Agenda of Strategy and Operations Committee Meeting

Strategy and Operations Committee Meeting Agenda

20 August 2020

8.1 Finance Report as at 30 June 2020

Author: Anelise Horn, Manager Financial Accounting

Authoriser: Mark de Haast, Group Manager Corporate Services

Purpose of Report

1 This report sets out Kāpiti Coast District Council’s (Council) financial performance and position for the year ended 30 June 2020 with explanations of key results and variances.

Delegation

2 The Strategy and Operations Committee (Committee) has delegated authority to consider this report under the 2019-2022 Triennium Governance Structure and Delegations in Section B.2. - Monitoring and decision-making on all broader financial management matters. Key responsibilities will include financial management, including risk mitigation

Background

3 The report sets out the Council’s financial information across eleven broad areas:

Part A: Statement of Comprehensive Revenue and Expense

Part B: Statement of Financial Position

Part C: Statement of Cash Flows

Part D: Summary of Rates Funding

Part E: Water Account Statement

Part F: Capital Spending Programme

Part G: Outstanding Rates Debt

Part H: Treasury Management

Part I: Asset Revaluation

Part J: Phase 1 – Sustained Community Support Costs (New)

Part K: Requests for bad debts write-off (New)

Part A: Statement of Comprehensive Revenue and Expense

4 The statement of comprehensive revenue and expense covers all of the Council's revenue and expenditure for the reporting period.

5 The net position of revenue less expenditure provides the operating surplus or deficit for the reporting period.

6 Table 1 below outlines the Council’s actual revenue and expenses for the year ended 30 June 2020, including the full year budget for 2019/20.

Financial Performance Summary

7 Due to exceptional (one-off) revenue and expenditure items in the fourth quarter, the Council’s operating surplus is $19.2 million favourable to budget for the year ended 30 June 2020. The Council’s total revenue is $21.6 million favourable to budget, mainly due to $20.5 million of assets vested to the Council. Total operating expenditure is $2.5 million unfavourable to budget, mainly due to a $3 million impairment loss, (i.e. the book value/carrying amount of the asset was reduced to nil), with regards to the Otaihanga landfill after-care asset.

8 Typically, Councils’ across New Zealand use financial derivatives to “fix” their interest rates rather than relying on floating interest rates, to provide more certainty over cash flows and to provide protection against adverse movements in market rates.

9 The unrealised loss on revaluation of financial derivatives of approximately $7 million reflects continued softening of market interest rates since 30 June 2019, compared to the Council’s committed financial derivatives. This revaluation loss needs to be shown in the Council’s financial statements but it is not a real loss, as there is no intention to prematurely terminate these financial derivative commitments.

Revenue Commentary

10 Fees and charges

Description

Fees and charges includes all non-rates revenue earned by the Council for providing services to the community. This also includes fines and penalties charged.

Full Year Variance:

$880,000 unfavourable to budget mainly due to:

· Resource and building consents fees were $536,000 unfavourable to budget due to less applications received and less inspections undertaken than planned due to COVID-19.

· We estimate that approximately $367,000 of fees and charges was “lost” due to Council facility closures from the 23 March 2020 to the 13 May 2020, due to COVID-19.

11 Grants and subsidies

Description

Includes grants received by the Council for operating and capital spending. The majority of grants revenue is received from the New Zealand Transport Agency (NZTA) for their share of our roading maintenance and capital investment costs.

Full Year Variance:

$726,000 favourable to budget mainly due to additional NZTA funding received for the completion of the Mazengarb & Tasman road shared path projects (Stride N Ride) & for advancing Ratanui roundabout.

Additional subsidies were also received from NZTA for Kāpiti Road/scheme assessments (now eligible for subsidy).

12 Development and financial contributions

Description

Development contributions are levied under the Local Government Act 2002 and cover all key activities except reserves and are also levied on developers at the time of subdivision. Developers’ contributions to the Council works are treated as revenue.

Financial contributions are levied under the Resource Management Act and cover reserves contributions levied on developers at the time of subdivision.

Full Year Variance:

$1.5 million favourable to budget mainly due to the following major subdivisions or developments:

· Manu Heights Stage 1 developments $890,000

· Huia street subdivision $830,000

· Hudson Place developments $310,000

· Kohe-Kohe developments $521,000

· Other subdivisions or developments totalling $1 million

Offsetting this is a credit of $300,000 following Council approval to accept the development and provision of a pocket park in the Ngarara Waimeha Development in lieu of reserve contributions as originally planned.

13 Other operating revenue

Description

Includes assets vested to the Council, local government petrol tax, donations and/or sponsorship and realised gains on asset disposals. Note also, that the value of land vested to the Council as part of subdivision activity in any year is recorded as revenue in that year.

Full Year Variance:

$20.5 million favourable to budget mainly due to unbudgeted vested assets of $14 million pertaining to the local link roads as a result of the new M2PP Expressway project, and a further $6.5 million from subdivisions upon Council issuing “s224 certificates”.

Old State Highway 1 revocation from Mackays Crossing to Peka Peka is budgeted in 2021/22, and old State Highway 1 revocation from Peka Peka to Ōtaki is budgeted in 2024/25. Additional local link roads will also be vested to the Council with the PP2O Expressway project.

Local roads become Council’s responsibility after the defects liability period. A defects liability period is a set period of time after a construction project has been completed during which a contractor has the right to return to the site to remedy defects. A typical defects liability period lasts for 12 months.

Due to the complexity of the timing and the requirements of the Expressway projects, the local link roads were not included in the original assets schedules.

14 Interest income

Description	Interest income represents the Council’s earnings on its term deposits, overnight cash deposits and borrower notes held by the Local Government Funding Agency.
Full Year Variance:	$224,000 unfavourable to budget mainly due to market interest rates being lower than planned.

Expenditure performance - commentary

15 Personnel, maintenance and operations

Description

Includes personnel expenses, maintenance, business-as-usual Council operating expenses, internal recoveries, grants and other sundry expenses.

Full Year Variance:

$2.9 million unfavourable to budget mainly due to a $3 million impairment loss of the Otaihanga Landfill after-care asset.

1. In June 2020, as part of the 2019/20 Annual Report preparation, Officers’ reviewed the current useful life and future benefit/service potential of the Otaihanga landfill after-care asset.

Given the capping of the landfill has progressed faster than expected, the final closure date of the landfill has been brought forward by four years from the resource consent closure date of June 2026 to June 2022.

While the landfill will be in-use for another 2 years, it has been determined that the future income generated from accepting clean-fill is negligible. As a result, the full value of this asset was written off (i.e. reduced to nil) and recognised as a one-off expense in accordance with the relevant accounting and financial reporting standards.

2. Personnel costs were $994,000 unfavourable to budget at year end, however, this overspend was entirely offset by an underspend of $1 million across Maintenance and Operations for the year.

3. Personnel overspends was mainly due to additional unbudgeted resources, (including recruitment costs), required for the Asset Management Improvement Programme and a high annual leave liability as at 30 June 2020 due to COVID-19 preventing staff from taking annual leave.

4. Underspends in Maintenance & Operations was mainly due to the following:

· Refunds totalling $555,000 for incorrect premium allocations within Council’s insurance syndicate for the past two financial years.

· An underspend of $267,000 for District Plan review appeal costs. Hearing costs for variation 2 were deferred and will now occur in 2020/21. The Environment Court may seek further information relating to the remaining outstanding consent order, which the costs would now occur in 2020/21.

· $153,000 largely in the Council ceremonies/functions that did not happen, and other governance related costs that did not incur due to COVID-19.

16 Depreciation and amortisation

Description

Depreciation and amortisation reflects the use of our property, plant and equipment and intangible assets currently owned by the Council.

Full Year Variance:

$199,000 unfavourable to budget mainly due to the following:

· Unbudgeted link roads required by the M2PP Expressway were vested to the Council. Due to the complexity of the timing and the requirements of the Expressway projects, the local link roads were not included in the original assets schedules.

· The final revaluation of roading assets as at 30 June 2019 was higher than planned, resulting in higher depreciation.

17 Finance expense

Description	Interest is incurred on borrowings.
Full Year Variance:	$636,000 favourable to budget mainly because the Council had less net debt as at 1 July 2020 than planned and the Council’s weighted average cost of borrowings is lower than planned.

18 Unrealised gain / (loss) on revaluation of derivatives

Description:	The Council recognises its interest rate swaps at fair value on a monthly basis.The change in fair value between 30 June 2019 and 30 June 2020 is treated as either an unrealised gain (fair value has decreased) or an unrealised loss (fair value has increased).
Full Year Variance:	$7 million unfavourable to budget mainly due to softening of market interest rates since 1 July 2019 compared to the Council’s committed financial derivatives. This evaluation needs to be shown in our financial statements but it is not a real loss as there is no intention to prematurely terminate these commitments.

Part B: Statement of Financial Position

19 The Council’s financial position as at 30 June 2020 and the full year budget are set out in Table 2, followed by a summary of the key variances.

Full year Asset Summary

20 The Council’s Total Assets are $81.6 million unfavourable to budget. This is mainly due to Property, plant and equipment being $88.3 million unfavourable. This variance was caused by:

· Council’s actual revaluation movement for the year was a $19.03 million reduction in asset value, compared to a budgeted revaluation uplift of $72.89 million (see Part I: Asset Revaluation); and

· lower capital spending of $11.5 million for the 2019/20 year (see part F: Capital spending programme).

Full year Liability Summary

21 The Council’s Total Liabilities are $6.8 million unfavourable to budget. This is mainly due to:

· the Council’s committed derivative financial instruments being valued $15.6 million unfavourable at year end due to the significant softening of interest rates since 1 July 2019, and;

· Trade and other payables being $8.6 million favourable against budget as a result of Council’s COVID-19 support package that was announced during April 2020. The support package included the rapid payment of supplier invoices within seven to ten working days, (compared to Council’s normal payment terms of the 20^th of the month following the date on the invoice).

Full year Equity Summary

22 The Council’s Total Equity is $88.5 million unfavourable to budget. This is due to the revaluation reserve being $83.3 million unfavourable as a direct result of the asset revaluation being significantly lower than expected (see Part I: Asset Revaluation)

Part C: Statement of Cash Flows

23 The Council’s cash flow for the year ended 30 June 2020 and the full year budget are set out in Table 3, followed by a summary of key variances.

Full year Summary

24 The Council cash on hand as at 30 June 2020 was $5.94 million. This is $5.7 million more cash than planned, and it is mainly due to:

· Receipt of NZTA grant of $650,000 during the last week of June;

· $3.3 million was kept on call for year-end supplier payments falling due in early July 2020.

25 Payments to employees and suppliers are $9.7 million unfavourable from budget. This increase in the outflow of operating cash demonstrates the Council’s commitment in helping the district withstand the economic and social challenges from COVID-19 by paying our suppliers within seven to ten working days, compared to our previous payment terms of the 20^th of the month following the date on the invoice

26 The other material changes to Council’s cash flow management for the year ending 30 June 2020 were:

· $45 million of long term debt matured during the year ($20 million during September 2019 and $25 million during April 2020)

· $45 million of new debt was issued during the year. $40 million was placed on term deposit towards prefunding the April 2020, October 2020, May 2021 and October 2021 debt maturities and $5 million was used for the current year capital works programme.

· $50 million of term deposits matured ($45 million was prefunded for the repayment of the September 2019 and April 2020 debt maturities and $5 million of surplus cash that was placed on fixed deposit for final payment of the 2018/19 capital works programme).

· $23.3 million was paid towards the Council’s capital expenditure programme.

Part D: Summary of Rates Funding

27 The summary of rates funding covers the Council’s revenue and expenses that are funded by rates. It is a sub-set of the statement of comprehensive revenue and expense on page 2 which covers all of the Council’s operating revenue and expenses.

28 Table 4 below details the actual rates funding deficit for the year ending 30 June 2020:

29 The full year actual rates deficit of $3.7 million is mainly due to:

· $3 million unbudgeted impairment loss of the Otaihanga landfill after-care asset.

· Fees and charges were $880,000 unfavourable to budget due to COVID-19, as discussed above.

Part E: Water Account Statement

31 Since water meters were introduced in 2014, the total operational cost of supplying potable water, which includes reticulation and treatment, and the rates we have received, has been tracked as part of the water account. The water account is a closed account. This means that any surpluses will be held within the account to fund future costs of providing water. Conversely, any deficits need to be recovered from future water charges.

32 Water usage has taken a number of years to normalise since districtwide water meter charging for all residential properties commenced from July 2014. Therefore, the Council has carefully monitored usage trends to best determine what charges are necessary to fully recover the total costs of providing a treated water supply over a rolling 5-year period.

33 The Council’s water revenue is $30,000 ahead of budget for the full year ended 30 June 2020.

34 The table below outlines the water account position. As shown, we achieved $0.6 million annual surplus in 2019/20 which brings the overall water account balance from $0.5 million deficit in 2018/19 to $0.1 million surplus at the end of this financial year. This surplus position is three years earlier than originally expected.

Part F: Capital Spending Programme

35 A summary of our capital spending programme for 2019/20 is shown by activity against the full year budget in Table 6 below.

36 For the twelve months to 30 June 2020, the Council has completed $23.5 million of capital works to either renew or upgrade the Council’s assets. This is $11.9 million less than originally planned. The proposed carry-forwards from 2019/20 into 2020/21 and future years is $11.5 million. More information on carry-forwards is outlined in the next table.

37 $3.3 million carry-forwards from 2019/20 to 2020/21, and $9 million carry-forwards from 2019/20 to future years was reported in Quarter 3. This is now revised down to $2.8 million for 2020/21 and $8.7 million for future years as a result of more spending in 2019/20 than planned.

38 In the Access and Transport activity, the underspending is due to the spending actually occurring under the Economic development activity. This spending relates to work on Kāpiti Road for the completion of the shared path and widening of the road which has received additional funding from NZTA.

39 In the Regulatory activity, the additional spending relates to renewal of the animal management shelter to bring it up to a modern day standard in line with Ministry of Primary Industries guidelines.

40 In the Stormwater activity, the overspending relates to the advancement of critical projects and investing on unbudgeted projects such as Stormwater Inputs for Kapiti Gateway and Town Centre projects.

41 The majority of the underspending in the Water activity is due to the intention to move $6.5 million of the funding for the drinking water safety and resilience project (DWSRP) to future years. This was due to delays in the establishment of the Water Professional Services Panel in 2018/19 to allow for a strategic procurement review. Those delays held back the awarding of the contract for the DWSRP and although the design work is progressing well the construction work is now planned to start in 2020/21.

42 The Council will complete a review of the capital budget during the first quarter of 2020/21 as agreed and this will be presented to the Strategy and Operations Committee for consideration as part of the Quarter 1 2020/21 Finance Report.

43 The Activity Reports 1 January – 30 June 2020 contains more detailed information about the spending variations at the activity level.

44 Proposed carry-forwards from 2019/20 is listed in the table below.

Activity	Project	Amount $ to 20/21	Amount $ to 21/22	Comments
Carryovers requests from 2019/20
Access and Transport	Bridges/Culverts	497,045		Delayed due to awaiting Iwi sign off for resource consent approval. Both the mana whenua report and ecological report are now received.
Access and Transport	SH1 Revocation		421,000	Carried over to align with NZTA revocation delivery plan
Community Facilities and Community Support	Districtwide Access Control System		120,650	Lack of resources to carry out this project
Community Facilities and Community Support	EQP building remediation	23,657		The earthquake remediation costs are significant and cannot be considered in isolation. This is an LTP issue for the Council to consider. This carry-forward fund is being re-purposed to contribute to the Otaki Theatre roof replacement (as part of the earthquake strengthening programme).
Community Facilities and Community Support	Otaki Theatre roof/Otaki Museum	131,207		A more detailed report on the condition of the Theatre is underway following completion of the initial survey. The extent of renewal / remediation will be determined at that point and is expected to be spent in Q1 2020/21. This budget will be needed in its entirety for the Theatre.
Community Facilities and Community Support	Paraparaumu College Sports Hall roof replacement	255,250		Conversation with the College on deferring roof replacement has started. $500k funds originally budgeted in 2020/21 is being moved to 2021/22.
Corporate	Health & Safety	65,561		Unspent Health & Safety funds to carry over for future health & safety initiatives in 2020/21
Corporate	Self-insurance Fund	509,504		0% risk factor accessed for 2019/20 and unspent funds to be carried over.
Recreation and Leisure	CAC – Changing room	48,000		To be completed under temporary closure in 2021
Recreation and Leisure	Mahara Gallery council fund		244,605	To align with trust funded Mahara Gallery funding
Solid Waste	Landfill	124,000		Due to weather delays in the capping exercise. Work to complete the landfill is programmed for 2020/21.
Wastewater Management	Paraparaumu WWTP consent	635,649		Delay due to prolonged engagement process
Wastewater Management	Reticulation Upgrades	146,064		Potential upgrades have been deferred pending the completion of the wastewater management strategy that is currently underway. This strategy will inform investment in the 2021 Long term plan for wastewater.
Water Management	Drinking water safety and resilience program		5,870,296	Delays in the establishment of the Water Professional Services Panel in 2018/19 held back the awarding of the contract for the DWSRP and although the design work is progressing well the construction work is now planned to start in 2020/21.
Water Management	Network Upgrades		1,398,983	The detailed design is now complete after a deferred start to the project pending the completion of the wider strategic review of Otaki and Hautere water supplies.
Water Management	Otaki Upgrades		664,574	Delays in the establishment of the Water Professional Services Panel in 2018/19 held back the awarding of the contract for the DWSRP and although the design work is progressing well the construction work is now planned to start in 2020/21.
Total Carryovers requests from 2019/20		2,453,937	8,720,108

Carryovers requests from 2019/20 (due to Covid-19)
Coastal Management	Beach Accessways	41,314		Project delayed due to COVID-19
Coastal Management	Coastal Renewals	100,000		Project delayed due to COVID-19
Parks and Open Spaces	Mazengarb Reserve	10,000		This is committed spending but delayed due to COVID-19.
Parks and Open Spaces	Paraparaumu /Raumati Playgrounds	85,000		Marere Avenue carried over – work already committed but did not happen in June due to COVID-19.
Parks and Open Spaces	Tasman Lakes	13,322		Work committed.
Recreation and Leisure	CAC - Cylinder Replacement moveable floor	38,000		Delays due to COVID-19 where technicians are unable to travel from the Netherlands.
Recreation and Leisure	CAC - 1 x New Pump, UV Ballast	6,800		Parts sourced overseas
Recreation and Leisure	CAC - Sauna Seat	6,200		Parts sourced overseas - Sauna contractor not available
Recreation and Leisure	CAC - ramp refurbishment	5,000		5 yearly refurbishment due, delayed due to closure of pool
Recreation and Leisure	Maclean Park art installation	25,206		Art installation is planned to be completed by June 2020 but delayed due to COVID19 lockdown. Project management contract is with Mills Albert.
Recreation and Leisure	Waikanae Pool - Hydroslide water treatment	10,000		Water quality in slide does not meet recommended guidelines. This puts public safety at risk. Solution not identified until March resulting in insufficient time to complete.
Recreation and Leisure	Waikanae Pool - Complete planned refurbishment	17,000		Originally planned for May - June but delayed due to COVID-19 lockdown
Recreation and Leisure	Waikanae Pool - Slurry Tank replace	2,500		Originally planned for May - June but delayed due to COVID-19 lockdown
Total Carryovers requests from 2019/20 (due to Covid-19)		360,342	-
Total Carryovers requests from 2019/20		2,796,279	8,720,108

Part G: Outstanding Rates Debt as at 30 June 2020

45 As part of the wider strategy of continuing to reduce the Council’s debt, we need to ensure that everyone is paying their property and water rates.

46 Like a number of other councils around the country, we have been using the services of a local government shared services agency, Debt Management Central (DMC), to assist our team with collecting rates debt owed from previous rating years.

