Agenda of Council Meeting - Thursday, 30 May 2024

Council Meeting Agenda

30 May 2024

10.1 2024-34 Long-term Plan - Reconfirming Deliberations

Kaituhi | Author: Sheryl Gavin, Principal Advisor Corporate Services

Kaiwhakamana | Authoriser: Mark de Haast, Group Manager Corporate Services

Te pūtake | Purpose

1 To help assist Council to consider and further deliberate on resolutions 7.1 B and 7.1 C from its meeting of 23 May 2024, Officers have provided five funding options (two existing with slight changes and three new funding options) and the impacts thereof on the financial strategy of the draft 2024-34 Long Term Plan (LTP).

He whakarāpopoto | EXecutive summary

2 An executive summary is not required for this report.

Te tuku haepapa | Delegation

3 Only the Council has the authority to adopt the 2024-24 Long-term Plan.

Taunakitanga | RECOMMENDATIONS

That the Council:

A. Receives and notes this late report;

B. Amends resolution CO2024/36 “That the Council does not rate fund the $4.7m operating cost shortfall for the 3 Waters services, noting its preference previously was to rate fund the shortfall.” to:

That the Council rate funds the $4.7 million operating cost shortfall for three waters services in 2024/25;

C. Amends resolution CO2024/37 “That the Council applies an average rate increase of 6% per year from 2025/26 to 2033/34 to build a resilient future and reduce debt, noting its preference was previously to apply an average rate increase of 7% per year across the same period” to

That the Council applies an annual rates revenue increase of 7% (after growth) from 2025/26 to 2033/34 to build a resilient future and actively reduce debt.

D. Amends resolution CO2024/54 “Including approved adjustments after public consultation consideration of the submissions, Council approves a draft average rates increase of 12.25% for 2024/25 of the LTP” to:

Including approved adjustments after public consultation and consideration of the submissions, Council approves a draft rates revenue increase of 17.19% (after growth) for 2024/25 of the LTP;

E. Will further consider and adopt the final audited 2024-34 Long-term Plan on the 27 June 2024.

F. Will set the rates (in accordance with Council’s Funding Impact Statement – Rating Policy) for 2024/25 on 27 June 2024, immediately following adoption of the final 2024-34 Long Term Plan.

Tūāpapa | Background

4 At its meeting on 23 May 2024, Council considered report 7.1 2024-34 Long-term Plan Submissions Deliberations. This report included the following resolution:

· 7.1 U - Council notes that Item 7.1 resolutions B and C will be brought back to the meeting of Council to be discussed with all Councillors who are present (Resolution #CO2024/55).

5 Item 7.1 resolutions B and C include:

· 7.1. B. That the Council does not rate fund the $4.7m operating cost shortfall for the 3 Waters services, noting its preference previously was to rate fund the shortfall. (resolution CO2024/36)

· 7.1 C. That the Council applies an average rate increase of 6% per year from 2025/26 to 2033/34 to build a resilient future and reduce debt, noting its preference was previously to apply an average rate increase of 7% per year across the same period. (resolution CO2024/37)

6 At the same meeting on 23 May 2024, Council also considered and made resolutions pertaining to report 7.3 Fees and Charges. The table below summarises the decisions and impacts on the draft rates revenue increase for 2024/25 to be further considered.

Item	Y1 Rates impact $	Y1 Rates Impact %
What we consulted on:		17.10
Debt funding the three waters funding shortfall	(4,700,000)	-5.18
Plus impact of interest expense of $4.7 million debt in year 1	220,900	0.24
Additional funding requests
Te Ara Korowai (Year 1 only)	30,000	0.03
Citizens Advice Bureau (Year 1 only)	35,000	0.04
Fees and Charges
Reduce Hall hire charge increases	63,000	0.07
Reduce Housing for Older Persons rent increases	212,756	0.23
Growth Assumption
Uplift in assumed growth of rating base (1.09% year to date vs 0.8% budgeted)		-0.29
Year 1 rates increase as per Council resolutions 23 May 2024		12.25

7 Given that Council is only reconsidering resolutions 7.1 B and 7.1 C, the table below shows the draft rates revenue increase in 2024/25 if the Council reverted back to its preferred option to rates fund the three waters funding shortfall as per option one of change proposal one of the draft LTP Consultation Document.

