1 Operations & Monitoring Committee Doc No. RDC May 2016 NOTICE OF AN ORDINARY MEETING OF THE OPERATIONS & MONITORING COMMITTEE

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1 1 Operations & Monitoring Committee Doc No. RDC May 2016 File No: NOTICE OF AN ORDINARY MEETING OF THE OPERATIONS & MONITORING COMMITTEE to be held on Thursday, 5 May 2016 at 9:30am in the Council Chamber, Rotorua Lakes Council Chairperson: Cr Wepa Members: Cr Sturt (Deputy) Mayor Chadwick Cr Bentley Cr Donaldson Cr Gould Cr Hunt Cr Kent Cr Maxwell Cr McVicker Cr Raukawa-Tait Cr Searancke Cr Tapsell Mr Biasiny-Tule Mr Waru Quorum: 8 A G E N D A 1. APOLOGIES 2. DECLARATIONS OF INTEREST Members need to stand aside from decision-making when a conflict arises between their role as a Member of the Council and any private or other external interest they might have. This note is provided as a reminder to Members to review the matters on the agenda and assess and identify where they may have a pecuniary or other conflict of interest, or where there may be a perception of a conflict of interest. If a member feels they do have a conflict of interest, they should publicly declare that at the start of the meeting or of the relevant item of business and refrain from participating in the discussion or voting on that item. If a member thinks they may have a conflict of interest, they can seek advice from the Chief Executive or the Governance & Partnerships Manager (preferably before the meeting). It is noted that while members can seek advice the final decision as to whether a conflict exists rests with the member.

2 2 Operations & Monitoring Committee Doc No. RDC May URGENT BUSINESS Section 46A of the Local Government Official Information and Meetings Act 1987 states: (7) An item that is not on the agenda for a meeting may be dealt with at the meeting if (a) the local authority by resolution so decides, and (b) the presiding member explains at the meeting at a time when it is open to the public, - (i) (ii) the reason why the item is not on the agenda; and the reason why the discussion of the item cannot be delayed until a subsequent meeting. (7A) Where an item is not on the agenda for a meeting, - (a) that item may be discussed at the meeting if (i) that item is a minor matter relating to the general business of the local authority; and (ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but (b) No resolution, decision, or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discuss. Page 4. PRESENTATIONS 4.1 Rotorua Air Quality Working Party update Stephen Lamb, Bay of Plenty Regional Council 5. CONFIRMATION OF MINUTES 5.1 Minutes of the Operations & Monitoring Committee meeting held 7 April STAFF REPORTS RECOMMENDATION 1: Financial performance for the 9 months ended 31 March RECOMMENDATION 2: Non-financial performance for the nine months ended 31 March RECOMMENDATION 3: Operational report for March/April RESOLUTION TO EXCLUDE THE PUBLIC The general subject 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(1) of the Local Government Official Information and Meetings Act 1987, for the passing of this resolution are as follows:

3 3 Operations & Monitoring Committee Doc No. RDC May 2016 General subject of each matter to be considered OPERATIONS & MONITORING COMMITTEE MEETING 7 April 2016 (Minutes) Council controlled organisation 9 months report Grow Rotorua Reason for passing this resolution in relation to each matter Enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). Ground(s) under Section 48(1) for passing of this resolution Section 48(1)(a) Section 7(2)(i) This resolution is made in reliance on Section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Sections 6 or 7 of the Act or Sections 6, 7 or 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above (in brackets) with respect to each item. 8. CONFIDENTIAL ITEMS 8.1 Confirmation of confidential minutes... C1 Rotorua Lakes Council is the operating name of Rotorua District Council.

4 4 Operations & Monitoring Committee Doc No. RDC May 2016 OPERATIONS AND MONITORING COMMITTEE DELEGATIONS Type of Committee Subordinate to Committee Council Subordinate Committees Legislative Basis Schedule 7 clause 30 (1) (a), Local Government Act Purpose Reference Membership The purpose of the Operations and Monitoring Committee is to assist the Council to ensure consolidated and complete reporting and monitoring of all financial and non-financial information and performance measures against the Annual Plan, Long Term Plan and strategic goals/priorities. Councillor Wepa (Chair) Councillor Sturt (Deputy Chair) Quorum 8 All elected members and the Mayor, and two Te Arawa representatives as non-elected members (with speaking and voting rights). Meeting frequency Delegations Monthly The Committee s role is recommendatory only. 1 It is authorised to take the actions precedent to the exercise by the Council of its statutory responsibilities, duties and powers, by: Monitoring and reporting on the performance of the Council in terms of the organisational targets set in the Long Term Plan and Annual Plan both financial and non-financial; Monitoring and reporting on operational performance and benchmarking; Undertaking quarterly reviews and reporting on Council s financial performance; Monitoring, reviewing and reporting on the performance of council controlled organisations; Monitoring, reviewing and reporting on Council s tender and procurement processes; Monitoring, reviewing and reporting on the performance and management of Council contracts; 1 Council is authorised to delegate anything precedent to the exercise of Council s powers, duties and functions - Schedule 7, clause 32 of the Local Government Act 2002

