Agenda of Regional Council Meeting

Follow-ups from previous Regional Council Meetings

Meeting Held 27 August 2014

	Agenda Item	Action	Person Responsible	Status Comment
1	Notices	Councillors to provide feedback to Mike Adye on availability for proposed fieldtrip dates tabled	Councillors
2	Report from Maori Committee 26 August meeting	Proposal for Chairman Mike Mohi to be ex-officio on all Committees	L Lambert	Chairman in discussions with Mr Mohi on this proposal.
3	Follow-ups from Previous Council meetings	Copy of ‘leaky building’ LGOIMA requests response to be distributed to Councillors	L Hooper	Email sent 27/8/14 – included following
4	Environment & Services Committee recommendations	Update on the balance of funds available in the Open Spaces fund	M Adye	Discussed at LTP workshop 16/17 September.
5	Regional Planning Committee recommendations	Invitation to Office of Treaty Settlements to provide overview of Marine & Coastal Area (Takutai Moana) Act 2011	L Lambert	Invitation extended. Date to be confirmed.
6	Annual Report	Report / list of ‘normal’ work of Council deferred or cancelled due to workload on RWSS	L Lambert H Codlin I Maxwell	Yet to be completed.
7	Annual Report	Explanation of what $50k of Ops Group ‘profit’ retained for	P Atkins	Graeme Hansen and Paul Atkins gave verbal report to 10 September C&S meeting
8	Annual Report	Invite Jenny Brown to present to Council about the Callaghan Research and Development Fund – criteria, funding, application process	H Codlin	Item to be prepared for the November Corporate and Strategy Committee
9	Members' Register of Interests for Confirmation	Register to be amended as requested by Councillors Dick and Beaven and re-published on website	L Hooper	Updated Register published on website
10	Minor Items not on the Agenda	Whitebait stands – what does money charged get used for? Can weed clearing be organised ‘around’ whitebait season?	M Adye	See press release following

Reference follow-up #3

From: Leeanne Hooper
Sent: Wednesday, 27 August 2014 11:01 a.m.
To: Alan Dick; Christine Scott; Dave Pipe; Debbie Hewitt; Fenton Wilson (chairman@hbrc.govt.nz); mmohi@doc.govt.nz; Peter Beaven; Rex Graham; Rick Barker; Tom Belford
Cc: Liz Lambert
Subject: FW: LGOIMA request

Good morning,

Following is the response sent to the ‘leaky building’ LGOIMA requests as requested.

Cheers,

Leeanne

Good morning

This email is in regard to the s10 LGOIMA request received by Hawke’s Bay Regional Council (the Council) on 8 August 2014.

Please consider this notice of the Council’s decision on the request pursuant to s13(1) of the Act, further to our email of 8 August 2014 acknowledging receipt of your request.

I would like to respond to each point in turn:

Who was the contracted builder? Herbert Construction Company Limited

Did they have insurance and warranties about their work? Yes

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? Yes, Opus International Consultants Ltd – New Zealand Institute of Architects standard contract was used.

When was the building formally handed over to HBRC as completed and fit for use and puirpose? HBRC occupied building on 19 December 2005. Practical completion achieved on 31 January 2006.

When were the leaks and faults in the construction first identified? Subject to legal proceedings and therefore information will not be released in accordance with Sec 7 (2) g and i.

When were the faults and defects first advised to the construction firm? Subject to legal proceedings and therefore information will not be released in accordance with Sec 7 (2) g and i.

What was their response? Subject to legal proceedings and therefore information will not be released in accordance with Sec 7 (2) g and i.

What was the expiry date for the warranty and or guarantee on the construction companies work? Varies – refer New Zealand Institute of Architects standard contract.

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? Subject to legal proceedings and therefore information will not be released in accordance with Sec 7 (2) g and i

If the time for initiating the warranty and guarantee had expired, what are the relevant dates? Subject to legal proceedings and therefore information will not be released in accordance with Sec 7 (2) g and i

What is the expected cost of remedying the defects in the construction of the Dalton Street property? 17(d) the information is publicly available. Last Update to Council was provided on 4 September 2013, available on the HBRC website

Who is currently paying for the costs of remedying the property? HBRC paid

What advice has been provided to ratepayers about the cost of this work and the effect it has on the HBRC’s balance sheet? 17(d) the information is publicly available and has been reported through media

Are other parties being sued for damages associated with remediation work on the Dalton Street property and if so who? 17(d) the information is publicly available and has been reported through media

When is there likely to be a conclusion to these legal actions? 17(g) the information requested is not held by the local authority - Subject to legal proceedings

Should the legal action for compensation for the remedial work on the Dalton Street property fail, who will bear the cost of this? HBRC

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? CEO

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? CEO

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? Project Managed by Opus International Consultants Ltd reporting to HBRC CEO

What reports have been provided to Councillors on this matter, please provide electronic copies of all such reports? 17(d) the information is publicly available on the HBRC website

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. 17(g) the information requested is not held by the local authority

Liz Lambert

Interim Chief Executive Officer
Hawke’s Bay Regional Council

159 Dalton Street | Private Bag 6006 | Napier 4142
P 06 835 9214 | M 0274 285 618 | F 06 835 3601

Liz@hbrc.govt.nz | www.hbrc.govt.nz

F facebook.com/hbregionalcouncil

T twitter.com/#!/hawkesbayrc

L linkedin.com/company/hawkes-bay-regional-council

Y youtube.com/hbregionalcouncil

This communication, including any attachments, is confidential. If you are not the intended recipient, please delete it.
Thank you. Refer to the Electronic Transactions Act 2002.

Please consider the environment before printing this e-mail

Reference follow-up #10

A ‘modest’ start to Hawke’s Bay whitebait season

Friday August 29, 2014

Hawke’s Bay rivers are in excellent condition for whitebaiting with plenty of keen anglers out trying to net a meal of the slippery delicacy.

The season began on 15 August and so far the reports suggest ‘modest’ catches. The season runs until 30 November.

Each year Hawke’s Bay Regional Council issues around 200 resource consents to ‘erect whitebait stands’ on council-owned land. The consents cost $45 plus GST. This fee covers everything from issuing keys and changing locks to allow whitebaiters access to restricted areas, as well as inspecting and monitoring stands and the surrounding areas to minimise damage. Dispute resolution is a major part of management, with police regularly called over complaints and arrests are periodically made.

HBRC Operations - Engineering Officer Vincent Byrne says the majority of whitebaiters are supportive of the consenting system as it guarantees them exclusive rights to a “piece of river bank” for as long as they continue to pay their annual fee.

“We see a real sense of community develop on sections of the river. Many meet up each year with the same people. In fact some have been fishing alongside each other for decades,” says Mr Byrne.

Weed boating

Mr Byrne says another issue HBRC manages around whitebaiting season is weed boating on the Clive River.

“Weed boating is vital to the Heretaunga Flood Control and Drainage Scheme because without constant maintenance to our rivers and drains the service provided by this scheme would rapidly decline.”

He says this year weed boating finished two days before the whitebait season opened, with further weed boating undertaken prior to Christmas to allow for rowing events. In total, the Clive River is weed boated three times a year.

