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26 September 2024 |
MINUTES OF Western Bay of Plenty District
Council
Council Meeting No. CL24-9
HELD IN THE Council Chambers, 1484 Cameron Road, Tauranga
ON Thursday, 26 September 2024 AT 9.30am
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Whakatau mai te wairua Whakawātea mai te hinengaro Whakarite mai te tinana Kia ea ai ngā mahi
Āe |
Settle the spirit Clear the mind Prepare the body To achieve what needs to be achieved. Yes |
2 Present
Mayor J Denyer, Deputy Mayor J Scrimgeour, Cr T Coxhead, Cr G Dally, Cr M Grainger, Cr A Henry, Cr R Joyce, Cr M Murray-Benge, Cr L Rae, Cr A Sole, Cr D Thwaites and Cr A Wichers.
3 In Attendance
J Holyoake (Chief Executive), R Davie (Deputy CEO/General Manager Strategy and Community), A Henderson (General Manager Corporate Services), A Curtis (General Manager Regulatory Services), C Crow (General Manager Infrastructure Services), J Fearn (Chief Financial Officer), E Watton (Strategic Policy and Planning Programme Director), S Bedford (Finance Manager), R Garrett (Governance Manager), M Leighton (Policy and Planning Manager), S Meredith (Revenue Lead), P Renouf (Commercial Business Analyst), R Gallagher (Senior Policy Analyst), A Carey (Finance Business Partner Lead), H Wi Repa (Governance Systems Advisor) and P Osborne (Senior Governance Advisor).
VIA ZOOM
Audit NZ
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Resolution CL24-9.1 Moved: Cr A Henry Seconded: Cr M Grainger That the apology for lateness from Cr Dally be accepted. |
Nil
Nil
Nil
9.35am Cr Dally entered the hui
9 Community Board Minutes for Receipt
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9.1 Minutes of the Te Puke Community Board Meeting held on 1 August 2024 |
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Resolution CL24-9.2 Moved: Cr A Wichers Seconded: Cr G Dally That the Minutes of the Te Puke Community Board Meeting held on 1 August 2024 be received. |
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9.2 Minutes of the Maketu Community Board Meeting held on 6 August 2024 |
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Resolution CL24-9.3 Moved: Deputy Mayor J Scrimgeour Seconded: Cr L Rae That the Minutes of the Maketu Community Board Meeting held on 6 August 2024 be received. |
10 Council and Committee Minutes for Confirmation
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10.1 Minutes of the Annual Plan and Long Term Plan Committee Meeting held on 26 August 2024 |
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Resolution CL24-9.4 Moved: Deputy Mayor J Scrimgeour Seconded: Cr M Murray-Benge That the Minutes of the Annual Plan and Long Term Plan Committee Meeting held on 26 August 2024 be confirmed as a true and correct record and the recommendations therein be adopted. |
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10.2 Minutes of the Council Meeting held on 12 September 2024 |
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Resolution CL24-9.5 Moved: Mayor J Denyer Seconded: Deputy Mayor J Scrimgeour 1. That the Minutes of the Council Meeting held on 12 September 2024 be confirmed as a true and correct record and the recommendations therein be adopted. 2. That the Chairperson’s electronic signature be inserted into the confirmed minutes. |
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Council considered a report dated 26 September 2024 from the Commercial Business Analyst. The General Manager Corporate Services introdcued the report, and provided a brief overview of the report.
Staff responded to pātai as below: · In relation to the disclosure summary table on page 89, there were no figures in the historic column for recreation and ecological as the information and level of detail was not yet available to council. It was noted that this number would be produced in the future. · The philosophy of “growth pays for growth” was a challenge for all councils around the motu. Council hoped that this approach to financial contributions (FinCos) would help to better meet this philosophy. · Feedback from the developers had been received through the consultation period. · Council tried to provide cost effective infrastructure that met the strategy of ‘Infrastructure just in time’. |
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Resolution CL24-9.6 Moved: Cr M Grainger Seconded: Cr A Henry 1. That the Commercial Business Analyst’s report dated 26 September 2024 and titled ‘Adoption of Financial Contributions 2024/25’ be received. 2. That the report relates to an issue that is considered to be of medium significance in terms of Council’s Significance and Engagement Policy. 3. That Council adopts the Financial Contributions Schedule 2024/25 (Attachment 1 of this report), with the Disclosure Tables for Financial Contributions 2024/25 (Attachment 2 of this report). 4. That the Chief Executive Officer be delegated authority to make such minor editorial changes to the Disclosure Tables for Financial Contributions 2024/25 as may be required prior to printing. |
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11.2 Recommendation to adopt the Long Term Plan 2024-2034 and related matters |
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Council considered a report dated 26 September 2024 from the Deputy CEO/General Manager Strategy and Community. The report was taken as read with the below points noted: · Tabled Item 1, being the table of amendments made to the draft Long Term Plan 2024-34 that was originally included as Attachment 1 to the report. · Tabled Item 2, being the final version of the Long Term Plan (which replaced Attachment 1 of the report).
