Meeting of the Hawke's Bay Regional Council

 

 

Date:                 Wednesday 20 March 2013

Time:                9.00 am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

 

Agenda

 

Item       Subject                                                                                                                  Page

 

1.         Welcome/Prayer/Apologies/Notices 

2.         Conflict of Interest Declarations  

3.         Confirmation of Minutes of the Regional Council Meeting held on 27 February 2013

4.         Matters Arising from Minutes of the  Regional Council Meeting held on 27 February 2013

5.         Action Items from Previous Regional Council Meetings

6.         Call for General Business Items

Decision Items

7.         Affixing of Common Seal

8.         Harbourmaster Liability Insurance

9.         Recommendations from the Corporate and Strategic Committee

10.       Adoption of the Draft 2013/14 Annual Plan

11.       Draft Annual Plan 2013-14 Communications Strategy

Information or Performance Monitoring

12.       Business Hawke's Bay Update Presentation (11.00am)

13.       Significant Initiatives Update for Council

14.       Verbal Update on the Drought

15.       General Business  

Decision Items (Public Excluded)

16.       Sale of Leasehold Land Cash Flows

 


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Action Items from Previous Regional Council Meetings

 

Reason for Report

1.      Attachment 1 lists items raised at previous meetings that require actions or follow-ups. 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 Council receives the report “Action Items from Previous Meetings”.

 

 

 

 

Liz Lambert

General Manager (Operations)

 

Andrew Newman

Chief Executive

 

Attachment/s

1View

Actions from Previous Council Meetings

 

 

  


Actions from Previous Council Meetings

Attachment 1

 

Actions from Regional Council Meetings

 

 

Meeting Held 27 February 2013

 

Agenda Item

Action

Person Responsible

Due Date

Status Comment

16

Hawke's Bay Tourism Quarterly Report

HB Tourism to investigate the concerns and the statistics underlying the claims made by Napier Tourism via David George email

AD

 

Cr Dick to provide a copy of the email (tabled) to Ms Dundas for consideration of the issues raised and response as appropriate.

 

Meeting Held 12 December 2012

 

Agenda Item

Action

Person Responsible

Due Date

Status Comment

1

Matters Arising

HB Oil & Gas Exploration economic report to be circulated to Councillors once released by the Minister

LL

 

Report released 7 March & copies distributed to all Councillors

 

Meeting Held 31 October 2012

 

Agenda Item

Action

Person Responsible

Due Date

Status Comment

1

RMA Delegations

A process for advising Council when ‘major’ delegations have been exercised to be developed

IM

 

Discussions underway with other councils to review useful and cost effective ways of doing this

 

 

 


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Affixing of Common Seal

 

Reason for Report

1.       The Common Seal of the Council has been affixed to the following documents and signed by the Chairman or Deputy Chairman and Chief Executive or a Group Manager.

 

 

 

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1     Lot 3 Part Lot 2

          DP 7118

          CT  F2/982

-     Transfer

     

1.1.2     Lot 98

          DP 11780

          CT  C3/519

-     Agreement for Sale and Purchase

          (no discount valuation fee paid after 30 June 2012)

     

1.1.3     Lot

 

 

 

 

 

3667

 

 

 

 

 

 

3673

 

 

 

 

26 February 2013

 

 

 

 

 

 

5 March 2013

1.2

Hawke’s Bay Regional Coastal Environment Plan

 (incorporating Variations 1-3) – adopted at Hawke’s Bay Regional Council meeting on 31 October 2012 – resealed document as change of Minister

 

 

 

 

 

 

3666

 

 

 

 

 

26 February 2013

1.3                                                                    Regional Pest

Regional Pest Management Strategy 2013

3668

1 March 2013

1.4                                                                             Regional

Regional Phytosanitary Pest Management Strategy 2013

 

 

3669

 

1 March 2013

1.5

Memorandum of Agreement

(Ngatarawa Cycle Trail – for widening to accommodate cycle trail)

Pt Lot 1 DP 321496

CT 85751

 

 

 

 

 

3670

 

 

 

 

1 March 2013

1.6                                                                                         

Contract Agreement

Reclad and remedial work at 159 Dalton Street, Napier

 

 

3671

 

1 March 2013

1.7

Entry Agreement Pursuant to the Public Works Act 1981

(To allow NZTA to construct a Slow Vehicle Bay Devils Elbow)

 

 

 

3672

 

 

5 March 2013

 

Decision Making Process

2.       Council is required to make every decision in accordance with the provisions of Sections 77, 78, 80, 81 and 82 of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within these sections of the Act in relation to this item and have concluded the following:

2.1   Sections 97 and 88 of the Act do not apply;

2.2   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 due to the nature and significance of the issue to be considered and decided;

2.3   That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision making process.

 

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.      Confirms the action to affix the Common Seal.