5 5 Operations & Monitoring Committee Doc No. RDC May 2016 Monitoring, reviewing and reporting on the performance and management of major capital projects (including considering and making recommendations on issues that may arise); Providing oversight and making recommendations in respect of proposals to exercise the powers and remedies of the General Conditions of Contract (by Council as Principal ) including taking possession of, determining, or carrying out urgent repairs to works covered by the contract; Considering and making recommendations on outstanding accounts and the remission of fees and charges, for amounts exceeding $6,000; Considering and making recommendations as to the settlement of uninsured claims for compensation or damages where the amount exceeds the amounts delegated to council officers; Considering and making recommendations on requests for Council to guarantee third party loans; Considering and making recommendations on proposals and requests for the grant of easements or rights of way over Council property; Considering and making recommendations in respect of proposals to which will or are likely to significantly vary the levels and/or terms of insurance for Council assets; Such other functions as the Council may direct from time to time. 2 Relevant Statutes Limits to Delegations All the duties and responsibilities listed above must be carried out in accordance with the relevant legislation. The Committee does not have the delegated authority to make decisions for and on behalf of the Council. All matters requiring a decision of Council must be referred, by way of recommendation, to the Council for final consideration and determination. In the event that the Council resolves not to approve or adopt a Committee recommendation, the item shall be returned to the Committee via the Chief Executive for review and subsequent referral to the Council for further consideration and determination. 2 A committee is subject in all things to the control of the local authority, and must carry out all general and special directions of the Council given in relation to the committee - see Schedule 7, clause 30(3) of the Local Government Act 2002.

6 MINUTES OF PREVIOUS MEETING

7 3/1 7 Operations & Monitoring Committee Doc No. RDC May 2016 ROTORUA LAKES COUNCIL Minutes Operations & Monitoring Committee meeting held Thursday, 7 April 2016 at 9:30am in the Council Chamber, Rotorua Lakes Council Present: Apologies: Officers present: Cr Sturt (Acting Chairperson) Mayor Chadwick, Cr Bentley, Cr Donaldson, Cr Gould, Cr Hunt, Cr Kent, Cr McVicker, Cr Maxwell, Cr Raukawa-Tait, Cr Searancke, Cr Tapsell, Rawiri Waru and Potaua Biasiny-Tule. Cr Wepa G Williams, chief executive; D Foster, chief operating officer; J-P Gaston, group manager Strategy and Partnerships; T Collé, chief financial officer; M Morrison, Kaitiaki Maori; C Tiriana, manager CE office; A Bell, water solution director (part); S Michael, Transport/Waste Solutions director; M A Gill, Public Relations Manager; N Hill, Manager Compliance Solutions (part); S Nunn, environmental health officer (part); R Pitkethley, Sports & Recreation Manager (part); A McGregor, Strategy Manager; L Goldsmith, programme lead (part); J Riini, partnership advisor (part); P Spurdle, manager Consent Solutions (part); G Manzano, manager water planning; R Dunn, governance lead; C Peden, governance support advisor. The Chairman declared the meeting open. A mihi was then given by Monty Morrison, followed a formal welcome by the chair to Te Tatau o Te Arawa Board members Rawiri Waru and Potaua Biasiny-Tule. The chair then welcomed other members of the committee and members of the public, with a special welcome to Te Taru White and Ana Morrison from the Te Tatau o Te Arawa Board. A one-minute silence was observed in memory of Cr Wepa s husband, Matthew Wepa, who passed away recently. 1. APOLOGIES Resolved: That the apologies from Cr Wepa be accepted. Cr Gould/Cr Maxwell OM16/04/019 CARRIED 2. DECLARATIONS OF INTEREST None.

8 3/1 8 Operations & Monitoring Committee Doc No. RDC May URGENT BUSINESS None. 4. PRESENTATION 4.1 Around town Rotorua Smart phone app Matt Browning and Danny McCullum Matt Browning and Aimee McGregor spoke to a Powerpoint presentation (Attachment 1). Resolved: That the presenters be thanked. Cr Sturt/Cr Hunt CARRIED 5. CONFIRMATION OF MINUTES 5.1 Operations & Monitoring Committee meeting 2 March 2016 Resolved: That the minutes of the Operations & Monitoring Committee meeting held 2 March 2016 be confirmed as a true and correct record, with the following correction: Kaitiaki Maori title had been spelt incorrectly Cr Gould/Cr Searancke OM16/04/020 CARRIED 6. REPORT BACK ON COUNCILLOR ATTENDANCE AT CONFERENCES Resolved: 1. That the report Global Compact Cities Programme - Ethical Cities: locking in liveability be received; Cr Raukawa-Tait/Cr Hunt CARRIED 2. That it be recommended to Council that approval be given for Rosemary Viskovic and a Te Arawa representative to seek external funding support to attend the Habitat 3 Forum in Quito, Equador in October 2016, to have a New Zealand presence at this event. Cr Maxwell/Cr Kent OM16/04/021 CARRIED

9 3/1 9 Operations & Monitoring Committee Doc No. RDC May STAFF REPORTS 7.1 Recommendation 1: Financial performance for the 8 months ended 29 February Thomas Collé spoke to a Powerpoint presentation (Attachment 2a). Recommendation: That the report Financial performance for the 8 months ended 29 February 2016 be received. Cr Donaldson/Cr McVicker OM16/04/022 CARRIED A document with updated figures and information about other councils credit ratings was tabled (Attachment 2b). ATTENDANCE: Cr Raukawa-Tait left the meeting at 10.35am. 7.2 Recommendation 2: Food Act 2014 implementation \40 Neven Hill spoke to a Powerpoint presentation (Attachment 3). ATTENDANCE: Cr Raukawa-Tait re-joined the meeting at 10.50am. Resolved: That the report and presentation on the Food Act 2014 Implementation be received. Cr Searancke/Cr McVicker OM16/04/023 CARRIED 7.3 Recommendation 3: Quarterly progress towards 2030 (March 2016) Aimee McGregor overviewed the chart Quarterly progress towards 2030 on page 28 of the agenda. Resolved: That the report Quarterly Progress Towards 2030 (March 2016) be received. Cr Bentley/Cr Gould OM16/04/024 CARRIED

