Agenda of Strategy, Operations and Finance Committee Meeting

Strategy, Operations and Finance Committee Meeting Agenda

5 December 2024

1 Nau Mai | Welcome

2 Karakia a te Kaunihera | Council Blessing

I a mātou e whiriwhiri ana i ngā take kei mua i ō mātou aroaro

E pono ana mātou ka kaha tonu ki te whakapau mahara huapai mō ngā hapori e mahi nei mātou.

Me kaha hoki mātou katoa kia whaihua, kia tōtika tā mātou mahi,

Ā, mā te māia, te tiro whakamua me te hihiri

Ka taea te arahi i roto i te kotahitanga me te aroha.

As we deliberate on the issues before us,

We trust that we will reflect positively on the
communities we serve.

Let us all seek to be effective and just,

So that with courage, vision and energy,

We provide positive leadership in a spirit of harmony and compassion.

3 Whakapāha | Apologies

4 Te Tauākī o Te Whaitake ki ngā Mea o te Rārangi Take | Declarations of Interest Relating to Items on the Agenda

Notification from Elected Members of:

4.1 – any interests that may create a conflict with their role as an elected member relating to the items of business for this meeting, and

4.2 – any interests in items in which they have a direct or indirect pecuniary interest as provided for in the Local Authorities (Members’ Interests) Act 1968

5 He Wā Kōrero ki te Marea mō ngā Mea e Hāngai ana ki te Rārangi Take | Public Speaking Time for Items Relating to the Agenda

6 Ngā Teputeihana | Deputations

Nil

7 Ngā Take a Ngā Mema | Members’ Business

(a) Leave of Absence

(b) Matters of an Urgent Nature (advice to be provided to the Chair prior to the commencement of the meeting)

8 He Kōrero Hou | Updates

Nil

9 Pūrongo | Reports

9.1 Economic Development Strategy 2024-2027

Kaituhi | Author: Gina Anderson-Lister, Strategy Manager

Kaiwhakamana | Authoriser: Kris Pervan, Group Manager Strategy & Growth

Te pūtake | Purpose

1 This paper seeks your endorsement of the Economic Development Strategy 2024-27 and outlines proposed engagement with key stakeholders on the updated document in the new year.

He whakarāpopoto | EXecutive summary

2 An executive summary is not required for this paper.

Te tuku haepapa | Delegation

3 The Strategy, Operations and Finance Committee (SO&F) has delegated authority to consider this matter under section B.1 of the Governance Structure and Delegations (2022-25 Triennium).

Taunakitanga | RECOMMENDATIONS

That the Strategy, Operations and Finance Committee:

A. Note that the refresh of the Economic Development Strategy 2024-27 has been led by the Economic Development Kotahitanga Board, in line with its terms of reference.

B. Note that the refresh of the Economic Development Strategy is informed by community and sector feedback gathered on the Direction of Travel in early 2024.

C. Endorse the contents of the refreshed Economic Development Strategy 2024-27 which sets a simple, focused direction for collective action to improve economic opportunity in Kāpiti.

D. Note the following steps will be progressed in early 2025 to finalise the strategy in preparation for its release in March 2025:

D.1 Economic Development Kotahitanga Board engage with key stakeholders in December 2024 and January 2025 on the refreshed Strategy.

D.2 A supporting webpage is developed in January and February 2025 to create an interactive space for people to engage in the substantive detail of the final Economic Development Strategy 2024-27.

D.3 Economic Development Kotahitanga Board and Strategy, Operations and Finance Committee approve release of the final Economic Development Strategy, via website, in March 2025.

E. Note that implementation of the final Economic Development Strategy 2024-27 will be driven by the Economic Development Kotahitanga Board, under its new operating structure, with support from Council’s Economic Development team and the wider economic development ecosystem.

F. Note that progress against the final Economic Development Strategy 2024-27 will be reported to the Committee every six months.

Tūāpapa | Background

4 Promoting economic wellbeing is an important purpose of local government.^{^[1]} It is also one of the Top-10 Priorities for the Kāpiti Coast District Council, with the refresh of the current Strategy listed as an action for progress from 2024/25.

Economic Development Strategy 2020-23

5 Council’s current Economic Development (ED) Strategy was adopted in 2020. Significant progress has been made against this strategy with Councillors briefed on this on 20 August 2024, and receiving a close out report at the Council meeting of 29 August 2024. The briefing showed the Kāpiti economy’s strong performance against the national average and demonstrated several successful initiatives delivered through the Strategy.

6 Some activity set by the ED Strategy 2020-23 was expected to be completed by 2023, and has ended; whilst other activity has a longer life and continues to progress today. New activity will be identified as important to add to the ED Strategy 2024-2027, this will sit alongside the existing activity underway.

7 One of the major successes of the current Strategy has been the development of the Economic Development Kotahitanga Board (EDKB). The EDKB was established to oversee the implementation of the Strategy. The EDKB has steadily expanded its influence and has recently been working with Council to establish itself as an independent trust, with finalisation of the establishment due to be considered by Council on 28 November 2024.

Strategy review process

8 The current ED Strategy was written for a three-year period and has been under review since mid-2023. This review has been led by the EDKB with support from Council staff. The review has sought to focus on:

8.1 Addressing areas where our local economy lags behind.

8.2 Enhancing Kāpiti Coast’s competitive advantage.

8.3 Embedding economic development in the broader context of community values.

8.4 Integrating findings from Vision Kāpiti and Long-Term Plan 2024-34 engagement, as these recent engagements provided substantial insight into what our community values and aspires to for local economic development.

9 Elected members have been engaged at key points through the development of drafting the refreshed Strategy, as illustrated in Figure 1 (below). Several workshops and briefings were run while the Direction of Travel was being drafted and Elected Members were briefed on the draft Strategy and Action Plan on 14 November 2024. Feedback from Elected Members was positive, particularly regarding the proposed ‘plan on a page’ infographic of the strategy. Elected Members also noted positively the change in legal form of the EDKB, the new opportunities this provided for attracting funding, and were keen that work under the new strategy seek to enhance engagement with key iwi groups and the Kāpiti Business Chamber.

