Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Due Date	Status Comment
1.	Strategic Partnerships	Bring paper to Council for discussion	AN/EL	May 2011
2.	Land Management Work programmes	A further report on resourcing issues be prepared	MA/AN	Early 2011	2011/12 operating plan to be prepared for consideration by AM&B Committee at May meeting
3.	General Business	CDEM Joint committee agenda and minutes to be distributed to councillors	AN	Immediately	Confirmed that Councillors are on the distribution list
4.	General Business	Councillors to receive an update from those attending Zone 2 Local Government meetings	FW	Immediately	Will be included in the Chairman’s monthly report in future

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 April 2011

SUBJECT: Hawke's Bay Tourism Options: Unincorporated Joint Venture and Incorporated Limited Liability ModeLS

REASON FOR REPORT

1. This report sets out the options covering organisational structures for Hawke’s Bay Tourism, to be effective from 1 July 2011, for Council’s consideration.

Background

2. At its meeting on Wednesday 15 December 2010 Council approved the creation of a transitional/establishment Board within Hawke’s Bay Regional Council’s jurisdiction to oversee the six months (January 2011 to June 2011) performance and expenditure of the Regional Tourism Organisation (RTO). Council further noted that the Transition Board was to be made up on three persons; the Chair of the Wine Country Tourism Organisation Board, an external tourism advisor, and the Chief Executive (or his delegate) from the Regional Council.

3. The Transition Board of Hawke’s Bay Tourism has been operating under an (informal) unincorporated joint venture. The terms of that arrangement are recorded in a Joint Venture document prepared late last year. That document has not been finalised or signed and may no longer be required if the proposal set out in this report is adopted in its place.

4. In the context of the future operation of the Hawke’s Bay Tourism a further option involving an incorporated limited liability company has been proposed in terms of corporate structure.

5. Both proposals require further debate and additional detail and may involve consultation with those organisations and entities who have pledged money over the next three year horizon.

Options for the Structure of Hawke’s Bay Tourism

6. Council’s lawyers, Sainsbury Logan and Williams, have provided the analysis of options as outlined below.

A) Unincorporated Joint Venture Model

7. This option was originally put up to Council as a model which would best serve the purposes of the Council and industry stakeholders who would each be required to contribute to the funding of the entity.

8. In summary, the basic concept is as follows:

8.1. An incorporated joint venture by the name of Hawke’s Bay Tourism (HBT) would be formed.

8.2. The rights and obligations of the parties would be detailed in a joint venture agreement (a draft of which was prepared at the time it was first proposed in late 2010).

8.3. It is consistent with the resolution of the Council on 22 September 2010 that “…subject to the Tourism Sector demonstrating a multi-year financial commitment to Tourism promotion, [to split] the Tourism component from Venture Hawke’s Bay and governing this activity through an industry led Board, noting however the following caveats; Regional Council would retain financial control via its finance function; and the staff would remain Regional Council employees.”

8.4. The joint venture would be funded partly through public moneys provided by HBRC and partly through private investment provided by the commercial community of Hawke’s Bay through Hawke’s Bay Wine Tourism Associated incorporated (“HBWCTAI”).

8.5. The key objectives of the joint venture would be set out in a mission statement adopted by the board of management of the joint venture.

8.6. The board of management would comprise four board members appointed by HBWCTAI and one board member appointed by HBRC. The chairperson would be appointed from amongst the five board members.

8.7. The joint venture would be for an initial period of three years unless extended by mutual agreement between the parties.

8.8. HBWCTAI would provide the sum of $160,000.00 per annum (funded through private stakeholder members). The balance required to fund the operation of the joint venture would be provided by HBRC under a funding agreement containing KPIs.

8.9. The joint venture would not constitute a Council Controlled Organisation within the meaning of that term in section 6, Local Government Act 2002 (noting the 50% control or director appointment threshold).

8.10. Employees might be either seconded from HBRC and remain employees of HBRC or alternatively be engaged by the Joint Venture direct (namely through HBRC and HBWCTAI as joint employers).

8.11. Regular reporting (including financial) requirements would be set in place.

8.12. HBRC would have full access to all financial records of the joint venture.

8.13. Aspects of the unincorporated joint venture model were made the subject of comment and a recommendation from Audit New Zealand (see letter dated 26 October 2010 from Mark Maloney, Director, Audit New Zealand) to Andrew Newman.

8.14. A diagram setting out the proposed structure is set out in Attachment 1.

Advantages/Disadvantages

9. The following table sets out the relative advantages and disadvantages of this proposed structure.

Advantages	Disadvantages
Puts in place accountabilities and incentives for the tourism sector and therefore overcomes the primary deficiency that the current arrangement has.	Exposure to the contract obligations without limited liability protection. This would apply to any major contracts entered into by the joint venture.
Would allow for the retention of the expertise of the Advisory Board (in another form).	There is a risk that the joint venture might be deemed to be a Council Controlled Organisation which would entail onerous accountability requirements.
Accountability and accounting requirements are relatively simple and straight forward.	Risk of loss of brand recognition if not managed appropriately.
Representative Board of Management with qualities and skills to match.	Cost of maintaining three structures (unincorporated joint venture, incorporated society and brand trust).
Major funder HBRC obtains a voice through appointment of a director on the Board of Management.	No guarantee of survival after three years.
Appointment of directors subject to a standard application process and appointment on merit.	Industry subscribers will be changed from a subscription to a user-pays basis.
HBRC as major funder can prescribe the deliverables (KPIs) and failure to deliver may restrict or cancel funding.
Advantages	Disadvantages
IP is protected by retention in the Brands Trust.
HBWCTAI retains a democratic voice.
The joint venture can invoice for services provided to members of HBWCTAI.
Flexibility in and around human resources where staff can be either seconded from HBRC or engaged direct by the joint venture.

B) Incorporated Limited Liability Model

10. This option is put up as a potential permanent corporate structure which, in time may well be self sustaining (viz. completely industry funded).

11. In summary, the basic concept is as follows:

11.1. A company by the name of Hawke’s Bay Tourism Limited (HBTL) would be formed.

11.2. The sole shareholder of that company would be HBWCTAI.

11.3. HBWCTAI appoints four out of five directors on the Board of HBTL.

11.4. HBRC contracts with HBTL to provide annual funding in return for compliance with agreed key performance indicators (KPIs).

11.5. HBRC, for as long as it is contracted to provide funding to HBTL, has the right to appoint one director to the board of HBTL.

11.6. The intellectual property in the current Wine Country brand and the new Hawke’s Bay Tourism brand (currently the subject of a trade mark application by Venture Hawke’s Bay) is to be held in trust for tourism in Hawke’s Bay. A new brands trust is envisaged for the purpose of holding that IP. However, whichever entity holds the intellectual property, there will be a licence arrangement with HBTL which allows the use of the intellectual property held by the Trust on a perpetually renewable basis.

12. A diagram setting out the proposed structure is set out in Attachment 2.

Corporate Governance

13. HBTL will have a five member board of directors. As indicated, four of those will be appointed by HBWCTAI and one appointed by HBRC (but only for as long as there is a funding agreement in place with HBRC). The chairperson will be appointed by the five directors.

14. HBWCTAI will be the sole shareholder and will be required to approve any major transaction which involves more than 50% of the assets of the company, the sale of any part of the undertaking of the company, any change in the constitution and its voluntary liquidation. It is possible, through the funding contract with HBRC, for the company to require that HBRC be consulted on any one or all of the activities outlined. That would be the case only for as long as HBRC provided funding to the company.

15. An alternative or concomitant to this would be for HBRC to take a shareholding interest in HBTL on the condition that the shares might be relinquished at the point where HBTL is able to establish its self-sufficiency and that the shareholding would be less than the 50% threshold which would make the company a Council Controlled organisation and therefore change the dynamics of the financial reporting requirements.

16. The general reporting requirements for the company can be prescribed in the constitution so that at least no less than annually, the board of HBTL is required to report to its shareholder HBWCTAI (and by inference, HBRC).

Checks and Balances

17. The activity of the company will be governed by the board of directors who must act in the best interests of the company but also must take into account the requirements of its sole stakeholder HBWCTAI. It will also be required to report and adhere to KPIs prescribed in the funding contract with HBRC.

18. HBWCTAI may either preserve its current form (namely, an elected board with a chairperson and secretary) or pair down its current structure to a smaller and more manageable unit. It will still be required to have an AGM and will still be required to have members, although (subject to the board of HBWCTAI determining the correct levels) at a peppercorn subscription for those who are involved in the industry. In return for the subscription amount, the members will be entitled to attend the AGM and elect the members of the board and the chairperson of HBWCTAI. It is envisaged that the chairperson of HBWCTAI will ex officio be automatically appointed a director on the board of HBTL. For brand consistency, it is proposed that HBWCTAI will change its name by removing the words “Wine Country” so that it will become Hawke’s Bay Tourism Association Incorporated.

19. The remaining directors on HBTL need not necessarily be members of HBWCTAI and it would be envisaged that the appointment of directors could be filled by way of advertisement, application, vetting and appointment on merit in the normal course.

20. In this way, the democratic process involved amongst members who are part of the tourism industry in Hawke’s Bay will have a voice. It is subject to the ordinary rules regarding election of officers and attempts by lobby groups to hijack the process will be part and parcel of any of these arrangements.

21. The concern just raised will be countered to some extent by the funding contract with HBRC. Provided the KPIs are clearly spelled out then HBRC has the ability to terminate or restrict funding if HBTL appears incapable of delivering the KPIs. The addition of a director appointed by HBRC will also give a voice to the major funder but it must be appreciated that HBRC would not have a realistic voting influence on the ultimate outcome.

Protection of Intellectual Property

22. It is a common method adopted by a number of ventures that any intellectual property of value is held in a trust and provided on a licence arrangement to the operating entity (in this case HBTL).

23. The trust objects would be for the benefit of tourism in Hawke’s Bay. The critical protection offered by this arrangement is that if there is financial instability or (ultimately) liquidation, the intellectual property is preserved because the licence can then be terminated and the intellectual property will never pass into the ownership of the company and be subject to the control of a liquidator or a group of creditors. Currently there is a Wine Country Brand Trust which holds the existing Wine Country intellectual property. That intellectual property we understand is subject to an existing trademark. Moves have been made to proceed with the trade marking of the Hawke’s Bay Tourism logo. It is appropriate that the trademark application be commenced by HBRC (through Venture Hawke’s Bay) but that the trademark itself be held by a new Trust (say) Hawke’s Bay Tourism Brand Trust formed for that purpose. It might be appropriate for the existing Wine Country intellectual property to be transferred to the new Trust (at value) and for the existing Wine Country Brand Trust to be dissolved.