Item	Y1 Rates impact $	Y1 Rates Impact %
Year 1 rates revenue increase as per Council resolutions 23 May 2024		12.25
Add: Rates funding the three waters funding shortfall	4,700,000	5.18
Less additional interest expense of debt funding the $4.7 million funding shortfall in Year 1	(220,900)	-0.24
Possible Year 1 rates increase revenue increase for further consideration		17.19

He kōrerorero | Discussion

8 Council consulted on a preferred draft rates revenue increase of 17.1% (after growth) in Year 1 (2024/25) and annual draft rates revenue increases of 7% (after growth) for years two to 10.

9 Importantly, at its meeting on 23 May 2024, Council resolved a draft rates revenue increase of 12.25% (after growth) for 2024/25 and annual rates revenue increases of 6% (after growth) for years two to 10.

10 To help Council further consider these resolutions and deliberate further, Officers have considered five funding options (two existing with slight changes and three new options) and the impacts of these options on its draft LTP Financial Strategy. These options are:

1. 17.19% rates increase (after growth) in year one, annual rates increases of 7% (after growth) for years two to 10 (Existing base option with changes from 23 May 2024).

2. 17.19% rates increase (after growth) in year one, annual rates increases of 6% (after growth) for years two to 10. (Existing option with changes from 23 May 2024).

3. 12.25% rates increase (after growth) in year one, annual rates increases of 6% (after growth) for years two to 10. (New option).

4. 12.25% rates increase (after growth) in year one, annual rates increases of 7% (after growth) for years two to 10. (New option).

5. 12.25% rates increase (after growth) in year one, annual rates increases of 8% (after growth) for years two to 10. (New option).

11 For all five options, operating expenditure, service levels, the capital works programme, fees and charges and non-rates revenue were all assumed to remain the same as per the draft LTP consultation and decisions made on the 23 May 2024. The only change variables to each option are to rates revenue, increased debt and increased interest charges (where relevant).

12 S&P Global are Council’s independent credit rating agency and assess Council’s credit rating in June each year. They assess Council’s credit worthiness based on their own risk assessment model. Currently, Council has a AA (negative outlook) long term credit rating. S&P Global have reduced their assessment of the New Zealand local government Institutional Framework from Excellent to Good, to reflect the high level of uncertainty on the local government sector, due to ongoing central government reforms.

13 In developing the draft LTP Financial Strategy, Officers have addressed concerns previously raised by S&P Global regarding Council’s increasing operating costs, high debt levels, an increasing capital works programme and its deliverability. The draft LTP reduced operating costs, reduced the capital works programme for affordability and deliverability and focussed on actively reducing debt.

14 Officers are best preparing to maintain or improve Council’s current credit rating affirmation in 2024 but cannot commit to any certainty as to how options 1 to 5 will impact on Council’s credit rating. At the most basic level, funding core infrastructure operating costs from debt, instead of utilising the budget flexibility provided by rates, will likely be questioned and assessed independently by S&P Global.

Ngā kōwhiringa | Options

15 The table below summarises options 1 to 5 as stand-alone options, either at year 10 (2033/34) or covers the full ten-year period of the LTP as noted in the table.

Option	No debt reduction	1 17.19%/7%	2 17.19%/6%	3 12.25%/6%	4 12.25%/7%	5 12.25%/8%
Change in rates revenue for years 1 to 10 compared to option 1	N/A	N/A	$72 million reduction	$135 million reduction	$65 million reduction	$8 million increase
Rates affordability (at year 10)	N/A	7.5%	6.9%	6.6%	7.2%	7.8%
Debt headroom (at year 10)	$170 million	$422 million	$298 million	$210 million	$329 million	$455 million
Net debt (at year 10)	$415 million	$262 million	$338 million	$402 million	$330 million	$255 million
Net interest (at year 10)	$23 million	$16 million	$20 million	$23 million	$19 million	$16 million
Total debt movement (years 1 to10)	Nil	$153 million reduction	$78 million reduction	$13 million reduction	$85 million reduction	$161 million reduction
Net debt/ Operating revenue (at year 10)	199%	107%	149%	184%	140%	100%
Time taken for debt reduction of $10 million plus per annum	N/A	6 years	8 years	9 years	7 years	6 years

16 Considering that Long Term Plans are revised every three years, the table below summarises options 1 to 5 as a stand-alone options, either at year three (2026/27) or covers the first three-years only of the LTP as noted in the table below.

