Minutes of the Meeting of the Whanganui District Council Held At

Minutes of the Meeting of the Whanganui District Council held at 1.00pm on Tuesday, 31 October 2017, in the Council Chamber, Municipal Office Buildings, 101 Guyton Street, Whanganui ______

Present: Mayor Hamish McDouall (Chair), Deputy Mayor Cr Jenny Duncan, Cr Charlie Anderson, Cr Philippa Baker-Hogan, Cr David Bennett, Cr Josh Chandulal-Mackay, Cr Murray Cleveland, Cr Helen Craig, Cr Kate Joblin, Cr Hadleigh Reid, Cr Alan Taylor, Cr Rob Vinsen and Cr Graeme Young.

In Attendance: Mr David Matthews (Chair, Wanganui Rural Community Board).

Apologies: Deputy Mayor Cr Jenny Duncan and Cr Alan Taylor (for lateness). Mr David Matthews (Chair, Wanganui Rural Community Board).

Officers in Attendance: Mr Kym Fell (Chief Executive), Mr Mike Fermor (General Manager – Finance), Ms Sarah Pomeroy (Communications and Marketing Manager) and Ms Therese Zimmerman (Governance Services Officer). Secretary: Mrs Karyn Turner (Governance Services Officer).

Prayer Cr David Bennett read the Prayer.

Apologies Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

THAT apologies for lateness from Deputy Mayor Cr Jenny Duncan and Cr Alan Taylor are received. CARRIED

Declarations of Interest Cr Chandulal-Mackay declared a conflict of interest in Item 7: Residue of Henry Sarjeant Bequest.

Additional Information Minutes for Adoption  Youth Committee Minutes – 25 September 2017  Strategy and Finance Committee Minutes – 26 October 2017

Item Officer Order Paper Page Confidential Interim Chair, 43 10. Whanganui District Council Holdings Annette Main Limited Report

Confidential Kym Fell 156 15. Chief Executive’s Report – 31 October 2017

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

1 THAT the additional information tabled is taken with the relevant items. CARRIED Deputy Mayor Cr Duncan joined the meeting at 1.06pm

Public Engagement Forum  Mr Jim Callaghan – Request for a change in the sequence of four sets of traffic lights in the Central City. Mr Callaghan referred to traffic lights in Wilson Street and Victoria Avenue that provided green lights simultaneously for left turning traffic and pedestrians. He requested Council consider a minor change to the sequence of these traffic lights that would provide a two to three second advantage for pedestrians crossing prior to the green light for left turning traffic. Mayor McDouall advised this matter would be referred to the Infrastructure Team.

 Mr Amail Habib – Stop the Sale of Liquor in Supermarkets Mr Habib tabled and spoke to his submission to Council requesting that the sale of alcohol be restricted to liquor stores only and not be sold in supermarkets. Mr Habib worked at Whanganui hospital as Chaplain and said his presentation to Council was not on behalf of the hospital nor his church, but his personal views in the interests of public. He said Whanganui was a low socio-economic area and alcohol was a luxury, not a need. Alcohol consumption led to violence, addiction, damaged property, drink-driving and crime and impacted people’s health. Selling alcohol in supermarkets normalised its consumption. Mr Habib’s request to Council was to minimise the harm caused by use of alcohol and to make its availability less convenient as had been the case with tobacco.

Confirmation of Council Minutes – 3 October 2017 Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

THAT the minutes of the Whanganui District Council’s meeting held 3 October 2017 are confirmed. CARRIED

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Reports to Council

1. Iwi Engagement

Bryan Nicholson, Chief Operating Officer, reports:

Executive summary This report outlines Council’s recent engagement with Iwi.

Background Formal relationships exist between the Council and Te Rūnanga O Tupoho and Te Rūnanga O Tamaupoko, with regular hui scheduled throughout the year that focuses on all levels – political, social, economic and environmental – for the benefit of all of Whanganui.

The following hui has been held and matters discussed:

Tamaupoko Link Wednesday, 27 September 2017, at Ngā Tāngata Tiaki o Whanganui.  Suzanne Aubert canonisation and infrastructural development planning.  Recycling site project.  Representation Review.  Roading update.  Iwi engagement on Strategy and Policy.  2018 Hui Dates.  Whiteware dumping.  Next hui scheduled for 8 November 2017 at Whanganui District Council.

The unconfirmed minutes of the Tamaupoko Link hui held on 27 September 2017 are attached (Ref A).

References – Agenda Attachments A Unconfirmed minutes of the Tamaupoko Link hui held on 27 September 2017.

Discussion Cr Craig referred to the preparation for Suzanne Aubert’s canonisation and said while a toilet facility was planned, queried what else was being planned to manage the significant impact of increased visitor numbers, accommodation requirements and traffic flow. Mayor McDouall said the Council’s jurisdiction was infrastructure which was River Road maintenance. While Whanganui & Partners’ team may work with up-river businesses, the provision of facilities and events was not the Council’s responsibility. Mother Aubert’s canonisation would come from the Roman Catholic Church and the Council would work with the Church.

Cr Chandulal-Mackay advised the Sisters of Compassion at Jerusalem were working with Tamaupoko and they had identified the lack of toilets. Dialogue was occurring and there had been a meeting with Council officers and Whanganui & Partners. He undertook to link Cr Craig into any updates.

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Mayor McDouall advised a Pōwhiri had been held today at Putiki for Marama Laurenson, the Council’s new Strategic Lead, Culture and Community.

Cr Young left the meeting at 1.28pm.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Chandulal-Mackay

1.1 THAT the Iwi engagement information is noted.

1.2 THAT the unconfirmed minutes of the Tamaupoko Link hui held on 27 September 2017, are received. CARRIED

2. Council Nomination to Te Karewao

Charlotte Almond, General Manager – Strategy, reports:

On 14 March 2017, the Te Awa Tupua (Whanganui River Claims Settlement) Act 2017 was enacted. The Act gives legal effect to, and must be interpreted in a manner that best furthers the agreements in the Deed of Settlement signed between Whanganui Iwi and the Crown in 2014.

The Deed of Settlement was developed in two parts and includes the document ‘Ruruku Whakatupua – Te Mana o Te Awa Tupua’ that sets out the terms of a new legal framework for Te Awa Tupua, the Whanganui River system; and the document ‘Ruruku Whakatupua – Te Mana o Te Iwi o Whanganui’, which contains the elements of redress that apply solely to Whanganui Iwi regarding Te Awa Tupua.

Key elements of Ruruku Whakatupua – Te Mana o Te Awa Tupua include the appointments to:  Te Pou Tupua – two people who will act and speak on behalf of Te Awa Tupua. Dame Tariana Turia, DNZM and Turama Hawira were appointed to the office of Te Pou Tupua in September 2017.  Te Karewao – an advisory group that will advise and support Te Awa Tupua.  Te Kōpuka – a strategy group.

The post settlement governance entity, Ngā Tāngata Tiaki o Whanganui Trust, and the recognised body responsible for the implementation of the settlement on behalf of Whanganui Iwi, has requested that nominations are forwarded for Te Karewao.

Mayor Hamish McDouall has recommended that Annette Main be nominated for Te Karewao. Given her work with Whanganui Iwi and her relationship with the Whanganui River, Mayor McDouall believes she is the best candidate for the Council to nominate.

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A paper detailing the advisory and strategic groups, and their respective roles, is attached. (Ref B).

Please note that while the recommended date for nominations has passed, it has been acknowledged that this date was not fixed due to its tight timeframes and inability to align with the ratification processes of Local Government. References – Agenda Attachments B Mayor and Chair Te Karewao Te Kōpuka Paper. Cr Young rejoined the meeting at 1.32pm.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Cr Joblin, seconded by Cr Duncan:

2.1 THAT the Council recommends that Annette Main be nominated as the Local Authority representative to Te Karewao, an advisory group to Te Pou Tupua as outlined within Te Awa Tupua (Whanganui River Claims Settlement) Act 2017. CARRIED ACTION: Linsey Higgins

3. Adoption of Council Annual Report for Year Ended 30 June 2017

Mike Fermor, General Manager – Finance, reports:

“Introduction This report is a summary of Council’s Annual Report for the year ended 30 June 2017. The Annual Report will be posted on Council’s website by the end of November 2017. Copies will be made available to the public and Elected Members upon request.

