MINUTES OF A meeting of the Regional Council
Date: Wednesday 25 September 2013
Time: 9.00 am
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
T Gilbertson
N Kirton
E McGregor
L Remmerswaal
K Rose
C Scott
M Douglas
F Wilson - Chairman
In Attendance: M Mohi – Chairman – Maori Committee
E Lambert – Interim Chief Executive
I Maxwell – Group Manager Resource Management
P Drury – Group Manager Corporate Services
L Hooper – Governance & Corporate Administration Manager
C Gilbertson – Transport Manager
M Collings – Corporate Accountant
A Newman – Managing Director HBRIC Ltd
G Hansen – Group Manager Water Initiatives
D MacLeod – Commercial Manager, HBRIC Ltd
S Daysh – Consultant, EMS Limited
The Chairman welcomed everyone present to the meeting, this being the last for the 2010-13 Triennium. Councillor Remmerswaal offered the prayer.
There were no notices, nor apologies.
2. Conflict of Interest Declarations
There were no conflict of interest declarations.
3. Confirmation of Minutes of the Regional Council Meeting Held on 28 August 2013
Minutes of the Regional Council Meeting held on Wednesday, 28 August 2013, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and accurate record. CARRIED |
4. Matters Arising From Minutes of the Regional Council Meeting Held on Wednesday 28 August 2013
There were no matters arising from the minutes.
Call For General Business Items |
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Oil & Gas Exploration Block Offer – Ms Lambert Tamatea Meeting – Mr Mohi Reports to be Tabled – Cr Scott |
Action Items From Previous Council Meetings |
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Mr Maxwell advised that the Climate Change report requested would be prepared by a staff member, and would be presented at the November Environment and Services Committee meeting as per the Action Items list. Ms Lambert advised that the remainder of Action Items were all completed as noted. It was confirmed that the LGOIMA information had been provided at Council’s request. |
1. That Council receives the report “Action Items from Previous Meetings”.
CARRIED |
Affixing of Common Seal 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.
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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. CARRIED |
Report and Recommendations from the Regional Transport Committee Meeting Held 30 August 2013 |
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Ms Gilbertson provided commentary advising that the legislation amendments affected the constitution of the committee, and would be considered at the new Council’s first ordinary meeting. Cr Dick, RTC Chairman, provided his view that the Committee has worked hard to achieve significant gains. Ms Gilbertson advised that TLA representatives had expressed concerns about maintenance costs related to the pathways / cycleways. A steering group will be formed to oversee the Regional Cycling Plan, and a separate working group to develop the communications and marketing plan. Pakowhai Links Expressway is being reconfigured to include a roundabout instead of lights, and will include future proofing measures. The temporary measures on the State Highway at the Airport are being investigated as to the safest intersection configuration. No funds are allocated to any significant works at this junction. Cr Dick provided an update on progress toward resolving the Napier-Gisborne rail line, including that squash trade projection samples had been provided to Minister Tremain and discussions with central government are ongoing. Forestry trade out of Wairoa alone is not sufficient for the line to be viable. A figure of up to $4M was quoted as being the amount required of the government to invest to repair the line. |
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. Transport Manager’s Report 2. Recommends to the incoming Regional Council that appropriate sector and objective representatives are included as members of the Regional Transport Committee. 3. That Council notes that the following reports were received by the Regional Transport Committee. 3.1 Hawke's Bay Trails - Marketing and Communication Plan 3.2 Key Project Updates - Regional Land Transport Programme 3.3 Public Transport Update 3.4 East Coast Rail Line - Verbal Update. CARRIED |
Recommendations from the Corporate and Strategic Committee |
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Ms Lambert provided an overview of the recommendations from the Committee for further recommendation to the incoming Council. Discussion surrounding the Decision of the Committee to be a Decision of Council on the Regional Sports Park issue covered the rationale for the Committee moving to consider it as a matter requiring urgency. Concern was expressed, that it appeared that some of the conditions of the funds being granted were still outstanding and sought assurance that Council staff would ensure that those conditions were met prior to any funding being provided. Should the conditions not be met and the funding not be provided, there are no alternatives for the Sports Park to be granted that $2M. Ms Lambert confirmed that she expected to sight all of the documents to meet the requirements on or by 30 September 2013 in order for the conditions of the funding to be met. |