10 3/1 10 Operations & Monitoring Committee Doc No. RDC May Recommendation 4: Operational report for February/March Thomas Collé overviewed the Executive dashboard on page 31 of the agenda. Resolved: That the report Operational Report for February/March 2016 be received. Cr Donaldson/Cr Tapsell OM16/04/025 CARRIED Sincere appreciation was expressed to Oonagh Hopkins, J-P Gaston, Rick Dunn and members of the working party for their work on the representation review. A Sister Cities conference was hosted by Rotorua Lakes Council recently. ATTENDANCE: Cr Raukawa-Tait left the meeting at 12.27pm Dave Foster gave a verbal update on Eastside noise issues. Under the Performance and Delivery Group s report on page 40 of the agenda, the following correction was noted: New building (mainly commercial) figure for YTD 15/16 should read +11% (not -23%). ATTENDANCE: Cr Searancke left the meeting at 1.10pm. 8. RESOLUTION TO GO INTO PUBLIC EXCLUDED (TO CONSIDER AND ADOPT CONFIDENTIAL ITEMS) Resolved: That the committee move into public excluded session. Cr Maxwell/Cr Hunt OM16/04/026 CARRIED The general subject 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(1) 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 RECOMMENDATION 5 Council controlled organisation 9 months report Grow Rotorua Reason for passing this resolution in relation to each matter Enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). Ground(s) under Section 48(1) for passing of this resolution Section 48(1)(a) Section 7(2)(i)

11 3/1 11 Operations & Monitoring Committee Doc No. RDC May 2016 This resolution is made in reliance on Section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Sections 6 or 7 of the Act or Sections 6, 7 or 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above (in brackets) with respect to each item. The meeting adjourned at 1.15pm and reconvened at 1.20pm. ATTENDANCE: Cr Raukawa-Tait left the meeting at 1.15pm. The committee in open session Meeting closed at 1.59pm To be confirmed at the Operations & Monitoring Committee meeting on 5 May Acting Chairperson Rotorua Lakes Council is the operating name of Rotorua District Council

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16 3/1 16 Operations & Monitoring Committee Doc No. RDC ATTACHMENT 2A 5 May 2016

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27 STAFF REPORTS

28 3/3 28 Operations & Monitoring Committee Doc No. RDC May 2016 Mayor Chairperson and Members OPERATIONS & MONITORING COMMITTEE ROTORUA LAKES COUNCIL FINANCIAL PERFORMANCE FOR THE 9 MONTHS ENDED 31 MARCH 2016 Report prepared by: Paul Sands, Finance Manager Report reviewed by: Thomas Collé, Chief Financial Officer Report approved by: Geoff Williams, Chief Executive File No: RDC PURPOSE The purpose of this report is to provide information on Council s financial performance for the 9 months ended 31 March RECOMMENDATION 1 That the report Financial performance for the 9 months ended 31 March 2016 be received. 3. SUMMARY Council remains on target to deliver on the budget set for year 1 of the 10 year plan ( longterm plan). No material variances have been identified that would result in Council not meeting its budget or financial strategy limits. Council s year to date operating financial result is tracking similar to the prior month to be $1.8m better than budget. This is forecast to reduce to about $1.3m at year end. Capital expenditure is tracking less than budget. There are five key projects totalling $8.4m that will not proceed. There is also a further forecast reduction of $2.5m across a number of projects in the areas of open spaces, waste water, water, stormwater, and corporate property. This reduction is due to projects coming in below budget, or where work is being partially or fully deferred into the next financial year. Overall debt is currently $161.6m, which is $5.9m less than at the beginning of the year. The forecast is for no new borrowings which is a reduction of $7m from budget. In addition to no new borrowing the improved operating result and lower capital expense will mean council is forecast to hold a higher cash balance by $2.3m at the start of the year. This cash balance will provide funding for the capital projects that span across the year-end into the next financial year.

29 3/3 29 Operations & Monitoring Committee Doc No. RDC May DISCUSSION AND OPTIONS Operating Statement For the 9 months ended 31 March 2016 Year to Date Full Year Actual Budget Variance Annual Plan Forecast Variance $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) Revenue Rates 61,639 61, ,878 81,878 - Fees and charges 17,457 16, ,773 23, Subsidies and grants 2,885 2, ,629 3, Investment income Total Revenue 82,540 81,124 1, , ,543 1,212 Less Expenditure Operating expenses 36,419 36, ,872 48, Staff expenses 21,007 21, ,030 28,030 (0) Adminstration expenses 2,713 2,660 (53) 3,311 3,529 (218) Finance expense 6,631 6, ,837 8, Depreciation expense 18,767 18, ,023 25,023 - Total expenditure 85,536 85, , , Operating surplus (deficit) (2,996) (4,794) 1,799 (5,742) (4,481) 1,260 Council is on target for delivering this year s budget with operations tracking $1.8m better than budget. This is a $100,000 improvement on last month. Revenues from fees and charges continue to remain better than forecast with strong performance continuing across consenting and museum trading. Expenditure remains under budget for the year to date by $383,000. The current forecast shows the positive expenditure result reducing to $48,000 by year-end with the timing of costs relating to maintenance and events being the main driver for this change.

