Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Due Date	Status Comment
1.	General Business	CDEM Joint committee agenda and minutes to be distributed to councillors	LH	Immediately	This has been noted and recent draft minutes will be circulated as soon as finalised.
2.	Strategic Plan	Councillors to receive draft documents prior to workshop	AN	5 May	Documents pre-circulated as requested
3.	9 month Annual Report Progress	Develop a strategic approach to Appeals, using risk analysis	AN/DL
4.	Quarterly Significant Initiatives Update for Council	Recreation Plan for the Waihapua Forest Park (Tutira Carbon Sequestration property)	GH/MA		Will be included in Open Spaces update report to May Council meeting
5.	Quarterly Significant Initiatives Update for Council	Future papers to be structured to follow Council’s strategic themes and to include trends, progress compared to targets (i.e. %), evaluation of effectiveness, financial performance where appropriate, and an indication of when/if report specific to project will be going to Council	AN/LH		To be incorporated in the next quarterly update (to 30 June 2011)
6.	General Business	flooding/inundation risks for the Parklands subdivision area	MA		Will be included with Natural Hazards update for Council

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT: Affixing of Common Seal

COMMENT

1. The Common Seal of the Council has been affixed to the following documents and signed by the Chairman or Deputy Chairman and Chief Executive or a Group Manager.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 76

DP 10912

CT D/586

- Transfer

3046

13 May 2011

1.2

Concession Document (Easement)

Water Ride Cycleway

(Minister of Conservation & Hawke’s Bay Regional Council)

3039

27 April 2011

1.3 P

Deed of Grant of Easement

HB Airport

(Water Ride Cycleway)

3044

11 May 2011

1.4

Agreement

Landcorp Holdings

(Water Ride Cycleway)

3045

11 May 2011

1.5

Staff Warrants

1.5.1 N von Westernhagen

(Delegations under Soil Conservation and Rivers Control Act 1941; Resource Management Act 1991; Land Drainage Act 1908; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174))

1.5.2 W Robinson

(Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174))

1.5.3 D Norman

M Moore

(Delegations under Local Government Act 2002 (s.650) and Local Government Act 2002 (s.171 and s.172)

3041

3040

3042

3043

DECISION MAKING PROCESS

2. Council is required to make every decision in accordance with the provisions of Sections 77, 78, 80, 81 and 82 of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within these sections of the Act in relation to this item and have concluded the following:

2.1 Sections 97 and 88 of the Act do not apply

2.2 Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others due to the nature and significance of the issue to be considered and decided

2.3 That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision making process.

RECOMMENDATIONS

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Confirms the action to affix the Common Seal.

Diane Wisely

Executive Assistant

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT: Review of Council Committee Structure

REASON FOR REPORT

1. The Council adopted a committee structure after the local body elections in October 2010, with the intention of reviewing that structure in the first half of 2011. The rationale for the review included an assessment of the potential changes to committee functions created by the establishment of a Regional Planning Committee, and recognition of the need to maintain a “fit for purpose” organisation.

Discussion

2. Council considered its committee structure at the 27 April 2011 meeting and resolved that it:

Adopts the following changes to the current committee structure, in principle and subject to further information including Terms of Reference being brought forward to the May Council meeting, with recommendations 2.1 and 2.2 to take effect from 1 July 2011:

2.1 Establishes a new committee for Regional Planning, with membership comprising equal representation of councillors, and non-councillors from the Treaty claimant groups.

2.2 Dis-establishes current separate Council committees of Environmental Management and Asset Management & Biosecurity and creates a Regulation, Monitoring and Operations Committee to recognise the strong cross-linkages between these service activities.

2.3 Continues the other current committees of Council.

2.4 Reviews the Terms of Reference for the Maori Committee, once the Regional Planning Committee is operating, to determine any changes required to the functions of the Maori Committee and its meeting frequency.

3. Following feedback from councillors the proposal detailed in this paper, with appropriate Terms of Reference, is to establish two new committees: Regional Planning, and Environment and Services, and re-name the Strategic Planning and Finance to Strategic Planning and Investments with some re-allocation of functions.

4. The Environment and Services Committee brings together the operational aspects of the Environmental Management and Asset Management and Biosecurity Committees in recognition of the significant overlap in activity and purposes of a number of these functions.