 

 

 

Diane Wisely

Executive Assistant

Liz Lambert 

 

Liz Lambert

General Manager (Operations)

 

Attachment/s

There are no attachments for this report.


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Harbourmaster Liability Insurance

 

Reason for Report

1.      The purpose of this paper is to recommend that Council provides for increased Navigation Safety insurance cover in the 2013/14 Annual Plan.

Background

2.      Council currently has $25 million worth of insurance cover for Harbourmaster Liability and $10 million for Wreck Removal and this insurance has been placed at a premium of $22,000. The Harbourmaster Liability insurance provides cover should the Council, through its navigation safety functions, be shown to be negligent in a manner that causes another party to suffer a loss. The wreck removal is cover for removal of wrecks where the owner has no insurance to remove a wreck.

3.      Staff have reviewed the insurance cover held in light of the Rena incident and concluded that Council should increase its insurance cover.

Harbourmaster Liability Insurance

4.      The Rena grounding in October 2011 off Tauranga has been a trigger for staff to review insurance needs. Rena has cost the insurers in excess of $275 million to date.

5.      If Council is negligent in its duties and it is found that through its negligence Council caused, or contributed, to an incident of this scale, Council could be exposed to similar costs.

6.      Examples potential claims against Council could arise from:

6.1.      Failure to enforce bylaws

6.2.      Failure to ensure staff are properly trained for emergencies and contingencies

6.3.      Failure to regulate the safe arrival and berthage, departure and movement with the harbour of all vessels

6.4.      Failure to undertake adequate hydrographic surveys

6.5.      Failure to provide or maintain navigation aids

6.6.      Failure by the harbourmaster to give directions, either generally or to specific vessels and particularly in case of emergencies

6.7.      Failure to provide pilotage directions

6.8.      Failure to provide vessel traffic services, and

6.9.      Failure to provide directions and passage plans.

7.      Given the costs of recent shipping incidents worldwide, and specifically the Rena, staff do not consider $25 million to be adequate to manage Council’s potential risk should it be shown that Council is found to have caused a shipping incident.

8.      This is supported by a legal opinion from Council’s maritime legal advisor and Council’s insurance advice.

Wreck Removal Insurance

9.      Legal advice indicates that Council’s main exposure is where the wreck insurance is only likely to be required for smaller domestic vessels under 400 gross tonnage, such as fishing trawlers etc. The combined effect of s 363 of the Maritime Transport Act and Marine Protection Rules Part 102 require vessels over 400 gross tonnage to hold a certificate of insurance for oil pollution damage. This in practice entails the ship owner obtaining insurance cover from a P&I Club. P&I cover almost invariably results in the ship owner also acquiring a component of wreck removal insurance.

10.    Based on the information provided by other councils, and costs of comparable actual wreck removals, it appears that Council’s $10M Wreck Removal cover is adequate. This is a subjective assessment and staff cannot say there will not be an underinsured wreck in our region that will cost no more than $10M to remove.

11.    If there was a wreck that was going to cost Council more than $10M to remove, the Council would need to balance the implications of funding the wreck removal from other means vs the option of removing any hazardous substances onboard and leaving the wreck in place after considering cultural, recreational and navigation hazard factors.

Comparative Risk

12.    Council’s insurance cover had been historically aligned with other councils’ cover. This level of cover is the maximum available through Riskpool.

13.    Enquires show that in recent years the following Council’s have obtained the following cover:

13.1.    Northland Regional Council – HM Liability $100M, Wreck Removal $20M

13.2.    Wellington Regional Council – HM Liability $100M, Wreck Removal $10M

14.    Staff consider that the Napier Port to be one of the more risky ports in New Zealand in terms of risk of a significant incident occurring. This is reflected somewhat by Maritime New Zealand’s 2010 Oil Spill Risk Assessment categorising Napier in the highest risk category. Whilst this risk assessment is based on oil risk, it does include assessments of current vessel activity and port environs.

15.    Staff consider that Council should have similar cover as the other major ports in New Zealand and therefore recommend that Council increases its Harbourmaster Liability insurance to $100M.