30 3/3 30 Operations & Monitoring Committee Doc No. RDC May 2016 Year to Date Full Year Actual Budget Variance Annual Plan Forecast Variance $ (000) $ (000) $ (000) $ (000) $ (000) $ (000) Operating surplus (deficit) (2,996) (4,794) 1,799 (5,742) (4,481) 1,260 Add back (deduct): - Depreciation 18,767 18,767 (0) 25,023 25, Change in working capital & provisions (4,854) (3,000) (1,854) - (443) (443) Cash flow generated from operations 10,918 10,973 (55) 19,281 20, Cash flows applied too: Capital expenditure and subsides - Sale of property ,000 1, Capital subsidies received 3,164 5,254 (2,090) 6,772 4,099 (2,673) - Capital expenditure (12,417) (22,404) 9,986 (34,358) (23,437) 10,921 Net Cost to Fund (9,253) (17,150) 7,897 (26,586) (18,138) 8,448 Borrowing: Net Loans drawn (repaid) (5,900) 5,000 (10,900) 7,000 - (7,000) Increase (decrease) in cash balances (4,235) (1,177) (3,058) (304) 1,961 2,265 Opening Cash balance 5,901 5,901 5,901 - Movement (4,235) (304) 1,961 2,265 Closing cash balance 1,666 5,597 7,862 2,265 The year to date cashflow from operations is on budget, but is heavily influenced by the movement in working capital due to timing of quarterly rates instalment and loan refinancing. Revenue from capital subsidies is below plan due to capital work associated with Terax and the upgrade of the concert chamber not proceeding. Capital expenditure for the month was $1.7m and for the 9 months is $12.4m ($9.9m lower than budget). The most recent capital expenditure forecast presents a financial position where no new borrowing will be required in the financial year and where council will end the year with a cash balance that is $2.3m higher than at the start of the year. Loans drawn down are lower than budget and is a reflection of both lower capital spending and timing of debt refinancing transactions. In early April council refinanced a large amount of maturing debt and placed it long term to take advantage of the current market conditions and the recently obtained credit rating. 5. ASSESSMENT OF SIGNIFICANCE The decisions or matters of this report are not considered significant in accordance with the Council s Significance and Engagement Policy.

31 3/3 31 Operations & Monitoring Committee Doc No. RDC May 2016 Mayor Chairperson and Members OPERATIONS AND MONITORING COMMITTEE ROTORUA LAKES COUNCIL File No: RDC NON-FINANCIAL PERFORMANCE FOR THE NINE MONTHS ENDED 31 MARCH 2016 Report prepared by: James Simpson, Business Performance & Procurement Analyst Report reviewed by: Thomas Collé, Chief Financial Officer Report approved by: Geoff Williams, Chief Executive 1. PURPOSE The purpose of this report is to inform Council and the public of our progress towards achieving the non-financial performance targets as set out in the long term. 2. RECOMMENDATION 2 That the report Non-financial performance for the nine months ended 31 March 2016 be received. 3. BACKGROUND Within a long term plan, the level of service that the council will deliver is agreed upon by the council in consultation with the public. The Local Government Act stipulates that local authorities are required to report on how well they are performing in delivering these levels of service to their communities as measured by the Key Performance Indicators (KPIs). In the long term plan there were 77 KPIs that were agreed upon, of which 23 are mandatory KPIs from section 261B of the Act. 4. DISCUSSION AND OPTIONS Of the 63 KPIs which have been measured 50 KPIs (79%) are progressing on track and 13 KPIs (21%) need attention to achieve the KPI, or improve the current position, by financial year end. The overall change from the December 2015 to March 2016 quarter has been a slight deterioration in the number of KPIs that are on track. Classification As at 31 December As at 31 March Change Needs attention 14% (11) 17% (13) +2.6% On track 66% (51) 65% (50) -1.3% Not measured yet 19% (15) 18% (14) -1.3% One KPI has moved from being on track to needing attention which is the six monthly inspections of pensioner housing with one inspection outstanding for the first six months. One KPI that previously wasn t measured has now been classified as action required, which is the cleaning of the inner city public toilets due to some toilets not cleaned according to schedule.

32 3/3 32 Operations & Monitoring Committee Doc No. RDC May 2016 The three activity areas with two or more KPIs behind target are: Inner city services because the planned upgrades of the inner city toilets has had to be reprioritised with the relocation of the Pukuatua Street toilet. The removal of 95% of graffiti within 24 hours is slightly behind target and service level agreements will be reconfirmed with the contractor. As mentioned above, the cleaning of the inner city toilets is also behind target and the contractor will be advised of the frequency the inner city toilets need to be cleaned. None of these three KPIs are likely to be achieved by financial year end. Waste management, due to the amount of recycling and concrete waste processed, is lower than planned and an active resource consent abatement notice relating to storm water discharge from February None of these three KPIs are likely to be achieved by year end. Regulatory services, due to not yet having completed six monthly inspections of all high and very high risk food and liquor premises. With additional focus planned for this area, it is likely that these two KPIs can be achieved by year end. The next report to be presented will be within the annual report for the end of June ASSESSMENT OF SIGNIFICANCE The decisions or matters of this report are not considered significant in accordance with the Council s Significance and Engagement Policy 6. COMMUNITY INPUT/ENGAGEMENT AND PUBLICITY Community consultation is not considered necessary in relation to this item. 7. CONSIDERATIONS 7.1 Financial/budget considerations No financial/budget considerations have been identified. 7.2 Policy and planning implications No policy and planning implications have been identified. 7.3 Risks There are no major risks associated with the decisions or matters. 7.4 Authority Council under the Local Government Act 2002 have authority to receive this report. 8. ATTACHMENTS Attachment 1: Non-financial performance for the nine months ended 31 March 2016 full report

