Council OPEN ATTACHMENTS · Marketing and advertising • Hamilton City Council brand guidelines • Creation and oversight of Council collateral – e.g. brochures, flyers • Management

Note: The attachments contained within this document are for consideration and should not be construed as Council policy

unless and until adopted. Should Councillors require further information relating to any reports, please contact the relevant manager, Chairperson or Deputy Chairperson.

Notice is hereby given that an ordinary Meeting of the Council will be held on:

Date: Time: Meeting Room:

Wednesday 10 June 2020

10.00am

Audio Visual Meeting

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OPEN ATTACHMENTS

ATTACHMENTS UNDER SEPARATE COVER

ITEM TABLE OF CONTENTS PAGE 5. 2020/21 Draft Annual Plan Report and Draft Consultation

3. Attachment A Extend resourcing for community engagement - updated business case 2

4. Attachment B Council Minimum Wage Living Wage - June 2020 10

5. Clarifications to Annual Plan Report 10 June 14

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Business case – Increasing our commitment to community engagement

Summary

Name Increasing our commitment to community engagement

Description This proposal is to increase and improve the communication and engagement capability of Council.

The purpose of the communication and engagement function is to connect the community and the council – i.e. by understanding more about what the community values, we help the council to direct its resources towards those things which will make the most difference to the wellbeing of Hamiltonians.

This proposal is for a number of related resources and activities which aim to improve engagement between the community and Council. The key components of the proposal are:

• Increased programme of ‘Your Neighbourhood’ events

• An improved digital communication work programme

• Additional staff resource to support new or increasing work programmes

Staff Recommendation Option 2: Partial implementation of Communication and Engagement Strategy

1.0 Strategic Case Outline the issue and current situation

The Communication and Engagement unit was established, in its current form, in December 2018. It is responsible for: Communication

• Council projects - e.g. intersection upgrades, new facilities, new playgrounds etc

• Council corporate messaging - e.g. financial strategy, changes to service delivery

• Crisis communications - e.g. river slip, closures of facilities

• Education campaigns - e.g. Smartwater, road safety, rubbish and recycling

• Regional communication support - e.g. Metro spatial plan

• Election and civic campaigns

• Media management

• Recruitment branding and advertising

• Internal communications and internal channels – intranet, change management, staff newsletters

• Management of corporate web channels – e.g. hamilton.govt.nz, ourhamilton.co.nz

• Support other council websites – e.g. libraries, pools

• Management of Council’s social media channels

• Video and photography creation, including drone imagery Community engagement

• Council strategies - e.g. Play Strategy, Nature in the City strategy

• Council plans and proposals - e.g. Long term plan, Annual Plan

• Council projects - e.g. asking people what they want in a new playground

• Council policies and bylaws

• Community engagement events - e.g. Your Neighbourhood campaign

• Management of a community engagement calendar

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• Creation and management of digital engagement tools - e.g. Have Your Say, e-newsletters, VR technology, interactive maps

• Management of submissions and feedback Marketing and advertising

• Hamilton City Council brand guidelines

• Creation and oversight of Council collateral – e.g. brochures, flyers

• Management of Council advertising campaigns – e.g. radio, newspaper, billboards

• Managing advertising on public spaces - e.g billboards, banner bookings

Event support and delivery

• Civic events (civic awards, citizenship ceremonies, Anzac Day, Armistice Day etc)

• Council events (playground openings, sod turnings etc)

• Community engagement events (Your Neighbourhood)

• Event support and permitting

• Internal events e.g. Shape A city

• Event marketing In the past year, there has been a concerted effort to increase and improve the Council’s connection to the community through, for example, Your Neighbourhood events, an increased social media presence and the 2019 election campaign. This has been achieved largely within existing budgets but has come at the expense of investment in areas such as promoting Council events and activities to our community, promoting Our Hamilton news platform and working with partners on developing a Hamilton City identity. A number of Elected Members have outlined expectations for improved communication and engagement with the community, including:

• Better representation from whole of community

• Better engagement with typically under-represented groups such as Maaori, young people and ethnic minorities

• Engagement at earlier stages in decision-making

• More visible presence in the community

• More targeted, local communication and engagement

• More innovative and ‘attractive’ engagement methods and tools

Additionally, there is increased demand for communication and engagement support to support new or increasing work programmes, including:

• The environment/climate change/sustainability programme

• The economic development programme

• The strategic growth programme (including Metro spatial plan, Hamilton to Auckland corridor etc)

• Working with partners to develop and promote ‘Hamilton City’ identity

Staff have developed a communication and engagement strategy that responds to these demands – the majority of which can be delivered within existing resources; this proposal covers those items which cannot be delivered within existing resources.

