Agenda of Corporate and Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: Pettigrew Green Arena Car Park

Reason for Report

1. This report provides information to inform inter-Council decisions around the preferred location of the car-parking for the Pettigrew Green Arena expansion.

Officers’ Recommendations

2. Council officers recommend that the Committee considers the three options provided and recommends that Council commences discussions with Napier City Council to provide direction to Pettigrew Green Arena on a preference for the car-parking site.

Executive Summary

3. The Pettigrew Arena is in receipt of PGF funding to develop additional indoor court space for Napier/ Hastings.

4. As part of the development of the site, a location is required for approximately 400 carparks. During the day these carparks can be utilised by EIT.

5. There are two identified locations for the carpark. The first located behind the existing Pettigrew Arena building and carpark on NCC Reserve and the second located on adjacent Tūtaekurῑ river berm on the river side of the stopbank managed by HBRC. There is a third hybrid option also presented in the paper.

6. This paper presents an analysis of all three options of which the staff assessment shows a narrow margin for the NCC reserve. This paper asks the Corporate and Strategic Committee to form a position on the optimal location of the carpark.

7. A similar paper and process is being presented to Napier City Council.

8. Once each Council has formed a view, advice can be provided to the Regional Indoor Sport and Events Centre Trust.

Background /Discussion

9. The Regional Indoor Sport and Events Centre Trust (RISEC) is the charitable trust that operates the Pettigrew Green Arena in Taradale. Since the decision not to proceed with the Multi-Use Sports Facility in 2018, the Trust has been developing options to progress its own facility expansion through providing additional indoor courts. A business case, feasibility study and proposal have been completed.

10. The facility is situated on NCC reserve land (Riverside Reserve). The reserve is broken into two parts with separate designations under the Reserves Act 1977. The area of the reserve in which the existing facility is located is designated as a local purpose community holding reserve, where the rear of the reserve that is currently green space, playground and dog agility area is a recreational reserve. The local purpose community holding reserve designation enables more commercial activity with the leased office space, gym and food provider within the facility.

11. The proposed extension is to construct a new building at the rear of the existing Pettigrew Green Arena (PGA) in Taradale over the car park and a small section of EIT land next door. It is proposed to include a wooden floor that can accommodate six full size futsal courts. The carpark area that has made way for the expanded building will need to replaced and added to close by.

12. The new facility will be available for use by a large number of sporting codes, so the floor space will be able to be configured for the following sports:

12.1. Basketball

12.2. Futsal

12.3. Volleyball

12.4. Netball

12.5. Badminton

12.6. Indoor bowls

13. The new facility is estimated to cost in the region of $14 million (definitive budget still to be completed), with one third of the funding to be sought from corporate sponsorship, philanthropic trusts, government funding and public donations.

14. Construction of the proposed facility is to take approximately one year, and the project will have the ability to be scaled back if the funding targets are not achieved.

15. The need for the expanded facility has been supported by a number of documents and reports that have indicated a high level of unmet demand for indoor court space in Hawke’s Bay driven by structured indoor sports.

16. These documents and reports have consistently indicated a need of between two and six additional courts across Hawke’s Bay. Given the age of these reports and for some the dependence on the National Facilities Strategy for Indoor Sports (2013), these court demand projections do not account for the rapid growth of primarily basketball, but also futsal and volleyball, and the larger than projected growth in the population of Hawke’s Bay.

17. To support RISEC with its expansion project, in April 2020 NCC approved the formation of an Indoor Sports Working Group comprising NCC councillors and officers, PGA, Sport HB and EIT representatives.

18. In August 2020 Government announced that the PGA expansion project has been granted $6.4 million from the Government's Covid Response and Recovery Fund. This investment combined with $4.1 million from NCC and approximately $2 million of existing RISEC funding will comprise the bulk of the project’s construction budget. The primary driver for the national government investment is to stimulate economic activity for the local economy. This impetus creates a haste to get the building underway.

19. The site plan for the expanded facility (attached) shows the new 5 futsal court facility sited where at the rear of the existing facility and over the current carpark. In addition to replacing the carpark that is planned to be built over, there is a need to create car parking capacity to cater for the additional visitors to the facility.

20. The HBRC land assessed for a carpark is in part held for the Improvement and Protection of the Tūtaekurῑ River and in accordance with the purposes of the Soil Conservation and Rivers Control Act 1941 (SCRCA). The objectives set out in Section 10 of the SCRCA included:

20.1. The promotion of soil conservation

20.2. The prevention and mitigation of soil erosion

20.3. The prevention of damage by floods

20.4. The utilisation of lands in such manner as will tend towards the attainment of the above objectives

21. Part of the land is also held as a Hydro Parcel surveyed prior to 1918. Further analysis is required on this land tenure with regards to the rights for HBRC to establish a carpark over this area. HBRC’s relationship to this land is as the responsible authority for the waterway in accordance with the Resource Management Act 1991 (RMA). Section 30(1)(g) of the RMA which is relevance to the Hydro parcel sets out the function of HBRC with similar responsibilities to the SCRCA.

Options Assessment

22. Pettigrew Green Arena has an existing arrangement with the Eastern Institute of Technology in which PGA parking can be used by EIT students during weekdays, with PGA having access to EIT parking for events when overflow car parking is required.

23. The council reserve is bordered by the EIT Student Village to the north, and Hawke’s Bay Regional Council land to the south (the stopbank, cycle paths and riverbank land). To enable the land required to construct the expanded facility and provide a service access lane around the facility a small sliver of EIT land is required.

24. These site constraints and different landowners pose a challenge to locating car parking in a way that best services the need of the facility and EIT.

25. There are three options for the location of the car park:

25.1. Option 1 is locating the car–parking on the NCC-owned Riverside Reserve to the east of the proposed extension

25.2. Option 2 is locating the car parking over the stopbank on HBRC managed land

25.3. Option 3 is a hybrid of the two options – part located in the NCC reserve and part across the stopbank on HBRC land.

