Agenda of Regional Council Meeting

	Agenda Item	Action	Responsible	Due Date	Status Comment
1	Code of Conduct Complaint Response Process	Update Code of Conduct as adopted	L Hooper	Immed	Updated and published on HBRC website

Follow-ups from Previous Regional Council Meetings

Attachment 1

LGOIMA Requests Received between 25 July and 19 August 2014

Request

Status

Date

Received

Response

Due

Requested By

Request Summary

Active

15/08/2014

12/09/2014

Neil Smith

Re: Iain Maxwell’s requests for information from Submitters and to Submitters:
1. All requests for information from submitters to the HBRC in relation to the Board of Inquiry into the RWSS in relation to surface water quality data, and about the Tukituki River Instream Model.
2. All requests Iain Maxwell has made to external submitters for information about their modelling and evidence.

Active

15/08/2014

12/09/2014

Rodney Mills

Completed

15/08/2014

12/09/2014

Simon Hendery - HBT

Copy of Abatement Notice: AN1314.084 Te Mata Mushrooms

Active

15/08/2014

12/09/2014

Graham Sanders

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Who was the contracted builder?
Did they have insurance and warranties about their work?
Was this scrutinised before the work was undertaken and if so was it ‘in house’ or was a professional firm engaged for the work and what was the result of this scrutiny?
When was the building formally handed over to HBRC as completed and fit for use and puirpose?
When were the leaks and faults in the construction first identified?
When were the faults and defects first advised to the construction firm? What was their response?
What was the expiry date for the warranty and or guarantee on the construction companies work?
Did HBRC activate or take steps to pursue coverage and coverage for the cost of remedying the faults and defects in its building on Dalton Street before the expiry of the warranties and or guarantees?
If the time for initiating the warranty and guarantee had expired, what are the relevant dates?
What is the expected cost of remedying the defects in the construction of the Dalton Street property?
Who is currently paying for the costs of remedying the property?
What advice has been provided to ratepayers about the cost of this work and the effect it has on the HBRC’s balance sheet?
Are other parties being sued for damages associated with remediation work on the Dalton Street property and if so who?
When is there likely to be a conclusion to these legal actions?
Should the legal action for compensation for the remedial work on the Dalton Street property fail, who will bear the cost of this?
Which individual in the HBRC is responsible for the management and oversight of the build of the new premises on Dalton Street, was it the Chief Executive or another delegated person, if so who?
Who was responsible within the HBRC for managing and oversight to ensure that the construction company had completed a weather tight fit for purpose building?
Who was responsible with HBRC for ensuring that should there be defects in the construction of the new building on Dalton Street that the construction company was held to account in remedying the faults and or that the remedial work was undertaken by enforcing the warranty and or guarantee for the work?
What reports have been provided to Councillors on this matter, please provide electronic copies of all such reports?
What verbal reports have been provided to Councillors, provide dates and times of these reports with a clear useful and unambiguous summary of these verbal reports

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

13/08/2014

11/09/2014

Theus Goodwin

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Completed

14/08/2014

14/09/2014

Chris Perley

HB soil quality reports

Completed

12/08/2014

9/09/2014

Wairoa Star

details of the Hawkes Bay Regional Council chief executive's current salary rate

Active

8/08/2014

8/09/2014

Babs Lake, Political and Media Advisor, Green Party

SIC (Sanitary Inspection Category) the Microbial Assessment Category (MAC) and the Suitability for Recreation Grade (SFRG) for:
Clive River at Boat Ramp
Esk River
Ngaruroro River
Porangahau Estuary
Puhokio Stream
Tukituki River at Black Bridge
Tukituki River at Waipukurau
Tukituki River at Walker Rd
Tutaekuri River at Pakowhai
Waipuka Stream at Ocean Beach
Wairoa River

Completed

11/08/2014

13/08/2014

Felicity Rashbrooke - Research Librarian (Economics, Society & Infrastructure) Parliamentary Library

The number of infringement notices, abatement notices, or prosecutions regarding non-compliance with livestock access to waterways.

Active	15/08/2014	12/09/2014	Graham Sanders	Info re litigation - leaks and lack of weather tightness of Dalton Street building
Active	15/08/2014	12/09/2014	Neil Smith	Re: Iain Maxwell’s requests for information from Submitters and to Submitters: 1. All requests for information from submitters to the HBRC in relation to the Board of Inquiry into the RWSS in relation to surface water quality data, and about the Tukituki River Instream Model. 2. All requests Iain Maxwell has made to external submitters for information about their modelling and evidence.
Active	15/08/2014	12/09/2014	Rodney Mills	Re: Iain Maxwell’s requests for information from Submitters and to Submitters: 1. All requests for information from submitters to the HBRC in relation to the Board of Inquiry into the RWSS in relation to surface water quality data, and about the Tukituki River Instream Model. 2. All requests Iain Maxwell has made to external submitters for information about their modelling and evidence.
Completed	15/08/2014	12/09/2014	Simon Hendery - HBT	Copy of Abatement Notice: AN1314.084 Te Mata Mushrooms
Active	13/08/2014	11/09/2014	Theus Goodwin	Info re litigation - leaks and lack of weather tightness of Dalton Street building
Completed	14/08/2014	14/09/2014	Chris Perley	HB soil quality reports
Completed	12/08/2014	9/09/2014	Wairoa Star	details of the Hawkes Bay Regional Council chief executive's current salary rate
Active	8/08/2014	8/09/2014	Babs Lake, Political and Media Advisor, Green Party	SIC (Sanitary Inspection Category) the Microbial Assessment Category (MAC) and the Suitability for Recreation Grade (SFRG) for: Clive River at Boat Ramp Esk River Ngaruroro River Porangahau Estuary Puhokio Stream Tukituki River at Black Bridge Tukituki River at Waipukurau Tukituki River at Walker Rd Tutaekuri River at Pakowhai Waipuka Stream at Ocean Beach Wairoa River
Completed	11/08/2014	13/08/2014	Felicity Rashbrooke - Research Librarian (Economics, Society & Infrastructure) Parliamentary Library	The number of infringement notices, abatement notices, or prosecutions regarding non-compliance with livestock access to waterways.

Active

8/08/2014

5/09/2014

Tim Brennan

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Bruce Ladbrook

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Tony Vercoe

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Glenn Rust

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Val Genet

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Rupert Applin

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Bryan Wilson

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Wayne Hulls

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Michael Cornell

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Kevin Blackford

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Martin Jakicevich

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Active

8/08/2014

5/09/2014

Megan Darrow

Re: Weather Tight Building

The HBRC is currently in litigation about the leaks and lack of weather tightness of its head office in Dalton Street, Napier, please provide the following information:

Please provide an acknowledgement of receipt of this LGOIMA request and provide a date when the information will be made available.

Please also provide the answers in an electronic format by return email.

Completed

29/07/2014

25/08/2014

Marty Sharp - Dom Post

Enforcement action against TAs

Completed

25/07/2014

22/08/2014

Ian McIntosh

1. How many times in the last two years has the E.coli count in the Tukituki river exceeded 560 cfu/100mL?
2. Was the District Health Board Public Health Dept notified on each occasion?
3. Were warning signs erected on each occasion to warn the public of the dangers of swimming in the river?

