Agenda of Regional Council Meeting

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

SUBJECT: Significant Organisational Activities through July 2020

Reason for Report

1. The commentary following is for Councillors’ information, to highlight significant areas of Council activity. Significant Council resources are being directed toward various initiatives which reflect the Council’s evolving agenda and it is considered important that Council is consistently informed on progress in areas that have or may create a high external profile.

Whole of Region
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Technology for tangata whenua representatives on Māori and Regional Planning committees	1. iPads have arrived for four tangata whenua who don’t have access to a device for receiving electronic meeting documents. Once devices are set up they will be loaned to tangata whenua, along with training on the Stellar app used for managing meeting documents, and email and calendar management as needed.	Corporate Services (IT) and OCEC (Governance)
2020 Council Meetings Schedule	2. Schedule for the remainder of 2020 was confirmed after the move to Level 1, with the addition of extraordinary meetings and workshops including (to date): - Tenders Committee, 2pm 24 June - Council Asset Management Strategy, 2pm 1 July - FARS Workshop, 9am 8 July - Annual Plan Submissions Hearing, 9am 15 July - LTP workshop 3, 9am 22 July - Extraordinary RPC meeting, 1.30pm 22 July - HB 3 Waters Review workshop 1, 9am 5 August - HB 3 Waters Review workshop 2, 9am 20 August - HB 3 Waters Review workshop 3, 9am 4 September - Coastal Hazards Funding workshop, 1pm 4 Sept - Extraordinary Regional Council meeting 11.30am 15 Sept.	OCEC Governance
Risk Maturity	3. Phase one of the risk maturity roadmap endorsed by Corporate & Strategic Committee on 10 June, so the following milestones will be delivered to the 12 August FARS as part of phase one: - Draft Risk Management Policy - Draft Risk Management Framework, and - Revised List of Enterprise Risks	OCEC Risk and Assurance
Audit Programme	4. The FY19/20 annual internal audit will be closed out at the FARS meeting to be held on 12 August. This will include presenting closeout reports of four individual audits that formed part of the FY19/20 annual internal audit plan.	OCEC Risk and Assurance
Regional Business Partner Programme	5. The team continues to manage demand from the business community for support during Level 1. The free virtual workshops will end on Friday 19June & have seen 1417 participants to date with the Business Hub, other training providers and national pre-recorded webinars filling that gap as standard Business As Usual recommences. 6. RBP is engaging with 607 Hawke’s Bay businesses through the “1:1 business support to link with expertise” COVID-19 response mechanism, having issued 428 Capability Vouchers worth $825,972 to date (average voucher value $2,450). The original HB regional voucher funding pool was $493k which was repeatedly topped up on request. 7. Cabinet paper seeking additional funds for the RBP programme was discussed 17 June & regions expect to hear the result on 22 June. Grant Robertson has publicly stated that he supports it and the paper is going through the ministerial approval process. It is envisaged that the additional funding will remain at 100% subsidy and the regional allocation will encompass additional resource until September; highlighting that there is a pipeline of voucher demand ($120k from HB businesses) awaiting the new allocation of funds. The team expects a strong upturn in demand as Comms are released on the injection of additional funds.	OCEC RBP
People & Capability (Inc Health& Safety)	8. Health and Safety team actively managed and supported the transition of all HBC staff back to work. Ongoing maintenance of staff Covid-19 testing continues. 9. Successful ATV training of all Wairoa staff in line with the new ‘Off Road Rural Transport” policy. 10. 4WD training booked for 26/5/20 for some Works Group staff with further dates scheduled in July to complete the rest. 11. Preparation underway for a “Driving Awareness” campaign in July for all HBRC staff. 12. Annual wellbeing workplan being updated and future activities increased. 13. Health and Safety Governance Charter re-signed by Council for a further 12 months. 14. Both the Officers and Works Group Collective Employment agreements are due to be reviewed at the end of June. The team have started conversations with the unions as they approach an official bargaining process. 15. As we approach the end of the financial year, the team are supporting Managers and staff with the end of year performance appraisals and any associated remuneration changes. 16. Currently 14 vacant roles under recruitment from entry level through to management tier. Achieved two placements into pole harvester roles with Work and Income clients, with the potential of 10-30 more candidates (subject to PGF project funding approval).	OCEC People & Capability
Outstanding water bodies plan change (PC7)	17. Seeking Hearing Panel appointments at 22 July extraordinary RPC meeting.	Strategic Planning Policy & Planning
Regional Land Transport Plan	18. HB Transport Study which will form the base for the Regional Land Transport Plan is well underway, with a number of workshops held to develop the programme business case.	Strategic Planning Transport
Marine and Coast Science Review	19. An external review of the Marine and Coast Science programmes has been completed and report is available on the HBRC website.	Integrated Catchment Management Marine and Coast
Coastal Spatial Mapping of Subsurface Oxygen Levels: Hawke Bay	20. Completion of an external report that investigates the spatial extent of low levels of dissolved oxygen in the coastal waters of Hawke’s Bay using an unmanned glider. The report is available on our website.
HBMaC/ Sustainable Seas collaboration	21. The Marine and Coast team, and HBMaC are working with Challenge scientists on the drivers of ecosystem health and where goal gaps exist as part of a Sustainable Seas National Science Challenge. An overview of the project can be found here
Erosion control/riparian plants distribution and planting	22. Late June, through July and August the Catchment Delivery staff will be distributing the range of poles and plants for this planting season. This includes work at the HBRC pole nursery to cut the poles ready for distribution.	Integrated Catchment Management Catchment Delivery
Predator Free Hawke’s Bay	23. Due to COVID-19 the planned two day workshop hosted by PFHB with PF2050 Ltd for all currently funded PF projects as well as some new projects in the pipeline was postponed. Key technical talks were hosted online over the lockdown period which was valuable. PFHB and PF2050 are now working through what a newly planned workshop might look like. This is a valuable opportunity for the projects to share knowledge and experiences as we all navigate the challenge to becoming predator free. 24. The Whakatipu Māhia Trust Deed has been signed, and the first meeting of the Whakatipu Mahia Trust will get underway. This trust will drive outcomes led by the community for the community and the enhancement of the Māhia peninsula. 25. Bait station installation of phase one 5,500 ha is complete	Integrated Catchment Management Biosecurity/ Biodiversity

Northern Catchment
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Mohaka Plan Change	26. Staff have re-engaged with Ngāti Pāhauwera (post-Covid) to reschedule the pan-iwi hui.	Strategic Planning Policy & Planninng
Nuhaka River Road	27. WDC received PGF and shovel ready project. QRC have been appointed as the principal contractor. HBRC act only as an advisory for the design.	Asset Management Regional Projects
Area Manager Activity	28. Compliance issues at Māhanga have been sorted. Meeting held on site with the community to discuss moving forward. Meeting scheduled with WDC and DoC to look to a long term solution. 29. Currently supporting the work we are involved in with the PGF shovel ready projects WDC were successful in receiving funding for – Nuhaka River Road (Ecological Impact Assessment terms of reference created and to be carried out this coming month), Te Rahui Bridge – working closely with project team to ensure alignment with Whakaki FIF weir project.	Integrated Catchment Management
Wairoa District Council Wastewater	30. Wairoa District Council discharged wastewater from the Wairoa WWTP into the Wairoa River on 14 April 2020, outside of its consented discharge time limits (6pm-6am). The discharge was of approximately 100m3 of treated effluent and occurred between the hours of 06:00am & 07:55am. The discharge is automatically programmed to close the valve outside of the consented tide and time constraints. However, on this occasion there was a fault in the communications system resulting in the valve remaining open until staff were able to respond. Alarms are sent to key staff however these are mobile alarms and the staff in this instance were out of mobile reception so did not receive the alarms until arriving at work. The discharge was promptly shut off as soon as it was identified and HBRC were informed. 31. Additional alarms have been set up to avoid a similar situation in the future. Alert level 4 restrictions were in place at the time of the discharge meaning that it was unlikely to be anyone on the water at the time or for the days following and the discharge met the required treatment standards. HBRC issued an infringement fee of $750.	Regulation Compliance & Enforcement

Central Catchments

Project / Activity Description

Significant Upcoming Milestone(s)

Group /Team or Section

TANK plan change (PC9)

37. TANK Plan has been notified and an extension to the submission period agreed under delegated authority to the 14 August.

