The Department of Internal Affairs has asked Tauranga City Council to explain what it is doing about reports of "poor conduct" and "significant conflict" between its elected members.
And the clashes have also come to the attention of the Local Government Minister.
On Friday the council will hold an emergency meeting to discuss bringing in a Government "review and observer team" to monitor the council, in response to the department's request.
The council's in-fighting has hit the headlines several times this term, with turmoil seeing the deputy mayor replaced, claims of "toxic" elected member relationships, and accusations of "plotting" and "blow-ups" behind closed doors. At one point, mayor Tenby Powell considered resigning, as did councillor Jako Abrie.
Senior Department of Internal Affairs official Anita Balakrishnan told the Bay of Plenty Times concerns had been raised about "significant conflict" in the council following media articles.
"We have been monitoring the council closely since June 2020 when the former deputy mayor [Larry Baldock] resigned, and a new deputy mayor [Tina Salisbury] was appointed.
"The concerns raised were around the poor conduct of elected representatives behind the scenes that have been conveyed to the public through social media and news channels.
"We are also aware that the mayor has publicly threatened to resign from his office."
Balakrishnan, along with department manager of operational policy Richard Hardie, met with Powell and council chief executive Marty Grenfell via Zoom on Wednesday last week.
Balakrishnan said the meeting was to "discuss the issues and the steps being taken to address the issues".
"We have subsequently asked the council to provide assurance and evidence that it is taking proactive steps to restore trust and confidence in its ability to meet the Crown's and ratepayers' expectations of a high-performing council."
Asked what the tipping point would be for intervention, Balakrishnan said the department wanted an assurance the council was providing unified governance.
On Tuesday, the Crown announced it was forming an urban growth partnership with a collective of western Bay of Plenty councils - including Tauranga - tangata whenua and other community groups.
"We want assurance that the council is providing strong, unified governance and leadership to deliver the anticipated social and economic outcomes of this investment."
The Government recently announced a $45 million grant towards the council's multimodal project on Cameron Rd, adding to a host of other funding commitments in the wider Western Bay this year - including nearly $1 billion for the Tauranga Northern Link.
In a written statement yesterday, Grenfell said the council would hold an emergency meeting on Friday to consider a report on governance issues and recommend a plan to address elected member's relationship issues, in response to the department's request.
He said the department wanted information so it could advise the Local Government Minister.
In the meeting, council staff would recommend initiating the appointment of a "review and observer team" to monitor interactions and performance and report to both the council and the department.
"The proposed review and observer team would be focusing on support, and monitoring and reporting on progress in restoring the strong, unified leadership needed to advance the city's interests."
If adopted, the chief executive would report back in two weeks with terms of reference for the team, a budget request and other details.
He hoped this would move the elected members closer to working better together.
Grenfell said the issues had mainly happened outside of council chambers. The council's formal decision-making process and relationships with executive staff remained effective.
Grenfell said the action if adopted, "would largely replicate the arrangements the Local Government Minister could make".
Prior to the council's announcement, Local Government Minister Nanaia Mahuta told the Bay of Plenty Times the department was keeping her updated but she expected the council to sort itself out.
"The council must be responsible for resolving its own problems, as is the expectation for all councils in New Zealand.
"Should the council be unable to resolve its issues, the Department of Internal Affairs will work more directly with the council to find a resolution. However, if a 'significant problem' should occur, then intervention will be considered."
She said the threshold for Government intervention in the governance of local authorities was high.
"In essence, there has to be significant or persistent mismanagement or failure of governance on the part of a local authority."
Ministerial intervention options under the Local Government Act ranged from requesting information, appointing a Crown Review Team, Crown Observer, or Crown Manager, to appointing a commission to act on behalf of a local authority.
"As the Minister of Local Government, I retain the authority to determine what level of intervention would be appropriate if a council is unable or unwilling to perform its functions or duties."
Government intervention in local authority governance is reasonably rare.
Last year Mahuta put Westland District Council on notice she was considering installing a Crown Observer over concerns that included poor processes and dysfunctional governance and management. This did not eventuate following the election.
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