may include Fund of Hedge Funds, Real Assets (eg Property, Infrastructure, Commodities) both in listed and unlisted form, and any other sectors as agreed from time to time.

Fixed income

Fixed income means debt securities issued or guaranteed by governments or corporations and is not limited to New Zealand entities. The Guardians will review the FOA’s investing guidelines (including restrictions around credit) and affirm their comfort with these. The fixed income sector is to be 100% hedged to the New Zealand dollar.

The primary purpose of fixed income is to reduce the volatility of the Fund by acting as a counterbalance to the equity exposure.

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Cash

Cash means investments in short term and highly liquid securities, such as government treasury bills and short-term bank deposits. The minimum short-term credit rating for a bank is A-2 from Standard and Poor’s (or equivalent from another recognised rating agency).

The primary purpose of cash is to provide liquidity to the Fund to meet its obligations.

5.3 Derivatives and leverage

Derivatives are financial instruments whose value and marketability are derived from, or linked to, the value of an underlying security, commodity or index that represents either direct ownership of an asset or the direct obligation of an issuer, otherwise known as the physical instrument. Derivatives include a wide assortment of instruments and include futures, swaps, forwards, warrants and all forms of options.

The strategic objective of derivatives is to facilitate risk management and to promote the implementation of investment strategy. The use of derivatives is subordinate to the investment strategy and must be consistent with the objectives of the investment strategy.

The following applies with the exception of the Mercer Alternative Assets Fund (Fund of Hedge Funds):

The use of derivatives as part of the investment strategy is permitted and may include the following: ● to manage risk or hedge against movements in interest rates, values or prices in relation to permitted investments and movements in foreign currency held within the Fund; ● to achieve or reduce exposure to assets, all or part of any asset class and foreign currency; and ● to achieve transactional efficiency or reduce the transactional cost of achieving required exposures.

Derivatives will not be used for investment activity where derivative exposure combined with physical exposure results in a net exposure for that asset class or the Fund which is inconsistent with the investment strategy.

The following instruments may be used: ● derivative instruments traded on recognised exchanges; and ● over-the-counter agreements, subject to the counterparty having an investment grade credit rating as measured by at least two recognised rating agencies and appropriate credit support arrangements being in place.

Derivatives may not be used to gear or leverage the Fund or any of the underlying investment strategies.

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6 Reporting

6.1 Introduction

This section sets out the regular reporting documents that are produced. In all cases, it is expected that significant changes in the circumstances of the portfolio, including those brought about through large movements in investment markets, shall be reported on as soon as practical.

6.2 Investment reporting

On a monthly basis, the FOA will produce investment reports for the Guardians that contain; ● Investment returns by asset sector and in total for the Fund versus the appropriate benchmarks/indices over the preceding ● Three months, ● One year, ● Three year (per annum), ● Five year (per annum), and ● Since inception (per annum). ● The market values and asset allocation of the Fund as at month end, shown against the Fund’s strategic asset allocation and the allowable ranges. In addition, on a quarterly basis, the FOA will produce investment reports for the Guardians that also contain; ● Brief commentary describing the drivers for recent performance over the last quarter and longer periods, both in an absolute sense and relative to the appropriate benchmarks/indices. ● Brief commentary detailing the current dynamic asset allocation positions – if any – and the rationale for these positions. ● Commentary on any significant developments or changes in research rating of the investment managers ● Confirmation of whether there have been any SIPO limit breaks or other material breaches or related party transactions .

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New Plymouth PIF Guardians Limited March 2017

Statement of Investment Policy and Objectives Appendices

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Statement of Investment Policy and Objectives New Plymouth PIF Guardians Limited 3.3

A Allocation of responsibilities

A.1 Introduction

The PIF Governance Deed sets out the responsibilities of the Council and Guardians in detail. This section highlights the key responsibilities with respect to the investments for various parties.

A.2 New Plymouth District Council (NPDC)

The NPDC has the following key responsibilities relating to the PIF’s investments; ● Appointment and monitoring of the Guardians, ● Annual review of the investment performance of the Fund.

A.3 Guardians

The Guardians have the following key responsibilities relating to the PIF’s investments; ● Adherence to the SIPO and the PIF Governance Deed, ● Monitoring the SIPO and its appropriateness, ● Reporting to the NPDC quarterly on the progress of the Fund against its objectives, ● Advising the NPDC of the amount to be released each quarter, ● Appointment and monitoring of the FOA, ● Monitoring of the investment performance.

A.4 Full outsourced agent (FOA)

The FOA has the following key responsibilities relating to the PIF’s investments; ● Meeting the Fund’s investment objectives, ● Selection and monitoring of the underlying investment managers, ● Monitoring the custodian(s), ● Reporting to the Guardians on the performance of the underlying investment managers, ● Dynamic asset allocation of the Fund’s investments, ● To have regard for the Guardians’ risk tolerances, ● To have regard for the Guardians’ responsible investment beliefs, ● To ensure the investments are managed in an operationally efficient and risk-managed way ● Act ethically and in the best interests of the PIF. ● To comply with all applicable New Zealand laws and standards.

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New Plymouth PIF Guardians Limited Statement of Investment Policy and Objectives 3.3

A.5 Custodian

The Custodian of the primary investment vehicle (MITNZ) selected by the FOA is responsible for holding and accounting for the assets in the MITNZ. The Custodian provides a range of services for the MITNZ including custody and unit administration services (such as unit pricing and unit registry services). The Custodian will report to the Guardians, on a monthly basis, the details of the investment holdings. This would be an independent confirmation of the value of the portfolio for the Guardians.

A.6 Underlying investment managers

The underlying investment managers have the following key responsibilities relating to the PIF’s investments; ● To meet the performance objectives set by the FOA, ● To ensure the investments are managed in an operationally efficient and risk-managed way, ● To comply with all applicable New Zealand laws and standards.

B Investment modelling

B.1 Introduction

Melville Jessup Weaver performed the following investment modelling in December 2016. This has informed the strategy set by the Guardians.

B.2 Return, volatility and correlation assumptions

Gross tax and fees Gross tax and net fees Return Risk Return Risk % pa % pa % pa % pa NZ shares 6.19 13.00 5.79 13.00 Australian shares 6.18 15.00 5.68 15.00 Global shares: unhedged 6.70 14.00 6.50 14.00 Global shares: hedged 8.70 15.00 8.50 15.00 NZ property: direct 6.00 10.00 5.30 10.00 NZ property: listed 4.56 11.00 3.86 11.00 Global property: listed 6.25 13.00 5.44 13.00 Private equity 10.00 17.00 8.48 17.00 Emerging markets: unhedged 9.88 20.00 9.01 20.00 Global listed infrastructure 6.13 12.00 5.32 12.00 NZ bonds 2.63 3.25 2.47 3.25 Global bonds: government 2.95 2.50 2.55 2.50 Global bonds: credit 3.45 3.50 3.05 3.50 Cash 2.10 0.50 2.00 0.50 Alternatives 6.25 11.00 0.00 0.80

85 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

Statement of Investment Policy and Objectives New Plymouth PIF Guardians Limited 3.3

NZS AUS GSU GSH NDP NLP GLP PVE EMU GLI NZB GBS GBC Cash Alt % % % % % % % % % % % % % % % NZ shares 100 Australian shares 57 100 Global shares: unhedged 42 63 100 Global shares: hedged 61 70 69 100 NZ property: direct 41 51 47 58 100 NZ property: listed 53 32 13 35 10 100 Global property: listed 48 54 32 63 43 39 100 Private equity 70 70 39 44 29 63 32 100 Emerging markets: unhedged 51 73 70 67 38 24 40 70 100 Global listed infrastructure 58 65 38 76 52 47 80 38 48 100 NZ bonds 3 -3 0 -16 -10 -10 4 -4 -11 5 100 Global bonds: government -16 -20 -29 -33 -5 -3 -8 4 -23 -5 62 100 Global bonds: credit 12 8 -17 5 9 11 34 24 -22 36 64 43 100 Cash -14 -3 -1 -11 1 -11 -14 4 -6 -17 18 14 10 100 Alternatives 0 -1 -5 -3 0 1 3 3 -5 3 13 14 14 2 100

B.3 Results

Results net of investment fees and after inflation Strategy % Return pa 5.2 Risk pa 9.2 Probability of loss over: 1 year 28.2 5 years 4.8 10 years 0.7

Probability achieving 3.3% target over: 1 year 58.1 5 years 74.5 10 years 83.8

1% left tail return Standard assumptions -14.1 Correlated growth assets -19.9

Explaining the above, the expected real return (i.e. after inflation) after investment fees is 5.2% pa, with a risk (volatility) of 9.2% pa.

This equates to a probability of loss over 5 years of 4.8% and a probability of achieving a real return of 3.3% pa of 74.5% over the same period.

The 1% left tail is the worst expected result at the 99% confidence level, i.e. the result for which 99% of the probability distribution is better. Under the standard assumption set, the worst loss is a return of -19.9%.

A further stress test was undertaken assuming that all growth assets become 100% correlated, i.e. that there is less benefit from diversification. This might occur if multiple markets have negative returns during the same period. This shows the 1% left tail result as -19.9%.

The results of this modelling are shown graphically in the following chart.

86 Performance Committee agenda (3 May 2018) - Decision - PIF Guardians Draft Statement of Intent for the Year ended 30 June 2019

New Plymouth PIF Guardians Limited Statement of Investment Policy and Objectives 3.3

Risk / Return chart Real, net of investment fees and tax 8%

Emerging markets: unhedged 7% Efficient frontier Private equity Global shares: hedged 6%

Portfolio 5%

Global shares: unhedged 4% NZ shares Alternatives Australian shares

Return paReturn Global property: listed 3% Global listed infrastructure

1% Global bonds: credit Global bonds: government NZ bonds Cash NZ bonds: government 0% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Volatility pa

87 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

Item for Decision 4 FORESTRY JOINT VENTURES DRAFT STATEMENT OF INTENT FOR THE YEAR ENDED 30 JUNE 2019

MATTER The matter for consideration by the Council is to receive and adopt the Draft Statement of Intent for the Council’s three forestry joint ventures for the year to 30 June 2019.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council adopt the Draft Statement of Intent (SOI) for the three forestry joint ventures for the year ended 30 June 2019.

COMPLIANCE

Significance This matter has been assessed as being of some importance.

This report identifies and assesses the following reasonably practicable options for addressing the matter:

Options 1. The SOI is a statutory requirement and must be adopted by 30 June each year.

The persons who are affected by or interested in this matter Affected persons are the general community.

Recommendation This report recommends option one for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant There are no significant inconsistencies with current policies Policy and Plan or plans. Inconsistencies

88 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

Item for Decision 4 EXECUTIVE SUMMARY The report recommends the receipt and approval for release of the Draft Statement of Intent for the 2018/19 year for the three forestry joint ventures.

BACKGROUND Under the Forestry Rights Registration Act 1983, the Council has three Joint Venture Forestry Agreements. These are:

Tarata Ngati Maru Pukehou joint Established in 1989 Located at Tarata venture McKay joint venture Established in 1995 Located at Ahititi Duthie joint venture Established in 1997 Located at Ararata (Hawera)

The joint ventures with the three partners are for an agreed share in the forestry harvest returns and the joint ventures were originally aimed at complementing the Council’s own ongoing forestry activities.

The three joint ventures are deemed to be council-controlled organisations (CCO) pursuant to the Local Government Act 2002 (LGA 2002). The Act requires the governing body (or board) to prepare a draft Statement of Intent (SOI) and submit it to the shareholders for comment. After consideration of any comments received the governing body adopts the SOI.

The joint ventures became CCO’s by definition rather than by choice and in view of the scale of the business they do not have a board of directors. In effect, the Council fulfils both the board and the shareholder roles. The draft SOI was prepared by an officer group prior to its presentation for consideration by the Council.

Each joint venture is covered by a formal legal document that specifies the details of the Agreement. The key factor in each of the Agreements is the ratio of return to each party upon the harvesting of each forest. Harvest returns are expected at the midlife of each forest (15-18 years) for production thinning and at maturity of each forest (25-35 years) for clear felling. The ratio of returns is calculated by comparing all costs to both the land owner and the Council (as owner of the trees) throughout the life of each forest. These inputs determine the respective percentages of return from sales of forest produce.

As each agreement has been negotiated between the joint venture partners there are variations in each document. A “combined” draft Statement of Intent is considered appropriate as the variations are minor.

89 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

Item for Decision 4 The Duthie and McKay joint ventures are currently in the growth phase of the lifecycle. Activity in these joint ventures include the ongoing management of trees in accordance with accepted silvicultural practice. The Tarata Ngati Maru Pukehou joint venture is expected to begin harvesting in April 2018 in order to take advantage of higher log prices. The previous Statement of Intent had indicated harvesting would occur in 2019/20. The Statement of Intent for 2018/19 has been prepared under the assumption that harvesting will be completed by 30 June 2018. The joint venture will be wound up at the completion of harvesting.

SIGNIFICANCE AND ENGAGEMENT In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because the SOI is a statutory requirement and must be adopted by 30 June each year.

OPTIONS

Option 1 Receive and adopt the Forestry Joint Ventures Draft Statement of Intent for the year to 30 June 2019.

Option 2 No alternative option available as this is a statutory matter.

Recommended Option This report recommends option one (1) for addressing the matter.

APPENDICES Draft Statement of Intent for the year to 30 June 2019 for the three forestry joint ventures.

Report Details Prepared By: Laura Harris (Financial Accountant) Team: Business Performance Group Approved By: Alan Bird (Chief Financial Officer) Ward/Community: District wide Date: 8 March 2018 File Reference: ECM 7663150

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90 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

4.1 Duthie Joint Venture McKay Joint Venture Tarata Ngati Maru Pukehou Joint Venture

DRAFT STATEMENT OF INTENT FOR THE YEAR TO 30 JUNE 2019

The three joint ventures listed above are council-controlled organisations (CCO) as defined in the Local Government Act 2002 (LGA 2002). The ownership and operation of the joint ventures is as follows:

Duthie joint venture New Plymouth District Council 54.82% J L & G C Duthie 45.18%

Tarata Ngati Maru Pukehou joint venture New Plymouth District Council 60.00% Ngati Maru Iwi 40.00%

McKay joint venture New Plymouth District Council 56.50% R B McKay & Others 43.50%

OBJECTIVES The objectives of each joint venture are to tend and manage the forests in accordance with the best principles of Silviculture to produce high quality saw logs for harvesting and to provide the New Plymouth District Council and the industry within the district a secure supply of saw logs. This activity complements the Council’s own forestry investment activities.

CONTRIBUTION TO COMMUNITY PRIORITIES These joint ventures are examples of public-private partnerships that enhance the growth and economic development of the district resulting in employment growth and creation of business opportunities. In addition, forestry enhances the environment thereby improving the quality of life of the district’s residents.

GOVERNANCE Management and control of the three forestry joint ventures is vested in the Council. The Council governance is performed through the Performance Committee and the Council. The Council’s Chief Executive is accountable to the Council for the operations of the three forestry joint ventures.

91 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

4.1 NATURE AND SCOPE OF ACTIVITIES TO BE UNDERTAKEN The joint ventures will establish and maintain (and eventually harvest) forests of approximately the following sizes, in the following areas:

Tarata Ngati Maru Pukehou joint venture Tarata 6.8 hectares McKay joint venture Ahititi 83.5 hectares Duthie joint venture Ararata (Hawera) 22.7 hectares

RATIO OF CAPITAL TO TOTAL ASSETS The ratio of joint ventures funds (capital) to total assets is expected to be 100 per cent for the next three years. The joint venture capital includes:

 Retained earnings  Reserve funds  Capital account

Total assets include the value of forestry.

ACCOUNTING POLICIES The policies will be consistent with:

 The Joint Venture Deeds of Agreement and partnership accounting principles.  The Financial Reporting Act 1993.  New Zealand Generally Accepted Accounting Practise (NZ GAAP).  New Zealand Public Sector Public Benefit Entities Reporting Standards issued by the External Reporting Board.  External Reporting Board pronouncements.

PERFORMANCE TARGETS The joint ventures performance will be judged against the following measures:

Duthie Joint Venture

1. Financial performance 2018/19 2019/20 2020/21 $000 $000 $000

(a) Net operating deficit (7) (7) (7) (b) Council funding support (7) (7) (7) (c) Net equity* 215 215 215

* Net equity is based on forestry valuations at 30 June 2017. There is insufficient data to make reliable estimates for future years given fluctuating exchange and commodity prices.

92 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

4.1 2. Silviculture and harvesting The performance of the joint venture is measured by ensuring that the trees are managed in accordance with accepted silvicultural practice. The Agreement sets out the following regime:

(a) plantation thinned to 300-500 stems per hectare; and (b) between 300-500 stems pruned in three stages to 6.0 metres.

Harvesting is not anticipated until 2024. No silvicultural activities other than inspection and maintenance are required during 2018/19.

McKay joint venture

1. Financial performance 2018/19 2019/20 2020/21 $000 $000 $000

(a) Net operating deficit (8) (8) (8) (b) Council funding support 8 8 8 (c) Net equity* 812 812 812

* Net equity is based on forestry valuations at 30 June 2017. There is insufficient data to make reliable estimates for future years given fluctuating exchange and commodity prices.

2. Silviculture and harvesting The performance of the joint venture is measured by ensuring that the trees are managed in accordance with accepted silvicultural practice. The Agreement sets out the following regime:

(a) planting at 833 stems per hectare; (b) plantation thinned to waste to 360 stems per hectare at age 7 years; and (c) pruning of 360 stems per hectare to 6.5 metres at age 7 years.

Harvesting is not anticipated until 2022/23. Upgrading farm tracks for logging trucks will be required in advance of harvesting. No silvicultural activities other than inspection and maintenance are required during 2018/19.

Tarata Ngati Maru Pukehou joint venture

1. Financial performance Dependent on harvesting being completed by 30 June 2018, net proceeds will be paid to the joint venture partners at the conclusion of the 2017/18 financial year, when the final accounts are audited.

2. Silviculture and harvesting Harvesting is due to begin during April 2018 and be completed by 30 June 2018. The joint venture will discontinue at the completion of harvesting.

93 Performance Committee agenda (3 May 2018) - Decision - Forrestry JV Draft Statement of Intent for the Year Ended 30 June 2019

4.1 DIVIDEND POLICY Until the joint ventures reach a stage where timber is able to be sold no return will be made to the owners by way of a dividend.

INFORMATION TO BE PROVIDED The following information will be made available:

 A final Statement of Intent including an annual budget, for inclusion in the Council’s Annual Plan process.  A Statement of Intent prior to the commencement of each financial year.  A six-monthly report on operations, including a comparison against the Statement of Intent and the budget within 90 days of the end of the first half of the financial year.  An Annual Report for the year which will also be made available to the public within 90 days of the end of each financial year.

PROCEDURES FOR SHARE ACQUISITIONS Not applicable in this case.

ACTIVITIES FOR WHICH COMPENSATION IS SOUGHT There are no activities for which compensation is sought from the joint ventures. It is noted that under each Joint Venture Agreement the Council is responsible for funding the operational costs, including silviculture.

COMMERCIAL VALUE OF THE PARTNERS’ INVESTMENT The commercial value of the partners’ investment in the joint ventures is estimated as equal to each joint ventures partners’ capital. This is based on:

(a) the rationale that each joint venture is a going concern; and (b) the fact that total assets are carried at their current net value as determined by independent valuers on an annual basis.

This estimate will be reassessed in the same manner on an annual basis. There is insufficient reliable data to make reliable estimates for future years given fluctuating exchange and commodity prices.

As at 30 June, the joint venture partners’ capital values were (pre-tax):

2017 2016 Tarata Ngati Maru Pukehou joint venture $111,249 $102,910 McKay and Others joint venture $811,925 $793,910 Duthie joint venture $215,188 $209,410

CAPITAL EXPENDITURE FORECASTS There are no anticipated capital expenditure projects over the next three years.

94 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

AMENDMENTS TO SPEED LIMITS 5

MATTER The matter for consideration by the Council is amendments to speed limits in New Plymouth District.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report and pursuant to the New Plymouth District Council Consolidated Bylaws 2010 Part 5: Speed Limits, the following speed limits in the New Plymouth District be amended: A. CLUSTER A  Carrington Road, Hurworth Create an 80km/hr permanent speed limit zone starting 700m south of the intersection of Saxton Road; extending for a distance of 3,490m, and terminating 200m south of the intersection of Baker Road.  Mangorei Road, Hurworth Create an 80km/hr permanent speed limit zone starting 200m south of the intersection of Junction Road (SH3); extending for a distance of 4,480m, and terminating 200m south of the intersection of Baker Road.  Baker Road, Hurworth Create an 80km/hr permanent speed limit zone starting at the intersection of Carrington Road; extending for a distance of 1,580m, and terminating at the intersection of Mangorei Road Street.  Atkinson Road, Hurworth Create an 80km/hr permanent speed limit zone starting at the intersection of Carrington Road; extending for a distance of 580m, and terminating at the end of Atkinson Road. B. CLUSTER B  Frankley Road, Ferndale Revoke the 70km/hr permanent speed limit starting 110m south of the intersection of Barclay Street; extending for a distance of 735m, and terminating at the intersection of Tukapa Street.  Frankley Road, Ferndale Create a 50km/hr permanent speed limit starting 110m south of the intersection of Barclay Street; extending for a distance of 735m, and terminating at the intersection of Tukapa Street.