47 This framework for recovery of rates owed from previous rating years is set out in the Local Government (Rating) Act 2002. DMC works within the provisions of section 62 of the Local Government (Rating) Act 2002 and follows our internal debt collection processes.

48 Due to COVID-19, collection of rates owed from previous rating years was put on hold at the end of March 2020.

Collection of outstanding property rates

49 The total property rates outstanding as at 30 June 2020 was $2.26 million, which was an increase of 21.0% from this time last year (30 June 2019: $1.87 million). This can be attributed to COVID-19 halting active collection and mortgagee notifications between 25 March and June 2020.

50 The COVID-19 Support Package announced by the Council in April 2020 allows for property and water rates penalties incurred between 1 March 2020 and 30 June to be reversed, and rates for the same period to be deferred for up to six months, through an agreed payment plan.

51 Applications close for the support package on 31 August 2020. Total property and water rates payments deferred so far are $256,840 over 104 agreed payment plans.

52 The Council’s debt collection staff will continue to work with ratepayers to set up workable payment arrangements.

53 Where a payment arrangement has not been agreed, and provided the property is subject to a mortgage, from July each year the Council can follow the collection process set out in the Local Government (Rating) Act 2002.

54 In light of COVID-19, the usual collection process will be considered very carefully and updates will be provided to the Council over the coming months.

55 The graph below shows a comparison of the $604,000 of rate arrears outstanding as at 30 June 2020 and for the previous three years.

56 The graph below details the rates arrears of $604,000 by property use/type. The majority of the total rate arrears are from residential and lifestyle properties.

57 The rate arrears from Māori freehold land are rates owed to the Greater Wellington Regional Council.

58 There are a small number of properties with significant outstanding arrears over a number of years. There are processes prescribed in the Local Government (Rating) Act 2002 for collection of this long outstanding debt. In light of COVID-19, this will be considered very carefully and updates will be provided to the Council over the coming months.

Collection of outstanding water rates

59 A total of $433,000 of water rates is overdue as at 30 June 2020, which is a 13% reduction from the same time last year ($497,000 as at 30 June 2019). This significant reduction is due to the focus on collection by the Council over the last two years in partnership with DMC.

60 Water rates payments received are first applied to water rate arrears. The chart below reflects the overdue and not-yet-due water rates as at 30 June 2020, 31 March 2020 and 30 June 2019.

61 The graph below details the total water rates outstanding by property use/type. The majority of the outstanding water rates are from residential properties.

62 $248,646 or 57% of outstanding water rates relate to individual debtor balances of less than $500.

63 Table 7 below details the total rate remissions approved to 30 June 2020 against the full year budget. Applications for rates assistance were sent to eligible property owners in December 2019, with applications open until 30 June 2020, or until the allocated budget is fully subscribed.

64 Rates assistance remissions are funded by rates and are a unique level of additional support provided by our Council to assist households in need. Further detail on the eligibility criteria can be found in the Council’s rates remission policy.

65 Year to date, central government rates rebates have been granted for 2,367 Kāpiti properties totalling $1.43 million. The Council provides the approved rates rebate (up to $640 per rateable property or Licence to Occupy agreement for retirement village residents) to the successful applicants and recovers the costs directly from the Department of Internal Affairs (DIA).

66 The Council promotes the Government rates rebate and remissions on radio, Facebook and through advertisements in the local papers and has worked with Grey Power and the Older Persons’ Council to promote remissions and rebates more widely.

67 The Rates Rebate (Statutory Declarations) Amendment Bill has just passed its third reading in Parliament on 22 July 2020. The objectives of the bill are to make it easier for eligible applicants to apply for a rates rebate by replacing the current requirement to make a statutory declaration which must be witnessed, with a requirement to verify the application. The Council submitted in support generally noting that there would need to be an alternative way to verify income information provided if the statutory declaration was removed.

Part H: Treasury Management

Summary

68 We talk about our borrowings as gross and net. Gross is the total and net is what we owe less our financial assets – essentially the cash and term deposits we hold to repay borrowings. To make sure we can always cover repayments when they are due, we start to build up funds in advance of the due date and put those funds into term deposits. Our net borrowings therefore reflect the true position of what we owe.

69 The graph below shows how our total borrowings break down into gross and net. It also shows our strategy to keep below 200% of operating income – represented by the green line. Borrowings were 184.8% of our operating income at the end of June. Looking at borrowing against income shows how well an organisation (or even an individual) is placed to handle and repay borrowings in the future.

70 It is one of the key measures used by Standard & Poor’s when they assess our credit rating. While we could borrow more (up to 240% as outlined in our treasury management policy and shown by the orange dotted line), we chose to limit our borrowings to 200% of operating income and that becomes our ‘green line’. This approach is so we can afford to replace significant water and wastewater infrastructure in the future.

71 The table below shows the Council’s net debt position as at 30 June 2020 against full year budget and the prior year closing balance.

Table 8	June YTD Actual $000	Full Year Budget $000	Full Year 2018/19 $000
External Debt	210,000	210,000	210,000
less: borrower notes	(3,360)	(3,360)	(3,360)
less: cash and cash equivalents	(50,944)	(45,200)	(59,086)
Net Debt	155,696	161,440	147,554

72 $45 million of long term borrowings matured during the year. ($20 million in September 2019 and $25 million in April 2020). This was refinanced using a term deposit that had been built up over the last 18 months in advance of the maturity. This ensures there is adequate funding available when borrowings mature. We call this prefunding and it is a key tool used by the Council to manage our liquidity risk or risk that we may not have access to funding when we need it.

73 The Council issued $45 million of new debt. $40 million was towards prefunding the April 2020, October 2020, May 2021 and Oct 2021 debt maturities and $5 million towards part funding the current year capital spending programme.

74 The table below shows (a) the movement in the Council’s external debt balance and (b) the movement in the Council’s pre-funding programme by debt maturity, for the year ended 30 June 2020.

75 As at 30 June 2020, the Council had $54.3 million of cash, term deposits and borrower notes on hand. This is broken down as follows:

76 During March 2020, the Reserve Bank of New Zealand reduced the official cash rate (OCR) by 0.75%, from 1.0% to 0.25%, this rate has been unchanged since then.

77 The Council’s weighted average cost of borrowing for the year ended 30 June 2020 was 4.15% compared to the budget of 4.8%.

Treasury policy limits

78 The treasury management policy (Policy) contains three financial ratios with either a maximum or minimum policy limit.

79 The Policy sets the maximum limit for the ratio of net interest expense to total operating revenue of 20%. The following chart shows actual limits achieved for each quarter.

80 The Policy sets the minimum limit for the liquidity ratio of 110%. This is a measure of the Council's available financial facilities compared to its current debt levels. The chart below shows actual limits achieved for each quarter.

81 The policy sets the maximum limit for net debt to operating income of 240%. This is a measure of the Council’s ability to repay its debt from the operating revenue it receives during a given financial year. The Council’s preference is to be less than 200%.

Part I: Asset Revaluation

82 The Council’s asset valuations are performed with sufficient regularity to ensure the carrying amounts are maintained at fair value. All valuations are performed by independent qualified valuers.

83 By maintaining asset values at fair value, the Council ensures that it best achieves intergenerational equity whereby ratepayers pay their fair share, and only their fair share, of the assets they use and benefit from.

84 From 1 July 2015, the Council transitioned to an annual rolling asset revaluation programme as set out below. We have completed asset revaluations as at 30 June each year and planned to transition to a 31 March 2020 revaluation date this year, to facilitate more budget certainty regarding the 2020/21 Annual Plan.

85 However, we have maintained the 30 June 2020 revaluation date to best ensure that our assets values have included any effect of COVID-19 which may impact on future years’ depreciation charges and rates revenue requirements.

Asset classification	Revaluation date	Subsequent revaluation
Land and buildings (including land under roads revaluations)	30 Jun 2020	Every (March) three years’ thereafter
Parks and reserves structures	30 Jun 2020	Every (March) three years’ thereafter
Water, wastewater and stormwater (including seawalls and river control)	30 Jun 2020	Every (March) three years’ thereafter
Roading and bridges, (excluding land under roads)	31 Mar 2023	Every three years’ thereafter

86 For the 2019/20 revaluation programme we engaged WSP New Zealand Ltd (formerly Opus) to complete the 3 waters revaluation. Aon NZ Ltd were engaged for the revaluation of the Council’s land, buildings, parks and land under road assets.

87 The summary of changes from the 2019/20 financial revaluation are shown below:

Three Waters Financial Valuation

88 Infrastructure assets have been valued on a replacement cost basis where the quantities of assets are multiplied by the unit costs plus an allowance for on costs (professional fees and council cost).

89 The replacement cost is then adjusted for factors such as age, condition and our network being fully optimised which then provides the optimised depreciated replacement cost. The revaluation of the three water assets has resulted in an overall increase in optimised depreciated replacement cost of $6.6 million or 2%.

90 The major change that contributed to the increase since the previous valuation in 2017/18 was an increase in the construction cost of 6.8% increasing the unit costs for replacement and a decrease in the pipes residual value from 15% to 5%, due to valuers changing their valuation methodology regards pipe relining.

91 COVID-19 was also fully considered. If there were any impacts from COVID-19 it would most likely be on

· the market prices driving the cost of construction up, thereby increasing the unit costs of replacement and,

· Network demand, which determines the optimised quantum of infrastructure to be valued.

92 It is too early to be definitive about the impacts of COVID-19 on the costs of construction, however they are more likely to be subject short-term increases. For valuation purposes the replacement costs used should reflect typical and sustainable market conditions not short term fluctuations.

93 Also COVID-19 is unlikely to lead to any reduction in the demand for the council assets. Therefore, no adjustment was made to demand for COVID-19.

Land, Buildings and Improvements Valuation

94 The revaluation of the land and building assets has resulted in an overall decrease in fair value of $25.6 million or 3% due to Land Under Roads.

95 Land under Roads is valued using an “across the fence” approach and an allowance made for the restrictive use, typically up to 50%. The valuation has remained consistent with its previous valuation, however a correction was required to the number of hectares, therefore resulting in a decrease in value of $35.03 million or 4%.

96 Operational Land and buildings are recognised at fair value. In terms of property valuations two main categories of property are considered.

· Non- specialised assets are valued at their “current market price” based on comparative market evidence.

· Specialised property assets are valued on the basis of Depreciated Replacement Cost.

97 In determining commercial and industrial “current market price” for the Council’s buildings and land, market evidence of recent sales and leases were used. If Council’s land is restrictive in use, such as a reserve status, a discount would also apply due to the little development potential or changing the reserve status.

Part J: Phase 1 – Sustained Community Support Costs

98 On 9 April 2020 the Council announced a phased approach support package to help the district withstand the economic and social challenges expected from COVID-19. The Council's focus is on the short- and long-term wellbeing of the district and this plan provides help where it is most needed.

99 Phase 1 – Sustain Community Support Package is the first step in what will be a multi-staged approach to social and economic recovery for our district. Further work is under way to look at how we support the community and district to recover. The support package is available up until 31 August 2020.

100 Phase 1 – Sustain Community Support Package includes the following support to Kāpiti residents, ratepayers and businesses who have been financially impacted by COVID-19.

a. Support available on application:

· removal or reversal of rates late payment penalties;

· six month deferral of payments for water and property rates;

· 90-day credit terms for invoices; and

· refund consent deposits and fees if applicants request to withdraw their application.

b. Support being applied automatically to those who are eligible for it:

· rent payments waived for three months for Council’s major commercial tenants;

· rapid payments to the Council’s suppliers;

· refund 25% of fees for food, alcohol, outdoor dining, hairdressing, trade waste, and campground licences paid in the 2019/20 financial year; and

· increased weighting for local businesses in procurement processes.

c. The Council also agreed the following support:

· allowing Community Boards to repurpose unallocated discretionary grants for 2019/20 to COVID-19 response initiatives;

· flexibility to repurpose remaining social investment grants in 2019/20 as appropriate; and

· extended existing library book loans by six weeks.

101 The table below shows a summary of the costs incurred or revenue lost/deferred, and applications received related to Phase 1 – Sustain Community Support Package as at 30 June 2020.

	Full year 2019/20
Table 11	Amount ($)	Total number of queries (via Council online form)	Total number of applications
Actual Costs
Allowing Community Boards to repurpose unallocated discretionary grants for 2019/20 to COVID-19 response initiatives	19,299	1	14
Repurpose IWI work plan budget	90,000	-	3
Other costs associated with setting up Council Support package (e.g. consultants, legal costs)	30,891	-	NA
Total costs	140,190	1	17

	Full year 2019/20
Table 11 (continued)	Amount ($)	Total number of queries (via Council online form)	Total number of applications

Lost/deferred revenue
Refund consent deposits and fees if applicants request to withdraw their application	6,000	-	2
Rent payments waived for three months for Council’s major commercial tenants	38,332	2	7
Refund 25% of fees for food, alcohol, outdoor dining, hairdressing, trade waste, and campground licences paid in the 2019/20 financial year	47,155	12	548
Removal or reversal of rates late payment penalties	34,307	140	117
Deferral of payments for water and property rates	256,840	140	117
Total lost/deferred revenue	382,634	154	674

Other
Increased weighting for local businesses in procurement processes	-	3	-
90-day credit terms for invoices	Unquantifiable
Rapid payments to the Council’s suppliers	Unquantifiable
Flexibility to repurpose remaining social investment grants in 2019/20 as appropriate	Not utilised
Extended existing library book loans by six weeks	Unquantifiable
Grand Total	522,824	158	691

102 Approximately 60 staff were re-deployed to the Emergency Operations Centre (EOC) in response to COVID-19. The Council’s response costs in relation to the Emergency Operations Centre are mainly related to welfare support, iwi liaison, sourcing equipment and supplies, and public information management. This totalled to $111,000 for 2019/20.

103 In accordance with the Guide to the National Civil Defence Emergency Management Plan 2015, the Council lodged a reimbursement claim to the National Crisis Management Centre (NCMC) on 29 May 2020 to recover the Council’s eligible response costs in relation to the EOC. The claim of approximately $16,250 covered costs incurred by the Council to meet the welfare needs of our community as a result of COVID-19. These people and households have not had access to other sources of support.

104 The claim lodged in May was revised down to approximately $15,500 after further clarifications received from the NCMC. A further smaller claim (value to be determined) will be made in August 2020.

Part K: Requests for bad debts write off

105 Debt management has been in place to monitor the Council’s rating (including Water) debts and other non-rating (i.e. sundry) debts. This is done actively to ensure possible collections issues are identified and addressed.

106 The Chief Executive may write-off sundry debts (excluding rating debts) up to the value of $1,000 under the delegated authority from the Council (under the Local Government Act 2002). Debts over $1,000 in value must obtain approval from the Council before they can be written off.

107 The following sundry debts (over $1,000 each) have been identified as being un-collectable and are submitted to the Council for approval to be written off.

a) Silaca Crushers Ltd total $8,101.77 (incl. GST)

This debt has been outstanding since May 2015 and relates to rates and rent for the Otaki Resource Recovery Facility. The lease expired on 1/12/2018. The owner passed away on 28/03/2019. The company was removed from the company register on 26/06/2019. Finance continued to send monthly statements until we became aware of the owners passing.

b) RKJP Services Ltd total $1,050 (incl. GST)

This debt relates to a food premises verification and non-attendance charges on 12/12/2017 and 11/01/2018. Finance continued to email monthly statements to the owner. The company was removed from the company register on 20/05/2019.

c) GECKO Belly Ltd total $1,183 (incl. GST)

This debt is for a hairdresser licence and has been outstanding since July 2013. The company was removed from the company register on 03/02/2015.

d) Civil X Ltd total $2,005.79 (incl. GST)

The company went into liquidation on 08/03/2019. Finance filed a claim against the company in December 2019. The final report from the liquidator was received on 05/06/2020 and the Council did not receive any funds.

Considerations

Policy considerations

108 There are no policy implications from this report.

Legal considerations

109 There are no legal considerations arising from this report.

Financial considerations

110 The financial information as detailed in Parts A to K of this report is unaudited. Best endeavours have been made by all Council Officers’ to ensure the accuracy, completeness and robustness of the financial information contained herein as at the time of issuance of this report.

Tāngata whenua considerations

111 There are no specific tāngata whenua considerations arising from this report.

Significance and Engagement

Significance policy

112 This matter has a low level of significance under the Council Policy.

Publicity

113 There are no publicity considerations arising from this report.

Recommendations

114 That the Strategy and Operations Committee receives this report.

115 That the Strategy and Operations Committee notes the actual financial performance and position of the Council for the year ended 30 June 2020.

116 That the Strategy and Operations Committee approves the capital carry forwards indicated in Part F – Capital Spending Programme, subject to a review of the capital budget during the first quarter of 2020/21.

117 That the Strategy and Operations Committee approves the Chief Executive to write-off all of the bad debts indicated in paragraph 107 of this report.

Appendices

Nil

Strategy and Operations Committee Meeting Agenda

20 August 2020

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Across Council Work Programmes

There are several programmes of work that extend across two or more activity areas. To present the reporting on these programmes of work more cohesively, they will be reported on in this ‘Across Council Work Programmes’ section rather than in separate activity reports.

These programmes of work are:

· Provincial Growth Fund

· Housing Work Programme

· Coastal Adaptation Work Programme

· Council-wide Corporate Information Technology Projects

· Carbon and Energy Management.

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Provincial Growth Fund work programme
Description	This work programme supports the development and implementation of Provincial Growth Fund applications for the Council and the Kāpiti community.
Lead	Senior Leadership Team
Key developments from 1 January to 30 June 2020
1. Principal Advisor Growth and Development (PGF part-funded role) Commenced work in mid-January, part of the Economic Development team. Role is focussed on supporting the progress of economic development and provincial growth fund projects in Kāpiti. 2. Kāpiti Gateway project Project has been progressed to resource consent stage (consent applications submitted) in order to meet criteria for PGF funding. An application has now been submitted to PGF and we are awaiting a response. If the PGF application is successful, a paper will be brought to Council to confirm next steps. 3. Otaki Rangitahi Initiative An Otaki based rangitahi (youth) initiative has been developed in consultation with local stakeholders and an application submitted to the He Poutama Rangatahi Fund – a youth-specific fund that sits within the PGF and focusses on wellbeing outcomes as a priority for rangitahi. We are currently awaiting a response. 4. Renovation Fund A separate $70m fund within the PGF has been established to assist Council’s and local Marae with renovation projects that are able to commence quickly within the community and provide local employment. Council has submitted four projects for consideration (two council owned buildings and two community owned buildings on reserve land) and is currently awaiting a response. TPK is working with local Marae on making applications to the fund also. 5. Wairoua Lodge (Kāpiti Island), Nga Manu Sanctuary Both Wairoua Lodge and Nga Manu have submitted applications to the PGF with Council support, for lodge upgrade and visitor centre respectively. Neither are shovel-ready projects. 6. One Billion Trees Fund An application to afforest Council land at Maungakotukutuku, Raumati Escarpment, Te Awa Tapu cemetery and the Waikanae water treatment plant is still awaiting a funding decision from 1BT. There are other opportunities (involving 1BT, private land owners, DOC and GWRC projects/funds, carbon sequestration, volunteers and training organisations) but there is a gap in required resourcing to coordinate and/or manage the projects to leverage them.
Risks (to programme, cost, quality, other)
1. Fund closure for election PGF is in its final year and is due to close at the end of July for the election. It is not known if it will exist beyond the election. 2. Post-COVID-19response The PGF fund criteria have changed as part of the Government’s response to post-COVID-19, with at least $600m being used to support regional economies as they recover from COVID-19. Now, projects must be able to start building within 2-3 months (‘shovel-ready’), creating immediate and sustainable jobs, and be visible in the community to improve confidence.
Issues (for elected member attention)
Kāpiti Gateway community engagement Due to the speed with which the project has progressed at (in order to meet the pre-election deadline), and the need to be ‘shovel-ready’ (resource consented), and the COVID-19 lockdown, not all of the planned additional community engagement was able to occur as proposed. Unfortunately, there is now misinformation in the community which is a risk to the outcome of the project.