Strategic Planning

Policy & Planning

Ngaruroro and Clive Rivers – Application for Water Conservation Order

38. Pre-hearing expert witness conferences were held in March regarding hydrology, water quality, avifauna, fish and planning.

39. Mediation is scheduled for 3 days, commencing 23 June.

40. Hearings are tentatively scheduled for 2 weeks commencing 31 August.

Heretaunga Plains Scheme review

41. Hydrodynamic modelling for Tutaekuri being constructed - to model 100yr, 200yr and 500yr flood scenarios, incorporating climate change. Tuaekuri model nearing completion and Ngaruroro river underway.

42. Communication and consultation plan being discussed with internal stakeholders

43. Maori committee supported the project and the project team to follow up with the specific Iwi groups for further communication.

44. Land matters being investigated for future engineering options.

Asset Management

Regional Projects

Flood Control Schemes

45. Review of functionality, level of service provided, equity and accuracy of rating areas for the flood control schemes. HP level of service approximately 70% complete. Esk Catchment review commenced and progressing well.

46. Asset Management Plans and framework review. Draft report and draft plans in place awaiting final review.

Asset Management

Engineering

Clive River Dredging

47. Deed of Land lease agreement sent to landowner for acceptance.

48. Methodology for land based discharge requested by contractor.

49. Resource Consent underway

Asset Management

Regional Projects

Lake Tūtira

50. Kahakanui Stream Bridge – detailed design complete. Tender document due for completion in August. Construction is planned for October.

Asset Management

Regional Projects

Gravel Management

51. Maraekakaho access road- Tender evaluation completed and awaiting for the tender committee. Detailed design completed. Construction planned for October 2020.

52. Global gravel extraction consent conditions amended following submissions, and staff are meeting with all submitters to attempt to resolve issues to avoid the need for a Hearing.

53. Gravel allocation 2020-21 programme completed and gravel extraction report available.

Asset Management

Regional Projects/ Schemes

Heretaunga Plains water take renewals

54. Takes from the Heretaunga Plains unconfined aquifer (approx. 200 lodged) expired 31 May 2018 and are being exercised under s124. These are being processed as a group, as requested by applicants. Report on the individual and combined stream depletion effects now received. Draft report being prepared for discussion with parties. Decision on notification pending.

Regulation

Consents

Public Transport

55. Significant changes made to bus services during lockdown, with free services continuing until early August. New ticketing system will commence operation at the same time as a flat fare scheme is introduced

Strategic Planning

Public Transport

Bayview/ Whirinaki track

56. Preliminary alignment and land matters under investigation, with initial communication with affected parties under way, working with NCC/HDC. Awaiting confirmation on HBRC contribution and budget.

Asset Management

Regional Projects

NZCT Priority Project Ahuriri Underpass Flooding Safety Issues

57. Working with NZTA around solutions – seawall plan is being finalised by OPUS for Southern End. Funding deficit, asking balance from NZTA. Due to be completed by June 2020. Detour for Northern End using Watchman Rd, signage being installed in Feb/March.

Asset Management

Open Spaces

Te Whanganui-ā-Orotu / Ahuriri Estuary

58. A SOURCE model has been developed for Te Whanganui-ā-Orotu / Ahuriri Estuary, which models flow pathways and constituents in order to provide information to assist in management of the catchment inputs. The report has been finalsied and is available on the HBRC website, here.

Integrated Catchment Management

Project Manager Environmental Hotspots

Marine and Coast

NCC / HBRC Westshore tidal gates and NCC Lagoon Farm stormwater discharge consents

59. These applications have been limited notified and are open for submission by the notified parties.

Regulation

Consents

Air discharges

60. The Pollution Response and enforcement continue to receive a large number of call in relation to smokey fires since the beginning of the restrictions in the burning season 1 May to the 31 August. The graph shows we have ramped up our compliance enforcement effort significantly in the last three years after several years of education.

61. Last year we took 177 call to the hotline re smokey fires for the whole period May to August of which we infringed 66. The infringement or instant fine typically being $300. Some of those calls (177) will have come from separate individuals about the same fire.

62. A year to date comparison with where we are at with this time last year, so far shows we have had a decrease from 86 last burning season to 54 at the time of writing. We issued 12 infringements the week of the 15 June in relation to air quality issues. With some more serious case pending review by the Enforcement Decision Group.

Burning Stats 2019 YTD (1 May 2019 – 16 June 2019		2020 YTD (1 May 20- 16 Jun 20)
Burning Indoor	21	13
Burning materials (not veg)	20	7
Burning Veg	45	34

63. We have a prosecution sentencing decision pending for one serious incident last year that involved burning of prohibited items. An individual can receive a fine of up to $300,000 and a company up to $600,000.

64. Update on enforcement action taken against NCC, HDC & WDC wastewater discharges are provided under each catchment

Regulation

Compliance & Enforcement

Napier City Council Wastewater

65. Napier City Council currently has two leaks in the outfall pipe associated with the wastewater treatment plant at Awatoto. The main leak is at 700m offshore at a bespoke fibreglass joint from time of installation. The joint has degraded and is currently leaking through small gaps in the join seal. This leak was first discovered in August 2018 during routine inspections of the outfall pipe and NCC has been working towards a solution since then. NCC has engaged consultants to provide repair options for the leak without further damaging the pipe. While repair options are being finalised, further additional ocean monitoring of the leak, the receiving environment and additional coastal monitoring is taking place to determine if there are any wider impacts on the receiving environment. The sampling data has been reviewed by HBRC scientists and there doesn’t appear to be having any wider impact beyond a zone of approximately 100m.

66. In early May 2020, another leak was identified during routine monitoring at 630m offshore and is a result of failure of a previous repair. Several meetings have been held between HBRC and NCC, most recently in January and February 2020 prior to Covid-19 restrictions to discuss repair options and timelines. HBRC have made it clear that we expect both leaks to be repaired by October 2020 and NCC has agreed that they will be able to undertake a repair by this date. Additionally they have been undertaking a review of the entire wastewater infrastructure and will be providing a review of future options in July 2020 including options to bring forward to full replacement of the outfall pipe given the number of leaks over recent years.

67. On 6 June 2020, HBRC served an abatement notice on NCC requiring it to cease the unauthorised discharge (leaks) by the 30th of October 2020. This was to ensure that no slippage occurs, regular dialogue continues with Napier City Council as to update progress and emergency continuity plans. At a recent Council meeting NCC reaffirmed that repair is the priority and the consenting process should be used as to allow for increased monitoring of any leaks if repairs are not able to be undertaken. NCC has been undergoing a full review of their wastewater infrastructure including replacement options for the outfall which will begin to be investigated from the 2020-21 year.