5. Consideration was given to forming a Finance sub-committee which would report to the Strategic Planning and Investments Committee. This has not been pursued as a recommendation because the structure of sub-committees is not established within Council and because all councillors would likely prefer to be involved in all discussions on any financial matters. Functions have therefore been re-allocated whereby financial reporting is considered directly by Council, with discussions on investment decisions and annual plan development being considered at the Strategic Planning and Investments Committee.

6. The Proposed Terms of Reference for these two committees are attached as Attachment 1.

7. The Regional Planning Committee Terms of Reference are still in a draft form. The functions of the Committee are clearly identified; however discussion is still ongoing as regards to initial composition of the committee. The four Treaty claimant groups, who have been in discussion with Council on the Draft Terms of Reference, recognise the need for the Committee to begin tackling its workload and have offered that the committee commence its work programme without the full complement of Treaty claimant groups on board at the outset. The Draft Terms of Reference for the Regional Planning Committee are attached as Attachment 2.

8. The following table sets out the allocation of Council functions across the proposed committees and Council.

Strategic Planning and Investments	Environment and Services	Regional Planning	Regional Council
Strategic Planning, including scenarios planning	Asset management	Resource management policy development	Annual Plan adoption and re-forecasting
Annual Plan development	Biosecurity	Environmental science – referral from E & S Committee of reports to inform plan and policy statement development	Annual Report and auditing
Investment Portfolio	Environmental compliance and enforcement – policies and procedures	Plan Effectiveness monitoring	Quarterly key initiatives reporting
External relationships, including strategic partnerships	Resource Consents – operational policies (applications still heard by Hearings Committee)		Other financial reporting including: · Healthy homes · Public transport
Marketing and communications incl community engagement and environmental education	Engineering		Monthly work plans
Environmental science – development and review of science strategies, and funding implications	Environmental science – presentation of reports, and State of the Environment monitoring
Infrastructure development	Land Management
Water Information Services	Water Advisory Services
Economic development and tourism	Maritime and navigation safety
Six-monthly risk assessment of Council activities	Statutory advocacy
Information services

DECISION MAKING PROCESS

9. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

9.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

9.2. Sections 83 and 84 covering special consultative procedure do not apply.

9.3. The decision does not fall within the definition of the Council’s policy on significance.

9.4. The persons affected by this decision are members of the community that benefit from the activities of Council.

9.5. The options considered are to retain the current committee structure or to amend it as proposed, or to amend it in an alternative manner.

9.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

9.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS

That Council:

2. Adopts the following changes to the current committee structure, to take effect from 1 July 2011:

2.1 Dis-establishes the current separate Council committees of Environmental Management and Asset Management & Biosecurity, and replaces them with the Environment and Services Committee with the following Terms of Reference.

ENVIRONMENT AND SERVICES COMMITTEE

TERMS OF REFERENCE

a) Policy

· To consider and recommend to Council policies with regard to Council responsibilities or involvement with land drainage and river control under the Local Government Act 2002, Land Drainage and Rivers Control Act 19541 and Land Drainage Act 1908

· To consider and recommend to Council polices with regard to Council’s responsibilities for biosecurity under the Local Government Act 2001 and the Biosecurity Act 1993.

· To consider and recommend to Council strategies, policies and by-laws and compliance and enforcement programs relating to maritime and navigational safety under the Maritime Transport Act.

b) Environmental Monitoring and Research

· To consider and recommend to Council environmental monitoring strategies and research and investigation programmes, including the State of the Environment Reports.

· To consider technical reports on the findings of research and investigations into the impact of activities and recommend to Council the development of new policy frameworks based around such information.

c) Implementation

· To periodically review the effectiveness of Council's work programmes within the ambit of the Committee and make recommendations to Council for any changes.

· To recommend to Council management plans or any similar such documents for the effective implementation of these programmes of Council.

· To assist staff, where appropriate, in identifying a preferred option and funding mechanism for Council consideration for any biosecurity initiative or infrastructure asset construction or improvement work and in promoting the preferred option to the beneficiaries.

· To consider and recommend to Council all other policy implementation issues of Council.

d) Compliance and enforcement

· To consider reports on the effectiveness of Council’s compliance monitoring and enforcement activities, and to recommend to Council the response to issues arising from such reports.

e) Financial Authority

· To recommend to the Strategic Planning and Investment Committee consideration of possible financial implications of specific initiatives.

f) Advocacy and Liaison

· To receive reports and liaise with Territorial Authorities on any issues dealt with through the Environment and Services Committee, as necessary.

