Agenda of Council - Tuesday, 26 August 2025

Council

Meeting UNCONFIRMED Minutes

29 July 2025

UNCONFIRMED MINUTES

OF THE Council Meeting
HELD IN THE Council Chamber, Third Floor, Office of the Waitaki District Council , 20 Thames Street, Oamaru
ON Tuesday, 29 July 2025 AT 11:00 am

PRESENT: Mayor Gary Kircher, Cr Hana Halalele, Cr Rebecca Ryan, Cr Jim Hopkins, Cr Tim Blackler Cr Jeremy Holding, Cr Brent Cowles (online), Cr Guy Percival, Cr Courtney Linwood, Cr Jim Thomson

IN ATTENDANCE: PAR Committee Chair Simon Neale

Alex Parmley (Chief Executive)

Paul Hope (Director, Support Services)

Joanne O’Neill (Director, Strategy, Performance & Design)

Lisa Baillie (Director, Community Engagement and Experience)

Amanda Nicholls (Finance Manager)

Joshua Rendell (on behalf of Roger Cook, Natural and Built Environment)

Jason Lilley (Livestream Support)

Arlene Goss (Governance Lead/Minutes)

In Attendance for Specific Agenda Items:

Lucianne White and Sonia Marteniz (Communications and Community Engagement)

Gary MacLeod (Corriedale Water Management Ltd)

Andrew Bardsley (Regulatory and Compliance Manager)

The Chair declared the meeting open at 11am and welcomed everyone present.

1 Apologies

Resolved WDC 2025/070

Moved: Member Jim Thomson

Seconded: Member Guy Percival

That the apology received from Cr John McCone be accepted.

Carried

2 Declarations of Interest

There were no declarations of interest.

3 Public Forum

1:37 Peter Plunket spoke on several issues. He showed an article from the Oamaru Mail regarding rates predictions under an in-house water delivery model. He said council was going to face these costs whether it went with a CCO or in-house delivery.

He then spoke about the Long Term Plan and asked Council to stretch out or postpone the items on the projects list to keep the rates similar to the rate of inflation.

He gave examples of council initiatives that he felt were not essential or should be delayed.

Mr Plunket also opposed the transformation plan. He wanted to know the benefit to the ratepayer for the expense. He asked Council to stay within the inflation rate and show economic restraint.

The Mayor responded to some of the points raised by Mr Plunket and gave examples of savings that had been made. He encouraged Mr Plunket to watch the recordings of previous workshops, when councillors discussed the budgets.

The chief executive explained that Council could remove all arts and community spending and would still not save enough money to fund water services and depreciation on water assets. Regarding the benefits of transformation, he pointed Mr Plunket to information on the website that explained this, and a link to this information was provided to Mr Plunket by email. The Mayor also offered to catch up with Mr Plunket if he wanted to discuss the issues further.

18:17 Mike Sweeney then took the table. He gave the example of Waimakariri District Council as a council that had successfully proposed an in-house water delivery unit, and outlined the details of that situation and how it works. He said this established a precedence and he hoped Waitaki would learn from these lessons.

The Mayor noted there were significant differences between the situation in Waimakariri and Waitaki, including a higher number of water users, high growth and newer infrastructure in Waimakariri.

Cr Hopkins asked if staff had looked at the Waimakariri situation in planning. The chief executive said he was not considering a restructure or adding a water department like theirs, as this would add a lot of cost. He believed the most cost-effective way was to work with the existing structure and undertake a financial ring fencing.

Mr Sweeney was thanked for attending.

4 Confirmation of Previous Meeting Minutes

4.1 Public minutes of the Extraordinary Council Meeting held on 30 June 2025

Resolved WDC 2025/071

Moved: Cr Jim Hopkins

Seconded: Cr Jeremy Holding

That the Council confirms the Public minutes of the Extraordinary Council Meeting held on 30 June 2025, as circulated, as a true and correct record of that meeting.

Carried

4.2 Public minutes of the Extraordinary Council Meeting held on 8 July 2025

Resolved WDC 2025/072

Moved: Cr Jim Hopkins

Seconded: Cr Jeremy Holding

That the Council confirms the Public minutes of the Extraordinary Council Meeting held on 8 July 2025, as circulated, as a true and correct record of that meeting.

Carried

4.3 Public minutes of the Council Meeting held on 24 June 2025

Resolved WDC 2025/073

Moved: Cr Jim Hopkins

Seconded: Cr Courtney Linwood

That the Council confirms the Public minutes of the Council Meeting held on 24 June 2025 as a true and correct record of that meeting, with minor grammatical corrections.

Carried

5 Recommendations from Committees Reports

5.1 Recommendations of the Waihemo Community Board Meeting held on 7 July 2025

5.1.1 Hampden Wastewater Investigation Funding

Resolved WDC 2025/074

Moved: Member Jim Hopkins

Seconded: Deputy Hana Halalele

That Council confirms the recommendation from the Waihemo Community Board:

a) That the loan-funded amount of $40,000 originally set aside for a study into a Hampden wastewater system be repaid.

b) That staff communicate (or consult) with the Hampden community on the cost of developing a reticulated wastewater system.

Carried

5.1.2 LINCOLN STREET RAIL CROSSING, HAMPDEN

Cr Hopkins asked that the words “east of the railway lines” be added to clarify the location.

Resolved WDC 2025/075

Moved: Cr Jim Thomson

Seconded: Cr Courtney Linwood

That Council confirms the recommendation from the Waihemo Community Board and approves of making Lincoln Street one-way east of the rail lines to alleviate safety concerns.

Carried

6 Decision Reports

6.1 Adoption of the Communication and Engagement Strategy including Endorsement of new Council Brand

32:19 Lisa Baillie introduced the report and said the new strategy was a key tool in engaging with communities. Staff were looking forward to taking this forward.

It was noted that the strategy included the comment that the community wanted to see Council as “good at listening”, however members of the public defined this as Council agreeing to do what individual members of the public wanted. Discussion took place on how to communicate that good listening and consultation always resulted in a number of people being disappointed.

It was exciting to have a modern guiding document. Credit was given to staff for their work creating the new brand in-house.

Resolved WDC 2025/076

Moved: Cr Rebecca Ryan

Seconded: Cr Jim Thomson

That Council:

1. Adopts the new Communications and Engagement Strategy as attached.

2. Endorses the new Waitaki District Council logo.

Carried

The Mayor brought Item 6.4 forward in the schedule.

6.4 Ratification of Council Submission on the matter of the Building and Construction (Small Stand-Alone Dwellings) Amendment Bill

55:33 The purpose of this report was to retrospectively ratify Waitaki District Council’s submission on Building and Construction (Small Stand-alone Dwellings) Amendment Bill as submitted to the Committee Secretariat, Transport and Infrastructure Committee on 23 June 2025. Several questions were asked by the councillors and were answered by staff.

Resolved WDC 2025/077

Moved: Mayor Gary Kircher

Seconded: Cr Jim Thomson

That Council:

Formally ratifies Waitaki District Council’s submission on Building and Construction (Small Stand-Alone Dwellings) Amendment Bill.

Carried

The meeting adjourned for lunch at 12pm and reconvened at 12.45pm.

6.2 Waitaki Dog Control Bylaw

1:46:06 This paper asked Council to adopt into the Waitaki Dog Control Bylaw 2024 and Waitaki Dog Control Policy following a 6-month trial allowing dogs on-lead in the Ōamaru CBD, Harbour Street and Ōamaru North CBD areas.

Josh Rendell introduced this report and said the feedback from the community was overwhelmingly positive, hence the recommendation from the staff to make this trial permanent.

Andrew Bardsley then provided background information about the consultation process. He noted the submission from the Penguin Colony as being especially helpful.

The councillors asked about the need for signage and communications to inform the public. They then debated whether dogs should be banned from the Harbour Street area to protect the penguins.

Cr Hopkins suggested an amendment to the bylaw regarding the situation of dogs on playing pitches and sportsgrounds. It was important to keep dogs off playing areas. Staff were asked to fine-tune this to make it clear in the bylaw that dogs were not allowed on marked pitches.

Cr Blackler suggested that recommendation 1(b) be removed and replaced with an alternative motion to say dogs are prohibited on Harbour Street. This was seconded by Cr Hopkins and debated.

Cr Ryan preferred to keep the proposed recommendations with the knowledge this could be reversed if a problem was discovered in the future. She had received feedback that people had enjoyed sitting outside cafes on Harbour Street with their dogs. The Mayor agreed.

Cr Hopkins supported Cr Blackler’s amendment to be consistent with the situation at Beach Road, where dogs are prohibited. He also asked for an amendment to the wording in the Dog Control Policy, which was added to the resolutions below.

Resolved WDC 2025/078

Moved: Cr Rebecca Ryan

Seconded: Mayor Gary Kircher

That Council permanently adds to the Waitaki Dog Control Bylaw 2024 and Waitaki Dog Control Policy 2024, the following change:

a) Dogs allowed on-lead Thames Street & Thames Highway, Ōamaru.

That Council amends the reference to section 3(1)(g) and replaces the words “all marked pitches” wherever they appear, with the words “all marked playing areas”.

Carried

Amendment

Moved: Cr Tim Blackler

Seconded: Cr Jim Hopkins

That dogs be forbidden from Harbour Street.

LOST

Resolved WDC 2025/079

Moved: Mayor Gary Kircher

Seconded: Cr Rebecca Ryan

That Council permanently adds to the Waitaki Dog Control Bylaw 2024 and Waitaki Dog Control Policy 2024, the following change.

b) Dogs allowed on-lead from sunrise to sunset & prohibited from sunset to sunrise Harbour Street, Ōamaru, with the commitment to further review if evidence from the Oamaru Penguin Colony supports the need for this.

Carried

Resolved WDC 2025/080

Moved: Mayor Gary Kircher

Seconded: Cr Rebecca Ryan

That Council approves minor wording changes to the Waitaki Dog Control Bylaw 2024 and Waitaki Dog Control Policy 2024.

Carried

6.3 Council endorsement of agreement with Corriedale Water Management Limited for operation of Corriedale water supplies

2:18:29 The purpose of this report was to establish a formal agreement between Waitaki District Council and Corriedale Water Management Limited (CWML) that clearly outlines the requirements for CWML’s ongoing operational management of the Corriedale water supplies.

The draft agreement is acceptable to both parties and outlines the expectations of the two parties. Staff were seeking approval from Council to allow the chief executive to sign the agreement.

The Mayor noted that Gary MacLeod, who manages the water services, was in the chambers and invited him to join the table. Mr MacLeod answered questions and further discussion took place on various issues. The Mayor thanked Mr MacLeod and Corriedale Water Management for their work, and also thanked staff for putting the agreement together.

Resolved WDC 2025/081

Moved: Mayor Gary Kircher

Seconded: Cr Jim Thomson

That Council:

1. Delegates authority to the Chief Executive to sign the new agreement for operational management of the Corriedale water supplies by Corriedale Water Management Limited, on behalf of Council.