33 3/3 33 Operations & Monitoring Committee Rotorua Lakes Council Non-financial performance For the nine months ended 31 March 2016

34 3/3 34 Operations & Monitoring Committee 1. Background Within a long term plan, the level of service that the council will deliver is agreed upon by the council in consultation with the public. The Local Government Act stipulates that local authorities are required to report on how well they are performing in delivering these levels of service to their communities as measured by the Key Performance Indicators (KPIs). In the long term plan there were 77 KPIs that were agreed upon, of which 23 are mandatory KPIs from section 261B of the Act. This report presents how the council (and community) is tracking towards achieving the KPIs and ultimately the levels of service. Of the 77 KPIs, 63 of them have been measured and reported on at the end of the third quarter with the data not yet available for 14 KPIs. The definition of Needs Attention represents KPIs that are behind target and needs focused attention to achieve the target by financial year end, or at a minimum bring them closer to the target from their current position. 2. Executive summary Of the 63 KPIs which have been measured 50 KPIs (79%) are progressing on track and 13 KPIs (21%) need attention to achieve the KPI, or improve the current position, by financial year end. The overall change from the December 2015 to March 2016 quarter has been a slight deterioration in the number of KPIs that are on track. One KPI has moved from being on track to needing attention which is the six monthly inspections of pensioner housing with one inspection outstanding for the first six months. One KPI that previously wasn t measured has now been classified as action required, which is the cleaning of the inner city public toilets due to some toilets not cleaned according to schedule. The three activity areas with two or more KPIs behind target are: Inner city services because the planned upgrades of the inner city toilets has had to be reprioritised with the relocation of the Pukuatua Street toilet. The removal of 95% of graffiti within 24 hours is slightly behind target and service level agreements will be reconfirmed with the contractor. As mentioned above, the cleaning of the inner city toilets is also behind target and the contractor will be advised of the frequency the inner city toilets need to be cleaned. None of these three KPIs are likely to be achieved by financial year end. Waste management, due to the amount of recycling and concrete waste processed, is lower than planned and an active resource consent abatement notice relating to storm water discharge from February None of these three KPIs are likely to be achieved by year end. Regulatory services, due to not yet having completed six monthly inspections of all high and very high risk food and liquor premises. With additional focus planned for this area, it is likely that these two KPIs can be achieved by year end. The next report to be presented will be within the annual report for the end of June 2016.

35 3/3 35 Operations & Monitoring Committee Summary movement Classification As at 31 December As at 31 March Change Needs attention 14% (11) 17% (13) +2.6% On track 66% (51) 65% (50) -1.3% Not measured yet 19% (15) 18% (14) -1.3% Summary dashboard At the end of the third quarter there are a total of 63 KPIs which have been measured and 14 not yet measured. Of those that have been measured, 79% are on track with 21% needing attention. This has been a slight deterioration from the previous quarter in the number of KPIs on track from the service areas of Pensioner housing and Inner city services each having a KPI move to amber. Of the 13 KPIs which need attention; four of them can still be achieved by financial year end. Of the 14 KPIs not yet measured, 11 of them are from the NRB survey which will be undertaken in May 2016 with the other four currently being undertaken.

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55 3/3 55 Operations & Monitoring Committee ROTORUA LAKES COUNCIL File No: RDC Mayor Chairperson and Members OPERATIONS AND MONITORING COMMITTEE OPERATIONAL REPORT FOR MARCH/APRIL 2016 Report prepared by: Geoff Williams, Chief Executive 1. PURPOSE The agreed purpose of the report is to provide: Briefings on matters under consideration prior to any decision being needed by Council; An opportunity to discuss the purpose and nature of developments at an early stage; Progress updates on key initiatives; and Briefings on issues and matters arising from decisions made. 2. RECOMMENDATION 3 That the report Operational Report for March/April 2016 be received. 3. BACKGROUND The report has five sections with reports and updates from: 1. Finance and Capability group; 2. Kaitiaki Māori 3. Strategy and Partnerships group; 4. Performance and Delivery group; It is envisaged some matters will need to be considered in public excluded. The intention however is to maintain as much as possible in open meeting. The operations update report will not replace any existing reports to Council, such as the monthly report on organisational performance presented by the chief financial officer.