· To assist with the co-ordination of services between the Regional Council, other relevant local authorities and other entities/groups.

g) Statutory Process

· To consider and authorise the lodging of an appeal or reference to the Environment Court against a decision of a territorial authority or an application or designation or proposed plan or plan change or variation on which the Regional Council had lodged a formal submission.

MEMBERS:	· All Councillors being: · Two appointed members of the Maori Committee being: and
CHAIRMAN:	A member of the Committee as elected by the Council being:
DEPUTY CHAIRMAN:	The Chairman of Council or in his/her absence the Deputy Chairman of Council
MEETING FREQUENCY:	Generally on the second Wednesday of every second month
STAFF EXECUTIVE:	Group Manager Resource Management Group Manager Asset Management

2.2 Confirms the meeting dates for the remainder of 2011, as per the Council Meeting Planner, for the Environment & Services Committee as Wednesday 10 August, and Wednesday 12 October 2011.

2.3 Re-names and re-focuses the Strategic Planning and Finance Committee to the Strategic Planning and Investments Committee with the following Terms of Reference.

STRATEGIC PLANNING AND INVESTMENTS COMMITTEE

TERMS OF REFERENCE

a) Policy

· To consider and recommend to Council strategic planning initiatives including development of the Council’s Strategic Plan.

· To consider and recommend to Council policies with regard to economic development strategic initiatives.

· To consider and recommend to Council the strategic direction for Council's investment portfolio.

· To consider and recommend to Council on risk and audit issues.

b) Implementation

· To periodically review the effectiveness of Council's work programmes within the ambit of the Committee and make recommendations to Council for any changes.

· To consider major financial matters arising from other Committees’ recommendations.

· To consider the issues raised in the Audit Reports on the LTP and Annual Report as provided by Audit New Zealand.

· To consider and recommend to Council, where appropriate, the sale or acquisition of Council investments.

· To monitor the performance of the Council Investment Company (should one be established)

· To assess proposals to transfer assets to Council’s Investment Company (should one be established)

c) Advocacy and Liaison

· To oversee, develop and approve an appropriate Council response on strategic partnerships

Members:	All Members being: One appointed member of the Mäori Committee being: the Chairman of the Maori Committee
Chairman:	A member of the Committee as elected by the Council being:
Deputy Chairman:	The Chairman of Council, or in his/her absence the Deputy Chairman of Council
Meeting Frequency:	Generally on the second Wednesday of every second month
Staff Executive:	Chief Executive Group Manager Strategic Development Group Manager Corporate Services

2.4 Confirms the meeting dates for the remainder of 2011, as per the Council Meeting Planner, for the Strategic Planning & Investments Committee as Wednesday 13 July, Wednesday 14 September, and Wednesday 16 November 2011.

2.5 Establishes a new Committee for Regional Planning, with the Terms of Reference to be finalised at the Council meeting on 29 June 2011.

Liz Lambert

Group Manager

External Relations

Andrew Newman

Chief Executive

Attachment/s

1 View	Proposed Terms of Reference for Environment and Services Committee and Strategic Planning & Investments Committee
2 View	Draft Terms of Reference for Regional Planning Committee

Proposed Terms of Reference for Environment and Services Committee and Strategic Planning & Investments Committee

Attachment 1

ENVIRONMENT AND SERVICES COMMITTEE

TERMS OF REFERENCE

a) Policy

· To consider and recommend to Council polices with regard to Council’s responsibilities for biosecurity under the Local Government Act 2001 and the Biosecurity Act 1993.

· To consider and recommend to Council strategies, policies and by-laws and compliance and enforcement programs relating to maritime and navigational safety under the Maritime Transport Act.

b) Environmental Monitoring and Research

· To consider and recommend to Council environmental monitoring strategies and research and investigation programmes, including the State of the Environment Reports.

c) Implementation

· To periodically review the effectiveness of Council's work programmes within the ambit of the Committee and make recommendations to Council for any changes.

· To recommend to Council management plans or any similar such documents for the effective implementation of these programmes of Council.