Advantages/Disadvantages

24. The following table sets out the relative advantages and disadvantages of this proposed structure:

Advantages	Disadvantages
Recognised corporate structure	Cost of maintaining three structures (company, incorporated society and Trust)
Limited liability for its sole shareholder	HBWCTAI sponsors have little or no control (note: sponsors may rely on the HBRC KPIs in the funding contract)
Representative board of directors with qualities and skills to match	No guarantee that the funding contract will be renewed after 3 years
Major funder (HBRC) obtains a voice through a specially appointed director of the board	Requirement to keep HBWCTAI alive and holding annual general meetings may be problematic
Appointment of directors subject to a standard application process and appointment on merit	Industry subscribers will be changed from a subscription to a user pays basis
Director appointments are made by the stakeholder (4) and major funder (1)
Chairperson of HBWCTAI automatically sits on the HBT board of directors
Major funder prescribes deliverables (KPIs) failure to deliver may restrict or cancel funding
IP is protected
Members of HBWCTAI have a democratic voice
HBT as a service provider can invoice for services provided to members of HBWCTAI
Flexibility in and around human resources where staff can be either seconded from HBRC or engaged direct by HBT.

Summary

25. Both of the tables setting out the advantages and disadvantages of each model represents an attempt to illustrate the differences between the two options in an endeavour to assist in choosing a sustainable mechanism for delivering value to industry members long term.

26. The checks and balances provided by each option for all of the stakeholders may appear cumbersome but are likely to be considered as necessary so that the resulting organisation is not ultimately “hijacked” by one lobby group or another.

27. Whatever the choice the proposed structure must attempt to provide a balance between partly private and partly public funded activities in a business environment where adequate protections exist.

28. Audit New Zealand has been asked to review the structures proposed in this paper and the comments received from Audit are appended as Attachment 3. The previous letter from Audit New Zealand dated 26 October 2010 appears as Annex A to Attachment 3 for reference. The comments made by Audit New Zealand cover not only comments on structure but also issues relating to accounting treatment of RTO final accounts and the audit of such accounts. There will need to be further discussion with Audit New Zealand on these accounting and audit issues which would appear to be equally relevant to either option in this Council paper.

29. If the recommendation in this paper is adopted by Council, then list of tasks (Action Plan) is provided as Attachment 4, so the new Company could be operating from 1 July 2011.

DECISION MAKING PROCESS

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

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

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

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

30.4. The persons affected by this decision are all members of the community that either directly or indirectly benefit from tourism activity within the region.

30.5. This paper clearly sets out the options for the structure of Hawke’s Bay Tourism going forward into the 2011/12 year.

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

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

RECOMMENDATIONS

That Council:

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

2. Resolves that the preferred option for the carrying out of Hawke’s Bay Tourism activities commencing 1 July 2011 is the Incorporated Limited Liability Model as set out in this paper.

3. Notes that the support for the Incorporated Limited Liability Model reflects the protection that a limited liability status provides to the Council, the ability to control performance through key performance indicators entrenched in the funding contract, and the advantage that in the long term, a limited liability company will move to a self-sustaining basis once the operation has proved its worth over the initial three year period.

Paul Drury

Group Manager

Corporate Services

Andrew Newman

Chief Executive

Attachment/s

1 View	Unincorporated Joint Venture Model
2 View	Incorporated Limited Liability Model
3 View	Report from Audit NZ
4 View	Action Plan

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 April 2011

SUBJECT: Heretaunga Plains Urban Development Strategy - Establishment of Implementation Committee

REASON FOR REPORT

1. This report seeks Council’s approval for the establishment of a Joint Committee to oversee the implementation of the Heretaunga Plains Urban Development Strategy (HPUDS Implementation Committee) for an initial term of five years.

Background

2. This proposal arises from the adoption of the Heretaunga Plains Urban Development Strategy by Hastings District, Napier City and Hawke’s Bay Regional councils in August 2010.

3. The strategy takes a long term integrated view of urban land use and infrastructure. It provides an overall framework for aligning plans and strategies of organisations that deal with urban planning, including the Regional Land Transport Strategy.

4. The strategy contains a large number of actions along with an implementation structure to ensure that the strategy is given effect to.

Implementation Structure

5. The structure outlined in the adopted Strategy includes an Implementation Committee (political level), and an Implementation Management Committee (staff level).

6. The membership proposed in the Terms of Reference is along the same lines being two councillors from each of the councils and Mana Whenua representation.

7. For the Implementation Committee, two Mana Whenua representatives are proposed. The appropriate level and process for inclusion of Mana Whenua representation will need to be decided and it is suggested that that aspect be left to the Implementation Committee to decide.

8. Hastings District Council has already endorsed the establishment of this Joint Committee and the terms of reference. In addition, they agreed that the two Mayors and the Chair of the partner councils should be ex-officio members of the Joint committee.

9. Councillors Ru Collin and Mick Lester have been appointed to represent Hastings District Council on this Committee.

10. The terms of reference for the Implementation Committee is contained in Attachment 1 and it should be read in conjunction with the draft Memorandum of Agreement in Attachment 2. It is proposed that a request be made for the Implementation Committee to review the Draft Memorandum of Agreement and make recommendations back to the three partner councils for its adoption.

Implementation Actions

11. The Strategy contains over 60 specific actions. Not all of these will need to be overseen by the Implementation Committee. Many actions are already part of the current work programmes of the three councils and other agencies (e.g. Hawke’s Bay District Health Board and New Zealand Transport Agency) or are planned in the near future. There are a number, however, which are specifically allocated to the Joint Committee to complete as follows.

11.1. Establish a Strategic Partners Forum for on-going input and to assist with HPUDS implementation.

11.2. Establish a Heretaunga Plains mana whenua forum for ongoing input and to assist with HPUDS Implementation.

11.3. Sign a Memorandum of Agreement for HPUDS implementation.

11.4. Te Tiriti o Waitangi - Discuss and confirm:

· the best model for implementation of HPUDS

· roles and responsibilities of mana whenua, partner councils and the New Zealand Transport Agency

· a best practice engagement/participation model for HPUDS that reflects the relationship and context of Te Tiriti.

11.5. Advocate to central government on behalf of the Heretaunga Plains to ensure national legislation and national funding policy frameworks meet local needs and provides a framework for local action.

11.6. Ensure the Regional Land Transport Strategy, Regional Land Transport Plan and National Land Transport Plan reflect the Strategy objectives.

11.7. That the Strategy be reviewed every five years after the results of the national census are available. In addition, if there is a substantial change affecting the assumptions that underlie the Strategy then a review of strategy actions will commence at the discretion of the strategy partners.

11.8. Agree an implementation funding formula between the council partners for collaborative HPUDS implementation.

11.9. Undertake an annual risk assessment for the strategy. The assessment should cover mitigation, adaptation and resiliency where necessary.

11.10. Development and consideration of a policy position in respect of a Heretaunga Plains approach to the funding of recreation, arts, and cultural facilities and open space.

11.11. Development and consideration of a policy position on the use of a targeted Heretaunga Plains “green rate” for the purchase and protection of land, such as open space, protection of ecological areas, and significant landscapes.

11.12. Investigate potential for a coordinated approach to the identification, planning, provision, use and maintenance of regional open space, including the development and implementation of a regional/sub-regional park network, and recreation and sports networks.

11.13. Advocate to Central Government and other agencies the need for affordable housing provision in the Heretaunga Plains.

11.14. Investigate potential funding mechanisms to ensure that transport projects are completed on time, including:

· National Land Transport Fund

· government grants

· development contributions

· rates and other council revenue

· tolls.

12. In addition there are also specific actions assigned to the proposed Implementation Management Group (IMG) comprising officers from the three partner councils, NZTA and Maori interests which that group may wish to get some political guidance on.

13. A full copy of the HPUDS document is available on www.hpuds.co.nz. Discussion and recommendations concerning Governance and Management Implementation arrangements commence on page 66.

14. While the terms of reference refer to delegations to the Implementation Committee, none of these relate to Council expenditure or legal or process responsibilities and obligations under the Resource Management Act. Accordingly, any recommendations of the Implementation Committee concerning these matters will need to be reported back to the respective council(s) for formal resolution.

Options

15. The following options are available to Council:

15.1. Option 1: Endorse the establishment of the Heretaunga Plains Urban Development Strategy Implementation Committee as recommended in the adopted Strategy document.

15.2. Option 2: Endorse the establishment of the Heretaunga Plains Urban Development Strategy Implementation Committee and the associated terms of reference with any other changes required by Council.

15.3. Option 3: Decline to endorse the establishment of the Implementation Committee and implement the Strategy through the traditional processes of the three partner councils.

16. It is noted that in other regions where similar urban development strategies have been adopted, such implementation arrangements have been put in place and are operating successfully. While some of those regions are under significantly greater growth pressures, the twin city nature of the Heretaunga Plains urban settlement pattern arguably provides a strong case for coordinated implementation management even in the absence of strong population and household growth demands.

17. Staff recently attended a SmartGrowth (BOP) Implementation Management Group meeting and the participants of that group endorsed the benefits of the structure, not just for the coordinated implementation of the strategy but also for the relationship building that such forums provide at both political and staff levels.

18. The proposed Terms of Reference has been reviewed by staff from the three partner councils and there are no strong officer views that changes should be recommended at this stage.

19. Option 1 is consistent with the adopted HPUDS report and will provide an efficient and effective governance vehicle for collaboration and coordination for HPUDS implementation.

20. Council is, however, free to resolve to make any other changes they consider necessary under Option 2, but officers note any changes made will need to be referred back to the other partner councils before they can be finalised. While this may take some time and several iterations, it should not discourage councillors from making changes where significant concerns or improvements are identified.

21. Option 3 would involve each council undertaking separate implementation in its own jurisdiction, both geographically and in terms of statutory obligations. Coordination at officer level would rely on strong commitments and relationships, and implementation governance decisions and guidance would require briefing and reporting through three separate meeting structures. This could potentially involve several iterations and involve inefficient and protracted resolution of potential conflicts, some of which might be generated by the process itself.

22. Officers consider that a coordinated, cohesive and committed regional approach to the Strategy implementation would be severely diluted over time. Such weakening of the implementation would ultimately undermine the credibility and effectiveness of the Strategy in the public eye.

Membership

23. Councillors Dick and von Dadelszen represented Council on the Governance Group for the development of the Heretaunga Plains Urban Development Strategy and on the Hearings Committee.

24. Should Council endorse the establishment of the Joint Committee, Council is asked to appoint its representatives for this Committee.

Financial Implications

25. One HPUDS recommendation is that an Implementation Advisor is appointed, either from within existing sources or externally sourced.

26. This will require discussions between the three councils’ Chief Executives, but at this stage it is suggested that this awaits the Implementation Committee’s consideration and prioritisation of the recommended implementation actions and an accompanying assessment of the appropriate level of resourcing required.

27. Decisions will also need to be made about host agency, reporting lines, specific tasks, performance management and long term funding requirements.

DECISION MAKING PROCESS

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

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

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

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

28.4. The persons affected by this decision are the ratepayers of Heretaunga Plains Urban Development Strategy study area.

28.5. The options considered are to endorse the establishment of the Joint Committee as outlined in Option1 and 2 above or to decline to endorse its establishment. Staff prefer Option 1 for efficient and effective governance.

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

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

RECOMMENDATIONS

That Council:

1. Receives the report titled ‘Heretaunga Plains Urban Development Strategy – Establishment of Implementation Committee’.

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

3. Endorses the establishment of a Heretaunga Plains Urban Development Strategy Implementation Committee comprising two elected members of Hastings District Council, Napier City Council and Hawke’s Bay Regional Council, with Mana Whenua representation to be decided by that Committee.