Background The Local Government Act (LGA), The Financial Reporting Act, other relevant legislation and New Zealand International Public Sector Accounting Standards require Council to disclose a large amount of information in the Annual Report. The purpose of the Annual Report is to report on both financial and non-financial performance of the Council by comparing what the Council actually did with what it planned to do.

Council is required, by law, to obtain from an independent third party (Audit New Zealand), its opinion on whether the financial statements and the statement of service performance fairly reflect the results of operations for the year. We are anticipating an unmodified (clear) audit opinion from Audit New Zealand.

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Strategic context The purposes of an Annual Report as defined by the Local Government Act 2002 (s98(2)) are: (a) to compare the actual activities and the actual performance of the local authority in the year with the intended activities and the intended level of performance as set out in respect of the year in the Long-Term Plan and the Annual Plan; and (b) to promote the local authority’s accountability to the community for the decisions made throughout the year by the local authority.

Factors to consider  Financial considerations See comments above under ‘Strategic context’.

 Legal compliance The Local Government Act 2002 (s98) requires Council to prepare and adopt an Annual Report. The annual report must be completed and adopted within four months after the end of the financial year (adopted by the end of October).

 Policy implications Not applicable

 Risks Not applicable

Significance In terms of the Significance and Engagement Policy this report is not significant.

Engagement Not applicable

Assessment of options Not applicable

Overview The Annual Report details the financial performance of two different entities, ‘Council’ and ‘Group’. The Council is the total of all the Council’s activities as listed in the Annual Plan.

The ‘Group’ consists of aforementioned ‘Council’ plus organisations that Whanganui District Council has significant shareholding in. The major ones are Whanganui District Council Holdings Limited (100% owned), Wanganui Gas Limited (WGL) and its subsidiaries, New Zealand International Commercial Pilot Academy Limited and the Sarjeant Gallery Trust.

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As ‘Council’ is the entity for which we prepare the Annual Plan and strike the rates, this report will concentrate on these results.

The Council has four main summary financial statements which have different purposes:  The Statement of Comprehensive Revenue and Expense (Profit and Loss account) shows income and expenditure for the year, including revaluations and other non- cash items (page 150).  The Statement of Financial Position (Balance Sheet) shows Council’s assets and liabilities (page 152).  The Statement of Cash Flows shows actual money received and spent during the year (page 153).  The Funding Impact Statement shows income and expenditure for the year, excluding revaluations and other non-cash items (page 154).

Results The following is a summary of the key financial results contained in the report.

Cash Flow Statement (page 153) Net Cash flow from operating activities is effectively all the money the Council received (excluding borrowings), less all the money it paid out (excluding money spent on capital items). The surplus from this was $31,346,000, compared to a budget of $33,724,000 (variance of $2,378,000). The timing of receipts and payments impacts on this variance as well as the variances in income and expenditure discussed below. The deferral of Roading work (see below), with the accompanying New Zealand Transport Agency (NZTA) subsidies, would also impact on this variance.

Cash flows from investing activities is mainly the money spent on the capital costs of maintaining assets and new capital projects. The Council spent $48,507,000 (net), which was $4,491,000 below budget. As previously reported to this Committee, expenditure brought forward for the Treatment Plant rebuild (note that the overall budgeted cost for the Treatment Plant rebuild remains unchanged), was offset by the deferral of other capital expenditure. Major projects approved for carryover to 2017/18 include:  Roading flood damage work $4,100,000  Urban cycleway project $2,200,000  Water supply projects $1,400,000  Parks and Reserves projects $2,300,000

Cash flows from financing activities show a net increase in debt of $21,300,000, compared to budgeted increase of $19,638,000. This variance was mainly due to debt pre-funding of the Treatment Plant rebuild, partially offset from capital projects not proceeding in 2017 as outlined above.

The cash flow statement shows the Council had a responsible financial year with expenditure being kept within budgetary limits.

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Statement of Comprehensive Revenue and Expense (page 150) The Statement of Comprehensive Revenue and Expense shows a 2017 surplus before tax of $13,803,000. This compares to a budget surplus of $15,546,000. This surplus includes New Zealand Transport Agency (NZTA) subsidies of $16,520,000. While these subsidies are recognised as revenue within the Statement of Comprehensive Revenue and Expenses, a large portion of these subsidies were to fund capital expenditure.

This above surplus includes variances in a number of individual line items as listed below:  Total other revenue (consisting of Subsidies and grants; User fees and other revenue; and Gains) of $32,832,000 was over budgeted income of $31,172,000.

This variance related mainly to a revaluation gain on derivative financial instruments (SWAPs) of $3,449,000 and gains in revaluation of Forestry assets of $1,386,000. These gains were partially offset by deferral of roading works, such as the River Road, Papaiti Road realignment and the Urban Cycleway Project. This deferral resulted in lower that budgeted subsidy income from the NZTA. In addition there was a reduction in water sales.

 Personnel costs are over budget by $384,000 due mainly to restructure costs.  Depreciation and amortisation expense is higher than budgeted by $1,868,000. The unfavourable variance is due to higher asset values than what was originally budgeted for.  Other expenses has an unfavourable variance of $616,000. This is a 1.9% variance to the budget of $33,184,000. While there were negative variances for expenses such as Insurance premiums, Forestry expenditure, Legal fees, non-cash items such as Impairments and Losses on sale, these were partially offset by savings in Electricity costs, Contractors and Consultancy.  Finance costs were $233,000 lower than budget due to general market conditions providing lower interest rates and savings from the timing of borrowings.

Each year the Council is required to revalue a number of its assets at 30 June. These revaluations result in non-cash movements in the Statement of Comprehensive Revenue and Expense. The 2017 surplus includes the following non-cash items (these are also listed above):  Increase in market valuation of derivative instruments $3,449,000. Any movement in long-term interest rates impacts on the valuation of these instruments.  Increase in market valuation of forestry assets and land and buildings of $1,938,000.

The Statement of comprehensive revenue and expense includes (recorded below Council’s surplus line) a $6,281,000 gain on the revaluation of property plant and equipment. This gain related to revaluations within its Infrastructure assets (Three Waters and Roading).

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Funding Impact Statement (page 154) This statement shows how Council has performed against its Annual Plan. Overall the Council has an operating surplus of $15,968,000, which is $4,038,000 below budget. The main variance relates to Subsidies and grants ($3,647,000 variance), which has been discussed above.

This summary statement is the best indication of how we performed against what we planned to do.

Benchmark Ratios The benchmark ratios are included in the disclosure statement in pages 140-149. These measurements are designed to measure the financial prudence of a local authority’s plans and performance.

The benchmarks contain ratios for the current year and previous years’ comparatives. These ratios are designed to measure Council’s overall rates affordability, debt affordability, sustainability and predictability (i.e. ability to predict debt and cashflows).

The graphs on these pages show the results for 2017 with comparatives for up to the four previous years for many of the ratios. For 2017 Council has met the majority of its requirements for these benchmarks, the exception being the Operations control benchmark (p.149). This benchmark compares net cash flow from operations as a proportion of its planned net cash flow from operations. The surplus of cash from operations was $31,346,000, compared to a budget of $33,724,000 (variance of $2,378,000). This variance is explained above.

Conclusion Financially the Council has performed well with a rate funded credit balance (as reported at the 15 August 2017 Strategy and Finance Committee’s meeting), and debt balance of $94,050,000 compared to a budgeted debt balance of $94,822,000. Capital expenditure is below budget, largely due to projects being deferred. Council approved capital expenditure to be carried over to 2017/18 at its meeting held on 6 September 2017.

Council expects again to receive an unmodified (clear) audit opinion from Audit New Zealand.

Discussion Mr Fermor reported that an unmodified audit opinion had been received from Audit New Zealand. Mayor McDouall congratulated the Finance Team on the huge amount of work undertaken on the Council’s Annual Report. He said to receive an unmodified audit opinion was a great achievement.

