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Resolutions
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.
Infrastructure
Asset Insurance
2. Adopts the HBRC Disaster Damage Risk Management Policy,
included following recommendation 11.
Coastal
Strategy
3. Agrees
to work with in collaboration with Napier City Council, Hastings District
Council and Treaty of Waitangi settlement groups with mana whenua mandate
over the portion of coast being considered, on the development of a strategy
for the management of the coast between Clifton and Tangoio.
4. Agrees that the project will be governed by a Coastal Strategy
Development Joint Committee made up of 2 elected members from each of
Napier City, Hastings District and Hawke’s Bay Regional Councils and up
to three Iwi representatives.
5. Agrees to continue discussions with He Toa Takitini, Mana Ahuriri
Inc, and Maungaharuru Tangitū Trust, seeking their agreement to
participate in the Strategy development process and nominate one
representative from each organisation to sit on the Coastal Strategy
Development Joint Committee to oversee the project
6. Agrees that the Coastal Strategy Development Joint Committee
will be delegated the authority to determine its terms of Reference, the
Terms of Reference for a Technical Advisory Group, and the scope and timeline
for the project, taking into account the size of the project and the resource
available to it.
7. Notes that resourcing requirements for HBRC’s involvement in
the development of the Strategy will be included in the draft LTP 2015-25.
8. Appoints Councillor Beaven and Councillor Scott as the HBRC
representatives on the Joint Committee.
Regional Pest
Plan review
9. Establishes a working group of 3-5 councillors to assist staff in:
9.1 Establishing a timeline and scope for reviewing the Regional Pest
Management plans, and
9.2 Completing the review process.
10. Appoints the following Councillors to the Regional Pest Plan
Review working group:
10.2 Councillor
Christine Scott
10.3 Councillor
Rex Graham
10.4 Councillor
Dave Pipe
10.5 Councillor
Fenton Wilson
10.6 Councillor
Rick Barker.
11. Notes
that the following reports were received at the Environment and Services
Committee meeting on Wednesday 9 April:
11.1 Follow-ups
from previous Environment and Services Committee meetings
11.2 Nimmo-Bell
Alternative Investments Report
11.3 Karamu
Characterisation Report
11.4 National
Horticultural Field Days
11.5 QEII
National Trust Presentation
11.6 Statutory
Advocacy.
Graham/Beaven
CARRIED
HBRC
Disaster Damage Risk Management Policy
1. Background
This
policy supersedes HBRC’s Disaster Damage Risk Management Policy adopted
by Council in 2007, and subsequent decisions regarding this issue.
This
review (March 2014) has confirmed that HBRC continues to face considerable
ongoing financial risk from a natural disaster event.
This
policy deals specifically with disaster damage risks to HBRC owned or
administered infrastructure assets, and the requirement for HBRC to respond
to an event that causes major disruption to the community.
In
addition to its role as the manager of flood control and drainage schemes
throughout the region, HBRC will play a significant role in any response as a
result of its civil defence responsibilities including resourcing to the
civil defence emergency coordination centre, and the provision of
reconnaissance and hazard information to input to the response planning and
decision making. There may also be a significant cost in securing information
and data arising from the event, especially a flood event. Significant flood
events provide a valuable source of data to enable verification of models and
assumptions made as part of HBRC staff flood hazard assessment and flood
control and drainage activities.
HBRC
may qualify for Central Government assistance for the reinstatement of HBRC
infrastructure assets in the event of a disaster however such assistance is
more likely to be forthcoming following a significant disaster affecting the
Heretaunga Plains. Central government assistance is less likely to be
available for a disaster event impacting a small portion of the region.
While
HBRC should meet the expectations of central government by implementing this
policy, HBRC acknowledge that central government and LAPP funding may not be
available to cover the costs of every disaster. This policy also makes some
provision to cover that risk.
2. Financial Risk Management Initiatives
HBRC
will mitigate its financial risk associated with a disaster event. The
following will make up HBRC risk mitigation approach.