Regulation

Compliance & Enforcement

Hastings District Council Wastewater

68. Hastings District Council discharged approximately 38m3 of untreated domestic sewage/stormwater to the Te Kahika Stream in April 2020. This was as a result of root intrusion into the HDC operated sewage line causing a blockage and subsequent overflow. HBRC issued an infringement notice of $750 for the discharge and a subsequent abatement notice requiring HDC to cease discharging from this section of the network and to undertake remedial/upgrade works on the section to prevent any future overflows to the stream. HDC have begun an investigation into replacement options for this section as root intrusion is likely to be causing significant blockages within this part of the network.

Regulation

Compliance & Enforcement

Te Mata Park

69. Working with HDC to complete safer off-road section parallel to Waimarama Road, for all trail users. Expected completion December 2020.

Asset Management

Open Spaces

Hawea Historical Park / Karamu Stream Diversion

70. Draft park management plan prepared and under review. Management committee formed with monthly meetings underway.

71. Carpark construction nearing completion.

Asset Management

Open Spaces

Regional Assets

Waitangi Regional Park

72. Earthworks for future marquee nearing completion minor amendments underway.

73. Overflow car park to be constructed in August 2020

74. New Waikahu wetland functioning well as a biodiversity habitat.

Asset Management

Regional Projects

Southern Catchments
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
CHBDC Wastewater discharge consents	75. Actions proposed by CHBDC for municipal wastewater discharges include further resource consents for new and amended discharges. These are anticipated to be lodged soon.	Regulation Consents & Compliance
Production land use consents - Tukituki catchment	76. 13 complete production land use activity consents have been lodged and approximately 130 pre-applications have been received to date.	Regulation Consents & Compliance
Tukituki Plan Change 6A	77. Application has been made to Minister for the Environment for a Streamlined Planning Process under RMA to recalibrate Table 5.9.1D (of the Regional Resource Management Plan) using OverseerFM and staff are now liaising with MFE officials on next steps for the application. 78. Seeking Hearing Panel appointments at extraordinary RPC meeting on 22 July.	Strategic Planning Policy & Planning

Decision Making Process

2. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That the Hawke’s Bay Regional Council receives and notes the Significant HBRC Activities through April 2020 staff report.

Authored by:

Drew Broadley

Community Engagement and Communications Manager

Jenny Brown

Principal Business Advisor - RBP

Vicki Butterworth

Cycle Network Coordinator

Desiree Cull

Strategy and Projects Leader

Peter Davis

Manager Environmental Information

Ceri Edmonds

Manager Policy and Planning

Russell Engelke

Team Leader Open Spaces

Dean Evans

Manager Catchments Delivery

Craig Goodier

Team Leader Engineering

Martina Groves

Acting Regional Asset Manager

Nathan Heath

Catchment Manager (Wairoa/Mohaka)

Dr Andy Hicks

Team Leader/Principal Scientist Water Quality and Ecology

Dr Kathleen Kozyniak

Principal Scientist (Air)

Campbell Leckie

Manager Catchment Services

Dr Barry Lynch

Team Leader/Principal Scientist (Land Science)

Anna Madarasz-Smith

Team Leader/Principal Scientist Marine and Coast

Malcolm Miller

Manager Consents

Thomas Petrie

Project Manager Environmental Hotspots

Brendan Powell

Manager Catchments Policy Implementation

Anne Redgrave

Transport Manager

Dr Jeff Smith

Manager Scientist

Jolene Townshend

Senior Advisor Integrated Catchment Management

Nick Zaman

Manager Compliance

Mark Heaney

Manager Client Services

Leeanne Hooper

Governance Lead

Helen Marsden

Risk and Assurance Lead

Mark Mitchell

Team Leader/Principal Advisor, Biosecurity/Biodiversity

Approved by:

Liz Lambert

Group Manager Regulation

Jessica Ellerm

Group Manager Corporate Services

Tom Skerman

Group Manager Strategic Planning

Chris Dolley

Group Manager Asset Management

Iain Maxwell

Group Manager Integrated Catchment Management

James Palmer

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

Subject: Strategic Plan Adoption

Reason for Report

1. This item presents the Strategic Plan 2020-2025 for Council adoption.

Officers’ Recommendation(s)

2. Council officers recommend that Council adopts the Strategic Plan 2020-2025 as proposed, and attached.

Background

3. The Strategic Plan is a non-statutory document to define the organisation HBRC aspires to be and sets the organisation’s objectives for the next five years and beyond. It provides the strategic direction leading into the Long Term Plan.

4. A “lite” review or refresh of the 2017-21 Strategic Plan was initiated after the election of the new council in October 2019. It was agreed by Council that a refresh was appropriate to inform the next Long Term Plan as the Plan is a five year strategy document and we are only mid-way through, it has strong support from staff, there has been no material change to our largely statutory functions, and that an extensive review of the Strategic Plan will compress subsequent phases of the LTP project, in particular the time available to review existing levels of service and to develop, assess, and prioritise business cases to implement strategic intent.

5. Inputs into the refresh have included:

5.1. Priorities raised by new and returning councillors at the strategic planning workshop at East Pier on 21 November 2019

5.2. A review of what has changed in the macro-environment since the Strategic Plan was adopted three years ago.

5.3. Feedback from discussion and the “bus stop” exercise held at the council workshop on 11 February 2020

5.4. Feedback from discussion and the “bus stop” exercise held at the Māori Committee on 4 March 2020

5.5. Presentation to the Council on key themes arising from the Māori Committee on 11 March 2020.

5.6. Work done on the Climate. Smart. Recovery Plan related to the Covid-19 pandemic.

5.7. Feedback on the designed version with additions post COVID-19 at the Council workshop on 17 June 2020.

Key changes to the document

6. The resulting changes from the refresh were to:

6.1. More explicitly infuse climate change throughout the document to reflect the accelerating political and community expectations for climate change action. This includes wording changes to the vision and focus areas and a new row in the intervention logic matrix to describe how each focus area relates to climate change.

6.2. Acknowledge the contextual effect of COVID-19 and an extended drought, and a Climate. Smart. Recovery. being the response to subsequent economic conditions.

6.3. Further refine council’s vision to focus on the environment and people.

6.4. Align targets for freshwater quantity and quality limits and farm plans to new national targets set in the Government’s Freshwater Reform Package.

6.5. Align the carbon neutrality target to the national target of 2050.

6.6. Explicitly reference the kaitiakitanga role of tāngata whenua and cultural connection with water.

6.7. Renewed focus on water security (vs water certainty) in light of climate change.

6.8. Clarify HBRC’s role in goals that require a joined-up approach, e.g. carbon neutrality, coastal hazards etc.

7. Changes requested at the Council workshop held on 17 June 2020 are included in the latest version attached to this report. These include:

7.1. Removing the numbering of the focus areas and noting that each pillar has equal weighting.

7.1.1. Revising a goal to better reflect the national target to “By 2025, stock is excluded from all flowing permanent and intermittent rivers/ creeks, lakes and wetlands, and at least 30% are fenced and planted to filter contaminants”

7.1.2. Revising a goal to reduce the deadline for HBRC to confirm it is carbon zero. “By 2025, HBRC is carbon zero and plays a leadership role in the region’s goal of net zero greenhouse gases by 2050.”