95 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

 Tukapa Street, Hurdon Revoke the 70km/hr permanent speed limit zone starting 475m 5 south of the intersection of Cowling Road; extending for a distance of 625m, and terminating 195m south of the intersection of Patterson Road.  Tukapa Street, Hurdon Create a 50km/hr permanent speed limit zone starting 475m south of the intersection of Cowling Road; extending for a distance of 625m, and terminating 195m south of the intersection of Patterson Road.  Patterson Road, Hurworth Create a 50km/hr permanent speed limit zone starting at the intersection of Tukapa Street; extending for a distance of 280m, and terminating at the end of Patterson Road.

COMPLIANCE

Significance This matter is assessed as being of some importance.

This report identifies and assesses the following reasonably practicable options for addressing the matter: Options 1. Endorse the proposed amendments to speed limits. 2. Do nothing and retain the existing speed limits.

The persons/organisations who are affected by or interested in this matter are the local residents/property owners, AA Taranaki, NZ Police, Road Transport Association, the NZ Transport Agency (the Agency), Affected persons Frankley School, and Kahikatea Kindergarten.

The views of these persons/organisations are discussed in this report.

This report recommends Option 1 for addressing the Recommendation matter.

Long-Term / Annual No. Plan Implications

Significant Policy and No. Plan Inconsistencies

96 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

EXECUTIVE SUMMARY This report recommends lowering the speed limits in the Carrington/Mangorei and 5 Frankley/Tukapa areas in an effort to reduce the potential harm to the community associated with potential traffic crashes.

The speed limits recommended in this report are consistent with NZ Speed Management Guide and the Land Transport Rule: Setting of Speed Limits (2017).

BACKGROUND

1. Reason for the change NPDC has received two petitions (ECM#s 7423697 and 7636420) from the residents of Carrington and Mangorei Roads for a reduced speed limit to improve safety in their respective areas.

NPDC is aware of further development in the proximity of the Frankley /Tukapa intersection. This development is currently expected to add a further 40 residential lots to the local area and it is anticipated that another 50 residential lots is possible given the available land at this location. This would change this environment from semi-rural to urban, as the development takes place there will be is a demand to reduce the speed limit.

1.1. Why reduce speed limits? For the majority of the roads in the district there is a mismatch between what is an acceptable speed and the current level of protection provided by the vehicle, the road, and/or any traffic engineering solution. The frequency of death and serious injury crashes falls when speed limits are lowered and increases when speed limits are raised1,2.

2. Legislative requirements NPDC as a Road Controlling Authority3,4 is responsible for reviewing and setting speed limits on roads under its control5.

2.1. The review process NPDC may review speed limits at any time providing it is in accordance with Section 4 of the Rule which requires that a Road Controlling Authority must have regard to:  the information about speed management developed and maintained by the Agency; and  any relevant guidance on speed management provided by the Agency; and  the function and use of the road; and  crash risk for all road users; and  the characteristics of the road and roadsides; and  adjacent land use; and

97 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

 the number of intersections and property accessways; and  traffic volume; and 5  any planned modification to the road; and  the views of interested persons and groups.

2.2. The consultation process Section 2.5 of the Rule requires that NPDC consult with any persons and parties that may be affected by the proposed changes to the speed limit. This consultation must provide the potentially affected parties with adequate time to respond to the proposed change.

A sample letter is attached as Appendix A2 and B2. The AA Taranaki District Council, the Road Transport Association, the Agency, the NZ Police, Frankley School, and Kahikatea Kindergarten were also e-mailed and asked to provide feedback.

A public notice was also placed in the Midweek newspaper on 14 March 2018 that briefly detailed the proposed changes. A copy of all of the written responses received in relation the proposed changes is shown in Appendix A3 and B3.

2.3. The decision making process and notification of set speed limits As NPDC is empowered to make bylaws, it must set the permanent speed limit by making a bylaw and that process must take into account the submissions received during the consultation process.

3. Specific site information

3.1. Cluster A - Carrington, Mangorei, Baker, and Atkinson The current speed limit for this cluster is 100km/h and this section includes approximately 10.1km of rural roads. The northern half is predominately rural lifestyle development and the southern half is less developed.

There have been 28 reported crashes within the past 10 years within this cluster of roads. One fatal crash, two serious, and nine minor injury. Poor handling and excess speed were identified as factors leading to these crashes and the main crash type was loss of control on a bend/head-on.

The Safe and Appropriate Speed limit as calculated by the Agency for this Cluster of roads is 80km/h. Speed counts undertaken in early March 2018 show that the average speeds are 82.3km/h on Carrington and 74.9km/h on Mangorei.

98 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

3.2. Cluster B - Frankley, Tukapa, and Patterson The current speed limit for this cluster is 70km/h and this section 5 includes approximately 1.5km of rural roads. The Frankley Road section is predominately rural lifestyle development, that is currently being further developed and Tukapa Street is less developed.

There have been 2 reported crashes within the past 10 years within this cluster of roads. One minor injury and one non-injury crash. Speed was not identified as a factor in these crashes.

The Safe and Appropriate Speed limit as calculated by the Agency for this Cluster of roads is 40km/h and 60km/h in parts. This does not take into account our local knowledge that must be applied as part of this process, in this instance the further development that is programmed to start this year. Speed counts undertaken in early March 2018 show that the average speeds are 63.1km/h on Tukapa and 56.9km/h on Frankley.

NPDC is aware of or has consented to further development in the proximity of the Frankley /Tukapa intersection. This development is currently expected to add a further 40 residential lots to the local area and it is anticipated that another 50 residential lots is possible given the available land at this location. This would change this environment from semi-rural to urban.

SIGNIFICANCE AND ENGAGEMENT In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because the proposed changes can be funded from current transportation budgets.

Consultation has already been undertaken with interested and affected parties to obtain their views and preferences on the matters proposed in this report. Their views are covered in the options assessment section of this report.

OPTIONS Community / Organisations Views and Preferences: The following information provides a summary of the consultation undertaken for each matter proposed in this report.

Local communities The local communities of Hurworth, Ferndale, and Hurdon are considered to be most affected by the proposal and hence were consulted in relation to the proposed changes. The Council has received written responses both in support and against the proposed changes (97% in favour for Cluster A and 95% for Cluster B). These responses are attached as Appendix A3, and B3.

99 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Local Schools Frankley School and Kahikatea Kindergarten are deemed key stakeholders and 5 hence was consulted in relation to the proposed changes regarding Cluster B. Both Frankley School and Kahikatea Kindergarten have expressed their support for the proposed changes.

The NZ Transport Agency The Agency is deemed a key stakeholder and hence was consulted in relation to the proposed changes. The Agency fundamentally supports both speed limit changes as, in the opinion of the Agency, they have been correctly set in accordance with the guidelines and the Rule.

The Agency would also like to express their enthusiasm to take a one-network approach to further speed limit changes, particularly in regard to the Junction / Mangorei Road intersection which is in close vicinity of the proposed changes to Cluster A.

NZ Police The NZ Police are deemed a key stakeholder and hence were consulted in relation to the proposed changes. The NZ Police has expressed their support for the proposed changes.

The Road Transport Association The Road Transport Association are deemed a key stakeholder and hence were consulted in relation to the proposed changes. The Road Transport Association has expressed their support for the proposed changes.

NZAA Taranaki District Council AA Taranaki are deemed a key stakeholder and hence were consulted in relation to the proposed changes. AA Taranaki has expressed their support for the proposed changes to Cluster A.

AA Taranaki do not support the proposed change at Cluster B as they are of the opinion that it does not align with what the Agency deems to be the safe and appropriate speed for the area (being 40km/h on Tukapa and 60km/h on Frankley).

AA Taranaki are of the opinion that the existing 50/70km/h change only needs to be moved further down Frankley Road and that the existing 70km/h speed limit on Tukapa is appropriate.

The option proposed by AA Taranaki does not align with what the Agency considers to be the Safe and Appropriate Speed for the area and does not comply with the Land Transport Rule: Setting of Speed Limits (2017) which is discourages 70km/h speed limits.

100 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

AA Taranaki have also not considered the local knowledge that has been applied to Cluster B. The limits as recommended by the Agency are based on their 5 knowledge of the local network. The Agency encourages us to apply our local knowledge to make a more robust determination of the Safe and Appropriate Speed.

Option 1 Endorse the proposed amendments to speed limits. a) Financial and Resourcing Implications The costs for implementing this option are for roadmarking and signage and these costs are covered within approved operational budgets. b) Risk Analysis There are no risks that we have identified by endorsing these speed limit amendments. c) Promotion or Achievement of Community Outcomes This option promotes the People and Prosperity community outcomes by improving safety and amenity for the community. d) Statutory Responsibilities The measures must comply with Council bylaws, relevant standards, regulation and statutes, particularly the Traffic Control Devices Manual and NPDC Bylaws Part 5: Speed Limits. e) Consistency with Policies and Plans This option is consistent with the Long Term Plan and one of the key performance indicators for Roads and Footpaths which is reducing the number of fatal and serious crashes in the District. f) Participation by Māori There are considered to be no specific issues relating to Maori with this option. g) Advantages and Disadvantages This option is recommended for addressing the matter as it is cost effective and contributes to meeting the expectations of the community.

Option 2 Do nothing and retain the existing speed limits. a) Financial and Resourcing Implications This option comes with no immediate cost but it may leave the Council exposed to cost at a later date to address consequences of not addressing some safety or amenity issues at this time.

101 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision b) Risk Analysis Some of the matters proposed are to address a current issue of non-compliance 5 with standards, good practice or bylaws. Not addressing these matters may expose the Council to risk for failure to act on a known issue. c) Promotion or Achievement of Community Outcomes This option will not promote any community outcomes. d) Statutory Responsibilities This option may prevent the Council performing some statutory responsibilities. e) Consistency with Policies and Plans This option would be inconsistent with the Long Term Plan with regards to meeting community expectations and improving safety on the transportation network. f) Participation by Māori There are considered to be no specific issues relating to Maori with this option. g) Advantages and Disadvantages This option is not recommended due to the risk involved with not addressing the matters and that community consultation generally supports all the measures promoted.

Recommended Option This report recommends Option 1 which endorses the amendments to speed limits as proposed.

APPENDICES Appendix A: Cluster A. A1 Plan of the proposed changes. A2 Copy of letter to potentially affected parties A3 Copy of written feedback received

Appendix B: Cluster B. B1 Plan of the proposed changes. B2 Copy of letter to potentially affected parties B3 Copy of written feedback received B4 Copy of comments from NZAA Taranaki District Council

102 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

5 Report Details: Prepared By: David Brown (Traffic and Safety Engineer) Reviewed By: Carl Whittleston (Manager Transportation) Team: Transportation Approved By: David Langford (Infrastructure Manager) Ward/Community: District Wide Date: 27 March 2018 File Reference: ECM 7675856

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Footnotes:

1 Anderson G, Nilssen G. Speed management in Sweden. VTI: Linköping, 1997. 2 Insurance Institute for Highway Safety. Special issue: low priority assigned to highway safety. Status Report 2002; 37 (10). 3 Local Government Act 1974, Section 317 4 Land Transport Act 1998, Section 2. 5 Land Transport Rule: Setting of Speed Limits 2017, Section 2.2.

103 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

APPENDIX A1: Plan of proposed changes. 5.1

NORTH

104 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

APPENDIX A2: Copy of letter to potentially affected parties: 5.1

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9 February 2018

The Householder Carrington Road / Mangorei Road / Atkinson Road / Baker Road NEW PLYMOUTH

Dear Sir/Madam

RE: CARRINGTON, MANGOREI, BAKER, ATKINSON; CHANGES TO PERMANENT SPEED LIMIT

Following requests from local residents and to improve safety in the area, the New Plymouth District Council is proposing to change the existing 100km/h speed limit on Carrington, Atkinson, Baker, and Mangorei Roads to 80km/hr.

The diagram overleaf shows the area where we are proposing to make the change. We consider you to be potentially affected by this proposal and have sent you this letter asking for your feedback. Your feedback (for or against) is important to us and will form part of a report that will go before Council for their consideration.

To provide your feedback or if you have any other enquiries please do not hesitate to contact me by e-mail: [email protected] or phone at 06 759 6060 by 23 February 2018.

Yours faithfully

David Brown TRAFFIC SAFETY ENGINEER

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Please note: The diagram referred to in this letter is the same as that shown in Appendix A1.

105 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX A3: Copy of written feedback received: Feedback Written resident feedback 5.1 received from Steve and We strongly support the reduction of the speed limit in these areas. We reside at 608 Mangorei Road and our driveway is concealed around a bend to traffic travelling towards Anne Barry Junction Road. We have had several occasions where cars travelling at 100 kph nearly collide with us whilst exiting our driveway and on one occasion have experienced a frightening road rage incident against us through no fault of our own. If cars were travelling at 80 kph, we would of course not be at risk of these near misses. Ours is not the only concealed driveway – there are several. Mangorei Road is a very winding road in parts and is not suitable for 100 kph. Unfortunately, the open road limit misleads drivers into thinking 100 kph is safe. Traffic has increased on Mangorei Road with subdivisions and new houses being erected. This also means the school bus stops more frequently with children disembarking and crossing the road. Add to this the popular Mangorei track to Pouakai Hut which also generates traffic. Please consider our submission ‘for’ the proposed change and we look forward to receiving an update in the future. Debbie I fully support reducing the speed limit from 100 to 80km. We built at 576a Mangorei Road almost three years ago and the speed some of the cars and large trucks come Taylor around the bend is frightening, as is mowing the lawn on the road edge. Look forward to hearing that this proposal gets passed and quickly before an accident happens. Rex and Pam Firstly, the letter to Householders is a well presented and I compliment you on its quality. Well done. As the instigator of the Carrington Rd petition, it follows that I am "For" Ward the proposed changes to reduce the permanent speed limit. I also need to emphasize the petition contains 69 "Fors" from the 72 properties visited. ie 95.8% properties signed the petition in favour of changing the speed limit. I note that the letter is addressed to "The Householder" and that responses that are relevant to your survey would be only those that are indeed Householders. Not outsiders so to speak. It is quite possible that Householders that signed the petition in favour of or "For" a change may not respond by 23 February due to various reasons including that they may feel the signing of the petition is sufficient feedback for Council to act on. Therefore, it is reasonable to assume that the household signatures on the petition will be given the relevance of appropriate "feedback". I have attached the data and feedback notes given to Marie Pearce who presented the petition to Council as reference material for you. Bruce I am supportive of the reduction in speed limit from 100 km to 80 km/h for Mangorei Rd. However, I notice that the speed limit goes back up to 100km/h in the last section of Gatward- Mangorei Rd before reaching SH3. This is the section I live on and we have a really problem with speeding traffic on a winding section of road with numerous domestic Cook driveways. I would like to see the 80Km zone go right up to SH3. In addition, the intersection of Mangorei Rd and SH3 could be a lot safer for turning traffic – there is no turning lane for traffic coming from New Plymouth and turning right into Mangorei Rd. In the last month there has been one accident alone with a turning car into Mangorei Rd being rear-ended as there is no safe turning lane. Personal info Position: AGAINST the speed limit change proposal, as it stands. My partner Franz and I are residents on Carrington Road, before Baker Road; within the proposed area. Our suppressed. Feedback as residents and frequent road users of Carrington, Mangorei and Baker Roads. - Agree MANGOREI road is full of blind corners and is narrow in some places, and are FOR the change in limit to 80km/hr. Frequent cyclists, trucks and driveways make this road difficult and have come across dangerous car driving as well as animals on the road. - Against BAKER road speed limit change. This road whilst busier than in previous years, has not had a increase in driveways, and can safely be travelled at a closed speed by motorists, cyclists and trucks. - Against CARRINGTON road speed limit change. The section of road leading to Baker Road can safely be driven at 90-95km/hr and still allow road users to see cyclists, tractors and trucks. Reducing the speed limit will not be a solution to the issue this road actually has. ENERAL FEEDBACK - instead of reducing speed limits which will make it more difficult for road users to overtake slower vehicles and cyclists; - On the proposed roads put in place a bylaw that CYCLISTS MUST cycle in single file. On numerous occasions we have come across packs of >10 cyclists 3 and 4 abreast. Unable to be overtaken safely and holding up queues of traffic which is illegal. - On the proposed roads, increase the berm for vehicle pull off - On the proposed roads install a single lane cycleway - Further monitoring of vehicles and speed should take place before decisions are made on change speeds. Of note are the numerous "boy racers" that frequently use Mangorei Road, Baker Road and Carington Road as a "loop" to speed, rev their engines and especially at the Baker Road bridge and intersection; test their traction with the practice of "sustained burnouts" and the numerous tyre marks are evidence of this. This illegal activity disturbs the nature of the area and more seriously is dangerous to other road users and residents. Safety is not always about reducing speed, but changing road users and how they use the road. We are experienced road users (20+ years driving each), avid Motorcyclists and National Level Motorcycle Road Racers. The latter two afford us knowledge and experience of road safety alternate to just cars, and our road racing careers highlight that even at slower speeds, should a crash happen, injuries can be just as severe than at high speeds. If there is an opportunity for providing further feedback, joining a consultation group or working group, Nicki is more than happy to contribute her time towards traffic safety. Adrian It was with great relief and appreciation when I read the notification proposal to changes in the speed limit on Carrington and Mangorei Roads received in the mail today. McLeod Being a resident of Carrington Road for 40 years and being witness to picking up the pieces of (one fatality) a number of accidents over the years you can understand how we all feel on this. With the recent increase in housing on the upper reaches of both roads the traffic volume and speed has increased dramatically and extending the 50 k zone out with no 70 k buffer zone was just a no brainer as was quickly made clear by newspaper letters and a very successful partition signed by most of the community. I realise

106 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from any changes do take a lot of time and legal notification and appreciate the end of year holiday period came about during the process, so wish you all the best with the 5.1 application. Matt Just letting you know that I approve the proposed change to the speed limit. Many people, myself included, use bicycles on this road. Williams Chris Rogers This email is in response of the notification received pertaining to the Carrington road changes to speed limit, I can confirm that we agree and would support these changes to drop the existing limit from 100 to 80 km/hr, in the 5 years we have been here we have noticed the increase in traffic and it is a little difficult at times to get across the the road from the driveway before vehicles are upon you coming over the hill. This mixed with the amount of cyclist that use the road I feel would be of a great safety benefit for the users. Niels I was so happy to receive this flyer today. -Yes I’m all for the speed changes. - I’ve lived @ 604 Mangorei for the last 18 year, in that time the traffic flow up and down our Piebenga lovely country road has increased considerably. - I have always been concerned about the “boy racers“ using these roads to get their thrills. - I never seem to see any police trying to control the speeding as I guess it’s very low on their radar. Knowing this the cars & bikes take full advantage. - I would love for My three Kids to be able to bike too & from school without having to worry so much about them getting hit. - So to drop the speed limit down would be a great step in the right direction. Anne Fraser Both Ross and I think this is a good idea. As we have moved up there 8 months ago from Strandon, we have found that we go under this speed anyhow as we are only 1km from the 100km sign. May I mention at this time that although you have cycle signs warning motorists that they are on the road, there is hardly any room either side of the road from the end of the footpath on Carrington Rd up to Atkinson Rd (where we live), for cyclists. I am a walker and I find just that short km quite scary as there is no room unless one goes in the gutter. Maybe you could look at this this at a later date or sooner. John Connor Thank you for your letter regarding changing the traffic max speed on Carrington Rd. As a resident of the affected section of road I give my full support to the proposed reduction to 80 km/h.