“During low flows it can often take weeks for the residue weed to flush out to sea. Between tides this weed ebbs and flows only gradually working itself out to sea. Understandably this can cause concern among some whitebaiters.”

He says this year the weed has been particularly bad in the Clive River. The Karamu Stream is a tributary of the Clive and is relatively slow flowing, shallow, with a high nutrient loading. This combination promotes heavy weed growth. Consequently this stream is weed boated eight times a year.

Mr Byrne says even though the Karamu Stream flows into the Clive River it does not come under the same date restrictions as the Clive.

“The vigorous weed growth in the Karamu requires a more regular schedule of weed boating and most of the weed collects on the Whakatu sewer bridge before entering the Clive, where it is mechanically removed by long reach digger. Some weed will still bypass this bridge.”

He says HBRC staff work hard to balance sound river management with the needs of recreational users.

“We try to work with groups to mitigate adverse affects to their activities. Sometimes weather conditions and circumstances rule out a perfect outcome.”

Whitebait Spawning Enhancement

The Waitangi (Tutaekuri, Ngaruroro, Clive) and Tukituki Estuaries are regionally significant whitebait spawning habitats. They have been degraded over the past 100 plus years through wetland loss, modification of riparian margins, stock grazing and inappropriate recreational use, in particular from vehicles.

Since the early 2000’s HBRC and the Department of Conservation have joined forces to protect and enhance existing spawning habitat, as well as create new ones in and around the Waitangi and Tukituki estuaries. This work has included extensive riparian fencing (e.g. Grange Creek), the creation of wetlands and whitebait spawning channels, the exclusion of cattle grazing from certain sites, restricting vehicle access to some areas and the planting of appropriate vegetation in places.

HBRC is keen to raise awareness and promote the ecological significance of these estuaries and their whitebait habitat through improved informative signage.

Request Status	Date Received	Requested By	Request Summary	Group Manager Responsible
Active	9/09/2014	Shane Morton via WhaleOil	Please provide all information relating to any Hawke’s Bay Regional Council contract with any outside consultancy undertaking groundwater modelling, including: Draft reports provided by external parties undertaking ground water modeling. Final reports provided by ground water modelers Correspondence between groundwater modelers and the HBRC terminating the ground water modeler’s contract Internal emails relating to contracting, dealing with and terminating ground water modeling contracts.	Iain Maxwell
Active	8/09/2014	Martin Taylor, Fish & Game	What HBRC uses to specifically define/characterize a "significant environmental effect" as it relates to freshwater environs. What specific criteria HBRC uses to establish different levels or thresholds for environmental effects.	Iain Maxwell
Active	28/08/2014	Chapman Tripp	Council's contracts with 3rd parties re construction or repairs associated with weather tight issues. When council 1st learned of weather tightness issues How council 1st learned of weather tightness issues When council undertook any repairs to address any weather tightness or water ingress issues - nature of repair, including who performed the repair, where on the building and cost. Amount and value of 'Alucobond' installed and any info relating to repair & replacement of that product, including contracts for supply, installation or repair. From whom council 1st purchased Alucobond and for what price From whom council recently purchased Alucobond to repair the building and for what price Who installed Alucobond recently as part of weather tightness repairs and the cost of that portion of the repairs Copy of any reports Council commissioned or received relating to weather tightness issues - other than those provided to Skellerup Info about cost of any weather tightness repairs, including itemised costs and info identifying the name and role of 3rd parties providing services or supplying products for use in any weather tightness repairs Provide copies of documents and info by 2 September	Mike Adye
Completed	20/08/2014	Gordon Reid	Data relating to the former Roys Hill recharge site.	Iain Maxwell

Top 10 Corporate Risks Assessment Framework

Attachment 1

Risk Issue 1

Water Quality

Risk Statement

If Hawke’s Bay Regional Council (HBRC) is not effectively addressing this issue, water quality in some waterways in Hawke’s Bay will decline or fall below acceptable standards.

Risk Status

The potential for water quality in the region’s water bodies to decline is real without ongoing proactive management by HBRC.

The public of Hawke’s Bay are increasingly concerned at the quality of water in the region’s rivers, and that there could be a decline in the quality of water in our key aquifers.

HBRC is required to give effect to the 2014 National Policy Statement for Freshwater Management by 2025 (setting water quality limits). The 2014 NPSFM includes a National Objectives Framework to assist regional councils to set water quality limits and timeframe targets in regional plans.

HBRC has a major focus on this issue. HBRC Strategic Plan (Oct 2011) sets out the proposed programme of work and financial provision to undertake this is provided for in the Long Term Plan (LTP) 2012/22. An overview of the Resource Management Planning programme for the draft 2015/25 LTP suggests that significant additional funding will be required to meet the NPSFM and other legal requirements.

HBRC monitors water quality at a network of sites throughout the region and reports annually on trends through its State of the Environment report.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
National Policy Statement for Freshwater Management and Catchment based plan changes.	The Tukituki Plan change (Plan change 6) (PC 6) was adopted by Council on 24 April 2013 is the first of a number of catchment specific plan changes which HBRC is developing and will implement in accordance with the National Policy Statement for Freshwater Management. The Board of Inquiry decision released in June 2014 has been appealed on the basis that it does not give effect to the NPSFM from a water quality perspective. Two other catchment based plan development processes are underway (Taharua/Mohaka; Greater Heretaunga/Ahuriri)	Control can only be effective with effective implementation of PC 6. An implementation Plan for PC 6 has been adopted by Council for managing non-point source discharges from rural land users. A broader implementation plan is being developed but is unable to be finalised until the Board of Inquiry appeals have been resolved. Taharua/Mohaka Plan Change currently being developed will deal with land use impacts on water quality. The TANK collaborative project allows the many community views to be expressed and discussed prior to the development of a Plan change for the Tutaekuri, Ahuriri, Ngaruroro and Karamu catchments.
Ruataniwha Water Storage Scheme (RWSS).	Project now being progressed by HBRIC. Resource consent application was considered through a Board of Inquiry process under the Environmental Protection Authority. The Board of Inquiry has released its decision, however this is being appealed. Investment partners and farmer uptake being actively pursued.	Subject to consent conditions imposed by Board of Inquiry and final decision to construct, however likely to be effective based on science.
HBRC Strategic Plan and Land and Water management Strategy.	Adopted by Council 2011.	Effective in communicating strategy and establishing basis for LTP work programmes and financial provisions.

Water quality continues to be a focus of HBRC. Provision for the following projects was included in the 2012/22 LTP. These projects have been developed to improve water quality over time in water bodies in HB.

• Hill Country Afforestation project (note: this has subsequently been postponed).

• Ruataniwha Water Storage Scheme (RWSS)

• Improved focus for the Regional Landcare Scheme

• Catchment based Plan changes

Land Science is developing tools (models) to determine the critical source areas of sediment in streams. This allows the HBRC land management team to focus land owners on important areas to fence stock out of waterways and improve general farming practice. This is supported by subsidies available through the Regional Landcare Scheme. New rules will require this in some catchments (Tukituki). HBRC is progressing a plan to ensure all cattle are excluded from entering water from land owned or administered by HBRC as part of flood control and drainage schemes.