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Housing work programme
Description	This work programme defines the implementation strategy for Council to progress housing supply across the District including physical assets and advocacy work streams on behalf of the local community.
Lead	People and Partnerships Group
Key developments from 1 January to 30 June 2020
a) Finalised the Housing Programme Assessment Report. b) Submitted Housing Development application to the Crown Infrastructure Fund. c) Council endorsed the Housing Programme Assessment Report and agreed priority actions while a detailed housing work programme is developed.
Risks (to programme, cost, quality, other)
1. Council’s role in the housing sector is not consistently understood. 2. The Council’s reputation is eroded by the perceived lack of action on addressing housing issues in the district.
Issues (for elected member attention)
None to report

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Coastal adaptation work programme
Description	This work programme comprises the development of a regional approach to community-led coastal adaptation under the umbrella of the Wellington Region Climate Change Working Group’s coastal adaptation sub-group.
Lead	Regulatory Services Group
Key developments from 1 January to 30 June 2020
a) Takutai Kāpiti: Climate Change and Our Coast held on 8 March 2020. b) Tangata Whenua partnership on the project secure through the establishment of ART (Te Ātiawa ki Whakarongotai, Ngāti Raukawa ki te tonga and Ngāti Toa Rangatira) Coastal Advisory Group (ARTCAG). c) Co-design Working Group membership finalised with representation from Greater Wellington Regional Council (GWRC), ARTCAG, Coastal Ratepayers United (CRU), North Otaki Beach Resident Group (NOBRG), Waikanae Estuary Care Group, Friends of Ōtaki River and Friends of Queen Elizabeth Park. d) Councillor Nash and Councillor Handford appointed as Working Group observers along with Community Board representatives. e) The Working Group met on 21 Feb, 17 April, 8 May, and 15 May. Discussions focused upon the number of Community Assessment Panels for the project, governance structure and alignment with GWRC. f) Terms of Reference for the Working Group finalised. g) Request for Proposal for Coastal Science and Engineering Provider advertised on GETS (closing date 15 July). h) Workshop with Tangata Whenua, GWRC, Department of Conservation, Manaaki Whenua 17 June to discuss ways of working in partnership and explore ways to align similar projects.
Risks (to programme, cost, quality, other)
a) Due to the high degree of importance and significance to iwi, interested parties, and the wider community, it is important that iwi and the community has ample opportunity to provide input into the coastal adaptation process. If effective consultation, engagement and collaboration is not achieved; the aim of the project to be community-led and meet best practice recommendations from Ministry for the Environment will not be achieved b) In addition, it may result in breach of undertakings made to involve the community in the coastal hazard work. c) Delay to timeframes and risk of disengagement from ARTCAG and Working Group (and wider community), pending decisions on budget and revised project design, to deliver the project in 2020/21 (see below).
Issues (for elected member attention)
· As reported in Q2 (Risk 3), the community-led process, Tangata Whenua and community expectation from the Working Group and ARTCAG has expanded. · Greater Wellington Regional Council is unable to contribute financially and there is likely to not be sufficient budget to complete the community-assessment panel process in 2020/21 financial year.

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Corporate IT work programme
Description	The hardware programme includes servers, desktops, laptops, mobile phones, internal network, digital radio network across the district and the CCTV network.
Lead	Corporate Services
Key developments from 1 January to 30 June 2020
a) The upgrade of Magiq software (financials and regulatory) to v4.26 was completed in January. b) In early March the move of Exchange mailboxes from Council’s on site data centre to Exchange Online was completed. c) Microsoft Teams was rolled out to all staff in March to support online collaboration, particularly vital throughout the COVID-19 lock down period. d) A huge effort was undertaken in March to get staff set up so they could work from home during the COVID-19 lockdown period. Ongoing support to staff took up a lot of IT resource during this period. Additional monitors, laptops and cables were purchased and delivered. e) The migration of 31 production servers from Council’s on site data centre to a commercial data centre was completed in April. f) A new fibre network has been implemented that has seen fibre installed at Otaki Library/Service Centre, Waikanae Service Centre, Waikanae Water Treatment Plant and Coastlands Aquatic Centre. Moving from the old digital radio network has improved stability and end user experience for both staff and customers. g) The accounts payable automation project began in March and continued during lockdown which added some complications with everyone working remotely, however, good progress was achieved. The project is due to go live on August. h) Provided assistance for the community assistance package through developing the online application form that went up on the Council’s website. i) The replacement printer programme was recommenced in June and was completed in the first week of July.
Risks (to programme, cost, quality, other)
There are no risks to the current programme.
Issues (for elected member attention)
COVID-19 necessitated $115,000 of critical IT expenditure planned for 2020/21 to be brought forward to March 2020 in order to fully support staff during the COVID-19 lockdown. Included in the 2020/21 Annual Plan is budget necessary for the Council to continue to upgrade its IT applications and strengthen its resilience and mobile/remote working capabilities.

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Policy Work Programme
Description	The Policy Work Programme identifies policy work to develop, review and update strategies, policies and bylaws across the 2018-2021 period to help achieve Council’s outcomes and meet its statutory requirements. The programme was agreed on 31/01/2019 with updates and changes regularly reported to the Strategy and Operations Committee.
Lead	Corporate Services
Key developments from 1 January to 30 June 2020
Programme items completed over this period include: · CEMARS Audit · 2020/21 Annual Plan · National Policy Statement on Urban Development Capacity Quarter 3 Monitoring Report March 2020 Council made 10 submissions over the last six months on a range of changes to Government legislation and policy including: · Ministry of Transport's New Zealand Draft Rail Plan · Ministry of Transport's Government Policy Statement on Land Transport 2021 – 11 Ministry for the Environment's National Policy Statement on Indigenous Biodiversity · The Infrastructure Funding and Financing Bill · The Urban Development Bill · Fire and Emergency New Zealand Funding Review · Ministry for the Environment's Transforming the resource management system: opportunities for change · Proposed Changes to the Solid Waste Levy notified Ministry for the Environment's Reducing Waste: A more effective landfill levy · The Public Service Legislation Bill
Risks (to programme, cost, quality, other)
a) The Programme is subject to change and includes regular updates to the Strategy and Operations Committee. b) A Policy Work Programme update was reported to the Strategy and Operation Committee on 16 July 2020. The update identified a number of projects that are now on hold or have experienced delays due to COVID-19 (limited ability to engage and consult during this period, or resource shortages as key staff were diverted to support emergency and recovery activities). c) The Strategy and operations Committee approved proposed timeframe changes to several delayed projects and noted the reasons why some projects were on hold at present.
Issues (for elected member attention)
Due to COVID-19 delays, the 2009 Beach Bylaw review is now targeted to be completed by March 2021 (legislative deadline is June 2021). Phase 1 – pre-consultation engagement, will recommence and consultation of a draft 2021 Beach Bylaw is planned for October to November 2020. Beach uses, key stakeholder jurisdictions and compliance will be key components of the consultation.

Appendix A – Across Council Work Programmes Chapter (1 January 2020 to 30 June 2020)

Carbon and energy management work programme
Description	The Council has, since 2012, had a target of an 80% reduction in greenhouse gas (GHG) emissions from the organisation by 2021/22, compared to 2009/10. That target was augmented and extended in May 2019 when Council decided to aim for carbon neutrality by 2025. The Council has its annual emissions inventory independently audited to gain GHG emissions reduction^{^[2]} accreditation to the ISO-14064 standard.
Lead	Sustainability and Resilience team, Infrastructure Group
Key developments from 1 January to 30 June 2020
Verified emissions result for 2018/19 a) *The annual carbon emissions audit for 2018/19 was completed in late January 2020 and the provisional* result reported to the Strategy and Operations Committee on 5 March.** b) The verified emissions result was confirmed by Toitū Envirocare, our auditors, in mid-March 2020. That result reported total greenhouse gas (GHG) emissions of 2,867 tonnes CO₂e (tCO₂e), down 2 tCO₂e from the provisional result reported in Match, and down 150 tCO₂e from the 2017/18 result. c) *This confirms the previously reported 77% reduction in our GHG emissions compared to the 2009/10 baseline year (see right-hand axis below).* Other developments a) Initial assessment visits for the installation of EV charging stations at the Civic building were undertaken over January to March 2020. This project came to a halt with the shutdown in March, but resumed following the return to Level 1. The new EV chargers at the Civic building are expected to be installed by mid-August 2020. b) Fleet review and decarbonisation proposals were sought from two recommended providers over March and April 2020. We decided to accept the proposal from Fleetwise to undertake this work. The Fleet review incorporates a fleet utilisation study, vehicle fit-for-purpose assessments and fleet optimisation recommendations. The decarbonisation plan will provide us with a roadmap for transitioning our fleet to lower emission alternatives (including EVs, Plug-in Hybrid EVs and standard hybrid vehicles). c) The Energise Ōtaki (EO) proposal to install a modest Solar PV array at the Ōtaki wastewater treatment plant made significant progress over this period. EO contracted Infratec, a specialist Solar PV installer, to be their installer and project manager. The lease agreement with Council has been signed and the power supply agreement is due to be signed before the end of July 2020. Site preparation work has started and installation of the Solar array should be underway by early August. d) An initial feasibility study was commissioned by the Aquatics team manager, into the costs and outcomes that could be expected from transitioning the Ōtaki Pool away from its current gas water heating boiler to a lower emissions alternative. The results of that study suggest that it would cost in the range of $600,000-$750,000 for that transition. There is currently $405,000 in year four (2021/22) of the current Long Term Plan (LTP) for this work. We will work with the Aquatics team manager to review the feasibility study and explore whether we can make a viable business case for inclusion of additional funds for this work in year one of the 2021-41 LTP. e) A range of other projects were initiated over the past six months but are very much in the initial exploratory stages. Any significant advances or developments in regard to those will be reported back to Councillors either in future quarterly reports or through occasional briefings.
Risks (to programme, cost, quality, other)
The most significant risk to the current projects under development is the risk that the quotes that come back from the EV charging installers, and the costs of any move to transition the fleet to lower emissions vehicles, impinge too heavily on the Plant and Vehicle budget.
Issues (for elected member attention)
There are no issues at present.

Parks and open space

Ngā papa rēhia me ngā waahi māhorahora

Purpose

To manage a wide range of parks, reserves and open space to benefit the whole of our community. To facilitate barrier-free access to our network of cycleways, walkways and bridleways.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$4.44m (FY)

$4.44m budget (FY)

Minor variance.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$1.47m (FY)

$1.29m budget (FY)

Operating Income of $1.47 million is $180,000 favourable to budget mainly due to higher than planned financial reserve contributions revenue.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.80m (FY)

$1.43m budget (FY)

Capital expenditure of $0.80 million is $622,000 underspent mainly due to 1) Paraparaumu Escarpment project which will be considered during the 2021 Long term plan and 2) the Otaki Beach Development project, which will be considered during the 2021 Long term plan, currently deferred to 2022/23.

Projects

There is only one parks and open space ‘project’ this year - the Districtwide Parks and Playgrounds work programme. It is a capex over $250k project and is achieved.

Performance measures (KPI)

All 11 KPIs were achieved for this financial year.

Summary of projects

The parks and open space significant project is on target and summarised below.

1. Districtwide Parks and Playgrounds
Projects completed: Waimeha Domain Playground renewal Pharazyn Avenue Playground renewal Campbell Park Playground renewal Mazengarb Park Playground renewal Coastal Restoration Tohorā Artwork at Maclean Park – delivered on behalf of Arts and Heritage. Key issues and risks: COVID-19 has resulted in delayed consultation for the 2020/21 playgrounds that need to be renewed. Marere Avenue Playground Renewal was deferred as the factory was closed during lockdown and the upgrade will be completed in July. The Weka Park bridge upgrade contract was delayed going out to tender due to COVID-19. A partial payment towards this has occurred, and the rest of the project will be paid out of the 2020/21 Cycleway, Walkway and Bridleway budget.
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Waikanae Playground Equipment Renewals	216	279	63	Complete	Both Waimeha Domain and Pharazyn Avenue Playgrounds were completed. Underspend offset by reassignment of funds needed in other Parks budgets.
Paraparaumu / Raumati Playgrounds Renewals	165	327	162	Complete / With one on hold	Campbell Park and Mazengarb upgrades completed. Marere Avenue renewal works ($85,000) carried over to the next financial year due to COVID-19 delay and will be completed by August. Other underspends offset by reassignment of funds needed in other parks budgets.

2. Other projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Districtwide beams and seating	54	55	1	Complete	Completion of the next sets of beams and plinths in Otaki, Waikanae and Awa Tapu Cemeteries.
Paraparaumu/Raumati Escarpment	0	201	201	On hold	To be considered in the 2021 LTP as no solution has been proposed by Kiwirail. On-going maintenance/management in place in the interim.
Otaki Beach development	0	333	333	On hold	Deferred to 2022/23 as the road stopping process needs to be finalised before the Reserve management / development plan can be progressed.

Project status key
Complete On target Not on target On hold High risk

Ahead º▲ Lagging º▼ Underspend $Þ Overspend $Ý

Other key developments

· A total of 2,443 people attended the summer series events and Parks Week.

· The very successful inaugural movies in the park at Waikanae Park had 1,400 people attend.

· The inaugural super schools event was held at Waikanae Park as part of the Primary School Sports annual calendar of events. The event was play based, targeting children who wouldn’t normally participate in a sporting event. A total of 800 year 7 & 8s attended. The event was extremely successful and will continue on an annual basis.

· A districtwide pandemic cemeteries plan was completed at the start of Level 4 lockdown

· The Recreation Facilities co-ordinator worked closely with various sports groups and organisations to ensure sport could recommence as soon as possible in Level 1

· The Waikanae Community Market licence to occupy was publically notified and no objections were received. All other requirements for the market to operate at Waikanae Park were completed. The re-opening of the market took place on 4 July. A total of 69 stallholders were registered.

Waikanae ki Uta ki Tai

· Council officers continue working with the Department of Conservation, Greater Wellington Regional Council, iwi and community representatives on the establishment of a Waikanae River Mountains to the Sea catchment restoration programme, named ‘Waikanae ki Uta ki Tai’.

· The steering committee has been confirmed with community members appointed, alongside iwi pou and the first meeting was held in June.

Performance measures

There are 11 key performance indicators (KPI) in the parks and open space activity.

Performance measures	Target	Result	Comment
Achieved
Residential dwellings in urban areas are within 400 metres of a publicly owned open space	85%	Achieved (99.4%)	103ha out of 18,452ha (0.6%) of the total District Plan residential area are not within 400m of a publicly owned open space.
At least a 10 year burial capacity is maintained across the district	Achieve	Achieved (54 years)	There is a total of 54 years’ capacity across the three cemeteries.
Sports grounds are open when scheduled	85%	Achieved	Sports grounds were open 98% of the time in the third and fourth quarter.
All available records will be on Council’s website within four weeks of interment	100%	Achieved
Residents(%) who are satisfied with the current availability of facilities	85%	Achieved	91% are satisfied with Council facilities
Residents (%) who are satisfied with the quality of Council parks and open space	85%	Achieved	94% are satisfied with the quality
Residents (%) who are satisfied with the quality and range of recreation and sporting facilities in the district	85%	Achieved	85% are satisfied
Residents (%) that are satisfied with Council playgrounds	85%	Achieved	95% of residents are satisfied.
Users who are satisfied with the cemeteries appearance and accessibility	85%	Achieved	100% of residents are satisfied
Users who are satisfied with Council walkways, cycleways and bridleways	85%	Achieved	92% satisfaction in Q4 (92% for the full year)
Residents (%) who are satisfied with access points to beaches	85%	Achieved	88% satisfaction in Q3 (89% for the full year)

Recreation and leisure

1. Hākinakina

Purpose

To provide affordable and safe aquatic facilities, services and programmes for the health and wellbeing of our community. This activity also provides a districtwide library service. and arts and museums services for the Kāpiti community.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

$8.14m (FY)

F/Y Outlook
F/Y Outlook
˜

$8.48m budget (FY)

Operating Expenditure of $8.14 million is $339,000 favourable to budget mainly due to savings in maintenance and facility operations relating to COVID-19 lockdown closure of swimming pools and libraries.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$1.52m (FY)

$1.85m budget (FY)

Operating Income of $1.52 million is $339,000 unfavourable to budget mainly in swimming pools revenue as a result of COVID-19 lockdown closure.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.78m (FY)

$1.24m budget (FY)

Capital expenditure of $0.78 million is $464,000 underspent mainly due to Mahara Gallery project on hold and swimming pool projects reliant on overseas contractors and suppliers with availability being constrained as a result of COVID-19. These projects are identified as carry forwards to 2020-21.

Projects

There are no significant council projects in this activity for 2019/20.

There are a number of minor projects summarised in the table on the next page.

Performance measures (KPI)

Of the ten KPIs from the Recreation and Leisure activity three were achieved, 5 not achieved and 2 not yet due.

Summary of projects

There are a number of minor projects underway this year, they are summarised in the table below:

Minor projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Otaki Theatre	14	116	102		The underspend reflects roof replacement project delayed due to COVID-19 and obtaining further Condition survey data. Funding carried forward to 2020/21.
Public Art	129	154	25		Underspend reflects smaller art installations completed due to COVID-19
Pool - Waikanae	119	204	85		Works scheduled for Q4 unable to be completed due to COVID-19 (hydro slide water treatment solution and chemical slurry tank)
Pool - CAC	64	112	48		Works carried forward to scheduled closure in 2020/21 to reduce the inconvenience to customers (Hydraulic Cylinder replacement).
Library - Books	217	211	(6)		Slight overspend reflects timing between when books are ordered and when they arrive from overseas
Mahara Gallery	25	270	245		The underspend is due to the project going on hold pending the Mahara Gallery Trust securing its share of funding. $245,000 is carried forward to 2021/22.

Other key developments

Aquatics

There were 95,717 pool visits in the third quarter, continuing the trend of being the highest attendance since the opening of the Coastlands Aquatic Centre. These numbers are due to higher programme attendance, an updated marketing approach and several major events which were held during the quarter. This high number is especially positive due to the early closure of Coastlands Aquatic Centre and Otaki Pool on Monday 23 March due to COVID-19 level 3.

The 19/20 fourth quarter has been strongly affected by the COVID-19 alert levels. The pools reopened Friday, 15 May after an eight-week period of closure to lower attendance. There were 24,558 visits in the fourth quarter – 19,404 for Coastlands Aquatic Centre and 5,154 for Otaki Pool. Waikanae Pool is closed for the winter.

A total of 641 people were registered for swimming lessons during the school term in the third quarter – 443 at Coastlands Aquatic Centre, 133 at the Ōtaki Pool and 65 at Waikanae Pool. 96 children completed the holiday swimming programme during the third quarter and 181 attended private lessons.

SwimKāpiti had a 5-week term in the fourth quarter with 155 people registered for swimming lessons – 115 at Coastlands Aquatic Centre and 40 at Otaki Pool. Limited classes were available due to instruction required to be from the pool deck due to distancing requirements. There were 71 private lessons across the 5 weeks.

There were 543 school children who participated in schools swimming lessons delivered by council instructors in the third quarter. There were no school based lessons in the fourth quarter.

The summer events programme included events such as Kids’ Aquafit, Back to School Water fight and Sunday Sounds at Waikanae Pool, and Fun Inflatable Day at Coastlands Aquatic Centre.

The fourth quarter has had a focus on supporting and enabling our regular lane hirers to transition back into full capacity, with a strong focus on contact tracing and increasing the use of membership cards for customers.

