Minutes of Regional Council Meeting

1. Welcome/Prayer/Apologies/Notices

The Chairman welcomed everyone to the meeting, and offered the prayer.

Cr Peter Beaven’s absence on leave was noted.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3. Confirmation of Minutes of the Regional Council Meeting Held on 26 August 2015

Resolution

Minutes of the Regional Council Meeting held on Wednesday, 26 August 2015, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Scott/Dick

CARRIED

4. Matters Arising from Minutes of the Regional Council Meeting Held on 26 August 2015

There were no matters arising from the minutes.

Follow-up Items from Previous Regional Council Meetings

Mrs Lambert provided an update on the status of the follow-up items.

RC37/15

Resolution

1. That Council receives the report “Follow-up Items from Previous Regional Council meetings”.

Scott/Hewitt

CARRIED

Call for any Minor Items Not on the Agenda

Recommendation

That Council accepts the following minor items not on the Agenda, for discussion as Item 16:

1. Otane wastewater (Belford)

2. Napier Pandora (Belford)

3 Mark Lawrence (Belford)

4. GoBus (Hewitt)

Affixing of Common Seal

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 94

DP 13216

CT E4/376

- Agreement for Sale and Purchase

1.1.2 Lot 4

DP 6391

CT D4/1412

- Agreement for Sale and Purchase

- Transfer

1.1.3 Lot 2

DP 19085

CT L2/403

- Agreement for Sale and Purchase

- Transfer

1.1.4 Lot 19

DP 13066

CT E3/400

- Agreement for Sale and Purchase

- Transfer

3696

3697

3700

3698

3699

3701

3702

25 August 2015

1 September 2015

10 Septemer 2015

7 September 2015

16 September 2015

RC38/15

Resolutions

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.

Barker/Scott

CARRIED

Adoption of the Audited 2014-15 Annual Report

Mr Drury outlined the changes made to the draft, and responded to queries relating to councillor attendance, CE remuneration, and HBRIC Ltd financials.

The item was adjourned to allow Councillors time to review the Auditor’s Report, which had been received within 10 minutes of the meeting commencing.

Proxy for the HBRIC Ltd Annual General Meeting

The report was taken as read.

RC39/15

Resolutions

That Council:

2. Notes the date of the Hawke’s Bay Regional Investment Company Limited Annual General Meeting.

3. Agrees that the Chairman of Hawke’s Bay Regional Council, Mr Fenton Wilson, be appointed as Council’s proxy at the fourth Annual General Meeting of the Hawke’s Bay Regional Investment Company Limited to be held at 4.00pm on Monday 12 October 2015, and to vote as proxy holder on behalf of the Council, and that the Deputy Chairman of the Hawke’s Bay Regional Council, Mrs Christine Scott, act as alternate.

Hewitt/Pipe

CARRIED

10.

Recommendations from the Regional Planning Committee

The report was taken as read.

RC40/15

Resolutions

The Regional Planning Committee recommends that Council:

Clean Air Compliance Strategy

2. Approves the proposed actions regarding communication and enforcement, including:

Proposal

Maintain the scheme until target achieved for five years

Continue with education and new behavior change initiatives

Promote dry wood scheme

Maintain Pollution hot line for reporting Nuisance burning (Bylaw 13 Napier and Hastings) and continue with enforcement visits

Circulate all home owners in targeted areas with reminder letter that records show they are likely to have a non-compliant fire and what action to take

Investigate No visible smoke rule

Spotter teams – in house and outsourced

3. Instructs staff to investigate the efficacy of a ‘no visible smoke’ rule.

Petroleum Exploration Proposed Block Offer 2016

4. Lodges revised comments on New Zealand Petroleum and Mineral’s proposed Block Offer 2016 by the 30 October 2015 deadline, following circulation amongst Regional Planning Committee members for further feedback and final approval by Council at its 28 October 2015 meeting.

Nga Hapu o Tutaekuri Hapu Management Plan

5. Acknowledges the role of Tutaekuri Awa Management and Enhancement Plan in the Greater Heretaunga / Ahuriri policy development process under the Resource Management Act.

Reports Received

6. Notes that the following reports were provided to the Regional Planning Committee meeting.

6.1. Regional Planning Committee Annual Activity Report 2014-15

6.2. Matatini 2017

6.3. Forestry Policy Issues

6.4. September 2015 Resource Management Planning Project Update

6.5. May-September 2015 Statutory Advocacy Update.

Scott/Pipe

CARRIED

11.