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 August 2014

SUBJECT: Financial Report for 12 Months Ended 30 June 2014
including Draft Annual Report 2013-14 Adoption for Audit

Reason for Report

1. The purpose of this paper is to provide explanations covering variances both from the re-forecast budgets and from Annual Plan budgets for year ended 30 June 2014. Further, to provide the draft Annual Report to allow Council to adopt it for forwarding to the Audit Office to form the basis of their audit.

Comment

2. The financial information provided in Attachment 1 is not part of the formal Annual Report publication and is provided to Councillors to clarify variances, actual (from reforecast and Annual Plan) to budgets. The Draft Annual Report is provided as attachment 2, which has only been distributed to Councillors and is available to members of the public on request and on Council’s website as part of this Agenda.

Council Financial Overview (Attachment 1)

3. The financial overview for the year ended 30 June 2014 is set out in a similar format as Council receives during the year. The emphasis in this report is to provide explanations for variances (actual compared to reforecast) as:

3.1. Operating Account and Scheme Reserves

3.2. Balance Sheet

3.3. Cashflow Statement

3.4. Capital Activity Summary.

Draft Annual Report Document (Attachment 2)

4. The Chairman and Chief Executive Commentary provides the introduction to the performance overview, and provides the issues raised in the “Right Debate” section of the Long Term Plan and how these have been achieved during the 2013-14 year.

5. The Financial Reporting Benchmarks disclose Council’s financial performance in relation to various benchmarks to enable the assessment of whether Council is prudently managing its revenues, expenses, assets, liabilities, and general and financial dealings. The Local Government (Financial Reporting and Prudence) Regulations 2014 set out the requirements and format of reporting against these benchmarks.

6. The Service Performance – Groups of Activity section of the report covers the extent to which Council has been able to deliver on the levels of service provision and performance targets as set out in the Annual Plan for 2013-14 under each group of activity. Financial variances (Actual to Annual Plan) are included for variances $50,000 and above.

7. The Management Statements section covers Maori Contributions to Council decision making processes, Council Controlled Organisations, implementation of national policy statements and environmental standards and financial reporting benchmarks.

8. The Financial Statements section reports Council’s financial results, including the cash flow statement and notes to the accounts.

Audit

9. The Draft Annual Report appended as Attachment 2 to this paper will, on confirmation by Council at this meeting, be forwarded to Audit for the audit process to be finalised.

10. The final audited Annual Report will be tabled for adoption at Council’s September meeting.

Regional Disaster Damage Reserve

11. At this time of year Council needs to consider whether to tag operating cash balances to fund a shortfall, if any, in investments for Disaster Damage Reserve. Council resolved during March 2014 that this reserve should maintain a balance of funds of between $2.75 M and $3.75 M. This level reflects Council’s decision to continue as a member of the Local Authority Protection Programme (LAPP), which provides a 40% cover for damage to insured infrastructure assets, the remaining 60% is covered by Central Government.

12. The Regional Disaster Damage Reserve has been set up to provide funding for the following:

12.1. Cost of responding to and managing an event.

12.2. Cost of reinstatement of any uninsured assets (eg, pathways on top of stopbanks).

12.3. Any difference between the deductible (excess on the LAPP policy) and the threshold for eligibility for central government assistance.

12.4. The possibility of the cost of reinstating the level of service provided by the asset being considerably more than the optimised replacement value.

13. The market value of investments held in the Regional Disaster Damage Reserve is $3.009M at 30 June 2014. At that date the fund is therefore within the reserve limits set by Council and therefore it is proposed that no action should be taken to tag any cash operating balances to increase the value of this fund.

14. During 2013-14 Council utilised $757,000 from the Regional Disaster Reserve fund as a contribution towards the rebuilding of the Makara dam.

Revaluation of Council’s Assets

15. The following Council asset groups are subject to revaluation and have been incorporated where available in the draft Annual Report figures presented to this meeting. These asset groups are:

15.1. Infrastructure Assets: These assets were last revalued as at 30 June 2011; Council's current policy is to revalue these assets every three years, therefore the next revaluation is due on 30 June 2014. This work is still being progressed but will be available for the auditors during September 2014.

15.2. Hydrological Assets: These assets are revalued every three years and the next revaluation is due on 30 June 2016.

15.3. Operational Assets: Include land, buildings, plant and equipment, have been revalued at 30 June 2013. Council’s current policy is to revalue land and buildings to fair value every three years for Annual Report purposes, therefore the next revaluation is due on 20 June 2016.

15.4. Council’s administration building and land in Dalton Street, which represents the major asset held within operational assets, is shown in Council’s balance sheet at a book value of $7.6 million. Council’s valuers were asked to provide a fair value for financial reporting purposes to validate this book value. The fair value advised by Council’s valuers is $7.8 million.

15.5. Investment Properties – Leasehold Land: The main investment properties held by Council are the leasehold land in Napier and Wellington. The table below sets out the percentage changes in lessor's interest for both Napier and Wellington leasehold property.

	Napier Leasehold		Wellington Leasehold
	No. of Lessees	$	No. of Lessees	$
Valuation (Lessor's Interest) 30 June 2013	640	48.0m	12	11.4m
Valuation (Lessor's Interest) 30 June 2014	595	45.5m	12	11.9m
Number of lessees freeholding ¹	45	4.0m	-	-
Increase in valuation over the 12 months to 30 June 2014 adjusted for sales	-	+1.5m (3%)	-	+0.5m (4%)
Comparative for year ended 30 June 2013	-	+4.2m (10%)	-	+0.3m (3%)

¹ The number of leasehold properties owned by Council fell from 434 (30 June 2013) to 397 (30 June 2014), a decrease of 37 properties.

15.6. Napier leasehold property has shown an increase in valuation over the 12 months to 30 June 2014, this increase is $1.5m or (3%). The main reason for these continuing increases is the strengthening of land values now that the discounts provided by Council up to the year ending 30 June 2012 no longer have a depressing effect on land valuations.

15.7. Port of Napier Ltd Shareholding: Council’s shareholding of 100% in the Port of Napier Ltd is revalued every three years. The revaluation on 31 March 2012 states that Council’s investment in the Port of Napier Limited is $177.4m. This shareholding now 100% held by Hawke’s Bay Regional Investment Company Limited (HBRIC Ltd).

15.8. It is Council’s policy to revalue the shareholding in Napier Port every three years, the next revaluation is due on 31 March 2015.

General Funded Operating End of Year Position

16. Council's General Funded Operating result, subject to final audit processes, for the year ended 30 June 2014 is shown in Attachment 1 as a deficit of $597,600. When this is compared to the forecast end of year deficit of $501,000, the result is an unfavourable variance from forecast of $96,000.

17. The reasons for this unfavourable variance is set out in Attachment 1 to this paper.

18. The final impact of Council's unfavourable year end position on cash operating balances still needs to be finalised as part of the Annual Report preparation. However, it is estimated that the forecast cash operating balance will be approximately $3.9m at the end of 2013/14 and reduce to $3.6m at the end of 2014/15. Council’s policy is to ensure that cash operating balances are maintained at a level of between $3m and $4m in order to fund normal Council operations - this level minimising the need for bank overdrafts.