Jana Branca Thank you for considering to permanently change the speed limit of our roads. We live on Mangorei rd and we think it’s a safe and good decision. Taania and Just emailing in regards to the letter we received to decrease the speed limit to 80km for mangorei, Carrington, Baker and Atkinson road. Timo We have 3 children 2 which are at school and 1 at kindy so I am using the road at least 4 times a day and feel it would greatly benefit from being decreased to 80km. Tutavaha Too many drivers think that because the speed limit is 100km that’s what should be driven and by the amount of accidents we have seen over 4 years (reported and some not due to cars leaving the scene but leaving gaps in hedging and fences damaged) shows cars are going way too fast. It's not going to stop all drivers from speeding but if the limit was reduced to 80km by law then that would make people think twice. Also with the new parking going up the top of mangorei road by the Pouakai walk, we will have more tourist driving the road and if the speed limit is 100km they will drive this because they think you can. Bringing it down to 80km will prepare them for the unexpected winds in the road. Getting out our driveway would be much easier also as cars wouldn’t be coming up behind you so fast! Definitely want to see a decrease in speed to 80km as there are many more houses on these roads so are used very often. Sarah Tullett This household at 693 Carrington Road fully supports the reduction of the speed limit from 100 to 80km. We have had a number of near misses coming out of our drive way and Wayne due to excessive speed and visibility on corners. Morris Paul I live at 782 Mangorei Rd and we fully support the reduced change in the speed limit from 100kph to 80kph. Being a rural rd the 100kph speed limit is way too fast for such a Wharepapa small tight road, it's bad enough we have the odd car doing skids and burn outs up the hill. I feel 100kph should be left for the open highways where the roads are widely constructed for that speed. So for our household, the sooner the speed limit is changed the better. Nancy and I wish to respond to your letter regarding. Carrington, Mangorei, Atkinson and Baker Roads. We believe the speed should be lowered to 80K. However we would really like to Kevin Smith see it go as far as Hurworth Road. My Husband has lived here all his life, and I have been here 49yrs. Back then we had only 5 Entrances from Baker to Hurworth Road, now we have. 18. This stretch of road just gets hammered. They get to Hurworth Road then just boot it, a lot well over 100k, We could write a book on all the cars that have gone through our fences over the years. I used to enjoy going for walks every day. But have had to stop, because of the Traffic and the speed, it is no longer safe. I hope you will consider this and go as far as the Hurworth Road, before someone gets seriously hurt or killed.

107 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Dave and We have recently built at 761 Carrington Road. We are 100% in favour of a speed limit reduction to 80 km/h, having seen numerous instances of dangerous driving and close 5.1 Nikiki Cory calls on Carrington Road between the New Plymouth boundary and Baker Road intersection. We would like to point out a recent crash (6 weeks ago) on the corner between 665 and 696 Carrington, where a black station wagon overshot the corner, crossing the centreline and rolling the vehicle through fencing and trees, coming to rest upside down in the neighboring paddock. Thankfully there were no oncoming cars, as this would more than likely have resulted in a fatality. The likelihood of an serious incident has clearly increased with the amount of new homes in the area, and at 100km/h it is only a matter of time before someone is seriously hurt or killed while leaving their driveway. If we can be of any further assistance, please don't hesitate to contact us at any stage. Jared McKee I would like to see the speed limit remain at 100kph. I live at 799 Mangorei along with my partner and two young kids, we travel this road several times daily myself for work and my partner for school drop off / pick ups. We have both seen some terrible driving on this road, from large trucks to small Suzuki Swift size cars that can not seem to keep to their side of the center line. Tonight I followed an elderly person in a Toyota SUV from the main road, this person did not go over 80kph and was at times down to 60 on the bends, even at those speeds they were having difficulty staying in their lane, and crossed the center line on all but the 45kph posted crest into the dip near the proposed power station, this seems to be a much bigger issue that no one wants to address yet head on collisions only occur because someone can't keep to their side of the road. I have followed a lady towing a horse float from my front gate to the main road who only seemed interested in keeping the tow vehicle on the correct side of the road, the horse float wheels were over the center line pretty much the entire time. My partner and I don't have any issues keeping in our lane (both in larger vehicles) at the currently posted speed limit which we would like to be kept at 100kph I know that there is the odd individual that likes to speed up and down the road, but even with a lower posted limit this will not change, from my understanding there has not been a fatal or serious incident on the stretch of Mangorei Rd within the proposed speed reduction area. The limit between Waitara and Bell Block has been lowered and there has still been several fatalities since. SPEED IS NOT THE ISSUE, the issue is inattention and failing to stay in ones lane, and people still fail to do this at much lower speeds. In summary my partner and I would like to see the limit remain at 100kph. Maybe it is time for the NPDC to run a safety campaign aimed at reminding drivers that we drive in the LEFT lane. Leigh Thank you for your householder letter and for doing such a great job out there and for proposing to change the speed limit on Mangorei Rd. We are on Mangorei Rd and closer Gatward- to Junction Rd to Inglewood end - on the countryside of Mangorei Rd. We own the little 1840s BnB at 564 Mangorei Rd. I worry for the safety of tourists coming out onto Cook Mangorei Rd as the speed of cars coming down the hill is at least 110 to 120km - people are speeding down this road and it is extremely dangerous trying to get out of our driveway. Most cars speed both ways (to the main road). I would dearly love that the whole country side of Mangorei Rd be at least 80km - stopping and starting 100km to 80km will not stop people from speeding. It looks like we are still 100km on the map as we are before Baker St. There are many houses before Baker St and all have a dangerous time of getting out of their driveways. Why does it need to be 100km we are not a main rd or highway? On another note I would also like to see a shoulder on the Junction Rd - turning into the Country side of Mangorei Rd, someone was rear ended on the 100km rd entering into Mangorei Rd - I feel scared everytime I turn as you are turning from 100km rd with no shoulder to safely pull into. Thank you for your time David and for considering the above, I hope that people down our way have contacted you also. Claire Having just this week once again witnessed a near miss between two cars at the Baker/Carrington Rd intersection I would like it to be noted that I am fully in favour off the Glasgow proposed changes to the speed limit. With a large number of cyclists/walkers on the road and children using the school bus for pickup and drop-off during the week 80 kph is by far the safer speed. Bharat I think the proposed speed limit changes for Carrington, Atkinson, Baker and Mangorei Roads are sensible considering the increased number of houses and therefore traffic on Bhakta these roads. Rodney I live on Atkinson Road and I can understand your proposal to limit the speed limit in the above named areas to 80km/hour. However, if your proposal is implemented then I Wilson consider that Council should also install a turning bay on Carrington Street for traffic turning right into Huatoki Street. Currently, there are always a number of cars parked on both sides of Carrington Street, particularly the east side. I understand many of these cars are parked here as they are clients of the Face to Face Fitness Studio. If you are following behind a vehicle which turns into Huatoki Street then you always have to stop as there is no ability to go around the vehicle due to the cars parked on the side of the street. This not only restricts the flow of traffic but is an accident waiting to happen. If the speed limit is reduced to 80km/hour then the traffic should be allowed to continue to flow. With the increased development that is occurring in Fernbrook Drive then the issue is only going to get worse. I look forward to hearing the outcome of my suggestion. Roland Swift We fully support the reductions in speed limits proposed on all the proposed roads. The fatality at the end of Atkinson Road shows that 100km/hr is too fast given the density of and Fiona housing and land use along the fringes of New Plymouth. Our only additional comment is that the proposed reduction to 80km/hr on Atkinson Road does not go far enough McLaren and it should be reduced to 50km/hr. The road is about 500m long with a right angle bend in the centre and houses along its length. It would be possible to get up to 80km/hr but it would be extremely dangerous. In reality most people go below 50km/hr on the road but if there were a serious accident, a driver going at 80km/hr could claim they were within the speed limit even though it would be extremely reckless.

108 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Adrenne I would like to register my support for the change in speed from 100 to 80 for the proposed area. We live near corner that sees too many accidents so we hope the change 5.1 Barnes may help prevent a real nasty one. Thus far in our 6 years here the accidents are minor enough that they would not be registered anywhere for the corner to be looked at. We do feel that there is something not right with the corner as accidents shouldn’t occur as frequently as they do and speed is not always a factor. Is there a process for this? Melissa I am in favour to have this reduce. We live at 618 Mangorei road on the right-hand-side going up. We are at the start of a little stretch of straight road after coming around a Dobson blind corner. We have had numerous near misses and I mean just near misses with speeding drivers coming around the corner while I am waiting to turn into my driveway and nearly taking me out especially if I am waiting for on coming vehicles coming the other way. So much so I had a van come round screamed on his brakes and was coming at me sideways I had to take off again up the road a little to miss him up my backside! All my friends drive pass and turn then come back down the road in fear of this. Also my kids catch the country bus as well so they are standing out by the letterbox along with all the other students at their letterboxes with these cars going 100 or more passed our driveway. This road in the 3 years that we have lived here is getting busier and busier with the golf club and Pouakai crossing and sub divisions happening up and down the road. It will only get busier now that the Pouakai crossing is out there in the world. Please have a long look at this and change it for everyone's bit of peace of mind. Sonia Cloke I live at 953 Mangorei Road, directly opposite the end of the Baker Road and have grown up at 850 Carrington Rd prior to that. I am absolutely AGAINST the proposed changes, I have two young children and I myself have grown up “waiting on the side of the road for the school bus” / living in a 100km speed zone. I do not consider this to be an issue, we live in a rural area with working drystock and dairy farms in the area. I find the speed limit perfectly acceptable and accept that should I choose to live in a rural zone that there will be number of trucks and service vehicles using these routes. The issue is not and never has been the speed limits, reducing the speed limit will not stop the minority of drivers (generally car drivers / boy racers) who ignore any speed limit and use both ends of Baker Road as a burn out track, I believe it is these drivers that are cause for concern not the speed limit. I was never approached to sign the original petition and neither would I of supported this. I would hazard a guess that the majority of people that consider this an issue are in fact those who are relatively new to the area / having not grown up in rural zones. Perhaps these people are best suited to a residential area where the speed limit is 50km. Lynne I live at no 572 at the bottom of the hill heading south past Atkinson Road and believe me the speed is well in excess off 100kph when cars pass our driveway making it a very McAlpine dangerous exercise to exit our property. We were interested to see the extension of the 50kph past the start of Carrington Road and agreed with this decision, but really going from 100kph straight to 50kph was so unsafe. What happened to the 70kph zone between the 2? A 70kph zone from Atkinson Road to the new start of the 50kph zone would have been the most logical and safe option. Unfortunately I was one of several residents in our area to be ticketed by a Traffic Policeman on the week of January 22 who very cunningly positioned himself just beyond the 200 meters leeway beyond the start of the 50kph sign (he told me that there is a 200meter leeway). Yes I was travelling at more than 50Kph but still had the 70kph mindset between the 2!!! I did write to the Police infringement Bureau and mentioned the lack of safety going from 100kph to 50kph and they tried to tell me that they have nothing to do with the speeds on the roads!!!!! Maybe he would have been better occupied out in the Waitara and Corbett Road areas where we have some greater Road Safety issues, especially when I read that we are woefully short of Police in our region!!! Never mind that is in the past and now we all look forward to the future when the speed limit comes down to 80kph. Errol Tuffery I would agree with the 80 km/hr restriction on lower mangorei road. The present speed limit is dangerous, and there have been some near accidents at our gate. The Intersection of Mangorei- Junction road is very much more dangerous and NZTA should designate that a 80km/hr from Burgess Park hill. Chris and We fully support the change requested by residents to lower the speed limit from 100km/hr to 80km/hr on Carrington, Mangorei, Baker, and Atkinson Roads. Having just lived Carolyn on Mangorei Road for the last 8 months we have seen the speed some drivers think they can travel, in most cases it would be in excess of 100km/hr. Many forget it has many Burgham driveways, children catching buses, motorcyclists, and a number or cyclists that use this circuit for training purposes. Many motorcyclists do horrendous speeds past as you can hear them coming miles away and with so many blind corners it a wonder more accidents or deaths have not occurred! We have seen a number of near misses and crazy passing outside our house already! For the safety of all this change needs to happen.

109 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Kerryn Thank you for the opportunity to feedback regarding speed limits up Carrington Road. My family wholeheartedly support a reduction in the speed limit to 80kms. Furthermore 5.1 Nicholls we would like to take this opportunity to also ask of the validity of putting in a combined cycle/running/walking lane following the half marathon circuit of Carrington/ Frankley. It is getting increasingly hazardous for joggers and cyclist wanting to use this lovely circuit for training and leisure. We have 3 teenage children and currently don't feel they would be safe riding their bikes the 2 k stretch into town due to the lack of verge and the increase in traffic and cell phone distracted drivers. We are an active family and would love to all be riding to work and school. Easing pressure on traffic and supporting our councils ‘let’s go’ cycling incentive, but we can’t as it is too dangerous to be on the same lane as the traffic. It seems a shame that we have noticed a huge reduction in the people riding/ walking out here over the last few years. The speed reduction may help but a cycle/walk lane would be much safer. Just last year a friend of mine narrowly escaped major injury with a near miss up by Ratanui, with a vehicle passing her bike on a blind corner and having to swerve off into the Ratanui in order not to hit the pick-up coming around the other way. People are often walking/running right out in the oncoming lane and we are very worried someone is going to get killed if something isn’t done . We love the fact that the council are encouraging people to cycle up Carrington Rd with the installation of the cyclist signs but believe that this brings a responsibility to make the road safe to cycle on through an addition of a cycling lane. Even at 80km/hr the stretch of road between the edge of town and Baker road is hazardous. Kelly We live at 754 Carrington Road, New Plymouth. We support the lowering of the speed limit to 80 kmph. Marriner Anthony We are at 709 Carrington Road and my wife and I face tremendous risks just to turn out of our drive onto Carrington Road. I personally have had some scary near misses due Jaques to the sheer pace of vehicles coming round the bend and passed us. We have heard from our local conmunity of the accidents over the years, including fatalities of loved ones. We see accidents that have just happened and just recently an overturned car abandoned on the roadside. The safe speed on the bendy parts of our roads is 80 and yet some drivers will not ease off and if you do yourself you will be tailgated in an aggressive manner. Life is so precious. This proposal gets my 100% support and I know that many of our visitors would also support the change. Cheryl Talbot We absolutely support the 80 km/hr speed limit as we are situated at 619 Carrington Road and sometimes cars travelling towards Baker Road virtually come around the corner, very close to our driveway, on two wheels. It is becoming more and more difficult to pull out of our driveway on to the road whether we are turning left or right. The current speed limit of 100 km/hr is way too fast for the this country road which was not designed for this traffic, especially now that it is shared with walkers and cyclists and the ever increasing number of trucks going past. Gerard and Brenda and I have owned 582 Carrington road since 2006. We strongly support the proposed reduction in the speed limit from 100km/hr to 80km/hr, on safety grounds. Brenda The whole nature of the area has markedly changed in terms of traffic volume and traffic type over the last few years. With new subdivisions etc, there are more family cars McCarthy and more heavy trucks with metal, building supplies etc. The road is now very busy. Carrington road probably gets a lot of traffic from Mangorei road, crossing over via baker road, heading into town. This can only get worse over time. We have 2 teenage children with us, one learning to drive currently. (2 more are here in the holidays from university). The main problem we have is turning left from our driveway, heading into town, with cars from our right, coming at speed down the hill. - It is a windy road and there is just a narrow timeframe for turning onto Carrington road, before cars become visible at the top of the hill. I have taught the kids to put down the driver's window and listen for vehicles also. Cyclists, occasionally horses are also an issue. I generally only drive 80-90km/hr anyway as I think this is appropriate for the road. I rarely drive 100km/hr along this road, as I think it's just too dangerous- no hard shoulder, limited overtaking options. Brenda and I both feel strongly on safety grounds that the speed limit should be reduced from 100km/hr to 80km/hr. Pauline and We write to endorse the proposed change lowering the speed limit to 80km/hr. We believe it will do much to improve the safely of the road especially when residents are David slowing down to enter their drive ways. Last year our daughter was hit in this exact circumstance when she had slowed, plus indicated she was turning into our drive way Cruickshank however the car following her did not see her indication and because he was travelling at a high speed could not avoid hitting her. Personal info I would like to let you know that I fully support the proposed speed limit change from 100km per hour to 80 km per hour. I also have some safety concerns I wish to bring to suppressed. your attention regarding this area of road. The bank on Carrington road on the town side of the Baker/Carrington Road intersection needs vegetation chopping right back and a large tree has branches hanging out over the road carriageway needs to be trimmed or removed, also the same area of bank that’s bare of vegetation needs to be cut back about 1/2 a metre with a digger to improve the very poor visibility at this intersection. Now my concerns about Mangorei Road are as follows, firstly the first corner above number 858 Mangorei Road from the pipeline fence on the inside of the corner has wild grown barberry hedge and holly that is growing outside of the landowners boundary, I think it would be great if the council could remove about 10 –15 metres of this hedge to improve visibility as there is zero at the moment. Secondly a big chunk of bank fell into the water drainage channel half way down the hill towards Westown golf course on Mangorei Road a couple of years ago, this causes large volumes of water to flow across the carriageway at heavy rainfall times which will eventually lead to aquaplaning and an accident. I hope these improvements which are not costly to rectify can be worked into the pre winter maintenance/improvements for our roading area.

110 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Lyn Jury Firstly I would like to thank you for the time you have put into the proposed change of speed limit on Carrington, Atkinson, Baker and Mangorei Roads to 80 km per hour. 5.1 This area of road has alot of corners and is also quite hilly and since moving here 3 1/2 years ago I have seen the URGENT NEED to have the speed limit changed and this is why I started the petition for Mangorei/Baker Roads. Many of the people who I have met and discussed this proposal with when taking the petition around have given me the impression that this has been a festering problem for many years. This section of road has many types of road users cars, trucks, tractors, pedestrians, cyclists, school buses, tourists, motor bikes, tankers, learner drivers, horsefloats etc etc. I have been told that this area of road has become much busier in recent years – especially due to - A. The increase of small lifestyle blocks and building consents. B. Tourists heading to the mountain, Pukeiti and beyond. C. People who use this road as a shortcut to head further afield – a reason for this is a way not to have to face the city traffic. Have the traffic flow rates been measured on these roads – if not maybe it could be done. One of the positive reasons to reduce the speed to 80 km per hour is that it is easier to slow down for corners and obstacles from 80 km per hour than it is from 100km per hour especially when approaching these difficult and sometimes blind corners. Since we have moved here 3 1/2 years ago this section of Mangorei Road has had a ute hit a pole, flip and go down a bank into a gully and at least 6 other vehicles have gone through fences and one of those also took out another power pole. There have also been other numerous near misses and cars that have skidded off the road. On a wider note and including Carrington, Atkinson, Baker and Mangorei Roads there have been fatalities on some of these roads and we don’t want any more. I have seen signs on other roads in the wider New Plymouth district ‘SHARE WITH CARE’ and “LESS SPEED - LESS HARM” maybe some of these signs could be put up to remind drivers and road users to slow down and get to where they are going safely. Lastly the council has nothing to lose by reducing the speed limit but we as residents and road users have everything to gain. ITS TIME TO SLOW THINGS DOWN Patricia We are at 709 Carrington Road and my husband and I face risks just to turn out of our drive onto Carrington Road or just to slow down to get into our driveway. Drivers behind Jaques me get impatient because they have to slow down too. As we see more houses been built in this area the roads are busier. More cars, more people running or walking, more cyclists. We need to consider them too. This proposal gets my 100% support Alan and We live at 646 Carrington Road and we are 100% behind having the speed limit lowered to 80km/hr. Linda Jury We have lived here for 12 years and have seen numerous car accidents with the majority of them being from driving too fast and losing control. We also run an accommodation business from home and several guests have made comments that it is difficult to turn into our property due to the speed of other vehicles. We have noticed a huge increase in traffic flow due to all the new houses being built up this way. We have also had a few close calls ourselves outside our house with cars travelling too fast. We sincerely hope that this speed change does go ahead – sooner rather than later. Marlene I agree with the changing of the speed limit to 80km/hr for the Carrington, Mangorei, Baker and Atkinson Roads. Hopefully this will slow the traffic down but we do have some Balsom drivers in their fast cars that go over 100km and end up in a fence or into a bank, which is good because it puts them off the road until they buy another car. I have seen at least seven accidents happen to my property over the last two years from these drivers. Some of the problems with Mangorei Road are the cyclist who are on a road that is not wide enough for cars coming each way when there are cyclist on the Mangorei Road as well. Corners that drivers think are easy to speed around which they are not. Mangorei Road has become very busy since the build up of the population on the road, a lot more people going to play Golf, more people aware of the Mangorei track up to the ranges from Mangorei Road has more people going up to the end of the road. John and As residents on the road we fully support the extension of a lower speed limit. However we strongly feel that the limit should extent further up Carrington Road to Hurworth Jenni Road. Newland Reasons for this are: 1.This is still a reasonably built up area with a further 16 entranceways. This will only increase in the future. 2. There are numerous houses near the end of the proposed end of the new limit that would be effected by the noise of vehicles accelerating whereas above Hurworth there are none. 3. The first corner above Baker has three entranceways that are close to the corner. This corner has seen several accidents over the years, including one last year when excessive speed resulted in a vehicle losing control and hitting a power pole.

111 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B1: Plan of proposed permanent speed limit changes: 5.1

NORTH

112 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B2: Copy of letter to potentially affected parties: 5.1

------

9 February 2018

The Householder Frankley Road / Tukapa Street / Patterson Road NEW PLYMOUTH

Dear Sir/Madam

RE: FRANKLEY, TUKAPA; PATTERSON – CHANGES TO PERMANENT SPEED LIMIT

To improve safety and as a result of new residential developments in the area, the New Plymouth District Council is proposing to change the existing 70km/h speed limit on Tukapa Street and Frankley Road to 50km/hr.