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Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Duncan:

3.1 THAT the Annual Report for the year ended 30 June 2017 is adopted.

3.2 THAT Council provides an audit Letter of Representation to Audit New Zealand. CARRIED ACTION: Mike Fermor

4. Committee Terms of Reference – Amendments

Charlotte Almond, General Manager – Strategy, reports:

Introduction The purpose of this report is: 1. To provide clarity to the three functions of the Statutory Management Committee. 2. To seek an amendment to Infrastructure and Special Projects Committee’s Terms of Reference. 3. To change the frequency of meetings of the Council’s three Standing Committees: Strategy and Finance, Property and Community Services, and Infrastructure and Special Projects from six-weekly to two-monthly from 2018.

Background Council and Committee Terms of Reference were adopted by the Council on 5 December 2016 with subsequent amendments adopted at its meeting held 4 April 2017.

Strategic context For the purposes of efficiency and effectiveness in the conduct of Council’s business, the Council may delegate to a committee many of its responsibilities, duties, or powers.

Factors to consider  Financial considerations There are no financial implications.

 Legal compliance Legal compliance can be met either by Council retaining its power or by delegating its powers to a Committee of Council.

 Policy implications Not applicable.

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 Risks There is no risk associated with this decision. This item is merely providing greater clarification on the roles of the Statutory Management Committee and reflecting the change of reporting for special projects through to Whanganui District Council Holdings.

Significance This recommended decision is not significant.

Engagement Not applicable.

Assessment  Statutory Management Committee The three distinct functions of the Statutory Management Committee are as follows:

1. Regulatory: (a) To hear and determine matters under the Dog Control Act 1996; (b) To hear and determine objections to urban and rural temporary road closure objections. (c) Delegated power under section 67A of the Building Act to grant a waiver or modification of section 162C(1) or (2) of the Building Act. (d) Delegated power under clause 16.2 of the Whanganui District Council Streets Infrastructure Bylaw 2015 to confirm, reverse, or modify the decision or conditions made by an authorised officer.

Membership Chairs: Cr Alan Taylor or Cr Charlie Anderson Members: All Councillors Minimum on Committee: Three Councillors.

2. Policy and Bylaws: (a) To hear and make recommendations to Council on the adoption of a bylaw. (b) To hear and make a determination on those submissions on proposed policies except those policies required to be adopted and consulted on under the Local Government Act in association with the Long-Term Plan or developed for the purpose of the Local Governance Statement.

Membership Chair: Mayor Hamish McDouall Members: All Councillors Quorum: Majority of Members (Standing Order 10.2)

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3. Hearings under the Resource Management Act 1991: (a) To hear and make recommendations to Council on changes to the District Plan pursuant to the Resource Management Act 1991. (b) To hear and determine resource consent applications pursuant to the Resource Management Act 1991 to the extent authorised by the Council delegation.

Membership Qualified Elected and Non-Elected Independent Commissioners Minimum on Hearing – Three.

 Infrastructure and Special Projects Committee Special Projects originally reported to the Infrastructure and Special Projects Committee, however would now report to Whanganui District Council Holdings Limited. The Committee’s name and Terms of Reference therefore require amendment to:

Infrastructure Committee Chair: Cr Alan Taylor Deputy Chair: Cr Hadleigh Reid Members: All Councillors Frequency of meeting: Two-monthly (from 2018) Quorum: Majority of Members (Standing Order 10.2) Senior Officer: General Manager – Infrastructure

Terms of Reference  To discuss and make recommendations to Council on: – Water supply stormwater and wastewater matters – Roading and footpaths – Waterways and natural drainage

3. Frequency of meetings: In 2018 the Council’s three standing committees will be scheduled to meet two-monthly.

Conclusion Council and Committee Terms of Reference were adopted by the Council on 5 December 2016 with subsequent amendments adopted at its meeting held 4 April 2017. This report seeks to provide clarification of the three functions and membership of the Statutory Management Committee, seeks a change of name of the Infrastructure and Special Projects Committee to the Infrastructure Committee, and to reflect the agreed change to meeting frequency of the Council’s three standing committees to two-monthly from 2018.

Discussion Mayor McDouall said he would be further discussing committee workloads with the three chairs to determine whether the Infrastructure Committee could take some of the workload from the Strategy and Finance and the Property and Community Services Committees.

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Cr Baker-Hogan queried what special projects would be reporting to Whanganui District Council Holdings Limited (WDCHL). It was clarified that the Wastewater Treatment Plant Project was not required now and the Wastewater Activity would continue to report to the Infrastructure Committee. The Port Revitalisation Project would now report to Holdings. WDCHL held responsibility for GasNet, Ports (collective of Marine Port and Airport), New Zealand International Commercial Pilot Academy, and other investments that may from time to time occur.

Mayor McDouall assured Cr Baker-Hogan that the Council would be provided opportunity to discuss any future special projects that may come forward.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Reid:

4.1 THAT the Statutory Management Committee’s Terms of Reference be amended to reflect the three functions of the Committee, its membership and quorum requirements as follows:

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4.2 THAT the Infrastructure Committee’s amended Terms of Reference are adopted:

Terms of Reference  To discuss and make recommendations to Council on: – Water supply stormwater and wastewater matters – Roading and footpaths – Waterways and natural drainage

4.3 THAT the frequency of meetings of the Council’s three standing committees (Strategy and Finance, Property and Community Services, and Infrastructure) be amended from six-weekly to two-monthly from 2018. CARRIED ACTION: Governance

5. UCOL / Whanganui District Council / Te Puna Matauranga o Whanganui Collaborative – Update

Heather Cox, Strategic Lead – Education and Youth reports:

Executive summary The purpose of the report is to provide Council with an overview on the purpose and activities of the UCOL / Whanganui District Council (WDC) / Te Puna Matauranga o Whanganui Collaborative Group (the Collaborative Group), and to apprise Council of the Collaborative Group’s intention to reassess its purpose at its meeting on 6 December 2017.

It includes detail on how the Collaborative Group was established.

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Background The UCOL / WDC / Te Puna Matauranga o Whanganui Collaborative Group (the Collaborative Group) was established in 2014 with membership made up of political and executive representatives from each organisation.

In 2016, following the local body election, WDC’s representation was updated to be Mayor Hamish McDouall and Crs Helen Craig and Josh Chandulal-Mackay. Current participating WDC officers are Kym Fell – Chief Executive, Bryan Nicholson – Chief Operating Officer and Heather Cox, Whanganui and Partners Strategic Lead – Education and Youth.

The Collaborative Group was set up in succession to the joint UCOL / WDC Taskforce (the Taskforce) established in 2013, to address the future community requirements for tertiary education in Whanganui, and the viability of UCOL. UCOL (Universal College of Learning) is a government funded institute of technology and polytechnic with campuses in Palmerston North, Whanganui, Wairarapa and Auckland.

The Taskforce’s focus was on four priority areas: 1. Community engagement 2. STEM (science, technology, engineering and mathematics) 3. NEET’s (not in education, employment or training) 4. Arts and Glass

Working parties made up of UCOL and WDC officers plus community advisors were established for each area. Each working party met regularly, before reporting back to the Taskforce with their recommendations to address the issues within that focus area.

Following assessment by the Taskforce, formal recommendations were presented to WDC and UCOL. Responsibility was placed with the appropriate organisation or in some instances, shared across both organisations. There were 19 recommendations that directly affected or involved WDC.

A WDC working party was established to give effect to the recommendations and due to the need to work closely with UCOL, membership was extended to include UCOL. This also fulfilled the recommendation under “community engagement” for planned meetings between UCOL and WDC.

It is in this instance that the Collaborative Group was formed. Te Puna Matauranga o Whanganui, the local Maori education authority was invited to join to ensure the community needs were effectively represented. The group meets every eight weeks.

Progress – key achievements are summarised below:  Establishment of a Whanganui Campus Manager role. Bronwyn Paul has held this position since April 2016.  Campus reconciliation to Taupo Quay, including building refurbishment and the opening of a community space which includes offices and the Edith Collier Community Gallery.

