Unconfirmed

 

Minutes of a Meeting of the Regional Council

 

Date:                                  Wednesday 31 August 2022

Time:                                  1.30pm

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

 

Present:                             Cr R Barker, Chair

Cr W Foley

Cr C Foss

Cr N Kirton

Cr C Lambert (online)

M McIlroy (Māori Committee Co-Chair)

Cr H Ormsby

M Paku (Māori Committee Co-Chair)

A Tapine (Regional Planning Committee Co-Chair)

Cr J Taylor

Cr J van Beek

Cr M Williams

 

In Attendance:                J Palmer – Chief Executive

K Brunton – Group Manager Policy and Regulation

C Dolley – Group Manager Asset Management

I Maxwell – Group Manager Integrated Catchment Management

P Munro – Te Pou Whakarae Māori Partnerships

S Young – Group Manager Corporate Services

S Bell – Team Leader Strategy and Performance

D Cull – Strategy and Governance Manager

D Broadley – Marketing Communications Manager

S Bendall – Traverse Environmental

A Roets – Governance Advisor

 

 

 


1.        Welcome/Karakia/Apologies/Notices

The Chair welcomed everyone to the meeting and Pieri Munro opened with a karakia.

 

2.        Conflict of Interest Declarations

Cr Martin Williams noted that whilst he does not have a direct interest in matters relating to Item 13 ‘Freshwater Science Charges – Water Holdings Hawke’s Bay’, he was part of a legal team involved in  the implementation of those consents. 

There were no further conflicts of interest declared.

 

3.        Confirmation of Minutes of the Regional Council Meeting held on 27 July and the 23 August 2022

 

 

RC67/22

Resolution:

Minutes of the Regional Council Meeting held on Wednesday 27 July 2022 and Tuesday, 23 August 2022, copies having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Ormsby/van Beek

CARRIED

 

4.

Follow-ups from previous Regional Council meetings

 

The item was taken as read.

RC68/22

Resolution:

That Hawke’s Bay Regional Council receives and notes the “Follow-up Items from previous Regional Council meetings”.

Ormsby/Taylor

CARRIED

 

5.

Call for Minor Items not on the Agenda

 

Recommendation:

That Council accepts the following “Minor Items Not on the Agenda” for discussion as Item 11:

Topic

Raised by

There were no minor items raised.

 

 

6.

Significant Organisational Activities looking forward through September 2022

 

The item was taken as read. Discussions highlighted:

·        Although Council activities had been significantly impacted by recent flooding events in CHB and Wairoa, staff are now back at work and operations are returning to usual

·        Pump station consents -  Council manages 25 schemes across the region and some of these include pump stations, primarily to drain agricultural land. The Council is seeking consents for these pump stations

·        Regional Water Security programme - project 1 & 2 (Heretaunga Water Storage). Consultation with mana whenua beyond immediate hapū level is being undertaken as the projects have a wider impact   

·        A refresh on the Matariki Regional Economic Development and social inclusion strategy is underway. The HBRC water security programme sits under Pou 3 - for a resilient community infrastructure.  Matariki governance group (local government and tāngata whenua leaders) will continue to involved in water security discussions as part of the consultation process

·        Hawea Historical Park / Karamū Stream Diversion -   project has been slow moving and a revision of the operational plan is underway. Working collaboratively with hapū

RC69/22

Resolution:

That the Hawke’s Bay Regional Council receives and notes the Significant organisational activities looking forward through September 2022 staff report.

Foley/Foss

CARRIED

 

7.