2.1 Disaster
damage to Council-owned fixed assets
· Insurance
policies will be held with appropriate indemnity or replacement value cover;
and
· Assets
will continue to be effectively maintained.
2.2 Disaster damage leading to Third Party liability
· The employment of
suitably qualified and experienced staff and robust decision making
processes.
· Appropriate and relevant
HBRC policy and sound technical practices for maintaining HBRC assets thereby
minimising any exposure through negligence.
· An insurance policy will
be held to cover this risk.
2.3 Disaster
impact on Council’s Business Continuance Capability
· A Business Continuance Plan will be maintained and regularly
updated which contains specific actions and ongoing requirements to help
check systems to enable HBRC to continue to operate after a disaster.
2.4 Sound
maintenance of infrastructure assets
· Infrastructure
assets will be maintained in accordance with asset management plans.
This will include an annual programme of maintenance and a regular assessment
of asset condition.
· Where
feasible and economic this may include improvements to increase asset
resilience to damage from a natural disaster.
2.5 Use
of surplus operating funds and reprioritisation of maintenance and capital
works
· Following
any disaster event the first call to fund the reinstatement costs of
infrastructure assets will be any surplus operating funds held by the Scheme
under which the assets are administered.
· The
second call will be through the reprioritisation of the maintenance or
capital expenditure programme for that Scheme.
· Scheme
depreciation reserves will only be utilised where a depreciable asset
requires replacement, in which case the difference between the depreciated
value of that asset and its replacement cost can be sourced from the relevant
depreciation reserve. Note that if the new asset results in an increase
in the level of service provided by the Scheme, the difference between the
cost of the new asset and the replacement cost of the current asset will be a
cost on the Scheme.
· Only
after these options have been fully assessed and funding from these sources
committed, will Council agreement to funds from other financial reserves
being drawn on be sought.
2.6 HBRC
held financial reserves
· Financial
reserves will be held to mitigate HBRC’s
financial exposure to natural hazards. The following reserves will be
held by HBRC
o The Wairoa
District Flood Reserve
o The small schemes
disaster reserve
o The Heretaunga
Plains Schemes disaster reserve
o The Regional
Disaster Reserve
2.7 Membership
of LAPP
· HBRC
will maintain its membership of the Local Authority Protection Programme
(LAPP) and meet the requirements of LAPP.
2.8 Maintain
proper planning for risk management
· In
order to comply with the criteria set out in the National Civil Defence
Emergency Management Plan, HBRC will maintain proper planning for risk
management. Implementation of this policy will demonstrate this.
3. Criteria for Contributions and Withdrawals From Reserves
Criteria for
contributions and withdrawals from these reserves are:
3.1 The
Wairoa Flood Reserve
The reserve will be
managed such that the capital purchasing power of the reserve sum, less any
capital authorised to be withdrawn from the reserve by HBRC, shall be
maintained by increasing the reserve each year by 2.5% from interest earned
by the reserve.
The balance of
interest earned by the reserve shall be used to subsidise work undertaken
through the Wairoa Rivers and Streams Scheme to manage and reduce flood risk
to public and/or community infrastructure within the Wairoa District.
Council may
authorise capital sums to be drawn from the reserve to undertake specific
major flood mitigation or erosion protection projects within the Wairoa
District or for flood recovery works in the same area.
3.2 The
Small Schemes Disaster Reserve
The small schemes
disaster reserve shall provide for the following flood control and drainage
schemes:
· Upper
Tukituki Flood control scheme
· Upper
Makara flood control scheme
· Paeroa
Scheme
· Porangahau
flood control Scheme
· Poukawa
Drainage Scheme
· Ohuia
– Whakaki Drainage Scheme
· Esk
River flood control Scheme
· Whirinaki
Flood Control Scheme
· Maraetotara
River Control Scheme
· Kopuawhara
Flood Scheme
· Te
Ngarue River Control Scheme
· Opoho
Scheme
· Kairakau
Community Scheme
The following assets
within the Wairoa Rivers and Streams Scheme:
o Tawhara Flood
detention dam and outlet channel
o Tuhara Drain
o Nuhaka Railway
Drain
The reserve shall be
made up of all of the current Scheme disaster reserves held by each of the
above Schemes. As at 30 June 2013 the combined balance was $680,768.