Recommendations from Corporate and Strategic Committee

Cr Hewitt, as Chairman of the Corporate and Strategic Committee, provided an overview of the items considered at the meeting, adding context around the HB Tourism KPIs and Forestry Investments.

There was discussion around protocols for media releases, and the process of resolutions from committees being double debated at Council when those resolutions are put as recommendations from that Committee.

RC41/15

Resolutions

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 engagement 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.

Councillor Hewitt moved an amendment, seconded by Councillor Graham, being the re-wording of recommendation 5 to read:

5. Agrees to the proposed management approach for the HBRC forest estate being under the delegation of the Chief Executive.

Hewitt/Graham

LOST

The amendment was LOST and therefore the substantive motion was put.

That Council:

Hawke’s Bay Tourism 2015-16 Proposed KPIs

2. Approves the key performance indicators for Hawkes Bay Tourism Ltd for 2015-16; contained in the following table.

	Activity	HBRC KPIs
Consumer Marketing	Deliver an annual consumer marketing plan to ensure Hawke's Bay maximises all media opportunities both paid and unpaid.
	Activity	HBRC KPIs
Brand	Manage and protect the Hawke's Bay brand to ensure the brands integrity in all use by all parties	Manage and protect the Hawke's Bay brand to ensure the brands integrity
Campaign	The development and delivery of an annual media plan that is based around a Seasonal Campaign Strategy	Campaign activity will deliver Increased website traffic to www.hawkesbaynz.com by 50% annually
		Increase social channel footprint within Facebook, Twitter, Instagram. Each by 50% per annum
PR/Media	The delivery of the Hawke's Bay Tourism International and Domestic Media Programme	Host a minimum of 30 international and domestic media per annum
		Deliver stories and Hawke’s Bay content to over 100m people per annum
		Coverage received will have the equivalent EAV of $10m per annum
Digital	The delivery of a strong digital platform to share Hawke's Bay content and information for visitors.	The development of one visitor website for Hawke's Bay. To be completed by June 2016.
		Increased website traffic to www.hawkesbaynz.com by 50% annually
		Increase social channel footprint within Facebook, Twitter, Instagram. Each by 50% per annum
		Deliver 60,000 leads directly to member websites in year one. Grow by 50% per annum.
Collateral & Promotional Material	Deliver a series of promotional material both digital and printed to serve the needs of visitors and in line with the overall brand positioning for Hawke's Bay	Produce and deliver the annual Hawke's Bay Visitor Guide. Produce the Hawke's Bay Trails Map as well as other regional collateral as required.
Content	Deliver a consumer content strategy for all channels used by HBT	Pull together a content calendar for year round seasonal content for all cities and districts
Research	Deliver an annual research programme to monitor and measure the regions visitor performance	Provide the industry with up to date data pertaining to the visitor industry in Hawke's Bay. This will be distributed via the industry website.
Events	Deliver the Regional Events Strategy	Implement the Regional Events Strategy via joint collaboration with all Councils, Sport Hawke's Bay and other relevant agencies. Key outcomes - a regional events calendar updated, a well balanced portfolio of events year round, off-season events developed
	FAWC! Food and Wine Classic Hawke’s Bay	Deliver both Summer and Winter F.A.W.C! FAWC! to deliver at least 40-50% of participants from out of town each year. Continue to grow the event in terms of numbers -10,000 tickets available by 2018.
	Activity	HBRC KPIs
	The Big Easy	Deliver The Big Easy at Easter to ensure the event captures at least 40-50% of participants from out of town each year. Continue to grow the event to 2000 participants by 2017.
	Hawke’s International Bay Marathon	Deliver a world class event alongside organisers Lagadere for three years. This will involve a starting base of 2500 competitors in year one to grow to 4,000 by 2018.
Trade Marketing	Deliver the annual trade marketing plan to ensure Hawke's Bay is well represented within the distribution channel both offshore and in New Zealand.
International Marketing Alliances	Maintain membership of both Explore Central North Island Alliance which promotes the Pacific Coast Highway and Thermal Explorer Highway. (8 North Island regions) and Classic New Zealand Wine trail Alliance (4 regions) to ensure international presence for Hawke’s Bay.	Deliver international trade initiatives alongside other regional partners. Attend a minimum of 3 international trade shows (see below) and participate in growing the touring routes Hawke’s Bay is part of. Full international focus of activity and all directed at the travel agent community.
Trade Famils	Deliver an international trade famil programme to educate the travel industry about Hawke's Bay with the aim to sell more of the region via the Distribution Channel	Host a minimum of 50 travel agents, product managers and inbound tour operators in the region annually
Digital	Deliver and maintain a Tourism Industry Website for operators within Hawke's Bay. www.hawkesbaytourism.nz	Keep updated the industry website with relevant press releases, research, presentations and industry news.
Workshops	Conduct a Workshop Series to educate local operators	6 - 10 workshops to be held annually. Topics to include new markets, market segments, and social channels
Trade Shows	Represent Hawke's Bay and its tourisms sector at a range of leisure/FIT (free and independent travellers) trade shows throughout the year in New Zealand and overseas	HBT to attend the following trade shows annually; TRENZ and Explore. HBT to represent Pacific Coast Highway (Explore Central North Island Alliance) at Kiwi Link events in China, USA, UK.
Business Tourism Events	Represent Hawke's Bay and the Conference and Meetings sector at a range of business trade shows throughout the year in New Zealand	HBT to attend the following business trade shows annually; Meetings and Convene
Tourism Awards	Deliver the annual Hawke's Bay Tourism Industry Awards	Generate at least 20 entries per annum into the Hawke's Bay Tourism Awards (September each year)
Tourism Development	Identify key tourism development projects to encourage economic growth to the region	Begin scoping of tourism opportunities in Wairoa/Waikaremoana. Work with local iwi to understand Maori tourism product - the gaps and opportunities
	Activity	HBRC KPIs
Markets	Develop a clear plan for China tourism to Hawke's Bay	Develop and maintain Hawke's Bay content for the China market - to be distributed via Weibo. Build a China Marketing Group to develop join marketing opportunities
Membership	Manage and grow the annual membership programme of the Hawke’s Bay Tourism Industry Association
	Deliver an annual membership programme in order to generate additional funds for the organisation and develop a strong well educated and coordinated industry.	Generate a minimum of $100,000 in revenue from the annual membership programme.
Stakeholder Management	Deliver quarterly reports to the Hawke's Bay Regional Council	4 x Quarterly reports delivered as well as Financials
Financial Management	Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC	Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC
Staff Management	Manage all staff and conduct annual reviews	Annual reviews it be conducted for all staff. Training needs worked through and planned to improve staff skills