4. Approves the Terms of Reference for the Committee as set out in Attachment 1.

5. Agrees that the Mayors and Chair of the partner Councils be ex-officio members of the Joint Committee.

6. Requests that the Implementation Committee reviews the Draft Memorandum of Agreement set out in Attachment 2 and makes recommendations back to the three partner councils for its adoption.

7. Appoints Councillors <name> and <name> as the Hawke’s Bay Regional Council’s representatives on the Joint Committee.

Helen Codlin

Group Manager

Strategic Development

Andrew Newman

Chief Executive

Attachment/s

1 View	Implementation Committee Terms of Reference
2 View	Partner Agreement

Printers Proof - Local Governance Statement

Attachment 1

CONTENTS

1. WHAT IS A GOVERNANCE STATEMENT. 3

2. FUNCTIONS, RESPONSIBILITIES AND ACTIVITIES. 3

3. REGIONAL COUNCIL / DISTRICT AND CITY COUNCILS - WHAT’S THE DIFFERENCE?. 5

4. LEGISLATION. 5

4.1 National Acts. 5

4.2 Local Acts. 6

4.3 By-Laws. 6

5. THE ELECTORAL SYSTEM AND THE OPPORTUNITY TO CHANGE THAT SYSTEM.. 6

5.1 Electoral System Adopted. 6

5.2 Process to Change the Electoral System.. 6

6. REPRESENTATION OPTIONS. 7

6.1 Maori Constituencies. 7

6.2 Review of Representation. 7

6.3 The Re-organisation Process. 7

6.4 Constituencies. 8

7. MEMBERS’ ROLES AND CONDUCT. 9

7.1 Members’ Roles. 9

7.2 Code of Conduct. 10

8. GOVERNANCE STRUCTURES AND PROCESSES. 10

8.1 Permanent Committees. 11

8.2 Joint Committee. 11

8.3 Committee Purpose, Membership. 12

8.4 Hawke’s Bay Regional Councillors. 16

9. MEETING PROCESSES. 17

10. CONSULTATION POLICIES. 18

10.1 Council’s Policy and Guidelines for Community Consultation. 18

10.2 Consultation Requirements. 18

10.3 Special Consultative Procedure. 18

10.4 Partnership with Maori 20

11. MANAGEMENT STRUCTURES AND RELATIONSHIPS. 20

11.1 Chief Executive. 21

11.2 Council’s Groups. 22

12. COUNCIL ORGANISATIONS. 22

13. EQUAL EMPLOYMENT OPPORTUNITIES (EEO) POLICY. 23

13.1 Introduction. 23

13.2 Council Policy. 23

13.3 Equal Employment Opportunity Goals. 24

14. KEY APPROVED PLANNING AND POLICY DOCUMENTS. 24

15. INFORMATION PROCESSES. 28

15.1 System for Processing Complaints. 28

15.2 Process for Requests for Official Information. 28

1. WHAT IS A GOVERNANCE STATEMENT

Hawke’s Bay Regional Council’s Governance Statement is a collection of information about the processes that Council uses to engage with the region’s residents.

It outlines how Council makes decisions and shows how residents can influence those processes. It also promotes local democracy by providing the public with information on ways they can influence local democratic processes.

Council’s Governance Statement is a requirement of Section 40 of the Local Government Act 2002. Council must update the governance statement within six months of each triennial election.

2. FUNCTIONS, RESPONSIBILITIES AND ACTIVITIES

Hawke’s Bay Regional Council has been established as part of the framework of Local Government whose purpose is to enable democratic local decision-making and action by, and on behalf of, communities. These decisions and actions are to promote the social, economic, environmental, and cultural well-being of communities, in the present and for the future.

All Councils now have the full capacity, rights, powers and privileges to carry on or undertake any activity or business, do any act, or enter into any transaction. However, the Regional Council must exercise these powers wholly or principally for the benefit of all or a significant part of its region and not for the benefit of a single district.

Functions

It is important to note that there are numerous statutes, which specifically identify regional councils as having a specific function and role in various activities. These include:

· Biosecurity Act 1993

· Building Act 2004

· Civil Defence Emergency Management Act 2002

· Hawke’s Bay Endowment Land Empowering Act 2002

· Land Drainage Act 1908

· Local Electoral Act 2001

· Local Government Act 2002

· Local Government (Rating) Act 2002

· Maritime Transport Act 1994

· Resource Management Act 1991

· Soil Conservation and Rivers Control Act 1941

· Land Transport Management Act 2003 and Land Transport Management Amendment Act 2008

· Transport Services Licensing Act 1989

These statutes have, to date, principally directed and determined the present responsibilities and activities of the Council.

Responsibilities

Responsibility of Council includes:

· Formulating the region’s strategic direction in consultation with the community to produce the Ten Year Plan (formally Long Term Council Community Plan (LTCCP))

· Determining the services and activities to be undertaken

· Managing principal tasks

· Administering various regulations and upholding the law

· Monitoring the delivery of the planned outputs included in the Ten Year Plan and Annual Plan

· Ensuring the integrity of the management control system

· Safeguarding the public interest

· Ensuring effective succession of elected members

· Reporting to ratepayers

Activities

The Regional Council has identified the following future goals:

· A vibrant community

· A prosperous region

· A clean and healthy environment

To achieve these goals the Council has the following group of activities:

· Regional Resources

· Regulation

· Governance and Community Engagement

· Land Drainage and River Control

· Biosecurity

· Hazard Management

· Transport

· Strategic Planning

3. REGIONAL COUNCIL / DISTRICT AND CITY COUNCILS - WHAT’S THE DIFFERENCE?

· The boundaries of the region are generally based on river catchments, while district and city council territories are based on population and communities of interest.

· The Regional Council has historically and through legislative direction concentrated more on the ‘natural environment’ - water, air, land, coastal- with a long-term view to make sure these are used sustainably, and are just as available and just as good (if not better) in the future as they are today. The Resource Management Act 1991 is one of the principal Acts behind the work of regional councils and many of our activities are aimed primarily at benefiting the environment. We also have responsibility for functions that are more appropriately carried out on a regional basis such as economic development, land transport planning, river control and land drainage and plant and animal pest control.

· City and district councils concentrate more on the built environment and deliver services to their local communities, such as drinking water, sewage disposal, rubbish disposal, roading, swimming pools, libraries and parks and deal with subdivisions.

4. LEGISLATION

The Council is subject to a wide range of different pieces of legislation (Acts) that other corporate bodies and individuals are subject to (e.g. Income Tax Act, Employment Relations Act, Occupational Safety and Health Act, Fair Trading Act). However, being a creature of statute and specifically the Local Government Act 2002 there are many other Acts which are particularly relevant to the Regional Council and its functions and roles. These include:

4.1 National Acts

· Biosecurity Act 1993

· Building Act 2004

· Civil Defence Emergency Management Act 2002

· Hawke’s Bay Endowment Land Empowering Act 2002

· Land Drainage Act 1908

· Local Electoral Act 2001

· Local Government Act 2002

· Local Government Official Information Meetings Act 1987

· Local Government (Rating) Act 2002

· Maritime Transport Act 1994

· Resource Management Act 1991

· Soil Conservation and Rivers Control Act 1941

· Land Transport Management Amendment Act 2008

· Land Transport Management Act 2003

· Transport Services Licensing Act 1989

4.2 Local Acts

· Hawke’s Bay Endowment Land Empowering Act 2002

4.3 By-Laws

· Hawke’s Bay Regional Council By-Law 1990

· Hawke’s Bay Regional Council Navigation and Safety By-Laws 2007

Copies of these By-laws are available for reference at the Council’s Napier office.

5. THE ELECTORAL SYSTEM AND THE OPPORTUNITY TO CHANGE THAT SYSTEM

5.1 Electoral System Adopted

Hawke’s Bay Regional Council currently operates its elections under the ‘First Past the Post’ (FPP) electoral system. This form of voting is used in parliamentary elections to elect Members of Parliament to constituency seats. Electors vote by indicating their preferred candidate(s), and the candidate(s) that receive the most votes is declared the winner regardless of the proportion of votes that candidate(s) obtained.

The other option permitted under the Local Electoral Act 2001 is the ‘Single Transferable Vote’ system (STV). This system is currently used in District Health Board elections and some local authority elections. Electors rank candidates in order of preference. The number of votes required for a candidate to be elected (called the quota) depends on the number of positions to be filled and the number of valid votes. The number of candidates required to fill all vacancies is achieved:

· first by the counting of electors’ first preferences

· then by a transfer of a proportion of votes received by any candidate where the number of votes for that candidate is in excess of the quota then by the exclusion of the lowest polling candidates and the transfer of these votes in accordance with voters’ second preferences.

5.2 Process to Change the Electoral System

Under the Local Electoral Act 2001 the Council can resolve to change the electoral system; or conduct a binding poll on the question; or electors can demand a binding poll. A poll can be initiated by at least 5 per cent of electors signing a petition demanding that a poll be held. Once changed, an electoral system must be used for at least the next two triennial general elections, i.e. we cannot change our electoral system for one election and then change back for the next election.

Hawke’s Bay Regional Council reviewed its electoral system in August 2002 and the decision was made to retain the first past the post voting system for the 2004, 2007 and 2010 elections. The Council will again consider its electoral system in August 2011.

6. REPRESENTATION OPTIONS

6.1 Maori Constituencies

The Local Electoral Act 2001 gives Council the ability to establish separate constituencies for Maori electors. The Council may resolve to create a separate Maori constituency or conduct a poll on the matter, or the community may demand a poll. The demand for a poll can be initiated by a petition signed by 5% of the electors within the region.

At its meeting on 27 October 2005, Hawke’s Bay Regional Council resolved to make no decision and by default allow the provisions contained in section 19ZB to determine whether or not one or more Maori constituencies will be established in the Hawke’s Bay region. Council also resolved to publicly notify the electors rights to demand a poll on this issue. The Council will consider this issue again in October 2011.

6.2 Review of Representation

The Local Electoral Act 2001 provides for revised provisions for local authorities to review their representation arrangements. The Act requires the Council to determine its representation arrangements on the first occasion either in 2003 or in 2006 and subsequently thereafter at least once in every period of six years after the first determination. The Council followed the procedure set out in the Local Electoral Act 2001 and guidelines published by the Local Government Commission, and conducted its Review of Representation in 2006. The next review will take place in 2012.

6.3 The Re-organisation Process

The Local Government Act 2002 sets out procedures, which must be followed during proposals to:

· Make changes to the boundaries of cities, districts, within the region;

· Create one or more territorial local authority within the region;

· Create a unitary authority, i.e. the transfer of functions of Hawke’s Bay Regional Council to a City or District Council;

· Transfer a particular function or functions to another Council.

The procedures for resolving each type of proposal are slightly different. In general, they begin with a proposal either from the Local Authority, the Minister of Local Government, or by a petition signed by 10% of the electors.

Proposals for a boundary alteration or transfer of functions from one local authority to another will be considered by one of the affected local authorities, or by the Local Government Commission, (if the local authorities refer the proposal to the Commission), or if the local authorities cannot agree on which of them should deal with the matter.