19. It should be noted that the operating statement set out in Attachment 2 and included as part of the formal Annual Report to proceed to Audit, shows an operating result that differs from the general funded operating end of year position as presented to Council in Attachment 1. There are a number of reasons for this difference, the major reasons being the losses/gains in fair value of Council’s Wellington and Napier leasehold properties, forestry assets and also the targeted rates which have been set to fund the capital purposes of Council, being shown in the income statement in the Annual Report but do not affect the end of year position from a general funded operating perspective.

Operations Group Profit on External Work

20. The Operations Group carries out work for Council’s flood and drainage schemes and for external parties. A profit is earned on the work for external parties and Council resolves to what extent this profit is held within Council for funding of groups of activities and also to what extent the Operations Group is able to retain a portion of the profit for any extraordinary items that are required to be funded to ensure the integrity of the Group’s activities going forward.

21. Profit on external work for 2013-14 is $161,000 (as against a budget of $101,000). When compared to the profit achieved for 2012/13 of $130,000, this is a very pleasing result.

22. This paper proposes that the Operations Group retains $50,000 of this profit and that the remaining $111,000 be transferred to Council’s operating cash balances. The retention of $50,000 is required by the Operations Group to provide funding for the following essential expenditure items/maintenance works at the Operations Group:

22.1. Costs associated with the refurbishment of its Guppy Road offices, e.g. labour cost to move out of the office into temporary accommodation, a full sort out of the office and everything in it, items stored removal of rubbish and document shredding etc.

22.2. Moving back into the new offices and setting up, some new furniture will be required for the meeting room. Photo’s to decorate the building etc

22.3. The external cladding is not part of the build, it is however to be repaired where required, a price has been requested to reclad, offset by the savings of not having to repair. If the price is acceptable (under 10k) a reclad could happen.

22.4. Storage bins in the yard for stocks of peametal, crushed metal, graded stones, builders mix. This is required as Holcim no longer load trailers or any vehicle under 3.5 ton from their quarry, so stock is required in our yard so trailer loads can go to site as and when required for repair work etc.

22.5. General plant - mayor plant breakdown that may occur and is not scheduled maintenance. Volvo excavator R & M has crept up, it is due for replacement next year would have liked to have replaced this year but at $300k to replace it was not possible.

Decision Making Process

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

23.1. Section 97 covering significant changes in the intended level of service provision for a group of activity do not apply.

23.2. Section 83 which sets out the procedures to be followed where a special consultative procedure is to be used or adopted does not apply.

23.3. The decision does not fall within the definition of Council's policy on significance.

23.4. No options are available to Council for this item. The Annual Report is required under Section 98 of the Local Government Act 2002.

23.5. This report, when adopted, is available for any person requiring a copy of this report.

23.6. Section 80 of the Act covers decisions that are inconsistent with existing policy or plan and does not apply.

23.7. Council can exercise its discretion under Section 79 (1)(a) 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, and also Council's understanding of the issues that persons likely to be affected by or have an interest in the decisions to be made.

Recommendations

That Council:

1. Confirms the decisions to be made are not significant under the criteria contained in Council’s adopted "policy on significance"; and Council can exercise its discretion under Section 79(1)(a) of the Local Government Act 2002 and make decisions on those issues 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 Draft Annual Report for the period 1 July 2013 to 30 June 2014, subject to any adjustments required by Council, for the purposes of audit, with a view to Council adopting the final report at its meeting on 24 September 2014.

3. Resolves that $161,000 profit on external work undertaken by Council's Operations Group during the year ended 30 June 2014 be used by retaining $50,000 for the Operations Group working capital to fund extraordinary expenditures and maintenance, with the remaining $111,000 transferred to Council’s cash operating balances available to fund general funded operating expenditure.

Manton Collings

Corporate Accountant

Paul Drury

Group Manager Corporate Services

Liz Lambert

Chief Executive

Attachment/s

1	Attachment 1 Financial Report for 12 Months Ended 30 June 2014		Under Separate Cover
2	Draft 2013-14 Annual Report for Audit		Under Separate Cover for Councillors only

Funding Impact Statement for Setting 2014-15 Rates

Attachment 1

Details of Rates Calculated within each District and City General and Uniform Annual General Rates
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 value per property	2013-14 Rate

General Rate
	Napier City	Land Value		0.00825	$368,659	$8.25	$318,424
	Hastings District	Land Value		0.00839	$638,648	$8.39	$546,530
	Wairoa District	Land Value		0.00848	$84,173	$8.48	$75,904
	Central H B District	Land Value		0.00877	$203,153	$8.77	$176,847
	Taupo District	Land Value		0.00978	$5,788	$9.78	$4,976
	Rangitikei District	Land Value		0.01682	$2,823	$16.82	$2,681
	Estimate of Projected Valuation			0.00838	$1,303,244		$1,125,362

Uniform Annual General Rate
	Napier City	Fixed Amount	26,370	28.41	$749,159	28.41	$669,659
	Hastings District	Fixed Amount	31,116	28.41	$884,005	28.41	$783,457
	Wairoa District	Fixed Amount	5,182	28.41	$147,220	28.41	$136,894
	Central H B District	Fixed Amount	6,352	28.41	$180,460	28.41	$157,735
	Taupo District	Fixed Amount	18	28.41	$511	28.41	$613
	Rangitikei District	Fixed Amount	4	28.41	$113	28.41	$153
	TOTAL		69,042		$1,961,468		$1,748,511

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor		Estimated Rates Revenue 2014-15			Estimated Amount of $100,000 land value per property	2013-14 Rate
SUBSIDISED PUBLIC TRANSPORT
	Napier City	Land Value		0.02632	$1,028,162		$26.32			$1,014,485
	Hastings District	Land Value		0.02678	$816,726		$26.78			$768,015
	Estimate of Projected Valuation			0.02675	$1,844,888					$1,782,500

RIVER CONTROL			Benefit

Heretaunga Plains Flood Control Scheme
	Napier City	Capital Value	Direct	0.01163		$752,708			$11.63	$725,077
	Napier City	Capital Value	Indirect	0.00284		$275,931			$2.84	$266,961
	Hastings District	Capital Value	Direct	0.01169		$887,518			$11.69	$843,023
	Hastings District	Capital Value	Indirect	0.00285		$427,023			$2.85	$405,082
	Estimate of Project Valuation		Direct	0.01166
	Estimate of Project Valuation		Indirect	0.00284
	TOTAL					$2,343,180				$2,240,143
Upper Tukituki Catchment Control Scheme
	Central H B District	Land Value	F1 100	0.62728		$131,090		$627.28		$124,362
	Central H B District	Land Value	F2 75	0.47046		$194,266		$470.46		$186,928
	Central H B District	Land Value	F3 50	0.31364		$92,161		$313.64		$87,908
	Central H B District	Land Value	F4 25	0.15682		$121,872		$156.82		$115,142
	Central H B District	Land Value	F5 10	0.06273		$72,116		$62.73		$68,482
	Central H B District	Land Value	F6 1	0.00627		$85,107		$6.27		$80,656
	Central H B District	Land Value	U1 25	0.15682		$36,810		$156.82		$35,308
	Central H B District	Land Value	U2 15	0.09409		$5,452		$94.09		$5,172
	Central H B District	Land Value	U3 10	0.06273		$13,770		$62.73		$13,105
	Central H B District	Land Value	U4 1	0.00627		$7,620		$6.27		$7,258
	Hastings District	Land Value	F5 10	0.06530		$1,333		$65.30		$1,183
	Hastings District	Land Value	F6 1	0.00653		$2,687		$6.53		$2,387
	TOTAL					$764,285				$727,891