Forestry Investments

3. Agrees that staff should progress the development of a concept for a walking/mountain bike track network within the Waihapua property, with the potential to link through Tangoio and to Tutira, in collaboration with interested groups and neighbouring properties.

4. Agrees that HBRC enter into an Agreement with a community group for the establishment of a mountain bike park within the Waipukurau Forest for public recreation and enjoyment for the period of the current CHBDC wastewater consent (expiring 2030), and delegates authority to the Interim Chief Executive to determine the terms and conditions of such an Agreement, with the terms of the final agreement to be brought to Council for ratification.

5. Agrees to the proposed management approach for the HBRC forest estate being:

5.1. Pruning up to 50% of Pinus Radiata stands to give the option of pruned logs in the sales mix.

5.2. Manage Eucalyptus regnans and E. fastigata and E. maidenii with a low cost regime of thinning only, with some targeted pruning of extremely productive areas to provide the option of higher grade saw logs at harvest

5.3. Prune and thin between 80-100% of other species to provide high quality timber.

6. Agrees to the development of a carbon sales protocol to allow informed and timely carbon trading decisions according to an agreed risk profile, and requests staff to progress its development for Council consideration during 2016.

7. Notes the significant returns projected for harvesting the Tutira pine forest between 2019 and 2022 and that these returns have been included in HBRC LTP 2015/25 financial forecasts.

8. Notes that on average over a full rotation the estimated long term return on HBRC’s investment in the forest estate is expected to be around 6-7% for full rotations (subject to variations in prices and harvest yields). The returns from Manuka honey are expected to be greater than 6% - 7% which reflects the limited further expenditure required on these crops.

9. Notes Council’s continued direct ownership of the forest estate will provide the following benefits:

9.1. Continued integrated Council management of the open space policy on these lands together with achieving a reasonable positive return from their commercial operations

9.2. Significant financial returns over the long term; and

9.3. These financial returns will be received free of income tax whilst the forest estate continues to be directly owned by the Council.

Reports Received

10. Notes that the following reports were provided to the Corporate and Strategic Committee meeting.

10.1 HB Tourism 2014-15 Year End Report

10.2 Implications of New Health and Safety Legislation

10.3 Human Resources 2014-15 Annual Report

10.4 Gravel Resource Inventory and Gravel Demand

10.5 Recommendations from the Finance Audit and Risk Sub-committee

10.6 September 2015 Public Transport Update

Dick/Scott

For: Dick, Graham, Scott, Pipe, Barker, Belford, Wilson

Against: Hewitt

CARRIED

12.