Proposals for the establishment of a new district or the creation of a unitary authority will be dealt with by the Commission. Such proposals cannot be implemented without a poll of electors.

Further information on these requirements can be found in the Local Government Act 2002. The Local Government Commission has also prepared guidelines on procedures for Local Government re-organisation.

6.4 Constituencies

The Hawke’s Bay region is divided into four constituencies. The following map and table show the number of representatives and the approximate population of each constituency.

Constituency	No. Members	Approximate Population
Wairoa	1	8,420
Central Hawke’s Bay	1	16,500
Napier	3	57,200
Hastings	4	71,300
	9	153,420

*these figures are rounded 2009 population estimates, being the most up-to-date available, provided by the Government Statistician

7. MEMBERS’ ROLES AND CONDUCT

7.1 Members’ Roles

The Chairman and Councillors of Hawke’s Bay Regional Council have the following roles:

· Setting the strategic direction of Council and formulating its policy

· Monitoring the performance of the Council organisation and its Chief Executive

· Representing the interests of the region (on election all members must make a declaration that they will perform their duties faithfully and impartially, and according to their best skill and judgement in the best interests of the region)

· Employing the Chief Executive (under the Local Government Act the local authority employs the Chief Executive, who in turn employs all other staff on its behalf).

· The Chairman is elected by the members of the Council at the first meeting. In addition to the role as a member, the Chairman has the following roles:

· Presiding member at Council meetings. The Chairman is responsible for ensuring the orderly and effective conduct of business during meetings (as determined by standing orders).

· Advocate on behalf of the community. This role may involve promoting the community and representing its interests. Such advocacy will be most effective where it is carried out with the knowledge and support

· Ceremonial Head of Council.

· Provider of leadership and feedback to other elected members on teamwork and Chairmanship of committees.

The Deputy Chairman is elected by the Members of the Council at the first meeting of the Council. The Deputy Chairman exercises the same roles as other elected Members. In addition, if the Chairman is absent or incapacitated, or if the office of Chairman is vacant, then the Deputy Chairman must perform all the responsibilities and duties, and may exercise the powers of the Chairman (as summarised above).

The Council may create one or more Committees of Council. A Committee Chairman is responsible for presiding over meetings of the Committee, ensuring that the Committee acts within the powers delegated by Council.

7.2 Code of Conduct

Elected members have specific obligations governing their conduct, which is set out in the following legislation:

· Schedule 7 of the Local Government Act 2002, which includes obligations to act as a good employer in respect of the Chief Executive and to abide by the current code of conduct and standing orders

· The Local Authorities (Members’ Interests) Act 1968 which regulates the conduct of elected members in situations where there is, or could be, a conflict of interest between their duties as an elected member and their financial interests (either direct or indirect)

· The Secret Commissions Act 1910, which prohibits elected members from accepting gifts or rewards which would be seen to sway them to perform their duties in a particular way

· The Crimes Act 1961 regarding the acceptance of gifts for acting in a certain way and the use of official information for private profit

· Under Schedule 7 Part 15 of the Local Government Act 2002 Council is required to adopt a Code of Conduct for members of the Council as soon as practicable after the commencement of the Act being 1 July 2003.

Hawke’s Bay Regional Council, at its meeting held on 3 November 2010, adopted a Code of Conduct. A copy can be made available on request to the Administration Manager (ph 833 8017).

8. GOVERNANCE STRUCTURES AND PROCESSES

Regional Council and Committee meetings are open to the public, except where items of business specifically exclude the public. Meeting dates and times are published in Hawke’s Bay Today and on Council’s website www.hbrc.govt.nz. Following the elections in October 2010 Council reviewed its committee structure in November 2010 and established the following committees:

8.1 Permanent Committees

· Tenders Committee

· Asset Management & Biosecurity Committee

· Environmental Management Committee

· Strategic Planning and Finance Committee

· Maori Committee

· Regional Transport Committee (required by statute)

· Hearings Committee

· Regional Planning Committee

8.2 Joint Committee

Hawke’s Bay Civil Defence Emergency Management Group Joint Committee (required by

statute)

8.3 Committee Purpose, Membership

The Regional Council

· Council develops or approves all major policy and deals with all other issues concerning its responsibilities which have not otherwise been delegated to Committees of Council or its Chief Executive. It deals with issues which are not the responsibility of the Chief Executive but require Council consideration.

Members:

Elected Members: All Councillors

Chairman: Fenton Wilson

Deputy Chairman: Ewan McGregor

The Chairman of the Maori Committee attends all Council meetings has has speaking rights only.

Asset Management and Biosecurity Committee

· This committee considers and recommends to the Council policies with regard to the Council responsibilities or involvement with Land Drainage and River Control under the Local Government Act 2002, Land Drainage and Rivers Control Act 1941 and Land Drainage Act 1908; and Biosecurity under the Local Government Act 2002 and the Biosecurity Act 1993.

Members:

Elected Members: All Councillors.

Appointed Members: Adrian Manuel and Marei Apatu

Chairman: Councillor Kevin Rose

Environmental Management Committee

· This committee considers and recommends to the Council strategies, policies, rules and other methods for inclusion into the Regional Resource Management and Coastal Plans and to ensure effective implementation of plans, processes, research, monitoring and enforcement to satisfy the requirements of the Resource Management Act 1991, National Policy Statements, National Environmental Standards and relevant associated legislation. The committee also considers and approves strategies and implementation of maritime and navigation safety under the Maritime Transport Act 1994.

Members:

Elected Members: All Councillors

Appointed Members: Morry Black, Peter Paku (back up) and Arapera Riki

Chairman: Councillor Eileen von Dadelszen

Strategic Planning and Finance Committee

· This committee considers and recommends to the Council strategic planning initiatives including development of its Strategic Plan and other strategic initiatives with external stakeholders including District and City Councils.

Members:

Elected Members: All Councillors

Appointed Members: Chairman of the Maori Committee and one other nominee from the Maori Committee (Mrs J Aspinall)

Chairman: Regional Council Chairman Fenton Wilson

Deputy Chairman: Councillor Ewan McGregor

Tenders Committee

This committee’s role is to:

· Consider and accept tenders which exceed the delegated authority of the Chief Executive.

· Consider and decide on exemptions to Council’s Contracts and Tenders policy as set out in section 2.1.4.2 of Council’s policy handbook.

Members:

Elected Members: Fenton Wilson (Chairman), Ewan McGregor (Deputy Chairman),

Councillors Kevin Rose and Eileen von Dadelszen

Maori Committee

· The Maori Committee includes both elected Councillors and members appointed by various Maori groups. The committee makes recommendations to the Council on matters of relevance affecting Maori people of the region and helps fulfil the Maori consultative undertaking of Council, particularly with regard to the principles of the Treaty of Waitangi (Te Tiriti O Waitangi).

Members:

Three elected members: Councillors Ewan McGregor, Liz Remmerswaal, Tim Gilbertson and Chairman Fenton Wilson (ex officio)

Wairoa - Adrian Manuel, Fred McRoberts, Pat Hohipa

Ahuriri - Arapera Riki, Heitia Hiha, Jan Aspinall

Heretaunga - Haami Hilton, Marei Apatu, Peter Paku

Tamatea - Liz Graham, Morry Black, Mike Mohi (Chairman)

Proxy Members - Miriama Hammond (Wairoa)

Regional Transport Committee

· This committee includes Regional Councillors and appointees from transport interests and other councils in the region. The aim is to prepare both the Regional Land Transport Strategy and the Regional Land Transport Programme for approval by the Council, and consider other issues related to Transport which has a regional impact and includes public and coastal transport.

Members:

Elected Members: Councillors Alan Dick and Liz Remmerswaal

Appointees from: Wairoa District Council, Hastings District Council, Napier City Council, Central Hawke’s Bay District Council, NZ Transport Agency representatives of the five objectives of the New Zealand Transport Strategy, and a cultural representative.

Hearings Committee

To consider and recommend to the Council processes, policies and guidelines to ensure effective management of resource consent and plan development processes.

Pursuant to Section 34(1) of the Resource Management Act (RMA) Hawke’s Bay Regional Council delegate the following functions, powers and/or duties under the RMA:

· To hear and make decisions on submissions received on any statutory documents prepared by the Council which have been subject to a formal submission process under the Resource Management Act 1991.

· To hear and make decisions on applications arising out of the Council’s regulatory responsibilities as follows:

- notified applications where submissions have been made and submitters wish to be heard;

- reviews of conditions (s.128) where consent holder and/or submitters wish to be heard;

- notified applications where submissions have been made and where the Committee considers it necessary to hold a hearing;

- objections to decisions made under delegated authority by staff, where they wish to be heard (S357);

- and where the staff recommendation is to decline any application for reasons other than inadequate information.

· To determine other related discretionary process matters that may be associated with a hearing such as waivers of time, as appropriate under the Resource Management Act 1991.

· To hear and make decisions on objections against costs under Section 36(6) of the Act and objections to the levying of Financial Contributions under Section 108 of the Act.

· To authorise the resolution and settlement of appeals and references through formal hearings or mediation in front of the Environment Court and to either generally or from time to time delegate to officers the authority to resolve and settle appeals and references through formal mediation before the Environment Court.

· To hear and make decisions on lapsing of consents under Section 125 of the Act where a decision of an officer acting under delegated authority is subject to an objection.

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

· Pursuant to section 82 of the Biosecurity Act (BA) the Hawke’s Bay Regional Council delegate the following functions, powers and/or duties under the BA:

- to hear and make decisions on submissions received on any statutory documents prepared by the Council which have been subject to a formal submission process under the Biosecurity Act.

- to authorise the resolution and settlement of appeals and references through formal hearings or mediation heard before the Environment Court or any other judicial body which relate to the preparation of any statutory documents prepared under the Biosecurity Act by Council and to either generally or from time to time delegate to officers the authority to resolve and settle appeals and references through formal mediation.

· The Hawke’s Bay Regional Council delegate to the Hearings Committee Chairman, the appointment of Hearings Committee members to a Hearing Panel to undertake functions set out above and the appointment of the Chair of the Hearing Panel.

Elected Members: Councillors Christine Scott (Chairman), Eileen von Dadelszen (Deputy Chair), Tim Gilbertson and Fenton Wilson

Appointed Member: Morry Black or Mike Mohi

Hawke’s Bay Civil Defence Emergency Management Group Joint Committee

· The Civil Defence Emergency Management Act 2002 requires all local authorities within a region to form a Civil Defence Emergency Management Group as a joint standing Committee under Clause 30(1)(b) of Schedule 7 of the Local Government Act 2002.

· The Joint Committee is composed by including a representative from each local authority that is a member of the Group. Representatives must be a chairperson or mayor of that local authority or an elected person from that local authority, who has delegated authority to act for the chairperson or mayor.

Members:

Chairman Fenton Wilson – Hawke’s Bay Regional Council (Chairman), Barbara Arnott - Mayor Napier City, Lawrence Yule - Mayor Hastings District, Les Probert - Mayor Wairoa District, Peter Butler - Mayor Central Hawke’s Bay District.