Carried

6.5 Exempt Council Controlled Organsations from the Local Government Act

2:28:09 The purpose of this report was to grant an exemption by resolution of the Council, in line with section 7 of the Local Government Act 2002, that Omarama Airfield Limited, Waitaki District Health Services Limited, and Waitaki District Health Services Trust are no longer legislatively bound by the requirements of the Local Government Act 2002 that relate to Council-Controlled Organisations.

An exemption must be granted by resolution of Council and be renewed every three years thereafter. An exemption can be revoked at any time.

Cr Blackler asked regarding the legislative requirements for audit and this was answered by the finance manager.

The Mayor asked if the retirement village trust could be included in this. The Finance Manager said she would investigate this and speak to the auditor.

Resolved WDC 2025/082

Moved: Cr Jim Hopkins

Seconded: Cr Tim Blackler

That Council:

1. Resolves to exempt the following entities from the Local Government Act 2002 requirements that relate to Council-Controlled Organisations:

a) Omarama Airfield Limited

b) Waitaki District Health Services Limited

c) Waitaki District Health Services Trust

Carried

6.6 Recommendation to Continue with Waitaki District Health Services Ltd as a CCO until a Complaint is Resolved

2:28:39 In a previous resolution the Council resolved to wind up Waitaki District Health Services Ltd (WDHSL) by 30 June 2005.

Since that resolution was passed, WDHSL have received a complaint from the Health and Disability Commissioner regarding the treatment of a patient in 2023. This impacts the ability for WDHSL to wind up while a complaint is live.

At the WDHSL Board meeting on June 19^th external Legal Counsel recommended that Council retain WDHSL as an entity until the complaint is resolved. However, to simplify the accounting treatment and governance of WDHSL’s property management obligations, it was advised to reduce WDHSL's asset book and management function, along with everything associated with it, to the bare minimum.

WDHSL chairman Simon Neale spoke summarised the contents of the report and then asked for questions. Councillors asked why the complaint was taking so long. Council had no control over that process, and it was common for complaints to the Health and Disability Commissioner to take up to two years to resolve.

Resolved WDC 2025/083

Moved: Cr Jim Thomson

Seconded: Cr Rebecca Ryan

That Council:

1. Resolves to extend the timeframes of the resolution to wind up Waitaki District Health Services Ltd by 30 June 2025 and continue with WDHSL as a stripped-out council controlled organisation until the outstanding complaint is resolved with the Health and Disability Commissioner.

Carried

7 Resolution to Exclude the Public

Resolved WDC 2025/084

Moved: Cr Rebecca Ryan

Seconded: Cr Courtney Linwood

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
8.1 - Asset Sales - LTP 2025/34	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
8.2 - Recommendations from the Development Contributions Subcommittee PE	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7
8.3 - Public Excluded minutes of the Council Meeting held on 24 June 2025	s7(2)(b)(ii) - the withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

8 Public Excluded Section

9 Resolution to Return to the Public Meeting

Resolved WDC 2025/085

Moved: Cr Rebecca Ryan

Seconded: Deputy Mayor Hana Halalele

That Council resumes in open meeting and decisions made in the public excluded session are confirmed and made public as and when required and considered.

Carried

10 Meeting Close

The Chair declared the meeting closed at 2.09pm.

Council

Meeting Agenda

26 August 2025

5 Leadership Reports

5.1 Chief Executive's Report

Author: Alex Parmley, Chief Executive

Attachments: 1. Annual Elected Member Survey 2025 ⇩

Recommendation

That Council receives and notes the information.

Purpose

This report aims to update Elected Members on the progress made toward achieving the Council’s goals and programme, including the status of the Key Performance Indicators (KPIs) set by Council for the Chief Executive (and organisation) for the year ending 30 June 2025. This edition also marks the completion of the current KPI cycle and so does not include the overview of performance within finance, people and projects, but these reports will continue in the quarterly reports going forward.

Overview

The final quarter of the financial year has seen the organisation delivering several large, priority and in some cases, challenging pieces of work. This includes:

· Concluding the Long Term Plan,

· Responding to the government’s Local Water Done Well reforms,

· Responding to and considering a significant number of other government reforms that effect local councils and our communities including RMA reform and the impact on and uncertainty for a challenging District Plan review,

· Progressing our Transformation programme, and

· Delivering our capital programme and “business as usual”.

The past year, including the last quarter, has seen the organisation, its capacity and its people stretched to being close to overwhelmed with the volume of high priority work, while maintaining delivery to our district and communities.

The Council overall has made good progress on achieving its ambitions while responding to the reform and challenges and ensuring it delivers its programme and services.

I would like to formally record my thanks for the efforts and commitment of staff and the Governance Team to the Council and our communities over such a challenging year.

The staff team and I remain focussed on working with Governance to continue to deliver and embed transformation so we can achieve our ambition to be “a leading, innovative Council delivering the best for our communities” and realise the benefits we want for our organisation and the communities we serve, including:

· greater value and efficiency,

· improved levels of customer service,

· stronger local focus and connection,

· becoming an employer of choice to retain and attract the skills we need to deliver for our communities, and

· improved communication, engagement and partnering with our communities.

Transformation

After two years (2022/3 and 2023/4) of considering the case for change, developing the business case, and then working with staff and Governance on designing the programme of change, this past financial year (2024/5) has been the year in which we commenced implementing the Transformation Programme and the changes within it. This is the biggest change this organisation has been through since it was established in 1989 and a huge undertaking for the organisation. It is more apparent than ever, with the changes impacting local government, that embarking on the Transformation Programme was the right thing to do.

Transformation has seen a fundamental change in model and approach to how the council delivers and conducts its business. Staff from across the organisation have shown courage, determination and commitment to the organisation and the communities we serve, in delivering change. This has been despite the personal uncertainties change has brought; the other additional work priorities that have emerged; and while largely maintaining services and business as usual to our communities.

The Transformation Programme has delivered significant achievements and improvements in how we deliver services to the community, but with more benefits to come. While the business case set out that many benefits would not be fully realised until two to three years after implementation, improvements are increasingly apparent. It was always understood that transformation would be difficult at various times. However, several unforeseen factors have made transforming Council more challenging than anticipated.

The Council’s decision to embark on transformation began out of a desire to do more with the resources it had available so it can deliver the best for the district, residents and customers. And while there would be benefits, it was known that these would take two to three years from implementation to be realised. The Council’s leadership knew transformation would be difficult at various times and has had to take place alongside:

· The Government’s water reforms and the changes in policy– 3 Waters, Affordable Waters, Local Water Done Well

· The pressures on local government finances (including from water reform) resulting in a challenging, time consuming and resource intensive Long-Term Plan (LTP)

· The additional time and resources required for the District Plan.

While these factors have placed additional pressure on the organisation, on top of the pressure of change, it has not derailed the trajectory of transformation. The Transformation Programme is within its final six months, with the organisation having fully implemented its new structure and all new teams now operational, albeit not all changes and new ways of working up and running yet. The focus is now shifting towards embedding transformation outcomes, ensuring momentum is maintained, and preparing for a seamless transition into a continuous improvement framework, post-programme closure at the end of 2025. The programme’s status reflects measured progress across key areas, a clear understanding of remaining work, and a proactive approach to overcoming ongoing external and internal pressures.

The Council has successfully implemented significant structural changes to support its new operating model, breaking down traditional silos and enabling greater cross-departmental collaboration and visibility of work.

Implementation of a new Customer Service Model is improving access to customer services and increasing the speed of service delivery, as well as ensuring greater efficiency in use of resources. This is being enabled by:

· A new service desk at Oamaru Library providing extended hours of service including Saturdays for first time, whilst reducing resource requirements.

· An AI bot supporting customer operatives, helping move towards a target of 90% of enquiries dealt with at first point of contact, speeding up service, reducing routine issues going into the back office that cause delays and take up time and specialist resources.

· Digitisation of all Council forms – improving access to services whilst also delivering back-office efficiency savings.

· Digitisation of property files – improving access for customers to property information and enabling self-service which produces efficiencies in saved staff time.

· Implementation of a Case Management approach for applications and complex requests – improving levels of service, improved support for customers, removing the need for customers to navigate their way around different departments and providing efficiencies as less time is taken up of specialists.

· Customer Portal implementation in progress to provide full self-service across the range of council services, give easy access to residents on the information we hold related to them – which will help shape and reduce demand and reduce the cost to serve.

The development of a Locality Model is enhancing our connection with and responsiveness to our local communities. Area Leads in the infrastructure team provide local focus in planning local programmes of work as well as a more responsive service for Community Boards and communities. Locality Officers are part of Case Teams but connected to the Customer Team and Infrastructure Team and are our eyes and ears on the ground, enabling us to be more proactive, more connected to communities and improve efficiency. When fully embedded our locality model will enable clear local delivery plans and provide performance reporting on a locality basis to assist more local focus and continuous improvement.

Establishing a Project Management Office (PMO) is supporting higher standards of project management, enabling us to ensure improved value for the ratepayer and supporting an improved delivery rate of projects and our capital programme. There is more robust challenge around value for ratepayer funds in terms of quality and cost together with more rigorous project performance management instituted and which is now reported to Council and the Senior Management Team. Improved processes are being put in place, which to date includes project initiation processes and rigorous business cases for projects.

Our approach to Asset Planning has been refined, and this will enable an integrated programme across our assets and better asset information that will produce efficiencies. This is a long-term benefit change but already the team are integrating the various programmes of work which were originally planned separately. Our improved Communications and Engagement approach supported by a new strategy and a single engagement team where previously our engagement staff were distributed around the different departments, is starting to ensure better information dissemination and higher levels of community engagement.

Investment in and use of technology, including AI, is supporting improvements across the organisation. This is supporting our customer service model enabling more efficient and higher levels of service. It also includes many improvements to back-office systems that help remove or automate previous inefficient processes that were a frustration to staff and took resource away from delivery. These systems are also providing staff with better information and self-service options that reduce demand on support teams, improves service, and enable resources to be devoted to activities that add more value to the Council and our communities.

We have commenced the deployment of an Organisational Performance Management Framework which is supporting moving the organisation from an activity focus to an outcomes, value, performance and continuous improvement focus. This is work in progress and there is much more to do, including embedding continuous improvement processes. This ambition has been one of the most challenging projects for the council. However, the organisation and all teams now have clearer work objectives and performance measures and there is a more robust framework governing individual staff performance. The recent commencement of Council Benchmarking by the Government will also be helpful in tracking our progress and performance as an organisation and support the drive for continuous improvement.

There has been considerable progress in people and capability management to realise our ambition of becoming an Employer of Choice so we can retain and attract the skills we need to deliver effectively for our community. Our new People Strategy provides the focus for this. It has led to a review of our contracts and terms so that our offer is competitive and we can maximise the appeal of less costly non-financial benefits. There is a complete new suite of role profiles across the organisation that are community outcome focussed and less task focussed. In addition, the Competency Framework with its focus on attitudes and behaviours provides for a more robust approach to recruiting the right people with the skills and attitude we need and to managing and enabling high performance. There has been progress in supporting leadership skills and development in the organisation which is important in helping to create a high performing organisation and reshaping the organisational culture. Reshaping the organisational culture is a long-term undertaking and is a work in progress to foster a more empowered workforce that is focussed on customer and community outcomes, takes responsibility and is accountable.