16.    This recommendation comes with a caveat.

17.    Regional councils are unique in our exposure to liability claims in that we are the only participants in the maritime system that are unable to claim limitation of liability. Regional councils have raised this concern with the Ministry of Transport during the current review of the Maritime Transport Act 1994. Staff are of the understanding that the government is not willing to address this in the current review, and that if reviewed, this will be included in a potential legislative review that stipulates Council liabilities regarding leaky building claims.

18.    This lack of liability limitation has two implications.

18.1.   If Council holds $100M HM liability insurance and is found to have caused $250M worth of costs, the ship insurer/owner would likely pursue Council for whatever portion of tangible assets Council has, up to $150M.

18.2.   Council could be dragged into a claim by a claimant who may just be trying their luck based on no liability limitations if the party that did actually cause the incident does not have enough insurance, or has a statutory/contract liability limitation.

19.    To put this into context, it is understood that the cruise ship Queen Elizabeth, which visits Napier Port, is worth in a vicinity of $825M. It would be cost prohibitive for councils to obtain insurance cover for this amount.

20.    Therefore Council must balance the risk versus the cost. Staff recommend that in addition to providing budget for $100M Harbourmaster Liability insurance cover in the 2013/14 Annual Plan, that this matter is explored by the Chief Executives’ forum to undertake a more qualitative cost vs. risk analysis at a national scale with the involvement of Maritime New Zealand.

Financial and Resource Implications

21.    Council will need to provide an additional $80,000 in the Navigation Safety budget to provide an additional $75M of Harbourmaster Liability insurance cover, using the existing Risk Pool $25M cover as the excess for the new cover.

22.    This is an indicative price that may change when a formal risk assessment is undertaken by the offshore marine underwriters.

23.    There are two options for funding this additional $80,000 budget.

23.1.   Council funds this from the General Funding sources; or

23.2.   Council sets a fixed charge in the Annual Plan using s684B(h) of the Local Government Act 1974.

24.    684B   Bylaws relating to navigation and related activities:- 

A regional council may from time to time, by bylaw under this Act, do all or any of the following things in relation to waters within its region:

...

(h)           Fix fees and charges in respect of the use of any land, building, equipment, or other property, that is owned by the council and operated for navigation-related purposes, and in respect of navigation-related activities the council undertakes, including (without limitation) bylaws—

          (i)       Fixing fees and charges for any function, duty, power, or service carried out or exercised or provided by the council in respect of any ship, maritime facility, offshore installation, pipeline, oil transfer site, navigational aid, or marine farm, or in respect of navigation generally:

          (ii)      Fixing such fees and charges on the basis of the nature of the facility, the location and use of the facility, the size of the vessel, or on any other differential basis:

          (iii)     Specifying the persons who are liable to pay such fees and charges

25.    Staff consider that the majority of the liability and risk coming from Council’s navigation safety functions is as a result of having a major port in the region. Some risk and liability would still exist if there was no major port in our region by the way of ships transiting through our region or being in our region during an emergency.

26.    Therefore Council could be justified in setting a fee in the Annual Plan, all or a proportion of which, is recovered from the Napier Port.

27.    Despite the majority of the risk and liability stemming from the port existing in our region, there is a significant public benefit to the regional GDP as a result of the port’s existence. Therefore, it is appropriate that the public contribute to a portion of the cost of this insurance.

28.    Staff do not consider that there are any other parties that can be easily identified, and administrated, that should be liable for a fixed charge to contribute to these cost themselves.

Decision Making Process

29.    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:

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

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

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

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

29.5.   Options that have been considered include keeping the current level of insurance cover, buying more insurance cover as recommended and buying significantly more insurance cover than recommended. If more insurance is acquired, then funding options of this insurance that were considered were 100% General Funding Sources, 100% of costs as a fixed charge to the Port of Napier and a mixed funding option

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

29.7.   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

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.      Approves staff including budget provision in the amount of $80,000 in the draft 2013/14 Annual Plan for increased Harbourmaster Liability insurance cover.

3.      Instructs staff to discuss with Port of Napier Ltd, the payment of a contribution to the costs of Harbourmaster Liability insurance as a result of Council carrying out its functions, duties and powers exercised by the Council as a result of the Napier Port existing. This charge will be included in the Maritime Transport and Navigation Charges.

 

 

 

Bryce Lawrence

Manager - Compliance and Harbours

 

Iain Maxwell

Group Manager

Resource Management

 

Attachment/s

There are no attachments for this report.