8.4 Hawke’s Bay Regional Councillors

Fenton Wilson, Wairoa, Chairman

0274 984483

Ewan McGregor, Hastings, Deputy Chairman

Ph 06 873 4288, ewan-mac@xtra.co.nz

Alan Dick, QSO, Napier

Ph 06 844 4645, alizdick@xtra.co.nz

TimGilbertson crop

IMG_0033 crop

Tim Gilbertson, Central Hawke’s Bay

Ph 06 857 8975

Neil Kirton, Napier

Ph 06 844 8618, nkirton@xtra.co.nz

Liz Remmerswaal, Hastings

Ph 06 877 7596, lizrem@gmail.com

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IMG_0019 crop

Kevin Rose JP, Hastings

Ph 06 878 4385 a/h

Christine Scott, Napier

Ph 06 835 6950, chscott@inspire.net.nz

Eileen von Dadelszen JP, Hastings

Ph 06 877 8174, evond@xtra.co.nz

9. MEETING PROCESSES

The legal requirements for Council meetings are set down in the Local Government Act 2002 and the Local Government Official Information and Meetings Act 1987 (LGOIMA).

All Council and committee meetings must be open to the public unless there is reason to consider some items ‘in committee’. Although meetings are open to the public, members of the public do not have speaking rights unless prior arrangements are made with Council. The LGOIMA contains a list of the circumstances where Councils may consider items with the public excluded. These circumstances generally relate to protection of personal privacy, professionally privileged or commercially sensitive information, and the maintenance of public health, safety and order. The Council agenda is a public document, although parts may be withheld if the above circumstances apply.

Agendas are available from reception two days before each meeting or on the Council website. The Council also hosts public meetings on occasions at venues throughout the region to discuss planning issues, work programmes or other concerns that require public input.

The Chairman is responsible for maintaining order at meetings and may, at his or her discretion, order the removal of any member of the public for disorderly conduct, or remove any member of Council who does not comply with standing orders.

Minutes of meetings must be kept as evidence of the proceedings of the meeting and are made publicly available, subject to the provisions of the LGOIMA.

For an ordinary meeting of Council, at least 14 days notice of the time and place of the meeting must be given. Extraordinary meetings generally can be called on three working days notice.

During meetings the Chairman and Councillors must follow Standing Orders (a set of procedures for conducting meetings). The Council may suspend Standing Orders by a vote of 75% of the members present.

10. CONSULTATION POLICIES

10.1 Council’s Policy and Guidelines for Community Consultation

Hawke’s Bay Regional Council adopted its own consultation policy in December 2003 entitled “Policy and Guidelines for Community Consultation”.

A copy of Council’s Policy and Guidelines for Community Consultation can be obtained from the Administration Manager (Phone 06 833 8017, email info@hbrc.govt.nz) and is available on the Council’s website www.hbrc.govt.nz.

10.2 Consultation Requirements

The Local Government Act 2002 sets out consultation requirements and principles (sections 75-90) for Council to follow when making decisions. For decisions, Council should:

· Assess the problem or issue to be addressed, the options for addressing it, and the costs, benefits, and impacts of those options

· Consider the views of the community at all stages of the decision-making, particularly including persons likely to be affected by or interested in the matter, and the views of Maori (especially where land or water are affected)

· Consult prior to making any decision or predetermination of an option

· Make decisions in the interests of the community’s cultural, economic, environmental, and social well- being, now and in the future

· Provide reasons for decisions made, and identify and explain any inconsistency with other Council plans or policies.

10.3 Special Consultative Procedure

The Local Government Act 2002 has specific procedures that Council must follow when making certain types of decisions. The special consultative procedure (predominantly set out in sections 83-89) are regarded as a minimum process that Council must use when adopting an Annual Plan or Ten Year Plan, or when making decisions that trigger specific criteria within section 97 of the Local Government Act 2002 or Council’s ‘Policy on Significance’.

The objective of Council’s ‘Policy on Significance’ is to ensure that the community of Hawke’s Bay is fully consulted and able to actively participate in the consideration of issues, proposals, decisions or other matters which are significant, and/or which involve Hawke’s Bay Regional Council’s strategic assets.

The special consultative procedure consists of the following steps:

STEP ONE: Preparation of a statement of proposal and a summary.

· The Council must prepare a description of the proposed decision or course of action. The statement must be available for distribution throughout the community and must be available for inspection at the Council office and may be made available elsewhere. The Council also has to prepare a full and fair summary of the proposal, which must be distributed as widely as the Council considers being reasonably practicable. That statement must be included on an agenda for a Council meeting.

STEP TWO: Public notice.

· The Council must publish a notice in one or more daily newspapers, or in other newspapers of equivalent circulation, of the proposal and of the consultation being undertaken.

STEP THREE: Receive submissions.

· The Council must acknowledge all written submissions and offer submitters a reasonable opportunity to make an oral submission. The Council must allow at least one month (from the date of the notice) for submissions.

STEP FOUR: Deliberate in public.

· All meetings where the Council deliberates on the proposal or hears submissions must be open to the public (unless there is some reason to exclude the public under the LGOIMA). All submissions must be made available unless there is reason to withhold them under LGOIMA.

STEP FIVE: Follow up.

· A copy of the decision and a summary of the reasons will be provided to submitters. There is no prescribed format for such a summary.

By law, the Council must follow the special consultative procedure before it:

· adopts a Ten Year Plan or Annual Plan

· amends a Ten Year Plan

· adopts, revokes, reviews or amends a bylaw

· changes the mode of delivery for a significant activity (for example from the Council to a

· Council-controlled organisation or from a Council-controlled organisation to a private sector organisation) if this change is not provided for in the Ten Year Plan.

The Council may be required to use the special consultative procedure under other legislation, and it may use this procedure in other circumstances if it wishes to do so.

The Council can and does consult outside of the special consultative procedure. When it is adopting its Ten Year Plan, Annual Plan or regional plan it will hold formal meetings with community groups and other interested parties. At these meetings the Council will seek views on the matters the Council considers to be important and identify issues of concern to the community. The Council holds meetings with stakeholder groups either six monthly or annually, to discuss current Council issues.

10.4 Partnership with Maori

Council has a Charter between the Maori Committee of Council and the Council itself. The Charter contains the Council’s commitments to a number of issues including policies that directly relate to sections 14 (Principles relating to Local Authorities), 81 (Contributions to decision making processes by Maori) and 82 (Principles of Consultation) of the Local Government Act 2002. This Charter is available from the Council on request and is accessible through the Council’s web site.

The Maori Committee consists of three Councillors and 12 Maori members who are nominated representatives from the four rohe (areas) of Ngati Kahungunu that are within the Hawke’s Bay Regional Council boundary.

11. MANAGEMENT STRUCTURES AND RELATIONSHIPS

Council is supported by a professional corporate organisation, led by the Chief Executive. Officers provide Council with policy advice and are responsible for implementing Council’s policies to achieve the results Council wants.

The Chief Executive and staff are responsible for managing day-to-day issues and implementing Councils’ decisions and policies. The organisation is structured under seven Groups, each of which is headed by a Group Manager. They are:

Resource Management Asset Management Water Initiatives

Strategic Development Corporate Services

Operations External Relations

The Human Resources Manager reports directly to the Chief Executive.

The Executive Team comprises the Group Managers of the seven Groups and is headed by the Chief Executive. The Executive Team considers organisation-wide issues and provides a key linkage between Councillors and staff. They ensure what is undertaken within the seven Groups is consistent with Council’s goals and objectives in the Ten Year Plan and Annual Plans.

The elected members and Council staff work together at different levels to decide what activities should be done to achieve the community’s vision and goals, and to plan how they can best be undertaken. This takes place within a framework of competing priorities, timeframes, resources, decisions of Council, and within the overall goal of growing and developing the region in a sustainable social, cultural, economic and environmental context.

11.1 Chief Executive

The Local Government Act 2002 requires the Council to employ a Chief Executive whose responsibilities are to employ other staff on behalf of the Council, implement Council decisions, and provide advice to Council. Under the Local Government Act 2002 the Chief Executive is the only person who may lawfully give instructions to a staff member. Any complaint about individual staff members should therefore be directed to the Chief Executive, rather than the Chairman or Councillors.

The Chief Executive is appointed by the Council in accordance with section 42 and clauses 33 and 34 of Schedule 7 of the Local Government Act 2002. The Chief Executive implements and manages the Council’s policies and objectives within the budgetary constraints established by the Council.

Under section 42 of the Local Government Act 2002, the responsibilities of the Chief Executive are:

· implementing the decisions of the Council

· providing advice to the Council

· ensuring that all responsibilities, duties and powers delegated to the Chief Executive or to any person employed by the Chief Executive, or imposed or conferred by any Act, regulation or bylaw are properly performed and exercised

· managing the activities of the Council effectively and efficiently

· maintaining systems to enable effective planning and accurate reporting of the financial and service performance of the Council

· providing leadership to the staff of the Council

· employing staff (including negotiation of the terms of employment for the staff).

The Chief Executive has a performance agreement with the Council, which expires not later than 5 years from 21 May 2007.

11.2 Council’s Groups

Set out below are the names of the Group Managers responsible for each Council group, and the functions carried out within each Group.

12. COUNCIL ORGANISATIONS

The Regional Council either owns or has an interest in numerous Council organisations. These include the following:

Port of Napier Limited

· Council owns 100% of the issued equity in Port of Napier, which provides a commercial harbour, and associated services in Napier. By virtue of its shareholding the Council has the right to appoint all directors and to determine the Constitution and Statement of Corporate Intent for the Company. The performance of the Company is monitored by Council.

Equity Interests

· The Council has a number of equity securities carrying voting rights in a variety of companies, which it has invested in as part of its investment policy. However, none of these investments fall within the category of a Council controlled organisation and, therefore, Council has no ability to dictate the appointment of Directors or otherwise influence the direction of these companies in any meaningful way. The Council’s role is purely as an investor and, therefore, the performance of the Company is monitored from an investment perspective only. This monitoring is conducted for Council by Frank Pearson of Pearson Investment Services.

Each of these organisations delivers services, or in some way supports the achievement of the objectives in the Council’s Long Term Council Community Plan and Annual Plans.

13. EQUAL EMPLOYMENT OPPORTUNITIES (EEO) POLICY

13.1 Introduction

Hawke’s Bay Regional Council has had a strong commitment to an Equal Employment Opportunity Policy and Programme since 1990. The philosophy and reasoning for adopting an EEO Policy have become an integral part of the operations of Council. All new staff are issued with a pamphlet outlining the Council’s commitment to EEO.

13.2 Council Policy

Hawke’s Bay Regional Council is committed to a policy of equal employment opportunities for all employees and potential employees. The Council regards the elimination of any discrimination and the provision of equal opportunities, as essential principles in the management of staff resources.

The Council affirms this commitment through a policy of positive action by adopting constructive policies and practices for equal opportunities in all aspects of employment, including: recruitment, selection and appointment, education, training and development, career planning and promotions. Personnel policies shall apply equally to all staff employed by Council. The Council actively endorses the policy of giving preference to the person best suited to the position - this is known as the merit principle. However, no employee or potential employee, shall gain any advantage or suffer any disadvantage for reasons such as: race, colour, disability, nationality or ethnic origin, gender, age, marital status, personal sexual preference, religious or political beliefs.