Transformational change of this scale can be disruptive for organisations, BAU delivery, customers and staff. Overall though, during the transformation, services have largely been maintained with minimal levels of disruption and our capital delivery rate has gone up, with the main projects - including large projects such as the Network Waitaki Sports and Events Centre, the Forrester Gallery Extension and the Kakanui Bridge replacement - being progressed successfully. Exceptions are within the library service, where there was temporary disruption, and within governance support, where we struggled to find the capacity to make the planned changes initially, in the context of additional and complex meetings and whereas a result, the service standards dropped for a period. The focus on maintaining BAU across the organisation during the changes, and the fear of failure and the consequences of this, has put a lot of pressure on staff and has slowed the progress of Transformation, but has not stopped it.

Work is progressing on transferring responsibility for Transformation outcomes and benefits into teams’ business-as-usual operations and the new performance management framework as the organisation practice becomes increasingly one of continuous improvement. In the meantime, focus for the remainder of the programme will be on progressing the implementation of plans to deliver the target outcomes and benefits in the following areas:

· Customer service model, including locality

· Performance management

· Project Management Office

· Cultural Change

· Embedding prioritisation

· Updating the management / operational leadership model to clarify terms of reference and remits

Long Term Plan (9 Year Budget)

On 30 June, Council adopted its Long Term Plan and 9 year budget. This has been the most challenging LTP this council has faced with significant inflation and in particular the cost of complying with water standards driving up costs at a time when large parts of our community are feeling cost pressures in their household budgets. The financial challenges we faced have meant that the process we went through was not the one we originally planned and different to what Council agreed at the start of the process. There were significantly more briefings and workshops than originally planned to scrutinise every part of the organisation and understand all of our costs and opportunities to reduce these.

Whilst our approach to the LTP has evolved slightly from that in the past to be more focussed on outcomes and value for communities, there is still scope for improvement in approach. Following a feedback session with the Governance Team we will now progress capturing the lessons learned and identifying the opportunities for improvement so that we can have an enhanced process to support the new Council in prioritising, ensuring a clear outcome focus, and also be able to plan for the different needs of our different communities, including with our community boards in Ahuriri and Waihemo. Following the Council’s decision to retain water service in house, we will also now plan for an LTP amendment process early in the new triennium, to reflect water services now remaining within Council after 2027.

Elections

We have continued to prepare for elections, focussing our communications on encouraging people to consider standing for Council or their local Community Board. It is pleasing to see a good field of candidates come forward to stand to represent their communities with no costly byelections being required and a choice of candidates for most seats. Our communications focus has now turned to encouraging people to ensure they are registered to vote and then encouraging people to vote.

Work is nearing completion on putting in place an Induction Process for a new Mayor, the new Council and our Community Boards. A good induction programme is essential to ensuring that, whatever background our Elected Members are from, everyone is equipped with the skills and knowledge to perform the governance role. In doing this, our induction will be aiming to ensure the new Mayor, Councillors and Community Boards are set up and supported to be successful in delivering their ambitions for our district and community. The feedback received on the previous Induction Programme together with the survey on support for Elected Members, has been invaluable in ensuring we can develop and improve our support for Governance.

Local Water Done Well

The last financial year has seen considerable work undertaken on understanding and responding to the Government’s Local Water Done Well reforms. The timeframes given to councils by the government to submit our Water Services Delivery Plan are short. Such an important strategic decision with such a big impact on our organisation and the communities we serve deserves more time to consider than we have been given. There has been a lot for all of us and our communities to understand in the intent and the implications of the government’s reforms, including that maintaining the status quo is not an option, and that all available options will see significant increases in water charges for our community. All options have up sides and down sides and whatever option is selected, councils will have less control of water with more power given to regulators in the form of the Water Services Regulator and the Commerce Commission as economic regulator, who between them determine the standards, and can determine investment levels and revenue & charges, of Water Services Organisations, whether a CCO or in-house operation.

With the decision by Council to deliver water services inhouse, Council will need a new organisational strategy to continue to reshape how it works and delivers. This will need to take account of the progress made in the Transformation Programme and continue to realise the benefits of the changes, and enable & ensure the creation of a ring-fenced inhouse business unit for water The strategy will need to continue progress on maximising efficiency and support a focus on priorities, to ensure delivery for our district and communities whilst minimising the cost impact on ratepayers. Work is commencing on the development of a new organisational strategy which will support the review of the LTP and the Water Services Delivery Plan and associated Implementation Plan.

KEY PERFORMANCE INDICATORS (KPIS)

The following KPIs for the Chief Executive for the year ending 30 June 2025 were agreed and adopted on 24 September 2024.

KPI 1 – TRANSFORMATION DELIVERY

KPI – Delivery/Implementation of Transformation Programme – Changing the Way We Waitaki

Objective:

Build the best council in NZ that empowers people and communities, is ambitious and high performing, and delivers excellent outcomes

· an ambitious council seeking to deliver the best for the district and residents

· focussed on role as a community organisation and community leader

· flexible, agile and data driven, focussed on performance and continuous improvement

· modern, efficient, effective, customer focussed services

· well governed

· a leading employer with an empowered workforce

· One Team in all that we do

Strategic Framework:

Deliver Transformation Programme – Changing the Way We Waitaki

Key Results: (series of results that will enable successful delivery of the objective)

1. We deliver a customer experience that we’re proud of

• Interactions with Council are frictionless

2. We do the right things at the right time for our community

• Responsive to real needs of community

• Delivering on our promises

• Understanding our community

3. We have a reputation as a trusted partner

· We have the agility to thrive

· Responsive to change

· Fit for purpose technology

4. We live within our means adding value for money
• Reduced costs of living in community

• Rates viewed as an investment
• Council gives more than it takes

5. We are an employer of choice
• Staff proud to work at Council

6. The Governance Team and Community Board members are supported to carry out their governance roles.

Key Measures: (initial measures, but not limited to these measures)

· Effectiveness – Achieve greater than 80% of key performance outcomes as agreed in the Annual Plan.

· Efficiency – Improve the delivery of new and existing council provided services by 10% by implementing better processes and tools.

· Effectiveness – Reduce the cost to deliver council provided services by 10% to reinvest in new council provided or partner services.

· Community – Involve partners in the delivery of 10% of existing and new council services to support the delivery of the
community outcomes.

· Achievement of a 5% increase in the Culture measure, for each undertaking of the survey, in the Council’s chosen Staff Engagement Survey.

· A baseline measurement is introduced during the 2025 calendar year, to be measured on an annual basis.

Progress Update:

1. We plan to close the Transformation Programme by the end of 2025. This does not mean that we will have fully complete the transformation process and achieved all of the outcomes and benefits. Whilst we can now see the benefits of Transformation starting to be realised, as set out in the business case agreed by Council, the benefits of transformation will not be fully realised until two to three years from implementation. Work is progressing on the final stages of the programme and the transition of the transformation ambitions and outcomes in the BAU of the organisation, including in how the organisation manages performance and supports continuous improvement. This will include ensuring that metrics relating to the outcomes and benefits of transformation are reflected in the performance management information and reporting. Annual reports will document Council’s performance against Annual Plan metrics, starting with the 2025/26 annual report as the initial point of comparison.

2. All Council forms are now available online, with many supporting payments and integrating into business workflows. New self-service tools—including knowledge base articles and an automated customer assistance to give residents 24/7 support - are live on our website. Progress continues on i) the introduction of a Customer Portal to provide improve access to services for self-serve and to customer information; ii) making available on line all property files iii) an online booking system which – all of which are planned to launch in late 2025 and which will improve access to and levels of service.

Ongoing efficiency improvements are anticipated in the coming months as the Performance and Continuous Improvement team advances the foundation set by the Transformation Programme. Employees will experience further enhancements through the implementation of updated workflows, while customers will continue to benefit from new tools and processes designed to strengthen and expand Council services.

3. Several benefits of transformation have been observed in both communication strategies and community engagement, with increasing levels of participation and interaction. The implementation of the locality model, along with place-based planning and service delivery, is beginning to yield positive outcomes. Further results are anticipated as these new approaches become further integrated over the next 6 to 12 months.

4. The recent Staff Engagement Survey reported an employee engagement (culture) score of 67% (3.37/5), an increase from 65% in 2023.Teamwork and collaboration are recognised as key organisational strengths, with the majority of employees reporting collegial support. Additional positive elements include well-established team dynamics, leadership initiatives designed to provide support, autonomy within individual roles, and effective managerial mentorship.

5. A survey has recently been conducted of Elected Members to establish a baseline measure of the level of support governance receives. The results of the survey are attached to the report and demonstrate positive satisfaction with the support for Elected Members and in particular, the improvements made, but point to areas where further improvement can be made as part of our continuous improvement approach.

KPI 2 – COMMUNITY OUTCOMES

KPI 2a – Quality Services

Objective:

Deliver modern, effective customer services within a culture of continuous improvement.

Strategic Framework:

· Robust core infrastructure and services

· Community facilities and services we are proud of

Key Results: (series of results that will enable successful delivery of the objective)

1. Support our district to thrive via sustainable, resilient, and reliable networks and infrastructure

2. Enhance access to current and future services for the community through user-friendly and convenient options

3. Improve community wellbeing through enabling the provision of a highly valued and financially sustainable network of community facilities

4. Council as an organisation delivers value and improvement efficiently and effectively to the district

Key Measures: (initial measures, but not limited to these measures)

· By achieving an overall satisfaction rating with the Council’s performance of 60% from resident surveys

· Reduce the need for over-the-counter service by 20% in the 12 months following the implementation of the new Customer Service model

· Achieve an overall satisfaction rating with quality of life in the district of at least 85% from resident surveys

· By implementing agreed outputs of the Transformation Programme by the end of the financial year (see KPI 1 for more detail)

Progress Update:

1. The Resident Satisfaction survey is currently being finalised, and a full report and analysis is planned to be tabled at the September meeting of Council. The overall satisfaction rating was 44% in 2025, below the target of 60% and down from 48% in 2024. Satisfaction with sealed roads declined from 42% in 2024 to 39% in 2025, while satisfaction with unsealed roads saw a slight increase, rising from 29% to 31% over the same period. Additionally, satisfaction with the water supply experienced a small decline, dropping from 75% in 2024 to 70% in 2025. The average satisfaction scores for Roading and Waters changed from 48.6 in 2024 to 47 in 2025. Overall, Councils across the country are experiencing declining satisfaction increasing distrust. In addition, in implementing large scale organisational change programmes it is common to see an impact on customer satisfaction. However, this does not mean that the level of satisfaction is accepted, and the results of the satisfaction survey will be used as a focus for the Council’s continuous improvement.

2. All hardcopy and PDF forms related to core services have been digitised. Additional self-help and self-service features, including webchat and a knowledgebase, are now available to decrease over-the-counter transactions. A baseline for the 2024/25 financial year will be established and compared at the conclusion of the 2025/26 financial year.