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57 3/3 57 Operations & Monitoring Committee 4. DISCUSSION 4.1 FINANCE AND CAPABILITY GROUP Financial Services What we are doing now Completing borrowing documentation and process to finalise the 6 April placement of $43.7m of refinanced long term borrowings. Finalising process to place new $25m working capital facility with BNZ for three years. This replaces current lending facility with alternate bank and will result in $50,000pa in savings. Working with probity to fully scope the requirements of the payroll replacement system to provide for a modern, robust and integrated payroll system to the organisation. Working with Audit New Zealand on the interim audit of the 2015/16 financial year. What s coming up Undertaking a revaluation of council s roading assets in line with the three yearly cycle. Continued effort and focus on fixed asset accounting to ensure that this area is well prepared for the annual reporting process. Full review of accounting and finance policies to ensure relevance and that clear guidance is provided to those who undertake financial transactions. Further analysis of opportunities available under all of government purchasing with goal of accessing further savings to council from this programme Property and Investments What we are doing now Working through implementation of findings from the vehicle fleet review to realise efficiencies in operations and reduction of car numbers. Using smarter systems we hope to make significant economies this year and onwards. Continued focus on sale of properties acquired for the Victoria arterial to ensure best returns to council. Completed the appointment of the Legal and Property Lead and preparing for the commencement of this staff member in early May. Undertaking annual review of pensioner housing rental levels and preparing paper to be presented to council. What s coming up Future Museum and archiving facilities are being scoped for potential efficiencies having regard to the future needs, emerging technology, and best business case. Review of the current system and processes utilised to capture property asset data with goal of creating a more robust and informative system integrated with GIS to allow for improved understanding and management of council s large and varied property portfolio. Working through list of reserve status properties to identify those that should be targeted for designation change and sale.

58 3/3 58 Operations & Monitoring Committee 4.2 KAITIAKI MĀORI This month cultural support, leadership has been provided with a focus on the central city redevelopment plans and the Cenotaph Restoration Committee alongside Museum Director, Stewart Brown. Agenda planning and consultation for our annual presentations and engagement meetings with iwi entities and marae committees is also underway. These are planned for June October. Te Tatau o Te Arawa Board liaison is a growing role and will be reporting at each of their hui. Conducted and or attended karakia and opening ceremonies including the Boots and Bullets Exhibition at the Museum, a house blessing at Rawhiti Flats and at Hemo Gorge prior to the commencement of work on this major roading project. Attended the Lynmore residents action groups Lumbercube information meetings alongside CEO Geoff, Mayor Steve and Deputy Mayor Dave Donaldson. The rollout of the organisation s Bicultural Capability programme, Te Amorangi ki Mua, continues with the first group of 40 staff about to complete a seven week Te Reo Māori course and the next group to begin the week beginning 26 April. Almost half of the current attendees have asked to continue. Noho Marae Two on 3 and 4 May at Owhata Marae is almost fully subscribed. 4.3 STRATEGY AND PARTNERSHIPS GROUP People and Capability Health Safety and Wellbeing RLC Health and Safety Policy has been reviewed to align with the new Health and Safety at Work Act. Briefings for staff on the new act are being held. The safety risk management procedure has been developed, replacing Hazard Management (as per previous HSE Act) and a programme put in place to train staff and engage them in conducting risk assessments of hazards associated with their work. Recruitment Four vacancies advertised in March attracting 183 applicants, with three appointments made. 19 new employees commenced in the period 15 March to 15 April. Learning and Development Te Reo classes have continued with the first seven-week intake finishing on 22 April. More are planned. Ben Manly provided the inaugural lecture series lecture on the Fenton agreement. The session was well attended and received by staff, Museum volunteers and some council members. The second lecture in the series is scheduled for 10.30am 26 April and involves Te Ururoa Flavell speaking on Te Tiriti of Waitangi. A range of learning and development activities are ongoing, including leadership and management development, computer skills, first aid.

59 3/3 59 Operations & Monitoring Committee Business Support KIA TU which provides self-service on-line advice and support for managers in their people management responsibilities has been launched. Day to day HR advice and support provided to manager and employees Governance and Partnerships Local Authority Elections Following the outcome of the Your Choice 2016 election review and the decision made by cabinet not to proceed with on-line voting, the completion of the engagement plan for the local elections in October can be undertaken. The election project team are working closely with Local Government New Zealand and will be ensuring that our engagement around the elections is in line with their campaign. The elections campaign will look at how we can encourage particularly the year old group to vote and with the rural community on the set up and operation of the new rural community board. Overseas delegations Seven Korean delegations were hosted during this reporting period. Public Relations & Engagement Engagement programmes underway Engagement Engagement outcome/s sought Sustainable living Ideas, suggestions and strategy comments that can be iwi/māori input used to develop draft into draft strategy strategy Cy Ways Inform and educate community on the use and benefits of the Cy Ways. Gain feedback that can be used to ensure ongoing sustainability of the Cy Ways and for future improvements. Gain support for the concepts of Cy Ways and gain support at the individual neighbourhood level as each project rolls out. Progress Commences Conclusion Ran education campaign through March utilising print and digital. We livened Onto Rotorua Lakes Council website. Invitation to Brent Rd residents for feedback. Underway Underway 13 April Ongoing

60 3/3 60 Operations & Monitoring Committee Engagement East Rotoiti and Rotoma Sewerage Scheme Engagement outcome/s sought Community support for the proposed scheme Out of the Forest Share information around the preferred treatment option Annual Plan 2016/17 Library and Child Health Hub Eastern suburbs noise issues Gain feedback on options for a disposal site Gain support for the overall treatment and disposal Inform community on new process for Annual Plan Inform community around year two and of council commitment to stick to the delivery of the LTP towards Rotorua 2030 and 2016 priorities Design/development of project posters for static displays in the Library Assisted with communications for funding applications Provided regular updates to council, media and staff Progress Commences Conclusion Gathering information for campaign A number of presentation to steering groups Previous submitters to LTP/AP ed information Feedback coming in being recorded for future decision making analysis Met with DHB to advance education around health hub among DHB staff and community. Assisted with information for funding. Completed engagement plan Underway May 2016 Underway May/June 2016 April 2016 May 2016