Staff noted that the final version would be amended regarding the Infrastructure Acceleration Fund (IAF) issues. |
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Resolution CL24-9.7 Moved: Cr T Coxhead Seconded: Cr A Sole 1. That the Deputy CEO/General Manager Strategy and Community’s report dated 26 September 2024 titled ‘Recommendation to Adopt the Long Term Plan 2024-34 and Related Matters’ be received. 2. That the report relates to an issue that is considered to be of high significance in terms of Council’s Significance and Engagement Policy |
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The Mayor invited Audit NZ (via Zoom) to speak to their Audit Report (Tabled Item 3). Audit noted the following points: · The audit had been completed and an audit opinion had been provided. · Due to Council not adjusting for the Waka Kotahi (NZTA) funding, audit had issued a qualified opinion. · Audit referred to the capital deliverability of the capital projects, due to the uncertainty of the projects being achieved, noting that this was similar to many councils around the country.
The Mayor thanked Audit NZ for their work in completing the audit for Council.
Council acknowledged and thanked staff for the work undertaken to get the Long Term Plan to the place that it was, with specific comment on the great design of the document, noting that it was clear and concise.
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Resolution CL24-9.8 Moved: Deputy Mayor J Scrimgeour Seconded: Mayor J Denyer 3. That Council notes the table of amendments (Tabled Item 1) that outlines the amendments made to the draft Long Term Plan 2024-34 that was originally included as Attachment 1 to this report. 4. That Council approve the Long Term Plan 2024-34 as set out in Tabled Item 2 and as amended in accordance with the Annual Plan and Long Term Plan Committee resolutions contained in the minutes of APLTP24-5 dated 26 August 2024. 5. That the Audit Report from Audit New Zealand regarding the Long Term Plan 2024-34 be received (Tabled Item 3). 6. That in accordance with Sections 102 and 103 of the Local Government Act 2002, the final Revenue and Financing Policy (as set out in pages 331-355 of Tabled Item 2) be adopted for inclusion in the final Long Term Plan 2024-34. 7. That in accordance with Section 93 of the Local Government Act 2002, the audited Long Term Plan 2024-2034 set out in Tabled Item 2 be adopted. 8. That in accordance with Section 102(3) and 109 of the Local Government Act, Council adopts the final Water Rates Remission Policy and final Remission of Rates Penalties Policy as set out in Attachment 2, and as amended in accordance with the Annual Plan and Long Term Plan Committee resolutions contained in the minutes of the APLTP24-5 dated 26 August 2024. 9. That as the formal response to submitters, Council approves the decision document set out in Attachment 3 for all submitters for dissemination as soon as practicable, following the adoption of the Long Term Plan 2024-34. 10. That the Chief Executive Officer be delegated authority to make such minor editorial changes to the Long Term Plan 2024-34 and decision document as may be required prior to printing. |
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Council considered a report dated 26 September 2024 from the Chief Financial Officer. The General Manager Corporate Services provided a brief overview of the report and the recommendations within. Staff responded to pātai as below: · The community halls were not immune to cost increases, noting that staff had identified, for the next Annual Plan, a review of the existing Community Halls policy and/or robust engagement with specific communities for whom their community hall rate exceded $50 per ratepayer. · Due to the rates being set later than originally planned, the penalty date would be extended prior to the recommendation being passed. · In relation to recommendation 8 regarding the Rates Postponement for Homeowners Aged Over 65 years Policy, the $50 postponement fee was a one-off fee. · The new rates would be avaliable on the website by Monday 30 September 2024. |
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Resolution CL24-9.9 Moved: Deputy Mayor J Scrimgeour Seconded: Cr M Grainger 1. That the Chief Financial Officer’s report dated 26 September 2024 titled ‘Setting of Rates for 2024/25 Financial Year’ be received. 2. That the report relates to an issue that is considered to be of high significance in terms of Council’s Significance and Engagement Policy. 3. That Council sets the rates set out in resolutions 4, 5 and, 6 under the Local Government (Rating) Act 2002, in accordance with the relevant provisions of the Funding Impact Statement in the Long Term Plan for 2024/2025, on rating units in the district for the financial year commencing on 1 July 2024 and ending on 30 June 2025, noting that all rates shall be inclusive of Goods and Services Tax (GST).