Libraries

Kāpiti library branches closed Wednesday 25 March 2020 - and remained closed throughout COVID-19 Alert Levels 4 & 3. Libraries reopened to the public on Thursday 14 May after the country moved to Alert Level 2 with health and safety practices as top priority in keeping community and staff safe.

The 19/20 fourth quarter was strongly affected by the COVID-19 alert levels. There were a total of 31,158 visits in the fourth quarter – 14,711 for Paraparaumu Library, 5,573 for Waikanae, 8,040 for Otaki and 259 for Paekakariki Library This compares to a total 59,628 library visits for the third quarter.

Onsite programming was suspended during lockdown and the initial phase of Level Two. A total of 961 people attended library programmes and events in the third quarter. In the fourth quarter 196 people attended library events.

Online services continued during the lockdown period including story times, book groups and web-based reservations. This saw both online content and engagement increase – with over 30 videos shared on Facebook. Particularly popular were the online Tamariki Times which contributed to over 20,000 video views in the fourth quarter compared to 590 views in the previous quarter. An increase of over 3400%.

Library users borrowed ebooks at unprecedented rates during the COVID-19 lockdown. A total of 8,289 ebooks were issued in the fourth quarter. This compares to 4,800 in the previous quarter – and reflects the increased popularity of online offerings in the absence of the physical services.

A total of 762 new ebook users were registered in the third and fourth quarter - with 1,840 active users at the end of June.

Arts

Two significant art installations were completed in Quarter 4.

o The art work Tohorā was commissioned by the Public Arts Panel and completed by internationally renowned artist, Kereama Taepa. The multi-media work is integrated into the recently refreshed Te Uruhi/Maclean Park.

o A temporary mural was completed on the exterior of the old Waikanae Library building which reflects the connect the area has with the artist Frances Hodgkins.

Performance measures summary

There are ten key performance indicators (KPI) in the recreation and leisure activity.

The five KPIs not on target are discussed below:

i) Visits to swimming pools in the district are below target of 290,000 at 244,259. Attendance has been strongly affected by the closure of the facilities in level 3 and 4 and limited capacity during level 2.

ii) Learn to swim registrations are below target of 3,200 annual registrations within a year to date total of 1,973. Registrations have been severely impacted by COVID-19. Systems are in place to welcome students from term 1 back for term 3 and a revised holiday programme is being offered in Q1 2020/21 to increase attendance.

iii) Library visits and items issued were affected by the closure of libraries from end of March to early May. Numbers have gradually returned to pre-coivd levels once customers became comfortable again with using public buildings.

iv) The reduction in collections budget for 2019/20 impacted signifinactly on the number of new items that were purchased. The budget has been fully reinstated for 2020/21 so this KPI will return to On Target.

Performance measures	Target	Result	Comment
On target
Council will maintain PoolSafe accreditation	Achieve	Achieved	PoolSafe accreditation was achieved in Q3 2019/20 (2018/19 result was ‘Achieved’).
Users who are satisfied with the pools services and facilities	85%	Achieved	94% of customers surveyed rated the staff and facilities good or excellent (2018/19 result was 96%).
Total value of applications received relative to the total amount of funding in each allocation round	Ratio is > 1	Achieved	Creative Communities Grant Q4 Allocation Ratio: 1.35 Total grants requested: $31,282 Funding available: $23,067
Not achieved
Visits to swimming pools in the district	At or above 290,000 annual admissions	Not achieved	244,259 combined swims in the year to date at the end of Q3. On target. 268,817 combined swims in the year to date at the end of Q4. Target not achieved due to COVID-19 closure (2018/19 result was 293,638).
Learn to swim registrations	At or above 3,200 annual registrations	Not achieved	1,973 registrations for the year to date include 641 registrations for the third quarter and 151 in the fourth quarter. (2018/19 result was 3,344).
Total visits to libraries	At or above 300,000 annually	Not achieved	226,342 combined visits in 2019/20. The COVID-19 library closures and ongoing reduction of services at Waikanae are the main contributing factors to this not being achieved. (2018/19 result was 253,978).
Collections are refreshed in accordance with New Zealand public library standards	Maintain 350 new items (incl renewals) per 1,000 (where population is 52,762)	Not achieved	Target for 2019/20 is 18,445 Actual - 13,585 items added. This reflects the 50% reduction in collections budget for 2019/20.
Number of items borrowed per annum (including renewals)	650,000	Not achieved	Total 462,615 items borrowed at the end of Q4. COVID-19library closures had significant impact 2018/19 result was 613,190 items.
Not yet due
Users who are satisfied with the library services	85%	NYD	Annual library survey not conducted in May 2020 due to other COVID-19priorities. Survey is being undertaken in Q1 2020/21.
Users who are satisfied with library spaces and physical environments	85%	NYD	Annual library survey not conducted in May due to COVID-19priorities. Survey is being undertaken in late July Q1 2020/21.

Community facilities and support

2. Whakaurunga hapori me ngā hāpai hapori

Purpose

To manage and maintain Council’s building and property assets and provide resources to the community for capacity building and service provision.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$3.94m (FY)

$4.36mm budget (FY)

Operating Expenditure of $3.94 million is $415,000 favourable to budget mainly due to lower costs and general savings in part due to COVID-19 made across the Community Facilities portfolio.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$1.73m (FY)

$1.57m budget (FY)

Operating Income of $1.73 million is $165,000 favourable to budget mainly due to higher than expected development contributions for Community Infrastructure following a few major developments in Waikanae.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$2.88m (FY)

$3.89m budget (FY)

Capital expenditure of $2.88 million is $1 million underspent in the year primarily due to Paraparaumu Memorial Hall, the districtwide access control system not proceeding and a reduced scope of work for Raumati Waterfront Building. Funds totalling $775,000 have been carried forward, for these and other projects.

Projects

There is one significant Community Facilities and Community Support projects. The Housing for Older Person’s renewals project is forecast to overspend the initial budget, largely as a result of urgent remediation needed to the Wipata Flats in Paekākāriki and as a consequence of the previous Council giving direction to renew units when they became vacant.

Performance measures (KPI)

Of the 15 KPIs only 14 of these have targets as one is for recording and monitoring purposes.

Summary of projects

Older person’s housing renewals
Work completed in this period: Council completed full interior renewal on three Housing for Older Persons units during Q3 and Q4 bringing the total for the year up to 11. This means the overrall the total number of units that have received full interior renewals is now 39. The units were identified for renewal by either becoming vacant and requring significant renewal, or were prioritised through SPM building condition surveys (September 2019). Three partial interior renewals were completed. They included new carpet and painting throughout. These units will be relet. *Renewal of two further units in Paraparumu commenced post-COVID-19that are 75% completed as at 30 June. Key issues and risks: § COVID-19 lockdown supply and delivery impacts. § Contractor availability interrupted by COVID-19lockdown and tenants being in high risk group. § Four units became available in Q3 and Q4. § Dux Quest plumbing failures escalates renewal in some instances.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
772	592	(180)	$Ý	Variance to budget in line with Council directive to refurbish units when they become vacant.

Other projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Halls - Waikanae	103	102	(1)		Complete
EQP	99	123	24	$Þ	Detailed Seismic Assessments for Otaki Theatre and Museum
Civic Access Control System	18	139	121		Project deferred to 2021/22 due to COVID-19 related issues ($121,000)
Halls - Paraparaumu/ Raumati	37	144	107	$Þ	Temporary remediation works at the Te Newhanga Community Centre to allow further time for decisions of future Community Centre requirements
Paraparaumu College Gymnasium	0	255	255		Project deferred until 2020/21 due to delays in obtaining Ministry of Education approvals ($255,000)
Memorial Hall renewals (Paraparaumu)	16	327	311		No change from last quarter. Project on hold pending determination of Hall user demand
Waterfront building	101	505	404	$Þ	Completion of roof project and minor renewal of some other building elements
Performing Arts Centre	1,600	1,600	0		Complete
Animal Management Centre	496	238	(258)	$Ý	Complete. Variance due to decision to undertake a higher scope of work in line with MPI Guidelines

Other key developments – Community Facilities

Animal Management Shelter renewal project

® The renewal of the Animal Management Shelter commenced in January 2020 and was completed in June 2020. The renewal project brought former shelter up to a modern day standard in line with MPI guidelines. The scope included renewal of the existing asset, new crush cages, non-scalable perimeter fencing and covered exercise areas. It also includes a new veterinary area and a secure drive in kennel space.

Te Newhanga Kāpiti Community Centre

® Maintenace work was undertakern to ensure the Centre can operate safely for at least another 18+ months (or until LTP funding beocmes avaiable) as a Community Centre, and also an emergency hub facility in the event of an emergency. This ensures any risks are contained and/or minimised, and gives staff and community certainty. Longer term solution will be considered as part of the next LTP.

Housing for Older Persons

® As at 30 June 2020, 39 Units have had interior renewals completed along with 3 partial unit renewals. The applicant register is currently 57 with majority of applicants wishing to reside South of Otaki. As at 30 June there were eight units vacant, six of which are being held for decanting and renewal purposes. New tenants have been identified for the remaining two units.

Waikanae Library replacement

® A Project Advisory Group has been established and two workshops held to review the optimum location of the library for the benefit of Waikanae Town centre. The project team has been established with three main focus areas identified, Libraries, Customer Services and Building options, be it renovation or new build.

Asset Management Improvement Program

® As at 30 June 2020 condition surveys for the entire Community Facilities portfolio have been completed. The condition surveys have confirmed that it is an aging portfolio, with several key themes including the presence of Dux- Quest plumbing, dated building elements, historic leak and moisture evidence. Staff are in the process of quality assuring the survey data and will develop plans for implementation as part of the Long Term Plan from 2021 onwards.

Performance measures summary

· There are 15 KPIs in the Community facilities and community support activity. Only 14 of these have targets as one is for recording and monitoring purposes.

Performance measures	Target	Result	Comment
Community facilities
Achieved	On target	On target	On target
Occupancy rate of available^{^[3]}housing for older persons units	97%	Achieved 98.8%	Q3 and Q4 result
Percentage of council-owned buildings that have a current building warrant of fitness (where required)	100%	Achieved 100%	Full year result
Residents (%) who are satisfied that public toilets are clean, well-maintained and safe	75%	Achieved 88%	Residents’ Opinion Survey result for 2019/20
Urgent requests in regard to public toilet facilities that are responded to within four hours	98%	100%	Q4 result
Users who are satisfied with halls	80%	92%	Q4 Result
Housing for older persons tenants (%) who rate services and facilities as good value for money	85%	96.1%	Annual survey result
Housing for older persons tenants (%) who are satisfied with services and facilities	85%	96.8%	Annual survey result
Not yet due
Users (%) who are satisfied with the standard of the library building facilities	85%	Next quarter	Due to Lockdown this KPI has been delayed and will be reported in Quarter 1 2020/21
Performance measures	Target	Result	Comment
Community support
On target	On target On target On target
Council’s social investment programme enables services to deliver on community priorities	Achieve	Achieved	Funding clinics were co-hosted by key community funders and council. One clinic was held in March in Ōtaki. Over 40 people representing community organisations attended. The second clinic was cancelled due to COVID-19. The social sector collaboration project with Kāpiti Impact Trust and Volunteer Kāpiti presented their first sector snapshot to the community. The snap shot is designed to create an understanding of our social and community sector and was developed with the sector. This work is funded through the Council’s Social investment programme. Additional support has been offered to social investment contract holders due to the demand in services post COVID-19. Reporting and Year 3 deliverables are being re-visited to ensure that service delivery supports social recovery.
Residents (%) who are satisfied with the Council’s community support services	85%	Achieved 89%	Residents’ Opinion Survey result for 2019/20.
Community connectedness and diversity projects and initiatives planned for year are progressed or completed	Achieve	Achieved	The annual Community Gardens activity had 10 events lined up for March to April. This initiative contributes to community resilience through food security activities and community learning opportunities. Unfortunately, only one event was held due to lockdown restrictions. This was held at the Otaki Library community garden and included a seed swap event. Council is working with Regional Public Health and a collective of local community organisations to facilitate a community peer support project to support the prevention of suicide in men living in Kāpiti. Council worked with City Mission and FunZone After School Care to launch the Kāpiti Sports Bank project. A project aimed at eliminating sport poverty and enabling young people to get involved with local sports. The Multicultural Council has recently changed its structure to become an independent group for Kāpiti. Council continues to support this group through administration and partnering on community events. Due to COVID-19events scheduled were cancelled. Council continues to support the New Comers network which is a collective of social services that work with ethnic communities. Age Friendly workshops and engagement events in partnership with Grey Power were only partially achieved due to COVID-19. Kāpiti Greypower have commenced a community survey to support the engagement phase of the Age Friendly project. Neighbours day events were not held this year due to COVID-19but early registrations had indicated that number would exceed last year celebrations.
Youth Development Centre opens and Youth development programme deliverables are achieve	Achieve	Achieved	Zeal Kāpiti commenced two new courses. A photography and a design course. Both of these courses continued during Lockdown through online digital platforms. Zeal partnered with Age Concern and the Youth Council to bring together the human library initiative. A full report back on their yearly contract will be presented to Council in August 2020.
Participants from the social and community sector are satisfied with the learning opportunities and workshops provided by Council	85%	Achieved	Council hosted a Tiriti o Waitangi workshop to support sector capability to better understanding the local iwi context and legislation under the Tiriti of Waitangi to work with iwi and provide equitable services for Maori. 30 people from 15 organisations attended the workshop The planned workshop called Equity in Action, was cancelled due to COVID-19but will be rescheduled for later in the year. It will show working examples of initiatives that put equitable outcomes at the centre of their work. Council supports the social sector network meeting every month. These network meetings will resume in July.
The youth council, older person’s council and accessibility advisory group are satisfied or very satisfied with opportunities provided to influence the content of council strategies, policies and project planning	Satisfied	Achieved	The Older Persons’ Council presented to Elected members in February. A brief history of the group and past events were showcased. The Youth Council presented the revised 2020 Youth Action plan to elected members. Followed by a presentation to Elected Members in June to highlight their findings during a recent youth engagement project for Youth Week 2020.
Monitor only
Estimated attendance at council-supported events	There is no target as we will use this for monitoring.	Monitor only	In July 2019, Over 300 participants attended No.8 Wire week, with some sessions in Te reo Māori for the first time. In June 2020, Over 400 people attended the first No.8 Wire week event. This project is a series of community events that builds community resilience through resourcefulness and showcases environmental sustainability practices Over 500 people attended the Kāpiti Age on the Go expo in Waikanae which was held in September 2019. 80 people representing the not-for-profit sector attended two funders’ forums. 60 people attended the end of year social sector activity acknowledging the not-for-profit sector held in December 2019. 100 young people attended a Youth event hosted by the Youth Council and Zeal The Youth Council held a stall at Takutai Kāpiti Climate Summit in March to engage young people about climate change and our local environment. During Youth week in May, the council supported the Youth Council to work with Zeal and Kāpiti Youth Support to hold a digital campaign to ask young people of Kāpiti about Kāpiti. They reached over 100 young people who shared their views. The findings were later presented to elected members. The Youth Council with the support of Council created an activity called chalk walk, a competition to get young people illustrating designs on pavements during Lockdown. The online competition reached over 7,000 people.

Economic development

4. Whakawhanake umanga

Purpose

This activity is aimed at generating greater growth, employment and prosperity in the Kāpiti region

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$1.95m (FY)

$2.01m budget (FY)

Operating Expenditure of $1.95 million is $60,000 favourable to budget mainly due to timing of interest and depreciation relating to capital works on Town centres.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.21m (FY)

$0.03m budget (FY)

Operating Income of $0.21 million is $175,000 favourable to budget mainly due to unbudgeted revenue received from Provincial Growth Fund and NZTA PP2O. This is fully offset by expenses incurred during the year.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$4.15m (FY)

$2.56m budget (FY)

Capital expenditure of $4.15m is $1.59m overspent mainly due to Town centres $1.1m (Kāpiti Road project budgeted in Roading activity).

Projects

The Strategic Land/Property Purchase Fund and the Town Centres project are the two main projects in this area.

Both are capex over $250,000 projects.

Both projects are regarded as on target from a Council perspective.

Performance measures (KPI)

Of the 3 KPIs two were on target as at the end of the fourth quarter 2019/20 and the third is unable to be reported on.

Summary of projects

There are two economic development projects reported in this activity report (the Strategic Land Purchase Fund and the Town Centres project). We have reported on the Elevate Ōtaki project developments on the next page. This is not included as a Council project in the chart on the previous page as Council is providing resource and funding support for the project but is not managing it.

Town Centres project
Work completed in this period: Project team continue to build designs for the SH1 Revocation related projects in Waikanae and Paraparaumu Town Centres. Planting has been completed on Kāpiti Road. Key issues and risks: SH1 Revocation works do not align with Town Centres projects leading to re-prioritisation and re-scheduling.
FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
2,232	1,135	(1,097)	$Ý	The overspend is funded from the revocation budget in Access and transport. The additional spend was to help complete the road widening of Kāpiti Road, taking advantage of additional NZTA funding

1. Strategic Land Purchase Fund
Work completed in this period: No settlements occurred during this period. Key issues and risks: There is no timeline set for this fund as it is dependent on when strategic parcels of land come up for sale. No risks have been identified.
FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
1,634	1,428	(207)	$Ý

Project status key
Complete On target Not on target On hold High risk

Ahead º▲ Lagging º▼ Underspend $Þ Overspend $Ý

Elevate Ōtaki
Work completed in this period: · The Identity Rollout Programme project being delivered by Talk Creative has been delayed due to COVID-19. The identity is expected to be officially released in the first quarter of the new financial year. · The business promotion social media opportunity that is available to all Ōtaki businesses was extended from February 2020 through to July 2020. This extension was largely driven by the delay in the identity release (due to COVID-19). Over 25 business have been promoted so far. · Elevate Ōtaki, supported Ōtaki Yard to commission Theo Arraj to paint an 18m x 5m mural on the Ōtaki Yard site. The mural incorporated an element of the Ōtaki Identity work and received national television coverage and was completed in early June 2020. Elevate Ōtaki also ran a competition at the opening encouraging shoppers to buy local. · The group are preparing a draft strategy for the next 12-18 months. This is currently on hold until the outcome of the Business Recovery plan is confirmed. ® COVID-19activities: · Elevate Ōtaki is a participating member of the “In it together, Practical support for Kāpiti businesses” initiative coordinated by Council. · Posts were shared via Elevate Ōtaki Facebook page promoting webinars, links to support etc to assist local businesses. · Pastoral phone calls were made to local businesses during lockdown. Any assistance identified in calls were supported where possible. · Local businesses who needed digital support in response to COVID-19were connected with relevant suppliers to assist with their digital needs. · Elevate Ōtaki are contributing to the Business Recovery Plan being coordinated by the ED Team. Key issues and risks: Ōtaki Identity project perception by the community. High potential for varied views on the topic by old and new residents and various sectors or groups. Works do not align with Town Centres projects leading to re-prioritisation and re-scheduling. (Ongoing).
FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
84	63	(21)	$Ý	As highlighted in the previous quarterly report, activities planned for the current year that have exceeded the budget, will utilise unused budget from previous years.

Other key developments

Economic Development Strategy Refresh

ü The refresh of the Economic Development Strategy continued during quarters 3 and 4, with the draft strategy presented to Council on 25 June 2020. Council approved the draft plan, with feedback now being sought from the community. The final draft strategy is due to be presented to Council on 30 July, subject to a review of feedback received.

ü Progress on the strategy was impacted by the COVID-19pandemic, which did cause a delay in the draft being finalised and engagement with some partners. The strategy was reviewed and updated to reflect the known potential impacts of the COVID-19pandemic and the need to develop a recovery plan.