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type		Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15		Estimated Amount of $100,000 capital value per property	2013-14 Rate
RIVER CONTROL				Benefit

Wairoa River & Streams Scheme
	Wairoa District		Capital Value		0.01041	$174,116	$10.41			$165,482

Central & Southern Area Rivers & Streams
		Napier City	Capital Value		0.000875	$85,293	$0.87			$83,778
		Hastings District	Capital Value		0.000879	$131,873	$0.87			$127,065
		Central HB District	Capital Value		0.000905	$33,758	$0.90			$32,753
		Taupo District	Capital Value		0.000980	$767	$0.98			$741
		Rangitikei District	Capital Value		0.001463	$345	$1.46			$359
		Estimate of Projected Valuation			0.000877	$252,036				$244,696

STREAMS AND DRAINS

- Napier, Meeanee & Puketapu		Napier City	Land Value	Urban	0.02847	$726,488		$28.01	$688,048
		Napier City	Land Value	Industrial	0.11387	$182,112		$112.05	$172,762
		Hastings District	Land Value	Rural	0.02847	$13,925		$28.50	$13,678
		TOTAL				$922,525			$874,488

Karamu & Tributaries		Hastings District	Land Value	Urban	0.03661	$846,989		$36.65	$809,442
		Hastings District	Land Value	Industrial	0.14645	$310,377		$146.61	$292,811
		TOTAL				$1,157,366			$1,102,253

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts		Rates set on		Differentials		Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 capital value per property	2013-14 Rate
STREAMS AND DRAINS
Raupare Enhancement	Hastings District		Area		1097 hectares		12.65	$13,877	$12.65/hectare	$13,877
Raupare Twyford	Hastings District		Land Value		Rural		0.0848	$199,589	$84.89	$192,371
Haumoana	Hastings District		Land Value		Rural		0.1051	$141,774	$105.22	$136,980
Tutaekuri, Waimate & Moteo	Hastings District		Land Value		Rural		0.1585	$212,165	$158.69	$202,062
Pakowhai Brookfields	Hastings District		Land Value		Rural		0.1980	$144,656	$198.21	$139,093
Puninga	Hastings District		Land Value		Rural		0.2282	$79,336	$237.81	$76,653
Brookfields Awatoto	Napier City		Land Value		Urban		0.2042	$101,945	$200.93	$98,251
	Napier City		Land Value		Industrial		0.8168	$56,100	$803.73	$54,449
	TOTAL							$949,442		$913,736

Muddy Creek	Hastings District		Land Value		Urban		0.10469	$206,570	$104.81	$203,619
	Hastings District		Land Value		Industrial		0.41876	$37,899	$419.23	$34,888
	TOTAL							$244,469		$238,507

Karamu Drainage Maintenance		Hastings District		Fixed Amount	5,569	10.55		$58,764	10.55	$55,966
Karamu Enhancement		Hastings District		Fixed Amount	5,569	9.86		$54,935	9.86	$52,319

Poukawa Drainage Special Rating Scheme		Hastings District		Land Value	PO1	0.66022		$31,877	$660.22	$26,564
		Hastings District		Land Value	PO2	0.11003		$1,664	$100.03	$1,393
		Hastings District		Land Value	PO3	0.02200		$659	$22.01	$542
		TOTAL						$34,200		$28,499

Porangahau Flood Control		Central HB District		Land Value		0.0144		$41,602	$14.40	$39,621
Maraetotara Flood Maintenance		Hastings District		Capital Value		0.0975		$11,744	$9.75	$11,402
Kairakau Community Scheme		Central HB District		Uniform Charge	80 Rating Units	1,205.90		$9,647	$120.59	$9,421

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 capital value per property	2013-14 Rate
DRAINAGE SCHEMES

Paeroa Drainage Scheme Special Rating Area
	Wairoa District	Area Basis	P1	6734.97	$13,349	$67.35	$13,349
	Wairoa District	Area Basis	P2	4377.73	$5,865	$43.78	$5,864
	Wairoa District	Area Basis	P3	3030.74	$1,681	$30.31	$1,681
	Wairoa District	Area Basis	P4	2357.24	$1,442	$23.57	$1,442
	Wairoa District	Area Basis	P5	336.75	$746	$3.37	$746
	TOTAL				$23,082		$23,082

Ohuia Whakaki Drainage Rating Scheme
	Wairoa District	Area Basis	A	12373.45	$36,656	$123.73	$35,078
	Wairoa District	Area Basis	B	9898.76	$8,553	$98.98	$8,185
	Wairoa District	Area Basis	C	7424.07	$5,223	$74.24	$4,998
	Wairoa District	Area Basis	D	3712.04	$13,122	$37.12	$12,557
	Wairoa District	Area Basis	E	1237.35	$2,869	$12.37	$2,746
	TOTAL				$66,424		$63,564

Upper Makara Stream Catchment Special Rating Scheme
	Central HB District	Area Basis	A	14394.9	$7,803	$143.94	$7,539
	Central HB District	Area Basis	B	11515.92	$21,861	$115.16	$21,122
	Central HB District	Area Basis	C	9356.69	$33,140	$93.56	$32,019
	Central HB District	Area Basis	D	5038.22	$6,645	$50.38	$6,421
	Central HB District	Area Basis	E	719.75	$16,609	$7.19	$16,047
	Central HB District	Area Basis	F	287.90	$13,115	$2.88	$12,671

					$99,173		$95,819

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount per Hectare	2013-14 Rate
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount per Hectare	2013-14 Rate
DRAINAGE SCHEMES

Esk River & Whirinaki Stream Maintenance Scheme
	Hastings District	Area Basis	E1	3922.4893	$8,808	$39.22	$9,040
	Hastings District	Area Basis	E2	1623.0499	$2,396	$16.23	$2,510
	Hastings District	Area Basis	R11	3932.8367	$1,214	$39.32	$1,291
	Hastings District	Area Basis	R12	13371.3512	$623	$133.71	$623
	Hastings District	Area Basis	R13	43231.250	$623	$432.31	$622
	TOTAL				$13,665		$14,087

	Hastings District	Area Basis	W1	17257.124	$5,330	$172.57	$5,099
	Hastings District	Area Basis	W2	11066.00	$515	$110.66	$515
	Hastings District	Area Basis	W3	3577.70	$515	$35.77	$515
	Hastings District	Area Basis	W4	19025.50	$2,888	$190.02	$2,700
	Hastings District	Area Basis	W5	369.2240	$147	$3.69	$147
	Hastings District	Area Basis	W6	4460.606	$147	$44.60	$147
	Hastings District	Area Basis	W7	1582.792	$147	$15.83	$147
	TOTAL				$9,689		$9,270
Opoho Drainage/Stream
	Wairoa District	Fixed Amount	A	66	$13,848	$13,848	$0
	Wairoa District	Fixed Amount	B	25	$5,164	$5,164	$0
	Wairoa District	Fixed Amount	C	10	$2,065	$2,065	$0
	TOTAL				$21,077		$0