4. That Council approve the General Rate as follows: General Rate A general rate is set under section 13 of the Local Government (Rating) Act 2002 at: - A rate of $0.000845906 in the dollar of capital value on all rateable rating units in the Western Bay of Plenty District.
5. That Council approve the Uniform Annual General Charge as follows: Uniform Annual General Charge: - A uniform annual general charge is set under section 15(1)(a) of the Local Government (Rating) Act 2002 at: A rate of $560.00 per rating unit.
6. That Council approve Targeted Rates as follows: Targeted Rates: - The following targeted rates are set under sections 16 and 17 of the Local Government (Rating) Act 2002.
Council sets volumetric water targeted rates under section 19 of the Local Government (Rating) Act 2002:
7. That Council approves: a. Under section 55 of the Local Government (Rating) Act 2002 and Council’s Discount for early payment of rates in current financial year Policy, a 3% discount will be applied where a ratepayer pays all prior year’s rates with no arrears owing, all current year rates in full except volumetric water targeted rates, by the 5 November 2024 b. Under section 24 of the Local Government (Rating) Act 2002 all General and targeted rates will be due in two instalments, the first on 5 November 2024 and the second on 25 March 2025. Volumetric water targeted rates due dates are as per resolution 9 below. c. Under sections 57 and 58 of the Local Government (Rating) Act 2002, the following penalties be applied to unpaid rates, except volumetric water targeted rates (set under section 19 of the Local Government (Rating) Act): i. A charge of 10 percent on so much of any rates assessed before 1 July 2024, which remains unpaid on 2 October 2024, will be applied as a penalty on or after 2 October 2024. ii. A charge of 10 percent on so much of any instalment that has been assessed after 1 July 2024 and which remains unpaid after the relevant due date as per 7(b) above, will be applied as a penalty on or after 29 November 2024 for instalment one and on or after 1 April 2025 for instalment two. iii. A charge of 10 percent on so much of any rates assessed before 1 July 2024, which remains unpaid six months after 7(c)(i) above will be applied as a penalty on or after 2 April 2025.
8. In accordance with its Rates Postponement for Homeowners Aged Over 65 years Policy, the Western Bay of Plenty District Council sets a $50.00 postponement fee under section 88 of the Local Government (Rating) Act 2002 for the financial year. A $50.00 fee will be added to the rates when Council grants postponement. This fee is non-refundable and covers the administration costs associated with processing the application. 9. That Council approves Water supply rates/invoices will be issued twice during the year. The due dates for the financial year commencing 1 July 2024 and ending on 30 June 2025 are as follows:
10. That Council approves Water supply rates/invoices for Western Supply Zone 1 and 2, set at the 2023/24 Annual Plan charge of $ 1.24 with due dates for the financial year commencing 1 July 2024 and ending on 30 June 2025 as follows:
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10.39am The hui adjourned.
11.00am Deputy Mayor Scrimgeour left the hui.
11.02am The hui reconvened.
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Council considered a report dated 26 September 2024 from the Strategic Advisor: Legislative Reform and Special Projects who provided an overview of the report and recommendations thereon. Sarah Baddeley (Partner and Board Member of MartinJenkins) was also in attendance to speak to the MartinJenkins report.