The Regional sector is progressing a conversation with owners of “Overseer” regarding its use for regulating nutrient budgeting through Regional Plan rules and policies.

Strategic objective

Council’s strategic objectives of proactive integrated management of land and water will be progressed if this risk is effectively mitigated.

Mitigation actions completed since October 2013 (this term of Council)

• HBRC Strategic Plan and Hawke’s Bay Land and Water Management Strategy continue to be implemented.

• RWSS and Tukituki Catchment Plan change continue to be progressed. An Implementation Plan for Plan Change 6 has been adopted by Council for managing non-point source discharges from rural land users.

• Ngaruroro water storage feasibility projects progressed, probably in 2015/16, as the RWSS financial close has been delayed until 30 March 2015.Resourcing and developing tools through research to ensure best ‘bang for buck’ for any on farm initiatives

• New science input continues to be targeted to sensitive catchments and risk areas.

• HBRC Water Initiatives Group continues to focus on water issues.

• Programme of Regional Plan changes and necessary resource requirements are being quantified for further consideration by Council as the LTP 2015/25 is developed.

• More holistic approach to HBRC involvement continues with primary productive sector being taken with objective of reducing impact of sector on water quality.

• Riparian fencing and planting continues to be targeted, incentivised and regulated through HBRC’s Regional Landcare Scheme and Fonterra’s Clean Streams Accord.

• The agreed programme for exclusion of cattle from entering water from remaining areas of land owned or administered by HBRC as part of flood control and drainage Schemes is being implementing.

Acceptable risk profile

Council understands the importance of good water quality in the region’s water bodies, and will continue to seek improvements in water quality where they consider water quality is below a desired standard, or at risk of falling below that standard. Council however, also understands that this needs to be achieved while maintaining and growing the region’s economy. HBRC programmes in the draft Long Term Plan 2015/25 must include programmes designed to achieve the desired water quality in targeted HB water bodies.

What else could be done to reduce the residual risk?

It will take time to give effect to the NPSFM through catchment based changes to HBRC’s Regional Resource Management Plan. Consideration could be given to ‘limited scope’ plan changes if there was a significant risk of water quality degradation in the meantime.

Risk Issue 2

Water Quantity

Risk Statement

If HBRC is failing to appropriately manage the allocation of water such that security of water is provided with a fair balance between protection of environmental flows and adequate provision for irrigation, this could adversely impact on economic growth, and ecosystem integrity.

Risk Status

As for water quality, HBRC has recognised the need for ongoing proactive management of water quantity issues. HBRC has a major focus on this issue. HBRC Strategic Plan (Oct 2011) sets out the proposed programme of work. Financial provision to undertake this is provided for in the LTP 2012/22 and should be continued in the draft 2015/25 LTP.

The allocation of water requires a robust understanding of environmental, agricultural and community needs. During Hawke’s Bay’s dry summers there can be insufficient water to provide for both the environmental needs of the river environment and for agricultural irrigation needs.

The map below shows that the Tukituki, Ngaruroro including the Karamu, Maraetotara and Pouhokio catchments are currently either fully or over allocated.

The RWSS has the potential to enable this issue to be addressed in the Tukituki catchment. If the project proceeds the RWSS will result in a decrease in the period of low flows in the Waipawa River and Tukituki River below its confluence with the Waipawa, and a secure water supply for agricultural irrigation on the Ruataniwha Plains.

Increased productivity resulting from irrigation will provide economic benefits to Hawke’s Bay Region. In the longer term, HBRC needs to have an effective framework for understanding the water resource and for the management of water allocation for all of the region’s catchments.

This is recognised as a National risk. The National Policy Statement for Freshwater Management came into effect on 1 July 2011 to provide direction on the management of water quantity. This requires regional councils to set water allocation limits and minimum flows in regional plans. It also provides for the involvement of tangata whenua in freshwater planning and management.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
National Policy Statement for Freshwater Management and Catchment based plan changes.	The Tukituki Plan change (Plan change 6) (PC 6) finally adopted by Council on 24 April 2013 is the first of a number of catchment specific plan changes which HBRC is implementing in accordance with the National Policy Statement for freshwater management	Control can only be effective with effective implementation of PC 6. A broad implementation Plan for PC 6 is being developed but is unable to be finalised. The TANK collaborative project allows the many community views to be expressed and discussed prior to the development of a Plan change for the Tutaekuri, Ahuriri, Ngaruroro and Karamu catchments.
RWSS	Project now being progressed by HBRIC. Resource consents granted by Board of Inquiry with appeals relating to land use and water quality conditions only. Investment partners and farmer uptake being actively pursued.	If conditions set by Council are met and the project proceeds, it will provide additional water security to existing and new users.
HBRC Strategic Plan and Land and Water management Strategy.	Adopted by Council 2011	Effective in communicating strategy and establishing basis for LTP work programmes and financial provisions.

HBRC strategic objective

Council’s strategic objective of optimisation of water supply and demand, and ecosystem needs for sustainable growth will be progressed if this risk is effectively mitigated.

Mitigation actions completed since October 2013 (this term of Council)

• HBRC Strategic Plan and Hawke’s Bay Land and Water Management Strategy continue to be implemented.

• RWSS and Tukituki Catchment Plan change (Plan change 6) continue to be progressed.

• Ngaruroro water storage feasibility projects on hold pending possible on-farm economic study .

• Science input continues to be appropriately targeted to sensitive catchments and risk areas including a review of minimum river flows and allocation limits for ground water and surface water on a targeted catchment basis as well as the development of sophisticated modelling tools to inform future policy discussions.

• Water Initiatives Group continues to focus on water issues.

• Programme of Regional Plan changes to meet HBRC obligations associated with NPSs is being developed for consideration by Council as part of the development of the draft LTP 2015/25.

TANK process is progressing.

Acceptable risk profile

Council understands the importance of a robust knowledge of the region’s water resources and the need for a fair allocation process providing for allocating water for irrigation or other commercial purposes while maintaining appropriate flows in water bodies for environmental purposes.

What else needs to be done to reduce the residual risk?

A robust understanding of the water resource throughout Hawke’s Bay and appropriate plan changes need to be completed and implemented to provide a management regime within which water can be confidently allocated.

Risk Issue 3

The productive capacity of soil

Statement

If HBRC is not effectively managing the land use and soil, there is potential for an increase in the incidence of inappropriate land use which is adversely impacting on water quality in the region’s rivers and reducing the land’s productive capacity.

Risk Status

Improving and sustaining the productive capacity of the region’s soils and managing the potential impact of land use activities on the land, on water quality and quantity, are recognised. HBRC Strategic Plan (Oct 2011) sets out the proposed programme of work and financial provision to undertake this is provided for in the LTP 2012/22 and should be continued in the draft 2015/25 LTP.