26. To inform subsequent discussions between NCC and HBRC, this paper includes an assessment of these three options.

Criteria

27. In order to develop a rounded assessment of the three options a criteria including the following aspects was developed:

27.1. Strategic fit – the impact that the options have on the strategic intent of NCC and HBRC

27.2. Site efficiency – how effectively the positioning of the car-park services the Pettigrew Green Arena

27.3. Whole of life costs – the capital and operating costs of each option

27.4. Existing utility – what community utility value will be given up for each option to construct a car-park

27.5. Environmental/ecological impact – the impact of each option on the natural environment

27.6. Risks – the risk levels associated with each option

27.7. Acoustics – the acoustic impact on neighbouring residents

27.8. Visual impact – Mitigating the car-park aesthetics and blending into its surroundings

27.9. Future-proofing – the impact of the options on potential future PGA expansion

28. The criteria and ratings have been developed and agreed between officers from Napier City Council and Hawke’s Bay Regional Council.

Limitations

29. The options assessment is a high-level officer assessment to inform council decisions as to the way forward. It provides a qualitative assessment to assess the three options using relevant criteria to identify the positive and negative aspects and separate the options. The assessment is not intended to make the decision, but to inform deliberations between councils to provide direction to PGA/RISEC.

30. Every criteria has been given equal weighting. It is possible that council considers that some criteria should be given increased or decreased weightings and this should be considered during deliberations.

Assessment results

31. Three options assessed against this criteria, with the intention of providing an objective and relative option comparison to assist with the decision making of NCC and HBRC.

32. The following rating scale was used to assess the options and help to differentiate based on the criteria:

32.1. 1 – Little to no impact

32.2. 3 – Medium impact

32.3. 5 – Significant impact

33. The assessment scoring of the three options is as follows:

Option	Total score	Ranking
1 – Riverside Park Reserve (NCC land)	44	1 (preferred)
2 – Over the stopbank (HBRC land)	50	2
3 – Hybrid options (both NCC and HBRC land)	52	3 (least preferred)

Summary of options

34. Option 1: Riverside Park Reserve

34.1. Pros

34.1.1. Better car-parking security and accessibility

34.1.2. No need to have traffic cross the bike path

34.1.3. Car park not constructed in flood hazard zone – reducing risks and operating costs

34.2. Cons

34.2.1. Closer to neighbouring residences meaning that noise and disturbances from car park users will be more significant

34.2.2. Is further from EIT for students, potentially meaning students may choose to park on the road rather than the designated car park

34.2.3. Will remove green space used by the community

34.2.4. Will require the relocation of infrastructure including public toilets, dog-agility park and playground.

35. Option 2: Over the stopbank

35.1. Pros

35.1.1. Closer proximity for EIT students

35.1.2. Advantages to managing noise, disturbances and visual impact

35.2. Cons

35.2.1. Increased risks to carpark infrastructure and private vehicles due to flooding from a 1 in 5 year flood event

35.2.2. Increased operational costs for the carpark owner from clean up and damage caused by potential flood damage

35.2.3. Will remove greenspace used by the community

35.2.4. Will require relocation of the Taradale pump/ jumps cycle track

36. Option 3: Hybrid option

36.1. Pros

36.1.1. No advantages over the 2 other options

36.2. Cons

36.2.1. Higher capital costs from cross the stopbank twice

36.2.2. Greater disruption to cycle path from the two crossings

36.3. The full option evaluation matrix is included in the attached documents.

Mitigations through design

37. Design, engineering and construction methods can mitigate the negative impacts of the stopbank option. Plantings, choice of materials and engineering to help to mitigate the impact of flood waters in a flood event are all considerations for detailed design.

38. It may also be possible to use the car park to provide improved access for people to the river to support other recreational opportunities.

39. The summary identifies the key tension between the options.

40. While the stopbank option (option 2) is considered optimal by the proponent as the best situation for servicing the arena itself, as well as better servicing EIT students, it carries a much greater risk of flooding, potentially causing loss or damage to parked vehicles, damage to the car park itself and increased operational costs through clean up after flood events.

41. Pettigrew Green Arena has undertaken to be responsible for asset repair costs, operational costs and risks should the car park be situated over the stopbank, so these costs will not be borne by HBRC or NCC.

Impact of Climate Change

42. The impact of climate change to Hawke’s Bay was recently presented at the 4 November 2020 Environment and Integrated Catchment Committee.

43. This paper noted:

43.1. The changes in rainfall are expected to impact river flows. Annual average discharge decreases (by approximately 20% by 2090 under the high emissions pathway). Mean annual low flows (MALF) largely decrease over time, exceeding 20% in some areas by 2090 under the high emissions pathway, but an increase in summer rainfall in coastal locations may mean an increase in some catchments by 2040 under the mid-range emissions pathway. Mean Annual Flood increases by up to 50% for many of the region’s rivers by the end of the century under a high emissions pathway.

44. The key point of this analysis is that flood events are likely to become more frequent and so over time the current flood impact assessment of 1:5 to the proposed carpark will become more frequent. At this stage it is a trend only and no detailed analysis has been undertaken.

45. HBRC is currently working with NIWA to develop robust methods to introduce climate change scenarios into our river modelling.

The EIT perspective

46. EIT has formally expressed its firm preference to have the car-parking located over the stopbank. This is primarily driven by concerns over the proximity of the parking to EIT, and concerns that with the additional distance that the students will not use the park and prefer to park on the street.

47. The project requires that EIT provide a small section of its land to the north of the proposed site to enable vehicle access around the facility. EIT has indicated that unless the car-parking is situated in the preferred location for its students, then the granting of this land to enable construction as per the current designs may be withheld. This is a potential ‘show-stopper’ for the construction of the expanded facility.

Recommendation

48. The recommendation is to:

48.1. Remove the hybrid option from consideration

48.2. Consider the pros and cons of the two remaining options (Riverside Park Reserve and over the stopbank) and develop a position.

48.3. Agree this position with Napier City Council

48.4. Provide direction to Pettigrew Green Arena as to the location of the car park.

Issues

49. HBRC have scheduled work during this financial year to reinforce (widen) the Taradale stopbank. This work is funded by the IRG funding as part of the Governments Covid-19 Recovery response. Further work may be scheduled in years 2 (2021-22) and 3(2022/23) of the program which is currently under development.

50. This section of stopbank has been accessed by HBRC as a critical component of the Heretaunga Plains Flood Control Scheme due to the high consequence of failure on the Taradale area.

51. Though this work does not directly impact the determination of a preferred option, the amended dimensions and the construction period itself will need to be considered through design and construction.

Significance and Engagement

52. Community engagement is to be considered through the resource consent process and through the proposed Napier City Council Spatial and Connectivity Plan.