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount per Hectare	2013-14 Rate
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount per Hectare	2013-14 Rate
DRAINAGE SCHEMES

Te Ngarue Stream Flood Protection Scheme
	Hastings District	Area Basis	TN	2916.28	$2,773	$29.16	$2,773
	Hastings District	Area Basis	TN1	18431.79	$155	$184.31	$155
	TOTAL				$2,928		$2,928

Kopuawhara Stream Flood Control Maintenance Scheme
	Wairoa District	Area Basis	A	15351.4	$1,875	$153.51	$1,821
	Wairoa District	Area Basis	B	6140.5	$3,804	$61.41	$3,693
	Wairoa District	Area Basis	C	3070.2	$2,225	$30.70	$2,160
	Wairoa District	Area Basis	D	767.57	$772	$7.67	$749
	TOTAL				$8,676		$8,423

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount 4.047 hectare (10acre) property	2013-14 Rate
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount 4.047 hectare (10acre) property	2013-14 Rate
BIOSECURITY

Plant Pest Strategy
	Napier City	Area Basis	4,474	45.62	$2,041	$1.85	$1,963
	Hastings District	Area Basis	365,883	45.62	$166,916	$1.85	$160,467
	Wairoa District	Area Basis	270,247	45.62	$123,287	$1.85	$118,557
	Central HB District	Area Basis	302,866	45.62	$138,167	$1.85	$132,867
	Taupo District	Area Basis	21,900	45.62	$9,991	$1.85	$9,608
	Rangitikei District	Area Basis	17,912	45.62	$8,171	$1.85	$7,858
	TOTAL		983,282		$448,573		$431,320

Regional Animal Pest Management Strategy
	Napier City	Area Basis	4,475	149.77	$6,702	$6.06	$6,464
	Hastings District	Area Basis	300,027	149.77	$449,350	$6.06	$431,961
	Wairoa District	Area Basis	207,503	149.77	$310,777	$6.06	$299,759
	Central HB District	Area Basis	295,417	149.77	$442,446	$6.06	$426,759
	Taupo District	Area Basis	7,996	149.77	$11,976	$6.06	$11,551
	Rangitikei District	Area Basis	17,912	149.77	$26,827	$6.06	$25,875
	TOTAL		833,330		$1,248,078		$1,202,369

Bovine TB Vector Control
	Napier City	Area Basis	4,426	59.33	$2,626	$2.40	$2,537
	Hastings District	Area Basis	392,528	59.33	$232,887	$2.40	$224,996
	Wairoa District	Area Basis	275,758	59.33	$163,607	$2.40	$158,063
	Central HB District	Area Basis	302,978	59.33	$179,757	$2.40	$173,666
	Taupo District	Area Basis	34,922	59.33	$20,719	$2.40	$20,017
	Rangitikei District	Area Basis	17,912	59.33	$10,627	$2.40	$10,266
	TOTAL		1,028,524		$610,223		$589,545

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15		Estimated Amount 4.047 hectare (10acre) property	2013-14 Rate

BIOSECURITY

Pest Control - Forestry
	Napier City	Area Basis	0
	Hastings District	Area Basis	65,998	50.6		$33,395	$2.05	$34,322
	Wairoa District	Area Basis	62,744	50.6		$31,748	$2.05	$31,748
	Central HB District	Area Basis	7,307	50.6		$3,697	$2.05	$3,678
	Taupo District	Area Basis	13,903	50.6		$7,035	$2.05	$7,035
	Rangitikei District	Area Basis
	TOTAL		149,952			$75,876		$76,783

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type		Districts		Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 land value per property	2013-14 Rate
Groups of Activities / Rate Type		Districts		Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 land value per property	2013-14 Rate
CLEAN HEAT & SOLAR HOT WATER SCHEME
Healthy Homes	Napier City			Land Value		0.00859	$352,895	$8.59	$355,913
(Clean Heat Financial Assistance)	Hastings District			Land Value		0.00874	$317,744	$8.74	$314,726
	Estimate of Projected Valuations					0.00873	$670,639		$670,639

Rates to repay loans to homeowners for clean heat, insulation and Solar Hot Water Scheme			$10 per $100 loan			$10		$10.00 per $100 loan

Details of Targeted Rates Calculated within each District and City
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 land value per property	2013-14 Rate
Groups of Activities / Rate Type	Districts	Rates set on	Differentials	Calculation Factor	Estimated Rates Revenue 2014-15	Estimated Amount of $100,000 land value per property	2013-14 Rate
ECONOMIC DEVELOPMENT
	Napier City	Fixed Amount	23728	17.53	$415,952	$17.53	$393,170
	Hastings District	Fixed Amount	28757	17.53	$503,877	$17.53	$475,804
	Wairoa District	Fixed Amount	4930	14.00	$69,020	$14.00	$64,467
	Central HB District	Fixed Amount	6023	17.53	$105,583	$17.53	$99,723
	Taupo District	Fixed Amount	17	17.53	$298	$17.53	$300
	Rangitikei District	Fixed Amount	4	17.53	$70	$17.53	$66
	TOTAL		63459		$1,094,800		$1,033,530

	Napier City	Capital Value	Commercial/	0.01308	$212,509	$13.08	$201,607
	Hastings District	Capital Value	Industrial	0.01315	$230,867	$13.15	$215,855
	Wairoa District	Capital Value		0.01592	$9,180	$15.92	$9,357
	Central HB District	Capital Value		0.1353	$16,644	$13.53	$16,123
	TOTAL				$469,200		$442,942

EMERGENCY MANAGEMENT
	Napier City	Fixed Amount	26370	14.84	$391,413	$14.84	$383,598
	Hastings District	Fixed Amount	31116	14.84	$461,885	$14.84	$448,849
	Wairoa District	Fixed Amount	5182	14.84	$94,287	$14.84	$90,355
	Central HB District	Fixed Amount	6352	14.84	$76,924	$14.84	$78,417
	TOTAL		69020		$1,024,509		$1,001,219

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 August 2014

SUBJECT: Local Government Elections - Electoral System

Reason for Report

1. The Local Electoral Act 2001 (LEA) gives local authorities the opportunity to review the electoral system to be used for the local body elections. For the 2016 elections this must be done no later than 12 September 2014.

2. This report is provided for Council to specifically consider whether or not to change the electoral system to be used for the 2016 local government elections.

Background

3. There are two voting systems available for local government elections, First Past the Post (FPP) and Single Transferable Voting (STV). HBRC has used First Past the Post (FPP) as its electoral system for all previous elections, back to 1989.

4. District Health Boards are required by law to use the STV voting system, however local authorities are able to choose which system they use and only 10% of councils used STV in the 2013 elections, one of which was Wellington Regional Council – the first Regional Council to use the STV system.

The Two Systems Prescribed by the Local Electoral Act 2001

[5A General description of the First Past the Post (FPP) electoral system

For local electoral purposes, the First Past the Post electoral system,─

(a) in the case of an election, has the following features:─

(i) voters may cast as many votes as there are positions to be filled

(ii) where a single position is to be filled, the candidate who receives the highest number of votes is elected

(iii) where more than 1 position is to be filled, the candidates equal to the number of positions who receive the highest number of votes are elected

(b) in the case of a poll, has the features specified in paragraph (a) as if, with all necessary modifications, every reference to a candidate were a reference to the matter or matters that are the subject of the poll.]