Option	No debt reduction	1 17.19%/7%	2 17.19%/6%	3 12.25%/6%	4 12.25%/7%	5 12.25%/8%
Change in rates revenue for years 1 to 3 compared to option 1	N/A	N/A	$3 million reduction	$18 million reduction	$15 million reduction	$11 million reduction
Rates affordability (at year 3)	N/A	5.7%	5.6%	5.4%	5.5%	5.6%
Debt headroom (at year 3)	$162 million	$149 million	$139 million	$110 million	$119 million	$129 million
Net debt (at year 3)	$288 million	$286 million	$290 million	$305 million	$301 million	$298 million
Net interest (at year 3)	$14 million	$13 million	$14 million	$15 million	$14 million	$14 million
Total debt movement (Years 1 to 3)	Nil	$1 million reduction	$2 million increase	$17 million increase	$13 million increase	$10 million increase
Net debt/ Operating revenue (year 3)	179%	184%	189%	206%	201%	196%

17 Option 1 is Council’s base option as this was the preferred option for the draft LTP consultation process. The table below compares each option 2 to 5 against option , either at year 10 (2033/34) or the comparison covers the full ten-year period of the LTP as noted in the table.

Option	1 (Base) 17.19%/7%	2 17.19%/6%	3 12.25%/6%	4 12.25%/7%	5 12.25%/8%
Change in rates revenue for years 1 to 10 compared to option 1	-	$72 million reduction	$135 million reduction	$65 million reduction	$8 million increase
Rates affordability (at year 10)	-	0.6 % more affordable	0.9 % more affordable	0.3% more affordable	0.3 % less affordable
Debt headroom (at year 10)	-	$124 million less	$212 million less	$93 million less	$33 million less
Net debt (at year 10)	-	$75 million increase	$140 million increase	$68 million increase	$8 million reduction
Net interest (at year 10)	-	$4 million increase	$7 million increase	$3 million increase	-
Total debt movement (years 1 to10)	-	$75 million less	$140 million less	$68 million less	$8 million more
Net debt/ Operating revenue (at year 10)	-	38% increase	71% increase	31% increase	6% reduction
Time taken for debt reduction of $10 million plus per annum	-	2 years longer	3 years longer	1 year longer	-

18 As can be seen from the analysis above, options, 2,3,4, and 5 all reduce rates revenue. When rates funded operating expenditure exceeds rates revenue, a rates funding deficit occurs, and Council will need to debt fund these deficits to meet actual expenditure. Conversely, when rates revenue exceeds rates funded operating expenditure, a rates funding surplus occurs, and Council will be able to actively reduce debt using this surplus. Note that depreciation funding is a funding source for the capital works programme and is not excluded for being a non-cash expense.

19 The duration and size of the rates funding deficits per annum vary for each option. The table below shows the annual rates funding deficit (shown in brackets) or surplus (shown as positive) for each option across the ten years of the LTP. Interest is then calculated in addition to the rates funding deficit or surplus to determine the debt movement for the LTP. This is excluded from the table below.

Option	Y1 $m	Y2 $m	Y3 $m	Y4 $m	Y5 $m	Y6 $m	Y7 $m	Y8 $m	Y9 $m	Y10 $m	Total $m
17.19%/7%	-	1	-	4	6	10	18	26	35	47	148
17.19%/6%	-	-	(2)	-	1	3	9	14	21	30	75
12.25%/6%	(4)	(5)	(7)	(6)	(5)	(3)	(2)	7	13	21	13
12.25%/7%	(4)	(4)	(5)	(2)	-	4	11	18	27	38	82
12.25%/8%	(4)	(3)	(3)	2	5	11	21	30	42	56	156

20 As can be seen, all tables and analyses above support Council’s preferred position of a 17.19% rates revenue increase (after growth) in year one (2024/25) and annual rates revenue increases of 7% (after growth) for years two to ten of the draft LTP.