Risk

53. The potential that EIT will not provide the small section of land required for the project to commence if the carpark is not located on HBRC land.

54. The HBRC carpark option knowingly places third party infrastructure and private property in a flood hazard zone where lower risk options exist.

Financial and Resource Implications

55. Delays with this decision may result in the project not meeting key deadlines for Government funding and result in the return of the committed investment. At the time of writing this report clarity on the deadlines or consequences on progress with PGF funding were not available.

56. HBRC is not funding any part of the project, nor will not own or maintain the third party infrastructure and will not be responsible in any way for damage or destruction of third party or private property through flood or other event.

Consultation

57. HBRC has not undertaken any consultation with any group on the proposal to utilise Taradale river berm as a significant carpark. This paper has been presented to facilitate urgent direction to RISEC.

Decision Making Process

58. 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:

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

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

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

58.4. The persons affected by this decision are a students and staff of EIT, patrons of the Pettigrew Green Arena and residents who live and recreate close by.

58.5. 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

1. That the Corporate and Strategic Committee receives and considers the “Pettigrew Green Arena Car Park” staff report.

2. That Corporate and Strategic Committee form a view to either support NCC carpark location or HBRC carpark location

3. Commit to work with NCC to provide direction to RISEC on suitable location of carpark.

4. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional Council:

4.1. 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.

Authored and Approved by:

Chris Dolley

Group Manager Asset Management

Attachment/s

⇩1	PGA Car Parking Options Assessment Matrix
⇩2	PGA Extension Site Plan with Car Park Adjustments

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: 2019-20 Compliance Annual Report

Reason for Report

1. This item provides the 2019-20 Hawke’s Bay Regional Council’s (HBRC) Compliance Annual Report for councillors’ information and adoption.

2. A comprehensive report on HBRC’s Compliance Monitoring and Enforcement (CME) activities provides transparency to our communities and those regulated by us. Reporting the level of compliance in our region and interventions undertaken where breaches of the Resource Management Act 1991 (RMA) have occurred, allows trends to be tracked and council’s performance be open to public scrutiny.

Officers’ Recommendation(s)

3. The reporting officer recommends that the Corporate and Strategic Committee receives the report and recommends that Council adopts the report for publication on the Council’s website.

Executive Summary

4. The attached annual report summarises HBRC’s CME functions undertaken under the RMA. It details the breadth of monitoring undertaken, the levels of compliance reported, and a summary of enforcement action taken during the year.

5.

Compliance monitoring - staff monitored 3044 resource consents, including 2115 water takes monitored remotely through telemetry. Overall, 3044 (89.7%) of consent holders were fully compliant, and 29 (1%) were in significant non-compliance.

Figure 1. Consents monitored

6. Monitoring involved a site inspection, assessing performance monitoring returns from consent holders or both.

7. Pollution response - calls received to our hotline were slightly down on previous years with 983 incidents logged for 2019-20 (11% reduction). During COVID-19 level 4 and 3 restrictions, we received half the number of incident complaints we would normally expect, largely explaining the decrease. However, the numbers requiring follow up enforcement action has increased. The majority of calls remain linked to air quality 628 (63%), followed by discharges to land 184 (18%) and surface water 133 (13%).

Figure 2. Incidents per year (left) and incidents by resource type for 2019-20

8. Enforcement – follow-up enforcement action for the 2019-20 year has resulted in a significant increase in prosecutions on last year while there has been a decline in infringements and abatement notices issued.

9. Twelve prosecutions were initiated during the period with 18 individual charges laid. This is a significant increase on the four prosecutions taken last year. The increased volume in prosecutions has put significant pressure on our environmental regulation team, as these cases require more resource to investigate, process and take through the courts.

10. Eight-eight infringement notices were issued, totalling $42,200 in fines. The vast majority were for outdoor burning (58). Twenty-one abatement notices were issued. The decrease in abatement and infringement notices from the previous year is likely due to reduced incidents over the level 3 and 4 COVID-19 restrictions.

Figure 3: Number of enforcement actions by year.

11. Detailed information is contained within the report attached to this agenda item.

12. Staff will make a presentation to Committee at the meeting based on the written report and at the conclusion of questions Council will be asked to receive and adopt the report for publication.

Background /Discussion

13. For the Committee’s information reporting back occurs through the following mechanisms to Council or Committee:

13.1. Compliance Annual Report (2018-19 report herein).

13.2. HBRC Annual Report – results are presented through the Regulation Group of Activities within the Annual Report document.

13.3. Active investigations or issues are reported to Council through the Significant Activities item on the monthly Council agenda.

14. Internally, a weekly incident report is prepared for the Group Manager which details complaints and incidents and the outcomes or progress towards the outcomes.

15. Staff have also established an approach whereby a media release will be issued at the conclusion of any prosecution carried out by HBRC, regardless of the outcome of the prosecution.

Options Assessment

16. The committee can choose to adopt, or not adopt, the attached report.

17. Adopting the report and making it readily available to the community via the Council website increases transparency and Council’s accountability to the community. Compliance activities are partly funded by rates, and it is important that the public knows how their money is being spent. The MfE Best Practice Guidelines for Compliance, Monitoring and Enforcement under the Resource Management Act 1991 state that it is good practice to provide annual reports to the public on CME activities.

18. There are no material risks associated with adopting the report.

Strategic Fit

19. Undertaking compliance monitoring (and enforcement where necessary) helps us to:

19.1. Protect aquatic ecosystems and ensure water use is sustainable (Priority Area: Water)

19.2. Ensure sustainable land use (Priority Area: Land)

19.3. Maintain a healthy and functioning biodiversity (Priority Area: Biodiversity).

Significance and Engagement Policy Assessment

20. Whilst the matters discussed in this report are of interest to the community they do not directly impact or affect the community. There are no financial or levels of service implications associated with deciding to adopt this report. Accordingly, this report is of low significance.

Climate Change Considerations

21. The matters discussed in this report do not contribute towards climate change mitigation or adaptation response, either directly or indirectly. The RMA has only recently been amended to allow the effects of activities on greenhouse emissions to be considered during the consenting process. None of the consents monitored in the 2018-19 year contained conditions relating to greenhouse gas emissions.

Considerations of Tangata Whenua

22. The attached report sets out ways we have improved our engagement with tangata whenua on compliance matters. This includes:

22.1. Working closely with iwi and iwi trusts to seek victim impact statements for prosecution offences, facilitated by our Maori Partnerships team.