[5B General description of Single Transferrable Vote (STV) electoral system

For local electoral purposes, the Single Transferable Voting electoral system,─

(a) in the case of an election for multi-member vacancies, has the following features:─

(i) voters express a first preference for 1 candidate and may express second and further preferences for other candidates

(ii) a quota for election is calculated from the number of votes and positions to be filled

(iii) the first preferences are counted and any candidate whose first preference votes equal or exceed the quota is elected

(iv) if insufficient candidates are elected under subparagraph (iii), the proportion of an elected candidate’s votes above the quota is redistributed according to voters’ further preferences, and─

(A) candidates who then reach the quota are elected; and

(B) the candidate with the fewest votes is excluded

(v) the excluded candidate’s votes are redistributed according to voters’ further preferences

(vi) if insufficient candidates are elected under subparagraphs (iv) and (v), the steps described in subparagraphs (iv) and (v) are repeated until all positions are filled

5. The SOLGM Electoral Working Party recently released its updated Code of Good Practice for the Management of Local Elections & Polls in preparation for the 2016 Local Body Elections, which includes useful information for councils and communities to consider when deciding which electoral system to use in upcoming elections. The following information from the Guide is provided in order to assist with understanding the differences between the two systems, as well as advantages and disadvantages and how they work.

6. How do the two electoral systems work?

FPP	STV
Casting a vote You place ticks equal to the number of vacancies next to the candidate(s) you wish to vote for	Casting a vote You cast one single vote regardless of the number of vacancies. You cast this single vote by consecutively ‘ranking’ your preferred candidates beginning with your most preferred candidate (1), your next preferred candidate (2) and so on.
In multi-member wards/constituencies you cast one vote for each vacancy to be filled, as above.	In multi-member wards/constituencies you cast a single vote by ranking as few or as many candidates as you wish, as above.
In single-member wards/constituencies you cast one vote.	In single-member wards/constituencies you cast a single vote by ranking as few or as many candidates as you wish.
Counting votes The candidate(s) with the most votes win(s). Each winning candidate is unlikely to have a majority of votes, just the largest number of votes cast.	Counting votes The candidate(s) are elected by reaching the ‘quota’ (the number of votes required to be elected). Vote counting is carried out by computer. First preference votes (1s) are counted. Candidates who reach the quota are ‘elected’. The ‘surplus’ votes for elected candidates are transferred according to voters’ second preferences. Candidates who reach the quota by including second preferences are ‘elected’. This process repeats until the required number of candidates is elected. In multi-member constituencies, despite voters casting only a single vote, a voter may influence the election of more than one representative (if their vote can be transferred to other candidates according to voters’ preferences).
Announcing results FPP results can usually be announced soon after voting ends.	Announcing results Because all votes must be processed before counting can begin, it may take longer than for FPP preliminary results.
Results are announced and published showing the total votes received by each candidate.	Official results are announced and published showing elected candidates in the order they reached the quota and unsuccessful candidates in the reverse order they were excluded. All elected candidates will have the same share of the vote.

What are the differences between the two electoral systems?

7. FPP is a ‘plurality’ electoral system; this means that to get elected a candidate must win the most votes, but not a majority of the votes. In multi-member constituencies, like local government elections, voters cast multiple votes. This means that one voter can help to elect multiple candidates to represent him/her, and another voter may not elect any candidate to represent him/her. As a plurality system, many votes can be ‘wasted’ in FPP elections; ‘wasted’ votes do not help to elect a candidate. FPP is often described as a simple system for voters to use, but it is widely recognised as producing disproportional results; that is results that do not reflect the preferences of the broad community of voters.

8. STV is a ‘proportional’ electoral system; this means that to get elected a candidate must win a proportion of the overall votes cast (or ‘meet the quota’). In multi-member constituencies like local government elections, a voter casts a single vote by ranking his/her preferred candidates. That single vote can transfer according to the voter’s preferences to ensure that the voter has a good chance of helping to elect one candidate to represent the voter. As a proportional system, STV minimises ‘wasted’ votes; in other words more votes help to elect candidates. STV is often described as a complex system for voters to use, but it is widely recognised to produce proportional results that reflect the preferences of the broad community of voters.

Advantages and Disadvantages of Each System

9. No electoral system is perfect, and different people will have different views on what is ‘fair’. Both FPP and STV have advantages and disadvantages.

10. Overall, the advantages of STV relate to the people who get elected using STV. The system potentially achieves:

10.1. Broad proportionality (in multi-member wards/constituencies)

10.2. Majority outcomes in single-member elections

10.3. More equitable minority representation

10.4. A reduction in the number of wasted votes.

11. The disadvantages of STV relate to:

11.1. the public being less familiar with the system and possibly finding it harder to understand

11.2. matters of process such as the way votes are cast and counted (for example perceived complexity may discourage some voters)

11.3. the information conveyed in election results.

12. The advantages of FPP, on the other hand, relate to the simplicity of the process including the ways votes are cast, counted and announced.

13. The disadvantages of FPP relate to:

13.1. Disproportional election results, including the generally ‘less representative’ nature of FPP councils

13.2. The obstacles to minority candidate election

13.3. The number of wasted votes.

14. More detailed advantages and disadvantages include:

FPP	STV
Casting votes FPP is a straight forward system of voting. FPP is familiar to most people.	Casting votes STV is a less straight forward system of voting. There is a need for more information for people to understand the STV ranking system of candidates.
‘Tactical’ voting is possible; votes can be used with a view to preventing a candidate from winning in certain circumstances.	It is virtually impossible to cast a ‘tactical’ vote under STV. As a result, voters are encouraged to express their true preferences.
Counting votes FPP is a straight forward system for counting votes. Votes can be counted in different locations and then aggregated. Election results are usually announced soon after voting ends.	Counting votes STV vote counting requires a computer programme (the STV calculator). Votes must be aggregated first and then counted in one location. Election results will usually take a little longer to produce.
Election results Official results show exactly how many people voted for which candidates.	Election results Official results will identify which candidates have been elected and which have not and in which order. They do not show how many votes candidates got overall, as all successful candidates will have the same proportion of the vote (the quota). This information, at stages of the count, can still be requested.
Results are easy to understand.	Results can be easy to understand if presented appropriately.
Election results A ‘block’ of like-minded voters can determine the election of multiple candidates in multi-member wards/constituencies, without having a majority of the votes, thereby ‘over representing’ themselves.	Election results STV moderates ‘block’ voting as each voter casts only one single vote, even in multi-member wards/constituencies.
The overall election results will not be proportional to voters’ wishes, and will not reflect the electoral wishes of the majority of voters, only the largest group of voters who may not be the majority.	The overall election results reflect the wishes of the majority of voters in proportion to their support for a variety of candidates.
In single-member elections, the winner is unlikely to have the majority of votes, just the largest group of votes.	In single-member wards/constituencies, the winner will have the majority of votes (preferences).
There will be more ‘wasted’ votes (votes that do not contribute to the election of a candidate).	Every vote is as effective as possible (depending on the number of preferences indicated) meaning there are fewer ‘wasted’ votes and more votes will contribute to the election of a candidate than under FPP.