Figure 1: Strategy review key milestones

10 Community and sector views were gathered through the development of the Direction of Travel. This occurred through both direct engagement facilitated by the EDKB and a public survey. The main findings from this engagement are discussed at paragraph 20.

He kōrerorero | Discussion

Draft, refreshed, Economic Development (ED) Strategy 2024-27 (refreshed Strategy)

11 The refreshed Strategy is attached in Appendix 1 (with supporting material attached in Appendices 2 and 3) for your consideration and endorsement. This includes:

11.1 The refreshed Strategy itself which will be a 10-page, simple to engage document that explains where we have come from; where we are heading’ and what actions we will take to get there.

11.2 Appendices, which include more detailed information on elements of the ED Strategy. These will not be reported as part of the refreshed Strategy itself but will be part of the online material available through interaction on our website. Key elements include descriptions of the workstream areas, case studies across the priority areas, and a year-on-year work programme of actions to be progressed.

11.3 On this basis, we are seeking endorsement of the substantive material itself rather than the look-and-feel of the document which will be refined through January to March 2025.

12 The refreshed Strategy is closely aligned to the Direction of Travel, which you considered earlier in 2024. It has retained the high-level elements, however, some changes have been made because of feedback received. This includes:

12.1 Additional detail and context to show the relationship between economic development, the focus areas, and broader community wellbeing.

12.2 Additional focus on support for existing business through business networks and the new EDKB model.

12.3 Clarifying the respective roles of Council and the EDKB.

12.4 Additional content related to Māori economic rangatiratanga.

12.5 Refined the smart investment attraction priority action and added a priority action on inclusive employment.

12.6 Refined success measures and further developed supporting actions.

13 An Action Plan has also been drafted to be a supporting document appended to the refreshed Strategy (refer to Appendix 2), along with case studies of existing and planned activity (refer to Appendix 3). This approach ensures that we continue to build and expand on our successes to date, and also leaves opportunity to introduce new initiatives over the next three to five years.

Our strategic approach

14 The refreshed Strategy sets out a simple, focused direction for collective action to improve our economic opportunity in Kāpiti. The overarching vision is retained and updated, centred on three Focus Areas that align to the economic doughnut model. These are:

14.1 A resilient Kāpiti Coast economy based on productive and innovative clusters that are environmentally sustainable and future focused.

14.2 Kāpiti Coast residents and communities benefit from local training and career opportunities.

14.3 Kāpiti Coast is an inclusive community and is recognised as a great and easy place to invest and do business.

15 Aims have been refined to priority actions that capitalise on the momentum of the past three years. Figure 2 below shows how the new priorities relate to the previous strategy’s aims.

Figure 2 – refreshed strategy mapping of priority actions to previous aims

A screenshot of a computer

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16 The most significant change is in the associated actions and activities to put the strategy into action, included in the associated action plan (refer to Appendix 2).

Direction of Travel

17 The Focus Areas were tested through engagement on the Direction of Travel (DoT), which was released for feedback in February 2024. The DoT provided a suggested approach for our community and stakeholders to engage with, and sought feedback on three questions:

17.1 Do you think the priority focus areas are the right ones to build on the success to date and progress further towards our vision? Is there anything missing?

17.2 Do you support the use of Special Purpose Vehicles (SPVs) to help attract increased external investment for economic development activities?

17.3 Are we measuring the right things to know if we are having an impact? Do you know of other measures that might be appropriate?

18 A range of feedback was received against these questions as well as some more targeted feedback from groups such as Te Rōpū Pakihi and the Kāpiti Business Chamber. A review of the feedback shows general agreement with the focus areas and support for the EDKB to be an independent trust and utilise Special Purpose Vehicles to enable economic development initiatives and opportunities.

19 The measures included in the refreshed Strategy were endorsed by BERL’s Chief Economist, Hillmarè Schulze, who is a member of the EDKB. However, it appeared that respondents were unsure about the proposed measures with comments emphasising the need to evaluate success using broader quality of life measures. Several additional focus areas were also suggested, as was a stronger focus on Māori economic development and the contribution of Te Ao Māori to the local economy.

20 Figure 3 provides a summary of what we heard through engagement on the DOT, and what has been adjusted. A full summary of the feedback received is in Appendix 4.

Figure 3 – summary of changes from DOT feedback

Next steps

21 Over December 2024 and January 2025 the EDKB will further engage with key stakeholders to reflect the changes made in response to feedback on the DOT and the actions that will deliver on the strategy.

22 A supporting webpage will be developed in January and February 2025 to create an interactive space for people to engage in the substantive detail of the refreshed Strategy. We will come back to the EDKB and SO&F in March 2025 to approve the release of the final Strategy, via this webpage.

He take | Issues

23 The Committee is asked to endorse the refreshed Strategy. It sets the focus for activity, including that of the new Trust and Limited Liability Company which Council endorsed, in principle, to establish earlier this year.

24 Ensuring accountability for delivering against the refreshed Strategy will be of utmost importance. Going forward, the new legal entities noted in paragraph 23 will submit a plan for activity before the beginning of each year for Council agreement, and report on their progress at regular quarterly intervals.

25 Further to this, an annual Letter of Expectation between Council and the new entities will set expectations around delivery of activity and funding allocated from the business rate that Council collects annually.

26 The EDKB, and new entities, will be expected to lead across and work with the broader economic development ecosystem to ensure that business and industry is supported to thrive in our district. Memorandums of Understanding will be established between the EDKB, and new entities, and key stakeholders to ensure common goals and understanding of roles and responsibility is maintained.

Ngā kōwhiringa | Options

27 No options are proposed. Elected Members are asked to endorse the refreshed Strategy. Progressing a decision on the substantive material of the ED Strategy aligns with the broad feedback from the community and key stakeholders, which show support for improving our economy.