· To consider and recommend to Council all other policy implementation issues of Council.

d) Compliance and enforcement

· To consider reports on the effectiveness of Council’s compliance monitoring and enforcement activities, and to recommend to Council the response to issues arising from such reports.

e) Financial Authority

· To recommend to the Strategic Planning and Investment Committee consideration of possible financial implications of specific initiatives.

f) Advocacy and Liaison

· To receive reports and liaise with Territorial Authorities on any issues dealt with through the Environment and Services Committee, as necessary.

· To assist with the co-ordination of services between the Regional Council, other relevant local authorities and other entities/groups.

g) Statutory Process

MEMBERS:	· All Councillors being: · Two appointed members of the Maori Committee being: and .
CHAIRMAN:	A member of the Committee as elected by the Council being:
DEPUTY CHAIRMAN:	The Chairman of Council or in his absence the Deputy Chairman of Council
MEETING FREQUENCY:	Generally on the second Wednesday of every second month
STAFF EXECUTIVE:	Group Manager Resource Management Group Manager Asset Management

STRATEGIC PLANNING AND INVESTMENTS COMMITTEE

TERMS OF REFERENCE

a) Policy

· To consider and recommend to Council strategic planning initiatives including development of the Council’s Strategic Plan.

· To consider and recommend to Council policies with regard to economic development strategic initiatives.

· To consider and recommend to Council the strategic direction for Council's investment portfolio.

· To consider and recommend to Council on risk and audit issues.

b) Implementation

· To periodically review the effectiveness of Council's work programmes within the ambit of the Committee and make recommendations to Council for any changes.

· To consider major financial matters arising from other Committees’ recommendations.

· To consider the issues raised in the Audit Reports on the LTP and Annual Report as provided by Audit New Zealand.

· To consider and recommend to Council, where appropriate, the sale or acquisition of Council investments.

· To monitor the performance of the Council Investment Company (should one be established)

· To assess proposals to transfer assets to Council’s Investment Company (should one be established)

c) Advocacy and Liaison

· To oversee, develop and approve an appropriate Council response on strategic partnerships

Members:	All Members being: One appointed member of the Mäori Committee being: the Chairman of the Maori Committee
Chairman:	A member of the Committee as elected by the Council being:
Deputy Chairman:	The Chairman of Council, or in his absence the Deputy Chairman of Council
Meeting Frequency:	Generally on the fourth Wednesday of every second month
Staff Executive:	Group Manager Strategic Development Group Manager Corporate Services

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT: Recommendations from the Strategic Planning and Finance Committee

REASON FOR REPORT

1. The following matters were considered by the Strategic Planning and Finance Committee on Wednesday, 18 May 2011 and are now presented to Council for consideration and approval.

DECISION MAKING PROCESS

2. These items have all been specifically considered at the Committee level.

RECOMMENDATIONS

That Council:

Hawke’s Bay Tourism Limited

2. Approves the funding agreement between the Hawke’s Bay Regional Council and Hawke’s Bay Tourism Limited (or such other name as may be approved by the Registrar of Companies) for the establishment and operation of a Regional Tourism Organisation, noting that this funding agreement sets out the key performance indicators to be delivered during the duration of the funding agreement and also the Council’s commitment to funding during the three years of this agreement. Further resolves that authority be given to the Chief Executive to execute this agreement on behalf of Council.

3. Determines the person to be appointed as the Council’s representative on the Board of Hawke’s Bay Tourism Limited (or such other name as may be approved by the Registrar of Companies) is the Chairman, Fenton Wilson.

4. Approves the constitution of Hawke’s Bay Tourism Limited (or such other name as may be approved by the Registrar of Companies).

5. Approves the trademark licence agreement between this Council and Hawke’s Bay Tourism Limited (or such other name as may be approved by the Registrar of Companies), delegating authority to Council’s Chief Executive to execute this agreement.

business Hawke’s Bay

6. Receives the paper and instructs staff to continue the dialogue with HB Chamber of Commerce and to bring back to Council a paper containing the detail of the relationship and budget for the proposed Business Hawke’s Bay entity.

Heretaunga Plains Urgan Development Strategy Implementation Committee Review

7. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

8. Requests that the Joint Committee reviews the Terms of Reference at its first meeting, specifically the appropriate scope of the delegated authority, and that the results of that review be brought back to Council.