3. Overall satisfaction with facilities shifted from 78.8% in 2024 to 75.9 in 2025. Satisfaction at Oamaru Opera House changed from 91% in 2024 to 89% in 2025. Parks and Reserves maintained a consistent satisfaction rate of 80% across both years. Sports fields and facilities moved from 75% in 2024 to 73% in 2025. Campgrounds recorded 72% in 2024 and 69% in 2025. Public toilets had a satisfaction rate of 70% in 2024 and 72% in 2025. Aquatic Centre figures were 75% in 2024 and 76% in 2025. Cemeteries went from 81% in 2024 to 76% in 2025. Libraries measured 85% in 2024 and 74% in 2025. Resource Recovery Park showed a satisfaction rate of 80% in 2024 and 75% in 2025.

3. The KPI for delivery of the Transformation outputs is considered complete for the financial year, with all four transition stages finished on schedule as outlined. Expected benefits are projected to continue to be realised as planned, over the upcoming months and years, in accordance with the benefits realisation indicated in the initial business case and mandate for change. The operating model and associated teams and departments will continue to develop and be embedded as new working methods are implemented.

KPI 2b – Strong Communities

Objective:

Support and enable our communities to improve wellbeing

Strategic Framework:

· Enabling safe and healthy communities

· Connected, inclusive communities

· Promoting a greater voice for Waitaki

· Celebrating our community identity

Key Results: (series of results that will enable successful delivery of the objective)

1. Support and promote public health and wellbeing through community initiatives and programmes.

2. Promote diversity and cultural understanding within the community and within Council

3. Facilitate the development of an “intentional plan” with the Council Governance Team that enables the Waitaki community to have local input into regional and central government decision-making – engage with ministers and officials to advocate for Waitaki.

4. Support and promote local arts, culture, sport, and recreation

Key Measures: (initial measures, but not limited to these measures)

· By increasing Council participation in education and awareness by 50%

· By increasing the delivery of cultural competency education programmes to

14 by the end of the year

· Engaging in 75% of all relevant submission opportunities

· By growing utilisation and participation by 5% year on year

Progress Update:

1. The Warmer Waitaki Curtain Bank initiative has been successfully launched, with operational training provided by the Dunedin Curtain Bank, enabling volunteers to begin their work and local service providers to start making referrals. In addressing homelessness, Stronger Waitaki organised a hui with community partners to complete a stocktake and gap analysis of available services and to identify suitable referral pathways. This gathering not only facilitated connections among service providers and community groups, fostering collaborative opportunities, but also saw attendance from 40 individuals representing 25 organisations. Additionally, a partnership has been formed with Fire and Emergency New Zealand to assist locality officers in delivering fire safety education to people living rough. Stronger Waitaki remains committed to strengthening home-focused referral pathways and processes between service providers. Efforts are ongoing to review existing successful models, investigate technology-enabled solutions, and seek funding opportunities to further support this work.

2. The Arts, Culture and Libraries team, collaborating with the Strategic Communications & Engagement team, has delivered 14 Mātauranga Māori programmes between September and November, and is planning a series of evening events to promote diversity and cultural competence in the community. They have also organised a Matariki programme, including community events and the George Burns Memorial children’s art exhibition with a Matariki theme, in June in conjunction with the public holiday.

3. Between June 14 and July 31, 2025, a total of ten submissions were made, comprising six direct Council submissions and four in collaboration with Taituara. The direct Council submissions included the Building and Construction (Small Stand-Alone Dwellings) Amendment Bill, as well as the Resource Management - National Direction Packages 1-3, which focused on infrastructure and development, the primary sector, and freshwater, along with Package 4, which addressed housing growth. The Taituara partnership submissions covered topics such as the Regulatory Standards Bill, the National Infrastructure Plan, and the Resource Management - Integrated National Direction Packages 1-3.

4. The OKR team is updating seasonal sports licences to require reporting of player data from sporting codes, further improving the Council’s ability to track and promote participation.

KPI 2c – Prosperous District

Objective:

Develop and enable a thriving district economy, characterised by sustainable and inclusive growth

Strategic Framework:

· Attracting new opportunities

· Supporting local businesses

· Fostering a diverse and resilient economy

Key Results: (series of results that will enable successful delivery of the objective)

1. Support and grow the district’s primary sector

2.Revitalise our places (CBD and townships) through opportunities to support businesses, homes, and visitors

3. Increase visitor economy return

4. Enhance business innovation and growth

5. Increase the skills base available to employers in the district and improve opportunities within the district for skills development

Key Measures: (initial measures, but not limited to these measures)

· By facilitating at least two new feasibility studies by the end of the financial year to enable land and water use optimisation and
supporting innovation and secondary industry opportunities

· By activating 50% of CBD vacant spaces by the end of the financial year (excludes Palmerston CBD); AND By measuring the resulting economic impact by December 2025.

· By generating >15% increase in overall annual visitor spend through increased overnight stays

· By supporting a minimum of 10 startups to become established through an
entrepreneurship ecosystem

· By creating career pathways for at least 50 people into employment across diverse business sectors

Progress Update:

1. The Waitaki Grown initiative, a collaboration between the Waitaki District Council and local farmers, aimed to encourage land use diversification and boost economic resilience by developing new crops and accessing high-value markets. The first harvest of medicinal crop trials has yielded promising phytochemical results from four root crops: Astragalus, Baical Skullcap, Liquorice, and Withania (Ashwagandha).

These initial results demonstrate the potential for cultivating high-value medicinal plants in the Waitaki region. The findings, obtained through laboratory testing, will help the project team refine cultivation strategies in the coming year.

Waitaki Grown is exploring future research partnerships, including applications in animal health and soil wellbeing. These efforts align with a broader vision for integrated land use systems that promote both environmental and economic sustainability across the district.

2. The Revitalise our Places Ōamaru (ROPO) programme concluded in December 2024, leading to two businesses arranging short-term leases for vacant Thames Street spaces. Community projects from the Central Ōamaru Masterplan are progressing. Thames Street facade renovations began in May as stage one, with stage two planned for Spring 2025. Several placemaking initiatives were finished this quarter, including the adoption of the Ōamaru North Masterplan. A new Waitaki identity and story has been developed to boost reputation and community pride, and new Gateway and Township signage will be the first visible step in this initiative.

3. Tourism in the Waitaki District saw mixed results over the last year. Expenditure grew 6.3% to $202 million by September 2024, outpacing Otago and national rates. Guest nights jumped 11.4%, totalling 467,700. By December, expenditure growth eased to 2.5% ($204 million), trailing regional and national averages, though international spending surged 20.7% from a low base. Guest nights kept rising, up 7.6% to 475,600. However, by March 2025, tourism spending fell 2.4% to $204 million. April data showed renewed growth, with international spend up 19.3% year-on-year, despite making up only 7% of the total. Guest nights edged up 0.9% to 471,100, bucking declines elsewhere. Overall, while spending fluctuated, rising guest nights and strong international growth point to a resilient Waitaki tourism sector.

4. This workstream is on hold due to resource constraints.

5. A dedicated Mayors Task Force for Jobs Officer has now been appointed to oversee the development of a new, in-house delivery model for the 2025/26 financial year. In terms of building capability, nine students have begun their studies toward a Bachelor of Applied Management through Capable NZ.

KPI 2d – Valued Environment

Objective:

Protect Waitaki’s natural and built environment for present and future generations

Strategic Framework:

• Protecting our diverse landscapes and water bodies

• Meeting Environmental and climate change challenges

Key Results: (series of results that will enable successful delivery of the objective)

1.Provide leadership to support sustainable long-term community resilience.

2. Enable environmental ownership and protection in the community through
education, incentives, and collaboration.

3. Establish and implement robust strategies that promote the long-term protection and
sustainability of Waitaki’s natural and built environment.

Key Measures: (initial measures, but not limited to these measures)

· By implementing a minimum of eight climate sustainability and/or resilience projects

· 100% allocation of the Heritage, Biodiversity, and Waste Minimisation Funds

· Ensuring WDC achieves all national legislative planning standards by the end of the year

Progress Update:

1. The Council remains actively engaged in collaborative meetings with the Otago Climate Officers Group (OCOG) and the Canterbury Climate Partnership Plan (CCPP), where we consistently share and provide relevant information to support the objectives of these partneships.

2. A significant portion of the Biodiversity and Heritage funds—about 50-60%—has already been allocated, with a new funding round set for February 2025. The 2024 Waste Minimisation Fund was fully distributed in August 2024, supporting initiatives such as a Construction and Demolition waste tradie breakfast, regional webinar, and the Repair Cafe. Waste staff aided in diverting food waste from a Netflix film shoot, and the Waste Free Waitaki social media continues to promote waste minimisation. The Enviroschools kaupapa remains active in fostering youth sustainability efforts. Recent highlights include a Biodiversity Hui that drew around 40 participants and strong demand for the Waitaki Biodiversity Fund, which received three applications totalling more than twice the remaining annual budget. Additionally, the Waitaki Heritage Fund Sub-Committee awarded $13,753 to three successful applicants in June 2025, representing 14% of the fund due to low application numbers.

3. The Proposed Waitaki District Plan was notified for public consultation on 1 March 2025, with the submission period closing on 16 May 2025. During this time, a total of 314 submissions were received from the community. These submissions have now been recorded in a dedicated database, and a comprehensive summary is currently being prepared. Subject to Council direction in light of the government’s Plan Stop announcement and proposed legislation, and the result of any exemption requests made to the Minister, hearings on selected topics are anticipated to commence in late 2025 or early 2026.

KPI 3 – LEADERSHIP

KPI – Overarching Leadership

Objective:

As the employee of the Governance Team, lead the staff of Council to achieve other key initiatives in the Strategic Framework and programme of priorities.

Strategic Framework:

• Prosperous District

• Strong Communities

• Quality Services

• Valued Environment

Key ACTIONS: (series of ACTIONS that will enable successful delivery of the objective)

1.Plan developed and executed for the next stage of the Economic Development Strategy

2. Development and implementation of a Communications and Community Engagement Strategy and approach

3.Delivery of a new Waitaki Sports and Events Centre that meets the “must have” requirements

4.A strong partnership exists between the Council and iwi based on trust, understanding and shared aspirations; Council is fulfilling the Te Tiriti commitments

5. Successful adoption of a fit for purpose, transformative, Long-Term Plan that sets a direction for the district and its communities and a focus for what and how the Council will deliver to support this

6. As part of the LTP, review CCOs and progress new arrangements to support delivery of Council target outcomes and objectives.

7. Development of a Water Services Delivery Plan and Partnership Development for waters with other councils

Key Measures: (initial measures, but not limited to these measures)

It is not appropriate to have measures for this KPI as it is identified as an overarching leadership objective for the Chief Executive.

The development and implementation of each of the Key Actions in the left column will be the deliverables in this case.

Progress Update:

1. Following the direction from the LTP process where this matter was consulted on again, a plan to repurpose Tourism Waitaki as an Economic Development Agency will be developed and brought back to Council. It is proposed to engage Tourism Waitaki in this process.