Filming Requests

ü Filming of the feature film “Poppy” commenced during quarter three and tells the story of a young girl with Down’s Syndrome and how she overcomes barriers to realise her dreams to become a mechanic. The film is written and directed by local resident, Linda Niccol and supported by the New Zealand Film Commission’s 125 Fund set up to celebrate 125 years of womens sufferage, TVNZ and NZ on Air. Coastlands and other local businesses have been very supportive of the production, providing locations and office space while production was occurring.

ü Production commenced prior to the COVID-19pandemic, with filming in its final week when lockdown occurred in March 2020. As a result production was on hold during levels 3 and 4. The film was the first feature film in NZ to recommence filming after restrictions were reduced under level 2, with new protocols established with ScreenSafe and WorkSafe.

ü Discussions will occur about holding a premier screening of the film when complete. This was scheduled to occur in late 2020, however timelines might be impacted by COVID-19 and will be dependent on distribution rights for the film.IHC Foundation and private philanthropic funders.

Work Ready Kāpiti

ü Funding for Work Ready Kāpiti (WRK) has been extended for a further 12-month period.

ü Their work programmes were significantly impacted by COVID-19, with schools closing and moving to a virtual environment during lockdown. WRK were unable to deliver the Work Ready Passports during this period (which were delayed at the printers due to COVID-19) and were unable to set up the Employer Meets or work experience activities.

ü Following the change in lockdown restrictions Ōtaki College, Paraparaumu College and Kāpiti College all have students now engaged in starting their Work Ready Passports.

ü Te Rito College is now also a participant in all three programmes. They are also translating the Work Ready Passport to Te Reo Maori.

ü Students are now registering for the Employer Meets that will be occurring in September/October 2020.

Pop Up Business School

ü The Kāpiti Coast Pop Up Business School programme was delivered from 22 June – 3 July 2020. This is the third time that the programme has been delivered in Kāpiti.

ü Because of the COVID-19 Pandemic, the programme was structured to run as a mixture of interactive online and venue based sessions. This included a trade show hosted by Coastlands Shopping Centre.

ü There were over 50 participants in the 10 day course, with participants comprising of a mixture of new and exisiting business owners.

ü A number of the businesses have already established websites and facebook pages as part of the programme, with the following webpage providing links to some of the businesses from the course https://www.Kāpiticoastnz.com/business/pop-up-business-school-class-of-2020/

Marketing and Business Communications – COVID-1919

In response to the COVID-19Pandemic, a number of specific marketing and business communication activities were undertaken. This included:

Establishment of a local business services group - to ensure there was good coordination between the various local business support groups. Activity included delivery of regular communications to the business community, delivery of business focused webinars, creation and delivery of a series of three online workshops on how to take a business digital including how to set up a website, online store and a social media marketing strategy. This series of workshops remains available online.

Creation of a new COVID-19support for business section on both the Council and KāpitiCoastNZ websites - 7 of the 10 most popular pages on the website during Q4 were the COVID-19 specific information pages.

The KāpitiCoastNZ.com pages provided information to businesses about support available and included areas such as: Unite for the recovery, Understanding our economy, Advice, webinars and livestreams, Taking your business digital, Support for hospitality sector.

Creation of a dedicated #LoveLocal website section on KāpitiCoastNZ.com - This included information on: Businesses open in the Kāpiti Coast, Get moving and get active – online, Find local groups, Cancelled & postponed events, Stay entertained at home

Creation of online searchable map of open local businesses - The map had over 2,000 unique views and showcased over 215 local businesses.

Creation of #LoveLocal facebook group to profile and promote local businesses – currently 2,277 members.

#LoveLocal campaign - involving competitions to attract members and grow community involvement within the #Lovelocal group

#LoveLocal video series - to promote and profile local businesses. This video series has been hugely popular in profiling businesses within the community and has helped share stories about the COVID-19 impacts on businesses in the community and how they have adapted. The video series has also grown the audience of the KCDC Facebook page with engagement data outlined below:

Business	Engagement on KCDC page	Engagement on Love Local page and public shares
NZ Proud (1 June 2020)	Reach: 5.5k Engagements 383	Reactions: 58 Comments: 7 Shares: 2
Figgy and Co (8 June 2020)	Reach 3.6k Engagements: 261	Reactions: 226 Comments: 23 Shares: 43
Precise Print (15 June 2020)	Reach: 3.8k Engagements: 173	Reactions: 217 Comments: 47 Shares: 24
Paekakariki Pops (22 June 2020)	Reach: 8.6k Engagements: 591	Reactions: 98 Comments: 19 Shares: 7
Hipsta (29 June 2020)	Reach: 13.9k Engagements: 1460	Reactions: 226 Comments: 32 Shares: 10
Heritage Barbers (6 July 2020)	Reach: 6.2k Engagements: 583	Reactions: Comments: Shares:
EnSoul (13 July 2020)	Reach: 5.2k Engagements: 516	Reactions Comments: Shares:
As at 15/07/2020	*Total reach: 46,800 people*

These pages have now been merged back into the main site in a refocus on destination marketing and recovery

Marketing Activity

Social media

10% growth in followers of the KāpitiCoastNZ Facebook page occurred in Q4. Followers were also increasingly engaged (up 28%) and posts reached more unique Facebook users (up 26%).

· Q4 – posts reached 240,779 unique users (increase of 26%) and engagement was with 14,884 (increase of 28%) unique users.

29 events were actively promoted in the quarter through post sharing and native posts as well as event listing in the events section. Posts reached 57,600 unique users and gathered 2,400 event responses.

Destination marketing remained a core focus with 8 targeted posts and a series of advertisements targeting key markets of the wider Wellington region, Manawatu and Auckland – two ad sets were created, one targeting families and one targeting couples or groups looking for an active and relaxing escape.

Website – www.Kāpiticoastnz.com

The “Business” section of Kāpiticoastnz.com went live during the period – 7 core pages that showcase economic data, business associations, available support, pathways for youth, business events and nationwide initiatives to support business.

Growth of users and sessions quarter on quarter by 35%.

We continue to attract new users each quarter while retaining a portion of loyal returning visitors. This is line with the core destination marketing approach to continue to grow our audience and reach.

In addition to COVID-19 specific activity, other activity included:

· Planning and execution of photoshoot to supplement and improve existing photographic library.

· Upload and promotion of new articles to the explore and business sections.

· Refresh of event pages profiling what is on offer in the district – Winter Events; Local Music Scene; School Holiday Activities; Theatre, film and dance; and Art and Exhibitions.

· Profile of local events such as Light the Night Steam Train and Market and Māoriland Film Festival.

Participation in WellingtonNZ marketing activity for region focused profile raising

· Visa Wellington on a Plate Greatest Hits, Explore Wellington special deals, and There’s a Wellington for Everyone campaign.

Major Events

The following events supported by the Major Events Fund were held in this period:

Tootsuite Music Festival (1 Feb) – This new ‘boutique’ music event was delivered on the grounds of Southward Car Museum. Inclement weather on the day and limited time for effective marketing meant that organisers didn’t achieve the attendee numbers they had been hoping for. Feedback shows that those who did attend really enjoyed the day, however market penetration was below expectations.

Xterra Race (1 Feb) – Delivered under the internationally recognised Xterra event brand, the Wellington Festival event was the first Xterra off road triathlon, duathlon and trail running event held in Kāpiti. Of the 1997 attendees more than 80% were from outside of Kāpiti and there were nearly 2 supporters for every entrant. The event was so popular that entries are already open for 2021.

Takutai Kāpiti (8 Feb) – The event was held at Ngā Purapura in Ōtaki. Climate experts presented at the Summit in the morning, while the community event afternoon allowed for informal opportunities to learn more about climate change in Kāpiti.

Ōtaki Kite Festival (15 & 16 Feb) – Otaki Promotions Group delivered a well-attended event. COVID-19 concerns meant that some international kite fliers could not attend and a blustery, cold Saturday reduced attendee numbers that day. Sunday was spectacular weather however and attendance reflected this.

The 7^th annual Maoriland Film Festival was due to be held in Otaki on 18-22 March. Prior to the event starting initial restrictions on travel meant that internationals visitors were stopped from entering New Zealand. On 16 March, Government announced that indoor and outdoor gatherings of 500 people or more should be cancelled. In order to enable some activity to continue assistance was provided to move screenings to smaller venues allow for reduced numbers however the decision was made on Tuesday 17 March to cancel the event.

Organisers were able to host a number of activities online during the lockdown period. Organisers are also hosting a “remount” event from 24 – 27 September, which will incorporate a number of the screenings originally proposed for the March event.

Performance measures

There are three key performance indicators (KPI) in the economic activity.

Performance measures	Target	Result	Comment
On target
The economic development strategy implementation plan deliverables are achieved	Achieve	Achieved	In addition to continuing to delivery Economic Development activities, Council has facilitated the refresh of the economic development strategy. The final draft is to be presented to Council on 30 July 2020 following the review of community feedback
Representatives of the business leadership forum are satisfied that the economic development strategy implementation plan deliverables are being achieved	85%	N/A	The business leadership forum was dissolved in the previous triennium. A new governance structure is proposed as part of the refreshed Economic Development Strategy.
The Māori Economic Development Strategy implementation plan deliverables are achieved	Achieve	Achieved	As part of the refresh of the Economic Development Strategy discussions have been held with members of TWoK and Iwi representatives about the development of the strategy in partnership. This has been supported by representatives and will be reviewed upon completion of the refresh. Deliverables under the existing plan were adjusted to take into considerations COVID-19 impacts.

Access and Transport

Purpose

To maintain, protect and improve our roading network and strongly encourage and support sustainable transport options.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$13.77m (FY)

$13.37m budget (FY)

Operating Expenditure of $13.77m is $400,000 unfavourable to budget mainly due to additional maintenance on the roading network . This is fully funded by NZTA.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$6.09m (FY)

$5.25m budget (FY)

Operating Income of $6.09 is $840,000 favourable to budget mainly due to additional NZTA funding for Capital works, and new funding for previosuly unsubsidiesd work (Kāpiti Road/scheme assessments).

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$5.91m (FY)

$8.00m budget (FY)

Capital expenditure of $5.91m was $2.09m underspent due to spending occuring under the Economic development activity (Town centres) on Kāpiti Road. Carry forwards have been identified of $497,000 for drainage and culverts due to delays in the Resource consenting process and $421,000 SH1 revocation.

Projects

The four significant projects in this activity are on target and completed.

Performance measures (KPI)

Of the ten KPIs, 6 were achieved, 1 was on target, 1 was not on target and 2 not achieved.

5. Putanga me to ikiiki

Summary of projects

The four significant Access and Transport projects are summarised below.

Sealed road resurfacing
Work completed in this period: Resurfacing of chipseal and asphalt sites has been completed. A total of 18.0 km of chipsealing and asphalt resurfacing was undertaken. Key issues and risks: No key issues or risks.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
1,282	1,270	(12)		Work programmed is complete. Additional spend is funded by NZTA

Footpath renewals and upgrades
Footpath work (renewals and new footpaths) has been completed. A total of 3,512 m of renewals have been completed. This is an area of 7,390 m2 (note that with the first year of increased budget in 2018/19 we completed 6,700 m2, after completing 3,147 m2 in the previous year).
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
1,008	930	(78)		Work programmed is complete. Additional spend is funded by NZTA.

2. SH1 revocation
M2PP Revocation of old SH1 is under way on the Raumati Straights. The installation of new storm water infrastructure comprises the initial works, with little to see above ground at this time apart from a lot of traffic control, however work is progressing well. Following the storm water works will come new footpaths, kerb and channel and a Roundabout at Raumati Rd intersection. Works will start soon with a change to the road lay out in Paraparaumu for a cycle by-pass linking Kāpiti Rd, Hinemoa and Amohia Streets. Works on the Kāpiti road widening was completed to take advantage of additional NZTA subsidy. Key risks/issues: Works within the town centres of Waikanae and Paraparaumu has now been postponed to 2021 due to the effect on the local businesses post COVID-19 downturn. There will be further updates on timing and a program for this in due course. Draft carry forward of $421,000 has been identified.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
330	1,848	1,517		Revised work programmed is complete. Works on the Kāpiti road widening was completed to take advantage of additional NZTA subsidy. Carry forward of $421,000 has been identified.
Minor Improvements programme
® Safety audit and road marking upgrade Rangiuru Rd/Marine Pde completed December 2019 ® Raumati Town Centre and Te Monana Road corridor design processes continue ® Preparing preliminary work for potential 21-24 NZTA funded Safety Improvement Programme
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status		Comment
1,578	1,491	(87)			Work programmed is complete. Additional spend is funded by NZTA .

Other projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Cycleways Walkways and Bridleways	93	159	66		The Waimea boardwalk was completed. The Weka Park Footbridge was designed, consented and the tender awarded although construction is delayed due to COVID-19. Jim Cooke Park cycleway was completed with 750m of 2.5m wide compacted gravel shared path.
Annual Reseal – incl carparks	186	187	1		Work programme is complete.
Street Lighting	180	240	59		Work programme is complete.
Drainage renewals – incl kerb and channel replacements	142	296	154		Carry forward of $497,000 to complete works next year has been identified for Drainage renewals and bridge repairs. $51,000 of the $497,000 carry forward is funded from other minor project.
Bridge repairs	34	326	292
Traffic services renewals	465	423	(42)		Work programme is complete. Additional spend is funded by NZTA.
Targeted roading projects – incl east-west connectors	241	650	408		NZTA business case process continues.

Other key developments

Network Planning

In addition to providing advice on resource consents received in the previous quarter 23 new resource consents were received by access and transport in quarter 3, and 28 in quarter 4. This brings the total for this year to 114. Advice has been provided at a number of pre-application, business start-up meetings and in response to 23 temporary events

The Draft Sustainable Transport Strategy was released for consultation in June 2020, and is on track to be finalised in October 2020.

Expressways

Physical works continue on PP2O and Fletcher Construction is liaising with Council and residents to enable the works. Travel planning and safety initiatives. There have been a range of safety initiatives including:

ü Education and child restraints advice given to the Plunket new parents group.

ü Parkwood village, Waikanae ran two mobility scooter safety courses for seventeen residents.

ü 120 residents at Summerset Village on Guildford attended a forum regarding road safety

ü Motorcyclists annual Shiny Side Up Bike Fest, sponsored by ACC and NZTA, with 2,618 motorcyclists attending the event that involved a mixture of safety demonstrations

ü Two Motorcyclist Suspension Rides with 14 riders attending, and 28 riders which covered practical motorcycle set up skills

ü Bicycle skills training at Otaki Primary school with Pedal Ready from GWRC for 54 students.

ü Twenty Child Restraint installations for local parents and grandparents during this period.

ü This year’s Movin’ March organised by GWRC was cut short by the COVID-19lockdown. Despite this record numbers of multi-modal active trips were recorded by the eleven Kāpiti schools involved. Paraparaumu Beach school won three Regional Art competition prizes and two students won $400 My Ride bicycle vouchers from Raumati Beach and Kapakapanui schools.

Performance measures

There are ten key performance indicators (KPI) in the Access and Transport activity.

Performance measures	Target	Result	Comment
Achieved
Residents (%) who are satisfied with the condition of footpaths	65%	Achieved (66%)	The cumulative result for all four quarters provides a score of 66%.
Number of serious and fatal crashes on district roads is falling (DIA mandatory measure)	5-year rolling average reduces each year	Achieved	There were 4 serious injury or fatal crashes in the third and fourth quarter, giving a five year rolling average of 9.6 (was previously 9.8).
Roads that meet smooth roads standards. (DIA mandatory measure)	Overall Smooth Travel Exposure is above 85%	Achieved	The Smooth Travel Exposure for 2019/20 is 90%.
Average cost of local roading per kilometre is comparable with similar councils in New Zealand	Achieve	Achieved	The average cost of roading is comparable with similar Councils.
Percentage of footpaths that fall within the service standard for the condition of footpaths as set out in the activity management plan. (DIA mandatory measure)	50% for 2019/20 (increases to 60% for 2020/21)	Achieved	2019/20 result was that, of the 20% of the network surveyed, 96% was in good or better condition.
Not achieved
Residents (%) who are satisfied with street lighting	85%	Not achieved (83.5%)	The cumulative result for all four quarters provides a score of 83.5%.
Percentage of the sealed local road network that is resurfaced (DIA mandatory measure)	5% (expressed as kilometres)	Not Achieved	18.0 km of surfacing was completed for 2019/20, which is 4.32%.
Percentage of service requests relating to roads and footpaths responded to within 3-5 hrs (urgent), 15 days (non-urgent. (DIA mandatory measure)	Roads 85% Footpaths 85%	Not Achieved	The result at the end of Q was not achieved with 74%. (2018/19 result was ‘Not achieved’)

Coastal management

6. Whakahaere takutai

Purpose

To assist in achieving the sustainable management of the coastal environment and to protect publicly-owned assets.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$1.14m (FY)

$1.17m budget (FY)

Minor variance.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.00m (FY)

$0.00m budget (FY)

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.50m (FY)

$0.67m budget (FY)

Capital expenditure of $500,000 was $170,000 underspent in the year due to COVID-1919. Carryovers for Coastal renewals of $100,000 and beach accessways $41,000 were identified.

Projects

The coastal renewals project is on target.

Performance measures (KPI)

Graph to be inserted by Marece.

Both KPIs were on target at the end of the fourth quarter 2019/20.

Summary of projects

Significant Coastal management projects this year are summarised below.

Coastal renewals
Work Completed: · Coastal assets renewals and replacements at Raumati Beach launching Ramp, Willow Grove and Rosetta Road – Expected completion for all 3 locations was on 30 June 2020, but due to COVID-19work completed only at Rosetta Road and Willow Grove locations. Raumati Beach launching ramp will be completed in August 2020. · Replacement of the retaining wall situated on the left bank at the mouth of Wharemauku Stream – Designs completed. Regarding the Resource Consent , commenced discussions with Iwi and Gretaer Wellington Regional Council. · The Wharemauku blockwall Long Term Solution – Option report completed and the original plan was to present the options to affected residents in March 2020. But due to COVID-19, it was not possible to have the discussions with community. As part of the Resource Consent conditions, KCDC need to prepare and submit a “Structure Removal and Replacement Plan” to Greater Wellington Regional Council by December 2020 for certification. Revised work plan at this stage is to complete the following tasks by December 2020: Ø Prepare and submit “Structure Removal and Replacement Plan” Ø Prepare Community consultation materails Ø Initial consultation with the affected residents · Raumati Seawall – Gathering information on Council responsibilities/ liabilities related to the Raumati Seawall is completed. According to the findings KCDC is responsible for replacement/ renewal of this 3km long seawall. Next step is to present to Councillors to obtain guidance on replacement options and include this project in the 2021 Long Term Plan. Work Planned for 2020/21 · Raumati Beach launching ramp - Completion of physical works. · Retaining wall situated on the left bank at the mouth of Wharemauku stream - Gaining GWRC Resource Consent for replacement. · Wharemauku Block Wall long term solution - Completion of consultation , completion of preliminary designs of the preferred option and lodgement of Resource Consent Application. · Raumati Seawall - Obtain legal advise and present to Council to discuss the next steps. · Paekakariki Seawall – Procurement of physical works and tender award. Finalisation of urban design component. · Asset renewals –Renewal of coastal assets (physical works) in following critical locations Ø Beach Road , Paekakariki Ø Several locations in Raumati Key issues and risks: There was no budget for the Paekakariki Seawall in 2019/20 and internal charges (KCDC) for processing the Building Consent ($74,000) was to be funded by the Coastal renewal budget. As a result, the carry over budget ($100,000) was lesser than the estimated ($171,775) and now left with a $211,000 Capex budget allocation for Coastal assets in 2020/21 financial year (111,000 from Annual Plan and $100,000 carry over). There is a substantial difference between the budget and the estimated cost of the volume of work planned to be completed.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
$342	$493	$151	Not on target	Carry forward of $100,000 was identified. Project is not on target mainly due to Raumati Beach launching Ramp, Williw Grove and Rosetta Road asset renewals were put “on hold” due to COVID-19.