Mana whenua

28 Economic development is a significant focus for mana whenua and local Māori business. The refreshed Strategy has particular focus on enabling Māori economic rangatiratanga. This will be supported through growing opportunities for Māori economic development and creating a specific strategy to advance economic opportunities for Māori alongside our iwi partners.

29 Iwi Māori and Māori business representatives have been involved in the development of this strategy. Mana whenua are represented on the EDKB and the views of Māori business were captured through engagement with Te Rōpū Pakihi.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

30 The decision to endorse the refreshed Strategy does not have any direct implications for climate or the environment. However, the ED Strategy places a strong focus on sustainability and resilience. For example, regenerative agriculture and sustainable tourism are specific workstreams proposed in the Action Plan. This reflects community values on economic development and is linked to community aspirations for how the district should grow that Council heard through Vision Kāpiti.

Ahumoni me ngā rawa | Financial and resourcing

31 There are no direct financial or resourcing implications arising from this decision as the existing Budget for economic development will be used to fund the work proposed. For 2025/26 and 2026/27, actions have been set through the Long-term Plan process and are allocated in line with the annual plans proposed and discussed with Council by the EDKB.

32 The refreshed Strategy will guide the work of the new legal entities that are stood-up. Through the establishment period of introducing these entities, it is envisaged that Council / rate funding will gradually reduce as investment and new funding revenues are accessed. It is proposed to shift incrementally over time as follows^{^[2]}:

A graph showing numbers and percentages

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33 In practice, the reduction in Council committed funding from the business rate will be reflected by the return of an annual dividend/return to Council – over time, this will be netted out and the rates collected from business will reduce.

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

34 No legal or organisational risks have been identified.

Ngā pānga ki ngā kaupapa here | Policy impact

35 The refreshed Strategy is intended to replace the existing Economic Development Strategy 2020-23. The ED Strategy is one of Council’s five core operating strategies in its strategic architecture. It will guide Council and EDKB activities over the next three years.

36 Council is also working on the development of an Outcomes Reporting Framework. Once this is complete, we will check in on the Strategy to ensure alignment between the two.

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

37 Council and the EDKB have engaged with the sector and public through the Direction of Travel. This input was used to inform the draft Strategy. Given the level of change made between the Direction of Travel and the draft Strategy is not considered significant, further public engagement on the draft Strategy is not recommended. However, the EDKB will follow up with key stakeholders to discuss the final proposed product prior to publication in March 2025.

Whakatairanga | Publicity

38 A communications plan will be developed to support engagement on the Strategy, and its release in March 2025. Council will use established communications channels to inform the community of this decision and what it means. This will include joint communications releases in partnership with the EDKB and a web page.

Ngā āpitihanga | Attachments

1. Draft, refreshed Economic Development Strategy 2024-27 (substantive content) ⇩

2. Economic Development Strategy Appendix C - Action Plan ⇩

3. Economic Development Strategy Appendix D - summary case studies ⇩

4. Economic development Direction of Travel Survey Feedback ⇩

Strategy, Operations and Finance Committee Meeting Agenda

5 December 2024

9.2 Affordable Housing Trust: steps to settle the Trust

Kaituhi | Author: Stephen Cross, Housing Programme Manager

Kaiwhakamana | Authoriser: Kris Pervan, Group Manager Strategy & Growth

Te pūtake | Purpose

1 This paper updates you on the establishment of the Affordable Housing Trust, including:

1.1 Confirmation of the appointment of Trustees

1.2 The Trustees consideration of the Trust Deed and Relationship Framework Agreement, and

1.3 Final steps to settle the new Affordable Housing Trust.

He whakarāpopoto | EXecutive summary

2 An executive summary is not required for this report.

Te tuku haepapa | Delegation

3 The Strategy, Operations and Finance Committee has the authority to consider this matter.

Taunakitanga | RECOMMENDATIONS

That the Strategy, Operations and Finance Committee:

A. Note that the Independent Trustees have now been appointed to the Affordable Housing Trust using the process approved by Council on 29 February 2024.

B. Note the Trustees have considered the draft Trust Deed and Relationship Framework Agreement (“RFA”) which were approved in principle by Council on 29 February 2024 and have made suggested changes for consideration.

C. Note that Council has received legal advice on the changes and that changes proposed by the Trustees to do not affect the fundaments of the Trust Deed and in terms of the RFA are not substantive, therefore, subsequent Council approval of the documents is not required.

D. Note that further to the decision made by Council on 29 February 2024, the Mayor and Chief Executive have the delegation to finalise and agree the documentation with the Trust, enabling the Trust to be settled.

E. Note that the Trust will be settled on the 11 December 2024, and that discussion of a potential first project for the Trust will be discussed in February 2025.

Tūāpapa | Background

4 On 29 February 2024, Council:

4.1 Approved in principle the Trust Deed and RFA, documentation required to establish the Affordable Housing Trust. It was acknowledged that Trustees, once appointed to the Trust would consider the documentation and may suggest changes before the documents were finalised.

4.2 Resolved to delegate the power to finalise and agree the Trust Deed and RFA to the Chief Executive and Mayor. The documents were to be finalised following the receipt of feedback from the Trustees and after a review of suggested changes was undertaken by Council’s General Counsel to confirm that suggested changes were not substantive.