Prior consideration

This is a new proposal to be considered.

Impact of the issue on the

Council’s Communication and Engagement Strategy aims to ensure our community is engaged in understanding and influencing the work Council does. The degree to which we invest in this strategy

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community helps determine the degree to which we align our decisions and actions to meet our community’s needs.

Objective of the project

The Communication and Engagement strategy has three key engagement objectives:

• Hamiltonians have every opportunity to be part of decisions that matter to them. We make it easy for people to have their say, in a way that suits them.

• Our engagement influences council-decision making Our engagement insights have a meaningful and timely impact on our decision-making processes and used to influence our strategies and plans.

• Our engagement is genuine and authentic We prioritise early engagement and commit to working in collaboration with our partners and our community.

This proposal aims to achieve those overarching objectives and respond to the specific issues and opportunities raised by Elected Members (noted in outline of Current Situation, above).

Wellbeing outcomes

By better understanding our community’s wants and needs, Council can better align its decision-making and actions to those things that will have the greatest impact on environmental, social, economic and cultural wellbeing.

Strategic alignment

This project delivers on the outcomes in Council’s Communication and Engagement Strategy. Further, the Local Government Act specifically states that we have a responsibility to communicate with our community in a ‘manner and format that is appropriate to the preferences and needs of those persons’. Given the diversity of our community, it is important that we understand and respond to their preferred methods of engagement, what interests them and their issues/aspirations.

Alignment to Long-Term Plan

Does this project relate to work approved in the 2018-28 Long-Term Plan?

☒

☐

☐

Variation to a budgeted item in the 2018-28 LTP (value or timing) New unbudgeted project/service Removal of a budgeted project/service

Constraints and dependencies

The proposal is one of a number of initiatives that will collectively deliver on Council’s Communication and Engagement strategy.

Level of significance

This matter has been assessed as having Low Significance in accordance with Council’s Significance and Engagement Policy.

2.0 Options Analysis Option 1

Name Status quo

Description This option is to deliver the core aspects of the Communication and Engagement strategy from within existing budgets. Some of the increased demand for communication and engagement services is unavoidable (due to Council’s increased work programme) so it is likely some current activity will be reduced to accommodate this. This is likely to take the form of still ‘doing the traditional basics’ well – i.e. media releases, social media, letter drops etc. The status quo option will mean we need to pull back on new and more innovative methods of communicating and engaging – e.g. interactive, touch screen mapping tools, virtual reality experiences, civic education campaign / child-focussed collateral etc. It will also mean we will pull back from telling our city stories and profiling our city on a national level and beyond our sector. The focus for the unit will be very much on project-specific communication and engagement with little or zero focus on the civic education elements such as campaigns around who Council is, what we do, how people can get involved. An example of a successful civic engagement campaign was the

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2019 Shape your City elections campaign. The status quo option will also mean we will not be able to deliver a high number of major Your Neighbourhood events. Within the current budget, we would only be able to deliver two each year (rather than the desired 5 – 6). Smaller Your Neighbourhood events will only be able to be held on a project by project basis (i.e. when we are engaging on a specific issues rather than on having general neighbourhood conversations). We would also need to reprioritise resource from a portfolio perspective – ensuring we communicate the key ‘must know’ Council messages, possibly at the expense of human interest and community-based stories.

In scope deliverables • Delivery of the core aspects Communication and Engagement Strategy (within existing budgets)

Out of scope deliverables

• Delivery of the Communication and Engagement Strategy in full (i.e. including elements in Option 2)

Risks and mitigations

Risks Mitigations

Lower levels of community input into Council decision-making

Continue to refine the mix of communication and engagement tools and channels to best meet needs and preferences of community. Underrepresentation of some groups in

community engagement

Lack of targeted, relevant communication (e.g. through digital channels)

Relatively poor understanding of Council decisions, projects and services

Benefits Cost containment

Cost impact 20/21 21/22 22/23 23/24 24/25 Total

OPEX IMPACT

Personnel 0 0 0 0 0 0

Other opex 0 0 0 0 0 0

Consequential opex 0 0 0 0 0 0

Value of any assets to be disposed of

Total Opex Impact 0 0 0 0 0 0

CAPEX IMPACT

Capital expenditure 0 0 0 0 0 0

Capital subsidy (i.e. grants or NZTA)

Total Capital Impact 0 0 0 0 0 0

Funding impact ☒

☐

☐

Can be funded through the activity’s existing budget Can be funded through an agreed transfer of budget from another activity Provide details if this option is selected Requires Council to approval additional funding