Deliberations on the future of our coastline

 

Chris Dolley introduced the item which was taken as read.  Discussions noted:

·        Submissions Hearing was held on 23 August 2022

·        Council now needs to decide whether to agree in principle to taking charge of the coastal hazards strategy affecting the coastline Clifton and Tangoio; subject to confirmation through its Long Term Plan

·        A brief summary was provided on the activities undertaken over the last eight years

·        An independent funding review undertaken by Raynor Asher QC, found that HBRC is best placed to ‘take charge’ of all aspects of adapting to the coastal hazards involved. The review also recommended that an advisory committee be established to support HBRC, with membership being the same as the existing Coastal Hazards Joint Committee

·        Currently, no physical works recommended in the Strategy are budgeted for in any of the partner Council’s Long Term Plans

·        A total of 60 submissions were received with 87% supporting option 1  - HBRC to take charge of the Coastal Hazards Strategy.

·        Council will not immediately adopt the Strategy. The public will be further consulted on this through the Long Term Plan process. It is expected that if the Strategy is adopted this will happen in August 2023

·        The Strategy continues to be worked upon. Matters being considered include how trigger points (that might initiate infrastructure decisions) are identified and how funding (rates) might be managed

·        Council is satisfied that the consultation process undertaken from 1-31 July 2022, was sufficient, raised awareness in the community and complied with Section 82 of the Local Government Act.

RC70/22

Resolution:

That Hawke’s Bay Regional Council:

1.      Receives and considers the Deliberations on The future of our coastline staff report in conjunction with the written and verbal submissions previously received and considered by Council.

2.      Agrees in principle to take charge of adapting to Coastal Hazards Strategy between Clifton and Tangoio, subject to confirmation through its Long Term Plan 2024-2034.

Williams/van Beek

CARRIED

Against: Kirton

 

8.

Report and Recommendations from the Corporate and Strategic Committee

 

The report was taken as read.

2021-2022 Carry Forwards: 

·        There have been many challenges delivering on projects due to ongoing Covid-19 interruptions, floods and rain events, staff vacancies and contractors being unavailable

·        The Council has made changes to the proposed out year financial profile, particularly across capital and borrowing, to reflect a recalibration on what is believed to be deliverable in the upcoming financial year. Executive Leadership team and Managers are more confident that the planned projects are deliverable in 2023

HBRIC Quarterly update:

·        HBRIC is able to fund its annual operations and meet Council’s dividend expectations without recourse to borrowing or further drawdown of its overall capital gains from within its investment portfolio

·        HBRIC remains aware of the need to proactively optimise its profitability and yield in the current uncertain financial conditions.

RC71/22

Resolution:

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

1.        Receives and considers the Report and recommendations from the Corporate and Strategic 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 these issues without conferring directly with the community or persons likely to have an interest in the decision.

Hawke's Bay Regional Council shareholding in the Regional Sector Shared Services Organisation (RSSSO)

3.        Notes the approach to shareholding and appointments of directors related to establishing the Regional Sector Shared Services Organisation, and as incorporated into the Shareholders’ Agreement and Constitution.

4.        Delegates authority to the CEO to sign the Shareholder’s Agreement - Deed of Accession on behalf of the Council.

2021-2022 Carry Forwards

5.        Approves the carry forward of all expenditure requests from the 2021-2022 to the 2022-2023 budget, being:

Operating expenditure carry forward requests

Activity / Project

Amount Requested

Source of funds

General

Reserve

External

Debt

Integrated Catchment Management (ICM)

 

 

 

 

 

1

Biodiversity

$712,566

 

 

$512,566

$200,000

2

Erosion Control Scheme grants

$324,000

 

 

 

$324,000

3

Predator Free Hawkes Bay

$82,000

$18,224

$42,522

$21,255

 

4

Environmental Enhancement Programme

$293,000

$113,543

 

$179,457

 

5

Air quality science

$10,000

$10,000

 

 

 

Asset Management

 

 

 

 

 

6

  Makara Dam

$100,000

$14,099

$85,901

 

 

Governance & Partnerships

 

 

 

 

 

7

Climate change engagement

$80,000

 

$80,000

 

 

8

Tāngata whenua Partnerships

$300,000

$300,000

 

 

 

9

Corporate sustainability

$33,000

$33,000

 

 

 

Policy & Regulation

 

 

 

 

 

10

Kotahi (policy & planning)

$1,000,000

$1,000,000

 