4.3 Approved the process for appointing Trustees.

He kōrerorero | Discussion

5 Trustees have now been appointed to the Trust, using the process approved by Council on 29 February 2024. Appointees to the Trust are as follows:

Trustee	Role	Biography
Murray Edridge	Council Appointed Trustee Interim Chair	Murray is the Wellington City Missioner and is the Council appointee to the Trust. Kāpiti based, he has held governance and leadership roles in business, community, church, and sporting organisations and has worked with children and families for many years, including as chief executive of Barnardo’s New Zealand and deputy chief executive in the Ministry of Social Development. He was ordained in 2023. Rev Edridge comes from a commercial background as a chartered accountant. He lives in Kāpiti and has been appointed interim chair of the trust.
Kim Tahiwi	Te Whakaminenga o Kāpiti appointed Trustee	Kim is a kaiarahi (leader) representing Ngā Hapū o Ōtaki on the Kāpiti Coast District’s independent Economic Development Kotahitangi Board.
Alison Cadman	Independent Trustee	Alison has worked in the community housing sector for 20 years. She is former chief executive of the Dwell Housing Trust, board member of the Winston Churchill Memorial Trust, and trustee of the Newtown Ethical Lending Trust.
Cindy Foote	Independent Trustee	Cindy brings 30 years of experience in property management to the Trust. She is the director/owner of local business Jade Property Management and has extensive networks in Kāpiti Coast District communities.
Greg Foster	Independent Trustee	Greg is territorial director of property and social housing with the Salvation Army. He has 25 years of experience working in governance and operational roles including Habitat for Humanity.
Waipuna Grace	Independent Trustee	Waipuna (Ngāti Toa, Ngāti Raukawa and Te Ātiawa) is the kaiwhakahaere ratonga pakihi business services and community manager of Ngāti Toa community housing provider Te Āhuru Mōwai. She is also a member of the Kāpiti Coast Economic Development Kotahitanga Board.
Alexandra Hare	Independent Trustee	Alexandra is an executive adviser and governance professional with two decades of experience in the energy, water, and environmental sectors. Alexandra currently serves in multiple governance roles within the infrastructure, environmental stewardship, and non-profit sectors in Aotearoa New Zealand. She is a member of Engineering New Zealand and the New Zealand Institute of Directors.

6 The Trustees have now met and considered the draft Trust Deed and RFA documents. Based on this review they have made some suggested changes for noting by Council.

7 As discussed with Elected Members on 29 October 2024, the key changes requested by the Trustees are in relation to the draft Trust Deed are minor in nature, as follows:

Clause / Section	Proposed amendment by Trustees	Council comments
Trust Name	Kāpiti Housing Solutions	N/A
Interpretation / Trustee Skills and Experience	Trustees will have one or more of the following skills listed.	Changes proposed so it is clear that the collective Trustees hold the requisite skills and experience, rather than each individual. This has always been the intention for the Trustees therefore is a minor change. Agree to change.
Registration and Status Clause 5.2, 5.3 & 5.4.	Remove wording “to be eligible for subsidies” and requirement to maintain status as a provider.	Council agrees wording is not required as the Trust will be required to maintain relevant requirements as an outcome of registration. Council agrees that the Trust as an independent entity should have the flexibility to decide to suspend or alter their status as a Community Housing Provider in the future if required. The intention has always been that registration as a Community Housing Provider (and the maintenance of this registration) is a decision for the Trust to make, rather than a critical requirement for the new entity. This is therefore a minor change. Agree to change.
Keeping Records Clause 14.5 / Schedule 1.1 (q)	Remove requirement for the Trust to arrange an audit and obtain approval to appoint a chartered accountant	The Trust will be independent of Council. Council has confirmed that as Council will not have a significant influence on Trust activity there is no requirement to consolidate into Council accounts. Council is able to agree to the removal of the requirement for Trustees to consult with the Settler before appointing a chartered accountant and for the requirement for a financial audit to be replaced with ‘independent review’. Council notes the Trust will still need to comply with any requirements that result from registration as a charity and Community Housing Provider, which could introduce a separate requirement for audited accounts (the Charities Act requires this for medium-sized charities as defined under the Act). Agree to change.
Conflict Transaction Clause 17 / Schedule 3 (Clause 6)	Replace “conflict transaction” with “conflict of interest”.	Minor changes have been made to language for clarity. This does not affect the operation of these clauses. Proposed change also inserted at clause 6.3 of Schedule 3 to reflect Trust’s request to maintain a conflict-of-interest register. Agree to change.

9 Copies of the adjusted Trust Deed and RFA with the proposed amendments are attached to this paper in Appendix 1 and 2 respectively. Changes to the Trust Deed are tracked in the document.

He take | Issues

10 The changes to the Trust Deed and RFA from the Trustees have been reviewed by Council’s Strategy and Growth Group, General Legal Counsel, and with input from Council’s Chief Financial Officer. Following clarification of intent and meaning not all changes suggested by the Trustees were progressed for further consideration or were not supported. The documents were finalised following these discussions.

11 Council has obtained legal advice on the proposed changes to confirm that:

11.1 The required amendments to the Trust Deed do not affect the fundamentals of the Trust; and

11.2 The required changes to the RFA, which are minimal, are non-substantive.

Ngā kōwhiringa | Options

12 No options are proposed, as the requested changes do not affect the substantive fundaments of the Trust or RFA, meaning that further Council approval of the amended documents is not required.

13 Further to this, following Council resolution in August 2024, the Mayor and Chief Executive have delegation from Council to approve the Trust Deed and RFA.

Mana whenua

14 The inclusion of specific principles, an objective and actions related to Māori housing within the Housing Strategy illustrate that Council recognises it needs to take a supportive role in helping to deliver Māori housing solutions. One of the key objectives for the affordable housing entity is to be able to partner with iwi for delivery. This is aligned with the above key guiding principle from the Housing Strategy and enables ongoing partnership.

15 Initial feedback on the preferred option for an affordable housing entity was sought from our Ngā Hapū o Ōtaki, Te Ātiawa ki Whakarongotai, and Ngāti Toa Rangitira and the establishment of a trust has continued to be supported.

16 The importance of Māori representation at a governance level within the Trust is recognised by the appointment of Kim Tahiwi as Te Whakaminenga o Kāpiti appointed Trustee.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

17 Minimising climate impact can be achieved through having compact and well-designed and planned urban areas. Climate impact will be considered through greater housing options, a variety of transport connections, and ensuring that development considers natural hazard constraints. The resilience and sustainability objective within the Housing Strategy considers that new homes meet or exceed Climate/Carbon measurements and Healthy Homes benchmarks. This will be built into the affordable housing trust approach when delivery of housing is considered.