Procurement process

Not applicable

Cost confidence ☒ Existing costs - High

Option 2

Name Partial implementation of Communication and Engagement Strategy

Description This option is to deliver some of the elements included in the Communication and Engagement Strategy. Please note that the full implementation and remaining elements of the strategy will be

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considered as part of the Long-Term Plan process. The key elements of that strategy that this proposal seeks to address are: Your Neighbourhood events Your Neighbourhood is our community engagement framework which focuses on taking a localised approach to engagement and talking with the community about issues that matter to them / what’s going on in their neighbourhood. Representative engagement It’s very usual for council engagement and consultation processes to be influenced by the ‘squeaky wheels’. While we can make efforts to target a balance of specific demographic groups, the most effective and reliable way of achieving a representative view is market research. Regular and independent market research will provide timely feedback on Council’s services, activities and current projects. These established surveys will reduce the need for ad-hoc engagement around our activities. Being bold We need to invest in engagement that inspires and excites our community. By mixing good old-fashioned conversation with cutting-edge technology, we have the recipe for a winning engagement approach that will make a real difference to our city. Reaching our diverse community Our population is changing and the people of Hamilton now represent more than 160 ethnic groups. Our largest ethnic group is Indian (making up 7.31% of Hamilton’s population) and our second largest ethnic group is Chinese (making up 5.79% of Hamilton’s population). If we truly want to connect the council and the community, we need to have more of a focus on accessibility and use a variety of languages and channels that will best meet the needs of our diverse community. Building our digital brand For many in our community, the only interaction they have with Council is online. We need to focus on improving our digital experience so it is efficient, informative, engaging and personalised. With 84% of Hamiltonians using one or more social media platforms, we also need to increase our investment and influence on our social digital channels. Being relevant to our community For us to be relevant, we need to take a personalised and targeted approach to our communication. As a growing metropolitan city, relying heavily on city-wide communication just doesn’t work and Hamiltonians expect a lot more than that. We know people care about what happens in their neighbourhood so we need to take a more localised approach. We need tools that enable us to capture, record and use people’s preferences so we can target specific messaging about things we know they are interested in. To meet these objectives, a number of specific initiatives are proposed. These are detailed in the Scope Section, below.

In scope deliverables Your Neighbourhood events

• $80,000 for the 20/21 financial year and then reconsidered as part of the Long-Term Plan discussions

• This will be used to support our Your Neighbourhood events series (or other innovative engagement opportunities such as virtual events)

• On average each Your Neighbourhood event requires $10,000 for event costs plus an additional $10,000 for marketing and advertising.

• There is no specific budget allocated for this and to date it has been taken from existing budgets however this is not a sustainable solution.

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Staff resource (Fixed term Communication and Engagement Advisor)

• $100,000 per year

• 1 x fixed term Communication and Engagement Advisor to manage the LTP community engagement programme and other additional work requirements

Digital tools and marketing

• $60,000 per year

• Digital communication software and hardware

• Implementation of our digital communication strategy

• Use of social media marketing to promote council activities, events and engagement activity

• Increase engagement with our digital communities (Neighbourly, community pages etc)


The following items are required to implement the Communication and Engagement strategy in full but will be considered as part of the Long-Term Plan process. They are out of scope at this stage. Mobile Your Neighbourhood vehicle The focus of this is to create a mobile engagement vehicle which means we can go to multiple neighbourhood events (school fairs, market days etc) throughout the year. This will result in having more targeted, focussed, and more meaningful events across the city.

• $120,000 (one off capital cost) and ongoing operating costs of $30,000 per year

• A Your Neighbourhood trailer that is set up with screens, poster and brochure holders etc which means we have an automatic ‘classroom’ style space set up that we can use throughout the city.

• The trailer will mean we can head along to existing neighbourhood events and facilities (school galas, playgrounds etc) and easily be set up to engage with our community.

The vehicle could also be available to use in civil defence and recovery situations where we often need to be available in localised places to assist with disaster situations. Casual support crew

• $40,000 per year

• Casual communication and engagement support team who can be on stand-by to help us with our engagement activity. These people will have an interest in communication, events and engagement (e.g. University and Wintec students) and be available on an as-required basis.

• The crew will provide much more cost effective ‘people power’ to conduct surveys at playgrounds, shopping malls etc and capture everyday engagement from our community.