Other key developments

Paekakariki Seawall is ready for construction (all the designs are completed, Resource and Building Consents granted) for when budget is available in the 2021/22 financial year. In April 2020, Council submitted an application to Government for consideration under the “Shovel Ready” project category. The project has been short listed for consideration and awaiting the descion on funding.

Old Coach Route – Resolving the ownership issue is still in progress. Initial information gathering is now completed and the next step is to gain legal advice before presenting to Council to decided on the proposed way forward.

Critical assets needing attention- Identification of critical assets (district-wide) needing attention is in progress. The plan is to complete this by October 2020 and renew/ replace assets need urgent attention in 2020/21 and add the remaining assets as a work programme in 2021 Long Term Plan.

Performance measures

There are two key performance indicators (KPIs) in the coastal management activity.

Performance measures	Target	Result (ytd)	Comment
On target
Respond within 48 hours to urgent requests to repair seawalls or rock revetments	90%	Achieved (100%)	There were 27 requests to date. Three of them were urgent and were responded to within 24 hours.
Stormwater beach outlets are kept clear	80%	Achieved (100%)	All beach outlets cleaned and kept clear.

Solid waste

7. Para ūtonga

Purpose

To provide accessible, effective and efficient waste management options, encourage waste minimisation, and provide landfill management.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$1.09m (FY)

$1.21m budget (FY)

Operating Expenditure of $1.09m is $120,000 favourable to budget mainly due COVID-19 delays to landfill maintenance.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.54m (FY)

$ 0.58m budget (FY)

Operating Income of $540,000 is $40,000 unfavourable to budget mainly due to waste minimisation MFE reduction.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.04m (FY)

$0.18m budget (FY)

Capital expenditure was $137,000 underspent mainly due to COVID-19 lockdown when no physical works were possible. Bad weather caused further delays to the final capping of the landfill. Carry forward of $124,000 has been identified for landfill capping.

Projects

The Otaihanga Landfill Capping project is a multi-year capex over $250,000 project (although it is coming to the end of its life and will be under $250,000 capex in the current year spend). It is on target.

Performance measures (KPI)

One of five KPI is not on target. The KPI regarding resident satisfaction with the waste minimisation education, information and advice available reported a satisfaction result of 63%, against a target of 75% for the year. Council is currently recruiting for additional waste minimisation resources to improve our services in this area.

Summary of projects

There is one solid waste significant project, the Otaihanga Landfill Capping project.

Landfill Capping
Initial capping works and stormwater control works started end February/early March at the South end of the Otaihanga landfill but were stopped during the COVID-19 lock down period as these works are not considered essential. The remaining are to be capped at 30 June is 7625m2. Wet weather has prevented these works from resuming in June and works will restart in spring when the weather is drier, likely in September/October. The aim is to finishs these works over the summer period. Key issues and risks: There is no financial risk, these works are part of the landfill provision budget which is a multi-year budget set up specifically for the capping project.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
43	167	124		Carry forward has been identified of $124,000.

Other projects

Project

Actuals
($000)

FY Budget
($000)

FY Variance
($000)

Status

Commentary

Minor projects

Planned upgrade works were not carried out as a result of COVID-19 lock down.

Other key developments

Two new team members joined the Sustainability & Resilience team mid-January:

ü A Waste Minimisation Advisor (full time).

ü A Project support Officer (full time, providing administrative support to the Sustainability and Resilience, Water and Wastewater Assets, and Stormwater and Coastal Assets teams).

A public education campaign on changes in plastic recycling was planned and rolled out, including new signage at transfer stations and advertising via various channels. From 1 July 2020, only plastics 1,2 and 5 are accepted in kerbside recycling and at the three drop off stations.

In February, the Council was briefed on the regionally developed Draft Solid Waste Bylaw and through the Council meeting on 27 February Council provided feedback on the draft Bylaw to the Joint Committee for the Wellington Region Waste Management and Minimisation Plan. A statement of proposal to start public consultation on the draft Bylaw will be presented to Council on 30 July.

Pre-lockdown and during lock down the team worked together with the communications team, collectors and facility operations to streamline messaging about kerbside recycling and facilities being closed to the public.

Waste minimisation activities included:

Installation and promotion of one set of public place recycling bins at Maclean Park.

Organisation and management of waste minimsation at three Council-run events (Waitangi Day, Movies in the Park, Takutai Kāpiti Summit).

Two Waste Audits (one for a local community organisation and at Ōtaki Library), followed by installation of a worm farm at Ōtaki Library.

Delivery of a composting workshop at Ōtaki Library.

Delivery of the Zero Waste Education programme to all eight classes at Te Horo School.

Delivery of talks to two community groups: Salvation Army Home Corp and Tui Women’s Institute.

Recommendations for 2019/20 New Technology and Seed Funding Waste Levy Grants were presented to Council on 19 March, resulting in $49,880 of waste levy funding being allocated to three projects adressing foodwaste and E-Waste.

A Waste Free Parenting workshop was run as an online workshop (due to COVID-19).

Performance measures

There are five key performance indicators (KPIs) in the solid waste activity.

Performance measures	Target		Result (ytd)		Comment
On target
Residents (%) who are satisfied with the standard of kerbside collections	85%		88.5%		This is the annual average score for 19/20. The score for Q3 was 89%, for Q4 86%.
Number of days disposal facilities are open	357 days per year		Achieved		Disposal facilities have remained open during COVID-19lock down to commercial collectors to provide essential services.
Licensed collectors are compliant with licence requirements	Achieve		Achieved		Regular collection monitoring has been carried out and found overall good compliance.
Illegally dumped waste is removed within two working days	85%		93%		This reflects the annual response rate for the year 19/20. Rates for Q3 and Q4: Q3: 94% - there were 70 requests, of which 66 were responded to within 2 days. Q4: 98% - there were 45 requests, of which 44 were responded to within 2 days. Note: Both Q3 and Q4 coincided with COVID-19 lockdowns Level 4 and Level 3.
Not achieved
Residents (%) who are satisfied with the waste minimisation education, information and advice available	75%	65.8%		This is the average score for the 19/20 year. Q3 score was 60%, Q4 score was 74%. It is proposed to consider amending the question through 2021 LTP as often verbatim information of the survey shows that residents provide feedback on waste services in general and often do not focus on waste minimisation education/information that has been delivered.

Stormwater

8. Whakahaere wai araha

Purpose

To provide a stormwater system to manage surface-water run-off from urban catchments while protecting the receiving environment, ensuring water quality and reducing risks to human life and health from flooding.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

$3.65m (FY)

F/Y Outlook
F/Y Outlook
˜

$3.83m budget (FY)

Operating Expenditure of $3.65m is $180,000 favourable to budget mainly due to weighted average cost of borrowings lower than planned.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.32m (FY)

$0.17m budget (FY)

Operating Income of $320,000 is $150,000 favourable to budget mainly monies received from M2PP. They have agreed to pay Council in lieu of undertaking lining works on several stormwater pipes they installed as part of the overall project. This has been allocated to help fund the organisation review.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$4.21m (FY)

$3.66m budget (FY)

Capital expenditure of $4.21m is $555,000 overspent due to the advancement of critical projects and investing on unbudgeted projects such as Stormwater Inputs for Kāpiti Gateway and Town Centre projects.

Projects

Two major projects on target by the end of the 2019/20 financial year.

Performance measures (KPI)

Six KPIs were all achieved by the end of the 2019/20 financial year.

Summary of projects

Stormwater projects have been organised into Major and Minor stormwater programmes, with each group treated for reporting purposes as a single project. Both programmes are capital expenditure $250,000 and above and are summarised below.

1. Major stormwater projects
The major stormwater projects cover the design and construction of major drainage systems to accommodate run off from less frequent storms (1 in 50 year or 1 in 100 year events). These projects include upgrading under capacity networks, network extensions, stream works, pumping systems etc. and the main purpose of major stormwater projects is to eliminate the risk of loss of life and damage to property due to flooding. The projects covered under this category in 2019/20 are mainly focused on alleviation of habitable floor flooding. Physical works completed : · Asset renewals in Paraparaumu 7 Catchment (Kena Kena) · Asset renewals in Paraparaumu 8 Catchment (11- 267 Manly Street) · Asset upgrades in William Street · Asset upgrades in Margaret Road Stage 1 Designs completed : · Moa Road flood wall · Paraparaumu 1 Catchment Asset Renewals · Paraparaumu 2 Catchment Asset Renewals · Asset upgrades in Raumati Road Area 1 · Asset upgrades in Moana Road , Otaki - Stage 2 · Asset upgrades in Sunshine Avenue · Asset upgrades in Titoki Street / Simpson Crescent/ Rewa Road · Asset upgrades in Riwai Road · Asset upgrades in Amohia Street (93-97) · Stormwater inputs for the Kāpiti Gateway project · Town Centre modelling work Phase1 · Stormwater inputs for Manly street culverts project Designs in progress : · Asset upgrades in Kena Kena catchment · Asset upgrades in Charnwood Grove · Alexander Bridge upgrade · Karaka Grove flood wall · Kakariki streamworks · Amohia catchment diversion · Asset upgrades in Richmond Avenue · Asset upgrades in Tennis Court Road/ Forest Avenue · Asset upgrades in Tilley Road · Asset upgrades in Park Avenue/ Kohekohe · Asset Renewals in Paraparaumu 3 Catchment · Asset upgrades Manly Steert/ Marine Parade · Town Centre modelling work Phase 2 Work Planned for 2020/21 : · Construction of design ready projects . · Completion of designs in progress. · Commence new design projects in priority areas as identified in the 2018 Long Term Plan. Key issues and risks: · District’s flood risk is getting higher. Nearly one third of the properties are in a flood zone. More than 50% of the stormwater infrastructure is under capacity for a 1 in 10 year event. Growth is heavily impacted by stormwater issues in the district. But the budget available for delivering major projects even in 2020/21 financial year is only $4.26m (physical works and designs) and this amount is not sufficient at all to complete the work planned for 2020/21. · With sea level rise and elevated ground water levels the “Hydraulic Neutrality” is becoming less effective and as a result catchment_ wide holistic solutions are needed to implement in order to address stormwater issues in new developments . These solutions are costly. · Addressing stormwater issues in the district will creat more land “flood free” which will promote growth in the district. However if the issues are not dealt in a timely manner , there is a risk of Kāpiti district not been attractive for future developments. · Flooding in the district has been an on going problem and if not delat in a timely manner, Council will continue to operate at a lower than desirable level in terms of asset management and service delivery.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
3,551	3,100	(418)	Complete	Overspent due to the advancement of critical projects to respond to flooding and investing on unbudgeted projects such as Stormwater Inputs for Kāpiti Gateway and Town Centre projects.

Minor stormwater projects
The minor stormwater projects include the design and construction of minor drainage systems to accommodate run off from more frequent storms (1 in 5 year or 1 in 10 year events). These projects include repairs to existing assets, construction of overland flow paths, minor stormwater upgrades and extensions including upgrading inlet control devices such as stormwater sumps (cost of each project is in the order of $10,000 to $100,000). Physical works completed : · Final 2 locations of 2018/19 , 14 location minor stormwater capex contract · 2019/20 minor stormwater capex contract · Margaret Road Stage 2 stormwater upgrades · Upgrading street sumps to “super sumps” in selected critical locations in the district Designs completed : · Awanui Drive stormwater upgrades · Kauri Crescent stormwater upgrades Designs in progress : · Matene Place stormwater upgrades Work Planned for 2020/21 : · Construction of design ready projects . · Completion of designs in progress. · Commence new design projects in priority areas as identified in the 2018 Long Term Plan. · 2020/21 minor stormwater capex contract · Continuation of district-wide sump upgrade programme to assist with street flooding. Key issues and risks: · Budget available for delivering minor projects in 2020/21 financial year is only $51,000 (physical works and designs) and this amount is not sufficient at all to complete the work planned for 2020/21.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
662	522	(140)	Complete	Overspent due to the advancement of critical projects to respond to flooding and upgrading street sumps in critical locations.

Other key developments

· In April 2020, submitted an application to Government requesting funds to deliver Stormwater projects ready for for construction under “Shovel Ready” project category. Project has been short listed for consideration and awaiting the descion on funding.

· In 2019/20 financial year there were 344 complaints compared to 332 in previous financial year.

· District-wide asset investigations : Stormwater survey 90% completed. CCTV and Manhole condition assesments completed in 17 catchments . There are 34 stormwater catchments in the district and 17 more to be investigated.

· District-wide water quality monitoring tender was awarded in December 2019 (for 4 years).

· District-wide flood hazard modelling tender was awarded in May 2020 (for 2 years).

· Completed 14.1km of open drain/stream cleaning (gravel extraction, machine cleaning and hand cleaning).

· Stormwater strategy and By Law, Hydraulic Neutarlity effectiveness and Global drain maintenance consent projects progressing well.

Performance measures

There are seven key performance indicators in the Stormwater Management activity.

Performance measures	Target	Result	Comment
On target
Median response time to attend a flooding event from notification to attendance on site (DIA mandatory measure)	Urgent = less than or equal to 24 hours	Achieved (median response time was less than 24 hours)	Year to date, there were 439 service requests and 344 were flooding related complaints. Of those 344 complaints, 84 were urgent and the median response time was 0 days (less than 24 hours). 2018/19 result was less than 24 hours.
	Non-urgent = less than or equal to 5 days	Achieved (median response time was 3 days)	The median response time was 1 day for the 260 non-urgent flooding related complaints. (2018/19 result was 3 days)
Percentage of all buildings that have been inundated due to minor flooding are visited within four weeks	90%	Achieved (100%)	Year-to-date there were 5 building related flooding requests (2 dwellings and 3 garages). Visited within 4 days. (2018/19 result was 3 days)
Number of complaints received about the performance of the district's stormwater system (DIA mandatory measure)	Less than 30 per 1000 properties connected to the council’s stormwater system	Achieved (15.31 per 1000)	The 344 flooding related complaints in the year to date translate to 15.31 per 1000 connections (estimated 22,464 connections). (2018/19 result was 15.15)
Number of buildings (habitable floors) reported to be flooded as a result of a less than 1-in-50-year rain event (DIA mandatory measure)	Less than 3 per 1000 properties connected to the council’s stormwater system	Achieved (0.089 per 1000)	There were 2 habitable floors affected by flooding events. This translates to 0.089 per 1000 connections. (2018/19 result was 0.00 as habitable floors were not affected by flooding in 2018/19)
Measure compliance with council’s resource consents for discharge from its stormwater system, by the number of: a) abatement notices; b) infringement notices; c) enforcement orders; and d) successful prosecutions, received by the council in relation those resource consents. (DIA mandatory measure)	None	Achieved (None)	There has been no non-compliance with Council’s resource consents for discharge from its stormwater system in 2019/20. (2018/19 result was ‘Achieved').
Major flood protection and control works are maintained, repaired and renewed to the key standards as defined in the council’s activity management plan (DIA mandatory measure)	Achieve	Achieved	Following major projects were completed - Asset renewals in Paraparaumu 7 catchment - Asset renewals in Paraparaumu 8 catchment - Asset upgrades in William street - Asset upgrades in Margaret Road Stage 1 All these projects were completed following the key standards as defined in the Council’s Activity Management plan. (2018/19 result was “Achieved”)

Wastewater management

9. Whakahaere wai para

Purpose

To provide wastewater (sewerage) infrastructure that protects public health and the natural environment and provides continuity of service for the Kāpiti community.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$7.90m (FY)

$7.97m budget (FY)

Minor variance.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.22m (FY)

$0.30m budget (FY)

Minor variance.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.91m (FY)

$1.70m budget (FY)

Capital expenditure of $910,000 was $790,000 underspent due to the Wastewater treatment plant (WWTP) consent $635,000 and reticulation upgrades $146,000. Both projects were identified as carry forwards.

Projects

There are three significant projects.

Additional Paraparaumu WWTP renewals works required above originally planned works following the clarifier failure. Ōtaki WWTP upgrade project is forecasting an overspend.

Performance measures (KPI)

All five KPIs were on target at the end of at the end of the fourth quarter 2019/20.

Summary of projects

There are three significant wastewater management projects, all of which are capex projects of $250,000 and above, these are summarised in the first three tables below. There are a further three under $250,000 capex summarised briefly in table 4 below.

Paraparaumu wastewater treatment plant (WWTP) renewals
Work completed in this period: · Returned activated sludge pumping station - preliminary design and procurement optioneering was completed. · Design for Clarifier No1 renewals was advanced. · Sludge dewatering centrifuges interim renewals – The rotating assembly in the larger centrifuge was replaced this quarter. This has allowed the existing assembly to be refurbished and stored as a spare unit. During this shut down the smaller centrifuge was also inspected and interim works undertaken. The findings of these inspections confirm that the timing of proposed replacements in the LTP is still viable. Key issues and risks: · The interim replacement of two of the three existing core treatment blowers, in advance of the major upgrades planned for FY2022/23, has been successful. The premature failure of one unit and the withdrawal of support by the current agent of this make of blower means advanced procurement of non-stock equipment under the planned 2021/22 upgrades is being considered. · The disruption to the national construction industry and global equipment supplies by COVID-19has meant constraints on the availability and movement of skilled overseas personnel and internationally sourced equipment. Careful consideration of procuremnt timing is required before certainty on forward works programmes can be attained. · Delivery of long lead mechanical/ electrical equipment will be impacted this year by ongoing COVID-19issues in Europe and Asia, affecting both manufacturing and shipping and so outside of Council control.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
294	283	(11)	$Ý

Paraparaumu WWTP – resource consent
The renewal of exiting resource consents for Paraparaumu WWTP. All current consents expire in 2022. · The project is now on a critical path to develop an application and the next phase of development of the full list of future treatment options. · Meaningful engagement with mana whenua in the re-consenting process is still sought. All our iwi have been invited to participate and to identify how this could be best achieved. · The draft project governance arrangements, vision and objectives, and engagement and communications strategy have been provided and continuing progress updates will be given as the work develops. Key risks/issues Additional work is required to complete an interim consent application for the discharges from the treatment plant. Delays in engagement and consultation on options has meant a full process can not be completed before the discharge consents expire, thus Council has commenced the development of an application for interim extension to the existing consents, in parrallel with development of options under the main application.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
219	695	476	$Þ	Carry forward has been identified of $635,000 across the activity.
Ōtaki WWTP upgrades
Land Discharge Treatment Area Upgrades (Discharge Consent Compliance) The upgrade programme is focused on effluent treatment (Land Discharge Treatment Area). Design is complete for upgrades, and procurement was planned for Quarter 3/4. Contract douments are under review. Whilst COVID-19 has affected the construction market and iwi laision, extensive in-house work has been undertaken to refurbish grounds and distribution equipment in the fields. The planting for grounds maintenance is now planned to be undertaken in the winter 2020 planting season, and thus costs will spread into FY2020/21 budgets.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Commentary
76	157	81	$Þ	Carry forward has been identified of $635,000 across the activity.

Other projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Other projects	319	560	241		Carry forward has been identified of $635,000 across the activity along with $146,000 of upgrades
Total	909	1,697	787

Project status key
Complete On target Not on target On hold High risk

Ahead º▲ Lagging º▼ Underspend $Þ Overspend $Ý

Other key developments

· A condition and capacity study of the Otaki Wastewater treatment plant has now been completed. This will be used to inform the required growth and renewal programme for the plant in the development of the 2021 LTP. In additon, a specialised treatment pond depth/sludge study was carried out in Quarter 3, using new remote scanning technology. This has highlighted further removal of sludge from the ponds is required to maintain the performance of this treatment process. Desludging and optimisation funding will be loaded into the AMP and LTP for future years.

· Following the adoption of the Tradewaste bylaw in 2019 the desktop study of tradewaste discharges in Kāpiti has now been completed. This identifies tradewaste discharges and a strategy to managee their risk to the safe operation of the wastewater treatment plants and compliacne with discharge consents. This information will be used to review tradewaste consents and improve tradewaste management and reporting practices.