22.2. Keeping tangata whenua and iwi representatives informed in relation to high level enforcement action.

22.3. Ensuring consent conditions that require consultation and engagement with iwi are met by the consent holder.

22.4. Building Māori responsiveness capability within the compliance team to attend Te reo lessons at council.

23. It is becoming increasingly common for resource consents to include more complex conditions that better recognise Te ao Maori. For example, conditions requiring development of cultural monitoring plans in consultation with iwi/ marae/ hapū and treaty groups. Monitoring such conditions will even closer collaboration with tangata whenua.

24. Future areas of focus are:

24.1. Improving how we report incidents, particularly discharges to water, to tangata whenua and kaitiaki so we can inform their decision-making and their observations and involvement can inform cultural assessments.

24.2. Establishing regular meetings and workshops with tangata whenua across the region to further strengthen communication and relationships, build trust and increase accountability.

Financial and Resource Implications

25. There are no financial and funding implications associated with adopting the report.

Decision Making Process

26. 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:

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

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

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

26.4. There are no persons directly affected by this decision, although all those persons with an interest in management of the region’s natural and physical resources may have an interest in the report’s content.

26.5. 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

1. That the Corporate and Strategic Committee receives the report and recommends to Council to adopt the “2019-20 Compliance Annual Report” staff report for publication on the Hawke’s Bay Regional Council website.

2. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional Council:

2.1. 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.

Authored by:

Nick Zaman

Manager Compliance

Approved by:

Liz Lambert

Group Manager Regulation

Attachment/s

⇩1

HBRC Annual Compliance Report 2019-20

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: Report from the 11 November 2020 Finance Audit and Risk Sub-committee Meeting

Reason for Report

1. The following matters were considered by the Finance Audit and Risk Sub-committee (FARS) meeting on 11 November 2020 and are now presented for the Committee’s consideration alongside any additional commentary the Sub-committee Chair wishes to offer.

2. The purpose of the Finance, Audit and Risk Sub-committee, in accordance with its Terms of Reference, is to report to the Corporate and Strategic Committee to fulfil its responsibilities for:

2.1. The provision of appropriate controls to safeguard the Council’s financial and non-financial assets, the integrity of internal and external reporting and accountability arrangements

2.2. The review of Council’s revenue and expenditure policies and the effectiveness of those policies

2.3. The independence and adequacy of internal and external audit functions

2.4. The robustness of risk management systems, processes and practices

2.5. Compliance with applicable laws, regulations, standards and best practice guidelines

2.6. Monitor the performance of Council’s investment portfolio.

Agenda items

3. The Risk Maturity Roadmap item accompanied a bowtie analysis demonstration and updated the Sub-committee on the Regional Council’s implementation of the risk maturity roadmap activities, with the Sub-committee resolving:

3.1. Confirms that management actions undertaken and planned for the future adequately respond to the risk maturity roadmap that was approved by the Corporate and Strategic Committee on 10 June 2020.

3.2. Confirms that the bowtie analysis is an appropriate tool to drive risk maturity as defined by the risk maturity road map.

3.3. Requests that issues external to HBRC, such as joint ownership and responsibilities for assets that have an impact on HBRC are considered as part of the Risk Maturity Roadmap.

4. The Internal Audit Work Programme Update item updated the Sub-committee on the internal audit work programme and sought feedback on the newly developed reporting dashboards (attached), with the Sub-committee resolving:

4.1. Receives and notes the ‘Internal Audit Work Programme Update’ staff report and accompanying dashboards.

4.2. Confirms that management actions undertaken or planned for the future adequately respond to the findings and recommendations of the internal audits.

4.3. Confirms that the dashboard reports provide adequate information on the progress of corrective actions and the progress of the approved annual internal audit programme.

5. The HBRC Covid-19 Response Review Report item provided learnings and findings from the internal review of the Regional Council’s organisational response to the Covid-19 pandemic, with the Sub-committee resolving:

5.1. receives and considers the “HBRC Covid-19 Response Debrief and Learnings Report”.

5.2. notes the extended timeframe required to enhance the Regional Council’s suite of business continuity and recovery documents.

5.3. agrees support for the improvements proposed by staff.

6. Section 17a Review of the HBRC Works Group discussed in Public Excluded informed the Sub-committee of the outcomes of the recent Section 17A Review of Works Group undertaken by Morrison Low, agreeing to increase the size and scale of the Works Groups, and to introduce processes and tools to enable this, with the Sub-committee resolving:

6.1. receives and notes the Morrison Low “Section 17A Review of Works Group” report

6.2. agrees the associated implementation actions proposed by staff

7. The Verbal FUSE Project Update provided the Sub-committee with an update on the progress made to date implementing the new financial system (FUSE) as well as a rundown of the project’s benefits.

8. The Sub-committee Work Programme November 2020 Update provided an update on the overall work programme progress to date and advised that a report covering Council’s overall assurance framework will be prepared for the February 2021 FARS meeting, focussing and informing S17a effectiveness and efficiency conversations.

9. The 2019-20 Annual Treasury Report item provided an annual update of the Council’s investment activity and reported on the performance of the Council’s investment portfolio for the year ending 30 June 2020 and is attached in full.

10. The Q1 2020-21 (1 July – 30 September 2020) Treasury Report provided an update on treasury activity and reported on the performance of Council’s investment portfolio for the first quarter of the 2020-21 financial year.

Decision Making Process

11. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as all items were specifically considered at the Sub-committee level this item is for information only and the LGA decision making provisions do not apply.

Recommendations

That the Corporate and Strategic Committee receives and notes the report from the Finance, Audit and Risk Sub-committee.