9. Advises the Implementation Committee, through its representatives, of the changes as set out that the Council would like the Implementation Committee to consider when reviewing the Draft Memorandum of Agreement.

Regional Digital archives

10. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

11. Receives the report “Hawke’s Bay Archives”.

12. Instructs staff to prepare a paper on the possible role of this Council in partnership with Hawke’s Bay Museum and Art Gallery including a detailed budget and work programme as the basis for consideration through the Draft Ten Year Plan 2012-22.

13. Instructs staff to distribute copies of the Hawke’s Bay Archives report to the Territorial Authorities and the Hawke’s Bay Digital Archives Trust, seeking their comments.

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT Sister City Relationship

REASON FOR REPORT

1. In October 2006, Council signed an Agreement between Xuzhou, Jiangsu of the People’s Republic of China, to establish a Friendship City Relationship. The Agreement is valid for 5 years. Upon expiration it may remain in force if neither side terminates it.

2. This paper provides a summary of activity that has occurred and continues to occur as a result of this Agreement, and seeks direction from Council for the future of the relationship.

Background

3. The Agreement was signed in October 2006 at a ceremony in Xuzhou attended by the Council Chairman and a number of other councillors.

4. Xuzhou is situated about 200 km from the coast and approximately midway between Shanghai and Beijing. It is the second largest rail hub in China and is at the junction of the major lines North-South (Beijing - Shanghai) and East-West (Lianyungang – Rotterdam).

5. The population of the Xuzhou district is about 9 million, of which about 1.5 million live in Xuzhou city.

Activities

Since the Agreement has been in place:

6. There have been ten delegation visits from Xuzhou including teachers, students, government officials, and business representatives.

7. The Hawke’s Bay Chamber of Commerce undertook a survey of local businesses in 2009 to determine interest in the development of trading relationships with Xuzhou businesses. Following this survey the Chief Executive of the HB Chamber visited Xuzhou to match the interests of HB businesses to opportunities in Xuzhou. During this visit a cooperation/trade relationship Agreement was signed between Xuzhou and Hawke’s Bay Chamber of Commerce. Commodities of most interest are wine, meat (including offal), wool and wood. An inward trade delegation (focused around wine) is planned for September 2011.

8. A Hawke’s Bay Trade office was opened in Xuzhou 5 years ago by a private organisation. Napier City Council has used this office to source various items for Napier City Enterprises and Young Enterprise Companies.

9. The importation into China of a container of timber exported from Hawke’s Bay bound for Xuzhou, was only released through border controls after mayoral intervention. Issues with importation documentation had resulted in the container being held. Mayoral interventions of this kind are understood to be not uncommon in China, and only made possible through Sister City Agreements.

10. The establishment and development of a Ginkgo industry in NZ and Hawke’s Bay are a direct result of strong relationships developed at a commercial level between Xuzhou and Hawke’s Bay businesses.

11. There is strong interest in Xuzhou in the environmental performance of New Zealand and Hawke’s Bay. This resulted in the Chairman of HBRC taking up an offer to visit China and present to an Expo in 2008. This was reinforced through Venture Hawke’s Bay’s presence at the World Trade Expo in Shanghai in 2010.

12. Napier City Council has signed a Heads of Agreement and is currently progressing arrangements for bringing terracotta warriors dating from the Han Dynasty (200BC – 300AD) to Napier in 2014 as one of the first feature events of the upgraded Hawke’s Bay Museum and Art Gallery. The warriors were discovered in 1984 and guard the tomb of the third king of Chu, Li Wu, which was discovered in 1992. Such an exhibition has only been held twice before outside of China, both times in Leoban, Austria, which is also a sister city of Xuzhou. The Heads of Agreement signed by Napier City Council provides for the exclusive rights to the warriors for the southern hemisphere. The benefit to Hawke’s Bay from this event is currently being assessed by Napier City Council. Mr Ron Massey will be attending the meeting and expects that preliminary results from this assessment will be available prior to the meeting.

13. A small cultural group attended a Napier festival in 2010, and a larger group is planning for around March 2012.

Future Activities

14. Mr Zhu (the former Foreign Affairs Boss when the Friendship Relationship was signed) is organising a 50 strong group for a tourism trip for Retired Chinese. He has arranged a similar trip to Japan before, but with their earthquake and tsunami, he is instead planning to visit Hawke’s Bay. He is currently planning for this to happen later in 2011.

