Ombudsman investigates Masterton council's civic centre process

The Chief Ombudsman is formally investigating Masterton District Council's civic centre process, it has been revealed.

But elected members were not told a complaint to the watchdog had escalated to this stage, despite the council being notified in November.

Masterton's mayor has now apologised to councillors for not relaying the information.

The $30 million civic facility project has been surrounded by heightened controversy over the past year.

Council chief executive Kath Ross resigned in August after she was caught tearing down the poster for a protest where more than 1000 people took a stand against the proposed civic centre.

The deputy mayor was also stood down from his position as chair of the civic facility committee after he labelled some project detractors as a group of "grumpy, old, white men".

The survey platform used for last year's Long-Term Plan consultation was criticised by elected members and residents who called it "extremely frustrating" and "ridiculously hard" to navigate.

Residents also felt that details were scant on key civic facility aspects such as its location.

In June, councillors voted to progress the civic facility project with some external funding as part of the long-term plan by a slim majority [6-5].

The preferred site, at the northern end of town, is yet to be purchased, but two offers from the council have been rejected.

To top it off, Masterton residents called for a referendum to be held on the matter and some have laid complaints to the Office of the Auditor-General and the Ombudsman over the process.

Dr Amanda Lynn, who laid her complaint to the Ombudsman in June, has confirmed she received written confirmation of a formal investigation on 24 November.

She is now discussing the release of information with the Office of the Ombudsman in the name of transparency.

"This is an issue of significant public interest and from review of council meetings I do not believe councillors were aware of the investigation," she said.

"It is in their interests, and the wider public interest, that they are in full possession of the facts in order that they may fulfil their duty of care in an open and transparent environment.

"I am now raising awareness within the limits of my rights.

"We should support a fair and methodical investigation.

"No matter the outcome of the investigation, the fact that it is occurring signals a need to improve the way that the council relates to the community, which is deserving of and has the right to the highest standard of inclusion."

Masterton Mayor Lyn Patterson confirmed yesterday she had apologised to councillors for not keeping them in the loop.

"Councillors were made aware that a complaint had been raised and an investigation was underway in August 2021 but had not been made aware that this investigation had been formalised in November 2021," she said.

"An apology was given to councillors and they will be advised of any further progress."

It is understood councillors found out about the formal investigation this week.

Dr Lynn said the letter she had received in November, written on behalf of the Chief Ombudsman, focused on three areas of concern regarding Masterton District Council's community consultation and administrative process for the proposed $30m civic facility.

Dr Lynn, who is the principal analyst at consultancy firm Mandolin Associates, said it was her opinion that the council's consultation process was "flawed and that insufficient due diligence has been undertaken to support the most positive outcome for the people of Masterton - and the wider Wairarapa community".

At the time of consultation, there was little clarity over what was proposed, whether the Masterton Trust Lands Trust could or should release the land council had eyed up for the facility, the true cost of the build and financing, and the real impacts on the economy, Dr Lynn said.

Mandolin Associates formalised a complaint to Masterton District Council on 1 June 2021.

"We received no effective response at that time, and therefore formalised a complaint with the Office of the Ombudsman on 17 June 2021.

"Following initial assessment, the Chief Ombudsman has elected to move to formal investigation, and this has been very active since that time.

"This is not a process I have taken lightly, and I believe that a facility is needed.

"However, it is vital that the history, current culture, and legacy of this place is that of the people and not of the elite.

"Consultation, processes, and due diligence must be robust and I support the Masterton Action Group and the Residents Association in their call to the Office of the Auditor-General for support."

She was "comforted" by the Chief Ombudsman's participation in "supporting the Masterton people and their council to uphold the highest standards of consultation and process in relation to such a significant financial, economic and cultural investment".

An Ombudsman spokesperson said they were unable to provide any further comment as the Chief Ombudsman was required by law to conduct his enquiries in private and in confidence.

The Ombudsman helps New Zealanders deal with public sector agencies. They handle complaints, undertake investigations and inspections, and encourage good administration.

A history of civic centre consultation

In 2016, Masterton's town hall was found to be earthquake-prone.

Following a few public consultations, the two main camps who have emerged are those who support the council's civic facility plans at a new site, and those who want a new facility at the existing town hall site.

Residents say the questions the council has asked in its early surveys do not give a clear indication of which is the preferred option of the two.

Of 220 respondents to a civic centre survey in 2017, 65 percent wanted to build a new performing arts and events centre and 35 percent wanted to strengthen the town hall.

The first option could be interpreted as being in support of a new centre on the town hall site or a new facility on a new site.