To provide your feedback or if you have any other enquiries please do not hesitate to contact me by e-mail: [email protected] or phone at 06 759 6060 by 23 February 2018.

Yours faithfully

David Brown TRAFFIC SAFETY ENGINEER

------

Please note: The diagram referred to in this letter is the same as that shown in Appendix B1.

113 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B3: Copy of written feedback received. Feedback Written resident feedback 5.1 received from Luia, Claudia We just received your proposal to change the speed limit on Frankley Road/ Tukapa Street. We absolutely love the idea. At the moment lots of people ignore the 70 km/h limit and Stefan and speed especially down Tukapa at easily 90 or 100 km/h. This includes some empty trucks which become rather noisy at that speed especially if using the engine brake towards Frankley School. The only problem we see is that there will need to be some means of enforcing the new limit e.g. permanent speed camera or round-about at the corner to Frankley Road. Scott Hale As per our telephone conversation I do support the reducing of the speed limit in this area to 50km/h. As you have said in your letter this area including Patterson road can certainly no longer be considered rural due to all the residential development that has already occurred and development that is currently happening and with what will occur in the future. As I said during our call reducing the speed limit is just the first step of many that need to happen in this area, areas of concern are: 1. Proper Footpaths need to be put in place especially the area from the intersection of Tukapa/Frankley road that goes down to Frankley school, what is currently there is a hazard and certainly doesn’t encourage my children and the many others in the neighbourhood to walk or bike to school. 2. Road markings on the road and additional signage needs to put in place to encourage drivers to adhere to the new speed limit. Just putting up 50km road signs will not be enough. 3. The police need to do an enforcement campaign immediately after the new speed limits are put in place and be more visible so drivers take note and think twice about their speed when in this area. The drivers coming down Frankley road from the 100km area onto the reduced speed zone are the same drivers day in day out and once they see this area speed limit is being enforced they will think twice about their speed. Another question I forget to ask when we talked is the new proposed district draft plan shows a new road to put in place between Frankley road to Patterson Road (comes out halfway down Patterson), do you know a timeline on when this will happen? Currently children going to Frankley school who live on Patterson and other residents have to walk up to the end of Patterson road to Frankley road then down to the school from there. The current intersection of Patterson and Frankley is extremely narrow with no footpath and is hazardous to say the least, an additional entrance/road onto Patterson as proposed in the new district plan would be greatly beneficial and safer that what we currently have. Personal info We support this 100%. It is long overdue. We have been considering contacting Council ourselves to request such a change, as there are now too many houses and pedestrians suppressed. along this road to retain a 70kph limit. Roger Thanks for your letter regarding the proposed speed limit changes on Frankley Rd/Tukapa Street. We support the reduction to 50km/h. As your letter mentions, residential Pepperell development has increased, so there are more driveways and people moving onto and off the road, increasing the risk when traffic is moving faster. Although we are currently in a 70km/h zone, in our experience we regularly see traffic that is still travelling at 100km/h as it passes our driveway, a couple of hundred of metres inside the 70km/h area. Obviously Frankley School is at the bottom of the hill, so having the 50km/h zone start earlier will hopefully assist in reducing traffic speeds at the school. Thanks for giving us the opportunity to share our views. Lindsay and Totally support the proposed 50km/h speed limit as set out in your letter of 9 February 2018. Sharon Thompson Annette We are in support of the speed limit changing from 70 km/hr to 50 km/hr on Tukapa Street and Frankley Road. We also recommend that the speed limit from the Tukapa Cameron Street and Frankley Road intersection, along Frankley Road to Parrs Road, and including Parrs Road be reduced from 100 kn/hr to 70 km/hr. This area is frequently used by and Robert cyclists, joggers, horse riders, and some pedestrians. This area also has had increased residential development. Please advise of the outcome of our recommendation. Millen Darrell Watt Thank you for providing us with an opportunity to give some feed back regarding the speed limit change. We live at 427 Frankley Rd and as far as we are concerned, we welcome the change with open arms. What we have had to endure for the 10 years since we have lived here is, vehicles entering the 70 km zone outside our house in most cases are still doing 100+ km's and for a reasonable period after. I have to ask the question, your plan shows a proposed speed change on Frankley Rd from 100 km's to 50 km's, I would have thought there would at minimum, have been a 70 km slow down zone. I would like to take this opportunity to bring to the councils attention the lack of footpath along Tukapa St from Frankley school to Frankley Rd. Having a metal footpath on a reasonably steep hill is unsafe and hard going for those using it. My wife has had 2 slips on this, one of them stripped the ligaments on her foot/ankle and she required 3 months of medical attention. We have witnessed other similar incidents as well. I hope the council will consider a much needed upgrade to this, also with consideration of the new subdivisions in the area. It is a well used piece of footpath leading to a school and is only getting busier.

114 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Gerald Thank you for your note dated 9th February 2018. Tonia and I are definitely in favour of this change and can't wait to see the speed limit signs changed to 50kms, which is 5.1 Wilson highlighted in yellow on your 'plan of proposed changes.' I would also like to strongly suggest, the sooner the better please. We are at 388 Frankley Road. Thank you for all your good work and please, if you need on going help regarding your proposed plans, I would welcome any requests for further support. Tony and We have received your notice of proposed changes to the permanent speed limit on Frankley road from 70 km/h to 50km/h. For the same reasons you use to make this change Elizabeth must therefore also apply to shifting the 70 km/h limit up to Parrs Road. We have lived at 506 Frankley road for over 40 years and in that time the road has been straighten, Smale made wider with deep ditches which has made our entrance more and more hazadous. When we bought our place the traffic speed was not anywhere near 100km/h as the road would not allow such a speed. Now we have to take great care as not only is the traffic speed up to 100km/h but due the large number of houses built further up the road in recent times the amount of traffic is much much greater. We have experienced near misses and road rage in spite of adopting careful use and increasing our sealed area to help exits. Approximately 11 months ago I had a conversation a member of your department about our situation and an entrance sign over the hill to the south was discussed and I requested a visit to discuss possible solutions, regrettably this did NOT take place I am still waiting!! Matthew We received a letter regarding the above change in speed limit from 70km to 50 km hour. We are at 360 Frankley Road and completely support the change in speed limit. As it Manderson is people speed going through the 70km area, and as your letter indicates, there are now more sections and new homes being built. We are also wanting to know if there is any chance that we can have some trees planted down the road to make it nicer. Before all the sections the road had tall trees along the road in places. Currently there is some planting a little further down from us. Something similar would be nice. What's the process for that? Clive Hi David, Maybe the 100 km/hr limit could start at 440 Frankley road to make it safer for Egmont Seeds Traffic. McGlashan Helen and As residents of Frankley Road we agree that the proposed lowering of the speed limit is a good idea. We would like consideration put to lowering it to 80 continuing up Frankley Tony Basile, as far as the junction with Hurworth Road. Frankley Road has a constant stream of cars, trucks, tractors, joggers, walkers and cyclists to name a few. There is no road siding and Janet for this traffic and speeds of a 100 or over are hazardous. It is also not the country road it once was with houses outnumbering farms. Walsh Greme and We would be delighted to see the speed reduced to 50 KPH as there is a lot of idiots who speed past our house towards Frankly Road. Gloria Shaw Personal info I live on 414 Frankley Road. I received your letter about the proposed change in permanent speed limit from 70km/h to 50km/hr on Frankley Road/Tukapa Street. I do fully suppressed support the proposed change to the lower speed limit of 50km/h. Roger We are at 397 Tukapa, up from Frankley school. Limit is 70k but traffic quite often exceeds that! It should be 50k. Also we have more pedestrians and cyclists now, and no real French footpath, just stones. Some young mothers push their buggies up the road rather than the rough track/footpath. My wife is in a wheel chair and I can't push her on the stones, but we did choose to live there. But we were zoned residential a few years ago with no sewerage mains or proper footpath (probably not your area!) We think it's a good idea to slow down the traffic. Mark and We live at 416 Frankley Rd and my wife and myself are supportive and agree with all the changes from 70 km per hour to 50 km per hour. We are happy for NPDC to proceed. Jackie One question sort of related. When is the footpath on Tukapa from Frankley Rd to Frankley Primary going to be completed? The ground work (gravel) has been down 4 years Kennedy and we were advised at the time it was going to be completed "next year". Let us know how this is progressing please. Michelle Ellis We live at 377 Frankley Road and we support the 50km limit in all areas Tony As the owner of 376 Tukapa Street I would support the change to a 50kph speed limit. We have two young children who attend the school and kindergarten so this would Bennett significantly improve their safety while we walk the footpath near our house and also reduce the risk of speeding cars after hours. Susan Fake As a resident on Frankley Road we welcome the proposed change of speed limit and we thank you for your letter dated 9 February 2018. Personal info Being one of the longest residents of the affected area we feel that our input would be of value. Speeding vehicles have been ever increasing over the years we have lived here. suppressed. The traffic ignore the 70km/r up the road and more often than not are still doing 100km/h at the bend and already in the 50km/h area. The vehicles coming from down town are already doing 70km/h before they are beside the Barclay intersection. Even more concerning is that most times 75 -85% of the vehicles are across the centre line by over half the width of their vehicle, so only the passenger side is on the correct lane/side of road. This occurs on the slight bend outside of our place just before the 50/70 sign. Not to mention the cell-phone usage as they are coming around the curve!! The ‘cutting of the corner’ occurs on the vehicles coming up from the city only. To assist with the speed reduction we agree with the 50km is required but because it is a straight, more control would be achieved by having speed humps in-situ, as when the 70km was installed we noticed no difference in driving habits. Would appreciate that serious consideration be given to one if not two speed humps be installed as well as 50 km limit, that would

115 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from discourage racers that do the Tukupa, Waimea, Frankley ‘racetrack Friday to Sunday. Thanks for the opportunity to have our say and hope you will give due consideration to 5.1 our suggestions. Michele I refer to the above proposal number. As an affected party I wish to object to the proposed reduction of the speed limit from 70km/hr to 50km/hr on Tukapa and Frankley Dryden Roads. I have reviewed the information you have provided such as it is and can see nothing to support such a reduction. Frankley Road is a wide flat road with a established footpath which is more than adequate to support the current speed limit. The increase in development on this road is minimal and it is my submission that the reduction in speed limit is not warranted and will be an imposition on those who live on the outskirts of New Plymouth and use this road. Tukapa Street is also a wide road with a footpath, the 70km/hr zone provides a necessary buffer between the 100km/hr part of the road servicing the rural areas of New Plymouth and 50km/hr zone at the bottom of the hill. There has been very limited development on this piece of road and the reduction is not necessary. Indeed the removal of the 70km/hr zone in which traffic reduces its speed before the school zone may negatively impact the safety of the school community. Each of these lengths of the road continue to be at the very least semi-rural in nature. The letter from NPDC did not provide any reasoning for the speed reduction aside from a reference to 'development', nor was any evidence presented to indicate the current speed is unsafe or has resulted in any safety concerns to date. One would also expect to see evidence of a tangible link between the reduction of a speed limit on a semi-rural road and an increase in safety. It is therefore my submission that the speed limit should remain at 70m/hr on both Tukapa Street and Frankley Road and I wish to register my objection to any such reduction. I note that the reduction in speed limit on Patterson Road is not highlighted in the letter instead only in the diagram on the reverse side. I do not object to the reduction in speed limit on Patterson Road, I would be surprised if residents and visitors to the road exceed 50km/hr at present and do not anticipate the official reduction will have any meaningful impact. Merryl Hi David. Thank you for your email last week concerning the proposed changes to the speed limit along Tukapa Street and Frankley Road and also the upgrade of the footpath. McAlister As a school, we would welcome both these changes. As you are aware we sit down in the dip where the speed limit changes from 70 km/h to 50km/h. Slower traffic before our Relieving school would mean a safer environment for our students whether they are travelling to and from school by foot, bike or car. Principal - Some of our students travel along Frankley Road again by car/bike/foot so again a slower speed limit along there would mean a safer environment for our students and Frankley community. Likewise, we would welcome further development of the footpath to encourage a safe walking environment for our community. Thank you School

116 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B4: Copy of comments from NZAA Taranaki District Council: 5.1

New Plymouth District Council Speed Limit Changes March 2018

Cluster A -Carrington Road/Mangorei Road/Baker Road/Atkinson Road Cluster B -Frankley Road/Tukapa Street/Patterson Road Thank you for the opportunity to be involved in the preliminary consultation on the suggested changes to speed limits in the Carrington Rd and Frankley Rd areas (Clusters A & B).

They come at a time when speed management is a very topical issue for our association and nationally the procedure for setting speed limits is in a state of flux due to the introduction of the new Speed Management Guidelines (SMG).

Current public views around speed are complex. Current research indicates that while people recognise that there are risks associated with speed on the roads, most are comfortable with this and are not supportive of speed limits which they feel are unnecessarily restrictive. Speed limits must make sense to the driver if a high level of compliance is to be achieved.

The most important outcome to the AA is that the SMG is properly applied and that emotionally driven decisions outside the scope of the SMG are avoided.

Those directly responsible for evaluations under the SMG will be familiar with the technical considerations and process. However the wider community will not. We feel it is important in the consultation and submission processes to manage community expectations by communicating the SMG parameters to those who may seek to be involved at an early stage. This will help the community contribute focussed information and feel that they have added value to the process. It is also important that Local Authority Councillors who make decisions are briefed on the importance of applying SMG parameters in their considerations.

Clusters A & B were discussed at AA Taranaki’s recent monthly meeting. Our preliminary comments are:

Cluster A – While a few sections of the roads would safely allow 100kph, 80kph is seen as appropriate overall especially given that parts of the road are access to and part of New Plymouth’s most popular recreation and training road cycling circuit.

Cluster B - The extent of the 50kph limit proposed is seen as inappropriate. Our view is that the Frankley Road hill transition between 50kph and 70kph should be moved an appropriate distance southward. In our opinion the balance of the road is of an alignment and design suited to retaining the existing 70kph limit. Property vehicular access will presumably have been designed to accommodate the existing speed environment under the Council development standards that apply. School safety at drop off and pick up times should be protected by 40kph school speed limits augmented by electronic signage.

The Taranaki AA Council appreciate the opportunity to give feedback regarding the above proposed changes and look forward to contributing positively to the ongoing process of speed management within the province. AA Taranaki would be happy to discuss these proposals further with you, if you so wish.

Regards

Ralph Broad - Councillor

NZAA Taranaki District Council

117 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B1: Plan of proposed permanent speed limit changes: 5.2

NORTH

118 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B2: Copy of letter to potentially affected parties: 5.2

------

9 February 2018

The Householder Frankley Road / Tukapa Street / Patterson Road NEW PLYMOUTH

Dear Sir/Madam

RE: FRANKLEY, TUKAPA; PATTERSON – CHANGES TO PERMANENT SPEED LIMIT

To provide your feedback or if you have any other enquiries please do not hesitate to contact me by e-mail: [email protected] or phone at 06 759 6060 by 23 February 2018.

Yours faithfully

David Brown TRAFFIC SAFETY ENGINEER

------

Please note: The diagram referred to in this letter is the same as that shown in Appendix B1.

119 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B3: Copy of written feedback received. Feedback Written resident feedback 5.2 received from Luia, Claudia We just received your proposal to change the speed limit on Frankley Road/ Tukapa Street. We absolutely love the idea. At the moment lots of people ignore the 70 km/h limit and Stefan and speed especially down Tukapa at easily 90 or 100 km/h. This includes some empty trucks which become rather noisy at that speed especially if using the engine brake towards Frankley School. The only problem we see is that there will need to be some means of enforcing the new limit e.g. permanent speed camera or round-about at the corner to Frankley Road. Scott Hale As per our telephone conversation I do support the reducing of the speed limit in this area to 50km/h. As you have said in your letter this area including Patterson road can certainly no longer be considered rural due to all the residential development that has already occurred and development that is currently happening and with what will occur in the future. As I said during our call reducing the speed limit is just the first step of many that need to happen in this area, areas of concern are: 1. Proper Footpaths need to be put in place especially the area from the intersection of Tukapa/Frankley road that goes down to Frankley school, what is currently there is a hazard and certainly doesn’t encourage my children and the many others in the neighbourhood to walk or bike to school. 2. Road markings on the road and additional signage needs to put in place to encourage drivers to adhere to the new speed limit. Just putting up 50km road signs will not be enough. 3. The police need to do an enforcement campaign immediately after the new speed limits are put in place and be more visible so drivers take note and think twice about their speed when in this area. The drivers coming down Frankley road from the 100km area onto the reduced speed zone are the same drivers day in day out and once they see this area speed limit is being enforced they will think twice about their speed. Another question I forget to ask when we talked is the new proposed district draft plan shows a new road to put in place between Frankley road to Patterson Road (comes out halfway down Patterson), do you know a timeline on when this will happen? Currently children going to Frankley school who live on Patterson and other residents have to walk up to the end of Patterson road to Frankley road then down to the school from there. The current intersection of Patterson and Frankley is extremely narrow with no footpath and is hazardous to say the least, an additional entrance/road onto Patterson as proposed in the new district plan would be greatly beneficial and safer that what we currently have. Personal info We support this 100%. It is long overdue. We have been considering contacting Council ourselves to request such a change, as there are now too many houses and pedestrians suppressed. along this road to retain a 70kph limit. Roger Thanks for your letter regarding the proposed speed limit changes on Frankley Rd/Tukapa Street. We support the reduction to 50km/h. As your letter mentions, residential Pepperell development has increased, so there are more driveways and people moving onto and off the road, increasing the risk when traffic is moving faster. Although we are currently in a 70km/h zone, in our experience we regularly see traffic that is still travelling at 100km/h as it passes our driveway, a couple of hundred of metres inside the 70km/h area. Obviously Frankley School is at the bottom of the hill, so having the 50km/h zone start earlier will hopefully assist in reducing traffic speeds at the school. Thanks for giving us the opportunity to share our views. Lindsay and Totally support the proposed 50km/h speed limit as set out in your letter of 9 February 2018. Sharon Thompson Annette We are in support of the speed limit changing from 70 km/hr to 50 km/hr on Tukapa Street and Frankley Road. We also recommend that the speed limit from the Tukapa Cameron Street and Frankley Road intersection, along Frankley Road to Parrs Road, and including Parrs Road be reduced from 100 kn/hr to 70 km/hr. This area is frequently used by and Robert cyclists, joggers, horse riders, and some pedestrians. This area also has had increased residential development. Please advise of the outcome of our recommendation. Millen Darrell Watt Thank you for providing us with an opportunity to give some feed back regarding the speed limit change. We live at 427 Frankley Rd and as far as we are concerned, we welcome the change with open arms. What we have had to endure for the 10 years since we have lived here is, vehicles entering the 70 km zone outside our house in most cases are still doing 100+ km's and for a reasonable period after. I have to ask the question, your plan shows a proposed speed change on Frankley Rd from 100 km's to 50 km's, I would have thought there would at minimum, have been a 70 km slow down zone. I would like to take this opportunity to bring to the councils attention the lack of footpath along Tukapa St from Frankley school to Frankley Rd. Having a metal footpath on a reasonably steep hill is unsafe and hard going for those using it. My wife has had 2 slips on this, one of them stripped the ligaments on her foot/ankle and she required 3 months of medical attention. We have witnessed other similar incidents as well. I hope the council will consider a much needed upgrade to this, also with consideration of the new subdivisions in the area. It is a well used piece of footpath leading to a school and is only getting busier.