Ahumoni me ngā rawa | Financial and resourcing

18 The RFA outlines support services that Council will provide to the Trust. These include an annual operating grant, and in-kind support such IT and administrative services on a transitional basis.

19 There is sufficient funding in Council’s Housing budget to support the establishment of the Trust as agreed in the Long-Term Plan process. The funding set aside in the Housing Budget to support the Trust is as follows:

Financial Year	Budget Allocation
2024/25	$100K
2025/26	$150K
2026/27	$150K

20 Should additional funding / support be required from the Trust, Council would consider this in accordance with the requirements of the RFA. This includes the potential for partnering on project opportunities such as the development at 254 Rangiuru Road, Otaki, and Council ‘transferring’ this or any other Council assets to the Trust.

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

21 Legal advice was sought for the preparation of the Trust Deed and RFA and to assess the proposed changes to documentation. The RFA provides mechanisms for Council to monitor and review the trust’s performance on a regular basis as required for Council organisations under the Local Government Act 2002.

Ngā pānga ki ngā kaupapa here | Policy impact

27 The community outcome ‘our people have access to suitable quality housing in Kāpiti so that they can live and thrive’ was included in the Long-Term Plan 2021-41 due to the strong concern about the growing local housing issues and to guide Council’s response to the district’s challenges and opportunities.

28 The Kāpiti District Council Housing Strategy was approved by the Strategy and Operations Committee on 12 May 2022. Housing Affordability is identified as a key focus area in the Housing Strategy with a response to ‘explore how alternative tenure and ownership models could be incentivised or delivered in partnership with others (e.g., build to rent, community land trust or leaseholder arrangements)’ (the Housing Strategy, page 28.

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

29 A Communications Plan has been developed to support communications with the community and key stakeholders about the establishment of the housing trust.

Whakatairanga | Publicity

30 Council will use its established communications channels to inform the community of the key stages of the establishment of the Trust and the rationale for the decision to establish the Trust. Arrangements will be made for publicity associated with the signing of the finalised Trust Deed and RFA by Council and the Trust.

Ngā āpitihanga | Attachments

1. Affordable Housing Trust: Relationship Framework Agreement with changes ⇩

2. Affordable Housing Trust: Trust Deed with changes ⇩

Strategy, Operations and Finance Committee Meeting Agenda

5 December 2024

9.3 Responding to the Coastal Advisory Panel's Report

Kaituhi | Author: Jason Holland, District Planning Manager

Kaiwhakamana | Authoriser: Kris Pervan, Group Manager Strategy & Growth

Te pūtake | Purpose

1 This paper seeks agreement to proposed implementation steps that respond to the Coastal Advisory Panel’s Recommendations Report.

He whakarāpopoto | EXecutive summary

2 An Executive Summary is not required.

Te tuku haepapa | Delegation

3 The Strategy, Operations and Finance Committee (SO&F) has delegated authority to consider this under section B.1 of the 2022-2025 Triennium Governance Structure and Delegations ‘Overviewing strategic programmes’.

Taunakitanga | RECOMMENDATIONS

That the Strategy, Operations and Finance Committee:

A. Note the overview and initial analysis for setting practical next steps, as outlined in this paper, to respond to the Coastal Advisory Panel’s (Panel) Recommendation Report.

B. Agree to not undertake further work regarding the Coastal Advisory Panel’s recommendations to:

B.1 Consult further across all demographics on the Report itself.

B.2 Integrate coastal adaptation work with overlapping work by the Greater Wellington Regional Council (related to flood hazard risk assessment).

C. Approve proceeding with the proposed investigation steps described in paragraph 9, and Table 1, that will support Council to make future decisions regarding the Panel’s Recommendation Report.

D. Note that a more detailed programme of work to progress steps approved in Recommendation C, of this paper, will be tabled with the Strategy, Operations and Finance Committee in April 2025.

E. Agree that the Climate Change and Resilience Strategy be progressed through three sub-strategies, to enable activity related to adaptation (as noted in Recommendation C of this paper) and mitigation to separately proceed, through development of a:

E.1 Climate Change: Mitigation sub-strategy – which will set out the direction, levers for change, and focus of work related to Mitigation actions to support our net zero emission reduction goal.

E.2 Climate Change: Resilience and Recovery sub-strategy – which will set out the direction, goals, and focus of work related to resilience and post-disaster recovery work.

E.3 Climate Change: Adaptation sub-strategy – which will set out the direction, goals, and focus of work related to adaptation (including but not limited to priorities for sand dunes planting and seawall management).

F. Note that the Climate and Environment Committee, and the Strategy, Operations and Finance Committee will receive updates on the three sub-strategies in the new year, in line with the timeframes set in paragraph 17.

Tūāpapa | Background

4 The Committee has previously been briefed on the Takutai Kāpiti project, and the background to the Coastal Advisory Panel’s (Panel) work. Briefly, of note:

4.1 In 2020, Council established the Takutai Kāpiti project to meet commitments arising from Environment Court mediation in response to litigation on the coastal hazard provisions of the Proposed District Plan that was publicly notified in 2012, following the withdrawal of its coastal hazard provisions in 2014 and 2017.

4.2 The Takutai Kāpiti project also aimed to support Council to respond to legislative obligations, under the New Zealand Coastal Policy Statement 2010 and Resource Management Act 1991, that require Council’s to manage risks from coastal hazards and the effects of climate change.

4.3 The Panel was established to undertake work, endorsed by the Council via a Terms of Reference, to recommend coastal adaptation options for Council’s consideration and to respond to the terms set through the mediation agreement.

4.4 The Panel convened meetings and workshops; considered advice from a Technical Advisory Group and engaged with the community to raise awareness of the process and to seek feedback.

4.5 The Panel completed the Recommendation Report in May 2024, following which it submitted the Recommendation Report to Council in June 2024.