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 100% SWEET – establishment of a project which works in the gap between education and local tertiary and employers, to reduce the number of young people not in education, employment or training.  NZ Glassworks – the purchase and refit (by WDC) of the then Chronicle Glass. Currently owned and operated by WDC with some hot and kiln glass courses delivered by UCOL under their arts and design programmes.  Maori and Pasifika Trades Training initiative – fees-free tertiary places for Maori and Pasifika learners aged between 16 to 40 years old. Enabling more Maori and Pasifika learners to obtain practical qualifications.  Creation and publishing of the Programme Directory of Learning Opportunities in Whanganui (annually).

The Campus Manager reported at the Collaborative Group meeting on 18 October 2017, that there is currently 1,141 students enrolled at the Whanganui campus, more than double the number of students in 2013.

Key Issues The original recommendation from the Taskforce was that WDC and UCOL meet once or twice a year, however with the requirement at the time to collaborate on projects, the meeting frequency was increased and became permanent.

Progress coupled with the shifts in the environment (e.g. organisational changes) suggest that it is time that the purpose and frequency for meeting is revisited.

Overall, members see the value in a high-level meeting at least once per year, with the understanding that at an operations level collaboration is taking place.

Next Steps The Collaborative Group meets again on 6 December 2017. It was agreed by those present at the meeting on 18 October 2017, that the purpose and frequency for meeting will be the focus. The outcome will be reported to Council at the meeting following.

Discussion Mayor McDouall acknowledged the attendance of Bronwyn Paul, Whanganui UCOL Campus Manager, and referred to the increased numbers of students at UCOL Whanganui.

Cr Baker-Hogan referred to the Collaborative Group meeting again in December 2017 to determine the best way forward. Rather than the outcome being reported to Council, Cr Baker-Hogan requested that the Collaborative Group have this discussion and along with the other two partners, go back to their groups to advise the Group’s thinking and get agreement from those bodies. Mayor McDouall undertook to bring back the information for discussion to a Council workshop early in 2018. ACTION: Bryan Nicholson

Cr Vinsen referred to a recent newspaper report advising the number of students at UCOL were the highest ever. Cr Vinsen requested that a report come back to the Council on

Council Meeting 31 October 2017 17 where the growth in students had occurred, where the faculties were and the courses being studied. He particularly sought information on the glass course. Cr Vinsen said the reason the Council was involved in the glass school was to have educational outcomes and he did not believe there had been adequate reporting on educational outcomes associated with the glass school. Mayor McDouall referred this matter to Property and Community Services Committee. ACTION: Bryan Nicholson

In reply to Cr Joblin’s question, Bronwyn Paul said not all 1,141 students were full-time students. The largest percentage base of students (365) were wage or salary earners undertaking professional development to further their careers. A number of students were from secondary schools and dual pathways, keeping them in school but helping them prepare for their future.

Cr Joblin sought a report that outlined what UCOL used to look like in terms of type and number, what it looked like now and what the projection was for the future. Ms Paul advised the type of statistical report she provided to the Collaborative Group could be shared. It was agreed this would be provided to Heather Cox who would distribute to Elected Members. ACTION: Heather Cox

In reply to further questions, Ms Paul said UCOL had undertaken projections on the new Government’s plan to introduce a first year of free tertiary education. As a comparison to 2017, the number of enrolments for 2018 had doubled. The campus had the capacity to cope with an increase in students and a drop in those enrolments was not expected if the Government policy was not implemented in time for the New Year. Students would borrow the money through student loans. The highest percentage of students was in the 40 year- plus age group. The 25 to 40 year-plus age group equated to half the students at Whanganui UCOL. Currently there were 61 international students at Whanganui UCOL and the possible change in Government policy on international students was of concern. Ms Paul said not only did these students add cultural value to the campus but also added huge economic benefit to Whanganui. It was hoped that the Government would relook at its international student policy. Referring to a query on the number of fulltime students requiring accommodation, Ms Paul said this information was not available but through UCOL’s student hardship information, accommodation was a big issue.

Proposed by Mayor McDouall, seconded by Cr Joblin:  That the information is noted.

Cr Baker-Hogan sought an extension to the motion that would ensure the Council received the recommendations from the Collaborative Group for discussion. Mayor McDouall and Cr Joblin agreed to the additional words “and the Council awaits a recommendation from the Council representatives on the Collaborative Group around future engagement with UCOL”.

The motion was put.

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Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

5.1 THAT the information is noted and the Council awaits a recommendation from the Council representatives on the Collaborative Group around future engagement with UCOL. CARRIED ACTION: Bryan Nicholson

6. Government Consultation Update

Justin Walters, Policy Analyst, reports:

Executive summary The purpose of this report is to provide an update on Central Government and other consultations being undertaken which have the potential to impact on Council or the Whanganui District; and for Council to consider the Council submission on the Employment (Pay Equity and Equal Pay) Bill.

Background The purpose of the Government Consultation Update (Ref C1) is to keep the Council informed on opportunities to provide feedback on legislation, discussion documents and other consultations undertaken by Central Government and public organisations that have potential to affect the operation of Council or the wider Whanganui District within the responsibilities of Council.

Key Issues Employment (Pay Equity and Equal Pay) Bill The stated purpose of the Employment (Pay Equity and Equal Pay) Bill is to prevent discrimination, on the basis of gender, in the remuneration and other terms and conditions of employment.

Key aspects of the submission are:  Support for the principles of gender pay equity namely that women and men doing jobs with similar characteristics in different sectors should receive similar remuneration; and  Support for the recommendations of the State Services Commission’s joint working group on pay equity principles which included employer, union and government representatives. Next Steps If the Council resolves to adopt the submission (Ref C2) on the Employment (Pay Equity and Equal Pay) Bill the submission will be forwarded for consideration by the appropriate

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select committee within parliament. If the Council resolves to make any changes to the submission, the amended submission will be approved by the Mayor and Chief Executive based on the resolution of Council. The final submission will then be included at the Council’s next meeting for noting.

References – Agenda Attachments C1 Government Consultation Update – October 2017 C2 Draft Council Submission on the Employment (Pay Equity and Equal Pay) Bill

Cr Taylor joined the meeting at 2.11pm.

Discussion There was agreement with Cr Duncan’s request that the language used in the Council’s submission to the Employment (Pay Equity and Equal Pay) Bill be enhanced. The final sign- off of the submission was delegated to the Mayor and Chief Executive.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Cr Joblin, seconded by Mayor McDouall:

6.1 THAT the Council adopts the Council’s submission on the Employment (Pay Equity and Equal Pay) Bill, subject to minor changes in language delegated to Mayor and Chief Executive.

6.2 THAT the information within the Government Consultation Update – October 2017 is noted. CARRIED ACTION: Justin Walters

Cr Chandulal-Mackay declared an interest in Item 7: Residue of Henry Sarjeant Bequest. 7. Residue of Henry Sarjeant Bequest

Pete Gray, Manager – Libraries and Community, reports:

Introduction The purpose of this report is for Council to make a formal decision to use the funds remaining from the original 1912 Henry Sarjeant bequest to help fund the Sarjeant Gallery Redevelopment.

Background Henry Sarjeant, in his will of 1910, bequeathed his estate to the Council to be held in trust to establish and maintain a Fine Arts Gallery in Whanganui. Following his death in 1912, a substantial part of the bequest was expended on the establishment of the Sarjeant Gallery, which opened in 1919. The remaining funds were invested.

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In February 1982 Council resolved that the income from the Sarjeant Trust be used ‘primarily to fund collection-related costs.’

The residue of the Sarjeant bequest currently comprises three elements:  A 10% share in the building at 179 St Hill Street as established by Council resolution in October 1992, currently valued at $194,000 (a new valuation is being sought);  a sum of $200,000 held in Henry Sarjeant Bequest Capital special fund;  and approximately $204,000 in the Henry Sarjeant Bequest Income special fund, representing the accumulated income from the capital fund and a 10% share of the rental income from 179 St Hill Street.

The total of around $600,000 represents a crucial part of the funding mix for the Gallery redevelopment project. This use of the remaining bequest funds is entirely in line with the terms of the original bequest but requires a positive decision by Council as the trustee of the funds to do so.

Strategic context The Sarjeant Gallery Redevelopment is one of Council’s key projects.