Authored by:

Annelie Roets

Governance Administration Assistant

Leeanne Hooper

Team Leader Governance

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇩1	Internal Audit Work Programme Status Update Dashboard
⇩2	Internal Audit Dashboard
⇩3	HBRC Covid-19 Response Debrief Report
⇩4	FARS Annual Treasury Report

Internal Audit – Risk Management Maturity – June 2020
Risk, Governance, Policy and Accountabilities - to improve risk and assurance challenge. With clearer risk escalation.	Not Stated	Develop risk management policy and framework that includes roles and responsibilities. *Risk & Assurance Lead*	September 2020	Council approved single Regional Council risk management policy and framework.		Closed
Leadership and Direction - Improve linkage of risk informed decision making to strategy. Improving clarity of boundaries for decision making.	Not Stated	Develop a comprehensive risk appetite statement that defines tolerance levels for individual enterprise risks. ELT	March 2021	Redefine Regional Councils enterprise risks context to the new risk policy and framework.	Complete bowties for six enterprise risks and update the FARS risk report one pagers accordingly.	At risk – borders may limit access to trainer / facilitator. Viability of Zoom v delay will be analysed
Leadership and Direction - Risk system continuous improvement.	Not Stated	Incorporate into the risk policy and framework a risk vision. Tailor the Council’s risk policy and framework to align to the strategy. Develop a risk maturity roadmap to execute the risk vision. Risk & Assurance Lead	September 2020	Council approved risk policy includes a risk vision that aligns to the C&S approved risk maturity roadmap. And, the risk policy and framework tailored based on HBRC’s strategy.		Closed
People and Development - Risk roles ad responsibilities beyond the risk and assurance lead were not defined. With no risk related training.	Not Stated	Develop a competency framework to upskill staff on risk and embed the risk policy. Communicate and train BU on the risk policy and framework. Provide targeted training to specialist risk roles e.g. risk champions. ELT and Risk and Assurance Lead	October 2021		In conjunction with Group Managers identify a Risk Champion in each Group.	On track

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: Organisational Performance Report for period 1 July to 30 September 2020

Reason for Report

1. The attached Organisational Performance Report provides governors with information to track performance against the level of service measures set in the 2018 Long Term Plan. It describes situation-specific factors affecting the organisation’s ability to deliver on what it said it would. It also holds staff to account for non-financial and financial performance signaling through traffic light status reporting issues that may require management intervention.

2. At the meeting staff will present a prototype Organisation-wide Performance Dashboard that is a visual representation of the Organisational Performance Report. It presents the same information but in a much more user-friendly manner and will provide users with the ability to drill down and filter by area of interest. It is a work-in-progress so is not yet fully functional and the data in some cases is illustrative only. The intention is to replace the 80+ page report with the dashboard.

Content of the Report

3. The Organisational Performance Report is for Quarter 1 of 2020-21. The quarter is the three months from 1 July to 30 September 2020. The report contains three parts plus an Executive Summary with highlights and lowlights for the quarter.

3.1. Part 1: Significant Events or Programmes impacting this quarter. These tend to be cross-council so sit outside the groups of activities section

3.2. Part 2: Business Improvement measures which focus on how well we are performing across a number of corporate-wide measures such as health and safety incidents and response to customer feedback

3.3. Part 3: Groups of Activities with traffic light status and commentary on level of service measures and related 3-digit code workstreams.

4. Like the previous quarter this Organisational Performance Report includes wrap-up commentary on the impacts of COVID-19 lockdown on Council’s activities and related budgets, and to a lesser extent the drought.

5. This quarterly report includes commentary on capital expenditure for the first time. Improving the quality of this reporting will be a focus for the next quarter.

Dashboard

6. The dashboard to be presented at the Committee meeting is based on the information in the Organisational Performance Report. However, there is the opportunity to tailor the dashboard for different audiences by turning off/on different metrics.

7. For example, the Chair of the Environment and Infrastructure Committee (EICC) has indicated her desire for a dashboard to track how major environmental outcomes/projects are tracking and to see in one place the breadth of contributing work. This is to address a concern that narrowly focused papers to the Committee often feel adhoc and fail to give elected members a sense of the bigger picture.

8. Staff are working with the Chair to develop a dashboard for EICC early in the new year.

Background

9. This is the seventh Organisational Performance Report to be presented. Improvements continue to be made to the content to ensure the information is meaningful for governors and to the process for collating the information to reduce reporting burden for staff.

10. Staff complete their reporting in a software tool called Opal3 once actual financial results for the quarter are loaded on the 20^th of the month following the end of the quarter. Staff choose the status (red, amber, green) of non-financial results, but it is fixed against agreed criteria for financial results. For example, red is set at >$30,000 or >10% over or under budget. Staff are then required to provide commentary on what they did in the quarter in terms of actual non-financial performance and to explain any variations to budgets.

Change Between Quarters

11. The following graphs show change between quarters. The large increase in financial workstreams reported on this quarter is due to capital expenditure being included for the first time.

Next Steps

12. Further planned improvements to the Organisational Performance Report include setting targets for the business improvements measures and comparisons with industry benchmarks where possible. Work is underway in the Corporate Service Group to set targets for its functions such as customers experience and comms.

13. The dashboard will be finetuned and brought back to the Corporate and Strategic Committee at its next meeting 3 March 2021.

Decision Making Process

14. 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 Corporate and Strategic Committee receives and notes the “Organisational Performance Report for period 1 July to 30 September 2020” staff report.

Authored by:

Kelly Burkett

Business Analyst

Desiree Cull

Strategy and Governance Manager

Approved by:

James Palmer

Chief Executive

Attachment/s

⇩1

Q1 Organisational Performance Report - July to September 2020

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: 2020-21 Quarter 1 (1 July – 30 September 2020) Financial Report

Reason for Report

1. This item provides the Committee with financial results for the first quarter of the 2020-21 financial year.

Summary

2. There have been no significant unbudgeted items or areas of expenditure in the quarter.

3. Actual performance of investment income sources ie managed fund and dividend forecast are currently favourable, however it is too early to signal any full year expectations after one quarter.

4. Many of the variances in the financial report to 30 September are the result of; no phasing of budgets, timing of work programme delivery and accounting treatment adjustments.

Background to the Financial Summary

5. The FY20-21 annual plan budget was revised in response to the Covid-19 Pandemic. It includes conservative forecasting for investment income in-particular given the uncertainly around the economy and financial markets at the time of preparation and adoption.

6. The budgets presented have been updated to include the carry forwards from FY19-20 approved by Council.

7. For reporting purposes, the annual budget is divided evenly across the year with no phasing.

8. New loan funding is generally drawn down at the end of the financial year when the actual required funding is known.

9. All revenue and expenditure accrued at the end of the FY19-20 financial year has been recognised in the Q1 FY20-21 actuals.

Operating Expenditure

10. Across the Groups of Activities, expenditure is $1.6m below budget which is largely a reflection of the pro-rata budget comparative to the actual planned expenditure. Annual spend has considerable seasonality, particularly planting activity, which will occur towards the end of the FY. Future year reporting, from the new finance system will be phased across the year accounting for seasonality.