5 On 20 June 2024,^{^[3]} Council passed the following resolutions relating to the Panel’s Recommendation Report:

That the Council:

A. Receives the Coastal Advisory Panel’s Recommendation Report, provided in Appendix 1^{^[4]}

B. Acknowledges and thanks the Chair and Members of the Coastal Advisory Panel for their

expertise, advice and steadfast work throughout the term of the Takutai Kāpiti project.

C. Confirms that with the tabling of the Recommendation Report and completion of its agreed work

programme, that the Coastal Advisory Panel’s role will now also end.

D. Seeks feedback from:

D.1 The Insurance Council of New Zealand regarding the Report’s findings.

D.2 The Department of Conservation regarding Council’s obligations under the New Zealand

Coastal Policy Statement 2010 to “take a 100-year perspective”.

E. Given the significance of the matters addressed in the Report, it is noted that further analysis will

be carried out before Council makes any decisions regarding next steps including

recommendations.

6 The Panel’s Recommendation Report included:

6.1 A summary of recommendations, provided in Attachment 1, including to short-list the dynamic adaptive pathways for 20 management units^{^[5]} along the Kāpiti Coast; and ten additional recommendations to Council as follows:

6.1.1 Prepare a Kāpiti Coastal Adaptation Plan.

6.1.2 Consult further across all demographics on the Report’s findings.

6.1.3 Revisit the DAPP[6] process and review pathways at least every 10 years.

6.1.4 Integrate coastal adaptation work with overlapping work by Greater Wellington Regional Council (GWRC).

6.1.5 Establish formal regular ongoing monitoring of coastal conditions in alignment with community signals, triggers and thresholds.

6.1.6 Develop Implementation Action Plans prior to trigger points being activated.

6.1.7 Work with communities in each Management Unit on an anticipatory signals, triggers, and thresholds approach.

6.1.8 Prepare for longer term developments that may be required, including planning for retreat.

6.1.9 Undertake further assessment by Council on the prioritisation of, economic costs, benefits, and funding mechanisms for the short-term actions for the 20 management units.

6.1.10 Prepare a coastal district plan change using a risk-based approach constraining subdivision, use and development according to levels of risk, mapping risk areas based on the best available information including relevant national and regional direction (NZCPS and RPS) and the most up to date IPCC information and relevant national guidance, in partnership with mana whenua and consultation with the community.

7 This paper acknowledges the proposed response to the two open Council resolutions, outlined in paragraph 5 as follows:

7.1 Resolution D: Council has now written to the Insurance Council and the Department of Conservation. These letters are provided as Attachment 2 and 3.^{^[7]}

7.2 Resolution E: Council decision is sought today around next steps for each of the Panel’s recommendations (as outlined in paragraph 6, above). Initial analysis of the recommendations follows below.

He kōrerorero | Discussion

8 Elected members were briefed on the Panel’s recommendations and options to progress proposed actions on 14 November 2024. A summary of the assessment presented by Council officers on the priority and proposed approach for responding to these recommendations is noted in paragraph 9, and Table 1 (below).

9 With the exception of two recommendations which are not supported, no decisions are sought on the individual recommendations now; however, a programme of investigation, engagement and analysis is set out to support agreement on next steps for each of the Panel’s recommendations. As outlined in Table 1, this will include Elected Members receiving advice in tranches beginning from 2025/26 and substantive decisions around implementing actions will be progressed through to 2035/36.

Table 1: Assessment of practical next steps regarding the Panel’s recommendations

Package	Panel Recommendation	Council Officer assessment and proposed approach
Further work on the Report’s findings	Consult further across all demographics on the Report’s findings (ie the Report itself).	Not supported	Continued engagement and discussion on the Panel’s Report will not add value to progressing practical action..
Further work on the Report’s findings	Integrate coastal adaptation work with overlapping work by GWRC.	Not supported	Combining analysis and engagement on coastal erosion and flooding hazards will add unnecessary cost / complexity.
Non-statutory Coastal Adaptation Planning	Work with communities in each Management Unit on an anticipatory signals, triggers, and thresholds approach	Top-Priority Progress from 2025/26	Introduce a practical approach for adaptation planning to canvas with the community to determine how we will identify the “signals, triggers and thresholds” for when change has occurred and action is needed.
	Develop Implementation Action Plans prior to trigger points being activated	Top-Priority Progress from 2025/26 Progress from 2026/27	Determine what “Adaptation Planning” covers and agree on priorities with the community. Following this, develop a Climate Change: adaptation sub-strategy that includes these priorities, key approaches and policies.
	Prepare a Kāpiti Coastal Adaptation Plan	Top-Priority Progress from 2025/26	Develop an Adaptation Plan, to support the implementation of the Climate Change: adaptation sub-strategy.
	Revisit the DAPP process and review pathways at least every 10 years	Low-Priority Progress in 2035/36
Non-statutory Coastal Adaptation Actions	Undertake further assessment by Council on the prioritisation of, economic costs, benefits, and funding mechanisms for the short-term actions for the 20 management units.	Medium-Priority Progress from 2026/27 or as relevant for future Annual and Long-term Plans	Confirm the economic costs, benefits, funding mechanisms, and prioritisation of adaptation actions for each management unit to inform future community engagement and Annual and Long-term Plans.
	Establish formal regular ongoing monitoring of coastal conditions in alignment with community signals, triggers and thresholds	Top-Priority Progress from 2025/26 Progress from 2026/27	Develop a suite of metrics from signals, triggers, and thresholds to report regularly. Introduce the community agreed signals, triggers, and thresholds in the Climate Change: adaptation sub-strategy and set out a monitoring framework to identify when change occurs.
	Prepare for longer term developments that may be required, including planning for retreat	Medium-Priority Progress from 2026/27 or as relevant for future Annual and Long-term Plans	Prioritise in Council’s work programme options for investing in new land areas for development, that are away from coastal hazard areas.
Statutory (RMA) Coastal Adaptation Planning	Prepare a coastal district plan change using a risk-based approach constraining subdivision, use and development according to levels of risk, mapping risk areas based on the best available information including relevant national and regional direction (NZCPS and RPS) and the most up to date IPCC information and relevant national guidance, in partnership with mana whenua and consultation with the community.	Top-Priority Progress in 2025/26	Take a pragmatic approach to assessing coastal hazards through the District Planning process that considers: · Use of a risk-based approach similar to that adopted by Porirua City Council and Wellington City Council in their recent District Plan reviews. · Coastal hazard planning rules and provisions will constrain subdivision, use and development according to levels of risk.