61 3/3 61 Operations & Monitoring Committee Engagement programmes under development Engagement Rotoehu Sewerage Scheme Tarawera Sewerage Scheme Emergency Management Marae Preparedness Para kore (Marae recycling scheme) Roading and payments developments for Ngāpuna Elections 2016 Engagement outcome/s sought Community buy -in and external funding secured Community buy -in and external funding secured Iwi identify key marae for toolkit roll out and also identify potential community response centres Promoting the scheme and working together to explore funding avenues Hapū agreement on proposed changes Get people enrolled to vote Understand what the council structure is Increase in voter turn out Understand what having your say means (by voting) Expected to commence Expected to conclude April 2016 TBC April 2016 TBC April 2016 Ongoing April 2016 Ongoing April 2016 May 2016 May 2016 October 2016 Top News Stories for February 1. Update Lumbercube noise issues Eastside 320 pageviews 2. Lumbercube and council meet to discuss recent noise issues 209 pageviews 3. Mayor welcomes greater certainty (REA) 143 pageviews 4. Vibrant artwork installed in Rotorua park 119 pageviews 5. Proposed 2016/17 rates increase indicated 100 pageviews Council website Statistics March 2016 March 2015 Sessions: 28,421 Sessions: 23,305 Users: 17,170 Users: 13,605 Pageviews: 77,764 Pageviews: 71,900 Bounce Rate 50.81% * Bounce Rate 45.93% * People who go to a page on the website and then leave the website without going any further Top 10 pages March 2016 March Home Home 2 Rating Information Database Rating Information Database 3 Property and Rates Job vacancies - vacancies 4 Geyserview Property and rates

62 3/3 62 Operations & Monitoring Committee 5 Pay Parking Infringement Job vacancies 6 Contact Us Pay parking infringements 7 Cemetery search Te Arawa Partnership 8 Property information Geyserview 9 Property Valuations Contact us 10 Landfill Animal Control Homeless Hounds Top 5 search queries March 2016 Query text Total queries Search 479 Eplan (building consent enquiries) 46 Fees and charges 44 Jobs 17 Paid online Strategy Planning Policy Proposed District Plan The only remaining appeal related to a Significant Natural Area boundary and has been resolved. Industrial land survey The industrial land field survey has been finalised and the next step is to write a report with the findings which will go to Strategy Policy and Finance. This report will be available on the RLC website and a communication plan will be developed to inform key stakeholders. The main purpose of this report is to understand the current availability and use of industrial land within the district and to serve as an attraction point for out of district investors. Strategy Portfolios Economic Growth Portfolio Tourism Strategy Considering feedback from the tourism industry and the existing body of knowledge it is proposed that a strawman tourism strategy is developed which is then used as the basis for engaging with tourism partners. The Economic Growth portfolio would lead and oversee the development process utilising external expertise to facilitate workshops and develop the draft strategy with a core working group and the broader Destination Rotorua team. Rotorua tourism partners are considered central to the process and there will be three key engagement opportunities through the process, an initial discovery discussion late April/early May, workshops with Professor Terry Stevens in late June, and engagement on the draft strategy during July. At its most simplest the strategy will extend thinking beyond our traditional marketing efforts to identify the single organising idea that captures the complete visitor

63 3/3 63 Operations & Monitoring Committee experience we are seeking to provide as a destination. Based on preliminary work, the strategy is likely to have a strong focus on: Value verse volume Quality of products and services Evolving destination marketing and management NZ strongest public private partnership underpinning the future of the industry Seeking to limit the impacts of seasonality Digital Strategy The second workshop with the Digital Advisory Group of external stakeholders took place 18 April. The next step will be to update the Digital Enablement Plan with the ideas sourced from the group to produce a Digital Strategy for Rotorua. In parallel, meetings are being held with council managers to gather suggestions for digital initiatives relating to Council s portfolios. Work continues to define free Wi-Fi requirements for the inner city and selected sites. Different models of provision will be explored in partnership with Ngā Pūmanawa e Waru. Economic Development CCO A final report was prepared for the April Strategy Policy and Finance Committee following engagement with key partners and stakeholders on the proposal to integrate Destination Rotorua and Grow Rotorua into a single agency. Inner City Portfolio The Community House decant is near completion. Rotorua Budget Advisory Service and the Salvation Army are the last remaining tenants. Both will vacate the building by 30 April. Council has supported all tenants by providing moving costs and grants for their relocation to commercial office space. The tender for City Focus has been released for the public to submit services. The closing date was 3 May. Once received, a contractor will be awarded and a timeline determined. Planning is underway to provide a City Focus construction site office nearby. Details around the annual Tulip Festival are currently being worked through to take the festival to the next level. The aim is for 100,000 tulips and funding streams are being determined. All local Rotary clubs have agreed to provide support for community planting. Options around the Arawa Street bus stop are being considered including an additional bus stop. Options for improving the Rotorua Central stop and an additional stop at Fenton Street are also part of the programme. The Block Champions are planning a morning workshop to go through the current list of projects and to focus on the three big rocks for them - the City Focus launch, the Tulip Festival and the winter Light Rotorua Campaign. A public tender has been released for contractors to submit for providing services to set-up and pack-down the market, with the contract to commence on 1 July. After the success of both the Government Gardens and Lakefront daytime campervan and overnight motorhome parking, Haupapa Street car park has been assigned overnight status and there are options around an additional site in Kuirau Park. A parking app that taps into the sensors is currently being developed that will highlight availability in the inner city.