21 It should be noted that Council’s inflation (Local government cost index) is 2.9% for year 1 (2024/25) of the draft LTP compared to 7% CPI seen earlier this year and constriction cost increases of 30% across the sector. Council, in developing it’s draft LTP for consultation, has reduced its operating costs and capital works programme which is supported and enabled by this preferred financial strategy position.

He take | Issues

22 There are no further issues in addition to those already covered in this report.

Ngā kōwhiringa | Options

Mana whenua

23 There are no Mana whenua considerations arising directly from this report.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

24 There are no climate change issues arising directly from this report.

Ahumoni me ngā rawa | Financial and resourcing

25 There are no financial and resourcing considerations arising directly from this report.

Tūraru ā-Ture me te Whakahaere | Legal and Organisational Risk

26 This report was issued on the 29 May 2024 for the Council meeting to be held on 30 May 2024. The Local Government Official Information and Meetings Act (LGOIMA) requires that all Council meeting public agendas are made publicly available two clear working days in advance of the meeting.

27 This report has been issued late and has breached this LGOIMA requirement. This fourth quarter legislative non-compliance will be reported to the Risk and Assurance Committee at their next scheduled meeting on 15 August 2024.

28 This report was issued late due to the requirement for Officers to model new and more complex funding options (and their impacts) on Council’s draft 2024-34 Long Term Plan Financial Strategy as a direct of the resolutions passed on 23 May 2024.

29 Due to resource constraints, there is no further flexibility to defer this decision to a later date given the requirements of Council’s auditors and the Office of the Auditor General, to complete their audit and issue their opinion on Council’s final 2024-34 Long Term Plan for Council adoption on the 27 June 2024.

Ngā pānga ki ngā kaupapa here | Policy impact

30 There are no policy impacts arising directly from this report.

TE whakawhiti kōrero me te tūhono | Communications & engagement

31 There are no communications and engagement matters arising directly from this report.

Te mahere tūhono | Engagement planning

Whakatairanga | Publicity

32 A media release is planned to be issued following this meeting.

Ngā āpitihanga | Attachments

Nil

Council Meeting Agenda

30 May 2024

10.2 Voting in the 2024 Electra Trust Election

Kaituhi | Author: Kate Coutts, Advisor Democracy Services

Kaiwhakamana | Authoriser: Mark de Haast, Group Manager Corporate Services

Te pūtake | Purpose

1 This report seeks Council’s decision on whether it wishes to exercise its voting rights in the 2024 Electra Trust Trustee Election and, if so, who Council wishes to cast a vote for.

He whakarāpopoto | EXecutive summary

2 Council is a shareholder in the Electra Trust (the Trust), and as a shareholder may choose to exercise its right to vote for up to three of the four candidates in the biennial 2024 Electra Trust Trustee Election (the election). If Council does wish to exercise its right to vote, it must indicate by resolution which candidates it wishes to vote for before voting closes on Friday 7 June 2024.

Te tuku haepapa | Delegation

3 The Council is a shareholder in the Electra Trust and can vote in the biennial Trustee Elections.

Taunakitanga | RECOMMENDATIONS

A. That Council will not exercise its right to vote in the 2024 Electra Trust Trustee Election.

B. That Council will exercise its right to vote, and votes for …………….., …………….., and …………….. in the 2024 Electra Trust Trustee Election.

Tūāpapa | Background

4 The Trust owns 100% of the shares in Electra Limited on behalf of 46,333 electricity consumers (beneficiaries) connected to the lines network in Kāpiti and Horowhenua. The Trustees operate and are elected under the Trust Deed to represent the beneficiaries’ interests and protect their asset.

5 There are six Trustees elected for four years. In accordance with the Trust Deed, every second year, on a rotating basis, the three longest serving Trustees must either retire or stand for re-election; thus, creating three vacancies to be filled each election and providing an opportunity for change in representation.