The Regional Landcare Scheme has been utilised by farmers to retain their soils and enhance their farm environments for over 15 years, however the benefit of this initiative is spread widely across the region and has not had the benefit of catchment specific research to target the investment. Erosion of hill country continues throughout the region with major impacts in severe storm events. Planting blocks of high unique manuka factor (UMF) manuka is being assessed as an alternative crop with the potential to reduce erosion on steep erodible hill country while providing a financial return to land owners. This opportunity will be fully assessed through the HBRC trial at Tutira in 2018.

Intensive land use, and particularly dairying, is widely blamed for adversely impacting on water quality in rivers throughout New Zealand. There is evidence of this in parts of Hawke’s Bay (HBRC state of the environment monitoring and reporting). The region however, has a broader challenge of managing sediment on the landscape through targeted and fit for purpose actions to prevent the large volumes of deposited sediment entering our waterways and impacting ecological health. Regional councils are expected by the public to be proactive in managing these impacts.

HBRC is required to give effect to the 2014 National Policy Statement for Freshwater Management by 2025 (integrated land and water management).

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
National Policy Statement for Freshwater Management and Catchment based plan changes.	The Tukituki Plan change (Plan change 6) (PC 6) adopted by Council on 27 Feb 2013 is the first of a number of catchment specific plan changes which HBRC is implementing in accordance with the National Policy Statement for Freshwater Management.	Control can only be effective with effective implementation of PC 6. An implementation plan for Plan Change 6 has been adopted by Council. The TANK collaborative project allows the many community views to be expressed and discussed prior to the development of a Plan change for the Tutaekuri, Ahuriri, Ngaruroro and Karamu catchments.
HBRC Strategic Plan and Land and Water management Strategy.	Adopted by Council 2011.	Effective in communicating strategy and establishing basis for LTP work programmes and financial provisions.
Land Science	Active and increasingly higher profile team focused on tool development for land based issues	Effective in developing tools, but is challenged through the scale of demands before it and relatively low resourcing.
Regional Landcare Scheme (RLS).	Ongoing commitment to RLS signalled in Council LTP 2012-22. Improved focus on RLS to provide for initiatives to reduce P and N entering waterways – key initial target areas are Taharua catchment and Ruataniwha Plains.	Effective in encouraging land owners to undertake soil conservation and environmental enhancement initiatives on their land.
Land Management Operational Plan 2014-15.	Adopted by Council August 2014.	This plan sets out the programme of work for the HBRC land management team for the 2014-15 financial year. A significant focus of the teams work is to mitigate this risk.
High UMF Manuka trial.	Approx. 140ha planted at Tutira Regional Park (5ha 2011; 40ha 2012; 95ha 2013). Trial continues to be monitored. The potential for the trial will be fully assessed in 2018.	Has potential to provide alternative land use for steep erodible hill country.
Ongoing collaborative research programme.	HBRC has supported an increased focus on precision agriculture for the arable sector over the past several years. The Huatokitoki project, funded by HBRC, Sustainable Farming Fund, Landcorp and Hatuma researched ways to improve farm environmental and economic performance. Drylands East Coast project to test and develop novel technologies for more resilient pasture is in progress funded by Beef and Lamb NZ, HBRC and Sustainable Farming Fund.	Increased farmer awareness of the benefits of precision agriculture have been achieved. Information gathered from the Huatokitoki and Drylands East Coast projects has been disseminated through media and farmer field days.

In addition the following have been initiated to reduce this risk:

• Taharua and Tutaekuri, Ahuriri, Ngaruroro, Karamu (TANK) Catchment Plan changes are progressing, with the long term plan to undertake further catchment based plan changes.

• The pan-sector primary industry sector group has been established to provide an effective focus group with which to discuss options and approaches for mitigation, and to gain industry support in promoting those approaches.

HBRC strategic objective

Council’s strategic objective of more viable and resilient farming systems in the region through sustainable land use will be progressed if this risk is effectively mitigated.

Risk Mitigation actions completed since October 2013 (this term of Council)

• Sednet modelling to examine critical source areas of sediment reaching waterbodies. Broader science input continues to be targeted to sensitive catchments and risk areas

• The Land Management team and its programmes continue to focus on increasing capability of influencing uptake on good practice farming and reducing impact of land use on water quality.

• Strong relationship maintained with primary productive sector industry groups and groups of farmers to encourage the use of best practice.

• The Papanui Catchment Group continues to be committed to improved water quality through on farm management practice changes, this uses an adaptive management approach with standards agreed with community. This is a pilot project which will be replicated in other catchments in the future.

• The Regional Landcare scheme continues to support the HBRC approach.

• Soil mapping of Papanui catchment as a pilot catchment completed.

Acceptable risk profile

HBRC understands to importance of maintaining the productive capacity of the region’s soils in a sustainable manner, however understands that to fully address this issue is a significant task. HBRC does however ensure that cost effective programmes are resourced to work towards this objective.

What else needs to be done to reduce the residual risk?

Continue to resource cost effective work programmes.

Risk Issue 4

Regional Council functions

Risk Statement

Local government reform could result in significantly reduced commitment to Regional Council functions.

Risk Status

The value to the region of an organisation such as HBRC focussing on long term sustainable management of the region’s resources is not well understood by the public. The risk of the loss of this focus and commitment through local government reform is real.

Local government reform in Hawke’s Bay is currently being considered by the Local Government Commission.

The current focus of HBRC is on

• Natural resource knowledge and management

• Natural hazard assessment and management

• Regional strategic planning

• Regional scale infrastructure and services

• Regional economic development and services

This focus may not be as strong under a structure which may result from possible reforms in HB, which in turn may increase the likelihood of a number of the risks faced by HBRC.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
Continued advocacy for a focus to remain on functions currently undertaken by regional councils and particularly HBRC.	Draft Proposal from Local Government Commission for local authority reorganisation in Hawke’s Bay recommends a unitary authority.	HBRC has lodged a submission on the Draft Reorganisation that advocates for a focus on regional council functions.

HBRC strategic objective

HBRC retains its focus on delivering to the community in the areas aligned with natural resource knowledge and management, natural hazard assessment and management, regional strategic planning, regional economic development and the provision of regional scale infrastructure and services.

Mitigation actions completed since October 2013 (current term of Council)

• Regional Planning Committee with equal representation of Treaty Claimant Groups reinforcing the resource management role of HBRC has a regular forward meeting timetable.

• A shared hazard information web-based portal as endorsed by CDEM Joint Committee has the potential for future content covering other local government activities.

• Substantial improvement across regional council sector in collaboration and coordination.

• “Nature Central” a collaboration between Department of Conservation, Horizons Regional Council, Greater Wellington Regional Council and HBRC focussing on the sharing of services and expertise in the areas of natural resource management, community engagement, open spaces and biosecurity has identified a number of opportunities for efficiency gains.

Acceptable risk profile

HBRC has a clear focus on:

· Natural resource knowledge and management

· Natural hazard assessment and management

· Regional strategic planning

· Regional scale infrastructure and services

· Regional Economic Development

HBRC understands the importance of these issues for Hawke’s Bay and wishes to ensure that the importance of these issues to the public of Hawke’s Bay is not diminished by any reorganisation of local government in Hawke’s Bay.

What else needs to be done to reduce the residual risk?