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Recommendations from the Corporate and Strategic Committee

 

Reason for Report

1.      The following matters were considered by the Corporate and Strategic Committee on 6 March 2013 and are now presented to Council for consideration and approval.

Decision Making Process

2.      These items have all been specifically considered at the Committee level.

 

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.

HBLASS Draft Statement of Intent 2013/14

2.      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.

Trees on Farms - Carbon Market Update

3.      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.

4.      In view of the decline of the carbon market, instructs staff to investigate alternative funding sources and incentives to encourage the establishment of Trees on Farms that complement livestock and agricultural systems and protect the environment.

Resource Management Charges

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

Environment Awards

6.       Instructs staff to advise Council as to how the process of recommending Green Ribbon Awards across the range of categories can be fairly considered.

7.      Instructs staff to investigate a means of recognising the contributions of those groups and individuals outside of the currently established awards system that can be made by Council.

 

 

Liz Lambert

General Manager (Operations)

 

 

Attachment/s

There are no attachments for this report.


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Adoption of the Draft 2013/14 Annual Plan

 

Reason for Report

1.      Council needs to consider and adopt the Draft Annual Plan 2013/14 so that the Plan can be finalised, printed and distributed for public consultation by Wednesday 3 April 2013.

Process

2.      Council discussed the development of the Draft Annual Plan at the Council workshop on 14 February 2013.  As a result of discussions at that workshop the Annual Plan as presented to this Council meeting shows a general funded deficit of $166,000 – this compares to a deficit of $49,000 in the Long Term Plan 2012-22 (LTP) for the 2013/14 year.

3.      The purpose of an Annual Plan is to continue the themes as set out in the LTP and to highlight where there have been any changes from the financials and policies as set out in that LTP.  Accordingly, the Draft Annual Plan presented to this Council meeting includes sections in the introductory part of the Plan which covers changes and amendments to the LTP.

4.      As set out in the 14 February 2013 Council workshop, the main changes from the LTP have been the substantial reductions in interest income due to falling interest rates from the levels estimated in the LTP, and reduced returns from investment activities proposed in the LTP due to the pace of investment activity being slower than anticipated in the LTP.  In order to offset this reduced revenue, Council has undertaken a cost reduction exercise which has reduced the expenditure levels from that proposed in the LTP by $850,000.  These reductions are predominantly in Council’s overheads, consultancy costs and reduced increases for inflation provided to projects. 

5.      Council has also approved an amendment to the revenue and financing policy which covers the Animal Pest Control targeted rate to provide funding for site specific, research and general advice programmes.  Details of this change are set out in the introduction section of the Draft Annual Plan under “Amendments to the Long Term Plan 2012-22”.  This amendment has been audited by Audit New Zealand and their audit report is included in the Plan.

6.      The increase in rates for 2013/14 stated in the LTP was 4%.  This is now proposed to increase to 4.57%.  This marginal increase in rates is due to Council resolutions on increasing targeted rates for the Ohuia/Whakaki flood and drainage scheme which will affect six rateable properties, and for the Makara flood and drainage scheme which will affect 75 rateable properties.  The rate increases for these two flood and drainage schemes are required to fund part of the substantial additional expenditure on capital works to provide flood protection to farmers within that catchment.

7.      At the time of writing this Council paper the section included in the Chairman and Chief Executive’s comments entitled “Investments Managed Through Hawke’s Bay Regional Investment Company Limited (HBRIC Ltd)” as set out in Part 1, Introduction in the Plan are still to be considered as to content by HBRIC Ltd.

8.      The deficit of $166,000 as presented in the Draft Annual Plan to be considered by Council today may be subject to change depending on the resolutions Council makes at this meeting regarding the “Harbourmaster Liability Insurance” paper.

Draft Annual Plan 2013/14 Document

9.      The proposed Draft Annual Plan 2013/14, attached, is still being proofed by staff, however apart from some possible spelling adjustments and layout changes, the content of the Draft Annual Plan 2013/14 as set out in the Attachment is proposed to be available to the public on Wednesday 3 April 2013 for consultation.

Summary Annual Plan

10.    A summary of the Annual Plan as required by section 89 of the Local Government Act 2002 will be sent out to all households in the week commencing 8 April 2013. The summary of the Draft Plan will be included in the “Our Place” publication and will focus on those areas where there have been changes to the Long Term Plan.