15. The Hawke’s Bay Chamber of Commerce is planning a HB trade delegation visit to Xuzhou for around August this year. The Chief Executive of HB Chamber of Commerce has approached Council suggesting that this delegation could be led by the Regional Council Chairman. The visit would provide an opportunity for Council to meet with Xuzhou government representatives and reinforce the benefit of the Friendship Relationship.

16. Hukarere Girls College cultural group has been invited to perform at the opening of the Xuzhou Trade Fair in late September 2011, and to visit Xuzhou schools over a 3-4 day period. The group of 6 girls plus a kaumatua supported by 2 teachers and 1 member of their Board of Trustees, is fundraising to make this happen. To support them, staff have agreed to contribute $10,000 (sourced from Council’s partnership budget). The School is preparing this as an educational tour for the Group, to include Shanghai and Beijing. Staff believe that a Councillor representative accompanying this delegation will strengthen and reinforce the sister city relationship.

17. Staff are currently working with Napier City Council and Hawke’s Bay Chamber of Commerce on the timing of these two visits. Xuzhou is keen that they coincide with their annual Trade Fair, however the date for this will not be finalised until the end of July. There would be advantages if the two visits were combined, however whether or not this is practical will not be known for some time.

Budget Provision

18. Council provides an annual budget of $9,500 to maintain the sister city relationship. Staff work closely with Napier City Council (who has a sister city relationship with the neighbouring city Lianyungang) and the Hawke’s Bay Chamber of Commerce to ensure maximum effectiveness of this annual expenditure.

19. Should Council agree to the accompaniment of the delegation or delegations to Xuzhou by Councillors in the 2011/12 year, it is expected that this budget will be exceeded. A small provision will also be required to host visiting delegations should they wish to visit Hawke’s Bay. Depending on the level of interest from Councillors in accompanying the delegation or delegations, staff suggest that, in order to work within the budget provisions, Council subsidises the cost of the trip, and travelling Councillors meet a portion of the cost.

DECISION MAKING PROCESS

20. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

20.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

20.2. Sections 83 and 84 covering special consultative procedure do not apply.

20.3. The decision does not fall within the definition of the Council’s policy on significance.

20.4. No persons are affected by this decision.

20.5. Council can either strengthen the relationship through a visit to Xuzhou or allow it to continue through intermittent visits by Chinese delegations.

20.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

20.7. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS

That Council:

2. Agrees to maintain the active Friendship City Agreement with Xuzhou, Jiangsu of the People’s Republic of China given the potential commercial activity and economic opportunity for the region that arises from the relationship.

3. Agrees to the Council Chairman leading a delegation of Hawke’s Bay businesses to Xuzhou currently planned for September 2011.

4. Agrees to subsidise the cost of Councillors (including the Chairman) travelling to Xuzhou, with the budget provision for the Sister City Relationship.

Mike Adye

Group Manager

Asset Management

Liz Lambert

Group Manager

External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT Twyford and Raupare Appeals

REASON FOR REPORT

1. Part of a decision made by the Hearing Panel relating to 57 resource consent applications lodged by 26 consent applicants in the Twyford area has been appealed. This paper seeks Council authorisation for staff to attend Environment Court mediation.

The Appeals

2. On 18 March 2011 a Hearing Panel comprising of two elected officials; Councillors Christine Scott and Ewan McGregor, together with two independent commissioners; Mr Mike Mohi and Ms Janeen Kydd-Smith, issued decisions to grant resource consents for the purposes of taking water for irrigation in the Twyford area of Hastings.

3. Some of those decisions have now been appealed by the consent applicants. The decisions that are the subject of the appeal are known as the “B” decisions and relate to 57 applications for new or increased allocations, which were granted for short term durations (expiring 2014) and subject to conditions restricting taking to when flows are high.

4. These applications were publicly notified in January 2010 and attracted submissions from 11 parties. Submissions were received from the Department of Conservation (DOC), Fish & Game and several tangata whenua groups, including Te Taiwhenua o Heretaunga. All of these submissions opposed applications for new or increased allocations. Submissions in support were received by the Twyford Water Users Group, Hawke’s Bay Fruitgrowers’ Association, Horticulture New Zealand and consent applicants in the area.