• Should an amalgamation vote succeed HBRC should develop a position paper setting out regional council functions to enable engagement with a transition board should amalgamation occur.

Risk Issue 5

Co- Governance of Natural Resources

Risk Statement

If effective working relationships are not developed and maintained with Hawke’s Bay Treaty of Waitangi settlement groups or with other Iwi organisations this could potentially lead to fragmentation of governance of natural resources regionally.

Risk Status

HBRC continues to develop robust relationships with Māori groups and is working collaboratively towards their increased influence in HBRC decision making.

Constructive and effective working relationships with Treaty Settlement groups in particular and with Maori in general are enabling HBRC to more confidently progress its programmes of work. New groups will establish post settlement and new relationships will have to be formed both between iwi entities and between iwi and HBRC.

A Bill to establish the Regional Planning Committee has commenced its Parliamentary process. The Act once legislated will provide the ongoing certainty sought by the Treaty claimant groups for cultural redress through co-governance of natural resources.

HBRC and Ngati Kahungunu Iwi Inc (NKII) have committed to establishing a formal relationship at a governance level.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
Establishment of the Regional Planning Committee.	Established and developing capability.	Provides a formal forum for effective Maori input into HBRC policy making.
Proactive involvement in Treaty Settlement negotiations with individual claimant groups	Ongoing.	Effective in developing strong working relationship between HBRC and Ngati Pahauwera and Mangaharuru – Tangitu as they have worked through their Treaty negotiations. HBRC continue to work with these and other groups as they progress their negotiations.
Ongoing liaison and relationship building by staff with individual hapu on issues that affect, or have the potential to affect those hapu.	Ongoing.	Staff deal with individual hapu on numerous issues. Staff aim to develop strong long term relationships with hapu in order to inform them of the role of HBRC and to give them a point of contact within the organisation through which to raise issues. Over time Maori understanding of HBRC role has improved as have relationships.
Establishment of a relationship agreement between NKII & HBRC.	Ongoing.	Still in early stages.

HBRC strategic objective

Council’s strategic objective of mutually dependent relationships created that will endure over the long term and, in so doing, deliver outcomes that better achieve HBRC’s vision and purpose will be progressed if this risk is effectively mitigated. HBRC wants to increase the scale, speed, efficiency and positive impact of HBRC on the sustainable development of the region.

Mitigation actions completed since October 2013 (this term of Council)

• Regional Planning Committee continues to undertake HBRC’s statutory resource management functions, with equal representation of Councillors & Treaty Claimant representatives.

• HBRC holds central government funding to work on an agreed programme with Ngati Pahauwera around the management of the rivers in their rohe.

• National Policy Statement for Freshwater Management came into effect on 1 July 2011 and was recently amended in 2014. It provides for the involvement of tangata whenua in freshwater planning and management and this will be undertaken primarily, but not solely, through the Regional Planning Committee.

• Discussions are progressing with Maungaharuru Tangitu Trust (the post settlement organisation) to effectively utilise the surplus money earned from the Tangoio Soil Conservation Reserve for environmental enhancement work within the Esk, Te Ngarue, Waipatiki and Arapawanui catchments.

Acceptable risk profile

HBRC wishes to maintain and grow constructive relationships with Maori in Hawke’s Bay.

What else needs to be done to reduce the residual risk?

• Work with Ngati Kahungunu Whanui, to clarify roles and responsibilities for each of these groups.

Risk Issue 6

Investment Portfolio

Risk Statement

If HBRC’s investment portfolio is not effectively managed both long term financial returns and economic development in the Hawke’s Bay Region will not be maximised.

Risk Status

With the establishment of the Hawke’s Bay Regional Investment Company (HBRIC Ltd), this risk has an effective governance and management framework for its mitigation.

HBRC’s investment portfolio is set out below. Some of the investments are managed through HBRIC and some through HBRC. These are listed below on a descending scale of risk.

Investment

Owner

Approx. Value 30 June 2014

RWSS

Port of Napier

Forestry

Lease hold land

Bank deposits (Investment only)

HBRIC

HBRC

$14 million by financial close

$177 million

$3.5 million

$57.4 million

$70.0 million

HBRC holds a portfolio of approximately $318m of investment assets. These include leasehold land in Napier and Wellington, cash reserves, and HBRIC Ltd [which holds the shares in Port of Napier Limited (PONL)]. HBRC’s strategy is to invest in regional scale infrastructure and assets to deliver sustainable regional growth.

HBRC is reliant on income from investments to meet operational costs. There will be a period of several years while HBRC transfers from traditional investments to new investments aligned to its investment strategy of increased investment returns in those areas that will be of direct benefit to growing the Hawke’s Bay GDP.

During this period there needs to be careful management of investment returns and cash flows. The risk to HBRC cash flows arises with the long development phase of large projects such as the RWSS.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
Establishment of Hawke’s Bay Investment Company.	Established and operating under agreed governance structure.	HBRC’s major investments are being managed through HBRIC Board which is made up of independent professional directors. It may be that Council should seek a greater understanding of the risks associated with all of its investments.
RWSS.	Project under the control and management of HBRIC. Project now subject to Board of Inquiry EPA process. The BOI decision is currently under appeal.	Project is in its development phase. Financial close now delayed until 31 March 2015.
Sale of residual cash flows from the Napier leasehold portfolio.	Cash Flows now sold.	Investment held by HBRC as bank deposits.

HBRC Strategic Objective

HBRC wishes to better utilise the HBRC investment portfolio to encourage economic growth in Hawke’s Bay and use the return on these investments as the primary funding sources for new investments. To do this HBRC needs to ensure that the risk of ownership of any of its existing assets are well understood and appropriately mitigated. HBRC needs to determine what financial risk it is willing to be exposed to when investing in projects which may bring significant economic benefits to Hawke’s Bay.

Mitigation actions completed since October 2013 (this term in Council)

• RWSS project is being progressed. In June 2014 Council agreed to invest up to $80M in the project subject to specific conditions being met.

• Trial area of high UMF manuka being monitored.

Acceptable risk profile

Yet to be completed.

The risk profile for each asset needs to be quantified, and appropriate mitigation strategies for risks associated with those assets established.

What else needs to be done to reduce the residual risk?

Ensure that appropriate systems and procedures are in place to effectively monitor the management of HBRC owned assets and specifically request HBRIC to better define the risks associated with the assets under its control, and provide details of the mitigation measures undertaken to manage these risks.

Continue to consider assets on the Councils books that might benefit from being located in a tax efficient structure as per HBRIC Ltd especially where there is development risk.

Periodically review the balance of assets across its entire portfolio both in respect of risk and regional costs/benefits.

Risk Issue 7

Ruataniwha Water Storage Scheme

Risk Statement

There is potential for adverse economic and environmental benefits to Hawke’s Bay if the RWSS does not proceed, or if it does proceed but fails to perform as expected.

Risk Status

Financial risks associated with this project are mitigated through its governance under HBRIC Ltd.

Ongoing risks include;

· Risk of resource consent conditions being untenable

· HBRIC are unable to secure contractual commitment for 40 M m³ of water

· Investors are not attracted to fund the project.