Management of Heretaunga Plains Groundwater

Mrs Lambert provided an overview of the report and the legal advice sought by resolution of Council in response to issues raised concerning sustainability of the groundwater in Heretaunga plains through a notice of motion from Councillor Beaven.

Mr Malcolm Miller explained the conclusions contained in the legal advice received from Simpson Grierson.

Mrs Lambert, in response to a query, re-iterated the legal opinion that there is no legally defensible justification for the proposed approach as there is no scientific evidence that the resource is being unsustainably managed, or is under threat.

Discussion also covered review clauses in resource consents in relation to allocation limits and future plan change provisions[CS1] .

RC42/15

Resolutions

That Council:

Councillor Belford moved an amendment, seconded by Councillor Barker; being to amend recommendation 2 and add recommendation 3 to read:

2. Receives the legal opinion, accepts that the resolution of 26 August 2015 in respect of this matter is not able to be implemented.

3. Requests further exploration of suitable options that could indicate a precautionary approach to future consents regarding the HP aquifers to be completed by a working party consisting of the 3 councillor reps to TANK, legal counsel and appropriate staff, with a recommendation to the next council meeting.

Belford/Barker

For: Belford

Against: Dick, Hewitt, Graham, Scott, Pipe, Barker, Wilson

LOST

Councillor Dick moved a further amendment, seconded by Councillor Hewitt; being the addition of recommendation 3:

3. That Council requests a further report from the Group Manager Resource Management on the matters raised in the Simpson Grierson legal opinion.

Dick/Hewitt

CARRIED

The Chairman then moved the substantive motion, being:

That Council:

2. Receives the Simpson Grierson legal opinion, accepts that the resolution of 26 August 2015 in respect of this matter is not able to be implemented and notes that there is provision in the RMA Plan Change process under way in the Greater Heretaunga catchment to deal with the matters raised in the original notice of motion.

3. Requests a further report from the Group Manager Resource Management on the matters raised in the Simpson Grierson legal opinion.

Graham/Scott

CARRIED

The meeting adjourned at 10.30am and reconvened at 10.45am

14.

Monthly Work Plan Looking Forward through October 2015

There was discussion traversing:

· Public concerns around the functioning of the kiln at PanPac and issues being worked through with HBRC compliance and Public Health Unit

· Westshore renourishment material now sourced from parts of the Ngaruroro and possible cost implications with transportation being from farther away

· Section 36 charges and charging methodology

· Te Mata mushrooms prosecution

· Biodiversity Strategy implementation progress and timelines

RC43/15

Resolution

1. That Council receives the Monthly Work Plan Looking Forward Through October 2015 report.

Graham/Dick

CARRIED

15.

Chairman's Monthly Report for September 2015

The Chairman tabled his report (following) and provided additional detail in relation to the RMLA conference, Whangawehi and the Mayoral Forum/ Intersectoral Leadership Group.

General Comments

· RMLA Conference – on the theme Matauranga Maori - was very worthwhile and one of the highlights was “The collision of tribal law and colonial law in the RMA”. He recommended councillors access this paper by the Hon Justice Joe Williams.

· Whangawehi – a nationally significant project that Minister Smith sees as a solution to other catchments. Also the signing of landowners including Sir Michael Faye is another important step in the process.

Chaired Meetings

26/8/15 Regional Council

16/9/15 Regional Planning Committee

18/9/15 Hawke’s Bay Local Government Leaders’ Forum

23/9/15 Tenders Committee

Other Activities

26/8/15 Digital Enablement Plan Consultation Session/Workshop

27/8/15 Institute of Directors Breakfast – guest speaker Nicky Hyslop, Irrigation NZ

27/8/15 Nga Whenua Rahui Fund - 25th Anniversary in Gisborne

28/8/15 Governance and Strategy Advisory Group meeting

1/9/15 Min. Nick Smith at Whangawehi

4/9/15 Regional Sector Group Meeting with Chief Executive

7/9/15 Climate Briefing

8/9/15 Meeting with Toro Waaka and Chief Executive

8/9/15 HPUDS meeting

9/9/15 Council field trip – Archives Centre Fielding and Horizons Regional Council with Councillors Debbie Hewitt, Dave Pipe, Christine Scott, the Chief Executive, and other staff involved in care of our archives.