5. At the time of writing staff understood that the appellants were planning to lodge a modified appeal document with the Court, to reduce the scope of the appeal. However, the original appeal against the decision on the 57 “B” consents was been lodged with the Environment Court by “Watering Society” (to be incorporated). A copy of the full notice of appeal is attached.

6. The appellants seek that their consents be granted with the following modifications:

6.1. Removal of conditions requiring a higher minimum flow level

6.2. Consent duration be extended

6.3. The review clauses be modified.

7. Council has engaged legal representation from Simpson Grierson and independent barrister Philip Milne.

8. Typically mediation with a court appointed mediator is the next step.

9. The costs involved with defending the decision are significant. More detail about the likely costs will be known after mediation when more is known about the likely scope of the technical and legal evidence that will be required.

10. The costs involved with defending an appeal are substantial, particularly if the appeal proceeds to Court. These costs are not recoverable from the appellants, although there are some circumstances where the Court could award costs. The total costs will depend on the scope of the appeal and the evidence required. As a comparison, however, Council has incurred costs to date of approximately $150,000 relating to the Mahia Wastewater scheme consents which were heard by the Court.

Decision Required

11. Staff are seeking Council’s delegation to attend court mediation, but that Council retains the delegation for signing off on any mediated outcome. Staff suggest that, in their opinion, the appellants would be required to bring forward substantial new evidence at mediation to necessitate accepting a change to the original Panel decision.

12. Should a possible means of settling the appeal be negotiated at mediation, staff will bring a paper to Council outlining the proposed settlement, and at that point seek Council delegation for the applicants’ counsel to draft a consent memorandum for Environment Court approval.

DECISION MAKING PROCESS

13. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

13.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

13.2. Sections 83 and 84 covering special consultative procedure do not apply.

13.3. The decision does not fall within the definition of the Council’s policy on significance.

13.4. No person is directly affected by a decision and any person likely to be affected by the matters discussed will be appropriately involved through Resource management Act processes.

13.5. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

13.6. Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS

That Council:

2. Gives Darryl Lew, Group Manager Resource Management, delegation to enter into Environment Court mediation

3. Requires staff to seek Council approval for a mediated settlement via consent memorandum.

Emma O'Neill

Senior Consents Officer

Malcolm Miller

Manager Consents

Darryl Lew

Group Manager Resource Management

Attachment/s

1 View

Notice of Twyford and Raupare Appeals

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT Investment Company Proposal - Additional Information

REASON FOR REPORT

1. To set out those issues raised by verbal submitters to Council’s proposal to establish an Investment Company and to obtain from Council, agreement on these outstanding issues.

Comment

2. A number of submitters to the Investment Company proposal presented their views verbally to Council at the Strategic Planning and Finance Committee meeting held on Wednesday 18 May 2011. Subsequent to that meeting Council requested that a list of the main themes and issues covered in these verbal submissions be drafted and submitted to this Council meeting for discussion and agreement. This draft list is as follows.

2.1. Taxation Advice

2.1.1 Clarification on deductibility of water harvesting establishment costs

2.1.2 Advice on Inland Revenue Department ruling

2.2. Comment on advantages of gearing investment company balance sheet

2.3. Directors on Investment Company

2.3.1 Mix of commercial / governance / political skills

2.4. Adequate Staff Resourcing for Investment Company

2.4.1 Concern on expertise required

2.4.2 Concern on time required to deliver high standard of support to the Board

2.4.3 Concern over conflict of advice re staff representing Council and Investment Company.

2.5. Return on investment earned by other existing investment companies.

2.6. Ring fencing risk

2.7. Future dividend levels from the Investment Company

2.7.1 Issues of Statement of Corporate Intent

2.7.2 Issues of the levels of return from the Investment Company and the potential affect this could have on Council rating

2.8. Commentary on investment strategy being of major importance

3. It is proposed that once this list is accepted by Council, with or without amendment, that further clarification on these issues will be compiled and made available to Council so assist with deliberations at the Annual Plan submission meetings to be held 8-10 June 2011.

DECISION MAKING PROCESS

4. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

RECOMMENDATION

1. That Council receives this report, makes any amendment to the list if appropriate, and notes that further clarification will be provided to Council on the issues included in the list.