Factors to consider  Financial considerations  The income from the 10% rental share from 179 St Hill Street has provided the Gallery with a small purchase fund in the past. This fund has been allowed to accumulate. The Gallery will in future need to find purchase funds from other sources.  The Harbour Endowment buy-out of the Sarjeant Trust share of 179 St Hill Street will need to be loan funded. It should be noted that the building is well- tenanted at the moment and the rental income should cover the loan repayment costs. Annual net income over the last two financial years has averaged $19,329.  The shares of the building at 179 St Hill Street established in 1992 were: o Sarjeant Trust 10% o Harbour Endowment 50% o City Endowment 40%  In October 1995, Council resolved to sell the City Endowment share to the Harbour Endowment.  Legal compliance Not applicable  Policy implications Not applicable  Risks A gap in the funding of the Sarjeant redevelopment would need to be filled by other fundraising.

Significance In terms of the Significance and Engagement Policy 2014, the recommended decision is not significant.

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Engagement Not applicable.

Assessment of options 1. Sell the Sarjeant Trust share of 179 St Hill Street to the Harbour Endowment, financed by borrowing, and wind up the Sarjeant Trust. 2. Retain the share of building within the Sarjeant Trust for future revenue to support acquisitions and use only the Henry Sarjeant Bequest capital and income funds to support the redevelopment project. This will leave a $200,000 gap in the funding which will need to be fundraised.

Conclusion The proposed use of the remaining Sarjeant Bequest funds complies with the terms of the original bequest. It forms a significant element in the overall fundraising programme for the Gallery redevelopment. Option 1 provides approximately $200,000 more for the redevelopment and rationalises the ownership of 179 St Hill Street within the Harbour Endowment.

Discussion Pete Gray responded to questions. While the trustees of the Sarjeant Gallery Trust had no connection to the Sarjeant Trust, which was the name given to the residue of the original 1912 bequest, they were in favour of this proposal. Mike Fermor, General Manager – Finance, said valuations were undertaken yearly by a registered valuer. Mayor McDouall noted the query on the geo-strength and status of the building and said this would be reported to Council at a future time.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Cr Craig, seconded by Cr Duncan:

7.1 THAT the share of the building at 179 St Hill Street belonging to the Sarjeant Trust is sold to the Harbour Endowment.

7.2 THAT the remaining Sarjeant Trust funds, including the proceeds from the sale of the share of 179 St Hill Street, are applied to the Sarjeant Gallery Redevelopment Project. CARRIED Cr Chandulal-Mackay abstained from voting. ACTION: Leighton Toy

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8. The Sarjeant Gallery Redevelopment – Procurement Plan

Greg Anderson, Director Sarjeant Gallery, reports:

Purpose For Council to make a formal decision to adopt the procurement plan method, proposed by Resource Co-ordination Partnership (RCP), to progress the Sarjeant Gallery Redevelopment.

Summary Whanganui District Council (WDC) commissioned RCP to provide the Council with a comprehensive review, assessment and summary recommendation of the suitable procurement methodologies and forms of contract available to the WDC in the identification, selection and engagement of a Consultant team and Main Contractor for the Sarjeant Gallery Te Whare O Rehua Redevelopment.

RCP recommend:  A three stage Open Registration of Interest (ROI), Selected Request for Tender (RFT) and Negotiation procurement process be adopted for the selection of a Main Contractor.  Engagement of a Main Contractor through a Fully Documented, Guaranteed Maximum Price Tender form of contract.  Continued appointment of the existing Consultant team through a negotiated fee agreement.

RCP believe that the recommended procurement methodology and form of contract provides the most cost certainty in the current market.

Key Issues  Cost certainty is significant because: o Further Central Government funding will not be available to the project. o Additional Lottery Grants Board funding will not be available. o Any cost escalation could require additional fundraising beyond what is already achieved and in progress.  The current project budget includes a $3M contingency.

Next Steps  To adopt the recommended procurement methodology and begin the process in a timely fashion once all other conditions relevant to the commencement of the Redevelopment have been met.

 Legal compliance Not applicable.

 Policy implications The Sarjeant Gallery Te Whare o Rehua Whanganui is a core service as defined in the Local Government Act 2002 s11A(e).

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 Risks Failure to adopt the recommended process may incur delays in retaining a principal contractor, and to the detailed design process leading to cost escalation.

Significance In terms of the Significance and Engagement Policy, the recommended decision is not significant.

Engagement Not applicable.

Assessment of options RCP in their report assessed a number of procurement/contract types. Using a weighting of 1 (weak) to 5 (strong) they reviewed the contract forms against their ability to control each of the three project parameters of Time, Cost and Quality. As a number of other contract types do not allow early cost certainty, which is a high priority driver for this development, the following four contract types were selected for further analysis.

1. Design and Build with Guaranteed Maximum Price (GMP) – Competitive Tender (weighting total 11). 2. Early Contractor Involvement (ECI) with Preliminary and General Costs and Margin Competitive Tender and Open Book Trade Tendering (weighting total 10). 3. Fully Documented Lump Sum Fixed Price with Bill of Quantities – Competitive Tender (weighting total 11). 4. Fully Documented Guaranteed Maximum Price (GMP) – Competitive Tender (weighting total 12).

The detailed analysis can be found on pages 17-18 of the RCP report. (The RCP Procurement document contains commercially sensitive material and has been provided for Councillors perusal in the Councillors’ Lounge)

The option most closely meeting the key requirements of cost certainty, quality and timeliness is Option 4.

Conclusion RCP’s detailed analysis of local and national construction conditions, which are germane to the Sarjeant Gallery Redevelopment Project, were presented and discussed at the Property and Community Services Committee’s meeting held on 28 September 2017.

In order to ensure a smooth and considered procurement process which takes into account: Health and Safety, Cost Certainty, Price and Quality, RCP has provided a recommendation that is in accord with Whanganui District Council and local government procurement policies. RCP’s report delivers a road map into and through the construction phases of the Project, giving Council assurance of a robust process once the decision is made to enter into this part of the Project.

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Discussion Mark Hughes, General Manager – Infrastructure, responded to Cr Vinsen’s request for an explanation of the four procurement/contract options:

 1. Design and Build with Guaranteed Maximum Price (GMP) – responsibility sat with the contractor for the final design which meant it would be difficult for the Council to retain ownership of the quality required for a building of this significance.  2. Early Contractor Involvement (ECI) with Preliminary and General Costs and Margin Competitive Tender and Open Book Trade Tendering – Identify preferred tenderer based on past history and enter into negotiations. This did not however guarantee the Council would get best price.  3. Fully Documented Lump Sum Fixed Price with Bill of Quantities – The basic Standard 3910 2013 method, requiring a considerable amount of contingency, variations allowed, and all risk for construction of the project lay with the Council.  4. Fully Documented Guaranteed Maximum Price (GMP) – All risk lay with the contractor.

Cr Vinsen was concerned with the selection of Option 4 and queried whether it was likely that a tenderer would want to cover their risk resulting in a higher tender price, Mr Hughes said tendering contractors would include an allowance to cover their risk and this amount would be competitive. He said as well as a guarantee of maximum price, this option provided the benefit of a lower overall project cost as opposed to an initial construction contract price.

Cr Vinsen further queried who would benefit if savings were identified within the contract. Mr Hughes said this would depend on what the savings were. The contractor would benefit if the time to complete the project was reduced. If an alternative option was brought to the Council, such as a change in glazing for example, that benefit would come to the Council.

Cr Bennett was concerned about the selection of Option 4 and queried why the Council could not elect to take Option 2 and Option 4 and receive tenders on two different bases. In response, Mr Hughes said the Council had to choose an option to go forward. Option 2 provided a tenderer an idea of the scope of the project and they would tender just on that. In reply to Cr Bennett’s further questions, Mr Hughes referred to the minutes of the Property and Community Services Committee’s meeting held 28 September 2017. At that meeting Resource Co-ordination Partnership (RCP) had explained that the Council had a developed design, not a fully detailed design. Option 4 – Fully Documented Guaranteed Maximum Price, would provide full drawings, technical specifications, technical designs and full documentation. Also at this meeting RCP had explained the two-stage process, open to all possible tenderers to firstly take part in an open Registration of Interest process. These would be evaluated on the attributes, based on their skills and experience with projects such as this. From these evaluations, a reduced list would be compiled and those contractors would be invited to tender.