17/9/15 HB Tourism Awards with Chief Executive

19/9/15 Whangawehi signing with landowners Coop family, Bowen family and Sir Michael Faye

21/9/15 Exercise Te Matau-a-Maui - Earthquake Consequences Workshop

21/9/15 Clifton to Tangoio Coastal Hazards Joint Committee

22/9/15 Finance, Audit & Risk Sub-Committee

22/9/15 Meeting with Neil Kirton – Hohepa

23/9/15 Corporate and Strategic Committee

24/25/9/15 RMLA Conference with Cr Scott

Priorities in Month Ahead

· Working with the region’s Mayors for the benefit of Hawke’s Bay following on from the amalgamation decision

RC44/15

Resolution

1. That the Chairman's Monthly Report for September 2015 be received.

Scott/Pipe

CARRIED

16.

Minor Items not on the Agenda

Item	Topic	Councillor
1.	Otane wastewater Update on where the resource consent renewal process is at	Cr Belford
2.	Napier Pandora NCC application to (use and develop the bed of a sea) install concrete anchors on the seabed for Wibit inflatable water toy (floatable structure for kids to swim to and play on) at Pandora pond.	Cr Belford
3.	Mark Lawrence seawall Mr Lawrence seeking (and received) advice in relation to dismantling the seawall erected on the beach in front of his Haumoana property	Cr Belford
4.	GoBus Allegations made by unsuccessful tenderer (Nimons), that lowest price enabled by successful (GoBus) tenderer under paying staff Tender awarded as GoBus had highest quality rating and best price from the Tender Assessment process	Cr Hewitt

Adoption of the Audited 2014-15 Annual Report

Having reviewed the Auditor’s Report provided, councillors confirmed their readiness to adopt the 2014-15 Annual Report.

RC45/15

Resolution

1. Adopts the 2014-15 Annual Report, under Section 98 of the Local Government Act 2002, and authorises the Chairman and Chief Executive to sign the Annual Report on behalf of Council.

Scott/Dick

CARRIED

13.

HBRIC Ltd September 2015 Update

Mr Sam Robinson, Mr Jim Scotland and Mr Andrew Newman spoke to the HBRIC Ltd update report, highlighting:

· Design & Construction price re-validation process, for the dam and both the primary and secondary water distribution networks, should be concluded by mid October to enable presentation of the D&C condition precedent to Council’s October meeting.

· Four investors in due diligence process and delivery of their terms and conditions is expected within the next week.

· HBRIC Ltd aiming to present the final business case ready for Deloitte to peer review by 28 October.

· Water Uptake – Duncan Macleod (Commercial Manager, HBRIC Ltd) provided explanations of what the different ‘categories’ mean in relation to the position of landowners in the ‘contracting pipeline’ process as per the table in the report.

· Amount of ‘signed’ water, and options to deal with shortfall if there is one at 11 November, the final date by which farmers need to have signed their Water User Agreement

· Forecast water uptake – Duncan Southwell (BNZ Advisory) provided an overview of the reforecast uptake scenarios and underlying assumptions used including commodity pricing, hedging behaviour and land use. Castalia used more ‘approximate’ information while the new model is able to use more accurate data at actual farm scale level.

· DoC land transfer process and the acquisition of other land in the dam footprint.

· Smedley Station is run by the Public Trustee, bequeathed to the Crown by the original owners and the land subject to the swap to be bought by HBRIC, is currently being farmed.

RC46/15

Resolution

1. That Council receives and takes note of the “HBRIC Ltd September 2015 Update” report.

Barker/Scott

CARRIED

The meeting adjourned at 12.34pm and reconvened at 1.00pm

17.

HBRIC Ltd Financial Structuring

RC47/15

Resolution

1. That Council excludes the public from this section of the meeting, being Agenda Item 17 HBRIC Ltd Financial Structuring with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being as follows:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
HBRIC Ltd Financial Structuring	7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to 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.

2. That Mssrs Sam Robinson, Jim Scotland, Andrew Newman and Duncan Southwell are present for the item as Directors of and Advisors to HBRIC Ltd, the party seeking Council’s decision on this matter and authors of the report.

Dick/Scott

CARRIED

The meeting went into public excluded session at 1.10pm and out of public excluded session at 2.10pm

Closure:

There being no further business the Chairman declared the meeting closed at 2.10pm on Wednesday 30 September 2015.

Signed as a true and correct record.

DATE: ................................................ CHAIRMAN: ...............................................