Significance and Engagement Policy Assessment

8. As this is a non-statutory document primarily for an internal audience and a refresh rather than a re-write significance was assessed as low therefore no community engagement was required.

Climate Change Considerations

9. The most significant change to the Strategic Plan resulting from the refresh is a greater focus on climate change. It was agreed that climate change is a pervasive driver across all council’s activities and is now explicitly reflected in the vision and focus areas in the document.

Considerations of Tāngata Whenua

10. Council workshopped the Strategic Plan refresh with the Māori Committee on 4 March 2020. General feedback included:

10.1. Support for the use of “resilience” in our vision and greater reference to climate change in the document to reflect the Council’s climate change emergency declaration.

10.2. Proposing a change to the vision statement to emphasise a prosperous community not just economy (to address inequality).

10.3. Support for climate change as an overarching umbrella over the four pillars (land, water, biodiversity and infrastructure/services) and not a fifth pillar.

10.4. Support for bringing forward aspirational targets e.g. from 2030 to 2025.

10.5. The need for milestones along the way to achieving longer term goals and use of progress indicators that are relevant to Māori

11. A number of wording changes were also made to the “Our Strategic Outcomes, Goals and Actions” section of the Plan as a result of the Māori Committee’s feedback.

12. A presentation will be made to the Māori Committee on 4 July to close the loop on its early involvement.

Financial and Resource Implications

13. There are no direct financial implications from adopting the refreshed Strategic Plan. The financial implications related to how each of the strategic goals will be achieved will be made during the development of the 2021-31 Long Term Plan.

Decision Making Process

14. Council and its committees are required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

14.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

14.2. The use of the special consultative procedure is not prescribed by legislation.

14.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

14.4. The persons affected by this decision are staff and governors of the Hawke’s Bay Regional Council, and indirectly all ratepayers in the region.

14.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the “Strategic Plan Adoption” staff report.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community or persons likely to have an interest in the decision.

3. Adopts the Strategic Plan 2020-2025 for publication.

Authored by:

Desiree Cull

Strategy and Projects Leader

Approved by:

Tom Skerman

Group Manager Strategic Planning

Attachment/s

⇨1

HBRC 2020-25 Strategic Plan

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

Subject: Report and Recommendations from the Regional Planning Committee

Reason for Report

1. This item presents the recommendations arising from the 3 June 2020 Regional Planning Committee meeting for Council’s consideration and approval.

Agenda Items

2. Paul Bailey presented a petition requesting that Council retains its current policy requiring that consent applications for water bottling plants be publicly notified, which the Committee received by way of resolution, being:

2.1. That the Regional Planning Committee receives the petition, which reads “We ask that Hawke’s Bay Regional council maintain its current policy of making consent application for water bottling plants publicly notifiable” from Mr Paul Bailey.

3. The HBRC TANK Plan Change Submission decision item provided an overview of the proposed submission seeking amendment of Policy 39 and associated provisions to improve the implementation of stream flow maintenance solutions, and sought the Committee’s agreement to lodge said submission.

4. The Proposed Plan Change 6A: Tukituki Catchment Table 5.9.1D decision item was combined with item 9 “Feedback from Tukituki Catchment Proposed Plan Change Pre-consultation” and proposed to notify a Plan Change to amend Table 5.9.1D in the Hawke’s Bay Regional Resource Management Plan, and to apply to the Minister for the Environment to use the Streamlined Planning Process.

5. The Policy on Notification of Water Bottling Related Consent Applications item sought feedback from the Regional Planning Committee on the potential to change the policy requiring that any application relating to water bottling is publicly notified, as requested by the Regional Council. Feedback from tangata whenua included the expression of concerns around water quantity and allocation, and support for retention of the status quo.

6. The Update on Tukituki Regulatory Implementation item provided the Committee with an update on Tukituki Regulatory Implementation in response to a request from Councilors, particularly in light of the current drought and the regulatory requirement for production land use consents by 1 June 2020.

7. A presentation by Christian Jirkowsky covered air quality and air pollution control systems, including an overview of biomass residue waste problems, sources of air pollution including from wood burning, emission limits, and emission control systems.

8. Following the presentation from Christian Jirkowsky, the Air Quality June 2020 Update item updated the Committee on the state of Air Quality in the HB airsheds and progress with the Government’s updated NESAQ including a potential submission from HBRC.

9. The Update on Government's Healthy Waterways Reform Package item updated the Committee on the most recent amendments to the Healthy Waterways reform package, including advice that the comprehensive water reform package will have significant impact on councils with solid regulations that councils will need to enforce, and requires more active monitoring of the highest risk activities like discharges into waterways.

10. The Resource Management Policy Projects Update standing item updated the Committee on the current status of plan change processes, particularly the Mohaka and Outstanding Water Bodies plan change workstreams.

11. The June 2020 Statutory Advocacy Update standing item updated the Committee on activities, particularly during the Covid-19 lockdown period.

Decision Making Process

12. These items were specifically considered at the Committee level.

Recommendations

The Regional Planning Committee recommends that Hawke’s Bay Regional Council:

1. Receives and notes the “Report and Recommendations from the Regional Planning Committee”.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion 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.

HBRC TANK Plan Change Submission

3. Lodges a submission on the Proposed TANK Plan Change 9 before 3 July 2020 that seeks replacement of Policy 39 with a new policy along the following lines.

Hawke’s Bay Regional Council will:

3.1. consult with iwi and other relevant parties to investigate the environmental, technical, cultural and economic feasibility of options for stream flow maintenance and habitat enhancement schemes including water storage and release options and groundwater pumping and discharge options that:

3.1.1 maintain stream flows in lowland rivers above trigger levels where groundwater abstraction is depleting stream flows and:

3.1.2 improve oxygen levels and reduce water temperatures:

3.2. determine the preferred solutions taking into account whether:

3.2.1 wide-scale aquatic ecosystem benefits are provided by maintaining stream flow across multiple streams

3.2.2 multiple benefits can be met including for flood control and climate change resilience

3.2.3 the solutions are efficient and cost effective

3.2.4 scheme design elements to improve ecological health of affected waterbodies

3.2.5 opportunities can be provided to improved public access to affected waterways.

3.3. develop and implement a funding mechanism that enables the Council to recover the costs of developing, constructing and operating stream flow maintenance and habitat enhancement schemes from permit holders, including where appropriate,

3.3.1 management responses that enable permit holders to manage local solutions and

3.3.2 commitment to develop any further plan change within an agreed timeframe if necessary to implement a funding solution

3.4. ensure that stream flow maintenance and habitat enhancement schemes are constructed and operating within ten years of the operative date of the Plan while adopting a priority regime according to the following criteria:

3.4.1 solutions that provide wide-scale benefit for maintaining stream flow across multiple streams

3.4.2 solutions that provide flow maintenance for streams that are high priority for management action because of low oxygen levels

3.5. review as per Policy 42 if no schemes are found to be feasible.

3.6. Makes amendments to TANK Rules 9 and 18 and Schedule 36, plus other consequential amendments as necessary to enable the new policy to be implemented including removing a choice between contribution to stream flow maintenance and a ban on abstraction at trigger flows.

