Agenda of Corporate and Strategic Committee

Meeting of the Corporate and Strategic Committee

Date: Wednesday 6 March 2013

Time: 09.00 am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Subject Page

1. Welcome/Notices/Apologies

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Corporate and Strategic Committee held on 30 January 2013

4. Matters Arising from Minutes of the Corporate and Strategic Committee held on 30 January 2013

5. Action Items from Previous Corporate and Strategic Committee meetings

6. Call for General Business Items

Decision Items

7. HBLASS Draft Statement of Intent 2013/14

8. Trees on Farms - Carbon Market Update

9. Resource Management Charges

Information or Performance Monitoring

10. Environment Awards

11. General Business

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: Action Items from Previous Corporate and Strategic Committee meetings

Reason for Report

1. In order to track items raised at previous meetings that require actions or follow-ups, a list of outstanding items is prepared for each meeting. All action items indicate who is responsible for each action, when it is expected to be completed and a brief status comment. Once the items have been completed and reported to Council they will be removed from the list.

Decision Making Process

2. 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 required in terms of the Local Government Act’s provisions, the decision making procedures set out in the Act do not apply.

Recommendation

1. That the Committee receives the report “Action Items from Previous Corporate and Strategic Committee Meetings”.

Andrew Newman

Chief Executive

Liz Lambert

General Manager Operations

Attachment/s

1 View

Action Items from Previous Meetings

Action Items from Previous Meetings

Attachment 1

Actions from Corporate and Strategic Committee Meetings

30 January 2013

Agenda Item	Action	Person Responsible	Due Date	Status Comment
10 Infrastructure Asset Insurance	Staff to investigate opportunities for aligning insurance cover with TLAs in the region	MA	30 Sept	Ongoing. Will be reported back in conjunction with internal infrastructure asset insurance arrangements.
11 General Business	Request for report on Karamu Stream celery weed	IM	30 June	Will be presented to a future E&S Committee meeting
11 General Business	Request for policy/guidelines on General Business	LH	1 April	Reviewing ‘minor items not on the agenda’ Standing Order 3.7.6 for discussion with Chairman prior to Council consideration

14 November 2012

Agenda Item	Action	Person Responsible	Due Date	Status Comment
11 General Business	Request for staff report early in New Year on development of the 2013 Environmental Awards	LL		Paper on 6 March C&S Agenda

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: HBLASS Draft Statement of Intent 2013/14

Reason for Report

1. To comply with Schedule 8 of the Local Government Act 2002 the Board of Hawke’s Bay LASS Limited, a Council Controlled Organisation, must prepare and submit a draft Statement of Intent to its shareholders for adoption.

Discussion

2. In accordance with the requirements of Schedule 8 of the Local Government Act each Council must consider the draft Statement of Intent. The attached draft Statement of Intent, for which approval is being sought, covers the period for 2013/14.

3. Following the Council’s recent discussion on the Statement of Intent 2012/13 it is suggested that this Committee makes recommendations to Council on further activities it wishes to see considered by the Board for investigation. As a shareholder Council can then seek the input of these activities into the final Statement of Intent.

Decision Making Process

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

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

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

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

4.4. The persons affected by this decision are ratepayers in the region.

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

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

Recommendations

The Corporate and Strategic Committee recommends 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. Receives the draft Statement of Intent of HB LASS for 2013/14.

3. Undertakes to provide any comments on the Draft SOI to HB LASS Ltd within two months of 1 March (LGA Sch8 cl3) to enable delivery of the completed Statement of Intent to Council on or before 30 June 2013.

Liz Lambert

General Manager (Operations)

Attachment/s

1 View

HB LASS Draft 2013-14 Statement of Intent

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: Trees on Farms - Carbon Market Update

Reason for Report

1. At their meeting on 26 September 2012, Council resolved to instruct staff to bring a paper to Council by 28 February 2013, providing funding options (including hedging in the carbon market) for Council around the ‘Trees on Farms’ scheme, including the implications on cash flows contained in the LTP, of delaying returns until stumpage.

2. Since that time there has been further deterioration in the carbon price. Staff continue to monitor the situation, however at this stage do not believe that work to develop funding options (including hedging on the carbon market) is justified.

3. This report provides Council with a carbon forecast update and seeks agreement for ongoing monitoring of the market.

Background

4. Attached is a report from CO2 New Zealand Chief Executive Greg Adlam providing an update on the domestic and global carbon markets.

5. This report outlines a range of factors that are currently influencing the markets and their potential future direction.

6. The report suggests that there is unlikely to be a significant positive change in carbon prices over the next 12-24 months. However carbon markets and international commitments to climate change still exist. It is possible that global economic recovery or domestic carbon market policy will see carbon markets strengthen in the mid to longer term.

7. Staff suggest that carbon markets should be reviewed again in 12-18 months time to assess whether markets have or are likely to strengthen sufficiently to consider an investment in the Trees on Farms project.

Decision Making Process

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

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

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

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

8.4. Options that have been considered include to cease monitoring the carbon market.

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

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

Recommendations

1. That the Corporate and Strategic Committee receives the report

The Corporate and Strategic Committee recommends that Council:

2. Agrees that staff should continue to monitor the carbon market and when there are strong signals for future strengthening, seek Council’s agreement to reactivate the Trees on Farms concept through the provision of funding options (including hedging in the carbon market) and the implications of those options on future cash flows.