11. Strategic Planning expenditure continues to be delayed due to the TANK Plan Change 9 submission period being extended and delays to the Plan Change 7 (Outstanding Waterbodies) hearing.

12. Asset Management are the most underspent because of the timing of when maintenance takes place in the year, the seasonal nature of planting leading to more work in quarter 2 and 4, scheduled work is due later in the financial year (e.g. surveying is scheduled for the drier summer months).

13. Transport are underspent by $300k primarily due to the timing of the September invoice from Go Bus Transport for $287k which was processed into October.

Operating Income

14. Across all groups, income is $250k below budget.

15. Emergency Management is showing a $241k shortfall. This is due to year end accounting adjustment for the re-imbursement of the Covid-19 response welfare costs from NEMS (the re-imbursement was accrued as revenue in 19/20 to offset the cost in that year but the reversal of the accrual causes reduced income in 20/21 until the invoice is issued). The final invoice has not been issued as approval from NEMS is pending.

16. Consents and Compliance income is below budget, this is a result of the timing of invoicing. Invoices were raised post the quarter end date for the Q1 period.

17. Asset management income is $500k below budget, due to;

17.1. the revenue from harvesting (Tangoio reserve) is not due till later in the year,

17.2. NCC will be invoiced for its 50% share of the Westshore coastal works at the end of the year when costs are known,

17.3. the asset management team has stopped offering hydraulic modelling consultancy.

18. Regional income from investments is below budget by $1.2m. This is due in part to the timing of the forestry income from harvesting (Tutira) but mostly because of a difference in the accounting treatment for the budgeting and reporting of the managed funds.

19. The budget for managed funds income includes all forecast gains for the year, but actual income is split for accounting purposes.

20. Actual revenue from interest, dividends and realised gains are reported in operating revenue, with the remainder of the growth being in unrealised gains ($3.5m) which are recognised on the balance sheet.

21. Overall, the funds out-performed expectations, the combined growth of the managed funds in the 1st quarter was $3.8m compared to the budget of $1.397m.

22. Income was below budget by $3.3m, this is due to:

22.1. The timing of dividends received from HBRIC not due to the end of the calendar year

22.2. the Endowment Leasehold Rent affected by the timing of the 6-monthly payment to ACC

22.3. Fair value movements are recognised at year-end.

23. Note that a 5 cents per share dividend was announced by Napier Port Holdings on 18 November providing a dividend of $5.5m to HBRIC (the total budget was $3m for the year) with HBRIC directors to determine the dividend paid to HBRC. (As in prior years it is still expected that there will be an interim dividend paid in June 2021).

Capital Expenditure

24. IT expenditure is below budget due to delays in the Water Information Project caused by Covid-19. However, the FUSE (Finance System replacement) and Telephony projects are on schedule for delivery with expenditure expected to increase as the HR/Payroll, Finance, Supply Chain and Asset Management streams of FUSE kick-off.

25. Asset Management are performing some design reviews and expenditure is planned to ramp up through the year.

26. ICM is overbudget in income and expenditure due to the continued success of the Sustainable Homes programme. The programme is running at 44% of expected annual expenditure and 77% of expected annual income by the end of the 1st quarter.

27. Regional Income includes the water investment project which is undergoing site selection for a Heretaunga storage location with work commencing in the new calendar year.

28. Property, Plant and Equipment (PP&E) purchasing is under budget but is highly dependent on the timing of placing of orders and invoicing.

29. The Land and Buildings budget includes $2m for progression of a long term accommodation solution. Alternatives to a new purpose built building are being explored post Covid and the current preferred option is to compliment leasing more office space by utilising the $2M to repurpose the Raffles St building and renovate the Dalton Street ground floor.

Balance Sheet

30. Non-Current Assets have increased by $2.8m, PP&E, Infrastructure Assets and Intangible Assets has increased due to the ongoing capital expenditure noted above. Investment Property has decreased as Napier Endowment Leasehold properties are freehold and Financial Assets show the unrealised growth in the managed funds.

31. Current Assets have increased by $11.5m reflecting the rates revenue received in August and September resulting in a cash (& term deposit) increase of $9m with outstanding receivables increase of $2.5m.

32. Equity has decreased due to the current operating deficit offset by the unrealised gains in the managed funds.

33. Non-current Liabilities have increased due to a new $6.3m loan drawn down in July as delayed funding for the Sustainable Homes and Erosion Control projects offset by the principal repayments in the 1st quarter.

34. Current liabilities have increased by $10m due to the increase in income in advance from ratepayers ($16.2m) offset by decreases following the reversal of year-end adjustments in employee benefit liabilities and trade payables.

Reserves

35. Reserve movements are as expected based on the operating and capital income and expenditure to date. The deficit in the Healthy Homes Initiatives (Cleanheat/Sustainable Homes) reserve continues to grow as operating costs exceed the revenue from interest charges.

Other Information

36. Average annualised interest rates show the low returns on cash and term deposit holdings with an average 0.5% return while the managed funds have returned 7.73% when including realised and unrealised gains.

37. Accounts receivables shows an increase of $3m since year end due to the issuing of rates invoices. Payments in advance reflects the success of the updated rate collection policy with $18.7m in rates revenue received in advance as at 30 September 2020 compared to $3.7m at the same time in 2019.

Decision Making Process

38. 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 Corporate and Strategic Committee receives and notes the “2020-21 Quarter 1 (1 July – 30 September 2020) Financial Report”.