2. Following the Council’s adoption of the Communications and Engagement Strategy 2025–28 in July, implementation is now underway. Initial priorities have centred on enhancing internal capability, including the development of a new Communications Toolkit for staff. The phased introduction of the new Council brand has also commenced. Concurrently, work continues on establishing a Community Engagement Framework to promote more consistent and inclusive engagement across Council initiatives. Preliminary feedback has been favourable, with staff noting greater clarity and confidence in communication planning.

3. The construction work is progressing well being on time and on budget. The roof cladding, pouring concrete for floor slab in cricket area, blockwork installation is complete, and the installation of internal wall electrical and IT cables has commenced. Planned works include external wall cladding installed, completion of cabling with commencement of interior wall linings installation.

4. Te Rūnanga o Moeraki have recently appointed a new Chief Executive, and discussions are progressing the further development of the partnership between Council and TROM and where this can bring benefits to our communities.

5. The 2025-34 LTP was adopted by Council on 30 June 2025.

The LTP document has been updated to align with the new organisational structure, reducing its length from 500 pages to 200 pages to improve readability. Following adoption, Council decided to retain water services delivery in-house rather than joining a joint CCO. Consideration is now being given to the preparing an amendment to the 2025-34 LTP, which would update the plan to reflect the proposed water services delivery model and set the path for an in-house business unit.

6. The Water Services Delivery Plan is moving forward for in-house delivery, with a draft submitted to the Government Department of Internal Affairs on 31 July.

PROGRESS WITH OTHER KEY WORK

In summary, other areas on which the Chief Executive continues to engage are:

· Regular meetings with Council Controlled Organisation Chief Executives and Boards.

· Regular meetings with other Waitaki Chief Executives.

· Otago Chief Executives Forum, for which the CE is currently the Chair.

· Otago Mayoral Forum.

· Otago Civil Defence Executive Group.

· Otago Civil Defence Joint Committee.

· Canterbury Chief Executives Forum.

· Canterbury Mayoral Forum.

· Waitaki Events Centre Project Board meetings.

Council

Meeting Agenda

26 August 2025

7 Decision Reports

7.1 Local Water Done Well Water Services Delivery Plan Model Confirmation and Adoption

Author: Paul Hope, Director Support Services

Recommender: Paul Hope, Director Support Services

Authoriser: Alex Parmley, Chief Executive

attachment: The Waitaki District Council Water Services Plan will be circulated separately to this agenda and will also be posted on the council website before the meeting.

Purpose

The purpose of this report is to present several recommendations in relation to the Waitaki District Council Water Services Delivery Plan (WSDP) to allow the submission of the (WSDP) to the Department of Internal Affairs (DIA) by the statutory deadline of 3 September, 2025.

The WSDP reflects the decision made on 8 July 2025 to adopt an In-house approach as the preferred water service delivery model. There are also three matters that have been discussed in public workshops that now require decisions. It also seeks approval of the attached WSDP, with amendments as required, for certification by the Waitaki District Council Chief Executive and submission to the Department of Internal Affairs by 3 September 2025.

executive summary

Council has considered matters in relation to the Local Water Done Well water reforms on numerous occasions. The most recent consideration was on 8 July 2025 when the decision was to undertake future water service delivery In-house. Since then, additional work has been undertaken to allow the development of a WSDP that reflects that decision. The results of this work have been presented in five public workshops. The WDSP presented at this meeting reflect the discussions that took place in these workshops.

OFFICER Recommendation

That Council:

1. Approves the following changes to information previously considered to be included in the Water Services Delivery Plan:

a) Additional budgeted expenditure of $9,790,000 to address compliance issues identified in the WSDP development process.

b) Additional expenditure of $9,450,000 to address resilience and renewal issues identified in the WSDP development process.

c) To increase charges in an approach to achieve a balanced budget and revenue sufficiency to meet operational, investment and borrowing costs.

2. Approves the Water Services Delivery Plan, subject to any adjustments required by the above decisions, set out in Attachment 1 for submission to the Department of Internal Affairs by 3 September 2025 for acceptance.

3. Notes that in accordance with section 18 of the Local Government (Water Services Preliminary Arrangements) Act 2024, the Chief Executive must provide certification to the Department of Internal Affairs in respect of the information provided by Waitaki District Council that the Water Services Delivery Plan complies with the Local Government (Water Services Preliminary Arrangements) Act 2024 and that the information contained in the plan is true and accurate.

4. Delegates to the Chief Executive the authority to finalise the plan including making minor amendments to the Water Services Delivery Plan (if required) in advance of submission to the Department of Internal Affairs.

5. Notes the willingness of the Council to explore future opportunities for collaboration with other Councils in relation to water services delivery.

context, analysis and advice

Background and Current Situation

Under the Government’s Local Water Done Well Legislation Councils are required to assess and agree a preferred water services delivery model that is financially sustainable, meets government regulatory standards, and supports long-term community outcomes. Councils must identify and evaluate options, select a preferred option, consult with their community, consider feedback alongside technical and financial analysis, and decide on the option to adopt for the future delivery of water services. Councils must prepare and adopt a WSDP, which outlines how the chosen model will deliver compliant and sustainable water services, before submitting it to the DIA for review and acceptance. If accepted the Council is legally bound to deliver the plan. The DIA will apply the following three tests in the assessment of the WSDP and whether the Council’s water services delivery is financially sustainable:

• Revenue sufficiency – is there sufficient revenue to cover water services delivery costs,

including servicing debt

• Investment sufficiency – is the projected level of investment sufficient to meet regulatory

requirements and provide for growth

• Financing sufficiency – are funding and finance arrangements sufficient to meet investment

Requirements

In March 2025, Waitaki District Council joined with Gore, Clutha and Central Otago District Councils to form Southern Water Done Well (SWDW), to investigate water services delivery options that meet the legislative requirements of Local Water Done Well. A joint CCO with these councils was the preferred option, and was further investigated along with an In-house, stand-alone CCO and CCO with Waimate, Timaru and Mackenzie District Councils that were presented to the community as part of the required LWDW consultation.

The results of the consultation were considered at a meeting on 8 July 2025, and the following was resolved:

RESOLVED WDC 2025/001

Moved: Cr Tim Blackler

Seconded: Cr Courtney Linwood

That Council:

1. Agrees to adopt an enhanced in-house water services delivery unit for a minimum of two years as the Council’s model for the delivery of water services in accordance with section 13(1)(k) of the Local Government (Water Services Preliminary Arrangements) Act 2024.

2. Requests staff to prepare a Water Services Delivery Plan that complies with matters set out in section 13 of the Local Government (Water Services Preliminary Arrangements) Act 2024 and the Council’s chosen proposed water services delivery model, to be brought back to Council for consideration, approval and certification by the Waitaki District Council Chief Executive prior to being submitted to the Department of Internal Affairs by 3 September 2025 for acceptance.

3. Will exercise its right to exit the joint arrangement with Central Otago, Clutha and Gore under the current commitment agreement.

4. Agrees to further discuss details surrounding the future management of water at another time and requests staff to prepare an outline with input from Elected Members for a workshop to that effect. For clarity, this future discussion is to explore key issues or themes raised through the consultation and investigation to date. It would also include looking at the various models adopted by other councils and highlighting matters for further investigation and focus - including exploring the feasibility of a future shared services/Joint CCO approach with South Canterbury Councils.

5. Notes the public submissions received and thanks all submitters for their feedback.

The Mayor then moved a further motion as below and it was seconded by Cr Hopkins. He gave his reasons for adding this to the list of resolutions, which included the need to get a better understanding of the complexity and challenges.

RESOLVED WDC 2025/002

Moved: Mayor Gary Kircher

Seconded: Cr Jim Hopkins

That Council instructs staff to provide clarity to the community and regular updates as immediately as possible, on how much more the in-house options will cost them over the joint Southern Group CCO, according to the most up-to-date modelling available.

Carried

As a consequence of the above, the remaining SWDW Councils were advised of the decision, and a formal withdrawal notice has been supplied. This has been accepted. It should be noted that all three Councils have resolved that Waitaki DC can rejoin the grouping later if it so desired.

This report seeks to address the matters set out in other matters covered in these resolutions.

Analysis and Discussion

Officers and various advisors, principally Morrison Low Advisory, have undertaken additional work and analysis to prepare a WSDP based on an In-house delivery approach. This work also considered feedback from the Department of Internal Affairs (DIA) on a draft WSDP they requested Council to supply. This additional work and other issues have been presented to Council and the community in a series of public workshops held on 22, 29 July and 5, 12 and 19 August.

During this process two key matters were identified where it was considered that modification is needed to be made to the information contained in the consultation material and subsequently presented in the draft WSDP.

Additional Expenditure

As a result of considering the feedback from the DIA it has been determined that bringing forward items previously deferred would address more directly the compliance matters raised by the DIA to ensure that the plan passes the investment sufficiency test. It is therefore recommended that the following items that were presented at the 19 August 2025 workshop be added in to the WSDP.

In addition to these compliance related matters, there were another group of deferred projects that addressed renewal and resilience issues identified by the DIA, again to ensure the plan passes the investment sufficiency test. It is recommended that these also be included in the WDSP.

Amended Revenue Flows (smoothing)

Another matter discussed at the 19 August workshop was ways to address the concerns about the level of increased charges in the 2028 financial year. Scenarios were presented showing how a graduated approach could be used and the impact of this approach. The primary impacts of this change would be to have an impact on debt levels and charges, particularly in the later years. However, the impact of smoothing, whilst graduating increases, does not overall reduce the increase required. In addition, the smoothing of charges could have a detrimental impact on the Council’s ability to secure a necessary credit rating as it places waters and the Council in a position of not having a balanced budget going forward. For this reason, smoothing in charge / rate increases is not recommended.

Other Matters - Additional Workshop Discussions

Other matters were considered in more detail following the 8 July decisions. These primarily focused on the impact on Council as a whole with water services being delivered in-house. These discussions included the availability of debt and funding for other services, project deliverability and potential services level changes. The need to amend the Long-Term Plan were also discussed. These matters will be addressed in future reports and are therefore not directly addressed in the decisions covered in this report.

Others Matters – South Canterbury Councils and SWDW Councils Decisions

At the time of producing this report there is no proposal that has been developed for the three South Canterbury Councils to work together on water services matters. The current approach of the three councils is:

· Timaru DC– Consulted on a stand-alone CCO as their preferred approach. Considered making a request to join SWDW at an emergency Council meeting on 12 August but no decision was made. Yet to approve a WSDP.

· Mackenzie DC– Consulted on a stand-alone CCO as their preferred approach however selected the option for an In-house model at a meeting 0n 15 July. Considering a draft WSDP on 19 August.

· Waimate DC – Consulted on an in-house option as their preferred approach. Confirmed as the preferred approach on 1 July. Considering a WSDP at a meeting on 19 August.

The three remaining SWDW Council have all approved the joint WSDP for submission to the DIA. In addition to approving the WSDP all three resolved to allow Timaru and Waitaki to join SWDW if they so desired. No action has been taken on this.