Ms Baddeley and staff responded to pātai as below: · Apprendix 1 of the MartinJenkins’ report regarding the 32 separate water supply charges had nothing in the row that related to consumption charge. Staff confirmed that the consumption charge should be $1.43 which would be adjusted over time for growth and inflation. · Through this piece of work, MartinJenkins discovered a number of issues in relation to the treatment of different revenue streams and the treatment of depreciation in debt, noting that this was more around attribution than concern as a whole. Unpicking the combined view of water services delivery had meant that there had been anomalies discovered and reported on through the report. · It was expected that Council would be able to report against activity type (drinking water and wastewater). In relation to stormwater, Council would have the ability to consider whether it wanted to retain stormwater and provide it, noting that the assets were more difficult to separate. · The Economic Regulation detail was not available, which meant that it was hard to anticipate the ‘debt headroom’. Generally the economic regulation would be ensuring that Council tied the correct revenue stream to the correct asset over the correct amount of time. · Ms Baddeley recommended putting mental effort into stormwater, noting that this was an area where Council had a great degree of discretion, in terms of keeping the asset or looking at a service provider for Council. · The governance arrangements for any Council Controlled Organisation (CCO), that might be considered would be at the heart of the next phase of work undertaken by Council. A CCO was an indirect form of control and therefore it was important that Council was confident it had the levers to influence prioritisation and outcomes that were important to local communities. It would also be proposed that the Board of the CCO be competency-based and experienced in managing ‘large/lumpy’ capital investment programmes. · There would be expectations around the degree to which the revenue was not influenced by political decision making. The lenders of debt would have views around the objectivity, professionalism and competence of how investment decisions were made; however, in order to ensure balance sheet separation there would need to be a degree of separation from political decision making. · Council would need to be satisfied that the governance of the entities was the right governance for the nature of the asset investment programme and the service delivery programme that Council had going forward. · There were a number of areas where Council might not necessarily follow the required rules under the new legislation, including depreciation. Until staff were able to undertake the full analysis under the new requirements, Council could still be looking at changes in this area. · In relation to cross subsidisation of water services, it was a complex area of pricing and financial modelling, therefore this work had not yet been undertaken. It would be an expectation that professionally managed assets would, at any point in time, be undertaking investment in one area and not in another. It was noted that Council could perceive this as ‘cross subsidisation’; however, this was a common way in which big capital investment programmes were managed. MartinJenkins had not undertaken analysis of whether particular users or particular areas were paying more than they should, noting that this was the type of information that Council could expect if they considered the recommendations from MartinJenkins around price and revenue smoothing. · 8% of Council’s stormwater was covered by the Uniform Annual General Charge (UAGC), noting that this was the case for many councils, who were now required to look at their “all of council books” and isolate waters. · Council would be required to provide an Annual Report in relation to Three Waters moving forward, so the work to separate the accounts was being undertaken. · Staff had been working with Tauranga City Council (TCC), noting that there was an expectation that information would be shared as part of the decision making process for Council and TCC. · The establishment of a CCO required the development of a Statement of Intent, in which Council was involved in setting. This outlined rules and processes to ensure that the voice of Council was heard. · The difference between Council’s options in 2025 versus what had been available in the past, was that while the broad model and pressures were similar, Council would have a more direct ability to design particular requirements that Council deemed necessary for the Western Bay communities. There would, however, be discipline on the design to allow for balance sheet separation. · Ownership of the waters asset would still remain with Council through the CCO. · Work relating to economies of scale and efficiency assumptions, that may be achieved through combination with TCC, had not been undertaken by MartinJenkins. · Council worked well with TCC already, through joint procurement. · Council’s future Capital Expenditure (CapEx) programme would require more technical and competent project managers, as there was an increased demand in capability to deliver the CapEx programme. · Following advice regarding the option to join a CCO, it was important to understand the efficiency assumption and how it trended against historic patterns of spending in both organisations. It was also important to understand where Council believed the big opportunities were for achieving scale benefits in procurement. · In regard to personnel requirements, this would be considered at a higher level through the next phase of work. · Following the last meeting with Council, MartinJenkins tested what would happen if the Local Government Funding Agency (LGFA) recognised Financial Contributions (FinCos) and what would happen if Council increased their revenue sooner. Theoretically, if this happened, in combination with a decision on revenue smoothing, Council could go at it alone; however, this would only be a consideration should the LGFA recognise FinCos in the next year, noting that this was unlikely. · It would take a long time to get on top of current charges, decide what “fair” would look like, and then undertake a smoothing process in order to “harmonise” prices. |
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Resolution CL24-9.10 Moved: Cr R Joyce Seconded: Cr M Murray-Benge 1. That the Strategic Advisor: Legislative Reform and Special Projects report dated 26 September 2024, titled ‘Local Water Done Well – Next Steps’, be received. 2. That the MartinJenkins report titled ‘Assessment of viability and sustainability of water services delivery’ be received (Attachment Three). 3. That Council agrees to the exploration of alternative water service delivery models from the status quo. 4. That Council directs the Chief Executive to work with Tauranga City Council to progress investigations for a joint water services council-controlled organisation (CCO). 5. That Council notes that the decision to establish an alternative water services delivery model to the status quo requires a separate decision from Council and consultation in accordance with section 61 - 64 Local Government (Water Services Preliminary Arrangements) Act. |
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11.5 Katikati Wastewater Disposal Future Directions - Appointment to Te Ohu Waiora |
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Council considered a report dated 26 September 2024 from the Project Manager. The General Manager Infrastructure Services presented the report which was taken as read. The Mayor responded to pātai as below: · The resource consent requirement was that the elected members appointed to Te Ohu Waiora Advisory Group lived in Katikati. · The resource consent allowed for at least two representatives from Matakana Island to be appointed to the Advisory Group.