Considerations

15. Any changes to the electoral system will apply for the next two elections, i.e. 2016 and 2019. The LEA outlines the obligations Council has in making its decision on the electoral system, including giving public notice by 19 September 2014 of the right for electors to demand a poll on the electoral system.

16. If the Council does resolve to change the electoral system it must include this information in the public notice and state that a poll is required to go against a resolution to change.

17. As outlined in the LEA 5% of electors may demand a poll on the electoral system at any time. If a poll is received after 28 February 2015 the outcome of the poll will not apply until the 2019 elections.

18. The Council may resolve at any time, up to 28 February 2015, to conduct a poll on the electoral system to be used at the 2016 elections.

19. All local authorities in Hawke’s Bay including HBRC resolved, in 2011, to retain the FPP electoral system for the 2013 and 2016 elections. Those resolutions remain in effect until such time as a resolution to change is made or a poll determines otherwise.

Options for Council

20. Council now has the opportunity to decide whether or not it wishes to change the electoral system for the 2016 and 2019 triennial elections. The options open to Council are to:

20.1. resolve to change the electoral system from FPP to STV for the 2016 and 2019 triennial elections

20.2. resolve to hold a poll on the electoral system to apply for the 2016 and 2019 triennial elections

20.3. retain the status quo (FPP system) which does not require resolution.

21. In any case, public notice of the right to demand a poll on the electoral system must be given by 19 September 2014.

Decision Making Process

22. 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:

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

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

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

22.4. Persons affected by the decisions in this paper will be the voters within the region. The Local Electoral Act gives the community the opportunity to contribute to this decision making process through the option to demand a poll.

22.5. Options for Council to consider are to retain the FPP electoral system, to change to the STV electoral system, or to hold a poll on the electoral system.

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

22.7. 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. Exercises 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 the option available to the public to demand a poll under the Local Electoral Act should they choose to do so and can obtain the necessary number of signatures (5% of the electors).

2. Resolves to retain the status quo and continues with the First Past the Post electoral system

Resolves to change its electoral system to Single Transferrable Vote (STV)

Resolves to do nothing and gives public notice by 19 September 2014 that electors have the right to demand a poll on the electoral system to be used for the next two triennial elections. If no demand for a poll is received, the status quo remains and FPP continues to be used for the 2016 elections.

3. Instructs staff to action the necessary public notices and any other processes required under the Local Electoral Act 2001 in respect to the electoral system for the Local Government Elections 2016.

Leeanne Hooper

Governance & Corporate Administration Manager

Paul Drury

Group Manager Corporate Services

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 August 2014

SUBJECT: Members' Register of Interests for Confirmation

Reason for Report

1. Following are the Interests registered by each elected representative and the Chief Executive of the Hawke’s Bay Regional Council, and confirmed as correct 30 July 2014.

2. This ‘Register’ is provided as a means for Councillors and the Chief Executive to advise Council of any changes to their interests, and to ensure that the Council record is current at all times.

Councillor Richard Barker	Property Ownership in Hawke’s Bay
	409 Burnett Street, Hastings
	409A Burnett Street, Hastings
	18 Thorn Place, Onekawa
	Shareholding/Partnerships/Trusts or Trading Interests
	Barker Family Trust
	Directorships or Trusteeships
	Barker Family Trust China Pacific Ltd, Director
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared
Councillor Peter Beaven	Property Ownership in Hawke’s Bay
	35A McHardy Street, Havelock North
	Shareholding/Partnerships/Trusts or Trading Interests
	None declared
	Directorships or Trusteeships
	Lagoon Family Trust
	Prevar Ltd
	Pipfruit NZ
	100% Pure NZ Ltd
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared
Councillor Thomas Belford	Property Ownership in Hawke’s Bay
	40 Raratu Road, RD 14, Havelock North
	Shareholding/Partnerships/Trusts or Trading Interests
	Belford Partnership – interest 50%
	BayBuzz Ltd – interest 100%
	Directorships or Trusteeships
	None declared
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared

Councillor Alan Dick	Property Ownership in Hawke’s Bay
	3 Newbury Place, Taradale, Napier
	227 Taradale Road, Greenmeadows, Napier
	Shareholding/Partnerships/Trusts or Trading Interests
	Aliz Investments Ltd (not trading)
	Directorships or Trusteeships
	Aliz Investments Ltd (not trading)
	Napier Academy Trust Inc (Trustee)
	Democratic Action Association (Member and Treasurer)
	ME/CFS Support HB (Committee member and Treasurer)
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	Elizabeth Dick, Director of Aliz Investments Ltd and employed as part-time coordinator for ME/CFS Support HB, also part-time field officer (Napier) for the Stroke Foundation
Councillor Rex Graham	Property Ownership in Hawke’s Bay
	Eastella, 232 St Georges Road, Hastings
	Shareholding/Partnerships/Trusts or Trading Interests
	Graham Greene Ltd
	RGA Holdings Ltd
	Fresh New Zealand Ltd
	NZ Fruit Tree Company Ltd
	Zeesweet Ltd
	John Morton Ltd
	Shennong Variety Management Ltd
	Graham Family Trust
	Eastella Trust
	Pakowhai Nominees
	Directorships or Trusteeships
	Gladeye Ltd (Chairman)
	Te Aranga Ltd (Director
	Te Aranga-O-Heretaunga Marae Charitable Trust (Trustee)
	HB Regional Sports Park Trust (Trustee)
	Te Matau a Mau Voyaging Trust (Trustee)
	U-Turn Charitable Trust (Chairman) China Pacific Ltd, Director
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared

Councillor Deborah Hewitt	Property Ownership in Hawke’s Bay
	227 Porangahau Road, Waipukurau
	238 Pourerere Beach Road, Aramoana
	Shareholding/Partnerships/Trusts or Trading Interests
	None declared
	Directorships or Trusteeships
	Hewitt Agribusiness Ltd
	Hewitt Livestock Ltd
	Hewitt Family Trust
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared
Councillor David Pipe	Property Ownership in Hawke’s Bay
	25 Vigor Brown Street, Napier
	Shareholding/Partnerships/Trusts or Trading Interests
	Napier Community House Trust – Chair (Charitable Trust)
	Directorships or Trusteeships
	Hawke’s Bay Tourism
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared
Councillor Christine Scott	Property Ownership in Hawke’s Bay
	43 Napier Terrace, Napier
	Shareholding/Partnerships/Trusts or Trading Interests
	RM & CH Family Trust
	Directorships or Trusteeships
	ACW Ltd
	WASSTB
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared
Chairman Fenton Wilson	Property Ownership in Hawke’s Bay
	141 Maromauku Road, Wairoa
	80 Maromauku Road, Wairoa
	Shareholding/Partnerships/Trusts or Trading Interests
	Oruru Land Company Ltd (5%>)
	Directorships or Trusteeships
	Wairoa Community Development Trust
	St Vedas Trust/AH Gordon Trust/Gary Wilson Family Trust
	Other Interests
	Smedley Advisory
	Directorships or Businesses of partners/spouses
	None declared