120 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from Gerald Thank you for your note dated 9th February 2018. Tonia and I are definitely in favour of this change and can't wait to see the speed limit signs changed to 50kms, which is 5.2 Wilson highlighted in yellow on your 'plan of proposed changes.' I would also like to strongly suggest, the sooner the better please. We are at 388 Frankley Road. Thank you for all your good work and please, if you need on going help regarding your proposed plans, I would welcome any requests for further support. Tony and We have received your notice of proposed changes to the permanent speed limit on Frankley road from 70 km/h to 50km/h. For the same reasons you use to make this change Elizabeth must therefore also apply to shifting the 70 km/h limit up to Parrs Road. We have lived at 506 Frankley road for over 40 years and in that time the road has been straighten, Smale made wider with deep ditches which has made our entrance more and more hazadous. When we bought our place the traffic speed was not anywhere near 100km/h as the road would not allow such a speed. Now we have to take great care as not only is the traffic speed up to 100km/h but due the large number of houses built further up the road in recent times the amount of traffic is much much greater. We have experienced near misses and road rage in spite of adopting careful use and increasing our sealed area to help exits. Approximately 11 months ago I had a conversation a member of your department about our situation and an entrance sign over the hill to the south was discussed and I requested a visit to discuss possible solutions, regrettably this did NOT take place I am still waiting!! Matthew We received a letter regarding the above change in speed limit from 70km to 50 km hour. We are at 360 Frankley Road and completely support the change in speed limit. As it Manderson is people speed going through the 70km area, and as your letter indicates, there are now more sections and new homes being built. We are also wanting to know if there is any chance that we can have some trees planted down the road to make it nicer. Before all the sections the road had tall trees along the road in places. Currently there is some planting a little further down from us. Something similar would be nice. What's the process for that? Clive Hi David, Maybe the 100 km/hr limit could start at 440 Frankley road to make it safer for Egmont Seeds Traffic. McGlashan Helen and As residents of Frankley Road we agree that the proposed lowering of the speed limit is a good idea. We would like consideration put to lowering it to 80 continuing up Frankley Tony Basile, as far as the junction with Hurworth Road. Frankley Road has a constant stream of cars, trucks, tractors, joggers, walkers and cyclists to name a few. There is no road siding and Janet for this traffic and speeds of a 100 or over are hazardous. It is also not the country road it once was with houses outnumbering farms. Walsh Greme and We would be delighted to see the speed reduced to 50 KPH as there is a lot of idiots who speed past our house towards Frankly Road. Gloria Shaw Personal info I live on 414 Frankley Road. I received your letter about the proposed change in permanent speed limit from 70km/h to 50km/hr on Frankley Road/Tukapa Street. I do fully suppressed support the proposed change to the lower speed limit of 50km/h. Roger We are at 397 Tukapa, up from Frankley school. Limit is 70k but traffic quite often exceeds that! It should be 50k. Also we have more pedestrians and cyclists now, and no real French footpath, just stones. Some young mothers push their buggies up the road rather than the rough track/footpath. My wife is in a wheel chair and I can't push her on the stones, but we did choose to live there. But we were zoned residential a few years ago with no sewerage mains or proper footpath (probably not your area!) We think it's a good idea to slow down the traffic. Mark and We live at 416 Frankley Rd and my wife and myself are supportive and agree with all the changes from 70 km per hour to 50 km per hour. We are happy for NPDC to proceed. Jackie One question sort of related. When is the footpath on Tukapa from Frankley Rd to Frankley Primary going to be completed? The ground work (gravel) has been down 4 years Kennedy and we were advised at the time it was going to be completed "next year". Let us know how this is progressing please. Michelle Ellis We live at 377 Frankley Road and we support the 50km limit in all areas Tony As the owner of 376 Tukapa Street I would support the change to a 50kph speed limit. We have two young children who attend the school and kindergarten so this would Bennett significantly improve their safety while we walk the footpath near our house and also reduce the risk of speeding cars after hours. Susan Fake As a resident on Frankley Road we welcome the proposed change of speed limit and we thank you for your letter dated 9 February 2018. Personal info Being one of the longest residents of the affected area we feel that our input would be of value. Speeding vehicles have been ever increasing over the years we have lived here. suppressed. The traffic ignore the 70km/r up the road and more often than not are still doing 100km/h at the bend and already in the 50km/h area. The vehicles coming from down town are already doing 70km/h before they are beside the Barclay intersection. Even more concerning is that most times 75 -85% of the vehicles are across the centre line by over half the width of their vehicle, so only the passenger side is on the correct lane/side of road. This occurs on the slight bend outside of our place just before the 50/70 sign. Not to mention the cell-phone usage as they are coming around the curve!! The ‘cutting of the corner’ occurs on the vehicles coming up from the city only. To assist with the speed reduction we agree with the 50km is required but because it is a straight, more control would be achieved by having speed humps in-situ, as when the 70km was installed we noticed no difference in driving habits. Would appreciate that serious consideration be given to one if not two speed humps be installed as well as 50 km limit, that would

121 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

Feedback Written resident feedback received from discourage racers that do the Tukupa, Waimea, Frankley ‘racetrack Friday to Sunday. Thanks for the opportunity to have our say and hope you will give due consideration to 5.2 our suggestions. Michele I refer to the above proposal number. As an affected party I wish to object to the proposed reduction of the speed limit from 70km/hr to 50km/hr on Tukapa and Frankley Dryden Roads. I have reviewed the information you have provided such as it is and can see nothing to support such a reduction. Frankley Road is a wide flat road with a established footpath which is more than adequate to support the current speed limit. The increase in development on this road is minimal and it is my submission that the reduction in speed limit is not warranted and will be an imposition on those who live on the outskirts of New Plymouth and use this road. Tukapa Street is also a wide road with a footpath, the 70km/hr zone provides a necessary buffer between the 100km/hr part of the road servicing the rural areas of New Plymouth and 50km/hr zone at the bottom of the hill. There has been very limited development on this piece of road and the reduction is not necessary. Indeed the removal of the 70km/hr zone in which traffic reduces its speed before the school zone may negatively impact the safety of the school community. Each of these lengths of the road continue to be at the very least semi-rural in nature. The letter from NPDC did not provide any reasoning for the speed reduction aside from a reference to 'development', nor was any evidence presented to indicate the current speed is unsafe or has resulted in any safety concerns to date. One would also expect to see evidence of a tangible link between the reduction of a speed limit on a semi-rural road and an increase in safety. It is therefore my submission that the speed limit should remain at 70m/hr on both Tukapa Street and Frankley Road and I wish to register my objection to any such reduction. I note that the reduction in speed limit on Patterson Road is not highlighted in the letter instead only in the diagram on the reverse side. I do not object to the reduction in speed limit on Patterson Road, I would be surprised if residents and visitors to the road exceed 50km/hr at present and do not anticipate the official reduction will have any meaningful impact. Merryl Hi David. Thank you for your email last week concerning the proposed changes to the speed limit along Tukapa Street and Frankley Road and also the upgrade of the footpath. McAlister As a school, we would welcome both these changes. As you are aware we sit down in the dip where the speed limit changes from 70 km/h to 50km/h. Slower traffic before our Relieving school would mean a safer environment for our students whether they are travelling to and from school by foot, bike or car. Principal - Some of our students travel along Frankley Road again by car/bike/foot so again a slower speed limit along there would mean a safer environment for our students and Frankley community. Likewise, we would welcome further development of the footpath to encourage a safe walking environment for our community. Thank you School

122 Performance Committee agenda (3 May 2018) - Decision - Amendment to Speed Limits

Item for Decision

APPENDIX B4: Copy of comments from NZAA Taranaki District Council: 5.2

New Plymouth District Council Speed Limit Changes March 2018

The most important outcome to the AA is that the SMG is properly applied and that emotionally driven decisions outside the scope of the SMG are avoided.

Clusters A & B were discussed at AA Taranaki’s recent monthly meeting. Our preliminary comments are:

Regards

Ralph Broad - Councillor

NZAA Taranaki District Council

123 Performance Committee agenda (3 May 2018) - Decision - Delegated Authority Contracts

Item for Decision

DELEGATED AUTHORITY CONTRACTS

PURPOSE 6 To inform Council of contracts with a value in excess of $250,000 awarded in the period 1 October to 31 December 2017.

RECOMMENDATION That, having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

DISCUSSION These tenders have been evaluated and let in accordance with Council Policy.

FINANCIAL AND RESOURCING IMPLICATIONS The following contracts were entered into under authority delegated to the Chief Operating Officer and the Chief Executive. These contracts have a GST exclusive value in excess of $250,000 and have not been separately reported.

124 Performance Committee agenda (3 May 2018) - Decision - Delegated Authority Contracts

Item for Decision

Table 1 – Summary of Contracts Awarded

Successful Procurement Tender Tender Evaluation No. of Range of Contract LTP Budget Tenderer Estimate Price Method Method Tenders Prices 6 17/PP02 Professional $600,000 to Weighted $631,738 to Services for new water CH2M Beca Ltd $11,700,000 $669,0971 Open 2 $1,000,000 Attributes $669,097 reservoirs 17/RM10 Pavement Coastline Price Quality $885,921 to $600,0002 $860,000 $885,921 Open 2 Marking Markers Ltd Method $1,188,267 $2,713,424 17/SW01 Central Landfill Whitaker Civil $2,600,000 to Price Quality $16,100,000 $2,905,133 Open 5 to Phase 1 Engineering $3,600,000 Method $3,156,273 17/RM18 Hurford and Mangorei roads (Seal Warner Price Quality $653,752 to $800,000 $620,000 $653,752 Open 3 Widening and Minor Safety Construction Ltd Method $758,467 Improvements)

Notes:

1) Tender evaluation was based on the weighted attributes method and contract was awarded to tenderer with the highest scoring attributes 2) Although individual contract above budget amount, the overall expenditure is managed within the overall Transportation budgets

125 Performance Committee agenda (3 May 2018) - Decision - Delegated Authority Contracts

Item for Decision

IMPLICATIONS ASSESSMENT This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically: 6  Council staff have delegated authority for any decisions made;  Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;  Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;  Any decisions made are consistent with the Council's plans and policies; and  No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

Report Details Prepared By: Andrew Barron (Manager Infrastructure Projects) Team: Infrastructure Projects Approved By: David Langford (Infrastructure Manager) Ward/Community: District Wide Date: 21 March 2018 File Reference: ECM 7674786

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126 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Item for Decision

PERFORMANCE REPORT FOR PERIOD 1 JULY TO 31 MARCH 2018

PURPOSE The purpose of this report is to advise of the Council’s performance for the period 1 July to 31 March 2018 of the 2017/18 financial year. 7

RECOMMENDATION That having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT This report is provided for information purposes only, and has been assessed as being of some importance.

DISCUSSION The Council’s performance and progress towards meeting its objectives and key performance measures as set out in its Long Term Plan 2015-2025 are reported on a quarterly basis. The quarterly report also covers information on financial performance.

This performance report covers the financials and performance against objectives for the period 1 July to 31 March 2018 of the 2017/18 financial year. The highlights and issues are set out in the performance report.

Financial and Resourcing Implications There are no financial and resourcing implications associated with performance reporting. The performance report includes financial and resourcing implications against key performance indicators where relevant.

FINANCIAL AND RESOURCING IMPLICATIONS There are no financial and resourcing implications associated with performance reporting. The performance report includes financial and resourcing implications against key performance indicators where relevant.

127 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Item for Decision

 Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan; 7  Any decisions made are consistent with the Council's plans and policies; and  No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

APPENDICES Performance report for the period 1 July to 31 March 2018 (ECM 7691731).

Report Details Prepared By: Mitchell Dyer (Policy Development Lead) Team: Policy Development Approved By: Craig Stevenson (Chief Executive), Liam Hodgetts (Group Manager Strategy), Kelvin Wright (Chief Operating Officer) Ward/Community: District Wide Date: 16 April 2018 File Reference: ECM 7691730

------End of Report ------

128 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

7.1

Performance Report for the period ended 30 September 2017 1

129 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Contents

7.1

Long-Term Plan 2015-2025 Performance Information ------3

Financial Performance ------23

ECM 7691731

130 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Long-Term Plan 2015-2025 Performance Measures

7.1

Contents

Executive Summary ...... 4

Parks and Open Spaces ...... 5

Transportation ...... 6

Stormwater Drainage ...... 7

Flood Protection and Control Works ...... 8

Solid Waste and Kerbside Collection ...... 9 Water Supply ...... 10

Wastewater Treatment ...... 12 Emergency Management and Business Continuance ... 14

Community Partnerships ...... 15 Govett-Brewster Art Gallery ...... 16

Puke Ariki and District Libraries ...... 17 Venues and Events ...... 18

Regulatory Services ...... 19 Economic Development ...... 20

Civic and Democracy Services ...... 21 Management of Investments and Funding ...... 22

For ease of reading, the performance measures not able to be measured in this quarter have been removed, e.g. NRB survey. These measures will be added in the quarter they are measured in.

The following section lists the levels of service and performance information from the Long-Term Plan 2015-2025 for the NPDC’s 16 activities. To describe achievement against each objective and indicator, we’ve used the ‘traffic light’ system to indicate whether:

 We’ve achieved or are on track.

 We’re within 2.5 per cent of target or expected to be on target at year- end.

 We’ve not met the target (variance greater than 2.5 per cent).

Performance Report for the period ended 31 March 2018 3

131 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Executive Summary

All targets are either on track or expected to be met by year-end with the following exceptions:

a) Stormwater Drainage 7.1 The target is for no householders to suffer any flooding each year. This target was missed due to three flooding events.

b) Water Supply The target is two complaints received about water pressure or flow (per 1,000 connected customers). The current number of complaints received (per 1,000 connected customers) is 2.07.

c) Water Supply The target is two complaints received about water continuity of supply (per 1,000 connected customers). The current number of complaints received (per 1,000 connected customers) is 4.01.

d) Regulatory Services The parking target of 85 per cent of CBD parking was set before any data from the current system was available. Parking revenue is ahead of budget as this was set independently from this target. Current occupation at 43 per cent is in line with previous data.

e) Regulatory Services NPDC aims to get all building consents processed within the statutory timeframe. The current figure is 99.6 per cent including two incidents of operator error and three which missed the 20-day target.

f) Regulatory Services NPDC aims to get all non-notified land use and subdivision consents processed within the statutory timeframe. The current figure is 98.3 per cent due to one land use application exceeding its timeframe.

4 Performance Report for the period ended 31 March 2018

132 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Parks and Open Spaces

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Maintain the quality of Percentage of visitors 90%  94% (extremely and very the district’s parks, satisfied with the quality satisfied). reserves and open of the Brooklands Zoo. spaces. Maintain access to open Percentage of 71%  71%. spaces and the natural households living within environment, including 500 metres of a rivers, lakes, the neighbourhood open mountain and the coast. space. Provide opportunity for Number of volunteer 10,000 hours  9684 volunteer hours year community participation hours per year. to date. in caring for, and engagement with, the district environment, e.g. Friends of Pukekura Park, Arbor Day etc. Major projects are Major projects are Annual work  On track. completed on time and completed on time. programme within budget. achieved

Major projects are Annual work  On track. completed within budget. programme achieved within budget

Performance Report for the period ended 31 March 2018 5

133 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Transportation

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 Provide a safe local The change from the No reduction  Seven recorded crashes 7.1 roading network for road previous financial year in year to date; 23 recorded users. the number of fatalities for 2016/17. Crash and serious injury records up to three crashes on the local road months behind (national network, expressed as a database). number. Provide an appropriately The percentage of the 6%  85% of this year’s maintained sealed local sealed local road network resurfacing completed roading network. that is resurfaced. year to date. (Target based on reseal cycle of 16.5 years.) Respond to requests The percentage of 95%  96%, based on 3,650 within an acceptable customer service service requests. timeframe. requests relating to roads and footpaths to which the Council responds within the specified timeframe1. Major projects are Major projects are Annual work  On target. Improvements completed on time and completed on time. programme are under way on within budget. achieved Mangorei, Hurford, Inland North and Manutahi roads. Junction Road fund improvements are on target. Major projects are Annual work  On target. completed within budget. programme achieved within budget

1 Service request timeframes: one day for an electrical fault with traffic signals, flooding, diesel spills, chemical spills or a slip to be cleared; three days for street lighting faults and potholes; five days for traffic counts, bus shelter repairs, road marking enquiries, culvert maintenance, rubbish bins, reinstatement of footpaths and debris in the roadside channel; 10 days for road surface faults, kerb and channel repairs, new kerb and channel, missing road signs and vegetation clearing. Target based on previous performance measure.

6 Performance Report for the period ended 31 March 2018

134 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Stormwater Drainage

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Protection of habitable Number of flooding 0  Three flooding event - floor levels from one per events that occur each July 2017, August 2017 cent storm event. year which result in and March 2018. flooding of a habitable floor. For each flooding event 1  0.13 habitable floors report the number of flooded. habitable floors flooded per 1,000 connected customers. Contractor compliance Attendance for flooding Median  0.48 hours year to date. with target response event call-outs from the response time times for maintenance time that the local of one hour and customer requests. authority receives notification to the time that service personnel reach the site. We will keep customers The total number of 7  4.33 complaints received. satisfied with our complaints received stormwater service. about the Council’s stormwater service (per 1,000 connected customers). We will manage our Number of abatement 0  stormwater discharges to notices. comply with all resource Number of infringement 0 consents for discharge  notices. from our stormwater system. Number of enforcement 0  orders. Number of convictions 0  Major projects are Major projects are Achieved  Waitara Stormwater completed on time and completed on time. Catchment Management within budget. Plan underway. Major projects are Achieved  On track. completed within budget.

Performance Report for the period ended 31 March 2018 7

135 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Flood Protection and Control Works

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Flood protection works Flood protection works Achieved  are maintained. are maintained in accordance with the Asset Management Plan and annual works programme. Flood protection works Any damage to flood Repairs  are repaired. protection works is completed repaired following within one flooding to standards year defined in the Asset Management Plan. Flood protection works Flood protection works Achieved  are renewed. are renewed in accordance with the Asset Management Plan and annual works programme. We will keep all major Major projects are Achieved N/A No major projects this projects on time. completed on time. year. Major projects are Achieved N/A No major projects this completed within budget. year.

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Solid Waste and Kerbside Collection

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 We will provide a reliable Number of customer 9  3.04 customer solid waste collection and notifications of missed notifications of missed management service. collections per 1,000 of collections per 1,000 serviced properties. serviced properties year to date. Compliance with transfer 95%  On 5 October, Inglewood stations advertised transfer station opened 15 opening hours. minutes late due to operator error. We will keep customers Total number of 3  0.86 complaints per 1,000 satisfied with our solid complaints received customers year to date. waste collection and about the Council’s solid management service. waste service (per 1,000 customers). We will encourage Percentage of total 25%  47% of household waste minimisation of waste household waste which is is recycled. disposal in our district. recycled by weight (against 2010/11 baseline). Year on year percentage 1%  4% increase in waste reduction in landfill waste disposed per household generated per year to date. household. We will manage our solid Number of abatement 0  waste service to comply notices received. with all resource Number of infringement 0  consents. notices received. Number of enforcement 0  orders received. Number of convictions 0  received. Major projects are Major projects are Achieved  Working to programme. completed on time and completed on time. within budget. Major projects are Achieved  Working to programme. completed within budget.

Performance Report for the period ended 31 March 2018 9

137 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Water Supply

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 We will provide water Compliance with Part 4 Full  On track. Compliant for which complies with the of the Drinking-water compliance quarters 1 and 2 (year NZ Drinking Water Standards (bacteria ended 31 December). Standards. compliance criteria). Quarter 3 to be assessed May 2018. Compliance with Part 5 Full  On track. Compliant for of the Drinking-water compliance quarters 1 and 2 (year Standards (protozoal ended 31 December). compliance criteria). Quarter 3 to be assessed May 2018. Contractor compliance Attendance for urgent Median  0.37 hours median with target response call-outs from the time response time response time. times for maintenance that the Council receives of one hour or and customer requests. notification to the time less that service personnel reach the site. Resolution of urgent call- Median  1.65 hours median outs from the time that restored time restored time. the Council receives of four hours notification to the time or less for that service personnel mains confirm resolution of the < 250 dia fault or interruption. Resolution of urgent call- Median  7.99 hours median outs from the time that restored time restored time. the Council receives of eight hours notification to the time or less for that service personnel mains confirm resolution of the > 250 dia fault or interruption. Attendance for non- Median  5.08 hours median urgent call-outs from the response time response time. time that the Council of 24 hours or receives notification to less the time that service personnel reach the site. Resolution of non-urgent Median  26.36 hours median call-outs from the time restored time restored time. that the Council receives of 48 hours or notification to the time less that service personnel confirm resolution of the fault or interruption.

10 Performance Report for the period ended 31 March 2018

138 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Water Supply

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 We will keep customers The total number of 2  1.11 complaints per 1,000 satisfied with our water complaints received connected customers. service. about water clarity (per 1,000 connected customers). The total number of 1  0.54 complaints per 1,000 complaints received connected customers. about water taste (per 1,000 connected customers). The total number of 1  0.07 complaints per 1,000 complaints received connected customers. about water odour (per 1,000 connected customers). The total number of 2  2.07 complaints per 1,000 complaints received connected customers. about water pressure or flow (per 1,000 connected customers). The total number of 2  4.01 complaints per 1,000 complaints received connected customers. about water continuity of supply (per 1,000 connected customers). The total number of 1  0.21 complaints per 1,000 complaints received connected customers. about the Council’s response to any of the above issues (per 1,000 connected customers). We manage demand to Number of abatement 0  minimise the impact on notices received. the environment of the Number of infringement 0  water supply. notices received. Number of enforcement 0  notices received. Number of convictions 0  received. Major projects are Major projects are Achieved  Water Master Plan completed on time and completed on time. progressing. within budget. Major projects are Achieved  On track. completed within budget.