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Resolution CL24-9.11 Moved: Cr M Murray-Benge Seconded: Cr R Joyce 1. That the Project Manager’s report dated 26 September 2024 titled ‘Katikati Wastewater Disposal Future Directions – Appointment to Te Ohu Waiora’ be received. 2. That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy. 3. That Council appoints Te Ohu Waiora as an Advisory Group to the Projects & Monitoring Committee. 4. That Council notes the membership of Te Ohu Waiora is defined by condition 15 of Resource Consent RM16-0206-DC.02+. 5. That Council appoints the following elected members as representatives to Te Ohu Waiora: a. Mayor James Denyer b. Councillor Anne Henry, Katikati-Waihī Beach Ward c. Councillor Rodney Joyce, Katikati-Waihī Beach Ward |
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11.6 CCTV Working Party - Delegations and appointments for the 2024-2025 Year |
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Council considered a report dated 26 September 2024 from the Operations Manager. The report was taken as read. Staff responded to pātai as below: · It would be the role of the Projects and Monitoring Committee to undertake a review of where the current CCTV cameras were, and report back on if any had been stolen.
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Resolution CL24-9.12 Moved: Mayor J Denyer Seconded: Cr M Grainger 1. That the Operations Manager’s report dated 26 September 2024 titled ‘CCTV Working Party – Delegations and appointments for the 2024-2025 Year’ be received. 2.
That the report relates to an issue that is considered to be of low
significance in terms of Council’s Significance and Engagement Policy. 3. That Council confirms that the CCTV Working Party be delegated authority to: a) Advertise for applications to install CCTV cameras; b) Evaluate the applications against the CCTV Management Plan Criteria; and c) Allocate
the annual funding of $50,000. 4. That Council appoints the following Councillors to the CCTV Working Party for the 2024-2025 year: i. Katikati-Waihī Beach - Cr Rodney Joyce ii. Kaimai Ward - Cr Margaret Murray-Benge iii. Maketu-Te Puke Ward - Cr Laura Rae |
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Council considered a report dated 26 Septmeber 2024 from the Executive Assistant – Mayor/CEO. The Mayor provided further updates as below: Regional Infrastructure Fund: · There was a strong lineup of Members of Parliament (MPs) in attendance, as well as the head of Kānoa (Regional Economic Development and Investment Unit); · The Fund was $1.2 billion in total; howeve,r it was made clear that most of this would be given in debt or equity rather than grants; · Nigel Tutt from Priority One presented on behalf of Western Bay of Plenty; · Ngahiwi Tomoana, Chair of the Māori Economic Development Panel, expressed his desire for the Rangiuru Business Park extension; and · Council’s opportunity with this fund was limited, with a role in supporting third party applicants who aligned with Council’s regional priorities. |
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A request was made for a breakdown on the number of elected members who attended the Local Government New Zealand (LGNZ) Conference, and the cost that this was to ratepayers.
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Resolution CL24-9.13 Moved: Mayor J Denyer Seconded: Cr A Henry That the Executive Assistant - Mayor/CEO’s report dated 26 September 2024 title ‘Mayor’s Report to Council - 26 September 2024’ be received. |
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Council considered a report dated 26 September 2024 from the Community Advisor. The report was taken as read. |
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Resolution CL24-9.14 Moved: Cr M Murray-Benge Seconded: Cr A Sole 1. That the Community Outcomes Advisor’s report dated 26 September 2024 titled ‘Community Matching Fund Outcomes 2024’ be received. 2. That the report relates to an issue that is considered to be of low significance in terms of Council’s Significance and Engagement Policy. 3. That Council note the 2024 Community Matching Fund distributions as follows:
General fund
Environmental fund
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13 Resolution to Exclude the Public
RESOLUTION TO EXCLUDE THE PUBLIC
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Resolution CL24-9.15 Moved: Mayor J Denyer Seconded: Cr M Grainger 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:
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Resolution CL24-9.16 Moved: Cr R Joyce Seconded: Mayor J Denyer That Charlotta Harpur (Associate Director - Rice Speir) be permitted to remain after the public have been excluded for the item 13.2 due to her legal knowledge in the subject of discussion . |
The Meeting closed at 12.28pm.
Confirmed as a true and correct record at the Council meeting held 7 November 2024.

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Mayor J Denyer
CHAIRPERSON / MAYOR