6 The current Trustees are:

Sharon Crosbie CNZM OBE of Manakau (Chair)

Lindsay Burnell QSM of Ohau

John Yeoman BBS ACA FCG of Paraparaumu

Neil Mackay BCA of Paraparaumu

Brendan Duffy ONZM JP of Levin

Russel Longuet EL (Elec) of Ōtaki

7 Existing trustees Neil Mackay and John Yeoman are seeking re-election, and Lindsay Burrell is not seeking re-election.

8 Each cable or line connected to the network is an Installation Control Point (ICP). The Council has 299 ICPs, which makes it a considerable shareholder.

9 From 2014 to 2019, the Council resolved not to vote in the Elections. In 2020 and 2022, the Council resolved to vote in the Elections.

He kōrerorero | Discussion

10 The Trust has advised the following timetable for this year’s elections:

4 Nominations Open	5 Wednesday 28 February 2024
6 Nominations Close	7 12 noon Friday 19 April 2024
8 Voting Opens	9 Monday 13 May 2024
10 Voting Closes	11 12 noon Friday 7 June 2024
12 Official Declaration of results	13 As soon as possible on Friday 7 June 2024

11 The Trustees elect a Chair after each Annual General Meeting. Sharon Crosbie CNZM OBE of Manakau is the current Chair.

12 Nominations for the 2024 Electra Trust Trustee Election closed at noon on Friday 19 April 2024 and four valid nominations were received for the three vacancies.

13 An election is required to determine the three trustees and will be conducted by postal and electronic voting. Voting papers were sent to all qualifying customers on Monday 13 May 2024, with voting closing on Friday 7 June 2024.

He take | Issues

14 Due to its number of connections, the Council is a considerable shareholder, therefore any vote by Council will carry significant weight.

Ngā kōwhiringa | Options

15 If the Council decides not to exercise its right to vote, no further action will be required.

16 If the Council decides to exercise its right to vote, the Council may resolve to vote for up to three candidates.

17 The following four valid nominations were received for the three vacancies on the Trust:

Penny Gaylor

Corey Kennett

Neil Mackay

John Yeoman

18 The candidate profiles are appended in Appendix 1.

Mana whenua

19 Mana whenua and tangata whenua have not been consulted on this report.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

20 There are no climate change and environment considerations within this report.

Ahumoni me ngā rawa | Financial and resourcing

21 There are no financial impacts or considerations as a result of this report.

Tūraru ā-Ture me te Whakahaere | Legal and Organisational Risk

22 There are no legal and organisational risks to be considered in relation to this report.

Ngā pānga ki ngā kaupapa here | Policy impact

23 This decision does not have an impact on any Council policies.

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

24 An engagement plan is not required in relation to this decision.

Whakatairanga | Publicity

25 There are no further publicity requirements in relation to this decision. The decision will be made available on the Council website via the minutes of this meeting and other applicable channels.

Ngā āpitihanga | Attachments

1. Electra Trust Trustee Election 2024 Candidate Profiles ⇩

Council Meeting Agenda

30 May 2024

10.3 Te Newhanga Kapiti Community Centre

Kaituhi | Author: Dave Hardy, Manager Project Management Office

Kaiwhakamana | Authoriser: Sean Mallon, Group Manager Infrastructure and Asset Management

Te pūtake | Purpose

1 This report seeks Council:

1.1 To note the results of the Needs Assessment.

1.2 To agree next steps for the Te Newhanga Kapiti Community Centre (“Community Centre”)

He whakarāpopoto | EXecutive summary

2 An executive summary is not required.

Te tuku haepapa | Delegation

3 The Council may make a decision under section A.2 of the Kāpiti Coast District Council’s Governance Structure

Taunakitanga | RECOMMENDATIONS

A. Notes that the needs assessment showed strong community interest and support for the redevelopment of a community centre in the Paraparaumu Town Centre.

B. Notes that the building assessment recommends a completely new build as the best long-term value for money as well as the best outcome for users of the building.

C. Notes that the Te Newhanga Community Centre project aligns strongly with Councillors priority D to increase inclusive spaces for all by the targeted action of building strong community centres.