13.3 Equal Employment Opportunity Goals

The programme goals are:

· To provide equal employment opportunities for any person applying for a position with the Council

· To establish a workplace that is free from harassment and discrimination

· For all staff to have an understanding of, and commitment to, Equal Employment Opportunity policies and practices

· The achievement of equitable training and personal development for all staff employed by the Council.

A full copy of the Council’s EEO policy is available from the Human Resources Manager (Phone 06 833 8072).

14. KEY APPROVED PLANNING AND POLICY DOCUMENTS

The following have been identified as key Council planning and policy documents. A number of these documents are currently under review. To view or to find out more about these plans, reports, policies and strategies see Council’s website: www.hbrc.govt.nz.

The Council has prepared a number of plans and strategies under various pieces of legislation, including the Local Government Act 2002, Resource Management Act 1991, Biosecurity Act 1993, the Land Transport Management Act 1998 and the Transport Services Licensing Act 1989.

BIOSECURITY ACT

Plan

Detail

Purpose

Regional Pest Management

Strategy 2006

Operative December

2006

Provides the framework for managing defined pests in the region. Sets out objectives Council wishes to achieve

Regional Phytosanitary Pest Management Strategy 2006

Operative December

2006

Provides the framework for managing pests arising from pipfruit production sites

RESOURCE MANAGEMENT ACT

Plan	Detail	Purpose
Regional Coastal Plan	Operative June 1999 (To eventually be superseded by Regional Coastal Environment Plan)	To assist Hawke’s Bay Regional Council’s role under the RMA of promoting the sustainable management of natural and physical resources within the coastal marine area.
Regional Policy Statement & Regional Resource Management Plan	Operative August 2006 Subject issue-by-issue rolling review	To assist Hawke’s Bay Regional Council’s role under the RMA by setting out a policy framework for managing natural and physical resource use in an integrated manner across the whole of the region (the regional policy statement), and regional planning provisions applicable for the region, excluding the coastal environment
Proposed Regional Coastal Environment Plan	Notified August 2006. As amended by Decisions issued 19 July 2008 (subject to several appeals to the Environment Court)	To assist Hawke’s Bay Regional Council’s role under the RMA of promoting the sustainable management of natural and physical resources within the coastal environment.

LAND TRANSPORT MANAGEMENT ACT 2003

Plan

Detail

Purpose

Regional Land

Transport Strategy

2008-18

Released

April 2008

The Regional Land Transport Strategy plans for the future needs of the region’s transport with the focus on: efficiency and effectiveness; safety; environmental effects; and funding and administration. The strategy looks at all forms of land transport in the region including cars, cycles, trucking and rail.

LOCAL GOVERNMENT ACT

Plan	Detail	Purpose
Annual Report year end 30 June 2010	Operative July 2010	This report compares actual performance with proposed performance set out in Council’s planning documents, and contains audited financial statements, set of accounts, and annual financial reports which assess Council’s financial performance against budget
Long Term Council Community Plan 2009-19 (Ten Year Plan)	Operative July 2009	This plan, which includes the Annual Plan 2006/07, includes some information on Council’s policies, actions and funding that are to be undertaken over the ten years of the planning period. This Plan includes community outcomes, policies and statements required by the Local Government Act 2002.
Annual Plan 2010/11	Operative July 2010	This plan includes budgets, funding and financial statements for that year, which are to be consistent with the Long Term Council Community Plan (LTCCP). Any significant variations to the LTCCP are also covered.
Asset Management Plans	Operative 2009	These plans focus on the management of flood control and drainage scheme assets; the level of service they provide; and their improvements and replacement. There are 12 plans for Council’s flood and drainage schemes. It is the intention of Council to update thses plans in 2008.
Triennial Agreement	Operative February 2011	This agreement promotes cooperation between local authorities for communication and coordination, also to avoid duplication when engaging communities and exercising general empowerment.
Navigation Safety Bylaws	Operative December 2007	The Navigation Safety Bylaws 2007 provide for Council to regulate or control navigation of vessels in the navigable waters within its region out to the 12 mile limit and also to regulate related activities for the purpose of safety, such as the mandatory carriage of lifejackets. In addition, the bylaws enable certain areas to be reserved for certain activities in the interest of separating conflicting recreational activities.

PASSENGER SERVICES LICENSING ACT

Plan

Detail

Purpose

Passenger

Transport Plan

2008-18

Adopted

July 2008

The Passenger Transport Plan provides for urban bus services and Total Mobility Scheme funding and operations. Provisions in the plan reflect changes in the provision of transport services, the reviewed operation of the Total Mobility Services, service level guidelines for bus services, and the requirements for road markings and bus route signage.

COUNCIL POLICIES

Plan	Detail	Purpose
Policy Handbook	Continually updated	Sets out the policy and procedures adopted by Council, covering carrying out of tenders, delegations, regional landcare schemes, leasehold land freeholding and transfer procedures, etc.
Community Engagement Plan 2010-2013		Replaces the Environmental Education Strategy 2006 and summarises Council’s public communication activities and actions in the short to medium term.
Community Engagement and Communications Strategy		To Identify Strategies for Council to use to effectively engage the community and to respond to key issues and risks.

15. INFORMATION PROCESSES

15.1 System for Processing Complaints

All complaints are dealt with through the Chief Executive’s office. Complaints are received and acknowledged by the Chief Executive’s Executive Assistant, then recorded onto an action list stating the action required, person responsible and timeframe for action (10 days from the date of letter). The complaint is then sent through to the appropriate Group Manager to action and respond. A copy of correspondence to the complainant and a record of any action taken is sent to the Chief Executive for his information.

15.2 Process for Requests for Official Information

Under the Local Government Official Information and Meetings Act 1987 (LGOIMA) any person may request information from the Council. Any request for information is a request made under LGOIMA. You do not have to say you are making a request under LGOIMA.

Once a request is made the Council must supply the information unless reason exists for withholding it. The LGOIMA says that information may be withheld if release of the information would:

· Endanger the safety of any person

· Prejudice maintenance of the law

· Compromise the privacy of any person

· Reveal confidential or commercially sensitive information

· Cause offence to tikanga Maori or would disclose the location of waahi tapu

· Prejudice public health or safety

· Compromise legal professional privilege

· Disadvantage the local authority while carrying out negotiations or commercial activities

· Allow information to be used for improper gain or advantage

The Council must answer requests within 20 working days (although there are certain circumstances where this timeframe may be extended). The Council may charge for official information under guidelines set down by the Ministry of Justice.

If it is necessary to obtain information under the Local Government Official Information and Meetings Act, please contact the Administration Manager or Communications Co-ordinator, but note that information is usually readily available without the need for a formal request

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 April 2011

SUBJECT: Councillor Remuneration

REASON FOR REPORT

1. The Remuneration Authority (Authority) wrote to the Council on 30 March 2011 providing the residual pool and Chairman’s salary determination for the 2011/12 financial year. This paper provides a number of options to be considered so that a recommendation can be made to the Authority for the distribution of the net pool amongst elected members of this Council.

Background - Remuneration

2. The Authority has advised the following indicative pool for remuneration to cover the 2011/12 financial year.

	2011/12 ($)	2010/11 ($)	Variation ($)	Variation (%)
Chairman’s Salary	109,500	109,500	Nil	0.00
Deduction for use of Vehicle	(3,785)	(3,785)	Nil	0.00
Chairman’s Salary after Deduction	105,715	105,715	Nil	0.00
Councillor Remuneration	388,038	383,428	4,610	1.20
Total	493,753	489,143	4,610	0.94

3. Councillors should note that the Authority also states in its letter that it is planning to undertake some broader work in the area of council remuneration during the year with a view to any changes being implemented in the 2012/13 financial year. The Authority intends to engage with Local Government New Zealand and councils to seek their views as work progresses.

4. This paper sets out a number of scenarios for Councillors to consider and decide on one of the scenarios to recommend to the Authority. Each of the scenarios assumes the following:

4.1. That the differential between a Councillor without committee chair responsibilities and a Councillor with committee chair responsibilities is $4,500, as decided by Council in December 2010.

4.2. As Council has previously resolved not to pay meeting fees for the first six plan hearing days in any year, the scenarios assume that no provision for meeting fees for plan hearing meetings is required as planning Staff have estimated that there will be only five meeting days for the 2011/12 financial year. Their analysis is set out below:

Topic	Hearing Days	Total Days
RECP Variation 1: River Mouth Hazards	2	2
Domestic Waster Rules	3	3
TOTAL	5	5

5. Set out in Attachment 1 are three scenarios, which are presented for Council’s consideration. The broad assumptions for each scenario are given below:

5.1. Scenario 1: Four Committee Chairs or Deputy Chairman

5.2. Scenario 2: Five Committee Chairs or Deputy Chairman (Current Situation)

5.3. Scenario 3: Six Committee Chairs or Deputy Chairman

Policy on Elected Member’s Allowance and Expenses

6. Council considered and adopted a revised Elected Members’ Allowances and Expenses Policy on 16 March 2011, which complies with the Authority’s final determination for the 2010/11 financial year. This determination limits the basis on which travel and communication allowances can be paid to elected members. This paper proposes no amendment to that policy.

Remuneration of Maori Representatives

7. On 15 December 2010, Council resolved that the Chairman of the Maori Committee would be paid a salary equivalent to that paid to a Councillor without committee chair responsibilities and that no meeting allowances would be paid. This paper proposes that this relativity be maintained for the 2011/12 financial year.

8. At the same meeting, Council resolved that tangata whenua appointed members of the Maori Committee who are appointed to plan hearings that are not related to resource consent hearings be remunerated at the rates set out in the applicable Local Government Elected Members Determination for all hearing time, as defined in that determination. This paper proposes that payment of this allowance be continued for the 2011/12 financial year.

9. Members of the Maori Committee are paid only a meeting fee and travel allowance for each meeting day. The meeting fee payable to members of the Maori Committee has not increased since 1 July 2007 when it was raised from $200 per meeting day to $230. The Consumer Price Index (CPI) published by the Reserve Bank has risen 13.7% from 1 July 2007 to 31 December 2010. When the index is applied to the meeting fee, it suggests that the fee should currently be $261.51. Given that inflation is likely to continue to rise further in the six months to 30 June 2011, this paper proposes an increase of $35 in the meeting fee payable to the members of the Maori Committee resulting in a propose meeting fee of $265 meeting day in order to preserve remuneration levels for members of this committee. No increase in the travel allowance fee of $0.70 per kilometre is proposed.

DECISION MAKING PROCESS

10. Council is required to respond to the Remuneration Authority as a requirement of statute and is required to determine for themselves the appropriate distribution of the net remuneration pool amongst elected members of Council.

RECOMMENDATIONS

That Council:

1. Resolves the level of payments to be made to Councillors with and without Chair responsibilities for the 2011/12 financial year, consistent with the remuneration pool as advised by the Remuneration Authority covering that period, and recommends to the Remuneration Authority that these payment levels be included in the determination for the 2011/12 financial year.