Performance Report for the period ended 31 March 2018 11

139 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Wastewater Treatment

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 We will limit the number of Number of dry weather 1  0.00 sewerage overflows dry weather overflows from sewerage overflows per per 1,000 connections. our network. 1,000 connections. Contractor compliance Attendance for sewerage Median  0.56 hours median with target response times overflow call-outs from the response time response time. for maintenance and time that the Council of one hour customer requests. receives notification to the time that service personnel reach the site. Resolution of sewerage Median  1.82 hours median overflow call-outs from the resolution time resolution time. time that the Council of four hours for receives notification to the sewers time that service personnel < 250 dia confirm resolution of the fault or interruption. Resolution of sewerage Median  N/A overflow call-outs from the resolution time time that the Council of eight hours receives notification to the for sewers time that service personnel >/= 250 dia confirm resolution of the fault or interruption. We will keep customers Total number of 1  0.70 complaints per 1,000 satisfied with our complaints received about connected customers. wastewater service. sewerage odour (per 1,000 connected customers). Total number of 1  0.04 complaints per 1,000 complaints received about connected customers. sewerage system faults (per 1,000 connected customers). Total number of 10  4.60 complaints per 1,000 complaints received about connected customers. sewerage system blockages (per 1,000 connected customers) Total number of 1  0.04 complaints per 1,000 complaints received about connected customers. the Council’s response to any of the above issues (per 1,000 connected customers).

12 Performance Report for the period ended 31 March 2018

140 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Wastewater Treatment

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 We will manage our Number of abatement 0  wastewater discharges to notices. comply with all resource Number of infringement 0  consents for discharge notices. from our sewerage system. Number of enforcement 0  orders. Number of convictions. 0  Major projects are Major projects are Achieved  Carry-forward expected on completed on time and completed on time. thermal dryer replacement within budget. but overall project on target. Likely delays to Wai Taatari Phase 2. Major projects are Achieved  Overspend expected on completed within budget. Wai Taatari Phase 2 and hypo storage tanks.

Performance Report for the period ended 31 March 2018 13

141 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Emergency Management and Business Continuance

Level of Service Performance Measure Target Symbol Current Status Performance 7.1 2017/18 Planning for and Emergency processes Processes and  Work is ongoing to ensure management of and plans are up to date. plans reviewed Emergency Response emergency events. and updated and Business Continuity Plans and processes are up to date. Those plans and processes were tested for real by the water supply disruption event in February 2018. A ‘lessons learned’ process is underway, and the improvement opportunities identified will be addressed during the rest of 2017/18 and in 2018/19. Control and extinguish All reports of uncontrolled 100% N/A As at 1 July 2017 the fires in rural areas or unauthorised rural Taranaki Rural Fire Service (except buildings which fires responded to within was absorbed by Fire and are the responsibility of set timeframes and Emergency NZ, which is a the New Zealand Fire extinguished by the new entity that combines Service). Council contractors urban and rural fire where necessary. services into one organisation. Trained fire crews are Full N/A As at 1 July 2017 the available in all required compliance Taranaki Rural Fire Service areas and crew and was absorbed by Fire and equipment meet Emergency NZ, which is a standards of audit. new entity that combines urban and rural fire services into one organisation. Major projects are Major projects are Annual work  Work is under way to completed on time and completed on time. programme implement changes in the within budget. achieved way the Council responds to Civil Defence emergencies. This is separate but closely related to the work noted above about the Council’s own business continuity arrangements. Major projects are Annual work  Performance against completed within budget. programme budget is being achieved monitored. within budget

14 Performance Report for the period ended 31 March 2018

142 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Community Partnerships

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Provide a ‘start-up’ fund Number of initiatives 3  Two – provision of that rewards creativity receiving ‘start-up’ Chamber of Commerce and collaboration in new financial support. Accessibility Award and community initiatives. the Fit for Funding expo.

Performance Report for the period ended 31 March 2018 15

143 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Govett-Brewster Art Gallery

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Offer engaging Number of exhibition 3  Third suite of exhibitions exhibitions annually suites per year. currently being installed. comprising solo and group exhibitions from Taranaki, New Zealand and the world. Offer quality access to Number of Len Lye 2  Second suite of the art and ideas of Len exhibitions annually. exhibitions currently being Lye. installed. Audiences have positive Total number of visitors 103,000  80,759 visitors year to experiences. (physically) annually. date. Education programming Percentage of teachers 95%  96%. is nationally recognised satisfied with school as unique and distinctive. experience. Major projects are Major projects are Annual work N/A No major projects completed on time and completed on time. programme scheduled. within budget. achieved Major projects are Annual work N/A No major projects completed within budget. programme scheduled. achieved within budget

16 Performance Report for the period ended 31 March 2018

144 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Puke Ariki and District Libraries

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Provide an accessible Number of customer 55,000  56,943 customer visits to and informative point of visits to the i-SITE Visitor the i-SITE. contact and booking Information Centre service for visitors to annually. New Plymouth District. To deliver a range of Number of programmed 900  1,241 programmes and programmes which learning opportunities programmes 26,755 attendees. explore creativity, literacy and number of 20,000 and our heritage in ways attendees. attendees that stimulate learning, innovation and Number of school 14,000  17,092 school students. prosperity. students attending Puke Ariki programmes. Provide 24/7 access to Number of heritage items 10,000  6,385 heritage items with the Heritage Collection with records improved. records improved. through the Browser.

Performance Report for the period ended 31 March 2018 17

145 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Venues and Events

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Provide high-quality Pool patronage per year. 350,000  326,658 attendees year to community pools which date. encourage the community to participate in aquatic activities. Provide a network of Number of attendees 275,000  301,016 attendees and high-quality venues that and events/bookings attendees 929 events/bookings year create more opportunities across all venues is to date. 475 events/ for the community to maintained or increases bookings attend arts, culture and where possible. sport and recreation activities. Major projects are Major projects are Annual work N/A No major projects in completed on time and completed on time. programme 2017/18. within budget. achieved Major projects are Annual work N/A No major projects in completed within budget. programme 2017/18. achieved within budget

18 Performance Report for the period ended 31 March 2018

146 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Regulatory Services

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Ensure that all animal Percentage of known 95%  94%. control processes dogs registered. contribute to a safe and healthy community. Maximise use of on- Average rate of 85%  The parking target of 85 street car parking space. occupation of CBD paid per cent of CBD parking parking spaces. was set before any data from the current system was available. Parking revenue is ahead of budget as this was set independently from this target. Current occupation at 43 per cent is in line with previous data. The health and safety of Percentage of food 95%  94%. the public is protected by premises inspected with ensuring food premises no remedial steps meet required standards. required. Ensure alcohol licensed Percentage of alcohol 95%  100% premises comply with licences that comply with statutory and licence statutory and licence provisions. provisions (as a result of inspections, complaints and controlled purchase operations). Consents are processed Percentage of building 100%  99.6%. Five consents within statutory consent applications from 1,128 applications timeframes. processed within went over time, two from statutory timeframes. operator error and three from 20-day target non- achievement. Percentage of all non- 100%  98.3%. One land use notified land use and exceeded timeframes in subdivision consents are the third quarter. processed within statutory timeframe.

Performance Report for the period ended 31 March 2018 19

147 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Economic Development

Level of Service Performance Measure Target Symbol Current Status Performance 7.1 2017/18

Promote New Plymouth Attract or retain major 3 major events  Seven major events District and the Taranaki events. contracted year to date. region as a vibrant and desirable place to live, work and visit.

Facilitate, promote, Amount of investment $500,000  $2,714,175 research and encourage and support into regional businesses development investment sustainable business per year, subject to year to date. growth, investment and central government employment policy. opportunities in Taranaki. Level of investment in $140,000  $308,848 capability management capability development vouchers building per year for issued year to date. Taranaki’s Small and Medium Sized Enterprises (businesses).

20 Performance Report for the period ended 31 March 2018

148 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Civic and Democracy Services

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Properly manage local Elections and polls will *  Two unanticipated by- elections. comply with the elections completed. provisions of the Local Electoral Act 2001 with no successful petitions for inquiry into the conduct of elections. Compliance with Long-Term Plan, Annual Full  On track. statutory deadlines. Plan and Annual Report compliance will all be adopted within timeframes set in the Local Government Act 2002. Meeting agendas will be Full  On track. available as specified by compliance legislation.

* No triennial elections in this year.

Performance Report for the period ended 31 March 2018 21

149 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Management of Investments and Funding

Level of Service Performance Measure Target Symbol Current Status Performance 2017/18 7.1 Manage the Perpetual A release to the Council $7.6m  $6.1m year to date and on Investment Fund (PIF) to before costs of Taranaki target. provide sustainable Investment Management revenue flows to the Limited as release rule Council. covers both from the PIF in accordance with the release rule. Manage the Council’s Debt levels and costs All measures  All measures met. borrowing programme in within limits set by policy. met compliance with the Net debt not to exceed All measures  All measures met. Liability Management 135 per cent of total met Policy. revenues including rates. Pre-tax funds from All measures  All measures met. operations to exceed net met interest expense by at least 2.5 times.

22 Performance Report for the period ended 31 March 2018

150 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Financial Performance

7.1

The Council had strong performance for the nine months ending 31 March 2018, recording a surplus of Contents $11.4m against a budgeted surplus of $0.4m. Key variances against budget for the nine months Statement of Comprehensive Revenue ending 31 March 2018 are as follows. and Expense $m Statement of Financial Position Budgeted surplus 0.4 Revenue and Expenditure Analysis

Significant Activities Operating Net Cost Key variances to actual surplus are: Capital Work Summary Unrealised gain on investments 10.3 Carry-forwards Summary Net interest savings 2.4 Treasury Report Depreciation and amortisation (1.2) Rating Report Other (0.1) Significant Activity and Expenditure graphs Actual surplus before tax 11.4

As at 31 March 2018 the forecast general rate cash surplus is currently estimated to be $3.4m.

Performance Report for the period ended 31 March 2018 23

151 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Statement of Comprehensive Revenue and Expense For the nine months ended 31 March 2018 Council 2017/18 31‐Mar‐18 7.1 Actual Budget Variance Variance ($'000) ($'000) ($'000) (%) Operating revenue Revenue from exchange transactions: Finance revenue 1,804 975 829 85% Investment revenue 17,318 6,073 11,245 185% Other revenue 23,955 22,041 1,914 9% Revenue from non‐exchange transactions: Rates 64,338 64,074 264 0% Subsidies and grants 7,484 7,612 (128) ‐2% Development and financial contributions 781 710 71 10% Vested assets 34 ‐ 34 0% Fines and levies 1,019 1,395 (376) ‐27% Total operating revenue 116,733 102,880 13,853 13% Operating expenditure Personnel costs 28,271 28,734 463 2% Depreciation and amortisation expense 24,841 23,601 (1,240) ‐5% Other expenses 48,571 44,995 (3,576) ‐8% Finance costs 3,601 5,182 1,581 31% Total operating expenditure 105,284 102,512 (2,772) ‐3% Surplus before taxation 11,449 368 11,081 3011% Taxation refund/(expense) ‐ ‐ ‐ n/a

SURPLUS AFTER TAXATION FROM CONTINUED OPERATIONS 11,449 368 11,081 3011%

The Council surplus of $1.1m (excluding the unrealised gain on investments of $10.3m) for the nine months ended 31 March 2018 is $0.8m more than the budgeted surplus of $0.4m. Total operating revenue (excluding the unrealised gain on investments) for the period is $3.5m greater than budget predominantly due to favourable interest rates and $1.5m of recoverable costs related to Yarrow Stadium (corresponding expenditure in other expenses below). The unrealised gain on investments of $10.3m is due to the strong performance of the PIF year‐to‐date. Total operating expenditure is $2.8m more than budget year‐to‐date. The key contributing factors are: • $1.2m higher depreciation expense as a result of unfunded depreciation on roading and storm water. • $1.3m recoverable costs related to Yarrow Stadium (corresponding revenue recoverable in other revenue above). • $0.3m additional expenses related to the Civil Defence and EOC response to the water incident as well as the damage caused by the storms between July‐December 2017. • $0.5m additional costs incurred on the District Plan. These unfavourable variances to budget have been partially offset by finance costs being $1.6m less than budget as a result of lower borrowing costs due to the timing of capital expenditure, as well as favourable interest rates.

152 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Statement of Financial Position

Council 2017/18 Actual Budget Actual 31‐Mar‐18 31‐Mar‐18 30‐Jun‐17 7.1 ($'000) ($'000) ($'000) Current Assets Cash and cash equivalents 7,546 940 11,715 Trade and other receivables 45,321 18,830 13,538 Prepayments 1,999 ‐ 839 Inventory 141 90 141 Intangible assets 618 ‐ 618 Other financial assets 36,171 37,200 267,147 Non‐current assets held for sale ‐ 1,410 150 Total current assets 91,796 58,470 294,148 Non‐current assets Other financial assets 297,658 306,520 45,970 Tasmanian Land Company Limited 2,989 ‐ 2,989 Intangible assets 1,483 3,040 3,442 Forestry assets 2,577 2,360 3,224 Derivative financial assets 546 80 635 Deferred tax asset ‐ ‐ 5 Property, plant and equipment 2,173,160 2,145,200 2,163,688 Total non‐current assets 2,478,414 2,457,200 2,219,953 TOTAL ASSETS 2,570,210 2,515,670 2,514,101 Current liabilities Trade and other payables 18,686 18,180 12,779 Revenue in advance 28,860 ‐ 3,624 Public debt and other loans 54,000 39,360 60,000 Employee entitlements 3,818 ‐ 3,288 Other provisions 1,223 ‐ 791 Provision for tax ‐ ‐ 149 Derivative financial liabilities 364 ‐ 201 Total current liabilities 106,951 57,540 80,832 Non‐current liabilities Employee entitlements 609 770 633 Deferred tax liability ‐ ‐ 200 1,281 Derivative financial liabilities 6,552 8,580 5,908 Other provisions 1,595 1,530 1,595 Public debt and other loans 60,000 94,030 50,000 Total non‐current liabilities 68,756 104,710 59,417 TOTAL LIABILITIES 175,707 162,250 140,249 Public equity Special funds/reserves 80,161 80,960 85,519 Retained earnings 1,539,538 1,509,120 1,524,480 Asset revaluation reserve 774,803 763,340 763,853 Total public equity 2,394,502 2,353,420 2,373,852 TOTAL EQUITY AND LIABILITES 2,570,209 2,515,670 2,514,101

153 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Revenue and Expenditure Analysis Period Ended 31 March 2018

Total Revenue Revenue by category (excl Rates) ‐ YTD 1% 3% 35 13% Finance revenue 30 2% 25 Investment revenue 39% 20 Dev and fin contributions 15 7.1

$ Millions Actual 10 41% Other revenue Budget 5 Fines and levies 0 Subsidies and grants (5) 1%

(10) Vested Assets Month

Revenue (excl unrealised gains on investments) has been reasonably consistent against budget on a monthly basis. Year‐to‐date total revenue (excl unealised gains on investments) is ahead of budget $2.3m, of which $0.8m relates to interest rates being higher than budget. The remaining variance to budget results predominately from timing of revenue. Total revenue includes $1.5m of recoverable costs in relation to Yarrow Stadium. Investment revenue contributed $11.2m of unbudgeted income year‐to‐date.

Total Expenditure Expenditure by category ‐ YTD 15 14 13 Personnel costs 12 23% 28% 11 General operating 10 4% expenditure

$ Millions 9 Actual Direct costs of activities 8 Budget 18% 7 27% Finance expense 6 5 Depreciation and amortisation

Month

Expenditure was in line with budget for July and August, and over budget $2.4m September to December. January expenditure was $1.5m below budget due to timing of personnel costs, which are now in‐line with budget YTD, as well as timing of roading spend. February expenditure is in line with budget. Total expenditure includes $2.2m of recoverable costs in relation to Yarrow Stadium.

Personnel Expenditure by Month General Operating & Direct Expenditure by Month

6.7 9.7 8.7 5.7 7.7 6.7 4.7 5.7

$ Million's Actual 3.7 $ Million's 4.7 Actual Budget 3.7 Budget 2.7 2.7 1.7 1.7

Month Month

Personnel costs are in line with budget for the month of March and are within one per General operating and direct expenditure is over budget $1.1m (2.4%) YTD. The most cent of budget YTD. significant items are the recoverable costs in relation to Yarrow Stadium ($1.3m) and the additional spend on the District Plan ($0.5m), partially offset by lower Colson Rd

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154 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant Activities Operating Net Cost for the period ended 31 March 2018

Prior YTD Actual YTD Revised Variance YTD March March Budget YTD March March ($000) ($000) ($000) ($000) (%) Notes Net Operating Rates Surplus (Deficit) Parks and Open spaces (9,234) (9,615) (10,064) 450 ‐4% • +$184k capital grants. • +$292 rent and revenue hire. • ‐$116k council rates more than budget (full year impact). • ‐$120k services ‐ weather event clean‐up (full year impact 7.1 $215k). • ‐$24k additional cleaning in CBD.

Transportation (13,115) (9,120) (8,956) (164) 2% • ‐$205k lower labour recoveries to capital expenditure (Full year impact $350k). • ‐$195k NZTA grants and subsidies (timing). Stormwater Drainage (1,997) (1,628) (1,356) (272) 20% • ‐$195k contracts spend due to timing. • ‐$128k legal and professional expenses in relation to Hydro modelling. Flood Protection and Control Works (194) (93) (109) 16 ‐15% Solid Waste and Kerbside Collection (1,232) (1,570) (1,181) (389) 33% • ‐$1222k lower gate charges due to lower tonnage. • +$74k additional recycling income (2016/17). • +$112k waste levy revenue bought forward. • +$509k ETS scheme savings ‐ (full year impact ~$700k). Water Supply (5,793) (4,163) (4,305) 142 ‐3% Wastewater Treatment (10,405) (7,168) (7,956) 788 ‐10% • +$383k higher user fees & charges from trade waste volume increase. • +$96k contractor savings (timing). Emergency Mgmt & Business (408) (871) (476) (395) 83% • ‐$350k response to ex‐cyclone Gita water incident. Continuance Community Partnership (2,233) (2,167) (2,178) 11 0% GBAG & Len Lye Centre (2,892) (2,719) (2,809) 89 ‐3% • ‐$160k operating grants. • +$130k exhibition changeover timing. • +$37k retail sales. • +$31k wash‐up from Monica's rental. Puke Ariki and District Libraries (7,386) (7,604) (7,872) 268 ‐3% • +$256k net savings on exhibitions. Venues and Events (5,243) (5,295) (6,230) 935 ‐15% • +$361k increased events including All Blacks and Cat Stevens. • +$203 timing of operating grants. Regulatory Services (2,355) (2,837) (2,265) (572) 25% • +$145k parking increase due to volume. • ‐$425k District Plan expense (full year impact ~$850k) Economic Development (2,417) (2,894) (2,720) (174) 6% • Make Way for Taranaki (full Year Impact ‐$250k). Governance (3,531) (3,636) (3,747) 111 ‐3% Management of Investments and 10,473 7,618 5,283 2,335 44% • Interest savings. FdiOther Operating ‐ Rates 62,251 60,752 61,176 (424) ‐1% • +$284k VTR interest recognition. • +$312k rates strike (full year impact $808k, offset with $648k rates remission elimination). Total Net Operating Rates 4,289 6,991 4,235 2,755 65% Surplus/(Deficit)

Net cost by significant activity ‐ period ended 31 March 2018 10,000 8,000 6,000 4,000 2,000 0 (2,000) (4,000) (6,000) (8,000) Net revenue/(expense) $000's (10,000) (12,000) Governance Water Supply Transportation Venues and Events Regulatory Services Funding Continuance Stormwater Drainage Parks and Open spaces Wastewater Treatment GBAG & Len Lye Centre Economic Development Community Partnership Emergency Mgmt & Business Puke Ariki and District Libraries Management of Investments and Solid Waste and Kerbside Collection Flood Protection and Control Works Significant Activity

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155 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Capital Work Summary for the period ended 31 March 2018

Capital Works by Significant Activity

Significant Activity Annual Plan Annual Plan Total Current Full Year Variance Revised Year to Date Forecast Full Year Key Issues ($000) ($000) ($000) ($000) (%) Parks 2,702 3,980 1,598 3,045 ‐48% • Overspend on Marfell Community Space, Hobson St depot, Jubilee Park toilets; underspends on public halls; unbudgeted work on Te Henui Car Park and Waiwakaiho Netball Courts. See carry‐forwards report for predicted carry‐forwards. 7.1

Transport 11,520 13,975 7,814 13,665 ‐43% • Likely carry‐forward on growth related Area Q schemes. Unbudgeted work for Ahiti Stock Effluent Facility; risk of overspend on emergency works; potential for spend of 18/19 budget for LED lights project

Stormwater Drainage 209 209 224 383 ‐42% • Unbudgeted work at Waitara War Memorial Sewer Pump Station, London Terrace improvements and design works for future schemes.

Flood Protection and ‐ ‐ ‐ ‐ n/a Control Works

Solid Waste and Kerbside 5,712 6,582 5,710 8,317 ‐31% • Carry‐forward on CRRC and in‐year overspend on Central Landfill Collection (unbudgeted historic costs from STDC). Landfill Gas odour issues Phase 1 completed ($460k left within budget).