Decision Making Process

11.    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 the Annual Plan as prepared under section 5 of the Act and sub part 2 of this section states that the Council must use the special consultative procedure as set out in section 85 of the Act when adopting the Annual Plan.

12.    This Draft Annual Plan is not subject to audit, however section 94 of the Act does state that Long Term Council Community Plans and any amendments to such plans need to be audited. This Plan proposes one amendment to Council’s LTP and this has been audited.

 

Recommendations

That Council:

1.      Confirms that the Draft Annual Plan 2013/14 will be subject to a special consultative procedure as required by section 95 (2) and 85 of the Local Government Act 2002.

2.      Adopts the proposed scale and schedule of charges as set out in the “Resource Management Charges” section of the Draft Annual Plan 2013/14 included in Part 3 of that Plan, that these be part of the special consultative process as set out in section 85 of the Local Government Act 2002 (in conjunction with the Draft Annual Plan) and be part of the overall Statement of Proposal in accordance with section 36 (2) of the Resource Management Act 1991.

3.      Agrees to fund the underlying deficit shown in the Plan from cash operating balances which are estimated to be at a level which is sufficient to provide such funding.

4.      Adopts the Draft Annual Plan 2013/14 incorporating the changes initiated by Council on 14 February 2013 and any changes made by Council at its meeting held on 20 March 2013, under sections 85 & 95 of the Local Government Act 2002 for the purposes of initiating special consultative procedure and that the Draft Annual Plan, as adopted, will be the Statement of Proposal.

5.      Resolves that where special consultative procedures are required for any significant decisions that are included in the Draft Annual Plan 2013/14, that the Statement of Proposal as required under section 83(1)(a)(i) of the Local Government Act 2002 is the Draft Annual Plan 2013/14.

6.      Resolves that the summary of information as required by section 83(1)(a)(ii) in section 89 will be in the form of the Draft Annual Plan Summary and will be issued in the April issue of the ‘Our Place’.

7.      Resolves that the public notice pursuant to section 83(e), (f) & (g) of the Local Government Act 2002 be given to notify the adoption of the Draft Annual Plan with a closing date of submissions of 10 May 2013.

 

 

 

 

Paul Drury

Group Manager

Corporate Services

 

 

Liz Lambert

General Manager Operations

 

Attachment/s

1

Welcome

 

Under Separate Cover

2

Part 1 Introduction

 

Under Separate Cover

3

Part 2 HBRC's Activities

 

Under Separate Cover

4

Part 3 Financial Information

 

Under Separate Cover

  


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Draft Annual Plan 2013-14 Communications Strategy

 

Reason for Report

1.      The Draft Annual Plan enables the regional community to have their say on the work of HBRC proposed for 2013-14. This item outlines how we plan to promote the Annual Plan and activate the community’s response.

Background

2.      For the 2012-22 Draft LTP, HBRC focused on printed messages, advertising, media releases, HBRC’s website, social media, video and public expos to gather input and comment from the public.

3.      This year, we propose a mix of print advertising, social media and video, supported by the traditional channels of press and radio.

4.      In addition we seek guidance councillors’ preference on how direct public engagement should occur, and offer the option of “HBRC Café Chats” for Wairoa, Waipawa, Napier and Hastings. 

5.      HBRC would also offer a presentation to any interested group, at their request, to discuss the Draft Annual Plan, and to seek their input as a submission.

Activate the Community

Draft Annual Plan Document

6.      HBRC is transitioning to the digital provision of Annual Plans, via HBRC’s website.  However, this document will also be printed in-house in small numbers using HBRC’s new copies, achieving a significant cost reduction. Copies will be mailed to key stakeholders on HBRC’s database, including Territorial Local Authorities, HBRIC Ltd, Napier Port, central Government departments, Audit New Zealand and interest groups. Copies are also provided to public libraries in Hawke’s Bay (8 in total) to have on display and to enable public access.

Draft Annual Plan Summary

7.      The Local Government Act 2002 requires that a Summary of Information be prepared which should be a fair representation of the major matters in the Draft Annual Plan. It is proposed that the April issue of Our Place include a one-page feature containing the summary. Our Place will be delivered to approximately 53,000 households across the region in the week beginning 1 April 2013.

Digital and Social Media

8.      HBRC will promote the Draft Annual Plan and submissions using relevant email databases, the HBRC website, our facebook, twitter, google+ and LinkedIn pages. Digital channels for Maori will also be investigated.