Market research and Insights $60,000 per year

• Use of independent research to support Council’s own engagement activity

• Designed to provide representative community views on core issues and activities


Risks Mitigations

Community perception of increased costs, relative to perceived importance of better communication and engagement

Community and stakeholder messaging to communicate wellbeing/cost trade-off Ensure feedback loop so that community can see how their feedback has been considered in council decision-making

Benefits • Higher levels of community input into Council decision-making

• Better representation of whole of community

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• More targeted, relevant communication (e.g. through digital channels)

• Better community understanding of Council decisions, projects and services


OPEX IMPACT

Personnel 100,000 100,000

Other opex 140,000 60,000 60,000 60,000 60,000 380,000

Consequential opex


Total Opex Impact 240,000 60,000 60,000 60,000 60,000 480,000

CAPEX IMPACT

Capital expenditure


Total Capital Impact

Funding impact ☐

☐

☒


Procurement process

Undertaken in accordance with Council’s procurement processes for purchase of equipment, contract services etc.

Cost confidence ☒

Rough order estimate – Low

Option 3 Long-Term Plan – community engagement programme (medium level)

Name Long-term plan engagement – low level community engagement programme

Description This option will enable an increased community engagement programme for the 2021-31 Long-Term Plan. This community engagement programme will run from 1 July 2020 to 1 July 2021 to cover early engagement as well as official consultation on the Long-Term plan consultation document in early 2021. This option is focuses on providing Communication and Engagement resource to the Long-Term Plan only so as noted in Option 1, there will be a reduction in the current level of service provided by the unit. This option has been created around a one-year budget of $100,000. $50,000 of this budget would be required for a part-time Communication and Engagement Advisor to support the community engagement programme for the Long-Term Plan. The additional $50,000 would enable the following Long-term plan engagement tactics:

• Four small Your Neighbourhood events (not the expo style)

• One innovative digital engagement tool (for example, the tool developed for our wellbeing engagement)

• Media stories (as covered by the part-time resource).

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In scope deliverables • Delivery of a long-term plan community engagement programme (medium level)


• Delivery of the core aspects Communication and Engagement Strategy (within existing budgets)

• Delivery of the Communication and Engagement Strategy in full (ie including elements in Option 2)


Risks Mitigations

Lower levels of community input into general Council decision-making

Ensure feedback loop so that community can see how their feedback has been considered in council decision-making

Under-representation of some groups in community engagement

Lack of targeted, relevant communication (e.g. through digital channels)

Relatively poor understanding of Council decisions, projects and services

Benefits • One-off budget increase for the 2020 year.

• Higher level of community input into the Long-Term Plan process


OPEX IMPACT

Personnel 50,000 0 0 0 0 50,000

Other opex 50,000 0 0 0 0 50,000

Consequential opex 0 0


Total Opex Impact 100,000 0 0 0 0 100,000

CAPEX IMPACT

Capital expenditure 0 0


Total Capital Impact 0 0

Funding impact ☐

☐

☒


Preferred Option Name of preferred option Option 2 - Partial implementation of Community Engagement Strategy Financial impact $240,000 opex for Yr 1

$60,000 opex for the following years

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Item

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Council Minimum Wage / Living Wage PROPOSAL

Author: Dan Finn Authoriser: David Bryant

Position: People, Safety and Wellness Manager Position: General Manager Corporate

Proposal

1. This information is provided in response to an elected member 2020/21 Annual Plan proposal to introduce the Living Wage to Council.

2. Additional information has also been provided to elected members via emails, a briefing with the Living Wage Movement Aotearoa and drop in sessions with Michael Cameron from the University of Waikato and Don Good, Chief Executive of the Waikato Chamber of Commerce.

3. In light of the negative financial impact of COVID-19, and the significant cost cutting initiatives staff have recommended in other areas of Council, staff are not making a recommendation but are providing three options for elected members to discuss.

Recommendation

Option 1: Implement the Living Wage in 2020/21

OR

Option 2: Implement an increased Council minimum wage in 2020/21 to equal the Living Wage

OR

Option 3: Status quo

Context 4. The Labour-Led Government intends to move the NZ Minimum Wage to $20.00 by 2020/21, with the

latest increase being to $18.90 that came into effect on 1 April 2020.

5. Hamilton City Council currently has in place a minimum wage of $20.00 per hour, which came into effect in December 2018.

6. The Living Wage is defined by Living Wage Movement Aotearoa as “the income necessary to provide workers and their families with the basic necessities of life”. The current Living Wage rate is set at $21.15. This rate moves to $22.10 on 1 September 2020.

7. A condition of becoming an accredited member of the Living Wage Movement Aotearoa is to extend the living wage to all contractors engaged by Council. The cost of this is unknown.

8. Some councils have implemented the Living Wage for their staff e.g. Wellington and Dunedin City Councils. Auckland Council and Tauranga City Council are not accredited Living Wage employers but are matching the Living Wage for their direct employees.

9. This paper presents three options:

• Option 1: Implement the Living Wage in 2020/21.