· The condition study of the wastewater pumping stations has been completed. This has provided best practive inspection protocols, an improved understanding of the condition of critical pumping stations and a renewals profile for all pumping stations that will inform the 2021 LTP.

· Signficant work has been completed on developing the modals and flow scenerios to examine the performance of our wastewater networks. Using these the cost benefits of upgrades and renewals can be analysed against a standard for the containment of wastewater in the network. This will inform investment decisions in the 2021 LTP.

Performance measures summary

There are five key performance indicators (KPIs) in the wastewater management activity. All five were on target at the end of at the end of the second quarter of FY2019/20.

Performance measures	Target	Result (ytd)	Comment
On target
Median response times to sewage overflows resulting from a blockage or other fault measured by attendance time (from the time council receives notification to the time that staff are on-site) (DIA mandatory measure)	Less than or equal to 1 hour	Achieved	Median attendance time was 25 minutes, for 88 blockages or faults attended in this year. (2018/19 result was 20 minutes)
Median response times to sewage overflows resulting from a blockage or other fault measured by resolution time (from the time that council receives notification to the time that staff confirm resolution) (DIA mandatory measure)	Less than or equal to 5 hours	Achieved	Median resolution time was 1 hour and 38 minutes, for 88 blockages or faults resolved in this year. (2018/19 result was 2 hrs and 29 mins)
Number of complaints received by council about any of the following: a) sewage odour; b) sewerage system faults; c) sewerage system blockages, and d) council’s response to issues with the sewerage system. (DIA mandatory measure)	Less than 7.2 complaints per 1,000 connections to Council’s sewerage system.	Achieved (5.67 complaints per 1,000 connections)	115 complaints were received at the close of the year (from a total of 20,292 connections). (2018/19 result was 4.8 per 1,000)
Number of dry weather sewerage overflows (DIA mandatory measure)	At or below 2 per 1000 connections to Council’s sewerage system	Achieved (1.97 overflows per 1,000 connections)	There were 40 dry weather overflows this year; however, there were only two GWRC-Notifiable events this year (out of a total of 20,292 connections). (2018/19 result was 2.56 per 1,000)
Compliance with council’s resource consents for discharge from its sewerage system measured by the number of: a) abatement notices; b) infringement notices; c) enforcement orders; and d) convictions, received by council in relation to those resource consents. (DIA mandatory measure)	None	On target	No non-compliance actions in the first two quarters.

Water management

10. Whakahaere wai

Purpose

The key goal for the water management activity is ensuring a safe, affordable and sustainable long-term water supply solution for our district.

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$7.34(FY)

$7.64m budget (FY)

Minor variance.

Operating income

What we earn – fees, charges, grants etc
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$1.14m (FY)

$0.24m budget (FY)

Operating Income of $1.14m is $900,000 favourable to budget mainly due to higher than expected development contributions revenue mainly in Waikanae.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$1.62m (FY)

$10.09m budget (FY)

Capital expenditure of $1.62m is $8.38m underspent mainly due to delays on the Drinking water and safety resillance program(DWRSP) of $5.8m and network upgrade of $2m. Both projects were identified as carry forwards.

Projects

There are two water management projects. Both are over $250,000 capex projects. The DWRSP is not on target – design work will be completed this year but construction works are now planned for next year.

Performance measures (KPI)

Eight KPIs are achieved, two are not yet due and 1 is not achieved.

Summary of projects

The two significant water management projects this year are summarised below.

Drinking water safety and resilience project
The project was originally delayed to allow for a 3 waters procurment strategy to be undertaken and a consultancy panel to be developed and awarded. Since award in December 2019 the WSRP project has progressed well with some further delays occuring throughout quarter 3/4. This has been mainly due to the following reasons: § A change of KCDC Project Management in February 2020. § The completion of a concept design value engineering study that has optimised the detailed design scope of the project. This identified scope changes that will achieve the best value for money resilience improvements for the plant. § COVID-19-1919 – Design continued at a slower pace during this time, however some design items were put on hold due to not being able to complete various site investigations & testing. § The undertaking of a strategic review of water supply options for Ōtaki and Hautere schemes to confirm the best value for money investment for the future. This confirmed the current scheme should be progressed. Completed at the end of Quarter 3/4 of FY2019/20 are: Waikanae WTP Stage 2 – · As at end of June 2020, detailed design is at approximately 37% complete. · Value engineering study completed and a decision to construct a new resilient rapid mix tank in conjunction with the new clarifier. · Implementation into the detailed design of various scope changes resulting in the outcome of the Safety in Design and HAZOP workhops. · Deferring the modifications to the sludge process and upgrading of the existing clarifier to Stage 3. Ōtaki & Hautere – · Completion of optioneering design basis for Hautere, Tasman and Rangiuru WTPs. The activities planned for Quarter 1 of FY2020/21 are: Waikanae WTP stage 2 – § Completion of detailed design to approximately 80% including various on site investigations and testing. § Pricing of scope changes and reviewing of the construction costs. § Finalisation of procurement strategy § Implementation of the communications plan Ōtaki & Hautere – § Completion of costs estimates and options report for Hautere, Tasman and Rangiuru WTPs. To also include KCDC review and decision on options to proceed to preliminary design. Key issues and risks: § With delays in the completion of design and taking into account the tender and award period, construction is now programmed to commence around May 2021. § In order to bring forward the construction programme, an alternative procurement strategy is being reviewed. This is required due to the risk of the availability of a tier 1 contractor due to other 3-waters work commencing in the region at the same time.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
1,011	8,090	7,077	º▼ $Þ	The delay in the detailed design has caused underspend with Beca’s design contract compared to our forecast. The costs presented in the preliminary design report has indicated the design & construction costs for Waikanae Stage 2 Upgrade being approximately $3.8M over budget. With further value engineering, scope changes and the introduction of a new rapid mix tank the overall costs end up as $6.45M over budget. The existing clarifier & sludge upgrades will be deferred to Waikanae WTP Stage 3 resulting in Waikanae WTP Stage 2 being $3.52M over budget. Carryover of $6.5m has been identified.

Network renewals and upgrades
The consultancy for the design for the Tasman Road water supply main (to the Ōtaki CBD) was awarded under the water services panel following the delay pending the completion of the Ōtaki and Hautere water supply strategic review. Work on reactive lateral replacements is ongoing. The new Zone Meter for Ngaio Road installed in 2018/19 is now fully operational following connection to the mains power supply and SCADA monitoring. Completed at the end of Quarter 3/4 of FY2019/20 are; The design of the Tasman Road water supply main has been completed and tender documentation is being preapred for issue in quarter 1. The works will be undertaken in 2020/21.
FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
176	1575	1398	º▼ $Þ	Carryover of $1.4m has been identified

Project status key
Complete On target Not on target On hold High risk

Ahead º▲ Lagging º▼ Underspend $Þ Overspend $Ý

Other projects
Project	FY Actuals ($000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Network unplanned renewals	227	210	(17)		Delivered as planned
Minor projects	199	216	16		Delivered as planned

Other key developments

· The release of a new drinking water safety planning framework and gudiance material by the Ministry of Health in May 2019 has required a significant shift in the national drinking water safety risk approach. A series of 12 workshops on drinking water safety planning were completed in this quarter. This follows the completion of the water safety gap analysis and roadmap at the end of 2019. The Kāpiti study has resulted in a risk assessment that identifies an extensive schedule of improvements to the existing system and processes. This will inform the development of the drinking water safety improvement progamme in the 2021 LTP. Signficant water treatment upgrades and renewals are also already underway under the water safety and resilience capital programme.

· The desktop study of water contamination risk from private properties backflowing into the water supply network has been completed. Kāpiti is well positioned because all the districts small water meter connections have in built backflow prevention and signficant improvements were made to larger connections during the water metering project. The study idenities areas of risk and a draft policy to resolve these areas has been drafted. Further field work is require to verify individual installation requirements and inform the policy rollout in the LTP.

· Following the assessment of the security of Council’s drinking water supply bores in 2019 the designs for the improvements are now well advacnced. These improvements will further protect our precious ground water resource for the risk of contamination.

· A detailed assessment of the condition of the Paekākāriki Water treatment plant has been completed and a planned renewals programme developed to maintain the operational performance of this critical lifeline asset for the Paekākāriki community. This work will be used to refresh the 2021 LTP treatment plant renewals budgets.

Performance measures

Performance measures	Target	Result	Comment
Achieved
Median response times to a fault or unplanned interruption to our water network measured by attendance time (from the time council receives notification to the time that staff are on-site) (DIA mandatory measure)	Urgent = less than or equal to 1 hour	Achieved	Median attendance time was 13.5 minutes for 84 urgent water interruptions. (2018/19 result was 15 minutes)
	Non-urgent = less than or equal to 3 days	Achieved	Median attendance time was 3 hours for 577 non-urgent water faults. (2018/19 result was 3hrs, 27 min)
Median response times to a fault or unplanned interruption to our water network measured by resolution time (from the time that council receives notification to the time that staff confirm resolution) (DIA mandatory measure)	Urgent = less than or equal to 5 hours	Achieved	Median resolution time was 48.5 minutes for 84 urgent water interruptions. (2018/19 result was 1 hr, 38 min)
	Non-urgent = less than or equal to 4 days	Achieved	Median resolution time was 22 hours and 21 minutes for 577 non-urgent water faults. (2018/19 result was 25 hrs, 2 min)
Residents who are satisfied with the quality of council’s water supply (taste, odour, clarity)	80%	Achieved (86%)	The average result for the full year Resident Opinion Survey was 86%.
Peak water consumption in litres per person per day (l/p/d)	At or below 490 l/p/d	Achieved	Peak day water use for the year to date was 414l/p/d. (2018/19 result was 399 l/p/d)
Average water consumption in litres per person per day (DIA mandatory measure)	At or below 325 l/p/d	Achieved	Average use for year to date was 312 l/p/d. (2018/19 result was 301 l/p/d)
Performance measures	Target	Result	Comment
Percentage of real water loss from the Council’s networked reticulation system. (DIA mandatory measure)	At or below 23.6%	Achieved (21.3% loss)	2018/19 result was 18%
Not yet available
Measure the extent to which the district’s drinking water supply complies with: a) part 4 of the drinking-water standards (bacteria compliance criteria); and b) part 5 of the drinking-water standards (protozoal compliance criteria) (DIA mandatory measure)	a) Achieve 100%	Not yet due	Confirmed compliance results are not due until later in 2020 from the Drinking Water Assessors (DWAs). The result for 2018/19 was ‘Not achieved’ because of a corrupt data block causing a loss of compliance data on 1 September 2018. A programme of remedial measures is underway to avoid a similar data corruption reoccurrence. The work planned over 2019-22 through the LTP will resolve any issues with turbidity spikes causing non-compliance. (2018/19 result was ‘Not achieved’)
	b) Achieve 100%	Not yet due	Note that the Ōtaki and Hautere supplies will not be 100% compliant until upgrade work is undertaken which is programmed in the 2018 LTP for 2019–2022. (2018/19 result was ‘Not achieved’)
Not achieved
Measure the total number of complaints received by council, per 1000 connections, to council’s networked reticulation system, about any of the following: a) drinking water clarity; b) drinking water taste; c) drinking water odour; d) drinking water pressure or flow; e) continuity of supply; and f) council’s response to any of these issues. (DIA mandatory measure)	At or below 6.2 complaints per 1,000 connections	Not Achieved 6.34 complaints per 1,000 connections	A total of 155 ‘complaints’ were logged this year (31 water quality [taste/odour], 93 service requests for no water supply, & 31 low pressure enquiries). However, of the above 93 service requests for no water supply, only 84 were legitimately related to Council activity (as counted above). Thus, with a total of 23,020 connections, and a corrected total of 146 complaints, this translates to 6.34 complaints per 1,000 connections. (2018/19 result was 5.56 per 1,000)

Districtwide planning

11. Ngā kaupapa takiwa

Purpose

To establish the development framework for the sustainable management of the district's natural and physical resources.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$1.61m (FY)

$2.10m budget (FY)

Operating Expenditure of $1.61m is $490,000 favourable to budget mainly due to reduced appeal costs. Hearing costs for variation 2 were deferred and will now occur in 2020/21.

The Environment Court may seek further information relating to the remaining outstanding consent order, which the costs would now occur in 2020/21.

Operating income

What we earn – fees, charges, grants etc.
(Excluding Rates)

F/Y Outlook
F/Y Outlook
˜

$0.02m (FY)

$0.00m budget (FY)

Operating income of $20,000 favourably is due to a contribution from the Greater Welligton Regional Council towards forecasting costs.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.00m (FY)

$0.00m budget (FY)

Projects

The District Plan Review is the only significant Districtwide Planning project and is on target.

Performance measures (KPI)

Both Districtwide Planning KPIs were on target as at the end of the fourth quarter 2019/20.

Summary of projects

There is one significant project in this activity, the District Plan Review. It is an additional significant project that has greater than $250,000 but it’s all operational expenditure.

District Plan Review
® Two appeals (Maypole, Hedger) fully resolved. ® Two draft consent orders covering the last three appeals lodged with the Court (postscript - one consent order has since been issued by the Court; if the final consent order is approved by the Court this will complete resolution of all appeals). ® Council makes decisions on two of the three District Plan variations in process, being Variation 3 (County Road, Ōtaki), and Variations 4(A) – 4(H) (Miscellaneous Changes and Corrections). The period for appeals has now closed with no appeals lodged; this means Variations 3 and 4 are completed, leaving Variation 2 – Waikanae Beach and Beach Character Set Back Margin as the only remaining variation still in process. ® Hearings panel appointed for Variation 2 to the Proposed District Plan. Key risks/issues: § Environment Court may seek further information from Council relating to remaining consent order. This would incur unanticipated costs on District Plan 2020/21 budget and may delay making District Plan operative. § Appeals may be lodged on one or more of the remaining variations. This would incur unanticipated costs on District Plan 2020/21 budget and may delay making District Plan operative. § Council faces significant district planning costs in future years, largely as a result of central government amending legislation and issuing new national policy statements which require Council to review the District Plan. The existing LTP budget for District Planning does not provide for the costs of meeting these obligations.
FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
292	559	267

Project status key
Complete On target Not on target On hold High risk

Ahead º▲ Lagging º▼ Underspend $Þ Overspend $Ý

Performance measures

There are two key performance indicators (KPI) in the districtwide planning activity.

Performance measures	Target	Result (ytd)	Comment
On target
Residents (%) who agree that the district is developing in a way that takes into account its unique character and natural environment	75%	75%	The average result for quarters three and four is 75%.
Develop and monitor a strategic policy framework and research programme to underpin the district plan and long term plan	Achieve	Achieved	The 2018-21 policy work programme was adopted by Council on 24 January 2019. The Strategy and Operations Committee received an update on the policy work programme on 5 December 2019. The review of the Regional Land Transport Strategy and Library Strategy were both added to the work programme alongside a number of updates to project timeframes.

Regulatory services

12. Ratonga whakaritenga

Purpose

To manage a range of public health, safety and design needs associated with building control, resource consents, environmental health, food safety, animal control, noise management, alcohol licencing, designations and compliance.

Financial key:

Operating expenditure

The costs to operate this activity
(excluding overheads)

F/Y Outlook
F/Y Outlook
˜

$5.15m (FY)

$5.71m budget (FY)

Operating Expenditure of $1.61m is $490,000 favourable to budget mainly due to savings in Environmental Protection costs, EQP Building Assessment costs that were less than planned and personnel vacancies.

Operating income

What we earn – fees, charges, grants etc.
(excluding rates)

F/Y Outlook
F/Y Outlook
˜

$3.99m (FY)

$4.45m budget (FY)

Operating Income of $3.98m is $466,000 unfavourable to budget mainly due to the lower number of building and resource consents applications compared to planned.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.50m (FY)

$0.24m budget (FY)

Capital Expenditure of $496,000 is $258,000 overspent to budget due to the animal management centre. Additional funds were required for the renewal of the shelter to bring it up to a modern day standard in line with MPI guidelines.

Projects

There is one significant Regulatory Services project, the Animal Management Centre renewal.

Performance measures (KPI)

At the end of the 2019/20 financial year, six of the seven KPIs were achieved and one not achieved.

Significant projects

There is one significant Regulatory Services project summarised below.

Animal Management Centre renewal
On 1 October 2018 requirements for the management of companion animals in temporary housing facilities like an Animal Management Shelter came in to effect. The rules are contained within a code called Code of Welfare of Temporary Housing of Companion Animals (the Code). The Code explicitly outlines standards required for facilities that provide temporary housing. As a result of this new code, and the need to improve the working environment for the Animal Management Team, the Shelter underwent necessary upgrades and refurbishment. The upgrade started at the end of the third quarter and completed on 10 June 2020. The project was delivered within budget and almost on time. COVID-19 did delay the project but only by four weeks. The results from this upgrade will ensure the highest standard of care for animals in our Council facility while ensuring our staff are working in a safer and healthier environment.
FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Financial Commentary
496	238	258		The renewal of the Animal Management Shelter commenced in January 2020 and was completed in June 2020. The renewal project brought former shelter up to a modern day standard in line with MPI guidelines.

Other key developments

Regulatory Services

Throughout the COVID-19 alert levels public enquiries have been responded to by telephone and email. Application processing was able to continue remotely. It was however necessary to ‘park’ enquiries that required inspection during alert level 4 and a backlog developed. The offices were closed to the public until alert level 2 and it was not possible to provide face to face public interactions until distancing requirements were lifted under alert level 1. Face to face meetings are again possible by booking an appointment. Response via telephone and email remains the primary method for answering enquiries.

The Environmental Standards Team provided a number of essential services during alert level 4 and 3. The Public Spaces Animal Management staff responded to dog attack and threatening complaints, wandering and found dogs, and wandering stock. The staff monitored freedom camping sites, provided information to Police and also responded to complaints general freedom camping complaints. They assisted the Environmental Health Team in monitoring noise control complaints. This team had a very collaborative working relationship with Police throughout levels 4 and 3.

· Regulatory Services received a total of 2,859 service requests in the third quarter of 2019/20. Of those 2,714 (94.93 %) were responded to within required times.

· Regulatory Services received a total of 2,510 service requests in the fourth quarter of 2019/20. Of those 2,379 (95.08 %) were responded to within required times. Despite being in alert level 4 and 3 during this time, these numbers are only slightly lower than normal.

· Regulatory Services received 6 complaints and 20 compliments about service received in the third quarter, and 2 complaints and 14 compliments in the fourth quarter. This brings our annual totals to 14 complaints and 65 compliments.

· In the third quarter, 191 Land Information Memoranda (LIM) were issued, compared with 216 the previous year, with an average of seven days to issue.

· In the fourth quarter, 113 Land Information Memoranda (LIM) were issued compared with 161 the previous year, with an average of six days to issue. LIMs were issued remotely during COVID-19lockdown. Demand effectively dried up until real estate viewings were again possible. There was an initial surge as the market opened back up which has since settled.

· For the 2019/20 year 666 Land Information Memoranda (LIM) were issued with an average of 6 days to issue. All LIMs were issued within the statutory timeframes. Volume for the year was impacted by COVID-19lockdown effect on the real estate market and is 14% less than last year.

Building

The core work of the Building Team continued throughout alert levels 4, 3 and 2 except for inspections under alert level 4. Some other activities of the team were affected to varying degrees.

Staff all worked remotely under alert levels 3 and 4, one returned to work at the office under level 2, and all have returned under alert level 1.

Building consents processing: Our staff relocated to their homes with most of their equipment in response to COVID-19 lockdown. There was a forward workload already received which staff continued to work on remotely. The Simpli portal provided a mechanism for applicants to submit new applications and some applicants also used email for smaller consents. Workarounds had to be devised to substitute for office procedures, especially at the hand over points between teams.