D. Supports the proposed demolition of the current building in FY2024/25.

E. Agrees to support further work to review how best this community space can be delivered to meet the current and future community needs, either separately or as part of another council facility.

Tūāpapa | Background

4 The Te Newhanga Community Centre has operated since 1996 having been built for the community by the community following a significant community fundraising effort. The name Te Newhanga was gifted by the Puketapu Hapu in recognition of the original landowners.

5 Te Newhanga operated as a space from which community programmes were delivered; social and community sector services organisations offered services, as well as offering rooms for hire to a range of community groups and individuals needing space for meetings and other activities. The centre was run as a CCO (Incorporated, with Council and Council appointed representatives) before becoming a Trust in 2016. Council provided some funding for the centre’s operations via the community support activity, and was responsible for maintenance etc.

6 In 2018, a different model for funding the community centre’s operations was developed as part of the move to the Social Investment approach to achieving social outcomes. There were no successful proposals for a social investment contract to manage the centre so the Council’s Connected Communities Team took on the role of Kaitiaki of the centre on a temporary basis until an appropriate arrangement to manage the centre could be agreed. This involved the Connected Communities team taking over day-to-day operations of the centre - administering venue bookings, developing and delivering community programmes from the centre and maintaining a presence on site.

7 By early 2019, building condition assessments uncovered significant weathertightness concerns and a remedial plan was put in place, including air monitoring measures, to allow the centre to remain open to the community. However, the condition of the building and uncertainty meant it would be inappropriate to enter into a contract for managing the centre with another organisation – so Council’s role as kaitiaki continued.

8 The centre was closed to the public during the Covid-19 restrictions, reopening in July 2020 after remedial works began to improve building conditions, and became a community hub with a focus on community resilience and welfare response during COVID. The Kāpiti Foodback and Volunteer Kāpiti were established as anchor tenants of the centre.

9 Further building tests concluded that parts of the building were unsafe for use, due to air quality issues and structural deterioration. Council made the decision to refurbish or replace the centre through the 2021 Long-term plan process and the centre was closed to the wider public in June 2021.

10 In late 2022 the Project Management Office took over the project and set up a Project Governance Board and Project Control Group. The Project Governance Board agreed on the following actions:

10.1 Carry out a further building condition assessment.

10.2 Undertake a Social and Community Needs Assessment.

10.3 Create a meanwhile space to provide the community a space to connect while a decision is made about the future of a community centre building.

He kōrerorero | Discussion

Building Condition Assessment

11 KRT Building Consultants were contracted to carry out a further building condition assessment. Their advice is that the remaining building is compromised and unusable.

12 This investigation, together with a review of earlier condition reports has determined that the building is subject to significant weathertightness failure. There is widespread failure of the external wall cladding which has led to the confirmed decay of external wall framing and the propagation of toxigenic moulds. There is also localised weathertightness failure of the roof. These issues have collectively rendered the building unusable.

13 The confirmed presence of high levels of moisture in the external walls and cladding has led to decay in some areas of wall framing as well as traces of toxigenic mould spores. These high levels are considered potentially hazardous to health.

14 Any remediation will not resolve the complexity and high-risk external envelope design that is highly susceptible to weather tightness issues.

15 The recommendation from the consultant was that a completely new build would provide the best long-term value for money as well as the best outcome for users of the building.

16 A new build, with a simplified external envelope with modern materials will be significantly cheaper to maintain and operate than the current configuration, with expected Operational (OPEX) savings of 15-25%. A new build of the same size footprint as we currently have would cost around $7m.

17 A single story detached build does not require a consent for demolition as per section 1.4. of the building code. The estimated cost of demolition is $400,000.

Operating Model

18 A future operating model for the Community Centre would only be able to be designed once there is a clear understanding of the physical space available and the outcomes we are wanting to achieve through the space. However, there are three high level assumptions we can make about potential operating models.