2. Replaces (subject to the approval of the Remuneration Authority) Section 1.4.2 (Remuneration) of Council’s Policy Handbook with the following from 1 July 2011, and with elected members only every being eligible for one salary, with salary being the highest applicable from the table below.

Role		Comment	Salary
Chairman of Council	Salary	After deduction for full use of Council supplied vehicle	$105,715
Deputy Chairman of Council	Salary	Representing a differentiation of $4,500 between a Councillor with no committee chair responsibilities or Deputy Chairman responsibilities	To be decided
Chair of: - Hearings Committee - Regional Transport Committee - Asset Management & Biosecurity Committee - Environmental Management Committee - Strategic Planning and Finance Committee	Salary	Representing a differentiation of $4,500 between a Councillor with no committee chair responsibilities or Deputy Chairman responsibilities	To be decided
Elected Members of Council	Salary		To be decided

3. Resolves the level of remuneration for the Chairman of the Maori Committee be set for the 2011/12 financial year at the salary to an elected member of Council without committee chair responsibilities and notes that the payment of this salary is not funded from the net Council remuneration pool as advised by the Remuneration Authority.

4. Resolves that tangata whenua appointed members of the Maori Committee who are appointed to plan hearings, that are not related to resource consent hearings, be remunerated at the rates set out in the applicable Local Government Elected Members Determination for all hearing time as defined in that determination.

John Peacock

Financial Controller

Paul Drury

Group Manager

Corporate Services

Attachment/s

1 View

Councillor Remuneration 2011/12

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 April 2011

SUBJECT: Quarterly Significant Initiatives Update for Council

REASON FOR REPORT

1. Significant council resources are being directed toward various initiatives which reflect the Council’s evolving agenda and it is considered important that Council is more consistently informed on progress in areas that have a high external profile.

2. This is not intended to be a ‘repeat’ of information reported through the Project Narratives or Group Summaries, but rather ‘additional’ information or statistics not contained within those documents. Staff will provide these updates within the quarterly Annual Plan reporting timeframes.

WATER

Water Metering

3. Since November 2010, 202 consent holders, with approximately 300 individual resource consents are using Council’s new web entry system to report their water use, with more consent holders joining weekly.

4. Since November 2010 approximately 120 new water meters have been installed.

Water Storage

Ruataniwha Water Storage

5. The Ruataniwha project has progressed through prefeasibility and advanced prefeasibility stage to full feasibility. The programme of works to complete the full feasibility phase to the stage of lodgement of consent application, will be carried out over the next 18 months.

Ngaruroro Water Storage

6. In January 2010 Tonkin and Taylor (consultants) were contracted by HBRC, with funding assistance from the Sustainable Farming Fund (MAF), to complete the Ngaruroro Water Storage Prefeasibility Study. Water storage opportunities have been investigated and summarised as part of a prefeasibility study - stage 1 report identifying irrigation demand, irrigation zones and potential storage sites.

7. There are 2 further stages to the project which involve:

7.1. Stage 2 - Refining options and cost estimating, fatal flaw analysis, dam break analysis and downstream distribution costs

7.2. Stage 3 - Assessment of on-farm costs, potential downstream benefits, assessment of environmental issues and consultation.

8. The Prefeasibility stage is due for completion by the end of June 2011.

Central Hawke’s Bay Wastewater Treatment and Discharge

9. Concept design and draft resource consent applications prepared for the treatment of waste water from Waipawa and Waipukurau are currently being reviewed by a new consultant. An initial assessment has been completed indicating that the two forestry blocks together with increased storage will be adequate to treat all waste water. The consultant is currently undertaking further modelling to confirm requirements. Once this work is completed and the concept design confirmed and detailed project programme will be established.

10. Post planting tree survival counts for the forests have yet to be completed. Initial indications are however that trees are growing well.

Mahia Wastewater Treatment and Discharge

11. No appeals on the Environment Court decision to grant consent were lodged. Council’s agreement to purchase the land for wastewater treatment is now unconditional. Fencing of the land has been largely completed. Surveying has also been substantially complete except for some minor issues in the vicinity of the proposed storage ponds. This is expected to be resolved in the week prior to Easter.

12. Planting of the block is being planned for the winter of 2011. Preparation work for forest establishment with initial spraying commenced in 2010 and continues.

13. There will be some limitations on the area of the block able to be planted. A number of areas of cultural and historical significance have been identified and discussions are continuing with regard to how the land in the vicinity of these areas can be managed.

Development of the HB Regional Water Strategy

14. Three of the scheduled four Reference Group meetings have been held and it is likely that an additional two will be required to ensure adequate time for the Reference Group to consider the draft strategy. This is likely to delay the reporting back to a Committee or Council from June to July. Staff believe that good progress is being made towards an agreed strategic approach to water management.

Plan Changes

15. The Environmental Management Committee considered an update on plan changes at its April meeting. The table below documents current status.

Change	Indicative notification timeframe
Regional Coastal Environment Plan	N/A (appeal resolution only)
Air Quality	N/A (appeal resolution only)
Rivermouth hazard areas	N/A (submissions closed, hearing to be scheduled )
Taharua strategy	Postponed from July to December 2011. Draft Strategy to be developed for informal consultation
Growth management (incl HPUDS, onsite wastewater, stormwater)	On track for October 2011, draft plan change to be considered by Committee or Council in June or July
Freshwater flows / allocation	Tukituki and Karamu plan changes to be notified by at least July 2012

Future Scenarios Utilisation Plan

16. HB 2050 Land River Us comprises three scenarios supported by a considerable amount of information about different factors which have the potential to impact and influence Hawke’s Bay futures. It is, in itself an output, which when used as a tool becomes an input into discussions about what the future may hold. Opportunities to use the scenario tool in the last three months have included:

16.1. At the leadership team meeting – staff asked to think about their role in 2050

16.2. At a land management section meeting – as above

16.3. Regional Economic Development Strategy workshop

16.4. Embracing Futures thinking Breakfast – formal launch of the scenarios

16.5. Staff attended Strategy NZ conference and applied the scenarios in a NZ context.

LAND

Council owned Forestry

17. Council forestry assets include the following:

17.1. Tutira Park 120 ha (Pinus Radiata)

17.2. Waipawa 85 ha (mainly eucalyptus but a few pines on harder faces)

17.3. Waipukurau 100 ha (mainly eucalyptus but a few pines on harder faces)

17.4. Tutira Carbon Sequestration Property (Waihapua Forest Park) 116 ha eucalyptus and 24ha Redwoods and mixed dryland species; 20-30 ha is proposed for planting this year with the intention to complete the majority of the balance of the plantable area in 2012

17.5. Mahia 40 ha to be planted this winter (mainly eucalyptus but a few pines on harder faces)

17.6. Tangoio (managed by Council on behalf of Central Government) 550 ha of which 300 ha is production forestry, mainly Pinus Radiata.

18. Staff are currently:

18.1. Awaiting detailed priced proposals from two organisations who have registered their interest in providing services for the management of Council’s forest assets. Proposals have been requested by 4 May and the appointment will be made shortly afterwards. The organisation chosen will assist Council staff with the 2011 planting programme.

18.2. Undertaking a feasibility assessment for further forestry investment that will improve financial and environmental performance of erodible hill country while providing an investment return to Council. This study will result in a report for Council consideration by June 2011.

18.3. Investigating options for further forest establishment on Council owned or administered river berm land and leased land where this will increase the efficiency of existing investments.

18.4. Assessing land ownership issues associated with the claiming of carbon credits for pre 1990 forests associated with Councils river schemes.

18.5. Developing a management framework for the effective and efficient management of these assets, the measurement of carbon sequestration, and the trading of associated carbon units.

Afforestation Grants Scheme

19. Five projects have been completed in the 2010/11 financial year – Planted area 82.1 ha; grant $191,575.

20. Eight projects have been approved for the 2011/12 year –area to be planted 270 ha; grant $254,220.

COMMUNITY

Healthy Homes

21. The Healthy Homes programme was established in 2009 and encompasses the coordination of the programme for the Healthy Homes Coalition and the management of Council’s Heat Smart programme.

22. Reporting focuses on three areas of work.

23. The effectiveness of the Coalition in the development of programmes toward achieving broad healthy homes goals: Members of the Coalition have reaffirmed the commitment of the Coalition towards the clean heat and warmth priorities (7^th April 2011) and continue to view the Clean Heat Programme as an important first step in achieving the Coalition’s goal of 54,000 healthy homes in Hawke’s Bay.

24. Progress on uptake of Council’s Clean Heat Programme: 1 July 2010-28 February 2011: 414 homes have been insulated and 387 homes have had clean heat replacements under Council’s financial assistance programme. The target for total conversions (not just those with Council funding assistance) is 3300 per year to meet the straight line path targets for compliance with the National Environmental Standard for air quality.

25. Progress on programmes funded by other organisations involving retrofitting of insulation and clean heat to homes- 1 July 2010-28 February 2011:

25.1. The Healthy Homes Initiative, funded by Health Hawke’s Bay (formerly the PHO) and the HBDHB has competed 67 insulations (with another 86 in progress), and 32 clean heat conversions (with another 47 in progress).

25.2. Clean Heat Hastings, funded by HBRC and MfE, has completed 70 clean heat conversions (with a further eight in progress).

National Cycleways

26. HBRC’s work is progressing on the Hawke’s Bay Landscapes and Water rides.

27. HDC’s work on the Red Bridge to Moore Road section of the Landscapes Ride is progressing, and negotiations with landowners adjacent to the Craggy Range section are ongoing.

28. Landowner approvals, easements and concession documents for The Water Ride have been received from DoC and the Easement document is being finalised with Land Corp. Work on final plans for the NCC coastal section is progressing, and will be tendered in the next month. Work has also commenced on the Taipo section of the trail.

Leasehold Land

29. 14 leasehold properties have been sold, at the value of $1,363,971.

30. 38 leasehold properties transferred ownership.

31. 6 properties are utilising the deferred payment scheme.

32. 1 ‘assistance supplements’ have been processed through WINZ.

33. The strategy for the sell down of Napier leasehold property is progressing.

Treaty Settlements and the Establishment of the Regional Plan Committee

34. The relationships between Council and the various Treaty settlement groups with interests in Hawke’s Bay continue to develop at various rates.

35. Involvement of Council in specific Treaty settlement negotiations and the status of each of those settlements.

35.1. The Deed of Settlement between the Crown and Ngati Pahauwera was signed in December 2010. The Settlement legislation is expected to be introduced into the House in mid-2011 (June or July). Council can then assess the legislation to determine if it wishes to make a submission

35.2. The Crown is in negotiations with Mana Ahuriri, Maungaharuru-Tangitu Inc and Ngati Hineuru on their respective settlements and aims to have Agreements in Principle signed with all three groups by June 2011.

35.3. The mandate of Te Tira Whakaemi o Te Wairoa (roughly Wairoa to Mahia) was recognised by the Crown in February 2011 and that of He Toa Takitini (Heretaunga and Tamatea) was recognised in December 2010.