· In the third quarter, 211 building consents were processed compared with 223 for the same quarter last year.

· In the fourth quarter, 222 building consents were processed (258 for the same quarter last year).

· For the 2019/20 year 1,022 building consents were processed compared with 1,040 last year. The average days to issue was 10 days. There has been only a marginal impact on consent volume to date as a result of COVID-19.

Building inspections: Only three inspections were undertaken under level 4 as construction sites were not operating, save an essential service project and a self-build project. Inspectors were given other tasks to undertake remotely. There was immediate demand when we moved to level 3 with 545 inspections undertaken in the period April 28 – June 2 (the period also included four short weeks with statutory holidays).

· 1,012 building consent inspections were undertaken in the third quarter, (1,127 for the same quarter last year).

· 860 building consent inspections were undertaken in the fourth quarter which included the alert level 4 lockdown when Building sites were closed, (1,293 for the same quarter last year).

· 4,561 building consent inspections were undertaken in the 2019/20 year, (5,460 last year). A lighter inspection load generally for the year and also impacted by COVID-19.

Code Compliance certificates: 26 CCCs were issued in the COVID-19 period, once inspections could resume under level 3 and limited staff were allowed back in the building under level 2. There was a backlog of CCCs to issue. Many of these have not been possible to issue within statutory timeframes. MBIE has advised that there is an expectation that not all statutory timeframes would be able to be met over this period.

· 151 code compliance certificates issued in the third quarter (191 for the same quarter last year)

· 127 code compliance certificates issued in the fourth quarter (202 for the same quarter last year)

· 671 code compliance certificates issued in 2019/20 (892 last year)

BWoF audits: No inspections were possible under alert level 4. Many businesses were not open during alert levels 2 and 3. These inspections have lead in time as they are arranged in advance and in practical terms audits have only re-commenced under alert level 1. Consequently, our audit targets cannot be met this year. IQP and owner inspections could also not occur during this period, and owners will not be able to issue BWoFs for the next year. Considerable work has been done, with MBIE providing advice as to a work around, whilst owners have not been able to comply with legislative requirements. 114 audit inspections were completed for the year against a target of 164.

Certification notifications: LINZ will only receive notifications in original hard copy form. Without access to printing, photocopying and scanning facilities when working remotely, there was a backlog when we returned to the office to work.

Resource Consents

The core work of the Resource Consents and Compliance team continued throughout alert levels 4, 3 and 2 except for subdivision and RMA compliance inspections under alert level 4.

Staff all worked remotely under alert levels 3 and 4, 1 returned to work at the office under level 2, and all have returned under alert level 1.

Resource consents processing: The Resource Consents and Compliance team were all working from home remotely during the period from 27 March to 2 June. The majority of resource consent applications are received electronically and the team has electronic processes in place which allowed processes to continue.

Site visits for resource consent applications were not undertaken during level 4 however through use of aerial photos, photos and application documentation and working proactively with applicants on site conditions, work could continue. For applications that officers considered a site visit necessary these were undertaken during level 3 which did not result in any significant delays to processing times.

Applications continued to be received during alert level 3 and 4 with 50 new resource consent applications and 9 deemed permitted boundary activity applications received during this time. Compared to the same period last year this was a reduction in approximately 20% of applications received. 33 resource consent decisions were issued and 7 deemed permitted boundary activities were issued during this period.

· The Resource Consents team issued 49 consents in the third quarter (compared to 48 resource consents in the same quarter last year).

· The Resource Consents team issued 41 consents in the fourth quarter (compared to 60 resource consents in the same quarter last year).

· The Resource Consents team issued 243 consents in 2019/20 (compared to 232 resource consents last year).

· This year all resource consents except one were processed non-notified and 75 had time extensions under secton 37 of the Resource Managemnt Act. For consents that did not have their statutory timeframes extended, the average processing time was 17 working days against a target of 17 working days.

· This year the Resource Consents team processed 45 permitted boundary activities, three certificate of compliance and four outline plan approvals or waivers. The average processing time for permitted boundary activities was seven days against a statutory timeframe of 10 working days.

Subdivision certifications approvals: certifications continued to be processed and issued during the period. Workarounds were put in place to ensure that officers who had Landonline (LINZ) access could continue to sign certifications. Six s223 certifications were issued all within the statutory timeframes and ten s224 certifications creating approximately 60 new lots were completed.

· The Resource Consents team has processed 13 certifications for subdivisions in the third quarter (six in the same quarter last year).

· The Resource Consents team has processed 10 certifications for subdivisions in the fourth quarter (13 in the same quarter last year).

· The Resource Consents team has processed 55 certifications for subdivisions in 2019/20 (44 last year). These certifications related to a total of 345 new allotments (103 last year).

Subdivision and RMA inspections: No inspections were undertaken under level 4 as construction sites were not operating. Officers continued to work on documentation and resolving enquires remotely. There was immediate demand when we moved to level 3 with subdivision sites opening and work on the expressways commencing. 100 inspections were undertaken which related to 50 resource consents during the period April 28 – June 2 (the period also included 4 short weeks with statutory holidays).

Public enquires and pre-application meetings: Throughout this period public enquiries have been responded to by telephone and email. During level 4 RMA compliance enquires were also investigated to remotely. During this period there was a higher than usual demand for this service and on some weeks the team had to put some extra resourcing into this area to ensure that our internal KPI of responding to enquires within 24 hours was achieved.

The offices were closed to the public until alert level 2 and it was not possible to provide face to face public interactions until distancing requirements were lifted under alert level 1. Face to face meetings are again possible by booking an appointment. Response via telephone and email remains the primary method for answering enquiries.

Pre-application advice was provided remotely as well. The majority of advice provided was via email. The pre-application meeting process is very structured and can be conducted electronically with the team being able to coordinate and collate information which was sent out to applicants. Where applicants requested pre-application meetings these were held via Microsoft Teams or Zoom. During this period pre-application advice was provided on 10 proposals.

LIMs and District planning checks: LIMs were issued remotely over the period but the demand effectively dried up until real estate viewings were again possible. There was an initial surge as the market opened back up which has since settled at a lower than normal rate.

District Planning checks were also processed remotely. Prior to lockdown district planning checks were undertaken on a paper based system however within the first couple of weeks a new electronic system was implemented which allowed the district planning checks to be completed entirely electronically. These checks are now allocated to officers and strict internal timeframes have applied to ensure these are processed efficiently. The team now aims to complete these checks within a week and the backlog has been significantly reduced which has assisted the building team with their timeframes and efficiency when completing building consents.

Recruitment: The Resource Consents team inducted two new members remotely in April. The resource consents team have comprehensive induction material which assisted with the successful inductions of the new officers. Training was provided via Microsoft Teams and the Team Leader met daily with new staff to support them with their workload and introduction to the team. The benefits of this and the thorough induction was clear when staff returned to the office.

Environmental Health, Licensing and Compliance

· In the third quarter, 40 of the 199 currently registered food businesses which operate under a template food control plan were verified by the team. In addition, eight support, follow-up or investigative visits were undertaken.

· In the fourth quarter, 24 of the 199 currently registered food businesses which operate under a template food control plan were verified by the team. In addition, six support, follow-up or investigative visits were undertaken.

· In 2019/20, 178 of the 199 currenlty registered food businesses which operate under a template food control plan were verified by the team. In addition, 46 support, follow-up or investigative visits were undertaken during the year.

· 34 health licensed premises (hairdressers and miscellaneous premises) were inspected in the third quarter and 25 in the fourth quarter.

· A total of 68 of the 72 health licensed premises were inspected in 2019/20.

· In the third quarter inspections were carried out of all 10 premises for which an alcohol licence was granted or renewed. 22 additioal inspections of licensed premises were conducted. 16 special licences were issued, and 44 managers’ certificates were issued or renewed.

· In the fourth quarter inspections were carried out of all four premises for which an alcohol licence was granted or renewed. Seven special licences were issued, and 25 managers’ certificates were issued or renewed.

· In 2019/20 inspections were carried out of all 43 premises for which an alcohol licence was granted or renewed. 114 special licences were issued, and 217 managers’ certificates were issued or renewed, compared with 116 special licences and 199 managers’ certificates last year.

· Compliance Officers carried out 54 inspections in the third quarter and 20 inspections in the fourth quarter of swimming pool barriers, including taking follow-up action where the barrier was found to be non-compliant. This brings the annual total to 255.

Public Spaces and Animal Management

· The Public Spaces and Animal Management team received one urgent service request for ‘dog attacks’ in the third quarter, and one in the fourth quarter. All were on people. The team received no urgent service requests in the third quarter and no urgent service requests in the fourth quarter relating to ‘dog threatening’. All urgent requests were responded to within the required one hour.

· For the 2019/20 year the Public Spaces and Animal Management team received nine urgent service requests for ‘dog attacks’, six were on people and two were on other animals. The team received three urgent service requests for ‘dog threatening’, one was in relation to a person and the other two were in relation to other animals.

Performance measures

There are seven key performance indicators (KPIs) in the regulatory services activity.

Performance measures	Target	Result	Comment
On target
Average working days to process building consents will not exceed 17 days	Achieve	Achieved (10 days)	222 BC’s were issued in the fourth quarter. All were completed within 20 working days. In the full year 1,022 BC’s were issued with an average processing time of 10 days.
Average working days to process non-notified resource consents will not exceed 17 days	Achieve	Achieved (17 days)	For the fourth quarter the average processing time excluding consents deferred under s.37 was 17 working days. For the year the average processing time was 17 days.
All dog attack and threatening behaviour requests for service (classified as urgent) are responded to within 1 hour of notification	100%	Achieved 100%	There were 12 service requests for urgent dog attacks or threatening dogs for the year. (one in the third quarter and one in the fourth quarter). All were responded to within time.
Ratio of compliments to complaints greater than 3:1	Achieve	Achieved 4.64:1	Received 20 compliments and six complaints in the third quarter. Received 14 compliments and two complaints in the fourth quarter. For the year, 65 compliments and 14 complaints were received. (2018/19 result was 4.3:1)
Building Consent Authority (BCA) accreditation is retained	Achieve	Achieved	IANZ accreditation confirmed
Percentage of survey respondents that agree that the regulatory events are good or very good	93%	Achieved 100%	One stakeholder event was undertaken in the third quarter (All four attendees rated the event as excellent). No events were undertaken in the fourth quarter. Events scheduled in the fourth quarter were not progressed due to the COVID-19restrictions. (2018/19 result was 97.7%)
Not on target
Percentage of service requests that are responded to within corporate standards are responded to in time	95%	Not achieved 94.68%	9,855 of 10,411 service requests received were responded to within time. (2018/19 result was 95%)

Management KPIs

Target

Result

Comment

Percentage of alcohol, food, resource consent, and building consent application survey respondents agree that they have received good or better service.

75%

Achieved

79%

For breakdown of survey results see Chart 1.

(2018/19 result was 94%)

Percentage of users / respondents agree that pre-application processes are useful and informative.

75%

Achieved

94%

For breakdown of survey results see Chart 1.

(2018/19 result was 96%)

Chart 1: Application survey respondent’s results

Chart 2: Rating of pre-application services

Governance and tāngata whenua

13. Kāwanatanga me ngā tāngata whenua

Purpose

To manage our democratic processes, provide administrative support, facilitate community input to decision-making and provide information to our community in support of that. Responsibility for liaising with iwi to ensure that, through Te Whakaminenga o Kāpiti, they can contribute to council policy and practise.

Financial key:

Operating expenditure

The costs to operate council’s activities
(Excluding Overhead Allocation)

F/Y Outlook
F/Y Outlook
˜

$2.65m (FY)

$2.67m budget (FY)

Minor variance.

Operating income

F/Y Outlook
F/Y Outlook
˜

What we earn – fees, charges, grants etc
(Excluding Rates)

$0.74m (FY)

$0.71m budget (FY)

Minor variance.

Capital expenditure

Costs for our capital projects

F/Y Outlook
F/Y Outlook
˜

$0.45m (FY)

$0.44m budget (FY)

Minor variance.

Projects

No significant projects.

There are no significant projects in this activity this year. There are some projects that aren’t regarded as significant reported in the ‘Other projects’ table overleaf.

Performance measures (KPI)

At the end of 2019/20, three KPIs were on target, one not achieved and two not started.

Other projects
Project	FY Actuals ( $000)	FY Budget ($000)	FY Variance ($000)	Status	Comment
Civil Defence	-	13	13
EOC building renewal	-	3	3
Hardware	33	36	4	$Þ
Plant & vehicle renewals	415	393	21	$Ý

Other key developments

Governance

· Council adopted the Governance Statement for the 2019-2022 Triennium.

· Council approved the Triennial Agreement for the Wellington Region (2019-2022 Triennium).

· Following Parliament’s passing of an Urgent COVID-19Response Act, Council noted the temporary removal of the requirement that councillors meet “in person” in order to satisfy a quorum and agreed arrangements to enable members to attend Council meetings remotely. The Strategy and Operations Committee, with a reduced quorum of two members, was given all the delegated powers, duties and functions of the Council, except those specified in the Local Government Act, in order for the Strategy and Operations Committee to meet in the event that Council was unable to meet quorum requirements. Meetings of Council’s other committees and other decision making bodies (including Community Boards) were suspended and decisions that otherwise would have been considered by those decision making bodies would be referred to the Council or Strategy and Operations Committee for decision.

· Council adopted and amended set of Standing Orders for Meetings of Council.

· Council approved the Elected Members Remuneration, Expenses and Allowances Policy.

· Council approved the draft Kāpiti Coast Economic Development Strategy and Implementation Plan 2020-23 for public feedback.

· Council resolved to exercise its right to vote in the Electra Trust election 2020.

· There was one citizenship ceremony on 29 January which conferred citizenship upon 32 applicants. Their countries of origin included Iran, Britain, Samoa, China, Germany, France, Guinea, South Africa, and Holland.

· The Council received 89 requests under the Official Information Act in the third and fourth quarter. This compares to 119 in the third and fourth quarters last year.

· There were 8 Council Meetings, 2 Committee Meetings and 4 Subcommittee meeting in the fourth quarter. There were 27 briefings and 2 workshops.

Tāngata whenua

· Te Whakaminenga o Kāpiti (TWoK) met twice, on 4 February and 30 June 2020.

· A Waitangi Day event was held at Campbell Park, Paekākāriki. This event was developed in partnership between Ngāti Haumia ki Paekākāriki, Te Whakamimenga ō Kāpiti and the Council.

· Provided financial assistance to support Iwi with their response to COVID-19. The financial assistance of $90,000 ($30,000 to each of our three iwi) was funded from the existing iwi liaison budget in the current financial year.

· Iwi Representatives for Te Whakaminenga o Kāpiti were confirmed from Ngāti Toa Rangatira and Ngā Hapu o Ōtaki.

· Te Ātiawa ki Whakarongotai confirmed their withdrawal from Te Whakaminenga o Kāpiti.

· Planning for the Maramataka 2020/21 is underway, and is being led by Ngāti Toa Rangatira with support provided by the Iwi Partnerships Team. The launch is to take place on 10 July 2020 at Takapūwāhia Marae.

· Ongoing support was provided to iwi partners to engage within council activites.

· Ongoing support was provided to other internal Council activities to facilitate iwi engagement. This work continues to inform council on the critical values and aspirations that are significant to iwi and works towards meeting the legislative requirements on council in regards to iwi participation.

Performance measures

There are six key performance indicators (KPI) in the Governance and tāngata whenua activity.

Performance measures	Target	Result	Comment
On target
Council meeting agendas are available in hard copy in council service centres and/or district libraries within two working days prior to the meeting	100%	96%	The March Grants Allocation Sub Committee Waste Levy Agenda missed this deadline by 1 hour.
Māori have representation on standing committees of Council and tāngata whenua working parties contribute to significant Council work programmes	Achieve	In Progress	Te Whakaminenga o Kāpiti gave in-principle approval to the appointment of a Māori representative to the Council’s Strategy and Operations Committee, and agreed to convene a recruitment panel to manage the initial phase of the reruitment process. Te Whakaminenga o Kāpiti noted the opportunities for iwi nominations for decision-making bodies in this Triennium.
Number of households that have an emergency plan and kit sufficient for three days following an emergency event	70%	Achieved 80%	Residents’ Opinion Survey result for 2019/20 was 80% (2018/19 result was 70.5%)
Not achieved
Percentage of official information requests responded to within 20 working days	100%	99%	A single request breached the 20 working day target by one day due to a technical issue.
Not yet due
The memorandum of partnership is renewed each triennium	Not started	In progress	Members of Te Whakaminenga o Kāpiti discussed a piece of work to review the Memorandum of Partnership and the Terms of Reference and Meeting Protocol Document needed to be considered and undertaken in the context of wider conversations and other work that was already in progress including the recommendations of the Independent Organisational Review.
Te Whakaminenga o Kāpiti is satisfied or very satisfied with the partnership	Achieve	In progress	In progress

1. Unless a time extension is notified under LGOIMA (1987) Section 14 (1).

[1] Note that there are other work programmes and projects reported in the ‘Across Council Work Programmes’ section of this report (and in that chapter in Appendix A) that are not included in Figure 1.

[2] Previously known as the CEMARS (Carbon Emissions Measurement and Reporting Scheme) this scheme has been renamed the ‘Carbon Reduce’ scheme to align with the better known ‘Carbon Zero’ scheme administered by the same organisation - Toitū Envirocare (previously known as Enviro-Mark Solutions Ltd, a wholly owned subsidiary of the Government research organisation Manaaki Whenua - Landcare Research).

[3] Where ‘available’ units exclude those flats that are unavailable due to renewals or maintenance work being carried out.


AGENDA Strategy and Operations Committee Meeting
I hereby give notice that a Meeting of the Strategy and Operations Committee will be held on:
Date:	Thursday, 20 August 2020
Time:	9.30am
Location:	Council Chamber Ground Floor, 175 Rimu Road Paraparaumu
James Jefferson Group Manager Place and Space

Cr James Cootes	Chair
Cr Gwynn Compton	Deputy
Mayor K Gurunathan	Member
Deputy Mayor Janet Holborow	Member
Cr Angela Buswell	Member
Cr Jackie Elliott	Member
Cr Martin Halliday	Member
Cr Sophie Handford	Member
Cr Jocelyn Prvanov	Member
Cr Bernie Randall	Member
Cr Robert McCann	Member

Strategy and Operations Committee meeting	Contract
5 December 2019 (covering the period 1 July to 31 September 2019)	Contract 2018/C210 – Stormwater Asset Renewals in Paraparaumu Catchment 7. The Contract was awarded to Interflow New Zealand Limited for the sum of $640,227.
	Contract 2019/C247 – Kapiti Coast East West Connection Business Case. The Contract was awarded to Jacobs New Zealand Limited for the sum of $268,726.
	Contract 2019/C250 – K9 Kapiti Road Shared Path Project. The Contract was awarded to Brian Perry Civil for the sum of $1,156,919.
	Contract 2019/C278 – Traffic Counting Services 2019-2022. The Contract was awarded to Quik-Shot trading as AES Limited for the sum of $265,486.
	Contract – Youth Development Centre (and satellite services). Zeal Education Trust continues the nine-year term contract (currently in year five). Three-year renewal at $281,000 per annum.
5 March 2020 (covering the period 1 October to 31 December 2019)	Contract 2019/C313 – 2019/20 Minor Stormwater Capital Works in various locations. The Contract was awarded to Tatana Contracting Limited for the sum of $367,300.
	Contract 2019/C314 – Districtwide Stormwater quality Monitoring (48 months’ contract). The Contract was awarded to Cardno New Zealand Limited for the sum of $591,448.
	Contract – Animal Management Centre Renewal. The Contract was awarded to Focus Projects Limited for the sum of $390,440.
28 May 2020 (Council) (covering the period 1 January to 31 March 2020)	No Contracts