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. Council Meeting Timetable for Remainder of 2013 and Proposed for 2014 2. Confirms the meeting schedule for October – December 2013 as attached. 3. Recommends the proposed 2014 meeting schedule as attached, to the incoming Council for consideration. HBRC Committee Structure for 2013-16 - Proposal to New Council 4. Recommends the retention of the current Committee Structure to the incoming Council for the 2013-16 triennium. Code of Conduct for Elected Representatives 5. Recommends the adoption of the current Code of Conduct by the incoming Council for the 2013-16 triennium. 6. Notes that the following reports were received at the Corporate and Strategic Committee meeting. 6.1 Action Items From Previous Corporate and Strategic Committee Meetings 6.2 Update on 159 Dalton Street 6.3 2012-13 Council Human Resources Report 6.4 Public Transport Update 6.5 Sports Park Hawke's Bay Hockey Turf Project Proposal. CARRIED |
Report and Recommendations from the Regional Planning Committee |
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Ms Lambert advised that this item had been discussed at the meeting despite there not being a quorum for the Committee to make a formal resolution. The importance of the Annual Report under consideration was particularly relevant to the settlement group representatives to enable them to the report back to their groups for hui and planning going forward. It was noted that there was significant disappointment expressed at the meeting at the low turnout, perceived to show a lack of commitment by members. The report being considered today had been ‘agreed’ by the RPC membership via email correspondence.
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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. Adopts the Regional Planning Committee 2012-13 Annual Report for publication and distribution. CARRIED |
Adoption of the Audited 2012-13 Annual Report |
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Mr Collings provided an overview of the amendments to the Draft report requested by the Auditors and reflected in the updated version being considered for adoption. |
That Council: 1. Adopts the 2012/13 Annual Report, under Section 98 of the Local Government Act 2002, and authorises the Chairman and Chief Executive to sign the Annual Report on behalf of Council. 2. Amends the Council's Policy Handbook Section 2.2.2 to reflect the above resolution. CARRIED |
Ratification of Outstanding Council and Committee Minutes |
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The Council reviewed each set of minutes in the order of the resolutions, confirming each as a correct and accurate record with amendments where necessary for accuracy. The meeting adjourned at 10.35 and reconvened at 10.50am |
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. Notwithstanding Clause 36.2 of Council’s Standing Orders, that the Minutes of the Committees listed below be received, reviewed, and then signed by the Chairman of each Committee as a true and correct record. 2.1 Tenders Committee Meeting held 12 December 2012. Wilson/Rose CARRIED
2.2 Regional Planning Committee Meeting held 7 August 2013, as amended. McGregor/Scott CARRIED 2.3 Environment and Services Committee meeting held 14 August 2013. Rose/Gilbertson For: McGregor, Scott, Gilbertson, Rose, Kirton, Wilson Against: Dick, Remmerswaal, Douglas CARRIED 2.4 Maori Committee Meeting held 27 August 2013, as amended. Gilbertson/Scott CARRIED 2.5 Regional Transport Committee Meeting held 30 August 2013. Remmerswaal/Dick CARRIED 2.6 Corporate and Strategic Committee Meeting held 4 September 2013, as amended. Gilbertson/Douglas CARRIED 2.7 Regional Planning Committee Meeting held 11 September 2013. Scott/McGregor CARRIED Councillor Douglas moved, seconded by Cr Kirton an additional resolution, being: 4 Council notes that, as per the conditions specified in (Corporate & Strategic Committee 4 September 2013 minutes) resolution 3, item 10 – those conditions are to be met by the construction start date of 1 October 2013 as advised by the Sports Park Trust. Douglas/Kirton CARRIED The additional resolution was CARRIED and so became part of the substantive motion. 3. Notwithstanding Clause 36.2 of Council’s Standing Orders, that the Minutes of the Committees listed below be received, reviewed and then signed by the Chairman of Council as a true and correct record when they are finalised. 3.1. HB CDEM Joint Committee Meeting held 23 September 2013 3.2. Regional Council Meeting held 25 September 2013. 4 Council notes that, as per the conditions specified in (Corporate & Strategic Committee 4 September 2013 minutes) resolution 3, item 10 – those conditions are to be met by the construction start date of 1 October 2013 as advised by the Sports Park Trust. CARRIED |