Operating Model	Role of Council	Resourcing Implications	Estimated Cost to Council
Council Led	Council run the facility	Moderate / Significant depending on model	Moderate / Significant depending on model
Community Led	Council identifies another organisation to run the facility, provides governance	Minor	Moderate depending on model and contracting situation
Partnership Model	Council develops a partnership with another organisation	Unknown	Unknown

Needs Assessment

19 Mobius was contracted in October 2023 to undertake a Social and Community Needs Assessment to obtain feedback from a range of people within our community to identify the district’s social and community needs. This need assessment is attached as Appendix One.

20 The approach undertaken for this needs assessment was mixed method and comprised desk research, workshops and interviews with key stakeholders and the wider community.

20.1 Interviews and meetings were held with Kāpiti Coast District Council staff members including the business areas of Parks, Property, Economic Development, Libraries, Strategy (housing developments) and Research and Policy.

20.2 Intercept and in-depth interviews with members of the Kāpiti community.

20.3 A community survey.

20.4 A survey and in-depth interviews with social and community organisations.

20.5 A workshop was held with Elected Representatives.

20.6 615 members of the Kāpiti community participated in an online survey.

20.7 58 intercept and in-depth interviews were conducted with members of the community (residents) are the core catchment areas for this study.

20.8 45 interviews were conducted with social and community organisations (including previous uses of Te Newhanga Kāpiti Community Centre) and other stakeholders.

20.9 25 social and community organisations provided feedback via a short online survey.

21 Demand is for a fit-for-purpose, adaptable, flexible and affordable community facilities.

22 There is no community space in Kāpiti that operates as a ‘managed’ community centre where members of the community can spend time (unless they are participating in an organised programme or activity).

23 The Kāpiti Impact Hub and the Ocean Road Community Centre at Paraparaumu Beach are two similar community facilities which mainly operate as venues for hire and while both report that they have additional capacity, neither are staffed as active community centres. Current hirers of these facilities include previous hirers of Te Newhanga Kāpiti Community Centre, many of whom have stated they would be interested in returning to a redeveloped Te Newhanga Community Centre.

24 Social and community organisations report that they lack visibility in the community and suggest that a redeveloped Te Newhanga presents an opportunity to be a central source of information for the members of the community they serve i.e. by ensuring information resources are in place (other than digitally) and that the centre becomes the go to place for any member of the community seeking information about social services (where to go, how they can assist).

25 While this needs assessment focused on the future needs of the Kāpiti community, during discussions with Council staff members, and various groups and organisations who used Te Newhanga Kāpiti Community Centre there was some general feedback provided that the centre was not fit for purpose, especially relating to the layout.

26 There is strong community interest and support for the redevelopment of Te Newhanga Kāpiti Community Centre:

26.1 More than 90% of all community survey participants believe that community spaces like Te Newhanga are important (giving a score of 7-10 out of 10 for this question). 65% gave a score of 10 out of 10 for this question and 71.5% gave a score of 9 or 10.

26.2 Most of the social and community organisations, and other stakeholders taking part in this study support the redevelopment of Te Newhanga.

26.3 There is strong support for any redevelopment of Te Newhanga Kāpiti Community Centre to be at the same location. 77.2% of survey participants and most of the social and community organisations taking part on this study believe that this is the right location for any redevelopment of Te Newhanga.

Meanwhile Space

27 The meanwhile space was set up as a temporary measure to bring the community together, while the future of the community centre was agreed. It has been built in a flexible way that enables us to shift the space and focus through the different stages of re-developing Te Newhanga Kāpiti Community Centre.

28 At this stage of the project, the meanwhile space has been designed to support the following outcomes:

28.1 Encouraging the community to reconnect with each other and Te Newhanga - Acknowledging the history of the Centre, how the community built the centre, its importance to the hapu. This has been enabled through the container which provides a timeline of the community centre’s history, and where Ātiawa may also wish to use to provide their history and how the name Te Newhanga came to be gifted.

28.2 Creating opportunities for the community to share their stories and provide organic engagement about the future of the Community Centre. This has been enabled through upgrading and / or creating multiple seating arrangements that encourage connections, and interactive activities such as the blackboard where questions are posed.