9.      An electronic version of the Draft Plan Summary will be emailed to stakeholder groups, for example iwi, Councillors, Maori Committee, sector, etc. HBRC will encourage this email to be forwarded to others. It will also contain a link to the Draft Plan video.

10.    Staff will prepare a short video to cover key points in the Draft Plan and promote the consultation and submission process. This will be available online via the website and social media, uploaded to YouTube, visible on the HBRC reception TV, at any presentations, public meetings or HBRC Café Chats.


Advertising

11.    The Local Government Act 2002 requires that public notice be given to advise the availability of the Draft Plan. Public notices will be placed in newspapers throughout the region noting the availability of copies of the Draft Annual Plan and Summary of Information, the public opportunities organised for the area covered by the newspaper, and the closing date for submissions.

CHB Mail and Wairoa Star              Tuesday, 2 April

Napier Mail and Hastings Mail         Wednesday, 3 April

Hawke’s Bay Today                        Wednesday, 3 April

12.    Radio advertising on The Radio Network and MediaWorks selected stations will also promote the Draft Plan and the window for submissions.

13.    A reminder ad for the closing date for submissions will be placed in area-specific papers only, due to prior wider notification at the beginning of the consultation period. Closing of Submission Period Reminder ads will appear in Hawke’s Bay Today, CHB Mail and Wairoa Star in the week beginning 6 May.

News Media

14.    News media will not be asked to a Media Briefing for the Draft Annual Plan, but will be invited to engage with HBRC on any matter within it. This will occur early April 2013.

15.    A media release will be issued to all local newspapers and radio news stations to coincide with the release of the Draft Annual Plan.  Maori media will be included.

 HBRC Café Chats

16.    Staff seek guidance on the provision of Public Meetings or the preferred alternative of less formal HBRC Cafe Chats – to enable direct engagement between the public and the HBRC Chairman and Councillors.

17.    Café Chats would occur in the week beginning 8 April.  For example, from 4.00-6.00pm on a weekday with possible locations at: East End Cafe - Wairoa, Opera Kitchen - Hastings, Raffles Cafe - Napier and Misty River Cafe - Waipawa.  HBRC would cover the cost of light refreshments.

Presentations to Groups

18.    HBRC staff and Councillors would be invited to attend sector/ interest group meetings by request. This offer will be promoted via email and/ or personal letters. Presentations are preferred due to the traditional low level of attendance at public meetings.

Staff

19.    Staff will receive a full briefing on the Draft Annual Plan prior to its release, with opportunity for further comment in Snapshot and at a CE or General Manager briefing session for staff.

Budget

20.    Printing and promotion costs are estimated as follows.

Draft Annual Plan print/ digital/ video                                $ 1,500

Final Annual Plan print/ digital                                           $    900

Our Place feature page                                                    $ 1,000

Advertising (incl public notices)                                        $ 4,500

HBRC Cafe Chats                                                            $ 2,000

                                                                                          $ 9,900

Decision Making Process

21.    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:

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

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

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

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

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

 

 

Recommendations

That 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.    Endorses the proposed promotion and community engagement programme for the Draft Annual Plan 2013-14.

 

 

 

 

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 COUNCI

Wednesday 20 March 2013

SUBJECT: Business Hawke's Bay Update Presentation

 

Reason for Report

1.      The purpose of this paper is to provide Council with an update from Business Hawke’s Bay on their activities and work programme.

Background

2.      Business Hawke’s Bay was established in 2011 as an active collaboration between the Hawke’s Bay Chamber of Commerce, Councils, and participants to advance jobs and business growth. The Hawke’s Bay Regional Council contributes $100,000 per annum to Business Hawke’s Bay.

3.      Two representatives from Business Hawke’s Bay will make a verbal presentation to the Committee.

Decision Making Process

4.      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.

 

 


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: 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.

Water Metering

2.      1443 resource consents are reporting their water use.

3.      448 consent holders, covering 668 individual resource consents are now using Council’s web entry system to report their water use, with more consent holders joining weekly. This is an increase of 131 individual resource consents since the last quarterly update.

4.      425 consents are reporting their water use via telemetry and are using the Council web site to view their data. Their data is telemetered to the Council and we now display the water use on our web site for their use.

5.      There are a further 350 consents, reporting there water use via the portable pump program

6.      The uptake of consent holders using either telemetry or the Council web entry system has surpassed the projected target of 677 consent holders using these methods by June 2013.