Significant Initiatives Update |
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In relation to the Biosecurity Amendment Act, it was queried when this legislation was expected to be in force. It is staff’s understanding that the new legislation relies on a set of regulations for its implementation. A discussion document is being prepared as the first stage of establishing those regulations and is planned to be released around April 2014, with the regulations finalised later that year. Mr Maxwell advised that staff are hopeful that the work on the Heretaunga Groundwater Modelling will be able to be compressed in terms of the proposed timeframes, with the Gantt chart showing what would be the worst case scenario. Ms Lambert advised that the Nature Central strategic alliance is not tasked with any work relating to the Ruataniwha Water Storage project, but is working on initiatives involving biodiversity, biosecurity and environmental education. In relation to the Tangoio Soil Conservation reserve, the agreement reached through the Maungaharuru-Tangitu treaty settlement includes a separate catchment fund being established for deposit of forestry harvesting proceeds. In relation to water metering, Mr Maxwell confirmed that the telemetry data is valuable to enable water users to use that data to work together to ration and roster water amongst themselves. It was noted that the RCEP is still waiting to be made operative, however no progress as it is still with the Minister of Conservation for his approval (as it has been for the past 8 months). |
1. That Council receives the ‘Significant Initiatives Update’ report. CARRIED |
Council's Water Management Framework Under Drought Conditions |
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Ms Lambert advised that this paper was prepared in order to clarify what processes are in place for water management for the purposes of irrigation, specifically relating to low flow limits and resource consent conditions as well as water allocation. The water challenge for the Region is that HB has plenty of water but: · Significant seasonal limits in some locations when the water is most needed and has highest value · Long term drying trend (climate change) · Very low river flows in typical summers · Poorer water quality in lowland areas · Traditional planning The Regional Resource Management Plan (RRMP) sets environmental bottom lines which have been reached through community engagement and public submission processes. These bottom lines are there to protect the values of the waterbodies for a ‘range’ of uses. Further developments nationally also impact on Council’s management frameworks and include the requirement for Council to implement the NPS 2011 by setting limits as well as Land and Water Forum collaborative processes. HBRC Land and Water Strategy prioritises tailored catchment responses. The collaborative processes such as (Greater Heretaunga/Ahuriri Catchment) TANK are time consuming but necessary to get to a community, collective approach to catchment management as opposed to individual. The collaborative process provides an ‘agreed’ hierarchy of the values associated with the catchment from which the environmental bottom lines are then developed. Approaches being considered for individual catchment management frameworks include: · Tukituki = storage · Heretaunga Plains = community water use efficiency, i.e. global consents · Ngaruroro = water use efficiency and possible storage · Wairoa = first in first serve + community water use efficiency Allocation is defined as a quantifiable amount, however science knowledge and changing values can cause an amount that was determined 15 years ago to change in line with those better, updated understandings, i.e. what was acceptable then may become over allocated once reassessed. Setting of minimum flow includes technical, scientific assessment of flow levels which provide an ecological bottom line. Ecological bottom line is then consulted on with the public (through stakeholder engagement as well as formal plan change or resource consent processes) to reach the broader environmental bottom line which may or may not be the same. As detailed in the paper, the 2012-13 summer drought was the second most significant climatic event since records began. In order to assist the growers through this event, Council staff: · Augmented the flow in the Raupare Stream by pumping water from a nearby bore to maintain flow – in staff view was successful essentially because of the way the irrigator group worked together to take advantage and resulted in only 1 ban day. · Transferred consents – moving water from takes not yet subject to flow cut offs to irrigators with consents that are subject to flow cut offs. · Allowed water to be transported from bores not subject to flow cut offs by tanker to other for use – which had negligible benefit but was offered up as an ‘emergency’ measure. · Advised that permitted activity water (of 5 L/s up to 20 m3/day) could be used (for plants) during low flow cut off periods · Optimised data via mobile was (and is) available to the growers so that they could better self manage the water that was available. Staff knew that the event was more significant than normal in November, and staff were already engaged with irrigator groups in relation to the Raupare. Council continued to respond to requests for help from irrigators as they arose. In the midst of the drought, Councillors were constantly kept up to date with the situation. The management of the water and getting solutions and options considered required those operational measures to be assessed and implemented by qualified science and regulation (policy and consents) staff. Viable solutions had to meet environmental requirements as well as being lawful. Consents have the effect of regulation, and are in effect law so Council cannot allow taking water below the minimum flow level. Allowing water takes below low flow limits would open Council to legal challenge and possible prosecution. Water shortage orders were considered by staff but not used as they could have had perverse outcomes and would result in restricting more takes rather than making more water available. Investigations into ways to avoid similar problems in future are focused on: looking for new water (deep wells that don’t affect surface water flows) with better understanding of the hydrogeology; further development of the coupled surface-groundwater model through a collaborative process involving those most affected; concurrent gauging to determine the effects of takes on the river flows; using the data from monitoring what happened to Raupare flows during augmentation; and running daily flow gauging in the rivers and streams to keep accurate, real-time data records. The Policy team has proposed an amended stream depletion policy through the HBRC submission to Plan Change 6. An independent expert has reviewed the amended policy as part of the evidence submitted for Change 6. This policy is now being reviewed by HortNZ and HBRC is working with HortNZ in relation to this review. It will be progressed through the Board of Inquiry process. In addition, in response to concerns raised, an
amendment has been recommended in evidence for
Change 6 which provides for
applications to be made to take water to prevent plant death or death of permanent
root stock when flows are below
minimum flow. It was noted that most of the consents in the region, subject to low flow limits, were under ban at some point during the drought however there were no requests for assistance from growers in other parts of the region.
The process HBRC goes through during low flow periods is: · River flow gaugings and rainfall stats are assessed, and if
showing that the river or stream is in · River flows and climate data continue to be assessed and when the decision is made to ban takes, irrigators (and other water users) are advised via text, email and/or fax, as well as advertisements in local newspapers. It was noted that in the 2012-13 drought, through dialogue with the irrigator community, it was agreed not to publicise the low flow warnings and bans through the media. In summing up, it was reaffirmed that the most important outcome of any water management framework is that the flow within the river is maintained for the life supporting capacity it provides. |
That Council: 1. Receives the “Council's Water Management Framework Under Drought Conditions” report 2.
Notes that, among other initiatives, staff are 2.1 supporting and resourcing the collaborative policy process for the Greater Heretaunga/Ahuriri Catchment area (TANK process) 2.2 pursuing exploration for sources of ‘new’ water that may be found at depth and be unconnected to surface waters 2.3 seeking collaboration with irrigators and stakeholders on the development of a coupled surface-groundwater model 2.4 reviewing the options for assessing stream depletion following the Tukituki Plan Change (6) Board of Inquiry process 2.5 undertaking a technical review of minimum flows and allocations for soft bottomed systems such as the Raupare Stream 2.6 reviewing tree and crop water demand with Crop and Food Research staff 2.7 working with the Twyford Irrigators Group (TIG) for addressing historical consent application errors (where irrigation consent applications sought incorrect amounts) 2.8
CARRIED |
The meeting adjourned at 1.15pm and reconvened at 1.50pm
Monthly HBRIC Ltd and RWSS Project Update |
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Mr Newman
advised that the HBRIC Ltd AGM held on 16 September was very successful,
before Mr Stephen Daysh
provided an update on the Board of Inquiry process underway, with HBRC (Plan
Change 6) and HBRIC Ltd (RWS resource consent
applications) having filed their expert evidence on 6 September,
with Mr Graeme Hansen
updated Councillors on the Design and Construction (D&C) procurement