Authored by:

Tim Chaplin

Senior Group Accountant

Bronda Smith

Chief Financial Officer

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇩1

2020-21 Q1 Financials

2020-21 Q1 Financials

Attachment 1

HAWKE'S BAY REGIONAL COUNCIL
Balance Sheet
as at 30 September 2020
	Figures in Thousands	As At	As At
	ASSETS	30-Sep-20	30-Jun-20
	Non-Current Assets
	Property, plant & equipment	28,872	28,574
	Infrastructure assets	188,112	187,387
	Investment property	57,272	57,855
	Intangible assets	10,374	10,096
	Forestry assets	11,087	11,087
	Financial Assets	585,004	581,054

	Total Non-Current Assets	880,721	876,053

	Current Assets
	Inventories	36	452
	Trade & other receivables	14,198	11,327
	Other financial assets	2,057	2,057
	Cash and cash equivalents	15,530	6,522
	Total Current Assets	31,821	20,358

	TOTAL ASSETS	912,542	896,411

	NET ASSETS / EQUITY
	Accumulated funds	426,789	428,817
	Fair value reserves	408,160	406,465

	Total Net Assets / Equity	834,949	835,282

	LIABILITIES
	Non-Current Liabilities
	Borrowings	36,751	31,238
	Provisions for other liabilities & charges	11,458	10,783
	Employee benefit liabilities	676	520

	Total Non-Current Liabilities	48,885	42,541

	Current Liabilities
	Borrowings	3,525	3,650
	Income in Advance	18,901	2,695
	Provisions for other liabilities & charges	276	686
	Employee benefit liabilities	1,656	3,090
	Trade & other payables	4,350	8,467

	Total Current Liabilities	28,708	18,588

	TOTAL LIABILITIES	77,593	61,129

	TOTAL NET ASSETS / EQUITY & LIABILITIES	912,542	896,411

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 02 December 2020

Subject: The Regional Council’s Corporate Carbon Footprint

Reason for Report

1. This item provides the findings identified in a study conducted to establish Council’s carbon footprint relating to its corporate operations.

Executive Summary

2. The response to climate change is at the heart of core Council functions, and establishing a corporate emissions profile was a key first step in understanding the environmental impacts of conducting Council business, while looking for reduction opportunities.

Background

3. Following the FY19-20, staff undertook a process to establish Council’s corporate emissions profile. The ‘footprint’ scope and organisational boundary included the measurement of resources used to undertake daily business operations at all Council offices. This required data input across all office sites which included fuel use, travel and accommodation, vehicle use, electricity and gas use, waste, and outward freight data. Refer to page 3 of the EKOS Carbon inventory report attached.

4. A Senior Carbon Analyst from EKOS, Ian Challenger, undertook a peer reviewed carbon footprint calculation and provided a report on findings and carbon offsetting options.

5. Due to the disruption COVID19 had on Council operations we will a fine-tuning of baseline data for FY20-21, however this exercise has built a solid foundation that brings visibility to our environmental impacts, enabling us to better monitor and bring maturity to our footprint data collation going forward. All Council offices were closed for 1 month and took the following months thereafter to get to full staff occupancy. The closure of office facilities impacted energy use, waste, and freight and to some degree vehicle use, leaving a gap in annual data. Travel requirements were majorly impacted due to national COVID-19 restrictions and because of these impacts, staff expect there may be slight increase to Council’s carbon footprint profile next FY.

6. A stocktake of our emission sources gave perspective to Council’s reliance on fuel, especially diesel, to undertake programmed activities. With a goal of being carbon neutral by 2025, this study enables progress in making a calculated effort to monitor and plan emission reduction initiatives.

Discussion

7. The combined Council carbon footprint relating to daily business operations across all office sites totaled 884.44 tonnes CO₂e in the FY19-20.

8. Additional findings of interest include:

8.1. 86% of Council emissions stem from fleet use. This included the use of large plant such as diggers and mowers.

8.2. 4% of emissions relate to electricity use at Council offices.

8.3. The remaining 10% of emissions stem from flights (3%), gas (3%), plus freight and waste

8.4. 136 nights accommodation were provided for work related travel.

8.5. Staff travelled a total of 183,000 km’s by air. The highest sector flown was Napier/Wellington at 266 times, with the Napier/Auckland sector flown 126 times.

8.6. The number of letters sent via post in the FY19-20 was 243,712.

8.7. Through the data collation process an issue was discovered with the Waipawa office meter which impacted the usage data that was reported. The Waipawa office is assumed to have had a similar consumption to the Waipukurau site which has been added to footprint calculations. The electricity consumption (kWh) of all Council offices is as outlined below.

Dalton St	Guppy Rd	Station St	Raffles St	Wairoa	Waipukurau
258,147	59,983	24,723	16,789	10,108	9,097

8.8. Fuel data was collated from all three BP accounts. The organisational fuel consumption profile is as below:

Source	Diesel (l)	Petrol (l)
Bulk Diesel store – Guppy Rd	104,166
Works Group	50,293	3618
HBRC	101,055	26,693

Works Group

9. Through the data collection process, it was interesting to give visibility to the volume of diesel used by our Works Group, specifically to discover more diesel is consumed via the bulk fuel store when compared to the entire HBRC diesel fleet.

10. Given the community dependency on the Works Group emergency response function, the bulk diesel store facility was implemented as a strategic asset to provide a fuel supply contingency. The onsite bulk store provides efficient and convenient diesel supply to power diggers, trucks, tractors, generators, and light vehicles, on a daily basis.

11. Initial consideration has been given to reducing the Works Group emissions profile by committing to the implementation of tractors with higher emission control ratings, targeting Tier 4 machinery (increased fuel efficiency) through renewal schedules. Operating a modern fleet of tractors and mowers has increased productivity overall resulting in reduced engine hours to complete annual work programmes. The minor plant replacement schedule has also targeted equipment with an increased fuel efficiency such as new technology ‘Stihl fuel injected chainsaws’, and battery power tools where practical. In addition, opportunities to introduce electric ATVs will be explored as practical.

12. The option to incorporate carbon offsetting costs into contracted work will be considered going forward to assist with counteracting associated works group emissions. A fleet evaluation will be programmed for next financial year to investigate the prospects of balancing emission reduction opportunities while maintaining existing levels of service.

Fuel use

13. Council’s largest source of emissions relate to vehicle use. Electric vehicles are introduced to the fleet through replacement schedules when fit for purpose. Council currently runs a profile of fuel-efficient vehicles including 3 Hybrid’s, 6 Plug-in Hybrids, 2 Full electric vehicles and 2 electric motorbikes which have replaced traditional fuel counterparts.

14. Following this study, Council’s vehicle purchasing policy has been reviewed to provide a greater emphasis on and commitment to ‘Electric First’ vehicle procurement guidelines. Installation of additional charging stations have been programmed annually to facilitate electric vehicle uptake.

15. Through any planned building alterations, additional bike parking and changing room facilities will be catered for to encourage sustainable to and from work travel. This works in tandem with staff wellness initiatives and indirectly towards reducing the wider Council footprint.

16. The fuel used by backup generators is currently lumped in with the wider vehicle fuel consumption data. Reporting measures will be put in place to accurately record the fuel used for generators, so vehicle and plant fuel use can be monitored more accurately.