Updated Water Services Delivery Plan

The attached WSDP has been prepared based on the information previously received by Council and the attached and further analysis prepared by Morrison Low in response to the Council resolution on 8 July 2025. The attached WSDP has been written to satisfy the requirements of the Local Government (Water Services Preliminary Arrangements) Act 2024 and as set out in the DIA templated guidance. The WSDP has been reviewed by Council staff to ensure legislative compliance. DIA have also provided initial feedback on the WSDP, including a financial sustainability assessment and compliance with the legislative requirements set out in section 13 of the Local Government (Water Services Preliminary Arrangements) Act 2024. The DIA provided an initial review of the WSDP on 11 August 2025. The draft plan has been updated to address matters raised in the feedback and is considered to meet the requirements of section 13 and 14 of the Local Government (Water Services Preliminary Arrangements) Act 2024.

Financial Considerations

The financial implications for ratepayers and impact on overall Council debt are included within the WSDP

Risks

The risks presented to Council in July 2025 have been reviewed based on the further analysis by Morrison Low and matters presented in this report. Overall, there has been no material change in either nature of the risk or its potential impact.

Risk	Impacts
WSDP is not submitted by 3 September 25 statutory deadline	• Reputation risk for Councils • Potential DIA intervention with associated loss of decision-making control
DIA does not approve the WSDP and requires the document to be revised.	• DIA requires the group of Councils to alter the WSDP • DIA requires the group of Councils to change the operating model design • DIA requires other Councils to join the group of Councils before the WSDP is accepted and appoints a Crown Facilitator or Water Services Specialist
Ratepayers do not appreciate the impending costs increases for 3 Waters Services – irrespective of the delivery model adopted	• Increasing affordability issue for larger group of ratepayers • Negative publicity and reputation risk for Councils
Transition planning may reveal that actual transition costs are greater than forecast given the level of analysis to date as it was not the preferred option	• Potential increase in project budget • The transition approach may require revision.
Council does not secure a credit rating to allow an increase in borrowing limits	• Inability to implement WSDP creating regulatory compliance issues • Increasing affordability issue for larger group of ratepayers • Negative publicity and reputation risk for Councils
Changes to legislation through Bill 3 may require additional resource commitments and amendments to arrangements.	• Cost and time associated with rework • Potential increase in project budget • Additional council resource commitments

Significance and Engagement

This decision is of high significance in accordance with the Council’s Significance and Engagement Policy due to the financial, operational and governance implications for Council and the community. The decision will shape Council’s approach to water service delivery for the next decade and beyond.

Summary of Options Considered

Assessment of Preferred Option

The following table provides an update of the advantages and disadvantages of each option presented in the recommendations of this report.

Options Analysis – Adopt Water Services Delivery Plan

Options

Advantages

Disadvantages

Council adopts the Water Services Delivery Plan attached as attachment 1 to be submitted to the Department of Internal Affairs by 3 September 2025.

Council does not adopt the Water Services Delivery Plan attached as attachment 1 to be submitted to the Department of Internal Affairs by 3 September 2025.

• The attached WSDP is informed by updated (and

previous) analysis which notes ratepayers of the three SWDW Councils will be financially better off through the establishment of a Southern WSE. Initial financial analysis also shows the benefits of the inclusion of additional councils.

• Takes account of the DIA

assessment on 21 July 2025 that a jointly owned CCO is likely the only viable option to meet the legislated financial

sustainability requirements.

• Consistent with Council’s

decision on 8 July 2025.

• Meets the legislative deadline for the submission of the WSDP to DIA by 3 September 2025.

• No advantages identified.

• No disadvantages identified

• The attached WSDP will not be submitted to DIA.

• Insufficient time to prepare an alternative WSDP to meet DIA deadline of 3 September 2025.

• Highly likely tom result in actions by the DIA under Subpart 2 of the Local Government (Water

Services Preliminary Arrangements) Act 2024 including appointment of a Crown Facilitator or Water

Services Specialist.

Council authorises the Chief Executive to make minor amendments to the Water Services Delivery

Plan (if required) in advance of submission to the Department of Internal Affairs.

Council does not authorise the Chief Executive, in conjunction with the Chief Executives of to make minor

amendments to the Water Services Delivery Plan (if required) in advance of submission to the Department of Internal Affairs.

• Allows minor amendments to be addressed by the Chief

Executive(s) without having to reconvene Council.

• Council has visibility overall all minor amendments to the WSDP.

• No advantages identified.

• No disadvantages

identified.

• Slow timelines to finalise and submit the WSDP.

• Creates risk of not meeting the DIA deadline by 3 September 2025.

• Will require additional

Council decision making and meetings to agree even minor amendments to the Commitment Agreement.

Linkage to Strategic Plan Priorities

Councils must revisit and most likely formally amend the Long-Term Plans (LTP) and associated supporting strategies (including Financial & Asset Management Strategies), to reflect the water service delivery adopted and that it complies with Local Water Done Well legislation requirements. This will need to be undertaken in FY 26/27.

Next Steps

The circulated WSDP will, subject to any minor amendments, be prepared for submission to the DIA by 3 September 2025.

The Chief Executives will certify that the WSDP meets the requirements of the Local Government (Water Services Preliminary Arrangements) Act 2024 (including financial sustainability requirements) and that the information provided by its Council is true and accurate, in advance of submission.

• Progress the development of a detailed implementation plan beyond that included in WSDP, including the identification and securing of resources to support the transition and implementation phase.

• Further updates on the transition plan and other matters associated with the implementation of the WSDP and associated impacts on Council as a whole will be brought back to the Council for approval.

Council

Meeting Agenda

26 August 2025

7.3 Revocation of Reserve and Gifting of land

Author: Rachel McNeill, Property Officer

Authoriser: Joanne O'Neill, Director Strategy, Performance, and Design

Attachments: 1. Section 1 SO 605185 ⇩

Recommendation

That Council:

1. Approve pursuant to section 24(1) of the Reserves Act 1977 that the Local Purpose Reserve classification over the land on the corner of Gordon Street and Wynyard Street, Kurow, Section 1 SO 605185 is revoked and the land to remain vested in Council in a fee simple estate on the basis the site is no longer needed for reserve purposes due to change in community needs.

2. Approve the land being declared as surplus land.

3. Approve the land being gifted to Waitaki Valley Health Trust on the following basis:

a) The sale is subject to the reserves revocation process being completed as required under the Reserves Act 1977;

b) The agreement requires the removal of improvements from the existing site at 6-10 Wynyard Street, Kurow.

4. Delegate to the Chief Executive the authority to take such action and sign such documents as may be reasonably necessary to implements Council’s resolutions above, and matter ancillary to them.

Decision Objective

To seek Council approval to initiate the statutory process for revoking the reserve status of Section 1 SO 605185, Kurow (corner of Gordon and Wynyard Streets, adjacent to Kurow Memorial Hall) from local purpose (community buildings) reserve to fee simple title, and to obtain approval for the subsequent transfer of the property to Waitaki Valley Health Trust to enable development of a community medical centre facility.

Summary

The Waitaki Valley Health Trust has been collaborating with Waitaki District Council to develop a new medical centre in Kurow. The proposed site is Council-owned land at the corner of Gordon and Wynyard Streets (Section 1 SO 605185, 3,859 sqm). To support this project, this land was reclassified from Local Purpose (Passive Recreation) Reserve to Local Purpose (Community Buildings) Reserve following resolution in Council in September 2023 to facilitate the project. Resource consent for the medical centre development was granted in 2024.

The Council proposes to gift the land to the Trust to enable the medical centre’s construction.

Council considered a lease agreement as an alternative to gifting the land. However, leasing could limit the Trust’s ability to secure funding. Transferring full ownership (fee simple title) gives the Trust the certainty needed to obtain additional funding for the project.

A land investigation has confirmed the subject site’s suitability for reserve revocation and that it is not Crown-derived (Council holds it in its own right) land. Council now requires formal approval to proceed with the statutory reserve revocation process and subsequent land transfer to enable the community medical centre development.

The existing medical centre at 10 Wynyard Street, also on Council land, is no longer suitable for future community use. As part of the agreement, the Trust will remove all buildings and improvements from the current site at 6–10 Wynyard Street before returning it to Council.

decision-making expectations

Governance Decision-Making:

Approve proposal to revoke local purpose reserve land (Section 1 SO 605185) and vest in Council as fee simple land to facilitate the development of a medical centre in Kurow; and agree to gift the subject land to the Wataki Valley Health Trust for the purpose of the development of a new medical centre.

Operational Decision-Making:

Delegate Chief Executive to implement Council’s resolution including the associated statutory process requirements and agreement with the Trust.

Communications

Media Releases – contributed to by officers and Elected Members

Media/public enquiries regarding governance decision-making topics above can be addressed by governance

Media/public enquiries regarding operational decision-making topics above can be addressed by officers

Summary of Decision-Making Criteria

	No/Moderate/Key		No/Moderate/Key
Policy/Plan	Moderate	Environmental Considerations	No
Legal	Moderate	Cultural Considerations	No
Significance	Moderate	Social Considerations	No
Financial Criteria	Moderate	Economic Considerations	No
Community Views	Moderate	Community Board Views	Moderate
Consultation	Moderate	Publicity and Communication	No

Background

The site of the proposed new medical centre facility is located on the corner of Gordon and Wynyard Streets, Kurow (Section 1 SO 605185). The land is Council owned and classified as Local Purpose (Community Buildings) Reserve with an area of 3,859 sqm as outlined in attachment 1.

The subject land was previously classified under the Reserves Act 1977 (Reserves Act) as Local Purpose (Passive Recreation) Reserve. In 2023, Council resolved to reclassify the subject land to Local Purpose (Community Buildings) Reserve [Resolution WDC 2023/159]. Council resolved at its 26 September 2023 meeting to make the land available for the Waitaki Valley Health Trusts community Hub development.

Consultation for a resource consent under the Resource Management Act to facilitate the development of a new medical centre on the subject land and reclassification of the reserve land from Local Purpose (Passive Recreation) Reserve to Local Purpose (Community Buildings) Reserve was completed in in 2024. No objections were received. Resource consent was granted to subdivide land into two allotments and to establish a Community Health & Wellness Hub including associated car parking areas and emergency helicopter landing area on Lot 1 and storage for Hazardous Substances as per consent 201/202.2023.2258.

Through consultation on Council’s Long-Term Plan 2025 – 2034, feedback was received suggesting a proposal to gift land holdings to Waitaki Valley Health Trust to provide assets/funding for their project.

Process to divest local purpose reserve and gift land

The following process is required to be followed as per the Reserves Act 1977.

· Determine justification – Confirm the reserve is no longer required for its original purpose or that divestment serves the public interest.

· Consult with iwi/mana whenua

· Consult with the Commissioner

· Public consultation – Publicly notify the intention to revoke reserve status and allow for public submissions over the prescribed period.

· Consider submissions – Review and formally consider all public feedback received during consultation

· Council resolution – Pass resolution to revoke reserve status

· Legal completion – Complete survey requirements and convert land to fee simple title through LINZ.

· Execute gift – Transfer ownership to the community group via council resolution, ensuring compliance with Local Government Act 2002 asset disposal provisions.

To enable the disposal of the subject land to the Waitaki Valley Health Trust, Council must revoke the reserve status of the site in accordance with the Reserves Act. The Trust requires Council approval prior to any future disposal of the gifted land, Council must be satisfied that this revocation can be justified on the basis that the land is no longer required for its original purpose, or due to changing community needs.