Water Supply 6,273 7,661 2,123 4,150 ‐49% • Carry‐forward on three reservoirs scheme ($3,500k) ‐ see carry forwards report. Unbudgeted works for Inglewood dirty water and design works for NPWTP fish screens (18‐28 LTP project). Unbudgeted Wastewater Treatment 8,849 15,641 9,710 14,583 ‐33% • In year overspend on Wai Taatari Project (approx $1.4m), ovek ill lt f F b 18 t i id t rall programme remains within the original budget; over spend on West Quay P/S (impact in 18/19). Carry‐forward on Thermal Drier Replacement. Community Partnership 116 141 83 141 ‐41%

Govett‐Brewster Art 81 151 20 65 ‐70% • Acquisitions ‐ external funding received. Re‐roof project completed in Gallery 16/17 with budget in 17/18.

Puke Ariki 1,676 1,886 1,432 2,017 ‐29% • Quick Check Project to be part renewal and part debt funded. Carry‐ forward on Long Term Gallery re‐fresh

Recreation & Events 1,652 1,867 759 1,471 ‐48% • Issues identified with pipework at TEAC, may need to carry‐forward $100k to fix issue in 18/19. TSB Stadium/Showplace renewals projects at risk. Regulatory Services 16 136 81 120 ‐33% • Lift renewal on hold until seismic assessment completed.

Emergency Mgmt & Bus ‐ ‐ ‐ ‐ n/a Continuance

Total 38,807 52,230 29,553 47,958 ‐38% ‐ 38,547 ‐ 51,970 ‐ 29,471

• At end of Q3, actual expenditure lags behind forecast by $500k (10%) • Cash‐flow profile to be updated for Q4 • Significant spend forecast in between April to June ($4,500k) for multiple projects in Transportation. • Area Q Waste Water Project progressing well on site: $750k to spend April. • Central landfill now on site: will spend $1,750k between April and June. • Wai Taatari (NP WWTP upgrades) on site: Further $1,500k to spend between April and May.

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156 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Carryforwards Summary for the period ended 31 March 2018

Significant LTP Code (2015 Renewal Service level Total Project Description Growth ($000) Comments Activity ‐ 2025) ($000) ($000) ($000) Transportation RD1034 Planning studies Bell To consider road changes required ‐ ‐ 100 100 Initial studies (50k) for 17/18 commissioned with Block around Area Q, R and Airport Drive. Beca. Planning work will be on‐going into 18/19. Transportation 889210 Bell Block By‐pass For improvements to the local ‐ ‐ 150 150 Dependant on development and NZTA Project (Bell improvements network that complement the SH3 Block to Waitara studies). improvements. Parks Various Land Purchases for Area Q, Area D, Waitara. ‐ ‐ 345 345 Dependant on development. Growth Parks PB1026 Waitara River New walkway by river in Waitara ‐ 450 ‐ 450 TRC are now requiring a limited notifiable consent Walkway which has further delayed this project, will miss 17/18 construction window. Parks PB1026 Crematorium Plan General renewals. 125 ‐ ‐ 125 To be carried forward to part fund 18‐28 LTP Renewals project to replace cremator. Total: 1,170

Carry‐forward for Significant Activities – Projects with delays within NPDC Control 7.1

Significant LTP Code (2015 Renewal Service level Growth Total Project Description Comments Activity ‐ 2025) ($000) ($000) ($000) ($000) Solid Waste SW1008 Community Resource New facility to promote re‐use and re‐ ‐ 1,800 ‐ 1,800 Delay due to time taken to identify best solution for and Re‐cycling facility cycling available funding, and PM also managing on Central Landfill project. Additional PM resource allocated Feb 18. Parks PK1083 Mangapouri Cemetery New staff facilities as this will become ‐ 100 ‐ 100 Ready to tender, unlikely to fully complete works Staff Facilities the main cemetery for the district this financial year.

Parks CB1019 Waitara Hall Seismic 250 ‐ ‐ 250 Design works progressing. Upgrades

Parks PK1084 Inglewood Skate park New Skate Park at Inglewood ‐ 200 ‐ 200 Contractor appointed. Due to undertaking Oakura first, insufficient time in 17/18 to undertake both parks. Will complete summer 18. Puke Ariki PA1003 Long Term Gallery Re‐ Taranaki Wars exhibition ‐ 200 ‐ 200 This projects initiation, during the first half of the fresh 17/18 financial year, was affected by not enough dedicated resource to get the content defined. This has now been remedied with a 5 month secondment of a curator to develop the content. Project timelines have been extended accordingly. Venues and CB1001 TEAC Plant renewals TBC Flagging risk ‐ might need to carryforward to fix Events issue with pipework at TEAC. Venues and CB1003 TSB Stadium renewals TBC Flagging risk ‐ might need to carry forward to Events resolve issues from fire report. Venues and CB1004 TSB Showplace TBC Flagging risk ‐ might need to carry forward as Events renewals project planned for 17/18 did not go ahead due to tender being over budget. Wastewater WW1066 Thermal Drier Replacement of thermal drier at the 1,050 ‐ 450 1,500 Design works and procurement strategy Replacement NP WWTP progressing. Wastewater AA0026 West Quay P/S Relocation of existing pump station 100 100 Delay resulting from having to reconsider original out of the flood plain proposed location of pump station Wastewater WW1080 Te Henui P/S Modification to P/S to improve safety 450 ‐ ‐ 450 Works best to be undertaken in summer months for maintenance activities due to low flows. Water Supply WA1085 and Okato Water Improvements to plant and use of 30 420 ‐ 450 Design works progressing. WA1076 Treatment bores Water Supply WA1040 New Reservoirs Three new reservoirs as identified ‐ ‐ 3,500 3,500 Design work commenced. Will have a contractor through the water master plan appointed in 17/18. Total: 8,550

Significant Activities Budget 17/18 52,230 Carry‐forward outside NPDC Control 1,170 Net Budget 17/18 51,060

Carry‐forward within NPDC Control 8,550

% Net Carry‐forward 16.7%

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157 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Treasury Report as at 31 March 2018

Summary Scorecard

New Plymouth District Council Interest Rate Position 7.1 12 Month Forecast Core Debt: 124 Liquidity Ratio: 110% Actual 113% Policy Compliance Y Funding Maturity Profile: Years 0 ‐ 3 years 3 ‐ 5 years 5 years plus Policy Limits 15% ‐ 60% 15% ‐ 60% 10% ‐ 60% Actual Hedging 39% 25% 36% Policy Compliance Y Y Y Weighted Average Duration: Funding 4.23 Years Fixed Rate Portfolio (swaps and fixed rate loans) 8.36 Years

Borrowings Summary

Overall position The current external debt stands at $114m. The weighted average borrowing rate is 4.25 per cent. As per the compliance scorecard above, we are within all Treasury Policy limits.

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158 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

New Plymouth District Council Fixed Position

1-3yr 3-5yr 5-10yr 80% 71% 46% 90% 140

80% 120 70% 7.1 100 60%

50% 80

40% 60 Debt forecast($m) 30% 40 20% Percentage fixed 12 month debt forecast 20 10%

0% 0 Mar-18 Apr-19 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Apr-25 Apr-26

Note: The percentages shown above are equal to the average amount of fixing over the average debt forecast for the period Percentage Fixed Debt Forecast

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159 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Appendix One Significant activity revenue and expenditure graphs for the period ended 31 March 2018

PARKS AND OPEN SPACES

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

18,000 18,000 16,000 16,000 7.1 14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 $000's

$000's 6,000 6,000 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $684k more than budget YTD. Expenditure is $239k more than budget YTD. • +$85k myrtle rust cost recovery. • ‐$116k council rates more than budget (full year impact). • +$184k capital grants. • ‐$85k myrtle rust cost recovery. • +$292 rent and revenue hire • ‐$120k Services ‐ weather event clean‐up (full year impact $215k). • +$30k cemetery/crematorium activity. • ‐$24k additional cleaning in CBD. • ‐$43k Airport revenue due to construction

TRANSPORTATION

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

25,000 25,000

20,000 20,000

15,000 15,000

10,000 10,000 $000's $000's

5,000 5,000

0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD. Expenditure is $958k more than budget YTD. • ‐$611k depreciation expense (no rating impact). • ‐$307k lower labour recoveries (budgeted too high, $350k annual impact).

STORMWATER DRAINAGE

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure and Forecast

3,000 3,500

2,500 3,000 2,500 2,000 2,000 1,500

$000's 1,500 $000's 1,000 1,000 500 500 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD Expenditure is $910k more than budget YTD. • ‐$569k depreciation expense (no rating impact). • ‐$195k contracts ‐ increased service requests due to storms. • ‐$131k legal and professional expenses in relation to Hydro modelling.

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160 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant activity revenue and expenditure graphs (continued)

SOLID WASTE AND KERBSIDE COLLECTION

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

9,000 9,000 8,000 8,000 7,000 7,000 6,000 6,000 5,000 5,000 4,000 4,000 7.1 000's $000's 3,000 3,000 2,000 2,000 1,000 1,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $1300k less than budget YTD. Expenditure $810k less than budget YTD. • ‐$1200k lower gate charges due to lower tonnage. • +$626k ETS scheme savings ‐ (full year impact ~$700k). • +$74k waste levy revenue brought forward. • +$112k Waste levy revenue bought forward.

WATER SUPPLY

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 $000's $000's 6,000 6,000 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD. Expenditure is in line with budget YTD.

WASTEWATER TREATMENT

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

18,000 18,000 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000

8,000 $000's 8,000 $000's 6,000 6,000 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue $403k more than budget YTD. Expenditure is $612k less than budget YTD. • +400k trade waste revenue • ‐$215k depreciation (no rates impact)

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161 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant activity revenue and expenditure graphs (continued)

EMERGENCY MANAGEMENT AND BUSINESS CONTINUANCE

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

800 800 700 700 600 600 500 500 400 400 7.1 $000's $000's 300 300 200 200 100 100 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD. Expenditure is $379k more than budget YTD. • costs incurred setting up EOC & response to water incident.

COMMUNITY PARTNERSHIP

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500 2,000 2,000 1,500 1,500 $000's $000'S 1,000 1,000 500 500 0 0 ‐500

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in $304k less than budget YTD. Expenditure is $310k less than budget YTD. • rates remission • rates remission

GOVETT‐BREWSTER ART GALLERY/LEN LYE CENTRE

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

5,000 5,000 4,500 4,500 4,000 4,000 3,500 3,500 3,000 3,000 2,500 2,500

2,000 $000's 2,000

$000'S 1,500 1,500 1,000 1,000 500 500 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $166k less than budget YTD. Expenditure is $235k less than budget YTD. • ‐$235k grant and sponsorship income. • $133k Timing of Exhibition changeover • +$70k retail sales. • $55k Reduced Marketing and Communications

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162 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant activity revenue and expenditure graphs (continued)

PUKEARIKI AND DISTRICT LIBRARIES

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

12,000 12,000

10,000 10,000

8,000 8,000 6,000 6,000 7.1 $000's $000's 4,000 4,000

2,000 2,000

0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $135k less than budget YTD. Expenditure is $358k less than budget YTD. • ‐$131k Exhibitions Operating Sponsorship not realised. • +$210k Exhibitions professional fees. • +$22k retail sales. • +$112k Grant expenditure (timing).

VENUES AND EVENTS

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000

6,000 $000's 6,000 $000's 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $1117 more than budget YTD. Expenditure is in line with budget YTD. • +$522k recovered expenses ‐ see Expenditure. • +$165k Venue hire ‐ All Blacks, Cat Stevens and Bryan Adams • +$183k Increased venue hire TSB Stadium and TSB Showplace • +$203k international sporting grant.

REGULATORY SERVICES

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

14,000 14,000 12,000 12,000 10,000 10,000 8,000 8,000 6,000 6,000 000's $000's 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD. Expenditure is $507k more than budget YTD. • Professional services to help process consents ‐ see revenue. • ‐$625k District plan.

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163 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant activity revenue and expenditure graphs (continued)

ECONOMIC DEVELOPMENT

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

3,500 3,500 3,000 000's 3,000 2,500 2,500 2,000 2,000 1,500 1,500 7.1 $000's 1,000 1,000 500 500 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget. Expenditure is $174k more than budget YTD. • ‐$162k for Make Way For Taranaki.

CIVIC AND DEMOCRACY SERVICES

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

7,000 7,000 6,000 6,000 5,000 5,000 4,000 4,000

$000's 3,000 3,000 $000's 2,000 2,000 1,000 1,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is in line with budget YTD. Expenditure in line with budget YTD.

MANAGEMENT OF INVESTMENTS AND FUNDING

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

22,000 22,000 20,000 20,000 18,000 18,000 16,000 16,000 14,000 14,000 12,000 12,000 10,000 10,000 $000's

000'S 8,000 8,000 6,000 6,000 4,000 4,000 2,000 2,000 0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

Revenue is $2.3m more than budget YTD. Expenditure is broadly in‐line with budget YTD. • + interest received on deposits higher than budgeted • ‐lower cost recoveries

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164 Performance Committee agenda (3 May 2018) - Decision - Performance Report 1 July 2017 to 31 March 2018

Significant activity revenue and expenditure graphs (continued)

FLOOD PROTECTION AND CONTROL WORKS

Actual vs Budgeted Revenue Actual vs Budgeted Expenditure

300 300

250 250

200 200 150 150 7.1 000'S 100 $000's 100

50 50

0 0

Actual Revenue Budgeted Revenue Actual Expenditure Budgeted Expenditure

No budgeted or actual revenue. Expenditure is in line with budget YTD.

Page 6 of 6

165 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation

ROAD STOPPING AND DISPOSAL TO ADJOINING OWNER – 1 SISSON TERRACE, LEPPERTON

MATTER The matter for consideration by the Council is an application by Mr Searle of 1 Sisson Terrace (“the applicant”) to stop a strip of legal road reserve approximately 547m² (subject to survey) and sell the land to the applicant. 8

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council: a) Notes that Section 2 SO 411880 (4m width) was previously unformed legal road reserve stopped by Council in 2010 and sold to the applicant following a request to do so. b) Declines the application to stop a strip of legal road reserve approximately 547m2 and decline to sell the land to the applicant. c) Delegates, to the Property Manager, the negotiation of an encroachment licence with the applicant for the encroachments on Sisson Terrace road reserve.

COMMUNITY BOARD RECOMMENDATION The Waitara Community Board endorsed the officer’s recommendation.

COMPLIANCE

Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Stop the proposed 4m strip of Sisson Terrace road reserve and sell the land to the applicant (547m²). Options 2. Stop and sell just that section of road reserve encroached upon by the applicant’s dwelling and sheds.

3. Decline the proposal and negotiate an encroachment licence with the applicant. The persons who are affected by or interested in this matter are the owner of 1 Sisson Terrace who has submitted the road Affected persons stopping application. The general public may also be interested as Sisson Terrace may need to be widened or developed in the future.

Recommendation This report recommends Option 3 for addressing the matter.

166 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation

COMPLIANCE

Long-Term Plan / Annual Plan No Implications

Significant Policy and Plan No 8 Inconsistencies

EXECUTIVE SUMMARY This report outlines an application by Mr Searle of 1 Sisson Terrace, Lepperton, to stop and purchase approximately 547m² of unformed legal road, a strip 4m wide (shown on a site plan in Appendix 1). The dwelling and other buildings on his property encroach into the road reserve.

Part area of proposed road to be stopped (highlighted in green) showing the applicants encroachments.

167 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation

BACKGROUND The road reserve title comprises two allotments, being Section 96 Block VII Paritutu Survey District and Section 2 SO 411880. Section 2 SO 411880 is a 1299m2, 4m wide strip of land adjoining the road reserve which extends the length of the site. Historically, this land was unformed road but was formally stopped by Council in 2010 following a request by the application order to partially rectify historic road encroachment issues. Council wished to retain 16 metres of road reserve at that time to allow for any future upgrades to the appropriate road standard. This position has 8 not changed.

Council records indicate that applications by the applicant for building extensions and a new shed in the late 1990’s had incorrectly shown the physical formed boundary of the carriageway (the edge of seal) as the road boundary, and therefore incorrect location information was used to issue successive building consents.

Despite the previous road stopping and purchase of land (Sec 2 SO 411880) by the applicant in August 2011, approximately 2m of the dwelling and 3m of the shed north of the dwelling still remain on legal road. The timber and stone garden wall encroaches a further 2m beyond the dwelling, or approximately 5m into road reserve. Additionally, large hedges to the north and south of the wall overhang within road reserve. Two ‘relocatables’ to the south of the dwelling are partially or wholly within road reserve and do not appear to have building consent.

Sisson Terrace (looking South). Mr Searle’s house and shed.

168 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation

Mr Searle’s house showing the front extension which is located over road reserve.

A Street Encroachment License was prepared by the Council in March 2012 to legalise the applicant’s occupation of road reserve by his dwelling, shed and garden wall. The licence was never signed or ratified by the applicant.

Since 2011, the applicant has tried unsuccessfully to purchase additional road reserve to fully rectify the encroachment issue for his dwelling. The applicant has been advised by the Council Transportation Team that it is the Council’s preference to retain the current 16m wide road reserve in order to provide the necessary room for future road improvements, and to monitor traffic volumes on Sisson Terrace and Smith Street as the recent subdivisions on Smith Street develop. Despite this the applicant has lodged a road stopping application to purchase a further 4m wide strip.

SISSON TERRACE CURRENT SITUATION The standard width of road reserve in the urban area is 20 metres. This width of this section of Sisson Terrace is 16 metres with 4.5 metres of that sealed. A partially formed stormwater channel runs along the western side of the seal. The footpath and kerb on both sides of this portion of Sisson Terrace has yet to be formed. Although the road reserve is 16m wide the seal is off-set to the east by approximately 4.5m owing to the historic encroachment from the subject site.

169 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation

Lepperton has a high water table and is relatively flat. Council has had to carry out urgent road improvements (bunding) to prevent street stormwater on Sisson Terrace from inundating residential properties on the opposite the site. There is a history of surface flooding at the Sisson Terrace/Smith Road intersection.

DISCUSSION The application for road stopping is not supported by Council’s Transportation team. The legal road width has already been reduced from the standard 20m and given the 8 current and perceived future development of Lepperton, it is prudent to retain the 16m width of the road to enable the development of key pedestrian and stormwater infrastructure.

There are a number of sections along Smith Street yet to be developed and with Smith Street now connected to Richmond Road, further development in the immediate area is expected. That development will most likely require the widening of Sisson Terrace with the installation of key roading infrastructure.

Accordingly it is recommended that the application be declined and, in order to legitimise the applicant’s existing encroachment into the road reserve an encroachment licence is negotiated with the applicant for the dwelling and for the shed located to the north of the dwelling.

SIGNIFICANCE AND ENGAGEMENT In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because it effects the surrounding Lepperton community. The proposal may have some impact on Council’s requirement to provide for the future needs of the community in a responsible and sustainable way. If the Council were to approve the road stopping application then a public process is required to be engaged at the end of which there is no guarantee that the applicant would want to purchase the land at its current valuation.

OPTIONS a) Financial and Resourcing Implications Options 1 & 2 Limited implications. Some resourcing required but the applicant would cover all costs. Both options would generate some income from the sale of the land, for instance the market value of the proposed 547m2 (Option 1) is expected to be approximately $15,000 based on surrounding land values. The benefits of maintaining the current road width of 16 metres are considered to outweigh any possible financial benefit from either option 1 or 2.

Option 3 Option 3 provides for an encroachment licence to be charged in accordance with the “Roading Fees and Charges” set by the Council. This includes provision for an application fee and annual charge.

170 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Item for Recommendation b) Risk Analysis Options 1 & 2 There is potential that future growth of Lepperton will require work to the existing Sisson Terrace and further stopping of this road will jeopardise the ability to carry out basic infrastructure works and improve the standard of the road.

Option 3 8 An encroachment licence will ensure that the applicant can retain his buildings in the current location until such time as council requires the land for road improvements. c) Statutory Responsibilities Options 1 & 2 The stopping of the road would be undertaken pursuant to Sections 116 (1) and 117(1) of the Public Works Act 1981. d) Consistency with Policies and Plans It is considered that Options 1 and 2 are not consistent with the Blueprint Key Direction of Growth. These options will not appropriately accommodate future growth in this community.

Option 3 supports the needs of the wider district and is consistent with Council’s policies and plans. e) Participation by Māori No consultation has been carried out as this is not considered to be a significant decision relating to land or water.

Recommended Option This report recommends Option 3 for addressing the matter.