Proposed Plan Change 6A: Tukituki Catchment Table 5.9.1D

4. Approves Proposed Plan Change 6A Tukituki Catchment – Table 5.9.1D for notification and the associated report, Section 32 Evaluation of proposed plan change 6A Tukituki Catchment – Table 5.9.1D

5. Requests staff apply to the Minister for the Environment to use the streamlined planning process

6. As a default, should there no response from the Minister for the Environment by 15 July 2020, then approve the use of the Part 1 Schedule 1 RMA plan making process to enable a Council decision for the date of notification

7. Requests staff inform all those who provided pre-notification feedback of the Regional Planning Committee’s decision to approve Proposed Plan Change 6A Tukituki Catchment – Table 5.9.1D for notification.

8. Requests staff contact iwi authorities of the Tukituki Catchment to nominate a suitably qualified and accredited RMA hearing commissioner

9. Requests staff prepare a proposal to review nutrient management as part of the review of freshwater management provisions in the Regional Resource Management Plan, with notification of the reviewed provisions to occur by 31 December 2024. Resourcing for this review will be included in the Proposed Long Term Plan 2021-2031.

Reports Received

10. Notes that the following reports for information were provided to the Regional Planning Committee

10.1. Mana Ahuriri Trust - Post Settlement Governance Entity Presentation by Piri Prentice (resolved to receive)

10.2. Presentation of Petition (resolved: That the Regional Planning Committee receives the petition, which reads “We ask that Hawke’s Bay Regional council maintain its current policy of making consent application for water bottling plants publicly notifiable” from Mr Paul Bailey)

10.3. Policy on Notification of Water Bottling Related Consent Applications (resolved: The Regional Planning Committee provides feedback to Hawke’s Bay Regional Council in relation to how resource consent applications for activities relating to water bottling should be assessed for notification.)

10.4. Update on Tukituki Regulatory Implementation (resolved to receive)

10.5. Christian Jirkowsky presentation and Air Quality June 2020 Update (resolved: That the Regional Planning Committee receives and notes the “Air Quality June 2020 Update” staff report and presentation made by Mr Christian Jirkowsky.)

10.6. Update on Government's Healthy Waterways Reform Package (resolved to receive)

10.7. Resource Management Policy Projects Update (resolved to receive)

10.8. June 2020 Statutory Advocacy Update (resolved to receive).

Authored by:

Mary-Anne Baker

Senior Planner

Leeanne Hooper

Governance Lead

Approved by:

Tom Skerman

Group Manager Strategic Planning

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

Subject: Notification Policy for Resource Consent Applications to Take Water for Water Bottling Purposes

Reason for Report

1. This report provides for Council to decide whether and how the current (2016-17) Policy, introduced to publicly notify all resource consent applications to take water for water bottling purposes should be amended. This follows consideration by Council at its meeting on 29 April 2020, with a recommendation to let the matter lie on the table pending feedback from the Regional Planning Committee.

2. The RPC considered the issue at its meeting on 3 June 2020. At the RPC meeting the committee also received a petition seeking: “We ask that Hawke’s Bay Regional Council maintain its current policy of making consent application for water bottling plants publicly notifiable”.

Officers’ Recommendations

3. Three options are proposed for Council to review. The Council is requested to adopt one of these options. All options have risks but are intended to provide some relief to the public concerns with consenting water takes for bottling.

3.1. Council retain the current policy that directs staff to apply special circumstances to water bottling take consent applications therefore requiring that they be publicly notified. This approach was adopted in 2016 with modification in 2017

3.2. Council amend definition of water bottling to be where the water content of the container is more than 99%. The current definition of water bottling is anything that comprises more than 90% of the water taken, but it could be amended to allow, for example, up to 99% water

3.3. Council retain Option 1 for any new applications for water bottling, but leaves discretion with staff to consider the requirement for public notification on a case-by-case basis for amendments to the conditions for any existing water takes.

Executive Summary

4. The Council has a policy position established in 2016 that requires any water bottling proposal to be publicly notified. The policy was amended in May 2017.

5. Apollo Foods have taken the opportunity to present to staff and Council on their concerns that their plans to include products exceeding 90% water in their product range will curtail potential growth if their application is to be publicly notified.

6. Their current resource consent is for the take and use of up to 8,765 cumecs in a 7 day period, with a maximum rate of take of 14.5 litres per second.

7. Apollo Foods is not seeking any increase in the amount of water they are consented to take.

8. A condition and an advice note were included in the consent document that the consent did not provide for the use of the water for water bottling purposes.

9. Also review conditions were included to allow for the review of the consent to ensure that it aligns with operative TANK plan provisions. An advice note is also included which explains that reductions or restrictions may occur as a result of the TANK plan change process.

10. Apollo Foods have requested that Council review the current policy with their situation in mind. They are locally owned, they value add making beverages using local product, they are wanting to compete across the range of products with multi-national competitors. They are not seeking more water they are wanting to use up to 20% of the water they have been allocated for purposes where greater than 90% of the bottled contents will be water.

11. Feedback from the Regional Planning Committee is included in the discussion.

12. There is no specific recommendation. Updated options from those presented at the April 2020 and June RPC meetings are provided for Council to consider.

Background

13. The Council decided in December 2016 that:

13.1. all takes for water bottling trigger special circumstances and therefore should be publicly notified by staff

13.2. for clarity, water bottling is defined as “taking and using water for bottling in bottles, bladders or other containers for human consumption where bore water makes up at least 90% of the content of the container”

14. This was amended in May 2017 to provide clarification of the Council policy position by:

14.1. Amending the definition of water bottling to read “taking and using water for bottling in bottles, bladders or other containers for human consumption, where the water taken makes up at least 90% content of the container”

14.2. Amending the Hearings Committee Terms of Reference to include the delegations to hear and decide applications for lapse date extensions for water bottling resource consents

14.3. Advising that all applications to change any of the conditions of a water take resource consent for water bottling will be publicly notified

14.4. Advising that all applications to transfer a water bottling resource consent, in part or in full, from site to site will be publicly notified.

15. No applications have been lodged for water bottling purposes and therefore none have been notified since this policy position was established.

16. The ability to apply for new water from the Heretaunga Plains has changed since this policy was established. The results of the groundwater modelling work undertaken for TANK were reported to Council in August 2017. This work determined that the sustainable allocation limit for the groundwater resource was in the order of 90 million cubic meters per year. The exact volume of water allocated across the plains cannot be established as not all groundwater takes have annual volumes assigned to them, but it is estimated that between 150 and 180 million cubic metres per year is allocated from the Heretaunga Plains groundwater resource. This is well in excess of the scientific recommendation and hence no more water has been allocated since this was determined, with some exceptions.

17. There was a transition period that applied where applications in process or underway and invested in on the basis of advice given prior to this date, were processed and granted. Apollo Foods was in this group and was able to obtain their water permit at this time. Their consent was issued in October 2017. Apollo Foods were aware of the policy position on water bottling and accepted that they would not seek to use the water for water bottling.

18. A condition and an advice note were included to document that the consent did not provide for the use of the water for water bottling purposes. These provided as follows:

18.1. Condition 14: The consent holder shall undertake all operations in accordance with any drawings, specifications, statements of intent and other information supplied as part of the application for this resource consent. This includes (but is not limited to) the statement confirming that ‘water bottling’ will not occur under this consent (see Advice Note VI).

18.2. Advice Note VI Water Bottling: The consent was issued on the basis of statements made in support of the application, including that water would not be taken and used for ‘water bottling’. ‘Water bottling’ is currently defined by the Council as “taking and using water for bottling in bottles, bladders or other containers for human consumption where bore water makes up at least 90% of the content of the container”. A change of consent conditions would be required to authorise any proposed ‘water bottling’ under this consent.