28.3 Creating ways for the community to re-engage with the Community centre and trialling different uses of space and connection as insights into how the design of a future space could be best utilised by the community. This has been enabled through interactive spaces to connect and play, such as planter boxes which are cared for by local community groups, an outdoor ping pong table, children’s road track, play pathway and sensory garden, as well as through the ‘garden shed’ which holds a range of equipment and games that are utilised by council staff and the community to hold events and programmes in the space.

29 The development of the meanwhile space has been done in collaboration with a number of our community organisations including Kāpiti Art Studio, the Kāpiti Horticulture Society, the Shed Project and the Kāpiti Bridge Club, as well as our Kāpiti Coast Youth Council and the Disability Advisory Group.

30 The Connected Communities team are working with other teams across Council, as well as local community organisations to develop a programme which supports the reactivation of the space.

He take | Issues

31 The building is subject to significant weathertightness failure with hazardous toxigenic mould spores present.

32 Recladding the building will not resolve the complexity and high-risk external envelope design that is highly susceptible to weather tightness issues.

33 Council is under financial pressure, a new build is estimated at $7m, with only $5.6m budgeted from 2027/28 financial year.

Ngā kōwhiringa | Options

34 At this stage the options for consideration would be to:

34.1 remediate the current building. Noting the above issues and advice, this option is not recommended.

34.2 demolish and investigate rebuilding a centre with a simplified external envelope using modern materials, noting that budget is not available until FY 2027/28.

34.3 demolish and undertake further work to review how best this community space can be delivered to meet the current and future community needs, either separately or as part of another council facility, such as the Paraparaumu Library or the proposed Indoor Sports Stadium, as per recommendations D and E.

Mana whenua

35 A member from Ātiawa ki Whakarongotai has a seat on the Project Control Group (PCG).

36 Mobius have worked with the Ātiawa PCG Rep to engage more broadly with Ātiawa ki Whakarongotai, Ngahina Trust and Puketapu hapu through the Needs Assessment process.

37 Ātiawa ki Whakarongotai, Ngahina Trust and Puketapu hapu have been advised of the potential demolition of the building.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

38 The increased weather events we are experiencing will only intensify the effects of the buildings lack of a weather tight building envelope.

Ahumoni me ngā rawa | Financial and resourcing

39 There is currently $5.608 million budgeted in the 2024-44 Long Term Plan as follows:

2024/25	2025/26	2026/27	2027/28	2028/29	2029/30	Total
-	-	-	$0.365m	$2.335m	$2.908m	$5.608m

40 If recommendation D is supported, which proposes to demolish the community centre in FY2024/25, the unbudgeted amount of approximately $400,000 required for this will be mitigated by anticipated underspends in other Capital Expenditure budgets and / or bringing forward the current available budget from 2027/28.

Tūraru ā-Ture me te Whakahaere | Legal and Organisational Risk

41 The Property Group has been engaged to undertake a Preliminary Section 40 of the site to understand the history of how Council became in ownership and any risks this may bring.

Ngā pānga ki ngā kaupapa here | Policy impact

42 There are no policy considerations.

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

43 A communications plan is in place. It identifies how we’ll update stakeholders and the community about the decision.

Whakatairanga | Publicity

44 Council will use its established communications channel to inform the community of decisions made throughout the project.

Ngā āpitihanga | Attachments

1. Te Newhanga Needs Assessment Final Report 2024 (under separate cover)


RĀRANGI TAKE AGENDA Hui Kaunihera \| Council Meeting
I hereby give notice that a Meeting of the Kāpiti Coast District Council will be held on:
Te Rā \| Date:	Thursday, 30 May 2024
Te Wā \| Time:	9.30am
Te Wāhi \| Location:	Council Chamber Ground Floor, 175 Rimu Road Paraparaumu
Darren Edwards Chief Executive

Mayor Janet Holborow	Chair
Deputy Mayor Lawrence Kirby	Deputy
Cr Glen Cooper	Member
Cr Martin Halliday	Member
Cr Sophie Handford	Member
Cr Rob Kofoed	Member
Cr Liz Koh	Member
Cr Jocelyn Prvanov	Member
Cr Kathy Spiers	Member
Cr Shelly Warwick	Member
Cr Nigel Wilson	Member