• Option 2: Implement an increased Council minimum wage in 2020/21 to equal the Living Wage rate.

• Option 3: Status quo.

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Option 1: Implement the Living Wage in 2020/21

10. Description

11. This option is for all staff directly employed by Council (including permanent, fixed term and casual staff), to be paid the Living Wage and adhering to the Living Wage increases every year thereafter by becoming an accredited employer of Living Wage Aotearoa.

12. Advantages and Disadvantages

Advantages Disadvantages

• There is potential for a social and community advantage by being recognised as an employer paying the living wage.

• Council cannot influence the increases determined by Living Wage Aotearoa.

• Council would be bound to meet the increases to the Living Wage as prescribed each year by Living Wage Aotearoa.

• The cost to extend the living wage to all contractors engaged by Council is unknown.

13. Financial Implications

14. The cost to move to the current Living Wage rate is only known one year in advance as the rate is set each year by Living Wage Aotearoa.

15. There would also be additional costs relating to paying contractor’s staff the equivalent of at least the Living Wage rate. The total cost to Council is difficult to know and will depend on future contracts procured by Council and the associated contractor workforce employed by each contractor.

16. Once accredited, Living Wage Aotearoa gives organisations notice of any increases each year and adjustment must be implemented by 1 September of that year.

17. Given the current environment, we estimate that the Living Wage will be announced at approximately $22.10 per hour and if this was the case the revised annual cost to implement this recommendation is $353,000 for 2020/21. These costs are based on our peak seasonal numbers, using the yearly average earnings for employees and then reducing this by 20% to account for our fixed term and casual employees who do not work all year round. These numbers include the employer contribution to KiwiSaver of 3%.

Based on the current 10-year plan

Year 3 20/21 $000

Year 4 21/22 $000

Year 5 22/23 $000

Year 6 23/24 $000

Year 7 24/25 $000

Year 8 25/26 $000

Year 9 26/27 $000

Year 10 27/28 $000

Total over 8 years $000

Total Revenue

- - - - - - - - -

Total Operating Expenses (staff)

353 Unknown Unknown Unknown Unknown Unknown Unknown Unknow Unknown

Total Operating Expenses (contractor)

Unknown Unknown Unknown Unknown Unknown Unknown Unknown Unknow Unknown

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Option 2: Implement an increased Council minimum wage in 2020/21 to equal the Living Wage rate.

18. Description

19. This option is for all staff directly employed by Council (including permanent, fixed term and casual staff), to be paid a minimum wage equivalent to the current Living Wage rate from 1 July 2020.

20. Council would not become an accredited member of Living Wage Aotearoa.

21. Each year this minimum wage would be reviewed in line with remuneration budgets so that the Council minimum wage remains ahead of the statutory minimum wage, but we are not locked into the increases and timelines defined by the living wage movement.



• All staff will be paid at a rate higher than the statutory minimum wage. The increased minimum wage to date has helped Council attract people in our hard to fill roles (e.g. lifeguards and other pool staff). Council will be paying significantly more, in some role types, than others within the local labour market.

• By aligning to the Living Wage rate, but not joining the Living Wage Movement Aotearoa, Council is provided with the flexibility to make decisions relating to staff wages and contractor rates independently.

• This is the easiest option to implement as no further interventions would be required until either the statutory minimum wage is increased beyond what Council pays

• Setting a new minimum hourly rate above the current minimum hourly rate creates relativity concerns between some staff and compression issues across levels (e.g. supervisory positions and other more highly graded roles).

• The approach Council takes to address relativity concerns will determine the impact. This could range from talking through the strategy with staff through to shifting some staff pay rates slightly to recognise their additional responsibilities.


24. The annual cost to implement this recommendation (based on the 1 September 2020 Living Wage rate of $22.10) is $353,000 in Year 3.

25. These costs are based on our peak seasonal numbers, using the yearly average earnings for employees and then reducing this by 20% to account for our fixed term and casual employees who do not work all year round. These numbers include the employer contribution to KiwiSaver of 3%.

26. A 2.5% increase is allowed for each year.

27. Costings do not include any adjustments to staff paid above the Living Wage rate who may be affected by relativity and compression.

Based on the current 10-year plan

Year 3 20/21 $000

Year 4 21/22 $000

Year 5 22/23 $000

Year 6 23/24 $000

Year 7 24/25 $000

Year 8 25/26 $000

Year 9 26/27 $000

Year 10 27/28 $000

Total over 8 years $000

Total Revenue

- - - - - - - - -

Total Operating Expenses

353 362 371 380 390 399 409 420 3,084

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Option 3: Status quo

28. Description

29. This option retains the status quo with no move to increase the minimum wage beyond the current Council minimum wage of $20.00.