19. Also review conditions were included to allow for the review of the consent to ensure that it aligns with operative TANK plan provisions. An advice note is also included which explains that reductions or restrictions may occur as a result of the TANK plan change process.

20. Apollo Foods is a beverage company and produce fruit juice and other high value beverage products. Much of the product they use is what they describe as “cosmetically challenged fruit”. They also have a partnership with Fonterra to produce milk drinks and potentially a protein-based energy drink.

21. Some of the potential product range would use more than 90% water in a bottle, triggering the requirement to publicly notify the consent amendment. Apollo Foods is not looking for a commoditised water bottling use right, but more the ability to leverage off the trends operating within their market destinations to create “added value waters”. The opportunities they see are for healthy, low sugar, nutritious, nutraceutical type products.

22. They are requesting that Council amend the requirement to notify a change of condition application that would allow for their resource consent to include the use of water for water bottling purposes. They propose that the consent be amended to allow a portion of their existing take (no more than 20%) to be used to produce products where more than 90% of the contents of a container is water.

Consultation with Regional Planning Committee

23. At the Council meeting of 29 April 2020 HBRC decided to let the matter of any change to the public notification policy lie on the table until such time as the matter was traversed with the Regional Planning Committee and their views canvassed.

24. For the Regional Planning Committee paper 5 options were presented for consideration including option 5 that had not been in the April Council paper. The 5 options were:

24.1. Option 1 – retain current policy in its entirety

24.2. Option 2 – notification decision on a case-by-case basis by Council or delegated councillors/commissioners

24.3. Option 3 – Initiate Plan Change to require notification of “water bottling” activities

24.4. Option 4 – revert to pre-2016 and leave discretion to staff to determine on case-by-case basis

24.5. Option 5 – Amend definition of water bottling to be where the content of the container is greater than 99% water.

25. The RPC paper outlined a number of beverage products that already have higher than 90% water but would not be captured by the current policy but where the effect on the environment would be almost identical to water bottling.

26. The feedback provided at the RPC meeting is summarised as follows:

26.1. It was noted that the current policy was not intended to catch all beverages listed, just water bottling plants

26.2. Concern that the 90% figure in the definition of water bottling is inconsistent with other products that use more than 90% water, but are not necessarily required to be publicly notified

26.3. Noted that the amendment proposed by Option 5 would allow the company to broaden their product range

26.4. Concerns raised by several committee members about the sustainable use of water for water bottling and retention of current policy supported

26.5. It was noted that the proposal by Apollo Foods does not seek any more water over and above what is consented.

Options for consideration

27. Following consultation with the Regional Planning Committee the following revised options are presented to Council:

28. Option 1 Retain the current approach that directs staff to apply special circumstances to water bottling take consent applications. This option will leave it that any application to take water for water bottling purposes or to change a condition or to consider a lapse date extension would need to be publicly notified. The risks associated with this are that the notification may elicit submissions that are outside the scope of the RMA. It exposes Council to little additional cost given that the cost of the process is borne by the applicant. It could be argued that this approach indicates predetermination and is not demonstrating a fair process. It could be open to judicial review. It may be preferable that this direction is established via a plan and a rule. It is less necessary now that TANK has identified the Heretaunga Plains groundwater resource is over allocated.

29. Option 2 amend definition of water bottling to be where the water content of the container is more than 99%. The current definition of water bottling is anything that comprises more than 90% of the water taken, but it could be amended to allow, for example, up to 99% water. This would then allow the use of water for the production of energy type beverages and flavoured drinks to be processed without being required to be notified as per the current policy. It would also remove the unintended consequence of imposing a more stringent limit on beverage manufacturing than on other food production activities that are significantly water-based.

Option 2 would allow for a wider use of water without need for notification while still ensuring that any process for the bottling of 100% water would continue to be publicly notified. It may reduce the cost to applicants provided they don’t wish to bottle 100% water. If the 90% trigger remains then the costs and risks set out in Option 1 remain.

30. Option 3 is to retain Option 1 for any new applications for water bottling activities but leave discretion with staff to consider requirement for public notification on a case-by-case basis for amendments to the conditions for any existing water takes. This allows for the public to have certainty of input into any application for any new water take that is proposed for water bottling activities. It will address the concerns around water allocation and water quantity that are within the scope of the RMA.

By differentiating between new and existing takes for public notification Option 3 will also provide a more pragmatic and efficient route for companies wishing to expand their beverage portfolio for example and will reduce the risk of judicial review of a notification decision.

Decision Making Process

31. Council and its committees are required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

31.1. The decision does not significantly alter the service provision or affect a strategic asset.

31.2. The use of the special consultative procedure is not prescribed by legislation.

31.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

31.4. The persons affected by this decision are Councillors, tangata whenua, resource consent applicants, the community, and generally all persons with an interest in the region’s management of natural and physical resources under the RMA

31.5. The decision is not inconsistent with an existing policy or plan.

31.6. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the “Notification Policy for Resource Consent Applications to Take Water for Water Bottling Purposes” staff report.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion 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.

Either

3. Option 1: Retains the current policy that directs staff to apply special circumstances to water bottling take consent applications, therefore requiring that they be publicly notified, as adopted in 2016 with modification in 2017.

4. Option 2: Amends the definition of water bottling in the current policy to be where the water content of the container is more than 99%.

5. Option 3: Retains Option 1 for any new applications for water bottling, but leaves discretion with staff to consider the requirement for public notification on a case-by-case basis for amendments to the conditions for any existing water takes.

Authored by:

Malcolm Miller

Manager Consents

Approved by:

Liz Lambert

Group Manager Regulation

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

Subject: Hawke's Bay Disaster Relief Trust - Council Controlled Organisation Exemption

Reason for Report

1. The purpose of this report is to obtain a decision from the Council to exempt the Hawke’s Bay Disaster Relief Trust from the requirements imposed on Council Controlled Organisations (CCO) under the Local Government Act 2002 (LGA).

2. The exemption will allow a reduced reporting requirement for the Trust under the LGA.

3. The Council is required to give effect to the purpose of local government as prescribed by Section 10 of the LGA. That purpose is to meet the current and future needs of communities for good quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost–effective for households and businesses. Good quality means infrastructure, services and performance that are efficient and effective and appropriate to present and anticipated future circumstances.

4. This report concludes by recommending that the Hawke’s Bay Disaster Relief Trust be exempt from being a CCO under the LGA.

Officers’ Recommendation(s)

5. Council officers recommend that the Hawke’s Bay Disaster Relief Trust be exempted from being a Council Controlled Organisation under the Local Government Act 2002, due to the disproportionate level of reporting required for a CCO.

Background /Discussion

6. Hawke’s Bay Disaster Relief Trust was created by the Hawke’s Bay Civil Defence Emergency Management (CDEM) Group in March 2020. As the Hawke’s Bay CDEM Group is made up of all five Hawke’s Bay local authorities and the Trustees are the Mayors and Regional Council Chair, it is considered that the Trust should be considered under the provisions of the LGA as they relate to a CCO.

7. It is proposed that the Trust be considered for exemption from the requirements imposed on CCOs under section 7 of the LGA. This exemption must be approved by all five councils. Section 7(6)(a) of the LGA also stipulates that a Council must review any exemptions granted under section 7 within 3 years after it was first granted.