Cr Young expressed concern at the selection of Option 4. He referred to RCP’s presentation at the Property and Community Services Committee and said he understood a contractor’s

Council Meeting 31 October 2017 25 margin could be 15% or more for a Fully Documented Guaranteed Maximum Price contract. Mr Hughes said that would be very much at the top end and would depend on the quality of the full documentation. If a contractor saw significant gaps or significant areas of doubt in the documentation, that could be the margin. The completeness and quality of the documentation provided for tendering would considerably lower that margin. Mr Hughes noted that while a design team was in place, a Design Manager would need to be appointed to take the current stage of the design and documentation through to a level suitable for going out to tender.

Cr Young said he was still concerned at the selection of Option 4. He said the Council should be aware that it could pay more than what it might do if there was an alternative and considered there was still opportunity to evaluate that process more closely before the Council went to tender. Mr Hughes said if the Council selected a Lump Sum Fixed Price – Option 3 – the contract price would be known, but that would not be the end project cost. Option 4 provided a final contract price unless there were variations made and money was saved. The price tendered for under Option 4 would include an allowance in that price for the contractor’s risk. What that percentage was would be entirely up to the contractor, however, this would be done on a competitive basis.

Cr Cleveland said with high quality documentation and design he queried whether it would not be suitable to go for either Option 3 or Option 4. Mr Hughes said while possible, an advantage with Option 4 was the contractor would price according to build-ability, something the Council could not address. This effectively would bring down the overall price of the tender. This was not the case with Option 3. The contractor would price exactly as the schedule stated and if something was missing this would not be included in the price. Mr Hughes said if the margin or risk was taken out of Option 4, it was usual that the fixed price lump sum left would be lower than it would be with Option 3 because the contractor is given control over build-ability, the programme and how things are done. Mr Hughes agreed with Cr Cleveland that good preparation was vital and the importance of this could not be underestimated. It was imperative that a high quality design manager was appointed to the project to ensure there were fully co-ordinated documentation, designs and specifications between architects and engineers and between the engineers themselves. Mr Hughes said he would expect a design manager to be appointed from outside the Council and RCP would prepare a proposal for undertaking this.

Cr Anderson queried insurance for the project. Mr Hughes explained there would be a number of insurances for this type of contract. Indemnity insurance would be carried by the architects and engineering consultants. The contractor would have contract works insurance as well as public liability and the Council would either have a further insurance or bond to ensure there was sufficient money left to complete the works with another contractor. Cr Anderson queried the reliability of the estimated cost. Mr Hughes said this could vary up or down and was one reason to appoint a good design manager working with quantity surveyors to ensure the design did not get out of control and was retained within the initial concept and initial developed design.

Cr Joblin queried the fit of this project in terms of Council management and who would be appointed to the Project Control Management Group. Mr Hughes said this was a Council

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project and while not in his portfolio, he would offer assistance and advice to a team that would be undertaking the project. Currently under direction of the Sarjeant Gallery Director, Greg Anderson, he was providing assistance. Referring to the Project Control Management Group, Kym Fell, Chief Executive, said a direction from Council was sought and from there an appropriate Control Group and team would be established.

Mayor McDouall referred to the recommendations included in the report and said Cr Baker-Hogan had provided a written amendment to Recommendation 8.2, seconded by Cr Bennett:

 That a Project Control Management Group is established comprising Cr Graeme Young and Cr Kate Joblin and representatives of appropriate stakeholders.

Mayor McDouall proposed Recommendations 8.1 and 8.3 of the report to Council, seconded by Cr Joblin.

Cr Craig noted the original paper had indicated that appointments would be made at the next stage of the process rather than at this meeting. She considered that more appropriate as this would enable time for discussion. Cr Baker-Hogan said she believed it important that the Council made this decision rather than this being reported back to the Council at its 6 December 2017 meeting. Cr Baker-Hogan said Cr Young had vast experience in the engineering industry and Cr Joblin was a chartered accountant. She believed this a good combination. Cr Duncan queried whether Elected Members’ appointments to this group needed to be restricted at two. There were Elected Members with experience and exposure to big contracts and control of large projects who could ask the right questions and add value. Mayor McDouall said the Group’s Terms of Reference could reflect that the Project Control Management Group co-opted other Elected Members if determined appropriate. Cr Bennett said as matters progressed the Project Control Management Group may well want to add other people. Mayor McDouall agreed and said membership of the Group could be fluid and amended as required. He advised he would put the three motions on the table and at the Council’s December 2017 meeting, if considered other appointees were appropriate, a further motion could be proposed at that point.

The three motions were put together.

Significance of decision – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

8.1 THAT the process recommended by Resource Co-ordination Partnership – a three stage Open Registration of Interest (ROI), Selected Request for Tender (RFT) and Negotiation procurement process be adopted for the selection of a Main Contractor; engagement of a Main Contractor through a Fully Documented, Guaranteed Maximum Price Tender form of contract; and continued appointment of the existing Consultant team through a

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negotiated fee agreement – is adopted for the procurement of the Sarjeant Gallery Redevelopment.

8.3 THAT the Terms of Reference of the Project Control Group are reported to the Council at its meeting to be held 6 December 2017.

Proposed by Cr Baker-Hogan, seconded by Cr Bennett:

8.2 THAT a Project Control Management Group is established comprising Cr Graeme Young and Cr Kate Joblin and representatives of appropriate stakeholders. CARRIED ACTION: Greg Anderson

9. Actions Arising From Previous Minutes

No Item Resolution Action % Completed 1 Council meeting THAT the Council retain the First Past Noeline Moosman 100 6 September 2017 the Post electoral system for the next 2. Voting System triennial election to be held Saturday, for the 2019 12 October 2019, with the decision Triennial Local being publicly notified by 19 Body Elections September 2017, and to hold an electoral system poll in conjunction with the 2019 triennial elections on the electoral system to be used for the 2022 and 2025 triennial election.

2 Council meeting THAT the Council approves Mayor Karyn Turner 100 3 October 2017 McDouall’s appointments to: 2. Council  Whanganui District Council Appointments Tenders Board – Cr Graeme Young (replacing Cr David Bennett)  Whanganui River Enhancement Charitable Trust – Mayor McDouall  Manawatu – Wanganui Disaster Relief Trust – Cr Jenny Duncan (replacing Mayor Hamish McDouall). 3 3. Government THAT the Council adopts the Council’s Justin Walters 100 Consultation submission to the Remuneration Update Authority’s long term changes for local government remuneration. 4 5. Sister Cities THAT the Sister Cities Sub-Committee Bryan Nicholson 40 Update Chair is Mayor McDouall, with Cr Hadleigh Reid, and appointed members Noel Irving, Bryan Nicholson, Malcolm Hunt, and a representative of Rotary Whanganui. THAT the Sister Cities Sub-Committee bring a strategy back to the Council by December 2017.

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5 Whanganui District THAT the following resolutions of the Rowan McGregor 100 Councils’ Forestry Whanganui District Councils’ Forestry Joint Committee Joint Committee’s meeting held on 18 Report September 2017 are endorsed: Item 3: Annual Financial Report for year ended 30 June 2017  THAT the Whanganui District Councils’ Forestry Joint Committee’s Annual Report for year ended 30 June 2017 is adopted. Item 4: Annual Operating Report for year ended 30 June 2017  THAT the Annual Operating Report for the year ended 30 June 2017 is adopted. Item 5: Budget and Operating Issues for 2017/18  THAT the proposed budget for July 2017 to February 2018 is approved.

Policy on Determining Significance – In terms of the Significance and Engagement Policy 2014, the decision is not significant.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Bennett:

9.1 THAT the information is noted. CARRIED

The meeting adjourned at 2.58pm. The meeting resumed at 3.11pm.

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Minutes of Committees for Adoption / Receipt

Audit and Risk Committee Meeting – 28 August 2017 Mayor McDouall presented the minutes of the Audit and Risk Committee’s meeting held on 28 August 2017.