Travel

17. Travel emissions were relatively low this year due to COVID-19 restrictions, however as a result, COVID-19 became the catalyst to change the way meetings are conducted and foster a level of comfort in staff use of video conferencing facilities. Programmed updates to meeting room video conferencing facilities are planned for next year to keep up the momentum towards utilising this technology instead of travelling.

18. The travel policy will be reviewed to show approval thresholds around staff travel requirements and what is deemed essential and non-essential travel.

Waste

19. This study highlighted the need to establish a better way of monitoring waste to provide a baseline with increased accuracy. Waste data for the baseline footprint was collated via invoices and weekly estimates from key staff and cleaning contractors. Waste is currently measured in litres correlating to the bins collected which can dramatically vary in weight. Staff are investigating alternate waste collection opportunities where weight on collection data can be provided for more accurate measurements going forward.

20. An internal waste audit was conducted which indicated better signage, education and recycling facilities need to be provided to avoid confusion around recyclables.

Outward freight and post

21. Data was collated from courier suppliers, NZ post and invoices. Going forward, a process has been put in place for customer service staff to capture all outgoing freight for easy data collection next year. Post data will continue to be monitored, and hopefully, a reduction will be tracked over the coming years showing digital uptake of rates invoices and newsletters. It should be acknowledged that the conversion to digital agendas would have had a positive impact on Council’s waste and outward freight profile.

Energy

22. Following the initial footprint study, all Council office sites have been put on a monitoring and data reporting schedule which is the key first step in driving improvements. As we have seen at the Dalton Street facility, creating usage visibility in this space has enabled good reductions through education and corrective maintenance.

23. Energy audits will be conducted at all office sites next financial year looking for additional efficiency opportunities.

24. The energy consumed at the HBCDEM office was not included in the FY-19/20 baseline energy data. A process for collating correct energy information will need to be formed in the coming year to adequately establish consumption data relating to the shared occupancy of the leased HBCDEM facility.

Emission offsetting

25. Staff will begin to introduce emission reduction actions, however for those activities where there are no alternatives such as diesel 4x4 and digger use, Council has the option to offset all operational emissions at $33,500 per annum. Council can choose to uptake a ‘Climate Positive’ option, offsetting emissions by 120% for $40,000 per annum. Noting Council’s portfolio of forestry and open spaces, a review will be completed to confirm any existing offsetting potential and to also explore options to offset ourselves through planting initiatives.

Strategic Fit

26. Carbon naturality by 2025 – this study gave visibility to Council’s corporate carbon footprint, to better manage, monitor and drive reductions to meet this goal.

27. Accountability – holding ourselves to account by knowing Council’s environmental impacts and getting ‘our house in order’ by introducing emission reduction measures.

28. We will inspire – use our platform within the community to lead by example and introduce sustainable business practices in hope of influencing others.

Next Steps

29. The following actions will be put into motion immediately.

29.1. Review and update of EV first and Travel policies.

29.2. The installation of additional video conferencing facilities in meeting rooms for staff use.

29.3. Increase internal staff education efforts to put a spotlight on energy efficiency, efficient driving practices and correct recycling and waste disposal.

29.4. Implement better data collection processes for:

29.4.1. Outward freight and waste

29.4.2. Back-up generator fuel use

29.4.3. Out of town taxi use.

29.5. Progress with planned electric vehicle charging facility additions.

30. Through the ‘Commitment to Climate Change’ provision in the Long Term Plan, the below actions will be programmed for next financial year:

30.1. Conduct energy audits at all office sites to establish unrealised efficiencies

30.2. Conduct an evaluation of the Works Group fleet to establish any possible emission reduction opportunities.

30.3. Undertake a review to outline any existing carbon offsetting potential Council holds and explore and report on options to offset Council’s Carbon footprint through Council initiatives.

Decision Making Process

31. 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 Corporate and Strategic Committee receives and notes the “The Regional Council’s Corporate Carbon Footprint” staff report.

Authored by:

Stacey Rakiraki

Corporate Operations Manager

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇩1

EKOS HBRC Carbon Inventory Report

Tracking Status	Key
On track	Milestones on track to meet due date
At risk	Milestones falling behind putting at risk delivery on due date
Behind	Milestones outstanding due date will not be met
Closed	Corrective action fully implemented

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 Quarterly Update	s7(2)(b)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Internal Audit – Risk Management Maturity – June 2020
Finding / Theme	Priority Rating	Action and Owner	Due Date	Milestone Achieved Since Last Report	Milestone For Next Report	Tracking Status
Risk, Governance, Policy and Accountabilities - to improve risk and assurance challenge. With clearer risk escalation.	Not Stated	Develop risk management policy and framework that includes roles and responsibilities. *Risk & Assurance Lead*	September 2020	Council approved single Regional Council risk management policy and framework.		Closed
Leadership and Direction - Improve linkage of risk informed decision making to strategy. Improving clarity of boundaries for decision making.	Not Stated	Develop a comprehensive risk appetite statement that defines tolerance levels for individual enterprise risks. ELT	March 2021	Redefine Regional Councils enterprise risks context to the new risk policy and framework.	Complete bowties for six enterprise risks and update the FARS risk report one pagers accordingly.	At risk – borders may limit access to trainer / facilitator. Viability of Zoom v delay will be analysed
Leadership and Direction - Risk system continuous improvement.	Not Stated	Incorporate into the risk policy and framework a risk vision. Tailor the Council’s risk policy and framework to align to the strategy. Develop a risk maturity roadmap to execute the risk vision. Risk & Assurance Lead	September 2020	Council approved risk policy includes a risk vision that aligns to the C&S approved risk maturity roadmap. And, the risk policy and framework tailored based on HBRC’s strategy.		Closed
People and Development - Risk roles ad responsibilities beyond the risk and assurance lead were not defined. With no risk related training.	Not Stated	Develop a competency framework to upskill staff on risk and embed the risk policy. Communicate and train BU on the risk policy and framework. Provide targeted training to specialist risk roles e.g. risk champions. ELT and Risk and Assurance Lead	October 2021		In conjunction with Group Managers identify a Risk Champion in each Group.	On track

⇩1	2020 Auditor General - Managing Conflicts of Interest Guide
⇩2	Conflicts of Interest 1-page Quick Guide

Topic	Raised by