7.      429 consents were required to have a meter installed by 10 November 2012, Compliance have been following up on 70 consents that have not contacted Council to inform if meters have been installed, a significant number of these consent are currently not being exercised therefore, so long as the take point is tamper proof they are not yet required to install meters or report their water use.

Tangoio Soil Conservation Reserve

8.      After sending strong signals that it does not wish to continue to own the Tangoio Soil Conservation Reserve, and that the Maungaharuru Treaty Settlement process would provide an opportunity through which the ownership could be transferred to the region, the Crown has advised that it is unable to unable to make the transfer as originally envisaged.  The Treaty settlement discussion is therefore focused on the use of the fund associated with the Reserve.  Staff are continuing to work with the Crown agency responsible for the Reserve (LINZ) in order to clarify ownership arrangements and seek a commitment to transfer of the Reserve to regional ownership at some time in the future.

Flood Control and Drainage Schemes

9.      Replacement of the Ohuia pump station (an asset of the Ohuia Scheme east of Wairoa) is programmed to commence in April.  Tenders are currently being called for the work and staff are communicating with the ratepayers to finalise funding arrangements. 

10.    A Statement of Proposal for the Makara Scheme including reinstatement of the level of flood protection provided by the No 1 dam and the review of the classification system has been sent to all ratepayers.  Submissions close on 2 April 2013 and a hearing will be held on 12 April.


Biosecurity

11.    Preparation for the review of the Regional Pest Management Strategies has commenced.  The programme for completion of these reviews cannot be finalised until new regulations have been passed in accordance with the requirements of the Act, however consultation with industry groups (particularly with regard to an extension of the Regional Phytosanitary Strategy) to increase the range of pests covered has commenced.

Resource Management Plan Changes

12.    The table below documents the current status of various Plan Change processes.

Change

Indicative notification timeframe

Regional Coastal Environment Plan

N/A (awaiting Minister of Conservation’s approval of coastal marine area-related provisions before RCEP made operative)

Taharua strategy and plan change

Ongoing. Verbal update presented to Councillors in February 2013.  Further update to E&S Committee in June following meetings with key landowner in Taharua catchment post withdrawal of Eco-N product. Staff have signalled an extension to the time frame for plan change notification in the Draft Annual Plan.

Built Environment RPS Change (‘Change 4’)

Notified on 7 December 2011.  Hearing held in December, Council adopted Panel’s recommendations on 27 Feb 2013 and decisions to be issued in March.

Land Use and Water RPS Change
(‘Change 5’)

Notified on 2 October 2012.  29 submissions and nine further submissions received.  Hearing scheduled for 10-13 April 2013.  Council has appointed a panel of four Commissioners to hear and decide on the submissions on Council’s behalf. 

 

Tukituki Plan Change (‘Change 6’)

Adopted by Council on 27 February 2013 to be publicly notified on 4 May 2013.  Council will request that the Minister for the Environment ‘calls-in’ Change 6 to be considered alongside the Ruataniwha Water Storage Applications by a Board of Inquiry.

Greater Heretaunga / Ahuriri area (aka ‘TANK’ project)

Council has resolved to take an integrated approach to managing the surface and groundwater resources of the Heretaunga zone which includes Tutaekuri and Ngaruroro rivers, Karamu and Clive rivers and the Heretaunga Plains groundwater system.  The TANK stakeholder Group has met four times to date and a field trip has been undertaken.  Staff have signalled an extension to the time frame for plan change notification in the Draft Annual Plan.

 

Transport

13.    The Regional Transport Committee has confirmed its areas of priority for 2013, these are freight; safety; legislative changes; and other major projects including the Ruataniwha water storage project and regional cycling plan.

14.    The Regional Cycling Plan is currently being drafted. To seek input into this plan a half day workshop is being held with key stakeholders including Hawke’s Bay councils, District Health Board, HB Tourism, ACC, Sport Hawke’s Bay, NZTA and other interested parties.

15.    Following proposed legislation changes to the Land Transport Management Act advice was received from the Ministry of Transport (MOT) stating that contracts being tendered before the new legislation has been enacted on 1 April, which would commence after this date, would be unlawful. The MOT recommended contracts be extended until the full implications of the law changes are identified, which include the requirement for a new Regional Public Transport Plan. Therefore Council will be working with its current bus operator, Go Bus Transport Ltd to work out a mutually beneficial extension. Council was due to tender the urban bus services contract but this has now been postponed.