Campbell Leckie

Manager Land Services

Mike Adye

Group Manager Asset Management

Attachment/s

1 View

Carbon Markets Brief

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: Resource Management Charges

Reason for Report

1. This report updates Council on a review of charges for the Resource Management Group and seeks approval to amend these charges for the 2013-2014 annual plan.

Changes

2. Changes to Basic Charges reflect changes to the hourly base rates forecast in the Long Term Plan (LTP).

3. Water measuring device charges have been changed to reflect changes in the hourly base rates forecast in the LTP.

4. Changes to the Monitoring domestic waste water systems charges also reflect changes in the hourly base rates forecast in the LTP.

5. A reduction of the fixed charge under Low flow monitoring charges is proposed, with a move to an accurate assessment of actual and reasonable charging for areas where more effort is required.

6. The increases to the Marine Transport Act and Navigation and safety by-laws charges reflect increased employment costs. In addition, this work has a higher proportion of external costs to FTEs and was consequentially having an unjustifiable increase to overall compliance charges. The changes remove this and ensure the costs lie where they fall.

7. The increased ‘sales’ or charge rates in Table 6 – Charge rates are proposed to increase to reflect the increased hourly rates noted above in paragraphs 2 through 4.

Financial and Resource Implications

8. There are no resourcing implications, however should the charges not be approved, the charges levied against activities noted will not be sufficient to meet budget and projects operating against these charges will not achieve targets.

Decision Making Process

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

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

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

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

9.4. The persons affected by this decision are all persons liable to pay these charges.

9.5. Options that have been considered include to not increase the charges.

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

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

Recommendations

The Corporate and Strategic Committee recommends that Council:

2. Agrees to the inclusion of cost increases to the Resource Management charges in the draft Annual Plan 2013-14 for public submission.

Iain Maxwell

Group Manager

Resource Management

Bryce Lawrence

Manager - Compliance and Harbours

Malcolm Miller

Manager Consents

Attachment/s

1 View

Proposed Changes to the Resource Management Charges

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: Environment Awards

Reason for Report

1. The purpose of this report is to outline the rationale to update the Awards programmes with which Council has involvement. It has been prepared principally to address a query as to why Council no longer organises the Environment Awards.

Background

2. The Hawke’s Bay Environment Awards (HBEA) was introduced to the region by HBRC in 1995, eighteen years ago. It was in part a means to strengthen ties to the regional community.

3. HBEA was also a means to celebrate what were, at the time, innovative environmental practices, including wetland development, native bush restoration and waste management.

4. HBEA has been a regional initiative with local councils since 2002, however in 2012 Napier City withdrew support funding. The Department of Conservation became an awards partner in 2011, but are undergoing a significant restructure; with the Nature Central and Poutiri Ao O Tane projects reshaping the current DOC model.

5. Numerous alternative sector and group focused initiatives already recognise in-region environmental efforts. These include annual civic service awards, the Farm Environment Awards, the Chamber of Commerce Business Awards and the Enviroschools programme.

6. The prestigious, national Green Ribbon Awards is held annually, in addition to the NZ Sustainable 60 Awards and NZI Sustainable Business Awards. HBRC staff continue to support annual nominations towards the Green Ribbon Awards.

Environmental Sustainability

7. Distinct from award events, programmes that press environmentally-sustainable, responsible practices include Enviro-Mark, the Rata programme, carboNZero and Qualmark,

8. The Sustainable Dairying: Water Accord good management practice standards include commitments to target riparian planting, apply standards for new dairy farms, with measures to improve the efficiency of water and nutrient use on farms, with the support of Federated Farmers and dairy companies, including Fonterra.

9. HBRC offers funding and recognition through LEAF the Local Environment Action Fund.

10. The regional community also has the support of Sustaining Hawke’s Bay Trust and the Hawke’s Bay Environment Centre. Water minimisation and education programmes are offered by city and district councils, supporting recycling, hazardous waste collection and e-waste recycling programmes. Note that many of these activities are now considered routine and common practice, and regularly covered by mainstream media.

11. Media coverage of the range of HBRC’s activities, including its diverse partnerships, is consistent and largely positive.

12. HBRC is well-connected to the regional community – 97 strategic alliance and stakeholder groups are on record, as of January 2013.

Options Considered

13. Given the councillor workload, staff met in November 2012 to consider the proposed plan to hold an awards programme in 2013. The options tabled during that meeting were to continue, review or cancel the current event programme.

14. In view of the event alternatives disclosed above, the community’s mainstream adoption of sustainable practices, the withdrawal of Napier City and challenges facing the Department of Conservation, it was suggested, discussed and finally decided that the Hawke’s Bay Environment Awards cease.

15. HBRC’s funding contribution to the Environment Awards was from the External Relations Group, a biennial allocation of $5,000. This funding is redirected toward LEAF support, and Hawke’s Bay Trails promotion/ marketing.

Next Steps

16. Staff sustain focus on HBRC’s Local Environment Action Fund, the support of Green Ribbon award nominations, continue to work closely with other local councils, agencies, businesses, iwi groups, schools and the public.

17. HBRC maintains support for the Enviroschools programme, the Farm Environment Awards, the Chamber of Commerce Business Awards, and opportunities arising from the Nature Central partnership.

18. HBRC celebrates good practice in-region through Our Place, targeted newsletters and through normal media channels.

Decision Making Process

19. 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 the Corporate and Strategic Committee receives the report.

Drew Broadley

Community Engagement and Communications Manager

Liz Lambert

General Manager (Operations)

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 06 March 2013

SUBJECT: General Business

Reason for Report

This document has been prepared to assist Councillors note the General Business to be discussed as determined earlier in Agenda Item 6.

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