Paul Drury

Group Manager

Corporate Services

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 May 2011

SUBJECT: May 2011 Work Plan Looking Forward

REASON FOR REPORT

1. This report is provided in order to update Councillors about significant work activities under way over the next month in each area of Council.

Group	Area of Activity	Report to go to Council or Committee as indicated
Asset Management	· Review of Heretaunga Plains Scheme	Review options for changes to levels of service for Heretaunga Plains Flood Control and Drainage Scheme – Rivers including cost/benefit analysis of options in May.
	· Asset Management Plan reviews	Reviews of Asset Management Plans commenced. Committee approval for reviewed plans will be sought by November 2011.
	· Capital Works	Upper Tukituki stopbank upgrade completed and Plantation Drain project progressing.
	· Biosecurity	Regional pest management strategy review submissions considered by AM&B Committee in May. Draft document to be prepared.
	· Management of Coastal hazards at Haumoana / Te Awanga	Peer review work continuing. Report on outcome of peer review work will be prepared with HDC staff and presented to Council. Currently expected May/June 2011.
	· Land Management	Operational plan for 2011/12 year approved by AM&B Committee May 2011.
	· CHB District Council Wastewater project	System design and consenting progressing.
	· Mahia Wastewater project	Forest establishment planned for winter 2011.
Resource Management	· Affco appeal mediation, with a Court Appointed mediator, is ongoing
	· Council has received an appeal from a group of 25 Twyford consent holders represented by Helen Atkins. The appeal relates to 57 resource consents.
Strategic Development	· Development of the Water Strategy with input from the Reference Group. More meetings may be required.	Draft strategy to a Committee in July if possible
	· 28 submissions received to public notification of Variation 1 (Rivermouth Hazard Areas) to the proposed Regional Coastal Environment Plan. No further submissions received. Awaiting technical evidence then officers report will be prepared	Hearings to be scheduled mid-late 2011.
	· Work on the drafting of objectives and policies for RPS to incorporate HPUDS/ Stormwater and Wastewater. Aiming to notify by October 2011.	Draft HPUDS plan change to Environmental Management Committee in June or July.
	· Progress Taharua Strategy as per project plan.	Strategy to be developed for informal consultation with stakeholders. To Environmental Management Committee in June or July.
Corporate Services	· Draft Annual Plan 2011/12	Presentations from submitters to Council 8-10 June. Approval for final Annual Plan 29 June 2011.
	· Investment options for leasehold land.	Report to Council in either June or July 2011.
	· Investment Company – all submissions on this proposal to be considered by Council.	8-10 June 2011.
External Relations	· Freshwater Governance and Management – Workshops to develop regional sector actions	May and June 2011.
	· Continuation of discussions with Treaty claimant groups on development of Regional Planning Committee Terms of Reference	Progressing.
	· Preparation of staff responses on Draft Annual Plan	May 2011.
	· Liaison with Massey University to prepare for visit by University of Michigan.	July 2011
Operations/ Water Group	· Ruataniwha Water storage – Work over the next month involves: Evaluation and award of tender for the engineering work for the full feasibility phase; Development of project briefs for the environmental and water resources work elements; Stakeholder and leadership group meetings.	Ongoing
	· Cycleways – Approvals all finalised and preparations of work programmes for sections of trails being prepared. · Work is progressing on final plans for NCC coastal section with work due to be tendered in the next month. · Work continuing on trail construction of Taipo section of trail.	Ongoing
	· Final Pre Feasibility report for Ngaruroro Water storage due for completion by end of May with community meetings scheduled for June.	Ongoing
CE’s Office	Ÿ Draft strategic plan to be developed post 10 May workshop and discussion document.	July.
	Ÿ Freshwater Governance and Management – sector workshops on allocation, limit setting and regulatory agility aligned with NPS for freshwater scheduled for end of May.
	Ÿ Regional sector alignment with “LAWF” (Land and Water Forum) grouping going forward.	Ongoing
	Ÿ Treaty Settlements – further work with Claimant Groups	Ongoing
	Ÿ Investment Portfolio scenarios – further development of detailed business cases for 10 Year Plan.	November.
	Ÿ Options for Economic Development component of VHB	Part of the Economic Strategy review - June

DECISION MAKING PROCESS

2. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

RECOMMENDATION

1. That Council receives the May 2011 Work Plan Looking Forward report.

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Open Spaces Investment Update	7(2)(i) Enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

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