Report Details Prepared By: Josh Baylis (Property Services Officer) Team: Property Approved By: Peter Handcock (Property Manager), Carl Whittleston (Manager, Transportation) Ward/Community: Clifton Date: February 2018 File Reference: ECM 7668576

------End of Report ------

171 Performance Committee agenda (3 May 2018) - Recommendation - Road stopping Sisson Terrace

Appendix One - Surveyors plan of proposed road stopping

8.1

172 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

Item for Recommendation

ACQUISITION AND LEGALISATION OF SEVERENCE LAND FOR LEGAL ROAD, 929 RICHMOND ROAD, LEPPERTON

MATTER The matter for consideration by the Council is the acquisition of 110m² of severance land that adjoins Richmond Road. The land would be legalised as road reserve under s114 of the Public Works Act 1981 once all approvals and consents have been obtained. 9 The Council has entered into a conditional acquisition agreement with the owners of the land (Pt Lot 1 DP 19140) with compensation agreed to be one dollar.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council: a) Notes that the 110m² triangular piece of land was a product of surveying the owners’ land at 929 Richmond Road, Lot 3 DP 414901, to its occupation as the underlying title was limited as to parcels. The owners have approached the Council with the offer that Council takes over the ownership of the parcel. b) Acquires and legalises the small parcel of land for road purposes based on a conditional agreement with the landowner and payment of compensation. The acquisition of this land is supported by the Transportation team. c) Approves the declaration as legal road, 110m² of privately owned land held in Computer Freehold Register TNK2/883, defined as Section 1 SO Plan 519806, described in the Schedule below pursuant to Section 114(1) of the Public Works Act 1981, and to the payment of agreed compensation of $1 (inclusive of GST if any) to the owners.

Land to be acquired for Road

Shown Marked Legal Description CFR Area (m²) Section 1 SO Plan Pt Lot 1 DP 19140 TNK2/883 110m² 519806

173 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

Item for Recommendation

COMPLIANCE

Significance This matter is assessed as being of some importance This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Agree to the acquisition of 110m² of land for use as Options Council road reserve.

2. Maintain status quo and decline the acquisition of land. 9 The persons affected by or interested in this matter are the Affected persons owners of the land to be acquired. The current owners do not use or graze the land. There is no impact to the general public.

Recommendation This report recommends option 1 for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY The owners of a small piece of severance land adjoining Richmond Road have requested that the Council acquire their land for road reserve. There are no easements or services running across the land and the Transportation team support the proposal. Compensation for the land will be $1.

174 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

Item for Recommendation

Pic 1: Aerial showing the land to be acquired (Pt Lot 1 DP 19140)

BACKGROUND 1. Background to Acquisition The registered proprietors of the piece of land, Trevor and Beverley Terry, are both deceased and the property needs to be transferred to their estate. The solicitor for the estate is concerned that given the cost of transferring the land (Pt Lot 1 DP 19140) which they do not use, it makes more sense that ownership is transferred to the Council. The small severance of land is outside the existing farm fences and was a product of surveying the adjoining parcel as to occupation. The Transportation team are agreeable to acquiring the land for road reserve.

2. Details of Property Affected by Acquisition Pt Lot 1 DP 19140, comprising 110 square metres more or less of land held in Computer Freehold Register TNK2/883.

3. District Plan The land is zoned Rural. There is no designation for acquisition of the land.

175 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

Item for Recommendation

4. Compensation under the Public Works Act 1981 The owners of the land are deceased and the costs of transferring the land to the estate, and the cost of continuing rates may outweigh the benefit of owning the land. Hence why the land has been offered to the Council. Compensation has been agreed at $1 including GST.

SIGNIFICANCE AND ENGAGEMENT In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance. The acquisition of this land for a nominal 9 fee by the Council is at the request of the current owners. There are no budgetary implications or proposed level of service changes. No consultation has been undertaken to ascertain the views of the wider community or adjacent property owners. The proposal will benefit the wider community by enhancing the road reserve at this location.

OPTIONS Option 1 Recommended: Approve the acquisition of 110m² of land for Council road reserve.

a) Financial and Resourcing Implications The Transportation budget provides funding for the purpose of acquiring land for legal road. Costs will be approximately $2000 for officer time, survey and legal costs to complete the acquisition.

b) Risk Analysis No known risk.

c) Promotion or Achievement of Community Outcomes This option promotes Prosperity through the acquisition and legalisation of land for road. Road constitutes core infrastructure as defined in the Local Government Act 2002.

d) Statutory Responsibilities Section 11A of the Local Government Act 2002, provides that the Council must have particular regard to the contribution of core network infrastructure.

e) Consistency with Policies and Plans This is consistent with Blueprint key directions of Growth – Direct a cohesive growth strategy that strengthens the city and township.

176 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

Item for Recommendation

f) Participation by Māori and Community Views The Council is acquiring private land that has no known waahi tapu sites present. The views of the community have not been sought. The acquisition of this land for $1 will benefit the wider community.

g) Advantages  Provides additional width to the road reserve in this location.

 Nominal compensation payable only. 9

Option 2 Not Recommended: Maintain the Status Quo – Decline to Proceed with the Acquisition

This option avoids any costs of resourcing and legal fees, but these are expected to be minor. The land currently appears to be part of road reserve given that the adjoining owners’ fence does not contain the land. The Council’s Transportation team support the proposal to increase the width of legal road reserve in this location by acquiring the land at minimal cost.

Recommended Option This report recommends option 1 for addressing the matter.

APPENDICES 1. Survey Plan

Report Details Prepared By: Josh Baylis (Property Services Officer) Team: Property Approved By: Peter Handcock (Property Manager) Ward/Community: Clifton Date: 28 March 2018 File Reference: PID 107299, ECM 7668563

------End of Report ------

177 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

9.1

178 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

9.1

179 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

9.1

180 Performance Committee agenda (3 May 2018) - Recommendation - Road Acquisition - Richmond Road

9.1

181 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

STOPPING AND SALE OF UNFORMED LEGAL ROAD FRONTAGE – 99 MESSENGER TERRACE, OAKURA

MATTER The matter for consideration by the Council is a decision on the stopping and sale at a market value purchase price of $15,500 (including GST if any) of surplus unformed legal road frontage to the property owner at 99 Messenger Terrace, Oakura.

RECOMMENDATION FOR CONSIDERATION That having considered all matters raised in the report the Council: 10 a) Notes that the land owners at 99 Messenger Terrace have entered into a conditional Memorandum of Agreement to purchase the freehold of road frontage to their properties subject to stopping, issue of title, registration of necessary easements, approvals and consents. b) Notes the sale price of the land has been independently assessed as to market value at $15,500 (inclusive of GST). c) Notes that 47 property owners were originally given the opportunity based on a 2008 resolution to purchase their road frontage along the seaward side of Messenger Terrace. There were 29 property owners that responded and took up the offer of the road stoppings. Two other properties since then have taken up the offer with road stopping and sales completed. Gross sales revenue of these 31 sales sits at $806,500. The property at 99 Messenger Terrace was not one of the 47 properties originally identified for the offer. d) Notes that because the stopping and sale of 31 land parcels along Messenger Terrace has been well tested for community objection through the public process under the Local Government Act 1974, and extensive consultation under the Local Government Act 2002, that the current stopping now proposed be facilitated under the Public Works Act 1981 as the most efficient cost effective mechanism rather than repeating the process under the Local Government Act 1974. e) Approves pursuant to the Public Works Act 1981, the stopping of 15.2m² of unformed legal road frontage adjoining the property at 99 Messenger Terrace (Lot 50 DP 7538) and to the sale of the estate in fee simple of that land parcel for the price of $15,500 (inclusive of GST if any) by standard transfer conveyance, subject to an amalgamation condition and registration of any necessary easements.

182 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

COMPLIANCE

Significance This matter is assessed as being of some importance. This report identifies and assesses the following reasonably practicable options for addressing the matter:

1. Recommended: Stop the parcel of unformed road fronting 99 Messenger Terrace and sell the land to the Options owners at the independently assessed market value of $15,500.

2. Not Recommended: Decline to stop the road and sell the land, and maintain the status quo. 10

The persons who are affected by or interested in this matter are the owners of the property at 99 Messenger Terrace, Dallas and Erin Chadwick. The views and preference of the Oakura Affected persons community were adequately gauged and tested through the earlier 2012 blanket road stopping public notice and consultation process.

Recommendation This report recommends option 1 for addressing the matter.

Long-Term Plan / Annual Plan No Implications

Significant Policy and Plan No Inconsistencies

EXECUTIVE SUMMARY The owners of 99 Messenger Terrace, Oakura have approached the Council with a request to buy a strip of the unformed road reserve directly fronting their property. They are building a new dwelling at the property which has restrictive covenants on the title. Acquiring the extra 1m wide strip of road frontage will enable the applicants to obtain a more suitable design for their new dwelling. The sale price has been agreed at $15,500 (including GST, if any) and the purchasers will pay all costs involved except Council’s own legal fees.

183 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

Pic 1: Aerial showing 99 Messenger Terrace and the 1m wide strip proposed for stopping.

Pic 2: Street view of 99 Messenger Terrace’s road frontage.

184 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

DISCUSSION 1. Agreement The owners of the property at 99 Messenger Terrace have entered into a conditional Memorandum of Agreement to purchase a portion of the road frontage adjoining this property. Under the Agreement, the applicant will meet the cost of a valuation assessment, survey and Accredited LINZ Agents fees and their own legal fees. The Council will meet the cost of its own legal fees.

2. Property Details Address Description Area Owners/Registered Computer Proprietors Freehold Register and Interests 10 99 Messenger Lot 50 DP 506m2 Dallas March Chadwick, TNG2/724 7538 Erin Ruth Chadwick, LW  Restrictive Covenant Nominees Ltd as to height  No build covenant

3. Independent Valuation Assessment The value of the 1m wide strip of road frontage was assessed at $15,500 including GST (if any) by registered valuers, Telfer Young, and agreement has been reached with the applicants to purchase at this price.

4. Easements Any necessary service utility easements will be defined at the time of survey and registered under the Land Transfer Act 1952.

5. Proposal to undertake the Stopping under the Public Works Act 1981 as opposed to the Local Government Act 1974 The current proposal is to use the Public Works Act 1981, to facilitate the stopping of the road parcel fronting 99 Messenger Terrace, obtain the necessary ministerial consent and gazettal declaration, secure title and to undertake sale by way of standard conveyance and title amalgamation.

The stopping under the Public Works Act 1981 is in lieu of using a repeat process under the Local Government Act 1974. This is on the premise that it has been clearly established following the public notice process and earlier extensive consultation that there is no community objection to the stopping of surplus unformed road along seaward Messenger Terrace that is occupied and used by adjoining land owners. The process under the Public Works Act 1981 is more straightforward and more cost effective.

6. Transportation Advice The applicants originally approached the Council to request a road encroachment licence for the front eaves of their proposed dwelling. The Transportation team were not willing to support this but would rather dispose of up to 1m width of the road frontage.

185 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

SIGNIFICANCE AND ENGAGEMENT In accordance with the Council’s Significance and Engagement Policy, this matter has been assessed as being of some importance. No need is seen to undertake further consultation on the views and preferences of the community on the current road stopping proposal. The current proposal aligns with earlier Council decisions.

OPTIONS Option 1 Recommended. Approve the stopping and sale of road frontage adjoining 99 Messenger Terrace. 10 a) Financial and Resourcing Implications The sale of the freehold of stopped road is cost effective and will generate gross revenue of $15,500 (inclusive of GST if any) against legal costs estimated at $1000 and some staff time cost.

Gross revenue achieved from the previous 31 road stoppings and sales along Messenger Terrace is $806,500. b) Risk Analysis No anticipated risk. c) Promotion or Achievement of Community Outcomes Promotes community outcomes by disposing of surplus road and enabling a quality new-build home. d) Statutory Responsibilities Meets statutory requirements of the Public Works Act 1981, Local Government Act 1974, and Local Government Act 2002. e) Consistency with Policies and Plans Disposal is consistent with plans and policies. Consistent with Policy P05-019 as to an “off market sale” to adjoining owners as the only possible purchaser. Also consistent with the Council’s Blueprint key directions of Growth and Community. f) Participation by Māori Consultation on the stopping was undertaken with Ngati Tairi hapu on the 47 properties along seaward Messenger Terrace in 2008 and as a part of wider community consultation. No additional repeat consultation is seen to be necessary. No waahi tapu or access to any sites of significance is affected. g) Community Views and Preferences The views and preferences of the Oakura community were extensively canvased in 2008 and through public notice in 2012, with the result that there was no objection to the stoppings and disposal of road frontage to adjoining

186 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation

land owners. No further engagement is seen as necessary for a decision in this particular case or that of future similar cases. h) Advantages and Disadvantages  The stopping and sale is cost effective and will generate a net income, allow for better resource allocation and is prudent use of resources.  The proposal gives effect to the rationalisation and sale of unformed legal road that is not required for road purposes.  The stopping and sale is consistent with the decision in 2010 to undertake a blanket road stopping and disposal that has resulted in the sale of 31 land parcels to date.  The sale will generate additional rating revenue. 10  The road stopping and sale is consistent with past Council resolutions.  There is no past community or hapu objection to stopping and disposal.  Provides additional freehold land to mitigate land lost by coastal erosion.  There are no disadvantages, except land may accrue in value over time if unsold.

Option 2 Not Recommended. Decline the application and maintain the status quo. a) Financial and Resourcing Implications No revenue or costs would be involved if status quo maintained. b) Risk Analysis The owners would have to amend their preferred building design if an encroachment licence was not supported. Sale of the land outright is the preferred approach. c) Promotion or Achievement of Community Outcomes Community outcomes would not be promoted and a decision to decline the application would be inconsistent with past Council resolutions. d) Statutory Responsibilities If the stopping and sale is not approved, the Council may be contrary to its obligations under the Local Government Act 2002 to ensure prudent stewardship and the efficient and effective use of its resources. e) Consistency with Policies and Plans To decline the proposal would be inconsistent with the Council’s policies and past decisions to support similar road stoppings. f) Participation by Maori Consultation was undertaken in 2008 with Ngati Tairi hapu with no issues raised.

187 Performance Committee agenda (3 May 2018) - Recommendation - Road Stopping - 99 Messenger Terrace

Item for Recommendation g) Community Views and Preferences Based on past extensive consultation and public notice calling for objection, the views and preferences have already been taken into account to the wider stopping and road disposal along the seaward side of Messenger Terrace. h) Disadvantages and Advantages  The land could continue to accrue in value.  The retention of surplus area of unformed legal road that comprises a non-core infrastructure road asset infrastructure will continue to carry an administrative burden.  Loss of net revenue that could otherwise be better applied more effectively in support of other Council purposes. 10  There are no advantages in maintaining the status quo.  Is inconsistent with obligations under the LGA 02 to undertake efficient and effective use of resources in the interests of the District.

Recommended Option This report recommends option 1 for addressing the matter.

Report Details Prepared By: Josh Baylis (Property Officer) Team: Property Approved By: Peter Handcock (Property Manager) Ward/Community: Kaitake Date: 26 March 2018 File Reference: PID 4713 ECM 7676873

------End of Report ------

188 Performance Committee agenda (3 May 2018) - Recommendation - Q3 Health and Safety Report

Item for Recommendation

HEALTH & SAFETY QUARTERLY REPORT – PERIOD ENDED MARCH 2018 – DUE DILIGENCE OBLIGATIONS

PURPOSE This report presents the Health and Safety Quarterly Report for the period ended March 2018 as part of the Due Diligence obligations (Officers Charter - Obligation 4).

RECOMMENDATION That, having considered all matters raised in the report, the report be noted.

SIGNIFICANCE AND ENGAGEMENT 11 This report is provided for information purposes only, and has been assessed as being of some importance because of the potential implications that Officers and the Council face if due diligence obligations are not met. As this matter relates specifically to Officers, public consultation is not required.

DISCUSSION HSWA 2015 came into force on 4 April 2016. It is the most significant change in New Zealand employment law in recent times. The purpose of the Act is to secure the health and safety of workers and workplaces in New Zealand. The Act has been designed to incorporate health and safety at all levels within an organisation, particularly senior leadership and explicitly defines the Elected Members and the Chief Executive as Officers.

An Officer is a person who holds a very senior leadership position and has the ability to significantly influence the management of a Person Conducting a Business or Undertaking (PCBU) e.g. The Council. Every Officer has a duty.

In order to meet his or her due diligence obligations, an Officer must take all reasonably practicable steps to address six key obligations. In response to these obligations, Elected Members in July 2016 adopted a Due Diligence Framework and an Officers Charter. Obligation Four under the framework requires Officers to ensure there is appropriate reporting and investigation processes in place and elected member reporting as specified in the Officers Charter. This report presents the Health and Safety Quarterly Report for the period ended 30 September 2017 under that framework.

FINANCIAL AND RESOURCING IMPLICATIONS There are no financial or resourcing implications relating to the report. However, failure to meet due diligence obligations could result in fines and improvement notices.

189 Performance Committee agenda (3 May 2018) - Recommendation - Q3 Health and Safety Report

Item for Recommendation

IMPLICATIONS ASSESSMENT This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:  Council staff have delegated authority for any decisions made;  Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;  Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;  Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan; 11  Any decisions made are consistent with the Council's plans and policies; and  No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

APPENDICES (Attached as a separate document) 1. Health & Safety Due Diligence Report – Quarter 3 (01/01/2018 – 27/03/2018) “Dashboard”

Report Details Prepared By: Ian McGrath (HSE Manager) Team: People & Wellbeing Approved By: Andrea Smith (Group Manager Organisational Development) Ward/Community: District Wide Date: 27 March 2018 File Reference: ECM 7679153

------End of Report ------

190 Performance Committee agenda (3 May 2018) - Recommendation - Q3 Health and Safety Report

Health and Safety Due Diligence Report - Quarter 3 (01/07/2017 - 31/03/2018) Our Priority: Drive a culture of health and safety leadership and a commitment to safe outcomes

1. Events 2. ICAM Investigations 4. Training to mitigate critical risk

Environment, 21 Quality, 1 Asset Damage, 35 . New investigations this quarter 3 . Investigations in progress 1 Security, 23 Asset Damage . ICAM investigation Year to Date 8 Near Miss . Events requiring formal investigations 2% H&S/Injury Security Near Miss, Environment H&S/Injury, 178 195 3. Number of Events by Critical Risk (YTD) Quality

Incidents by Type - YTD

. LTI - Knee Strain caused by twisting movement (Office) - 31/07/17 and Lower Back Strain from bending (Parks) - 19/09/2017 . MTI - Back Strain lifting sack of bicarb - 16/10/17, Secondary infection to minor hand • 92% of all training is H&S related this year to date injury - 19/10/17 and Shoulder Strain caused by dog pulling on lead - 17/01/2018 • 196 staff undertook some form of H&S training (29% of staff) so far this year. • H&S Courses undertaken • Recovery: e.g. First Aid; Fire warden • Total # of recordable injuries beyond first aid (lost time and medical treatment) for • Preventative: e.g. Traffic Control; Construction Safety; Driving; Frontloading employees is significantly down on the same annual period in 2016/17 from 10 to 5 Forklift; Growsafe; Permit to Work; Forklift; Fear Free; Child Matters (50% reduction over 9 months) • Total # of reported incidents (excluding near miss events) is significantly up on the 11.1 same annual period in 2016/17 from 173 to 242 (39% increase over 9 months). 5. Hazards and Procedures • Total # of reported injuries relating to employees is up on the same annual period for 2016/17 from 46 to 88. However, 94% are minor first aid or no treatment required (minor). Hazard Management Module in Pinnacle released on 21st March. Internal training for • Strains / Sprains (Manual Handling) and Minor Skin Damage (Cuts, employees to identify operational hazards and assess risk associated with those hazards. Abraisions, Bruising) are the most common cause of injury by category year to Critical Risk incidents by category (Year to date) In addition, they will have the ability to create activity based Hazard ID Forms, to date and represent approximately 70% of all employee injuries. consistently plan and organise work by breaking the job down into the various activities, • Further trend analysis is identifying opportunities for targetted injury reduction Employee Incidents Non-Employee Incidents identifying hazards and risks associated with each task and documenting effective programs by operational area to manage hazardous manual tasks more effectively moving forward. Vehicle Movements 5 Water 14 Personnel Security 3 Public Health 4 6. Contractor Management

• Critical Risks - a committment to establish a revised Critical Risk Framework Contractors with current H&S prequalification 450 that will enable NPDC to effectively manage H&S risks commenced in Q3 2018 (Jan-Mar). • We are conducting a full risk assessment of all items within the critical risk Contractor activity Qtr YTD framework to determine an accurate risk ranking, apply a thorough risk . Inductions/PTW conducted 32 157 identifiication, reduction and control process and develop detailed risk . Audits conducted 3 44 protocols to promote critical risks relevant to NPDC and individual Business Units. • Bow-tie diagrams are being developed as a simple and effective tool for communicating risk assessment results to employees at all levels and display • Contractor Management Module (Pinnacle System) due to be released in Q4 2018 the links between the potential causes, preventative and mitigative controls (April-June) which will enable NPDC to track all prequalification processes, on site and consequences of a major incident. inductions, audits and compliance documents in one platform and ensure that our • Critical Risk protocols for each category of risk will help to summarise the contractors supply us with relevant information. preventative controls deemed necessary to prevent fatalities, serious incidents and injuries arising from the most common hazards and associated risks encountered by our business activities.

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