· A contract for construction of the project which adequately addresses construction risks is not secured.

· Longer term the ability to secure contracts for the full uptake of water.

The project is being assessed for resource consents through a board of inquiry under the EPA process. This process is considered to be transparent and provide certainty. While the Board has now made its decision, this is currently under appeal.

If this project does not proceed, HBRC will need to consider writing off the expenditure incurred on feasibility studies etc.

The project has provided significant value through a greater understanding of the importance of water to Hawke’s Bay and strategies to manage potential impact of intensive land use on water quality in the region’s water bodies.

Risk Mitigation – Key controls

Mitigation measure	Status	Self-Assessment of effectiveness
Consent, final design and construction phase be managed and funded through governance and organisation independent of HBRC.	HBRIC established and project being managed through this organisation. HBRC agreed to invest up to $80M in the project in June 2014.	HBRC agreed to invest subject to the following risks being overcome: · Resource consent conditions being met · HBRIC are able to secure contractual commitment for 40 M m3 of water and additional water contracted above this level to move the project to profitability · Investors are attracted to fund the project. · A contract for construction of the project which adequately addresses construction risks is secured.
Communication plan in place to manage dissemination of decisions made regarding future of project.	Plan in place. Key milestones for decision making on the project are: · Decision of appeals to the Board of Enquiry · Final decision by HBRIC on whether project should proceed to construction	Project is progressing with regular reports back to HBRC.
Robust feasibility study and supporting reports.	All potential impacts of the project, (including damming of the Makaroro River and intensification of land use as a result of irrigation) identified and addressed. Financial advice to assess commercial feasibility in detail has formed part of feasibility study.	Council appointed Deloittes to complete an independent assessment of the RWSS business case.

HBRC Strategic Objective

Council’s strategic objective to better utilise the HBRC investment portfolio to encourage economic growth in Hawke’s Bay and use the return on these investments as the primary funding sources for new investments will be progressed if this risk is effectively mitigated.

Mitigation actions completed since October 2013 (this term in Council)

HBRC agreed to invest up to $80M in the project subject to specific conditions being met.

The Board of Inquiry completed its hearing and issued its final decision. This decision is now under appeal. HBRC is a party to the appeal.

Acceptable risk profile

HBRC wishes to better utilise the HBRC investment portfolio to encourage economic growth in Hawke’s Bay and use the return on these investments as the primary funding sources for new investments. To do this HBRC needs to identify, investigate and progress opportunities. This may include significant projects such as RWSS. HBRC needs to determine what financial risk it is willing to be exposed to when investigating projects which may bring significant economic benefits to Hawke’s Bay.

What else needs to be done to reduce the residual risk?

Continue to monitor the project as it progresses towards financial close.

Risk Issue 8

Natural Disaster, Biosecurity & Human Health Risks

Risk Statement

A major natural disaster, biosecurity or human health event will have a significant impact on the Hawke’s Bay region and HBRC activities.

Risk Status

HBRC is limited in its ability to influence an improvement in resilience of the Hawke’s Bay community to natural hazards biosecurity or human health risks through the Regional Policy Statement. However as a member and administrating authority of the Hawke’s Bay Civil Defence Emergence Management Group (HBCDEMG), HBRC is responsible with the four territorial local authorities (TLAs) to deliver comprehensive emergency management outcomes to the Hawke’s Bay community.

Specific land use zoning decisions are made by the region’s TLAs. HBRC in conjunction with the HBCDEMG will advocate for appropriate risk analysis and response by TLA’s in making these decisions. HBRC staff continue to work at a national level to seek ways to encourage better interpretation of hazard information and risk mitigation approaches through holistic planning. HBRC also work closely with Ministry of Primary Industries to understand how they will wish to utilise regional resources should there be a major biosecurity event in HB.

HBRC staff involvement in a biosecurity or human health event will mean that a number of work programmes set out in the annual plan or LTP will be delayed. The impact of a human health event on HBRC staff capacity may also adversely affect work programmes.

HBRC is the administering authority for Hawke’s Bay CDEM Group. HBRC are proactive in seeking to improve resourcing of CDEM in HB. The recent capability assessment by the Ministry of Civil Defence & Emergency Management identified a number of issues which the Group has started to address through the implementation of the recently reviewed Group Plan. Some new or enhanced initiatives have been identified to achieve the responsibilities of the Group and some thought will now need to be given to how these are funded.

The Hawke’s Bay region is at risk from flooding, earthquake, tsunami, coastal erosion and inundation and volcanic ash fall. The Heretaunga and Ruataniwha Plains are protected from flooding from the major rivers running through them by stopbanks with a 1% annual exceedance probability (100 year return period) design capacity. This level of service is predicted to reduce over time as a result of climate change. A number of reviews are in progress for the Region’s flood control Schemes to mitigate increased flood risk due to climate change.

HBRC has an ongoing programme of natural hazard research with new information communicated to the region’s territorial local authorities, emergency response organisations and engineering lifelines providers.

Major events, including severe flooding and earthquake have impacted on the region in the past and will again in the future.

Risk Mitigation – Key controls

Mitigation measure	status	Self-Assessment of effectiveness
Maintenance of an incident response structure and procedures which activates with the threat from any significant natural hazard, biosecurity or human health event.	Ongoing.	Numerous events and potential events are effectively and efficiently managed annually.
The CDEM Group, a joint committee including mayors of each of the region’s TLAs and chair of HBRC is facilitated by HBRC. HB CDEM Group resource includes a dedicated group controller.	Ongoing.	While the maintenance of a CDEM Group is required by legislation, the region has increased the resource dedicated to CDEM activity. This has resulted in greater preparedness of the region, however there is still room for improvement in terms of better coordination and working more closely together.
Insurance to assist in meeting repair costs of infrastructure assets is in place.		HBRC have a tiered approach to covering the financial risk associated with the potential impact of a disaster on its infrastructure assets.
An ongoing programme of natural hazards research maintains knowledge of natural hazards with the potential to impact HB up to date.	Ongoing based on a research strategy adopted by the CDEM Group. This strategy is reviewed every 3 to 5 years.	HB is recognised nationally as proactive in hazard research and leading in terms of integrating hazard research with CDEM objectives. As a result HBRC able to encourage researchers and attract funding to undertake specific research projects in HB.

HBRC strategic objective

Council’s strategic objective for people and businesses feeling safe and willing to invest in Hawke’s Bay will be progressed if this risk is effectively mitigated. The community is informed about the risks and satisfied with the level of protection provided through both planning and physical protection works.

Mitigation actions completed since October 2013 (this term in Council)

• Ongoing natural hazards and coastal hazard research and is recognised nationally as proactive

• A review of the HB CDEM Plan has been completed.

• As a result a structure and resourcing review is currently underway to enable the objectives of this plan to be achieved.

• HBRC staff are involved in a number of national and local initiatives associated with natural hazards readiness, reduction and response planning.

• Staff facilitate regular meetings with the HB planning group (including TLA and RC planners) to ensure common and thorough understanding of hazards and a common approach for risk reduction through planning mechanisms.