As part of the agreement, it is anticipated that the trust’s current site at 6-10 Wynyard Street, Kurow would be cleared of all improvements before being returned to Council. Discussions with the Trust have confirmed their willingness to accept the land under these conditions. All costs associated with the revocation of the reserve status and the transfer of land title are expected to be met by the Trust.

Summary of Options Considered

Option 1 – Revocation of Reserve and Gifting of Land to Waitaki Valley Health Trust (preferred option)

Advantages

Disadvantages

Risks

· Supports development of a community health and wellness hub in Kurow

· Provides the Trust with a greater security of tenure, enabling access to funding and long-term planning

· Aligns with community feedback received during the Long-Term Plan process, adding to the Trust’s assets

· Council permanently loses ownership of the land

· Potential public concern over gifting rather than leasing or selling

· Legal and administrative costs associated with revocation and transfer

· Council loose direct control of the site regardless of if leased or disposed of

· Public or iwi opposition during consultation phase

· Future disposal of the land by the Trust without Council oversight (mitigated by condition requiring Council approval)

· Perception of setting a precedent for gifting Council land

· Council do not realise the true monetary value of the land

Option 2 – Status Quo

Retains the reserve status but may hinder development and funding opportunities for the Trust. Council would progress leasing the site to the Trust.

Advantages

Disadvantages

Risks

· Council retains ownership of the land

· May limit the Trust’s ability to secure funding due to lack of freehold title.

· Creates ongoing administrative and legal obligations for Council.

· The Trust cannot use the site as leverage for funding.

· The Trust may be unable to proceed with their project if funding is contingent on land ownership

· Potential delays or complications negotiating lease terms

Assessment of Preferred Option

Proceeding with the revocation of reserve status and gifting of Section 1 SO 605185 to the Waitaki Valley Health Trust is considered the most effective and efficient option to support the Trust’s development. Delaying this decision and opting to lease the site instead would still require legal input and incur similar costs, without providing the Trust with the freehold title necessary to secure funding. By deciding to dispose of the land now, Council can avoid duplicating legal processes and administrative effort, while enabling the Trust to move forward with greater certainty and momentum.

Conclusion

The proposed revocation of reserve status and gifting of Section 1 SO 605185 to the Waitaki Valley Health Trust presents a timely opportunity to support the development of a community health and wellness hub in Kurow. While the decision involves the permanent transfer of Council-owned land, the community benefits—particularly in enabling the Trust to secure funding and deliver essential health services—are considered to outweigh potential concerns. The gifting arrangement includes safeguards such as Council oversight of any future disposal and the return of the Trust’s current site. Given the low to moderate significance of the proposal under Council’s Significance and Engagement Policy 2023, and the alignment with strategic community outcomes, Council is well placed to decide now rather than proceed with a lease arrangement that may hinder the Trust’s ability to advance their project.

Additional Decision-Making Considerations

Waitaki District Council Strategic Framework

Outcomes

Community Outcomes

Prosperous District

· Fostering a diverse and resilient economy

Strong Communities

· Enabling safe, healthy communities

· Connected, inclusive communities

Quality Services

· Community facilities and services we are proud of

Policy and Plan Considerations

The proposal to gift the land to Waitaki Valley Health Trust is of low to moderate significance under the Waitaki District Council’s Significance and Engagement Policy 2023. While the land is not classified as a strategic asset and the gifting does not substantially alter service levels, the transfer supports community health outcomes and involves a change in land ownership. Accordingly, the policy supports a proportionate engagement approach, including iwi consultation and public notification, to ensure transparency and community awareness of the decision.

Community Views

Community view may arise during notification process to revoke reserve status.

Due to time constraints this report is going directly to Council. This report will be circulated to Community Board members prior to the Council meeting.

Financial Considerations

The main financial implication is the disposal of a Council asset from the books.

It is proposed that the Trust will cover the following estimated costs associated with revoking the reserve status and transfer of land:

· Department of Conservation – $500 - $1,000

· Property Consultant - $1,000

· Legal - $3,000

Legal Considerations

The Council will need to engage with the Reserves Act 1977 process for revoking a reserve.

Publicity and Community Considerations

· Iwi consultation will commence following Council approval.

· Public notification will be undertaken as required under section 24 of the Reserves Act 1977

· Submissions may arise from consultation

Council

Meeting Agenda

26 August 2025

7.4 Palmerston Squash Racquets Club - Gifting of Building

Author: Suzanne Clark, Property Officer

Recommender: Claire Foster, Commercial & Property Lead

Authoriser: Joanne O'Neill, Director Strategy, Performance, and Design

Purpose

To seek Council’s approval to gift the building located at 33 Gilligan Street, Palmerston, to the Palmerston Squash Racquets Club (the Club), a not-for-profit community organisation, to support local sports.

executive summary

The Palmerston Squash Racquets Club operates from a Council-owned building at 33 Gilligan Street, constructed in the mid-1980s on reserve land before Council assumed ownership following the Club's loan default in 1989. The current lease has expired with revenue insufficient to cover costs, while approximately $20,000 in maintenance is required for water ingress issues with no Council budget available. Council currently subsidises the Club through below-market rent and building maintenance contributions, creating an ongoing ratepayer burden.

The Club have indicated that their preferred option is to transfer building ownership to the Club by way of a gift, under a peppercorn ground lease, with the Club assuming full responsibility for all maintenance, rates, insurance and outgoings. This approach eliminates the ratepayer subsidy, avoids the need for Council loan funding, enhances the Club's grant funding opportunities, and has the support of the Waihemo Community Board (Resolution WCB2025/010). While the transfer results in an accounting loss on the $241,000 book value, there is no cash impact to Council. Risk mitigation includes ground lease clauses requiring that the building is to be removed or revert to Council ownership if the club ceases operations or is wound up.

OFFICER Recommendation

That Council:

1. Approves the transfer by way of gift to the Palmerston Squash Racquets Club, the Palmerston squash courts building located at 33 Gilligan Street, Palmerston on Section 82 Block XXXIII Town of Palmerston.

2. Delegates authority to the Chief Executive to conclude the transfer of the building.

decision-making expectations

Governance Decision-Making:

Approve proposal to transfer by way of gift to the Palmerston Squash Racquets Club, the Palmerston squash courts building located at 33 Gilligan Street on Section 82 Block XXXIII Town of Palmerston.

Operational Decision-Making:

Delegate Chief Executive to implement Council’s resolution including the transfer of the building and ground lease with the squash club.

Communications

Media Releases – contributed to by officers and Elected Members

Media/public enquiries regarding governance decision-making topics above can be addressed by governance

Media/public enquiries regarding operational decision-making topics above can be addressed by officers

Summary of Decision-Making Criteria

	No/Moderate/Key		No/Moderate/Key
Policy/Plan	Moderate	Environmental Considerations	No
Legal	Moderate	Cultural Considerations	No
Significance	No	Social Considerations	No
Financial Criteria	No	Economic Considerations	No
Community Views	No	Community Board Views	No
Consultation	No	Publicity and Communication	No

context, analysis and advice

Background

The Palmerston squash courts building is located at 33 Gilligan Street, Palmerston – see Image A. Although the squash building has technically been owned by Council since amalgamation with Waihemo County Council (WCC), it was only added to the Council’s asset register in 2022.

Image A

The Club is a rural affiliate of Squash NZ, currently operating with 29 members. While membership numbers are lower than the average for rural squash clubs in New Zealand, the Club remains active and financially stable. Historically, the Club has sought support from Council during periods of declining membership.

The Club constructed their facility on Council reserve land in the mid-1980s using community fundraising ($150,000) and a loan ($50,000). When the Club defaulted on loan payments in 1989, WCC assumed ownership and loan obligations, leasing the building back to the Club for 33-years at market rent.

Under the 1989 lease, the Club was responsible for all interior and exterior maintenance and paid market rent. In 2022, a new lease shifted some maintenance responsibilities to the Council. These now align more closely with a standard commercial tenancy, though the Club pays below-market rent and no outgoings, resulting in a ratepayer subsidy for building maintenance and a top-up for rates and insurance costs. The Club has maintained the building’s interior and funded improvements.

Despite a 1999 community board recommendation to transfer ownership back to the Club, financial constraints of the Club prevented completion. The Club experienced intermittent financial difficulties from this time resulting in rent reductions and rates arrears. In 2022, Council resolved to remit penalties ($2,634.99), require payment of rates arrears ($7,529), provide building upgrade funding ($3,700), and set rent at $60 per member annually.

The lease expired with revenue insufficient to cover costs. Negotiations for renewal stalled over rent levels, and approximately $20,000 in building maintenance was identified with no council budget available.

On 7 July 2025, the Waihemo Community Board resolved (WCB2025/010) to support transferring building ownership to the club for a nominal fee, with the club assuming responsibility for rates, insurance and maintenance under a ground lease arrangement.

Current maintenance requirements are limited to the changing rooms, where water ingress is affecting windows, reveals and the subfloor area immediately under the showers. The cost to fully repair the damage is approximately $20,000.

Financial Considerations

The original loan balance at 1989 amalgamation is untraceable, however records show an outstanding balance of $40,000 in June 1994. This loan was fully repaid by June 2004 through rates levied on Waihemo properties.

The building was added to Council's asset register in 2022 at $241,000 book value, with component useful lives ranging 9-35 years. Asset disposal would generate an accounting loss but no cash impact to Council.

Summary of Options Considered

Option 1 –Transfer by way of gift to the Palmerston Squash Racquets Club, the Palmerston squash courts building located at 33 Gilligan Street, Palmerston on section 82 Block XXXIII Town of Palmerston and grant a peppercorn ground lease.

The proposal encompasses the existing building only, transferred on an as-is basis. The Club would assume responsibility for all maintenance costs and outgoings under a peppercorn rental arrangement, subject to any future community rent policy.

Advantages

Disadvantages

Risks

· The Club assume full responsibility and cost liability for all building maintenance, rates and other outgoings.

· Loan funding for repairs is not required - no ratepayer subsidy.

· Supports and aligns with Council’s Recreation Strategy.

· Will increase the likelihood of the Club receiving grant funding for building improvement projects.

· Ground lease conditions can include clauses for improvements removal or ownership reverting to the Council if the Club were wound-up.

· No ratepayer subsidy in the short to medium term as the Club will become responsible for all maintenance, rates and insurance.

· Waihemo Community Board supports this option.

· If the Club is wound-up, despite protections in the ground lease, Council may inherent a building that is further deteriorated.

· Given the limited population base from which to draw membership, there remains a risk that Council financial assistance may be sought in the longer term or that the Club is wound-up and that Council inherits a building that is further deteriorated.

Option 2 – Status quo

Advantages

Disadvantages

Risks

· Building will be maintained to standard, maximising useful life.

· Will enable Club membership fees to be kept affordable for the community.

· Immediate and ongoing ratepayer subsidy would be required.

· Does not align with Council’s Recreation Strategy.

· Perceived inequity from other clubs.

· May set a precedent of assistance for other clubs.