10 Following SO&F’s approval of this approach, a more detailed overview of timing for the programme and engagement, and associated budget, will be discussed before work begins. This will be tabled with SO&F in April 2025.

He take | Issues

11 Community engagement through the Takutai Kāpiti project highlighted the wide variety of perspectives on coastal adaptation issues. While some support was expressed for taking a proactive approach, others expressed concerns about Council doing anything (except seawalls) as they were concerned about the impact to property values and insurability. These concerns will need to be taken into account, as potential next steps progress.

Ngā kōwhiringa | Options

Table 2: Options to respond to the Panel’s recommendations

Kōwhiringa | Options

Hua | Benefits

Tūraru | Risks

Option A (recommended)

Proceed with the proposed work programme as described in paragraphs 9, and Table 1, of this paper

Likely to be supported by members of the community who support taking a practical and proactive approach to coastal adaptation issues.

The proposed work programme will provide Council with more information to inform future substantive decisions on next steps.

Potential confusion may occur if the Council is engaging communities on different coastal matters at the same time (for example, on triggers, signals and thresholds at the same time as the coastal district plan change).

Option B

Do not progress the proposed work programme as described in paragraph 9, and Table 1, of this paper

May be supported by members of the community concerned about potential impacts of doing anything (other than seawalls) on their property values and insurability.

Partners and stakeholders who participated in the Panel’s process could become frustrated and disengaged due to lack of progress.

Reputational risk if Council is seen as not taking action.

An alternative approach to coastal hazard adaptation would need to be developed, with additional cost and time.

Mana whenua

12 Mana whenua have partnered with Council on this project through:

12.1 Membership of the Co-design Working Group which established the Panel’s operating design.

12.2 Membership on the Panel, and inclusion of cultural experts on the Technical Advisory Group.

13 The Panel’s “multi-criteria decision-making analysis” (MCDA) included scoring adaptation options based on Te Ao Māori. Additionally, the Panel benefitted from consideration of cultural reports produced specifically to inform the project.

Panonitanga Āhuarangi me te Taiao | Climate change and Environment

14 The purpose of this project was to inform Council’s future approach to coastal adaptation. The Panel’s findings were prepared following a comprehensive process, including consideration of technical information and feedback from the community.

15 As noted in paragraph 5, Council resolved to undertake further analysis before making any decisions regarding next steps in relation to the Panel’s Recommendation Report. This has had downstream effects on the development of the Climate Change and Resilience Strategy, as adaptation is one of four components of focus in that strategy which was expected to be informed by:

15.1 Reports and other information generated as part of the Takutai Kāpiti project; and

15.2 The Panel’s recommendations.

16 To address this delay, including progressing further analysis on the Panel’s recommendations before decisions are made, it is proposed that the Climate Change and Resilience Strategy be progressed through three sub-strategies, to enable activity related to adaptation (as noted in paragraph 9) and mitigation to separately proceed, through development of a:

16.1 Climate Change: Mitigation sub-strategy – which will set out the direction , levers for change, and focus of work related to Mitigation actions to support our net zero emission reduction goal. This sub-strategy will utilise key information such as the cultural, social and ecological impacts of climate change for mitigation.

16.2 Climate Change: Resilience and Recovery sub-strategy – which will set out the direction, goals, and focus of work related to resilience and post-disaster recovery work.

16.3 Climate Change: Adaptation sub-strategy – which will set out the direction, goals, and focus of work related to adaptation (including but not limited to priorities for sand dunes planting and seawall management). This sub-strategy will utilise key information such as the cultural, social and ecological impacts of climate change for adaptation.

17 Climate and Environment Committee and SO&F will receive updates on the sub-strategies in the new year but broad timeframes include:

17.1 Climate Change: Mitigation sub-strategy – development progresses through early 2025, and approval sought in April 2025.

17.2 Climate Change: Resilience and Recovery sub-strategy – development is already underway, with oversight of the Risk and Assurance Committee, and approval of the sub-strategy sought in 2025/26.

17.3 Climate Change: Adaptation sub-strategy – progresses alongside actions noted in this paper for further work, and approval sought in 2027.

Ahumoni me ngā rawa | Financial and resourcing

18 The Long-term Plan 2024-34 has committed to further technical work and engaging with communities about coastal adaptation.

19 Determining the financial and resourcing implications of the proposed next steps will be worked through as part of reporting back on the work programme in April 2025.

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

20 Any legal risks regarding taking next steps to respond to the recommendations will be addressed by seeking legal advice at the appropriate time to ensure any risks are addressed.

Ngā pānga ki ngā kaupapa here | Policy impact

21 This report notes there are connected pieces of work that need to inform, and be informed by, the next steps that respond to the Panel’s recommendations (including progressing the proposed Climate and Resilience Strategy).

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

22 This report seeks Council’s approval for officers (as part of the proposed work programme) to develop a plan for engagement with the community on the Coastal Advisory Panel’s Recommendation Report, which would be brought back to Council for approval.