process underway, with proposals having been Mr Duncan MacLeod summarised where farmer uptake is currently, with having 32.7 M m3 for water covering 10,366 ha committed to by signed Expressions of Interest for a range of land uses (Dairy 34%, Red Meat 5%, Dairy support 4%, Arable 21% and Mixed 36%). Mr Newman outlined the process of setting up the potential financing for the project. The process for it all to come together for final consideration by investors (including Council) is: · Design and construction price agreed by provisional investors as acceptable · Water price set once construction price confirmed and accepted by investors · Water supply agreements must reach threshold before project commences · February-April 2014 consent conditions will be confirmed or not · If consent conditions are achieved and water supply contracts are at or above threshold, investors will recommend to their shareholders/governors on proceeding or not · HBRC runs public consultation (independent advice) process · If shareholders/governors’ decisions are to proceed, then the project entity (Company) is legally formed and D&C contract is signed · And, finally, funds are drawn down from investors and the project commences. It was noted that all of the potential investors are in the process of carrying out due diligence which, in the end, will provide the basis for each of those investor’s decisions on whether or not to invest. Council will be asked, in November, to make a decision on what independent due diligence it requires to inform its decision; the same as other investors have done. Excluding some land acquisition, contributions to costs of the project consist of HBRIC Ltd 43%, Crown 37%, and Private 20% investment to date. In an effort to fill knowledge gaps to enable informed decisions to be made around irrigation, water use, farm conversions to different land uses and requirements, a number of case studies have been commissioned and carried out to assist farmers and growers. In relation to consent, those conditions will have to meet Plan Change 6 provisions which include nutrient levels and water quality as well as river flows and sufficient storage to provide flushing flows. The work to set nitrate levels was prepared by Chris Hickey and has been brought into the NZ and Australian guidelines to prevent toxicity levels being reached – specifically relating to NZ native species – particularly relevant in the Tukituki catchment and a very cautionary approach. Ms Lambert
advised that, over the course of the next few weeks, she will seek proposals
for providing the Council with the independent advice to inform their
decision. It was queried what information and opportunities DoC staff had been provided and engaged with through the process to date. Mr Daysh provided his perspective as having been engaged throughout the entire process – all technical reports were provided to the stakeholder group, which included DoC representation. DoC is a major stakeholder given their land holdings and has been involved in several site visits and discussions of the issues with HBRC staff, NIWA and Cawthron technical and scientific experts. Mr Mohi advised that Tamatea Taiwhenua are working with DoC as well. It was
suggested that if there are concerns relating to nutrient (specifically
nitrate) limit setting that these would properly be the subject of submissions
to Mr Daysh provided a brief summary of the work done looking at similarities and differences between the Opua and Ruataniwha schemes. It was noted that originally, in the pre-feasibility stage, small and medium scale on-farm storage options were examined including price impacts associated with size. There were initially 14 potential sites investigated, then narrowed to six with the geotechnical investigations then precluding all but the 1 final site currently proposed. Under the RMA all practicable alternatives must be examined and assessed, and included in the Assessment of Environmental Effects as part of the resource consent application. |
1. That Council receives the “Monthly HBRIC Ltd and RWSS Project Update” report. CARRIED |
HB LASS Ltd - Progress Report |
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Ms Lambert briefly provided an outline of the information covered in the paper in terms of investigations carried out, underway or being considered. |
1. That Council receives the “HB LASS Ltd – Progress Report”. CARRIED |
Chairman's Monthly Report |
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Cr Wilson provided additional detail of meeting discussions as queried. |
That the Chairman’s monthly report for September 2013 be received. CARRIED |
General Business |
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HBRC Chief Executive Performance Review |
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That Council excludes the public from this section of the meeting, being Agenda Item 19 HBRC Chief Executive Performance Review 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:
CARRIED |
The meeting went into public excluded session at 3.45pm and out of public excluded session at 3.55pm
Closure:
There being no further business the Chairman declared the meeting closed at 3.55pm on Wednesday, 25 September 2013.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................