Council’s Resolution Proposed by Cr Duncan, seconded by Cr Bennett:

THAT excluding Item 11: Insurance Update, Item 12: New Zealand Masters Games Update, Item 13: Waste Water Treatment Plan Risk Register Update and Item 14: Actions Arising from Previous Minutes (Confidential), the minutes of the Audit and Risk Committee meeting held on 28 August 2017 are received, and the recommendations and reports contained therein, are adopted. CARRIED

Strategy and Finance Committee – 26 September 2017 Cr Kate Joblin, Chair, presented the minutes of the Strategy and Finance Committee’s meeting held on 26 September 2017.

Item 6: Proposed Parking Management Plan and Bylaw 2017 – Cr Vinsen expressed concern that the Committee had adopted the Proposed Parking Management Plan 2017 and the Proposed Parking Bylaw 2017 and this was already out for consultation. He said the process of further discussion at a Council meeting where possible amendments to the Committee’s resolutions could be raised was denied and this needed to be reviewed. Cr Vinsen said seven options had been tabled for discussion at the Committee’s meeting and adopted. He had intended to move an additional motion that ‘submissions for a first hour free or a free parking policy in the Central Business District are invited in the public consultation process’. Cr Vinsen referred to the recent Proposed Traffic and Speed Limits Bylaw 2017 consultation and said Mainstreet Whanganui had submitted to this Bylaw on free parking or limited time free parking within the Central Business District, however due to this not being included in the public consultation documents it was unable to be considered in deliberations.

Mayor McDouall said Cr Vinsen had raised this matter at the Strategy and Finance Committee’s meeting and the Committee was assured the terms included in the Proposed Parking Management Plan and Parking Bylaw 2017 consultation document were broad enough to enable such a submission to be accepted.

Cr Joblin noted that the Strategy and Finance Committee had delegated authority to adopt draft policies and bylaws for consultation and this had been done for nimbleness and expediency. Cr Vinsen disagreed that the Committee should have a delegation that enabled it to adopt draft policies and bylaws for consultation. The Committee could approve but he did not believe the process was complete until ratified by the Council.

Cr Craig said the policy currently out for consultation was on specific issues, not Central Business District free parking, or time limited parking. There was considerable more work to be done on this and consultation to be undertaken before this came to the Council. Cr Craig however

Council Meeting 31 October 2017 30 supported Cr Vinsen’s comments that the Committee’s delegation to adopt draft policies and bylaws for consultation needed to be reviewed. Cr Taylor said to assume the Council could get to an appropriate level for consultation through the Committee level was dangerous. There was opportunity for views around the Council table to change significantly and the Council may not want to adopt a policy, bylaw or strategy for consultation that had passed through at Committee level. He supported a review of this delegation. Cr Cleveland agreed with Cr Joblin that the delegation had been provided for nimbleness and expediency but considered there was value in the comments made and a review was timely.

Mayor McDouall said this could not be changed at this meeting and requested that the rationale behind the delegation to the Strategy and Finance Committee be brought back to the Council’s December 2017 meeting. ACTION: Stephanie Rose

Council’s Resolution Proposed by Cr Joblin, seconded by Cr Cleveland:

THAT excluding Item 13: Finance Activity Report (continued), Item 14: Financial Commitments (Confidential) and Item 15: Actions Arising from Previous Minutes (Confidential), the minutes of the Strategy and Finance Committee meeting held on 26 September 2017 are received, and the recommendations and reports contained therein are adopted. CARRIED Cr Vinsen abstained from voting.

Strategy and Finance Committee – 26 October 2017 Cr Kate Joblin, Chair, tabled the minutes of the Strategy and Finance Committee’s meeting held on 26 October 2017.

Council’s Resolution Proposed by Cr Joblin, seconded by Cr Bennett:

THAT excluding Item 12: Rates Remission, Item 13: Financial Commitments – Confidential, Item 14: Debtors’ Report and Item 15: Actions Arising from Previous Minutes (Confidential), the minutes of the Strategy and Finance Committee meeting held on 26 October 2017 are received, and the recommendations and reports contained therein are adopted. CARRIED

Youth Committee – 25 September 2017 Co-Chairs Yth Crs Helena Hazelhurst and Rhea Colaabavala tabled the minutes of the Youth Committee’s meeting held 25 September 2017.

An update on Youth Committee activities was provided. In summary:  An informative presentation on the activities Whanganui & Partners were implementing to provide education outcomes was received Heather Cox, Whanganui & Partners. The Committee found this presentation beneficial and would like a follow-up presentation

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about the 100% SWEET Programme to learn more about how to support Whanganui youth who currently were not in work training or employment. The Committee was also invited to represent the aspirations of young people at a future education champion network.  The Co-Chairs attended the 2017 Trustpower Community Awards on 26 October 2017. This had been an inspiring evening and good to see what youth had been up to in the community. Previous Co-Chairs, Yth Crs Jack Southee and Macy Duxfield had been nominated for the Youth Community Spirit Award, with Yth Cr Duxfield winning this award and choosing to donate $250.00 to Sustainable Whanganui.  Submissions had been made to the Council’s Proposed Gambling Venues Policy and the Proposed Local Easter Sunday Trading Policy.  Members of the Youth Hub Working Party, with the Youth Committee Administrator, Claudia Perkins, and Cr Josh Chandulal-Mackay, visited Palmerston North’s Youth Space. This was a successful site visit with many questions asked to determine logistics and how such a space was initially implemented. A visit would also be made to Horowhenua’s Youth Hub. The Working Party was almost ready to put together a well-researched proposal to present to Council on the possibility of creating a Youth Hub in Whanganui.  Planning for the flagship event, the Summer Musical Festival ‘Vibe’, was well underway. Posters for this event were tabled. Well-known band ‘Nomad’ has been confirmed as the headline act. A meeting has been held with local musicians who would also be performing at the festival. The Working Party had distributed Summer Festival flyers at the recent Whanganui Multi-Cultural Festival. The Festival will be held on 9 December 2017 at Cooks Gardens. Tickets will be on sale early November 2017.  Youth Committee logo. In the past it had been voted to keep the current logo, however while exploring different advertising options, a professional company working on growing brands and awareness around a brand, suggested the logo be improved. This has been debated and a change supported. The current logo does not communicate the Youth Committee’s purpose or who they are. A logo is important given that it is what people remember about an organisation. As this topic would be further discussed and decided upon at the Youth Committee’s next meeting, Councillors were asked for their thoughts on the logo and whether a change was worth considering.

Discussion Cr Craig referred to the Youth Committee’s reflective report on the 2017 ‘In Our Hands’ Youth Art Exhibition, that noted that if the event was to be held again, someone with real experience in this area was needed to guide the working party. Cr Craig said this perhaps was the case with a number of things the Youth Committee did. She suggested the Youth Committee look to the community and who was already doing these sorts of things who could assist and walk beside the Youth Committee. Referring to the art exhibition, Cr Craig said the Rayner brothers and Sarah Williams’ Space Studio and Gallery ran regular exhibitions and suggested an approach be made to these people for assistance for future art exhibitions.

Cr Joblin supported the Youth Committee further exploring the 100% SWEET Programme. She believed this important and something the Youth Committee could add value to. Referring to the suggestion of redesigning the Committee’s logo, Cr Joblin said from her observation, often most arguments in an organisation were about what a brand or logo looked like. She suggested the Committee made sure it was something it really wanted to

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do and it really saw value added to a marking. If it was agreed to proceed, Cr Joblin suggested this be made into a competition so the Committee’s spend would be negligible.

Council’s Resolution Proposed by Cr Chandulal-Mackay, seconded by Cr Anderson: THAT the minutes of the Youth Committee meeting held on 25 September 2017 are received, and the recommendations and reports contained therein are adopted. CARRIED

Property and Community Services Committee – 28 September 2017 Cr Josh Chandulal-Mackay, Deputy Chair, presented the minutes of the Property and Community Services Committee’s meeting held on 28 September 2017.