 

 

11

Enforcement proceeds

$244,000

$244,000

 

 

 

Transport

 

 

 

 

 

12

On Demand/My way

$124,388

 

$124,388

 

 

Other

 

 

 

 

 

13

Staff remuneration

$729,000

$729,000

 

 

 

Total

$4,031,954

$2,461,866

$332,811

$713,278

$524,000

Capital expenditure carry forward requests

Activity / Project

Amount Requested

Type of funding

Reserve

Debt

Integrated Catchment Management (ICM)

 

 

 

1

3D Aquifer mapping

$294,931

 

$294,931

2

Hydrodynamic modelling

$25,000

 

$25,000

3

SOE Ground water monitoring drilling

$176,903

 

$176,903

4

Right Tree Right Place (RTRP)

$507,000

$507,000

 

5

Ruataniwha ground water model

$325,877

 

$325,877

6

LiDAR Mapping

$187,956

 

$187,956

7

Enviro info technical equipment

$105,000

$105,000

 

Asset Management

 

 

 

8

Clive river dredging

$100,000

$100,000

 

9

Flood warning system (Mt Misery)

$50,000

 

$50,000

10

Forestry (Tangoio)

$30,388

$30,388

 

11

Hawkes Bay Trails/cycleways

$100,000

 

$100,000

12

Heretaunga Plains flood control scheme (HPFCS)

$698,687

$546,437

$152,250

13

IRG HPFCS

$1,583,578

$1,583,578

 

14

Regional Parks

$247,854

 

$247,854

15

Water Security

$1,745,825

$1,745,825

 

Corporate Services

 

 

 

16

Office renovations

$1,375,025

$70,944

$1,304,081

17

Fleet

$55,448

$55,448

 

18

Radio network

$203,686

$203,686

 

19

ICT network & equipment

$306,340

$34,670

$271,670

20

ICT projects

$1,200,000

 

$1,200,000

Total

$9,319,498

$4,982,976

$4,336,522

Reports Received

6.        Notes that the following reports were provided to the Corporate and Strategic Committee:

6.1.         1 April – 30 June 2022 Financial Report

6.2.         HBRIC Quarterly Update

6.3.         Organisational Performance Report for the period 31 March – 30 June 2022

6.4.         2021-2022 Annual Report – Interim Non-Financial Results

6.5.         Hawke's Bay Tourism Six-Monthly update

6.6.         Report from the Finance Audit and Risk Sub-committee meeting.

Kirton/Foss

CARRIED

 

13.

Freshwater Science Charges - Water Holdings HB

 

 James Palmer introduced the item and gave an overview on s.36 freshwater science charges attributable to resource consents that are currently unable to be exercised.  Discussions highlighted:

·        Council is required under the Resource Management Act 1991, to undertake State for the Environment monitoring across the region, which involves gathering environmental information, scientific data collection that provides evidential base for the Council to develop and administers the Resource Management Plan and the Regional Coastal and Environmental Plan. This enables the Council to make consenting decisions in relation to specific activities or discretionary matters that might require authorisation

·        These science activities costs approx. $10m p.a.

·        Section 36 charges help pay for the water science and monitoring which enable the Council to make planning and consenting decisions on the region’s freshwater resources

·        Council has a policy to recover 35% of the total cost of its science effort (water science and monitoring) from the resource consent holder where there is a water take or discharge involved. The cost recovery occurs under Section 36 of the Resource Management Act 1991 that enables Councils to collect charges from consent holders

·        The matter before Council today, is an unusual set of consents held by Water Holding HB Ltd. These are unusual in their scale and the total volume of water take. The authorisations that exists under these consents are the largest collective water take consents by volume in the region and therefore attract the largest portion of the water science charges

·        The consents were initially obtained from HBRIC for the development of the Ruataniwha Water Storage Scheme, then transferred to CHB Water Holdings, more latterly Water Holdings HB (WHHB)