Each Scheme will
contribute annually to the reserve in proportion to the value of Scheme
assets, the vulnerability of the scheme assets (vulnerability factor) and the
vulnerability of the Scheme (scheme factor). Annual contributions will be
calculated as follows.
(Value of asset class) x (vulnerability factor) x (scheme
factor)/1000
All Schemes with no
assets, e.g. Te Ngarue and Porangahau shall contribute a fixed amount of $20
per km, x a scheme vulnerability factor, of river channel under the Scheme.
Annual contributions
shall be made to the reserve as set out in Table 6 each year that the reserve
balance is below the LAPP excess (i.e. currently $1,259,000). Interest
earned by the reserve shall be credited to the reserve. Annual contributions
may increase each year in accordance with inflation.
When the reserve
balance is above the LAPP excess the Group Manager Asset Management and Group
Manager Corporate Services may agree to a discount on the annual contribution
from each scheme. No annual contributions from schemes will be made if the
reserve balance is in excess of 2 times the LAPP excess. If the reserve is
over 2.5 times the LAPP excess the Group Managers may agree to return money
from reserve income to the Schemes.
At Council
discretion individual schemes will be eligible to draw up to 100 times their
annual contribution from the reserve, provided the reserve holds adequate
funds.
The following costs
may be eligible for payment from this Reserve.
· The cost
of reinstatement of assets identified on the LAPP asset schedule, or their
replacement with alternative assets that will reinstate a similar level of
service provided by the original assets, less any provision held within the
Scheme depreciation fund for reinstatement of that asset, up to a maximum of
the LAPP excess or central government threshold, whichever is the greater.
· The
cost of repair works within a scheme area (excluding district wide
schemes). Eligible repair works may include channel works which improve
flood flow capacity, bank protection works where this work will assist in
protecting a residential dwelling (however this could be subject to a
contribution from the building’s owner to recognise any private good,
and may be subject to the owner providing details of other insurance claims
made or received), or any other works subject to Council approval. The Reserve
will not be used for the purchase of land. Where land upon which an asset has
been sited is lost, the asset should be relocated.
3.3 The
Heretaunga Plains Scheme Disaster Reserve
The Heretaunga
Plains Schemes disaster reserve shall provide for the following flood control
and drainage schemes.
· The
Heretaunga Plains Scheme – Rivers
· Napier
Meeanee Drainage area
· Brookfields
Awatoto Drainage area
· Pakowhai
Drainage area
· Muddy
Creek Drainage area
· Haumoana
Drainage area
· Karamu
and Tributaries Drainage area
· Raupare
Twyford drainage area
· Tutaekuri-Waimate
Drainage area
· Puninga
Drainage area
The reserve shall be
made up of all of the current Scheme disaster reserves held by each of the
above Schemes. As at 30 June 2013 the combined balance was $1,799,022.
Each Scheme will
contribute annually to the reserve in proportion to the value of Scheme
assets, the vulnerability of the scheme assets (vulnerability factor) and the
vulnerability of the Scheme (scheme factor). Annual contributions will be
calculated as follows:
Value of asset class x vulnerability factor x scheme factor/1000.
Annual contributions
shall be made to the reserve as set out in Table 7 at any time that the
reserve balance is below the LAPP excess. (i.e. currently $1,259,000).
Annual contributions may increase each year in accordance with inflation.
When the reserve
balance is above the LAPP excess the Group Manager Asset Management and Group
Manager Corporate Services may agree to a lesser amount being contributed
from each scheme or a contribution from this reserve being made to the
regional disaster reserve. No Scheme contributions will be made if the
reserve balance is in excess of 1.5 times the LAPP excess. If the
reserve is over 2.0 times the LAPP excess the Group Managers may agree to
return money from the reserve income to the Schemes.