• HBRC working with MPI to understand their response strategy to a biosecurity event should one occur in HB. Note HBRC staff have been involved in incursions in other regions over past several years – eg PSA.

• HBRC has a business continuance plan setting out how it will continue to do its business if staff are unable to access the office. The plan is regularly updated.

• HBRC is working with Napier City and Hastings District Councils on the development of a Strategy for the Coast between Clifton and Tangoio.

HBRC has consulted on proposal to increase the level of protection provided by the Heretaunga Plains Scheme – Rivers to the Heretaunga Plains from the current 1% Annual Exceedance probability (AEP) standard to a

0.2% AEP standard, and committed in its LTP to that project commencing in 2015/16.

Acceptable risk profile

HBRC understands that there are significant risks to the Hawke’s Bay environment, community and economy from a major natural hazard, environmental or biosecurity event. HBRC acknowledges that when such an event occurs the impact has the potential to be severe. HBRC will however continue to focus significant resource into assisting the public understand these risks and where practical increasing the communities resilience to such an event.

What else needs to be done to reduce the residual risk?

Continue to improve external organisations’ and the public understanding of the risks to which HB is exposed to and what actions they need to take to be more resilient.

Risk Issue 9

HBRC planning framework and its flexibility to adapt to new technology

Risk Statement

The impacts of new technologies with the potential to be used in Hawke’s Bay are unable to be effectively managed as they were not foreseen in the development of Regional Plans and/or policies.

Risk Status

New technologies will continue to be developed that challenge established resource management approaches.

Examples are

· Hydraulic fracturing

· Bio control

· Robotics

· New poisons

· Genetic modification

There is uncertainty around allocation of responsibilities between central and local government for regulatory management of some new technologies

HBRC Plans may not be sufficiently flexible to enable an effective response to environmental, economic, social and cultural risks arising from new technologies. These include hydraulic fracturing and genetically modified organisms

• A report has been prepared by the Parliamentary Commissioner for the Environment on the oil and gas industry, its risks and regulation, including the use of Hydraulic Fracturing.

• Ministry for the Environment have produced a guideline for Local Government (Managing Environmental Effects of Onshore Petroleum Development Activities (including Hydraulic Fracturing))

• Potential environmental risks arising from the petroleum industry generally and the use of hydraulic fracturing specifically have been investigated through:

o Participation in working groups coordinated by the regional sector, MfE, MPI and MBIE

o Working closely with other regional councils and Ministries, developing guidance, sharing experiences and best practise options.

o Investigating approaches taken to regulate the activity internationally.

• Potential environmental and economic risks from genetically modified organisms are addressed under Environmental Risk Management Agency legislation. The potential advantage to the Hawke’s Bay economy of remaining GE free was raised in submissions on HBRC draft LTP 2012-22.

Risk Mitigation – Key controls

Mitigation measure

status

Self-Assessment of effectiveness

Maintenance of a watching brief on new technologies that could be used in Hawke’s Bay, including out to the 12 nautical mile limit offshore which is within the HBRC area of jurisdiction.

Ongoing.

HBRC supports central government’s proposals for legislative amendments that:

o Further simplify and streamline preparation and amendments of regional plans and policy statements under the RMA.

o Consolidate regulatory intervention via national planning instruments (such as Regulations and/or National Environmental Standards) for effects of activities (including emerging activities) where appropriate.

These changes will enable HBRC to be more responsive to new technologies.

Active participation in discussions and national working groups to develop stronger and more coordinated regulatory frameworks for the petroleum industry

Ongoing.

Have been active in the development of the MfE guidelines and more recently engaged in the development of guidelines for land farming (led jointly by MfE and MPI)

HBRC Strategic objective

HBRC strategies and plans are providing a strategic framework for natural resource and hazard management and regional scale infrastructure, and are therefore ahead of trends.

Mitigation actions completed since October 2013 (this term in Council)

• The Parliamentary Commissioner for the Environment has completed and published a report on Drilling for Oil and Gas in New Zealand. HBRC are considering the implications with regards to its Resource Management Plans.

• Funding provision made in 2014-15 for the commencement of an Oil and Gas Plan Change

• The Parliamentary Commissioner invited to talk to Council (not available until early 2015)

HBRC joined with Hastings District Council to host a public forum in October 2012 covering a proposition that Hawke's Bay be ‘GE Free’.

Acceptable risk profile

HBRC understands

· That new technologies will continue to evolve and individuals or organisations will wish to utilise them in Hawke’s Bay.

· That the public of Hawke’s Bay may hold a range of views on the appropriateness of these new technologies in today’s society and how their use may adversely impact their lifestyle or the environment.

· That the public of Hawke’s Bay will have an expectation that an organisation such as HBRC will have appropriate policy and planning provisions in place to manage the potential and/or perceived adverse effects of such technology.

· That the legislation under which HBRC operates requires HBRC to have fully and professionally assessed such technology and worked through a prescribed process involving significant public input to determine an appropriate policy for the management or regulation of it.

What else needs to be done to reduce the residual risk?

Continue to maintain strong links to central and regional government who may have processes that are dealing with such issues, and continue to advocate for appropriate ways to streamline planning processes under which such technologies can be managed or regulated.

Risk Issue 10

Operational Risks

Risk statement

Financial, health and safety, contractual, and other operational risks are not effectively managed and controlled.

Risk Status

Operational risks are managed through established protocols, procedures and processes. These must be reviewed, and where appropriate improved, to ensure operational risks continue to be effectively mitigated.

HBRC is exposed to numerous financial, health and safety, contractual and other operational risks associated with the delivery of its functions.

Risk Mitigation – Key controls

Mitigation measure

status

Self-Assessment of effectiveness

Implementation of numerous controls and systems for management of operational risks.

These include:

• Established corporate structure with clear responsibilities, established levels of expertise and experience, and performance expectations, including for emergency response situations.

• Financial – levels of financial delegation, regular and transparent financial management reporting, and annual audits.

• Health and Safety – Codes of practice for activities commonly undertaken by staff, the provision and use of appropriate personal safety gear, an active Health and safety committee.

• Adequate budget provision to enable an appropriate level of expertise, review and peer review for projects and activities.

Ongoing

Performance monitored through established management systems.

A business continuity plan is in place and regularly reviewed.

A number of practices are in place to manage financial risks. HBRC are audited by Audit NZ annually.

Tertiary level of WSMP in place. Internal H&S Committees are active covering organisations activities.

Staff with relevant qualifications, expertise and experience employed. External input commissioned where appropriate.

Effective ongoing management of operational risks essential.

While internal systems for the management of operational risks are in place, the Office of the Auditor General is suggesting that Council should have greater involvement in the management of organisational operational risks. Council may wish to consider the establishment of a audit and risk committee.

HBRC Strategic Objective

A responsive organisation that meets changing needs in a timely manner and delivers on organisational needs efficiently.

Mitigation actions completed since October 2013 (this term in Council)

• Tertiary level of WSMP maintained.

• Draft 2013/14 Annual report adopted for audit in August 2014.

Acceptable risk profile

HBRC understands that there are many risks associated with the activities of the organisation that must be managed. HBRC wishes to ensure that operational risks for the organisation are effectively managed.