Council’s Resolution Proposed by Cr Chandulal-Mackay, seconded by Cr Duncan:

THAT excluding Item 5: Sarjeant Gallery Redevelopment – Procurement Plan (continued) and Item 8: Draft Property Portfolio Investment Strategy, the minutes of the Property and Community Services Committee meeting held on 28 September 2017 are received, and the recommendations and reports contained therein are adopted. CARRIED

Public Excluded Items – Motion to Exclude the Public

Cr Baker-Hogan requested that Item 11: Sarjeant Gallery Redevelopment Project included in the motion to exclude the public be taken separately.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Chandulal-Mackay:

THAT excluding Item 11: Sarjeant Gallery Redevelopment Project, the public be excluded from the following parts of the proceedings of this meeting:

Reason for Ground(s) under General passing this section 48(1) for the subject of Meeting Item No resolution in passing of this each matter to relation to each resolution be considered matter Council Meeting 10. Whanganui District Council Commercial. Good reason to Section 48(1)(a) 31 October 2017 Holdings Limited Report withhold exists under section 7. 12. Wastewater Treatment Plant Commercial. Good reason to Section 48(1)(a) Settlement Information – withhold exists Ombudsman's Recommendation under section 7. 13. Trade Waste Update Commercial. Good reason to Section 48(1)(a) withhold exists under section 7.

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14. Actions Arising from Commercial. Good reason to Section 48(1)(a) Previous Minutes – Confidential withhold exists under section7. 15. Chief Executive Report Commercial Good reason to Section 48(1)(a) and staff withhold exists matters. under section 7.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 LGOIMA and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as follows:

Council Meeting 10. Whanganui District Council Commercial. Section 7(2)(b)(ii) and 31 October 2017 Holdings Limited Report Section 7(2)(i) 12. Wastewater Treatment Plant Commercial. Section 7 (2)(c)(i) and Settlement Information – (ii) Ombudsman's Recommendation Section 7 (2)(i)

13. Trade Waste Update Commercial. Section 7 (2)(i)

14. Actions Arising from Commercial. Section 7(2)(b)(ii) and Previous Minutes – Confidential Section 7(2)(i)

15. Chief Executive’s Protection of privacy of natural Section 7(2)(a), Report persons and commercial and Section 7(2)(b)(ii) and industrial negotiations. Section 7(2)(i)

THAT Annette Main, Interim Chair, and Harvey Green, Director, Whanganui District Council Holdings Limited remain in the meeting after the public has been excluded to present Item 10: Whanganui District Council Holdings Limited Report. CARRIED

Discussion Cr Baker-Hogan spoke against excluding the public from Item 11: Sarjeant Gallery Redevelopment Project. She said the recommendations and information contained within the report were already in the public domain and of public interest. Cr Baker-Hogan said her request was not an indication of whether or not she supported the Sarjeant Gallery redevelopment project. Her reason for this item not being taken in confidence was not specifically about this project. The Council was about to make an important and critical decision and she felt exactly the same of any other project, including the roofing of the velodrome and the wastewater treatment plant, that these decisions should be made in public. Cr Baker-Hogan wanted the opportunity to have a vote on this motion taken separately.

Mayor McDouall said a legal opinion had been sought from Rob Goldsbury, Legal Counsel, and was available for Councillors’ perusal. The recommendations to Council were not the only reason for moving into confidence for discussion. There was a need to respect the privacy of personal commitments from private donors who had donated significant money to the fundraising project.

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Cr Craig agreed with Cr Baker-Hogan that the community would want to know the details of the decisions being made at this meeting. She also did not see any information in the report that was not already in the public domain. In reply to her question, Mayor McDouall said some information to be discussed needed to remain confidential. Mayor McDouall said everything possible would be released following this meeting. There would be a press release following this meeting.

In reply to Cr Vinsen’s question, Mayor McDouall said if the fundraising summary was not confidential it would be appropriate to release to the public advising where the project fundraising was at and the amount still to be to be raised.

Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Chandulal-Mackay:

THAT the public be excluded from the following part of the proceedings of this meeting:

Council Meeting 11. Sarjeant Gallery Commercial. Section 7(2)(h) and 31 October 2017 Redevelopment Project Section 7(2)(i)

THAT Nicola Williams, Chairman of the Sarjeant Gallery Trust remain in the meeting after the public has been excluded to present Item 11: Sarjeant Gallery Redevelopment Project. CARRIED Cr Baker-Hogan recorded her vote against.

The meeting adjourned at 3.47pm. The meeting resumed at 3.53pm.

Council Meeting 31 October 2017 39

Motion to Reopen the Meeting to the Public Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Joblin:

THAT the meeting be reopened to the public to enable public notification of additional members of the public to remain in the meeting for confidential Item 11: Sarjeant Gallery Redevelopment Project. CARRIED

Council’s Resolution Proposed by Cr Craig, seconded by Cr Joblin:

THAT Jenni Giblin (Director, Giblin Group), Dee Wilson (Media Advisor to Sarjeant Gallery Trust) and Annette Main (Sarjeant Gallery Trust) remain in the meeting after the public has been excluded for Item 11: Sarjeant Gallery Redevelopment Project to present information and respond to Elected Members’ questions on this item. CARRIED

Motion to Exclude the Public Council’s Resolution Proposed by Cr Joblin, seconded by Cr Craig:

THAT the meeting move back into confidence for Item 11: Sarjeant Gallery Redevelopment Project, Item 12: Wastewater Treatment Plant Settlement Information – Ombudsman's Recommendation, Item 13: Trade Waste Update, Item 14: Actions Arising from Previous Minutes, and Item 15: Chief Executive Report. CARRIED

Council Meeting 31 October 2017 61

Motion to Reopen the Meeting to the Public Council’s Resolution Proposed by Mayor McDouall, seconded by Cr Chandulal-Mackay:

THAT the meeting be reopened to the public and the preamble, discussion and resolutions associated with Item 10 – Whanganui District Council Holdings Limited Report, Item 11 – Sarjeant Gallery Redevelopment Project, Item 12 – Wastewater Treatment Plant Settlement Information – Ombudsman's Recommendation, Item 13 – Trade Waste Update, Item 14 – Actions Arising from Previous Minutes, and Item 15 – Chief Executive Report remain confidential until all parties have either accepted the terms of the proposals or agreed to cease negotiations. The Mayor or Chief Executive may then release press reports on the matter. CARRIED

The meeting closed at 6.17pm.

* * *

Item 11 – Sarjeant Gallery Redevelopment Project Resolutions

11.7 THAT the resolutions are released to the public after the meeting moves out of confidence.

11.1 THAT Council underwrites any residual fundraising shortfall that might remain for the Sarjeant Gallery Redevelopment Project.

11.2 THAT Council will financially underwrite the potential risk of cost escalations occurring during the Project’s construction period as there can be no expectation of returning to Central Government for any further funds.

11.3 THAT Council agrees to proceed with the Sarjeant Gallery Redevelopment project in full as described in the Regional Cultural and Heritage Fund application, and Regional Museums Policy applications, without delay, and without any expectation of any party including the Sarjeant Gallery Trust, and the Whanganui District Council seeking further funding from the Regional Cultural and Heritage Fund.

11.4 THAT Council notes that the recommended procurement plan is to engage a main contractor through a fully documented, guaranteed maximum price tender form contract, which ensures that there won’t be any cost escalations during the construction period.

11.5 THAT the Sarjeant Gallery Trust continue its public fundraising efforts.

11.6 a. THAT Council officers Greg Anderson (Director Sarjeant Gallery) and Pete Gray (Manager Libraries and Community) be thanked for their fundraising efforts and project support. b. THAT Nicola Williams (Chairman Sarjeant Gallery Trust) be thanked for her exceptional and outstanding personal effort and commitment to Whanganui for so successfully spearheading the fundraising efforts for the Redevelopment Project.

CERTIFICATE OF CONFIRMATION OF MINUTES

The minutes of the meeting of the Whanganui District Council held on 31 October 2017 were confirmed as a true and correct record of that meeting at a meeting of the Whanganui District Council held on 6 December 2017.

……………………………………………………….

Hamish McDouall Mayor of Whanganui District

………………………………………………………. Date