36. Progress in determining the principles and procedures for the establishment and operation of the Regional Planning Committee:

36.1. Chairman Wilson and Councillor von Dadelszen, together with senior staff, have met twice with representatives of Ngati Pahauwera, Mana Ahuriri, Maungaharuru-Tangitu Inc and Ngati Hineuru to progress the development of the Regional Planning Committee. These discussions have resulted in the drafting of two documents:

· A Deed of Commitment, which describes why the parties are sitting around the table together and establishes a vision and principles for the ongoing relationship of tangata whenua and the Hawke’s Bay Regional Council. This document will allow for other Treaty claimant groups to become signatories if and when they so decide.

· Draft terms of Reference for the Regional Plan Committee have been discussed in very broad terms. The preference of the group is to proceed with the establishment of the Committee with the four Groups who have already indicated their commitment, and an equal number of councillors. The Terms of Reference are still at a very draft stage and will be further developed at a meeting on 3 May.

DECISION MAKING PROCESS

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

RECOMMENDATION

1. That Council receives the report titled ‘Quarterly Significant Initiatives Update for Council’.

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

Action	Indicative Timeline
· Incorporate new company HBTL (including Constitution) · Interim directors may be required until the HBWCTAI SGM has been held (see below)	· 30 days
· HBWCTAI to obtain approval from those who have pledged seed capital to the new limited liability structure	· 30 days
· Prepare Funding Agreement between HBRC and HBTL (including KPIs)	· 30 days
· HBWCTL to review its constitution, hold an SGM to approve any changes (including any pairing down of the Board of Management), call for applications and appoint Directors to the Board of HBTL.	· 30 days for review · 45 days notice of the calling of an SGM · 30 days for nomination and appointment of Directors
· Form new Hawke’s Bay Tourism Brands Trust	· 30 days
· Dissolve Wine Country Brands Trust	· 30 days
· First Board meeting of HBTL	· 90 days

Terms of Reference	Membership
An Implementation Committee of the Hastings District, Napier City, and Hawke's Bay Regional Council (and Mana Whenua) be established to overview the implementation of HPUDS. The HPUDS IC be delegated authority to implement the Strategy in accordance with the following functions: · Growth management leadership · Overseeing implementation of the Strategy · Ensuring organisation systems and resources support the strategy implementation · Taking responsibility for progressing those actions specifically allocated to the HPUDS IC · Monitoring and reporting progress against milestones · Overviewing the management of the risks identified in implementation · Reviewing and recommending adjustments to the Strategy · Identifying and resolving any consultation inconsistencies between the Strategy and subsequent public consultation processes of the partner councils · Facilitating consultation with the community · Establishing the Strategic Partners Forum · Implementing a Memorandum of Agreement as adopted by the Committee to provide a basis for developing working relationships and the resolution of any conflict	· Two elected members from each partner council. · Two representatives of Mana Whenua. · That the standing membership be limited to 8 members.
	Meeting Frequency
	· Bi-monthly
	Timeframe for Committee
	· It is proposed that the HPUDS IC would be in place for an initial five year period through to June 2016.

			2011/12
	2010/11 $		Scenario 1 $		Scenario 2 $		Scenario 3 $
Chairman’s Salary (Full Use of Council Vehicle)	105,715.00		105,715.00		105,715.00		105,715.00
Plan Hearings Committee Meetings	Nil	(0 meetings paid)	Nil	(0 meetings paid)	Nil	(0 meetings paid)	Nil	(0 meetings paid)
Deputy Chairman	49,616.00		50,754.75		50,192.25		49,629.75
Chairman, Asset Management and Biosecurity Committee	49,616.00		50,754.75		50,192.25		49,629.75
Chairman, Environmental Management Committee	49,616.00		50,754.75		50,192.25		49,629.75
Chairman, Strategic Planning and Finance Committee	(Held by Chairman)		(Held by Chairman)		(Held by Chairman)		49,629.75
Chairman, Regional Transport Committee	49,616.00		50,754.75		50,192.25		49,629.75
Chairman, Hearings Committee	49,616.00		(Held by Committee Chair)		50,192.25		49,629.75
Elected Members with none of the above responsibilities:	135,348.00	3 x $45,116.00	89,107.00	4 x $46,254.75	137,076.75	3 x $45,692.25	90,259.50	2x $45,129.75
Total Available	$489,143.00		$493,753.00		$493,753.00		$493,753.00
Approximate increase (decrease) from June 2010/11: · Chair of Committee · Councillors			2.30% 2.52%		1.16% 1.28%		0.02% 0.03%

Group	Area of Activity	Report to go to Council or Committee as indicated
Asset Management	· Review of Heretaunga Plains Scheme	Review options for changes to levels of service for Heretaunga Plains Flood Control and Drainage Scheme – Rivers including cost/benefit analysis of options in May.
	· Asset Management Plan reviews	Reviews of Asset Management Plans commenced. Committee approval for reviewed plans will be sought by November 2011.
	· Capital Works	Upper Tukituki stopbank upgrade completed and Plantation Drain project progressing.
	· Biosecurity	Regional pest management strategy review discussion document considered by AM&B Committee in March; submissions close April.
	· Management of Coastal hazards at Haumoana / Te Awanga	Peer review work continuing. Report on outcome of peer review work will be prepared with HDC staff and presented to Council. Currently expected May/June 2011.
	· Land Management	Operational plan for 2011/12 year being prepared for consideration by AM&B Committee May 2011.
	· CHB District Council Wastewater project	System design and consenting progressing.
	· Mahia Wastewater project	Forest establishment planned for winter 2011.
Resource Management	· Affco appeal mediation, with a Court Appointed mediator, is ongoing
	· Council has received an appeal from a group of 25 Twyford consent holders represented by Helen Atkins. The appeal relates to 57 resource consents.
Strategic Development	· Development of the Water Strategy with input from the Reference Group. More meetings may be required.	Draft strategy to a Committee in July if possible
	· 28 submissions received to public notification of Variation 1 (Rivermouth Hazard Areas) to the proposed Regional Coastal Environment Plan. No further submissions received. Awaiting technical evidence then officers report will be prepared	Hearings to be scheduled mid-late 2011.
	· Work on the drafting of objectives and policies for RPS to incorporate HPUDS/ Stormwater and Wastewater. Aiming to notify by October 2011.	Draft HPUDS plan change to Environmental Management Committee in June or July.
	· Progress Taharua Strategy as per project plan.	Strategy to be developed for informal consultation with stakeholders. To Environmental Management Committee in June or July.
Corporate Services	· Draft Annual Plan 2011/12	Consultation has commenced - submissions close 10 May 2011.
	· Investment options for leasehold land.	SP&F 18 May 2011.
	· Regional Tourism Organisation - presentation of details for either a Joint Venture Agreement or a Contract for Services - depending on option agreed to at 27 April Council meeting.	Council 25 May 2011.
	· Investment Company: - Public meetings for consultation - Presentation to Council	Currently underway. SP&F 18 May.
External Relations	· Submissions to be heard on proposal for establishment of Investment Company	May 2011.
	· Continuation of discussions with Treaty claimant groups on development of Regional Planning Committee ToR	Progressing.
	· Preparation of staff responses on Draft Annual Plan	May 2011.
	· Regional Digital Archives Strategy to be considered by Council	May 2011
Operations/ Water Group	· Ruataniwha Water storage – Work over the next month involves: completing the development of a contract brief for tendering the engineering work for the full feasibility phase; and refinement of the environmental and water resources work elements.	Ongoing
	· Cycleways – Landowner approvals, easements and concession documents received from DOC. Easement document being finalised with Landcorp. · Work is progressing on final plans for NCC coastal section with work due to be tendered in the next month. · Work has commenced on trail construction on Taipo section of trail.	Ongoing
	· Ngaruroro Water storage – A stage 1 version of the prefeasibility report has been completed. Work on refining available irrigation areas will be completed this month to allow stage 2 & 3 to proceed, prior to completion by the end of the financial year.	Ongoing
CE’s Office	Ÿ Commencing draft documentation of HBRC strategic plan post December for consideration by Councillors (with Exec Team)	Workshop with Councillors scheduled 10 May.
	Ÿ Freshwater Governance and Management – RAC paper, Central government policy agenda to be discussed with Central Govt CEs.	RAC paper to be circulated.
	Ÿ Further RAC work including public comment from RAC chair post LAWF report back to Govt.	Ongoing
	Ÿ Treaty Settlements – further work with Claimant Groups	Ongoing
	Ÿ Investment Portfolio scenarios	Scheduled – 10 May.
	Ÿ Options for Economic Development component of VHB	Part of the Economic Strategy review.

4.	Other Activities 24/02 Together with Councillors Rose and von Dadelszen met with James Morgan *(re:* *Stoneycroft* *digital archives)* 28/02 Attended Water Strategy External Reference Group meeting 1/03 Media training 1/03 Together with CE met with Land & Water Forum 3/03 Attended with CE Launch of Pest Management National Plan of Action 4/03 Attended with CE Regional Affairs Committee 7/8/03 Attended Zone 3 Meeting in Marton 9/03 Attended Asset Management & Biosecurity Meeting 11/03 Attended with CE SH2 Matahourua Gorge Realignment Project Opening Ceremony 11/03 Attended with CE SH50 HB Expressway Southern Extension Project opening 14/03 Met with CE, Audit New Zealand 15/03 Attended with CE Regional Business Partner HB Launch 17/03 Attended with Chief Executive Regional Economic Development Strategy Refresh 17/03 Visited with Chief Executive and other parties the two proposed Ruataniwha Water Storage Sites 21/03 Attended with Chief Executive meeting two of the HB Water Reference Group 21/03 Met with Board of Directors of Port of Napier Limited with Chief Executive and Councillors 24/03 Attendance the Balance Farm Environment Awards with Chief Executive and Councillors Rose and Scott 25/03 Attending the EIT Graduation Ceremonies 28/03 Attended the HB CDEM Group Joint Committee 29/03 Met with Councillor Kirton, Chief Executive – Open Spaces 29/03 Attended with Chief Executive the 2011 Silver Fern Farms HB Farmer of the Year launch 30/3 Met with NZ Pipfruit with Chief Executive 30/3 Attended dinner with Department of Conservation 31/3 Attended ECOED release of 100^th Kiwi Chick 4/4 Attended Rugby World Cup meeting 5/4 Attended YMCA breakfast 5/4 Attended public meeting in Taradale Town Hall 7/4 Attended meeting with regard to HB Tourism activity update at Pettigrew Green Arena 7/4 Attended Massey University Cocktail function and Lecture by – Professor Glyn Harper 8/4 Attended Eastern Field Days 11/4 Attended Water Strategy Meeting 12/4 Met with Chairman and Chief Executive of Animal Health Board 13/4 Attended Environmental Management Committee 14/4 Attended Embracing Futures Breakfast 15/4 Attended Hakikino/Waimarama Nursery Visit with Māori Committee 18/4 Visit to Ballance Farm Environment Inaugural Supreme Award winners field day in Takapau 18/4 Attended HBRC public meeting in Waipukurau office 19/4 Attended HBRC public meeting in Wairoa
5.	Media 3/03 Monthly interview with Newstalk ZB 7/4 Monthly interview with Newstalk ZB
6.	Priorities in Month Ahead · Taharua field trip – 5 May
DECISION MAKING PROCESS
7.	As there are no decisions to be made the decision making process does not apply.

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