Elizabeth Lambert (CE)	Property Ownership in Hawke’s Bay
	1 Eton Street, Taradale, Napier
	34A Kensington Drive, Napier
	Shareholding/Partnerships/Trusts or Trading Interests
	None declared
	Directorships or Trusteeships
	HB Local Authority Shared Services Ltd (Director)
	Other Interests
	None declared
	Directorships or Businesses of partners/spouses
	None declared

Decision Making Process

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

Recommendation

1. That the Council receives the ‘Members’ Register of Interests’ report.

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

Group	Area of Activity	Activity Status Update
External Relations/ CE’s office	Communications CE’s Office	- Development of Significance and Engagement Policy for consideration by Corporate and Strategic Committee in September - Development of pre-LTP consultation document (as required by amendments to LGA) - Plan Change 6 appeals
Corporate Services		Items to go to September 2014 Council meeting: - Final audited Annual Report Year Ended 30 June 2014 for adoption. - Background information on collection of rates.
Asset Management & Biosecurity	Coastal Biosecurity	- Proposal for development of a Clifton - Tangoio Coastal strategy approved by HDC, NCC and HBRC. Liaison with iwi continuing and first meeting of the Coastal Strategy Development Joint Committee arranged for 19 September. - Cost benefit analysis for individual pest species under the plan review framework underway. - Cape to City trial underway. - Regional Pest Management Plan working group 3rd meeting scheduled 12 September 2014.
Resource Management	Resource Use [Compliance]	- The Twyford Irrigators global consent trial has resulted in a resource consent application being prepared. There is already interest from other parties to replicate this and the compliance team will assist them and other parts of the RM group to progress this. - Review of the current cost recovery regime underway. - Strategies and resource requirements being determined to meet requirements of the Tukituki plan change. - A navigational safety education programme is being evaluated with the plan to deliver in HB schools before they break for the summer holidays.
Resource Management continued	Science	- Reporting on the life supporting capacity of the Karamu Stream underway - Presentation of Tukituki sediment modelling results from Landcare Research - Land-use/land-use change mapping continues to inform nutrient modelling on the Heretaunga Plains - Soil mapping (S-MAP) continues in Central Hawkes Bay - Peat soils investigation in Papanui catchment - Fieldwork for the isotope study in the Heretaunga Plains gravel aquifer is being completed - Development of the steady state version of the Heretaunga Groundwater Flow Model continues - Input datasets for the Heretaunga Groundwater Flow Model being constructed and analysed - Collection of samples for analysis of groundwater age and groundwater quality in the Papanui catchment - HAWQi coastal monitoring buoy being upgraded to install a current profiler for redeployment - Investigation into use of satellite imagery to identify ocean upwelling and off-shore groundwater springs -Collating available data and assessing investigations required for Lake Poukawa modelling - Upgrade Air Quality sites with new Loggers and Modems - Calibrate all Climate sites - Install Climate site at Waimarama - Quality checking and initial reporting for data collected from 12 extra PM₁₀ monitors across Napier and Hasting - Analysis of the insoluble component of PM₁₀ collected on the Awatoto BAM tape during March 2014 has been received and is being reviewed. - Preparations have begun to locate a PM₁₀ monitor in Ahuriri for a period of one year. - Climate and air quality State of the Environment reporting data analysis continues
Resource Management	Consents	- NCC application for coastal protection structure at Whakarire on hold pending further assessment of options and effects by coastal engineers / scientists. - TAG application for an oil exploration bore at Boar Hill being processed. - Applications from HBRIC and Bostocks for Ruataniwha “tranche 2” water (exceeding the 15 million cubic metre annual volume limit) received and being processed. - Consent expiry advice to go out mid - late August for consents expiring May 2015 including consents for Ruataniwha groundwater and Ngaruroro surface water. - Consents team embarking on discussions with all Ruataniwha groundwater consent holders to fix annual volumes on consents.
Strategic Development	Resource Management Planning	- Coastal marine area-related provisions in Regional Coastal Environment Plan approved by the Minister of Conservation after 18 months of ‘processing.’ Editing and publishing arrangements being made so RCEP can be made operative Aug/Sept. - Consultant‘s Gap Assessment of RCEP against 2010NZCPS presented to 20 Aug Regional Planning Committee meeting. - Board of Inquiry’s final decision on Plan Change 6 issued 26 June 2014. Two High Court appeals have been lodged (one by HB and Eastern Fish & Game councils and another by NZ Forest and Bird Society). Work continuing on PC6 Implementation Plan. - TANK Group finalising terms of reference and meeting schedule/work programme for Phases 2 and 3 leading to preparation of a plan change. - Taharua/Mohaka science investigations continue and assessment of recreational use/values being undertaken. - Hearings of submissions on proposed HastingsDC’s district plan commenced and scheduled to continue on topic by topic throughout rest of 2014. - NapierCC yet to schedule hearings for submissions on its District Plan Change 10. - Statutory acknowledgements to Maungaharuru-Tangitu Trust’s Treaty settlement legislation prepared for appending to regional plans. Statutory acknowledgements can be incorporated into plans without further formality. - Further revision of second draft of HB Biodiversity Strategy by the Core Working Group following feedback from 10 April external Steering Group meeting.
Strategic Development	Transport	- Changes to the bus service to improve operational efficiency are confirmed and will commence on 1 September. - Draft Regional Public Transport Plan will include proposals for service improvements to be implemented as and when funding becomes available. Expect release for public consultation in November. Work is continuing on preparation of the Regional Land Transport Plan, which sets out the region’s funding bid for all modes of transport for the six years from June 2015. Regional Transport Committee confirmed the key strategic direction for the Plan at its August meeting and work is now underway to prepare detailed programmes of activities. The draft Regional Cycle Plan is progressing well. The project governance group has reviewed the structure and policies, as well as the marketing and travel behaviour change sections. The infrastructure section of the plan is under development.
Asset Management & Biosecurity	Land Management Engineering Open Spaces Forestry Pathways	- A further meeting of the Papanui catchment group is programmed to progress strategy and develop an action plan. - A Papanui wananga will be held for continuing the development of a mauri monitoring framework for the catchment. - Ongoing development of a land management strategy to better align programmes and processes with Council objectives and proactively support implementation of Plan Change 6. - MPI expected to advise HBRC whether they will help fund the next 12 months ‘bridging’ period for re-establishing the Wairoa hill country initiative. A longer term proposal will be developed later in the year. - The Whakaki steering group will produce the first draft of a catchment MOU and the first draft of a Whakaki Lake Level Management Agreement. Staff seeking a date for continuing this discussion. - Tukituki catchment - significant effort going into consulting with potential external providers of Farm Environment Management Plans (FEMPs) to quantify capacity to deliver these and how HBRC can best support the development of capacity. Also consulting on development of an approved provider framework. - Meeting to be held with DiaryNZ and Fontera to agree a framework for implementation of PC6 specifically for the dairy sector. - Asset Management Plans for each of the Flood Control and Drainage Schemes will be progressed for adoption by Council in October 2014. Peer review work to be undertaken during September. - 30 year infrastructure strategy (required by the Local Government Act 2002 Amendment Bill) to be completed late 2014. Work required will be scoped out during September.

1	Funding Impact Statement for Setting 2014-15 Rates
2	Setting of 2014-15 Rates Legal Opinion