Land

16.    An operational plan for the 2013/14 financial year is being developed.  This will show a shift in focus for the Land management team with the implementation of the Tukituki Plan change becoming a significant part of the role of the team.  This operational plan will be considered by the Environment and Services Committee at its meeting on 12 June 2013.

Heat Smart

17.    Following on from a very successful 2011/12 year, progress in 2012/13 continues to be buoyant. Key points to note are:

17.1.       With effect from August 1 2012 interest rates on loans by Council were reduced to 6% for insulation and 3% for clean heat.

17.2.       During the winter period of 2012 no NES exceedances were recorded in the Napier airshed, 10 were recorded in Hastings and one in Awatoto. The challenge is to maintain this or improve on it during colder, stiller winters.

17.3.       HBRC has secured EECA allocations to meet targets for the remainder of 2012/13.

17.4.       Loans to grant ratios were estimated at 50:50 but are tracking at 35:65 and this will influence re-forecasting in April. The planned cash flow for the project currently does not reflect the higher level of grants compared to loans.

       Volumes

 

Loan Type

7 Months to 31 January 2013

LTP Budget Volumes

Pro Rata Target Volumes

Actual Volumes

Actual Over Budget Target (58%)

Insulation Loans

600

350

528

88%

Clean Heat Loans

450

263

254

56%

Clean Heat Grants

300

175

494

165%

Totals

1,350

788

1,276

95%

       Expenditure (excluding GST)

 

Loan Type

7 Months to 31 January 2013

LTP Budget $000

Pro Rata Target $000

Actual $000

Actual Over Budget Target (58%)

Insulation Loans

1,140

665

916

80%

Clean Heat Loans

1,255

732

660

53%

Clean Heat Grants

183

107

312

171%

Totals

2,578

1,504

1,888

73%

 

18.    2013/14 is another phase out year as per the rules in the RRMP. With the withdrawal of EECA from clean heat incentives (still engaged in home insulation) the challenge for HBRC is to offer sufficient incentives to maintain the momentum generated to date by HeatSmart. A planned review of financial incentives has been brought forward to address this.

Open Spaces

19.    Part two of the Regional Parks Network Plan is being developed.  This will establish objectives, policies and methods for the management of the overall Open Space areas and will provide the framework for the development of individual management plans for each of the open space areas.


Treaty Settlements

20.    HBRC continues to engage with the Crown and Treaty claimant groups on matters pertinent to the regional Council. At present this involves discussions on the Maungaharuru-Tangitu Iwi Inc claim (with Deed of Settlement to be initialled on 21 March), and with Mana Ahuriri (who are one-two years away from initialling their Deed.)

Strategic Alliance: Department of Conservation (DoC), Greater Wellington, Horizons and Hawke’s Bay Regional Council.

21.    An appointment has been made, for a fixed term 12 month period commenced January 2013, to identify and facilitate opportunities for collaboration between the organisations. It is expected that a list of potential projects will be considered and developed over the next two months.

Business Hawke’s Bay

22.    Business Hawke’s Bay has advertised for a Business Development role to replace Michaela Vodanovich, and the Chamber of Commerce is making progress on appointing a new CEO with estimated start date about the end of April.

23.    Food sector: A Food Network Facilitator has now been appointed to drive commercial aspects of the Food sector.  The concept of developing a sector strategy has been discussed.

24.    Business Hawke’s Bay is coordinating with Councils, EIT, Massey and other parties a programme of work around skills and business development to support the downstream benefits of RWS Scheme.

Decision Making Process

25.    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 ‘Significant Initiatives Update for Council’.

 

 

Iain Maxwell

Group Manager

Resource Management

Mike Adye

Group Manager

Asset Management

 

Helen Codlin

Group Manager

Strategic Development

 

Paul Drury

Group Manager

Corporate Services

Liz Lambert

General Manager (Operations)

 

 

 

 

Attachment/s

There are no attachments for this report.  


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 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.

Item

Topic

Councillor / Staff

1.   

 

 

2.   

 

 

3.   

 

 

4.   

 

 

5.   

 

 

 

  


HAWKE’S BAY REGIONAL COUNCIL

Wednesday 20 March 2013

SUBJECT: Sale of Leasehold Land Cash Flows

That Council excludes the public from this section of the meeting, being Agenda Item 16 Sale of Leasehold Land Cash Flows with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being as follows:

 

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION

GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION

Sale of Leasehold Land Cash Flows

7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

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

 

 

 

 

Paul Drury

Group Manager

Corporate Services