In 2018, as part of that year's Long-Term Plan consultation, people were asked for their thoughts on council's preferred option to build a new facility with an indicative budget of $15.5m.

Fifty-nine percent wanted to build a new performing arts and events centre, 27 percent wanted to strengthen the existing town hall [$12m-$15m], and 14 percent did not want to replace the town hall.

This again could be interpreted as support for a new facility at the town hall site or a new site.

In early 2020, just over 1000 people took part in a broad civic centre survey which focused on what facilities people would like included.

At this time, the budget of the civic centre was $22m.

In May that year, the council committed to building a new civic centre in Masterton, but no location was specified.

At the end of 2020, councillors voted 9-2 in public exclusion that the preferred location of the civic facility be "at the north end of town".

This vote informed the 2021 Long-Term Plan which set the budget of the civic facility at just over $30m.

At the time of last year's Long-Term Plan consultation, residents were told the council would be building the civic facility on a "new site".

In the consultation, people were asked if they wanted to either build the facility soon with some external funding [the council's preference] or build the facility now without external funding.

Of 212 people who submitted something civic-centre specific to the consultation, 89 wanted to either build the civic facility soon with external funding or now with no external funding.

The remaining chose to support neither available option.

Some of those who selected an available option expressed disappointment in the proposed capacity of the facility, some said they supported the project to happen eventually but "now is not the right time", and some said they preferred the current town hall site.

A Local Democracy Reporting analysis of the results from the consultation shows that of all respondents who mentioned the civic centre, just over half were not supportive of the civic facility options as it was proposed in the Long-Term Plan.

Vox Pop: What councillors have said

Local Democracy Reporting contacted each elected member of Masterton District Council to hear their thoughts on the Ombudsman's investigation. Responses were not received from: Graham McClymont, Frazer Mailman, and Chris Peterson.

What are your hopes for the investigation?

Mayor Lyn Patterson

The Civic Facility is a project that has been planned by council over many years. Community consultation as part of the process has steered council's decisions throughout.

As with any council decision, probity and accountability for this project is key. We will continue to support the Ombudsman's investigation by providing the information they require so that we can positively move forward with this important project. I, and I know many in Masterton, am excited to see this civic facility completed - both for our residents and those visiting our district.

Tina Nixon

As chair of the Civic Centre Committee, I say bring it on. I am determined that every step on the way to building the civic facility is done right. I am absolutely committed to transparency and welcome any investigation into the process. At various stages, the process has been audited by Audit NZ and expert council staff to make sure it meets legislative requirements. And we were assured that it did.

At the end of day, I am not afraid of any investigation. I welcome it, and the result, as it follows my ethos of transparency. As chair of the civic committee I promoted opening the doors to the public for all civic centre briefings and workshops at the first briefing with the architects. All councillors at that briefing supported my call for greater transparency of the process, apart from those matters which are commercially sensitive.

Bex Johnson

My hope is that the investigation will find that residents and ratepayers did not have enough detailed information regarding the civic centre consultation to give informed feedback. Submissions were primarily based on speculation as key information was not available to our community at the time.

I am hoping the investigation will lead to the call for new consultation with all the facts included so that feedback and discussion is robust and informed which will result in an outcome that our community welcomes and supports.

Sandy Ryan

We have a team of very competent officers at Masterton District Council and I am confident of a positive outcome. Investigations by the Ombudsman are robust and thorough.

Tim Nelson

I am hoping the investigation will highlight the extremely flawed approach that was undertaken regarding the civic centre aspect of the Long-Term Plan consultation, and how this caused confusion and frustration with many who completed submissions, and many who didn't because of the convoluted and confusing process. This was despite the shortcomings being raised at the very beginning of the process, and repeatedly throughout, when there would have been, in my opinion, an opportunity to make changes.

Gary Caffell

As a longtime critic over our consultation processes for the civic centre, I obviously welcome this investigation but quite frankly it won't change my thoughts no matter what the findings.

To my mind, the goalposts have been changed so many times it would make even the most stable person giddy and consequently a large percentage of the population are rightly disappointed and angry that important, and costly, decisions are being made without their input. If I had my way, we would pause the entire project and flush out a consultation process which provides our people with all the information they require to steer us in the right direction. Right now they are feeling left out and that's not a happy starting point for any project, let alone one with a price tag of $30.8m.

David Holmes

I would hope that this investigation shows that Masterton District Council is cognisant of and always available to listen to ratepayers' views and opinions.

Brent Gare

There is a robust process in place. I look forward to the outcome.

Local Democracy Reporting is Public Interest Journalism funded through NZ On Air