·        WHHB has been kept aware of the outstanding charges. These have increased considerably since a change in methodology used by Council to apportion science charges. These were the subject of public consultation during the 2021-2031 Long Term Plan (carried out in 20121-2022); charges are now based on a regional basis rather than a zonal basis

·        Council now needs to consider whether to continue to apply its policy and require full payment of these charges or whether to defer them whilst issues around the exercising of the consents are navigated. This latter option would be a departure from Council’s existing policy and would be unusual

·        Council should consider whether the charges are ‘reasonable’ given that the consents are unable to be legally exercised, regardless of the intentions or actions of the consent holder. WHHB is not seeking a waiver of the charges at this time, but are seeking deferral of charges until the consent can be exercised

·        Council staff will review the policy around the Section 36 charges

·        The amount outstanding  is currently $259,805 (past two years) with $157,860 for the 2022-2023 year due to be met by March 2023. Council staff will continue to work with WHHB to come to a mutual agreement around collecting the outstanding fees and charges

·        The Hawke’s Bay Regional Council voted to defer the collection of WHHB outstanding science charges until the end of the financial year – June 2023. Councillors in favour were Charles Lambert, Will Foley, Jeff van Beek, Craig Foss and Jacqueline Taylor. Councillor that voted against the motion were Martin Williams, Rick Barker, Neil Kirton and Hinewai Ormsby.

RC72/22

Resolution:

That Hawke’s Bay Regional Council:

1.      Receives and considers the Freshwater Science Charges - Water Holdings HB staff report.

2.      Agrees that the decisions to be made with regard to the previous years’ outstanding charges and current years accruing charges 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.      To defer collection of current outstanding charges until the end of the current financial year and that all outstanding science charges will be due and liable in total.

Lambert/Taylor

5 Councillors namely Charles Lambert, Will Foley, Jeff van Beek, Craig Foss and Jacqueline Taylor in favour/
4 Councillors namely
Martin Williams, Rick Barker, Neil Kirton and Hinewai Ormsby against

CARRIED

 Motion by Cr Martin Williams:

 

4.      That staff advise on options for an amendment to the Long Term Plan, at the soonest possible opportunity, to ensure that Council takes a consistent approach to all consents that have a legal impediment to being exercised that is beyond the control of the consent holder.

Williams/Foss

CARRIED

Against Barker

 

9.

Affixing of the Common Seal

 

Item was taken as read.

RC73/22

Resolution:

That Hawke’s Bay Regional Council:

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.

2.     Confirms the action to affix the Common Seal.

van Beek/Taylor

CARRIED

 

10.

Councillors' Reports from Meetings of Outside Bodies

 

There were matters raised.

RC74/22

Resolution:

That Hawke’s Bay Regional Council receives and notes the “Councillors' reports from meetings of Outside Bodies”.

van Beek/Taylor

CARRIED

 

11.

Discussion of Minor Items not on the Agenda

 

12.

Confirmation of Public Excluded Minutes of the Regional Council Meeting held on 27 July 2022

RC75/22

Resolution:

General subject of the item to be considered

Reason for passing this resolution

Grounds under section 48(1) for the passing of the resolution

Napier Port presentation

7(2)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

7(2)s7(2)(j) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Chief Executive Performance and Remuneration Review

 

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Foss/van Beek

CARRIED

 

12.      Confirmation of Public Excluded Minutes of the Regional Council Meeting held on 27 July 2022

RC76/22

Public Excluded Minutes of the Regional Council meeting held on Wednesday, 27 July 2022, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Foss/van Beek

CARRIED

 

 

Resolution

RC77/22      The meeting went into public excluded session at 4.23pm and out of public excluded session at 4.24pm.

Foss/van Beek

CARRIED

 

Closure:

There being no further business the Chair declared the meeting closed at 4.24pm on Wednesday, 31 August 2022. Pieri Munro led the Council in closing the meeting with a karakia.

 

Signed as a true and correct record.

 

 

 

DATE: ................................................                         CHAIR: ...............................................