Whakatairanga | Publicity

23 No publicity is planned at this time.

Ngā āpitihanga | Attachments

1. Takutai Kāpiti Coastal Advisory Panel Recommendations Report - Section C (Recommendations) ⇩

2. 24.10.31 - Letter to Kris Faafoi Insurance Council ⇩

3. 24.10.31 - Letter to Penny Nelson Department of Conservation ⇩

Strategy, Operations and Finance Committee Meeting Agenda

5 December 2024

9.4 Performance Report for the period ending 31 October 2024

Kaituhi | Author: Sheryl Gavin, Principal Advisor Corporate Services

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

Te pūtake | Purpose

1 This report details Council’s financial and non-financial performance for the four months ended 31 October 2024.

He whakarāpopoto | EXecutive summary

2 An Executive Summary is not required for this report.

Te tuku haepapa | Delegation

3 The Strategy, Operations and Finance Committee has delegated authority to consider this under section B.1. of the 2022-2025 Triennium Governance Structure and Delegations including ‘overviewing strategic programmes’ and ‘financial management including risk mitigation’.

Taunakitanga | RECOMMENDATIONS

That the Strategy, Operations and Finance Committee:

A Receives this report; and

B Notes the Council’s financial and non-financial performance for the four months ended 31 October 2024, as attached in Appendix 1 to this report.

Tūāpapa | Background

4 The performance report for the four months ended 31 October 2024 details how we have performed against operating and capital budgets, service levels, and our top 10 priorities for the reporting period.

5 We have changed to thirdly performance reporting for years one, two, and three of our 2024-34 Long Term Plan and refreshed how we present our performance, taking on board feedback for simpler, more transparent and relevant information.

6 The new performance framework introduced in the 2024-34 Long Term Plan comes into effect in 2024/25 with 44 strategic outcome measures (impact targets) and 73 operational level of service targets across 16 activities.

7 Impact targets are measured annually. For level of service targets some are measured thirdly and some are only measured annually. How Council has performed against all 73 level of service and 44 impact targets will be included in Council’s Annual Report for 2024/25.

He kōrerorero | Discussion

He take | Issues

Performance

8 Ninety-four (94) percent of the non-financial performance targets that were measured were achieved.

9 Eighty-one (81) percent of the Top-10 priority actions are on track for completion within expected timeframes.

10 Year-to-date operating results were $2.5 million below budget, namely due to temporary timing differences of crown funding (NZTA Waka Kotahi and the Infrastructure Acceleration Fund) and higher fixed costs (personnel, cleaning, security, energy) than expected.

11 Full year operating results anticipate an operating surplus of $8.2 million at year end. This is $3.8 million below budget (due to higher fixed operating costs than expected) and is not a permanent cash surplus but instead a temporary timing difference of capital project funding received within the 2024/25 financial year.

12 Year-to-date capital spend of $21.9 million (or 29% of full year budget) was mainly in line with budget.

13 Capital projects spend of $82.3 million is estimated at year end which would be an overspend of $6.9 million against budget. The forecast overspend will continue to be closely monitored, re-assessed and updated in subsequent performance reports to ensure delivery remains within the three-year total LTP budget.

14 Net debt at 31 October 2024 was $272.3 million, 208 percent of total operating revenue (well within the limit of 280 percent).

15 Total assets at 31 October 2024 were $2.4billion – the majority of this being property plant and equipment ($2.31 billion).

Ngā kōwhiringa | Options

16 There are no options to consider with this report.

Tangata whenua

17 There are no tāngata whenua matters in addition to those already outlined in this report.

Panonitanga āhuarangi | Climate change

18 There are no climate change matters in addition to those already outlined in this report.

Ahumoni me ngā rawa | Financial and resourcing

19 There are no financial and resourcing matters in addition to those already outlined in this report.

Ture me ngā Tūraru | Legal and risk

20 There are no legal and risk matters in addition to those already outlined in this report.

Ngā pānga ki ngā kaupapa here | Policy impact

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

TE whakawhiti kōrero me te tūhono | Communications & engagement

Te mahere tūhono | Engagement planning

22 There is no engagement planning required for this report.

Whakatairanga | Publicity

23 Appendices to this report will be made publicly available on the Council’s website.

Ngā āpitihanga | Attachments

1. Performance Report for the period ending 31 October 2024 (under separate cover)

[2] *** refers to Council only been able to direct focus of activities where it is providing funding; and **** refers to the first year that Council will receive a dividend from the Trust as a result of economic development activity.

[5] The term “management unit” is defined in the Recommendation Report as: “mapped sub-areas within the five Adaptation Areas used for pathway development, assessment and recommendations”.

[6] “DAPP” is defined in the Recommendation Report as: “Dynamic Adaptive Planning Pathways - an approach to planning for sea level rise in the future.” This method (recommended by the Ministry for the Environment) acknowledges the uncertainties of climate change and natural hazard risks, and enables communities to adapt and avoid unnecessary loss and damage. Pathways include short, medium and long term adaptation actions (measures to reduce or eliminate risk); and early warning signals, triggers for starting preparation work; and thresholds indicating when agreed objectives/community values/risk exposure/levels of service are no longer being met requiring an alternative adaptation action to be in place before this occurs.

[7] Responses will be added to the Council website once received.


RĀRANGI TAKE AGENDA Te Komiti Rautaki, Whakahaere, me te Ahumoni \| Strategy, Operations and Finance Committee Meeting
I hereby give notice that a Meeting of Te Komiti Rautaki, Whakahaere, me te Ahumoni \| Strategy, Operations and Finance Committee will be held on:
Te Rā \| Date:	Thursday, 5 December 2024
Te Wā \| Time:	9.30am
Te Wāhi \| Location:	Council Chamber Ground Floor, 175 Rimu Road Paraparaumu
Kris Pervan Group Manager Strategy & Growth

Cr Sophie Handford	Chair
Cr Liz Koh	Deputy
Mayor Janet Holborow	Member
Deputy Mayor Lawrence Kirby	Member
Cr Glen Cooper	Member
Cr Martin Halliday	Member
Cr Rob Kofoed	Member
Cr Jocelyn Prvanov	Member
Cr Kathy Spiers	Member
Cr Shelly Warwick	Member
Cr Nigel Wilson	Member
Ms Kim Tahiwi	Member
Mr Huriwai Paki	Member
Ātiawa ki Whakarongotai Representative	Member