At Council
discretion individual schemes will be eligible to draw from the reserve up to
100 times their annual contribution from the reserve, provided the reserve
holds adequate funds.
Withdrawal from the
reserve will only be considered after consideration of deferment of routine
annual maintenance and programmed capital works. Any payments from the
reserve shall be at the discretion of Council.
The following costs
may be eligible for payment from this Reserve.
· The cost of reinstatement of assets identified on the LAPP asset
schedule, or their replacement with alternative assets that will reinstate a
similar level of service provided by the original assets, less any provision
held within the Scheme depreciation fund for reinstatement of that asset, up
to a maximum of the LAPP excess or central government threshold, whichever is
the greater.
· The cost of repair works within a scheme area. Eligible repair
works may include channel works which improve flood flow capacity and bank
protection works, however where this work will assist in protecting a
residential or commercial building this may be subject to the owner providing
details of other insurance claims made or received and agreeing to an appropriate
contribution, or any other works subject to Council approval.
3.4 The
Regional Disaster Reserve
This reserve is to
be managed such that the value of its investments (including any cash)
remains within the range of $2.75m - $3.75m and that its investments exceed
$3.75m in value and some investments may be sold and the proceeds credited to
Council’s general funding operating account.
A return of 2.5% on
average balance held by the reserve during the year will accrue as an
increase in the value of the reserve, when the Reserve has a value in excess
of $3M. The earnings in excess of the 2.5% per annum will be credited
to Council’s general funding operating account.
The regional
disaster reserve may, at Council discretion, provide for the following.
a. The
cost of responding to and managing an event. This could include:
· Unbudgeted staff time
· Plant and equipment hire including helicopters
· Employment of unbudgeted external resource to support staff in the
response.
b. The cost of reinstatement of any uninsured assets. This includes
recreational assets that are not part of a flood protection and drainage
Scheme, i.e. pathways and associated assets that are not constructed on a
stopbank, and assets within open space areas.
c. Any difference between the deductable (excess) on any insurance or
LAPP policy and the threshold for eligibility for central government
assistance, which is unable to be funded through Scheme disaster Reserve or
other funds.
d. Any unfunded reinstatement costs above the excess of any insurance
policy and the threshold for eligibility for central government assistance
because central government determines that HBRC is not eligible for central
government assistance because the disaster does not trigger the criteria set
out in the Guide to the National Civil Defence Plan, and/or LAPP is unable to
provide cover for whatever reason.
e. The possibility of the cost of reinstating the level of service
provided by the assets costs considerably more than
their estimated replacement or optimised replacement value, and central
government and/or HBRC’s insurers refuse to cover a portion of that cost.
f. The cost of any works that are considered betterment but are
necessary to reinstate community protection, or because the community demands
a higher level of protection.
g. Liability as a member of LAPP in the event that the LAPP fund is
exhausted.
4. Criteria for the Build Up, Use and Maintenance of Disaster Damage
Insurance Excess Reserves
· Reserves
will always be a funding call of last resort e.g. if priorities can be
re-established to cover the expenditure, or if unbudgeted income is received
these sources of funds will be used.
· All
efforts will be made to maximise any disaster recovery contributions from
Central Government or any other sources.
5. Provision to Meet Disaster Damage Insurance Excesses and
Commitments
5.1 Regional
Disaster Reserve
The required reserve
will be managed in accordance with HBRC’s investment policies.
5.2 Flood
and Drainage Schemes
The
Group Manager, Asset Management and Group Manager Corporate Services have
delegated authority to manage the Small Scheme disaster reserve and the
Heretaunga Plains Scheme Disaster reserve in accordance with HBRC’s
investment policy.
6. Frequency of Disaster Damage Risk Management Reviews
Reviews
will be carried out at least once every six years.
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