8. The LGA allows a local authority to exempt organisations from being CCOs. The following are the relevant sections of the LGA.

“7 Exempted organisations

(3) A local authority may, after having taken account of the matters specified in subsection (5), exempt a small organisation that is not a council-controlled trading organisation, for the purposes of section 6(4)(i).

(4) An exemption must be granted by resolution of the local authority.

(5) The matters are –

(a) the nature and scope of the activities provided by the organisation; and

(b) The costs and benefits, if an exemption is granted, to the local authority, the council-controlled organisation, and the community.”

9. The Trust is not a council-controlled trading organisation. The LGA identifies monitoring and requirements for CCOs which include half yearly and annual reports plus an annual Statement of Intent.

10. The Hawke’s Bay Disaster Relief Trust is a charitable trust that has the following stated purpose:

10.1. To provide financial and any other relief or assistance to meet the welfare and other needs of people who have suffered any injury, damage or loss following the occurrence of a disaster that qualifies as an “emergency” under the Civil Defence Emergency Management Act 2002 (or any later replacement thereof), whether natural or otherwise, within the legal boundaries of the Wairoa, Hastings, and Central Hawke's Bay District Councils and Napier City Council. For the avoidance of doubt “those in need” is to be construed as widely as possible and includes individuals, communities, businesses, non-government organisations, the Local Authorities and other legal persons approved by the Trustees.

11. The Trust is a Council Controlled Organisation because under the trust deed the Mayors and Regional Council Chair are the Trustees. This means that the Hawke’s Bay Councils have effective control of the Trust Board and its assets. In practical terms however, the Trust Board is allowed to administer and distribute funds to alleviate the impacts of an emergency or a disaster on the community as it sees fit with the constraints of the Trust Deed (Attachment 1).

12. Section 7(7) of the LGA states that a Local Authority may, at any time, revoke an exemption it has granted and Council would be inclined to do so if the nature and scope of activities provided by the Trust increased to a level that warranted a change.

Current Situation

13. Day to day the Hawke’s Bay Disaster Relief Trust is a small entity with limited or no turnover.

14. This may change during an emergency where the Trust is gifted monies to administer within the confines of the Trust Agreement.

15. A good example of this is the current Hawke’s Bay drought event where three Hawke’s Bay councils, central government, companies and individuals have donated funds for the Trust to distribute in support of people impacted by the drought. The amount of money held by the Trust for this purpose amounts to approximately $1m.

16. The Trust has approved a process for the distribution of these funds and at the time of writing this report applications are being received and processed.

Options

17. Council can either resolve to approve the exemption for the Hawke’s Bay Disaster Relief Trust, or it can refuse the exemption and require the Trust to report as required under the LGA.

18. The preferred option is for the Hawke’s Bay Disaster Relief Trust to be exempted from being a Council Controlled Organisation under the Local Government Act 2002, the reason being that the level of reporting required of a CCO under the LGA is disproportionate to the size, type and the breadth of operations the Trust undertakes.

Significance and Engagement Policy Assessment

19. The issues for discussion are not significant in terms of the Council’s policy on significance and no consultation is required.

Decision Making Process

20. Council and its committees are required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

20.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

20.2. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

20.3. Given the nature and significance of the issue to be considered and decided, Council can exercise its discretion and make this decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the “Hawke's Bay Disaster Relief Trust Council Controlled Organisation Exemption” staff report.

3. As provided for in sections 6 and 7 of the Local Government Act 2002, grants the Hawke’s Bay Disaster Relief Trust an exemption from being a Council Controlled Organisation, as defined by section 6 of the local Government Act 2002, for a period of three years to 30 June 2023.

Authored by:

Bronda Smith

Chief Financial Officer

Approved by:

Ian Macdonald

Group Manager/Controller

Attachment/s

⇩1

Hawke's Bay Disaster Relief Trust Deed

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

SUBJECT: Councillor Remuneration

Reason for Report

1. This item confirms recent Remuneration Authority amended determinations for local government elected member remuneration and allowances as gazetted recently, being:

1.1. Local Government Members (2019/20) Amendment Determination (No 2) 2020 change the HBRC councillors’ remuneration to account for five roles with extra responsibility (added Coastal Hazards Strategy Joint Committee Chair)

1.2. Local Government Members (Temporary Reduction COVID-19) Determination 2020 in relation to the Chairman’s remuneration.

Officers’ Recommendations

2. Council officers recommend that Council resolves to note receipt of the amended determinations as gazetted.

Executive Summary

3. The Council has been supplied with amended determinations for councillors’ remuneration from the Remuneration Authority:

3.1. in response to an application from HBRC submitted in April 2020 which was accepted as proposed by the Authority,

3.2. and a Central Government directive in response to Covid-19.

Background / Discussion

4. Each year the Remuneration Authority (RA) determines the remuneration for elected members. In 2019, each newly elected council was invited to give the RA recommendations (by resolution) for how its pool should be distributed among the Council members. This Council resolved that the remuneration levels to be paid to elected members under the Local Government Elected Members’ Determination 2019 would be:

4.1. $62,000 per annum for a councillor with no additional responsibilities

4.2. $77,370.75 per annum for each position of additional responsibility following

4.2.1. Cr Rick Barker Deputy Chairman and Chair, Environment and Integrated Catchments Committee

4.2.2. Cr Neil Kirton Chair, Corporate and Strategic Committee

4.2.3. Cr Martin Williams Chair, Regional Transport Committee and Hearings Committee

4.2.4. Cr Craig Foss Chair, Finance, Audit and Risk Sub-committee.

5. The RA considered the Council’s proposal and gazetted amendments accepting the proposed remuneration without change.

6. Subsequently, on 25 March 2020, Council resolved:

6.1. Requests that staff initiate the process of application to the Remuneration Authority for a change to the remuneration of HBRC councillors to include five positions with additional responsibilities, for immediate effect.

7. In response to the 25 March resolution, staff submitted an application to the Remuneration for an amended determination to remunerate 5 positions of responsibility, to include the Clifton to Tangoio Coastal Hazards Strategy Joint Committee Chair, on 21 April 2020. That application was approved by the Remuneration Authority and gazetted on 14 May 2020.

Financial and Resource Implications

8. Changing the remuneration structure to include five positions of additional responsibility does not affect the total councillors’ remuneration budget, however does have implications for the other councillors’ remuneration levels. The new remuneration amounts, with effect from 5 February 2020, are:

8.1. $62,000 per annum for a councillor with no additional responsibilities

8.2. $74,296.60 per annum for a councillor with additional responsibilities, e.g. Chair of a Committee, Sub-committee or Joint Committee (previously $74,370.75).

Decision Making Process

9. Council is required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in the Act and have concluded that Council can exercise its discretion and make these decisions without consulting the community or others with an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. receives and considers the “Councillor Remuneration” staff report

2. notes the consequential changes to the remuneration of councillors resulting from the Local Government Members (2019/20) Amendment Determination (No 2) 2020

3. notes the consequential changes to the remuneration of the HBRC Chairman resulting from the Local Government Members (Temporary Reduction COVID-19) Determination 2020.