Option 3 – Consult in the Annual Plan to introduce a Palmerston Hall rate to fund squash building maintenance, with the building administered by a hall committee.

Advantages

Disadvantages

Risks

· Additional maintenance funding will be sourced from the community where the benefit is delivered.

· No guarantee that the community will engage with any proposal or accept a targeted rate.

· Introduces a third party to any agreement.

· Does not align with Council’s Recreation Strategy

· Perceived inequity from other clubs.

· May set a precedent of assistance for other clubs.

· May not derive enough revenue to cover all maintenance requirements.

Assessment of Preferred Option

The preferred option is to gift the building to the Club and grant a peppercorn ground lease that requires the Club to pay all rates demanded. This option is the preferred approach as it delivers optimal outcomes for both Council and the community. The Club are supportive of this approach and are resistant to any option requiring a rent amount that covers all outgoings as well as a contribution towards building maintenance. Other Council teams, as operational landowner and asset owner support the transfer proposal as do the Waihemo Community Board.

Conclusion

Gifting the Palmerston Squash Racquets Club building and establishing a peppercorn ground lease represents the most strategic and financially responsible approach for Council. This solution eliminates the immediate $20,000 repair liability and ongoing ratepayer subsidies while transferring full operational responsibility to the Club.

The arrangement aligns with Council's Recreation Strategy by enabling club self-sufficiency and investment in their facility, while providing Council with appropriate safeguards through ground lease provisions. By removing barriers to grant funding access and ensuring cost recovery objectives are met, this option delivers sustainable community recreation infrastructure without ongoing financial burden to ratepayers.

The transfer effectively resolves the longstanding lease impasse while maintaining community access to squash facilities through a financially viable club structure, making it the optimal solution for all stakeholders.

Next Steps

The Commercial and Property Team will negotiate a new ground lease with the Club and arrange transfer of the building to the Club upon signing of the agreement.

Additional Decision-Making Considerations

Waitaki District Council Strategic Framework

Outcomes

Community Outcomes

Prosperous District

· Fostering a diverse and resilient economy

Strong Communities

· Enabling safe, healthy communities

· Connected, inclusive communities

Quality Services

· Community facilities and services we are proud of

Policy and Plan Considerations

The recommendation aligns with Council’s Recreation Strategy by creating an opportunity for the Club to create a ‘strong recreation club environment’. The Club will be motivated to invest in their future and invest in a building they own. Enabling Club success contributes to a higher level of physical activity in the district. The Strategy has a target of 100% of costs associated with clubroom use being recovered. Council typically provides facilities able to be used by multiple users such as general playing fields and the Events Centre currently under construction. There is no known precedent for Council to retain and maintain a single code purpose-built building at the ratepayer’s cost and to subsidise the cost of rates and insurance.

Legal Considerations

The preferred option complies with Council’s legal obligations for disposing of assets under the Local Government Act 2002 section 12 and section 14.

The Reserves Act governs the process to be followed when considering granting a lease of any reserve land.

Council

Meeting Agenda

26 August 2025

7.5 Ratification of Submissions on Changing Resource Management National Directions

Author: David Campbell, Heritage & Planning Manager

Authoriser: Roger Cook, Director Natural and Built Environment

Attachments: 1. WDC submission RM national directions packages 1 and 2 ⇩

2. WDC submission RM national direction package 3 ⇩

3. WDC submission RM national direction package 4 ⇩

Recommendation

That Council:

1. Formally ratifies Waitaki District Council’s submissions on updating RMA national direction, as submitted to the Ministry for the Environment on 25 July 2025.

Decision Objective

To retrospectively ratify Waitaki District Council’s (WDC’s) submissions on Resource Management Act (RMA) national direction packages, being Infrastructure and Development, Primary Sector, Freshwater and Going for Housing Growth, as submitted to the Ministry for the Environment on 25 July 2025.

Summary

Government is implementing the most significant resource management reforms in decades, with the changes affecting how we manage land use, infrastructure, and environmental protection. These changes will affect how Council processes applications, what activities need consents and permits, and how we balance environmental protection with economic development. The proposed national direction changes represent a shift from the current environment-first hierarchy to a balanced framework giving equal weight to economic, social, and environmental factors.

Critically, these reforms centralise decision-making power, moving away from local discretion toward standardised national approaches that risk undermining community voice in shaping their own development futures. This centralisation threatens to erode local democracy by reducing opportunities for meaningful community input on development priorities and environmental protections that reflect distinct local values and character. The impact is amplified by concurrent legislative changes including the Local Government Systems Improvements Bill and the Building and Construction (Small Stand-Alone Dwellings) Amendment Bill—on which Council also recently submitted concerns. Together, these reforms signal a systematic reduction in local government autonomy and community participation in critical planning decisions that will shape our district's future.

Council’s submission raises concerns around the current resource management reform programme, which represent a piecemeal response to coalition government priorities rather than systematic reform. The submission outlines that proposed changes to national directions also create cumulative environmental trade-offs by weakening landscape, biodiversity and heritage protections through more enabling consent pathways across national directions, along with multiple objectives required to be given equal weighting. Concerns have also been raised that system fragmentation persists with unresolved conflicts between national instruments, whilst planning gaps fail to address cumulative development impacts and overlook critical rural infrastructure constraints.

Council’s submission supports enabling appropriate growth and infrastructure but requires a balanced approach that maintains local flexibility within national frameworks. The submission highlights that too often, rural and provincial areas are sacrificed for large scale projects that deliver few local benefits, but the ongoing legacy of their often-irreversible effects on the environment. Many of the proposed changes to national direction will further exacerbate this issue.

The submission also asks that resource management reforms must include meaningful community consultation, maintain democratic input in planning decisions, and provide substantial capacity building support to enable successful implementation without compromising local character and identity.

decision-making expectations

Governance Decision-Making:

To approve the submission (retrospectively)

Operational Decision-Making:

The submission has been lodged.

Communications

Media Releases – contributed to by officers and Elected Members if required

Media/public enquiries regarding governance decision-making topics above can be addressed by governance

Media/public enquiries regarding operational decision-making topics above can be addressed by officers

Summary of Decision-Making Criteria

	No/Moderate/Key		No/Moderate/Key
Policy/Plan	Key	Environmental Considerations	Moderate
Legal	No	Cultural Considerations	Moderate
Significance	No	Social Considerations	No
Financial Criteria	No	Economic Considerations	Moderate
Community Views	No	Community Board Views	No
Consultation	No	Publicity and Communication	No

Background

National direction supports local decision-making under the RMA, and includes national policy statements, national environmental standards, national planning standards and regulations. It can direct plan changes, provide guidance for resource consent decisions and introduce nationally consistent rules and environmental standards.

Targeted amendments to existing national instruments have been proposed, plus four new national direction instruments. These are summarised below:

Package 4 proposes to address Going for Housing Growth and does not make any changes to existing national direction under the RMA. Instead, feedback on the discussion document will be used to inform officials’ thinking on policy development for Phase 3 of resource management reform.

It is structured around three pillars that make system changes to address the underlying causes of the housing supply shortage.

These are:

· Pillar 1: Freeing up land for urban development, including removing unnecessary planning barriers

· Pillar 2: Improving infrastructure funding and financing to support urban growth

· Pillar 3: Providing incentives for communities and councils to support growth.

Key policy shifts include:

1. Environmental Primacy → Balanced Objectives

Moving from hierarchical decision-making (environment first, people/economy second) to multiple objectives with equal weight. Infrastructure benefits and economic development now balanced against environmental effects.

2. Prescriptive Rules → Risk-Based Management

Replacing blanket restrictions with site-specific risk assessments. Natural hazards, forestry slash management, and freshwater all move to risk-proportionate approaches.

3. Local Discretion → National Consistency

Standardising rules across councils to reduce uncertainty and compliance costs. Consistent terminology, consent pathways, and national standards for key activities.

4. Consent-Heavy → Permitted Activities

Streamlining development by making more activities permitted without consent: granny flats, water storage, infrastructure maintenance, telecommunications upgrades.

5. Regulatory Barriers → Development Enablement

Proactively supporting critical infrastructure, housing, and economic development. Enhanced policy support for renewable energy, Māori development, and priority activities.

6. Rigid Standards → Flexible Local Application

Allowing councils to deviate from national standards where justified by local conditions, while maintaining core environmental protections.

Council’s submission is included as Attachments 1-4.

Council was party to Taituarā’s submission on this matter and generally endorsed Taituarā’s submission.

Summary of Options Considered

Option 1 – Formally ratify Council’s submissions on changing resource management national directions as submitted to Ministry for the Environment on 25 July 2025 (Recommended)

Option 2 – Do not formally ratify Council’s submissions on changing resource management national directions as submitted to Ministry for the Environment on 25 July 2025.

Assessment of Preferred Option

Draft submissions were pre-circulated to the Governance Team on 11 July 2025 and discussed at the Councillor briefing on 8 July 2025.

The submissions were sent to Ministry for the Environment on 25 July 2025 to meet the limited consultation timeframes. Therefore Option 1 is the only viable option.

Conclusion

By lodging a submission on the national direction packages will help inform government of the aspects Council supports, opposes or is neutral to but seeks changes be made.

Additional Decision-Making Considerations

Waitaki District Council Strategic Framework

Outcomes

Community Outcomes

Prosperous District

· Attractive to new opportunities

· Supporting local businesses

· Fostering a diverse and resilient economy

Strong Communities

· Enabling safe, healthy communities

· Connected, inclusive communities

· Promoting a greater voice for Waitaki

· Celebrating our community identity

Quality Services

· Robust core infrastructure and services

· Community facilities and services we are proud of

Valued Environment

· Protecting our diverse landscapes and water bodies

· Meeting environmental and climate change challenges

Policy and Plan Considerations

The national direction packages will have a flow on effect to the District Plan, once the national direction instruments are enacted.

Community Views

N/A – the community could have submitted on the national direction packages.

Financial Considerations

Nil – the submission was prepared in house.

Legal Considerations

None

Environmental Considerations

The national direction packages address some environmental matters.

Publicity and Community Considerations

Nil

Property Address		Date		Decision Requested	Decision Made
Kenilworth Road, Oamaru	July 2025		Defer payment of development contributions and financial contributions.		Deferred to allow payment on the settlement of sale of each lot, with the balance due in 24 months.
Taward Street, Oamaru		Feb 2025		Reconsider development contributions.	Special assessment reduced the level of development contributions required.
Sussex Street, Weston		Oct 2024		Defer payment of water and wastewater development contributions and financial contributions.	Delegated decision to DC Subcommittee.
Pinot Noir Court, Omarama		Sept 2024		Defer payment of development and financial contributions.	Deferred to allow payment on the settlement of sale of each lot, with the balance due in 24 months.

Property Address	Date	Decision Requested	Decision Made
Fiveforks	May 2025	Waive water development contributions.	Waived water development contributions as the activity was excluded from “commercial activity” under the Policy.
Sussex Street, Weston	Feb 2025	Defer payment of water and wastewater development contributions and financial contributions.	Deferred to allow payment over 24 months with balance to be paid on sale of the 4^th lot if sold prior to 24 months.