• No additional staff costs for those employees currently being paid the council minimum wage.

• Once the statutory minimum rate reaches $20.00 in 2021 Council may lose an advantage of attracting talent into the organisation.


32. There are no known financial implications if the status quo is retained.

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Clarifications to Annual Plan Report – 10 June 2020

Introduction The agenda for the Annual Plan Council meeting on 10 June was published on Friday 5 June. Subsequently Elected Members have raised several questions and points of clarification. This paper also provides an update to the financial information which is outlined in the first section. The paper is structure in format that follows the Council Report Structure and where relevant the Council Report paragraph is noted.

Contents Introduction ..................................................................................................................................... 1

1. Updated Financial Position ....................................................................................................... 1

2. Proposals (paragraphs 59-63) ................................................................................................... 3

3. Background – Changed Assumptions (paragraph 31) .............................................................. 4

4. Community Response (paragraph 38) ...................................................................................... 4

5. Capital Savings: (paragraph 46-50) ........................................................................................... 4

6. Operating Savings (paragraphs 51-58) ..................................................................................... 5

7. Proposed Financial Position (paragraphs 78-80) ...................................................................... 6

8. Other items: .............................................................................................................................. 7

9. Consultation Document:........................................................................................................... 7

1. Updated Financial Position As indicated last week, staff were still working on the impact the revised capital programme had on The Council’s depreciation and interest costs. Based on the staff recommendation of a capital programme of $297.7 million, staff have recalculated the impact on depreciation and interest. The result is a reduction in expenditure of:

• Depreciation $4,463,000

• Interest $8,899,223 These numbers come directly off the balancing the books measure taking it from a $26 million deficit to $12 million deficit. There is also an effect on future years due to depreciation being brought back in line with 2018-28 10-Year Plan figures. This means in 2022 we go from a $13 million deficit to a $4 million deficit.

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These numbers are based on the position as outlined in the recommendations:

• Community response projects - Recommendation (a)

• Capital deferrals of $64.9 million – Recommendation (b)

• Inclusion of operating savings of $7.3 million – Recommendation (c)

• Proposals as per Recommendation (d) (i) to (vi)

• Changes to the Year 3 2018-28 10-Year Plan – Recommendation (e)

• Based on an average annual rate increase of 3.8% - Recommendation (f) Financial Impact for 2020/21 is: (Paragraphs 78- 80) a) Balancing the books measure deficit of $12 million in 2020/21 as shown below in Graph 3 b) Debt to revenue ratio of 214% in 2020/21 as shown below in Graph 4 c) Debt level of $629 million in 2020/21 as shown below in Graph 5. Replacement of Graph 3

Replacement of Graph 4

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Replacement of Graph 5

2. Proposals (paragraphs 59-63) In Attachment 1 Proposed Business Cases, the detailed Business Cases state the staff recommendations. Only a limited number of proposals are being put forward for inclusion in the budget and hence the Council Report recommendation supersedes that of the Business Case staff recommendation. Two proposals had been updated but not captured in the Attachment 1. These are: Business Case 9 – Extend resourcing for community engagement – updated business case Note the recommendation in the report remains that the proposal ($240,000) is not recommended. The paper that was attached to the agenda was an incorrect version. The updated Business Case is attached as Attachment A Extend resourcing for community engagement – updated business case. Business Case 13 – Minimum Wage / Living Wage Note the recommendation in the report remains that the proposal ($353,000) is not recommended. The business case has been updated and is attached as Attachment B Minimum Wage / Living Wage. The paper that was attached to the agenda was an incorrect version. Staff have changed their position since pre COVID-19 given the deep cost cutting that is going on. Staff’s focus is on protecting jobs rather than lifting some at the risk of other staff cuts needing to be made. This was communicated at last Wednesday’s workshop. Question: The exact number of staff currently under the ‘living wage’, and some clear projections of relativities expected after the suggested salary freeze is lifted. Response: Council currently has 91 staff on the $20 per hour Council minimum wage (a mix of permanent, fixed term and casual workers). Council has a further 151 staff who sit above $20 and below $22.10. The approach Council takes to address relativity concerns will determine the impact. This could range from talking through the strategy with staff through to shifting some staff pay rates slightly to recognise their additional responsibilities. Business Case 11 – Resource for the continuation of work to secure infrastructure Funding and Financing opportunities for Rotokauri, supports the Peacocke and Central City programme of work. The updated business case was attached in the Appendix to the Council Report.