64 3/3 64 Operations & Monitoring Committee Sustainable Living Portfolio Sustainable Living Strategy meetings have been held with the steering group, Group Managers, Strategy Lead Advisors and presentations made to protocol meetings. The drafting of the strategy continues, working towards a draft for the Strategy Policy and Finance Committee s May meeting. A Food Network meeting held in collaboration with Healthy Families and Toi Te Ora on 23 March was attended by approximately 30 people with a strong commitment to forming an ongoing network. Next meeting planned for 2 May. Healthy Homes programme - arranging a contract variation with WISE Better Homes for an additional $30,000 portfolio funding to purchase an additional minimum tenanted properties insulation, providing the landlords contribute a minimum 50% of the cost. The current programme ends 30 June and future options depend on a new EECA/government programme not yet announced. LGNZ Social Housing seminar in Wellington 16 March provided excellent information and examples on current issues for local government with regard government social housing policy. The Geothermal Liaison Group held its first meeting 23 March. The Rotorua Air Quality Working Party 4 March outlined a new low-income heating grant for upgrading non-compliant burners (homeowners can swap their burners for either a free ultralow emission wood burner or a free heat pump). A Harvest Festival was held at Reporoa Mataarae Marae 9 April with abundant produce from the maara kai (community garden) which was initiated two years ago with Neighbourhood Matching Fund support. Sport and Recreation Portfolio Sport & Recreation Advisory Group Following discussions with the Portfolio Lead, invitations have been extended for membership of the refreshed Sport and Recreation Advisory Group. A full list of members will be provided on confirmation of their acceptance. This group will support and provide advice to Council on all aspects of delivering the Sport and Recreation strategy. Trails Following meetings in March with New Zealand Cycle Trails that clarified expectations on the ongoing management of Te Ara Ahi, the portfolio is working with the Rotorua Trails Trust on developing an appropriate partnership arrangement. The scope of this agreement will cover both Te Ara Ahi and the broader mandate of the Trails Trust, which is to extend, develop, and manage trails that are suitable for mountain bikers, walkers, trampers, runners, cyclists, and horse riders across the district. Creative Portfolio The Children s Art House will start classes in Term 2 and includes ukulele classes, Raranga/weaving and visual arts. Currently in discussion with Te Puia with regard to a fashion show to showcase local creative industry. Selection process is complete for the artwork at Hemo Gorge and currently working on timings with contractors.

65 3/3 65 Operations & Monitoring Committee Call for artists was sent out for a laneway mural, and artist selected. Will work with artist in the next month for installation timing. A second laneway is being considered. Funding for restoring the Te Arawa Soldiers Memorial has been received and the Museum has taken over the restoration project and is currently discussing works with contractors. All chorus boxes around the district are now complete with mural installations. Discussions have begun for the second sculpture symposium planned for later in the year (November/December), with a focus on refreshing current artwork at the Sulphur Lake sculpture trail and some for Kuirau Park. Inner City art trail brochure information has been assembled and spreadsheet of public art register updated which will in turn become the inner city art trail brochure. Agreement has been reached to relocate the artwork by Manahi Skerrett Erin Tioki at City Focus to the airport entrance. Planning for Music Month (May) is complete with a focus on the tearooms and a couple of other local venues. The programme will include workshops, marimba performances and a grand finale. The focus is on live performance. A Creative Column in the weekender to profile local artists and creative events is currently being discussed. Jill Walker to facilitate community poppy-making project for Anzac Day sculpture installation. Some discussion has begun on a number of suburban sites identified by Keep Rotorua Beautiful for community artwork. Currently investigating possibility of new temporary artwork piece. People Portfolio Positive Ageing Rotorua group continues to meet monthly. Hosting a public meeting at RLC to meet with the Office of Senior Citizens 19 April. Neighbourhood Matching Fund- the first large application approved from this fund is $20,000 for Apumoana Marae DIY project which will be televised later in the year. Continued small grant applications being received and supported. Creative Communities the final distribution round deliberation meetings were held 11 April. The Good Health Rotorua directory is not being renewed by Council in Instead Council will be supporting Lakes DHB s investment in Web Health through encouraging provider signup and public use. 4.4 PERFORMANCE AND DELIVERY GROUP Compliance Solutions Commentary on Operations for the Month Animal control staff continue to complete education programs for junior schools as part of the let s get curious program at the library. Recently we have visited Kaitao Intermediate where we presented to the children the recognised If the dog s on its own leave it alone program coming from the successfully established program from Christchurch City Council. This is a great opportunity to educate children about safety in and around dogs, and was part of an initiative commenced by the children from the school. As part of front footing the issue of dangerous dogs within our community staff have worked with the communications team and had an article in the daily post on this issue and how it impacts on our community. As mentioned in previous reports, appeals to elements on Council s notified Provisional Local Alcohol Policy have been received from the Alcohol Regulatory and Licencing Authority