Authored by:

Leeanne Hooper

Governance Lead

Approved by:

James Palmer

Chief Executive

Joanne Lawrence

Group Manager Office of the Chief Executive and Chair

Attachment/s

⇩1	Local Government Members (2019/20) Amendment Determination (No 2) 2020
⇩2	Local Government Members (Temporary ReductionCOVID-19) Determination

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 June 2020

Subject: Procurement Policy Amendments and Activity Report

Reason for Report

1. This item elaborates on queries raised on 20 May, summarises proposed Procurement Policy wording amendments and provides a year to date report against procurement metrics previously agreed by the Finance Audit and Risk Sub-committee.

Executive Summary

2. The relationship between the procurement policy and the procurement manual is that the policy defines strategic objectives, where the manual describes how those objectives are to be achieved through process and procedure. The requested amendments to policy wording are highlighted in Attachment 1.

3. Suggested amendments to the procurement manual are highlighted in Attachment 2.

4. Reporting metrics as agreed by the Finance audit and risk sub-committee (FARS) reflect the period 1 July 2019 to 15 June 2020.

5. Council is asked to consider any additional reporting metrics they may find useful.

Background

6. On 15 May 2020 a letter was sent to local government CEOs from the Auditor General. article on OAG website. Included with the letter was a report with key observations and recommendations to review procurement policy and procedure at a local level. The focus was on $50m+ infrastructure and liaison with the new Te Waihanga (NZ Infrastructure Commission). The report noted that while it is not mandatory to comply with OAG Govt procurement rules, being known and accepted as best practice, it may be difficult to justify deviation. Key references from the report are listed below.

7. Governance and operational. “OAG often sees examples of procurements where the lines between governance and management are blurred. For example, mayors or other elected members might be part of tender evaluation panels. This is not good practice. However, it is entirely appropriate for major procurements to require sign-off by the governing body. In order for elected members to approve procurement decisions when required, they need enough information to make informed decisions.”

7.1. Action - Strengthened the HBRC procurement manual to include procurement plan and a tender recommendation templates to the tenders committee for items over $400k, including a probity sign off check list to assure informed decisions, using the NZTA Transport contract evaluation template as a good example

8. Conflicts of interest “Under no circumstances should a procurement process allow council staff or elected members to receive preferential treatment. There are two specific restrictions that apply to elected members under the Local Authorities (Members’ Interests) Act 1968. Under the Act, an elected member cannot:

8.1. enter into contracts with their local authority worth more than $25,000 in a financial year; or

8.2. discuss or vote on matters before their authority in which they have a direct or indirect pecuniary interest, other than an interest in common with the public.”

8.3. Action - Added the above wording to the Procurement policy under 5.5 and reference Gifts and inducements (HBRC Policy 18) and Sensitive expenditure (HBRC Policy 24). This application will also be extended to HBRC committee members to ensure consistency.

9. Emergency procurement – There are no actions required as this is already covered in the current policy and manual

10. Capability and capacity – Policy and training. “Councils need to ensure that there are regular internal audits, or other reviews, of procurement activity. The findings from these reviews should be reported to the governing body either directly or through the audit and risk committee. Regular reviews of procurement practice can also help to identify training needs and other risks.”

10.1. Action – As identified in points 21 and 22. Training and audit functions for procurement will be developed over the next six months supported by an internal communications programme

11. Contract Management – Contracts are managed by HBRC contract managers who are encouraged to develop a contract agreement with suppliers utilising an outcome agreement template (Attachment 3). While not legally binding it can mitigate potential contract management issues.

12. Broader Outcomes procurement The Government Procurement Rules require agencies to “consider, and incorporate where appropriate, broader outcomes when purchasing goods, services or works”. The rules define broader outcomes “as the secondary benefits that are generated from the procurement activity. They can be environmental, social, economic or cultural benefits.

12.1. Although it is not mandatory for councils to comply with the rules, they are encouraged to do so. Councils that fail to comply with legislative requirements, or follow best practice, in their procurement practices will be at risk of legal challenge and additional scrutiny and criticism from stakeholders and other third parties.

12.2. Councils can mitigate some of this risk by engaging with their elected members about their strategic objectives and how they can align these with their intended procurement outcomes. For example, if elected members want to prioritise using local suppliers, or support suppliers that pay a living wage, councils should be exploring ways to build those objectives into procurement policies and processes.

13. This is covered by HBRC procurement policy principle No.1 now extended to include Climate.Smart.Recovery. Practical considerations No.6; policy clauses 5.7 and 5.9 include local purchasing and fair wage. In discussion council requested information on how weighted evaluation criteria took into account eco-sourcing plants, and local purchasing, showing an evaluation table. An example is attached (Attachment 4). It is intended that sustainability criteria used as part of HBRC evaluation processes be reviewed to reflect developments on an annual basis.

Year to date activity reporting

14. Procurement reporting to FARS for the period 1 July 2019 to 15 June 2020

14.1. 209 contracts were created

14.2. 12 contracts were awarded with a value of $100k+, 6 contracts were valued at $75k-$100k, and 8 contracts valued at $50-$75k were awarded.

14.3. 144 contracts (70%) were assessed by the contract owners as being low risk, 53 contracts (26%) were assessed as being medium risk, and 7 contracts (3.5%) assessed as high risk

14.4. Of the 27 contracts with a value greater than $50,000 8 completed an RFP/RFQ process, 16 considered local suppliers, and 12 confirmed living wage payments.

14.5. There are 59 contracts expiring in the next three months that will be subject to post contract evaluation. There are 11 significant or high value contracts ($50k+) expiring in the next three months.

15. Procurement information is now available ‘live’ at organisation and group level utilising the Power BI Dashboard. Further levels of drill down detail are available at group, service and contract manager levels. A demonstration of the reporting data base could be provided to the FARS at a future meeting if required.

16. So far, on average, four contracts are being generated across the organisation every week, with the contract being one part of a three stage (planning, sourcing and managing) process. The contract and deliverables are managed by the individual contract managers.

17. A contract expiring triggers an automated evaluation process with the contract owner, collecting data on advisability of supplier future use based on timeliness, budget performance, meeting specification, health and safety performance, shared HBRC environmental vision, professionalism and any learnings from the project/contract delivery.

Next Steps

18. Procurement monitoring will continue to develop as an iterative process with the procurement team applying a continuous improvement ethos to meet organisational need.

19. The Procurement manager is seeking feedback from FARS regarding further information it would be useful to incorporate into a regular reporting format.

20. Over the next six months there will be a review to increase the use of ‘All of Government’ contracts, which may provide an opportunity for further cost savings.

21. The development of an ongoing internal procurement training and procurement communications programme.

22. The design and implementation of an internal procurement audit programme.

Strategic Fit

23. The development of a centralised procurement and contract management function has assisted HBRC to adopt best procurement practice that supports HBRC’s strategic goals associated with mitigating Climate change, Smart continuous improvement and Recovery support for the local economy.

Financial and Resource Implications

24. There are no finance or resourcing consequences to this paper

Consultation

25. Consultation is not required to canvas the view of Councillors on policy development.

Decision Making Process

26. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That Hawke’s Bay Regional Council receives and notes the “Procurement Policy Amendments and Activity report”.

Authored by:

Mark Heaney

Manager Client Services

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇨1	June 2020 Amended Procurement Policy	Under Separate Cover
⇨2	Revised Procurement Manual June 2020	Under Separate Cover
⇨3	Procurement Outcome Management Plan Template	Under Separate Cover
⇨4	Riparian Planting Contract Evaluation	Under Separate Cover

⇩1	HB Tourism Quarterly Report June 2020
⇩2	HB Tourism Key Performance Indicators

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