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3. Background – Changed Assumptions (paragraph 31) Question: Para 31 of agenda has details of the assumption used to base the operational budget on, ie six months at level 2, then 6 months at level 1. Is this the same assumption used to estimate the reduced OPEX numbers in Table 11? If yes, can our assumptions be adjusted to reflect a model closer to reality? Response: Yes this assumption is used to calculate the Opex numbers in Table 11. At the time of staff reviewing the assumptions, we were just exiting level 3. We would recommend we reassess the assumptions prior to the 23 July Deliberations Meetings and provide an update at that meeting, noting the majority of lost revenue is due to the forecast economic recession and reduced visitor numbers for events and conferences.

4. Community Response (paragraph 38) Paragraph 38(b): Point of clarification - the Major Events Funds the Hamilton Gardens Art Festival and Balloons Over Waikato.

5. Capital Savings: (paragraph 46-50) Question (Paragraph 47):The Gordonton Road capital project deferral including the Puketaha/Gordonton intersection. Has any work had been done to find a short term solution for that intersection (maybe via the low cost, low risk funding avenue?) while we work through the Spine Rd proposal which is still a while away? Response: The Gordonton Road Corridor Business Case was not approved by the New Zealand Transport Agency. Staff recommend that the project is put on hold until we understand the effects of R2 and Ruakura Spine Road development. We recommend we buy the land needed for $2.7million to futureproof further works on the Corrido. There are no immediate plans for safety intervention at Gordonton/Puketaha. Question: Update on Baverstock Road Urban Update (relates to the 2019/20 financial year) Response: This project is tendered and ready to go. Its within budget and the CEO delegations. The Elected Members were updated on the project due to the COVID-19 environment. Staff are recommending to proceed with the project. Question: Funding for the Te Awa Cycle Path (Paragraph 58) Response: This is the Path that extends from Hamilton to Cambridge and involves the Te Awa Trust, Hamilton City Council, Waikato District Council, Waipa District Council and New Zealand Transport Agency, not to be confused with the Te Awa Path repair which is proceeding as a separate project. Options are: Option 1: Proceed as planned meaning this will be an Annual Plan decision. This means Council’s share of funding will only be confirmed by end of July 2020. This timing allows for any linkage to Stimulus package funding to be understood. This timing doesn’t suit the timing that NZTA is indicating is required and the risk is that the entire Te Awa Package will not be funded. Option 2: The funding for the project becomes a 2019/20 year decision to be made at the Finance Committee on 16 June 2020. Question: Civic Square $541k - Programmed for an upgrade – what this for? Response: In the current 10 Year Plan there was a proposal to upgrade civic plaza (included as part of the city centre transformation plan). Works included renewal of the fountain, new entrance into the Coucnil building (the one servicing the reception lounge), the plaza itself and pavers around the municipal building. All works were removed from the 2018-28 10-Year Plan with the exception of the pavers around the municipal building.

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The $541k is to replace the big square pavers immediately next to the building. These pavers are 40 years old now and require regular re-grouting and replacements as they are starting to break creating a safety issue. The pavers also form part of the planter boxes, making this project slightly more complex, which is reflected in the budget allocation for the works. Question: Destination Parks has $4.1m - can we look at this and find some savings as this is renewal not new, maybe some of the destination playgrounds equipment has stood up better and we can reduce this budget without affecting LOS Response: The $4.1 million in the year in question does not include playgrounds renewals, although we do align both budgets to ensure we can maximise outcomes. The $4.1m for destination parks is made up of:

1. $2.7 million is committed to the Ferrybank revetment wall renewal project. Council approved letting of this contract last week.

2. $350,000 for various Hamilton Lake Domain renewals of sections of path, carpark and the duck feeding area which are all in poor condition. It recommended this work proceeds otherwise sections of the path may need to be closed (particularly the duck feeding platform).

3. $620,000 for Hinemoa Park renewals including the Squash Club carpark which is in poor condition and the balance would go towards works to tie in with the Pasifika Hub project.

4. $400,000 for Claudelands Park – renewal of carpark surfaces, furniture, BBQs, and signage. Timed to align with Playground renewal. This is a busy site with tired assets and it is recommended this work proceeds.

The renewals funding for playgrounds is $909,500 as summarised below. In regards to equipment standing up better than expected, we re-use equipment where appropriate. The Playground renewals for next year are all in areas that have high community expectation.

Glenview Park $149,500.00

Hayes Paddock $100,000.00

Hammond Park $100,000.00

Claudelands $460,000.00

Elliott Park $100,000.00

Question: Theatres $352k – this is for technical equipment? We no longer have any theatres under our control and it appears to me that Claudelands has it’s own budget CAPEX for this stuff Response: It is for technical services equipment required across the H3 venues (mostly Claudelands) for digital equipment and technology to meet rising customer demands for changing technology needs (incl. WIFI capacity etc). We no longer have theatres in our portfolio although we do deliver what could be termed as theatrical support technology for some Claudelands customers. Question: Replacement of fleet $1.8m – I’d like to know where we are with the Loop Car Share proposal, that was thought to provide us with some savings. Also can we hold off on non essential fleet replacement like staff car share fleet UNTIL we’ve made the decision regarding Loop. Response: An update will be provided on 10 June.

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6. Operating Savings (paragraphs 51-58) Question (Paragraph 52): Wage freeze for staff. Briefing notes say its applicable to staff over $100k in the briefing, but says over $70k in the agenda. Both still have a cost saved of $1mil. Please explain how this was calculated and not changed if the threshold is now lower? Response: The wage freeze applies as follows: We will give a 2.5% salary increase only for those employees earning $70,000 or less (or for employees earning between $70,000 and $100,000 who are paid below 90% of their pay grade). It is the same wage freeze, not separate items. Question (Paragraph 52): The $1,785,000 of additional operational savings identified (which is not being recommended) in Table 6 - how is it that most, if not all of these savings are from the community portfolio? Have any other areas been investigated for operational savings? Or is community prioritised last for a reason? Response: Staff were asked to find savings and outline how they may impact services to community. Capital savings through the deferral of capital projects ($64.9m) mainly were growth and infrastructure projects. The operating savings of $7.3m focused on internal savings were there is not a direct impact on the community. The Potential Operating savings, not recommended by staff, arose from looking across all of the business including the community area and services. Question (paragraph 56): Smart Hamilton initiatives $261k – would be a small saving but could be worth it if not done this financial year. Response: The key projects are the Partnership project with Smart Cities and Innovation Waikato, and the Digital Twin project. These projects will be the basis for significant innovation and efficiency gains in the long term and if deferred will impact on the delivery of the innovation programme. Question (paragraph 56): Requests some clarity around the cat-neutering contestable fund. How many have taken up the fund, who was successful in receiving monies and have we heard from them? Response: The following groups were supported through this funding.

Waikato Animal Outreach Trust $7,000

Royal New Zealand Society for the Prevention of Cruelty to Animals Incorporated $20,000

Paws 4 Life Charitable Trust $45,000

New Lives Animal Rescue $25,000

Carevets Charitable Foundation Trust $3,000

Total $100,000

These groups were funded in October 2019 and they are due to submit an accountability fund in September 2020. The funding comes out of the animal control budget. All groups are using the funds as intended, although one or two groups did say their de-sexing programme was delayed/ interrupted by COVID-19 (March/April being their peak season for de-sexing) because vets were focusing on essential emergency only. They are back on track now.

• Total numbers being de-sexed per year 3070

• Total number being re-housed per year 2944 The reason the de-sexed number is higher is due to some of the groups having arrangements with vets to support families who already have cats but can’t afford to have them de-sexed. One or two of these groups will provide discounts through their vets to get them de-sexed. They already have a home so are not counted as a rehome. Some groups also take in cats who are already de-sexed but need to be rehomed (so not counted on the de-sex list but counted on the re-home list). All the groups are very clear that our funding is used for de-sexing and re-homing cats/kittens who are strays.

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7. Proposed Financial Position (paragraphs 78-80) Question: The overall revenue deficit due to COVID-19. In the briefing notes this was quoted as $21.5mil, but in the agenda it says $22mil. Has this been rounded up by half a million or have we found more losses? Response: This is rounding in the briefing notes. Question: Will Elected Members be able to see the impacts on the financial strategy of various scenarios? Response: This information will be provided during the meeting based on decisions made in the meeting.

8. Other items: Question: What is the impact of the Central Business District 2 Hour Free Parking Trial Update? Response: The Central Business District 2 Hour Free Parking Trial Update report was, at the request of the Infrastructure Operations Committee, deferred and delegated to the Central City and River Plan Advisory Group to provide a recommendation to Council/Infrastructure Operations Committee by 30 June 2020. This is on the Agenda for the Central City and River Plan Advisory Group for Monday 15 June 2020.

9. Consultation Document: Question: Can you please confirm the questions being asked in the consultation document are still to be determined (see Page 137) presumably on Wednesday’s Meeting outcome, and questions to be determined will be added to those on Page 138 the feedback form. If so will elected members have the opportunity to have questions considered? Response: Yes the consultation document will discussed at the 10 June Council meeting to allow Elected Member input and modified following any resolutions on the consultation document. The consultation document has been drafted in response to the staff recommendation, any changes agreed on at the Council meeting on 10 June will be reflected in the consultation document.

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