What else needs to be done to reduce the residual risk?

HBRC should consider whether they wish to establish and Audit and Risk Committee.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 24 September 2014

SUBJECT: Monthly Work Plan Looking Forward Through October 2014

Reason for Report

1. The table below is provided for Councillors’ information, to provide them with an indication of issues and activities coming up over the next month in each area of Council.

Group	Area of Activity	Activity Status Update
External Relations		- Preparation of October issue of “the Big Picture” - Coordination of public engagement on the “Big Six” priorities - Continued work on the Tukituki information section on the HBRC website based on Plan Change 6
CE’s office		- Continuation of background work on LTP Major new initiatives - Preparation for a Regional Planning workshop proposed to be held at a marae - Liaison with Massey University around MoU
Corporate Services		- LTP workshop on funding issues scheduled for mid-October. - Continued development of LTP issues/funding/ policies/budgets etc.
Civil Defence & Emergency Management	Emergency Response	- Finalise Group Structure and Resourcing Review. - Post this Review develop Group Work Programe to implement Group Plan. - Commencing a review of the region’s control and coordination facilities. TLA emergency operations centres and Group emergency coordination centre.
Asset Management & Biosecurity	Coastal Biosecurity	- First meeting of Clifton - Tangoio Coastal Hazard Strategy governance group held on 19 September. Guidance on actions and/or activities for October and future months should be an outcome from that meeting. - Cost benefit analysis for individual pest species under the plan review framework underway. - Cape to City trial underway. - Draft LTP budgets to be developed based on the feedback received from the Biosecurity working group. The last meeting of the group was held on 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. - Strategies and resource requirements to meet requirements of the Tukituki plan change have been prepared. - A navigational safety education programme is to be delivered 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 - Analysis and reporting on surface water quality data is underway for the 5 yearly SoE reports. - HAWQi coastal monitoring buoy being upgraded to install a current profiler and dissolved oxygen sensor prior to redeployment - Communication upgrade of the Lake Tutira monitoring buoy completed - Lake process modelling of Lake Tutira by the University of Waikato is progressing well - Planning for the 2014/15 Recreational Water Monitoring program which starts on the 2^nd of November is underway. New map interface for Council’s website being trialled. - Presentation of Tukituki sediment modelling results from Landcare Research (26/09/14) - 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 steady state version of Heretaunga Groundwater Flow Model completed; input datasets for transient model being constructed and analysed - Collection of samples for analysis of groundwater age and groundwater quality in the Papanui catchment Continuation of State of the Environment reporting for 2008-2013. Assessing investigation approaches required for Lake Poukawa catchment management plan - Quality checking and initial reporting for data collected from 12 extra PM₁₀ monitors across Napier and Hasting - Preparations are ongoing 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. - NCC Thames Tyne stormwater consent received. - TAG application for an oil exploration bore at Boar Hill on hold pending information. - Applications from HBRIC and Bostocks for Ruataniwha “tranche 2” water (exceeding the 15 million cubic metre annual volume limit) currently on hold. HBRIC have advised they have a MOU with the Ruataniwha water users group. - Consent expiry advice sent late August for consents expiring May 2015 including consents for Ruataniwha groundwater and Ngaruroro surface water. - Meeting pending with Ruataniwha groundwater consent holders to assign annual volumes on consents. Advice has been sent providing an initial annual volume determined using the Aqualinc Irricalc methodology. - Advice of Water Regulations requirement for takes of 10 – 20 L/s to be metered to be sent out. HBRC need to decide on daily or weekly reporting.
Strategic Development	Resource Management Planning	- Editing and publishing arrangements being made so Regional Coastal Environment Plan can be made operative late September. Group Manager Strategic Development has delegated authority to declare RCEP operative. No further Council decision/resolution required. - At same time as operative RCEP is published, RCEP and RRMP will be amended without needing to follow formal Schedule 1 RMA steps. Those amendments will: a) Insert interim policies as directed by Policies A4 and B7 of the 2014 NPS for Freshwater Management; and b) Insert Statutory Acknowledgements relating to Treaty Settlement legislation for Maungaharuru-Tangitu Trust. - Work programme for HBRC’s Strategy and Planning activities is being reassessed as part of 2015-25 LTP development. Further discussion on work programme to occur at Regional Planning Committee’s meeting on 15 October 2014. - Board of Inquiry’s final decision on Plan Change 6 issued 26 June 2014. The 2 High Court appeals and one cross-appeal are scheduled for a hearing in early November 2014. 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 - .Next TANK Group meeting will be held on 14 October. - Hearings of submissions on proposed Hastings DC’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.
Strategic Development	Economic Development	Continue discussions with Ministry of Primary Industries, Te Tumu Paeroa and Maori Committee to advance Maori Agribusiness Initiative. Investigate opportunity to couple aspects of this workstream with Wairoa Primary Sector opportunities initiative. Continue discussions with new Wairoa Economic Development manager to scope Wairoa Primary Sector opportunities. As required and where appropriate, support RWSS workstreams. Finalise Business Hawke’s Bay KPI framework – being done in conjunction with HDC and now NCC (who have committed to match funding). Work with BHB to encourage better regional ownership and support of Regional Economic Development Strategy review. Contribute towards LTP process, in particular coordinate HBT and BHB submissions to LTP.
Strategic Development	Transport	- Changes to the bus service to improve operational efficiency started on 1 September. There has been very little public feedback but the bus company reports that services are running smoothly and there are no significant issues arising as a result of the changes. - The 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. The focus for September and October will be on preparing detailed programmes of activities. A draft of the Plan will be considered by the Regional Transport Committee in November. - 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. - Changes to financial assistance rates by the New Zealand Transport Agency will have implications for the funding of HBRC transport activities from 2015-16. These will need to be considered by Council during the preparation of the Long Term Plan.
Asset Management & Biosecurity	Land Management	- A further meeting of the Papanui catchment group is programmed to progress strategy and develop an action plan. -- 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 have agreed tp 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. A meeting with 30+ potential providers of FEMPs planned during October. - Meeting to be held with DiaryNZ, Sheep and Beef sector and Fontera to agree a framework for implementation of PC6 specifically for the dairy sector.
Asset Management & Biosecurity	Engineering Open Spaces Forestry Pathways	- The Executive Summaries of interim draft Asset Management Plans for each of the Flood Control and Drainage Schemes will be presented to Council for endorsement by Council in October 2014. Development of budgets for each of the Schemes for the next 50 years will be progressed as the basis for the LTP and 30 year infrastructure strategy. A consultant has been commissioned to peer review the plans. Their work is likely to be completed late October. - 30 year infrastructure strategy (required by the Local Government Act 2002 Amendment Bill) to be completed late 2014. The development of this Strategy will be progressed during October. - A review of the Upper Tukituki Rating Scheme has been commissioned and will commence during October. Likely completion date will be late 2015. - Individual Park Plans for Pekapeka, Waitangi and Pakowhai Regional Parks nearing completion for consideration and adoption by Council. These will be circulated to Council late October, with their adoption sought at the E&S Committee in December. Draft Plans will be posted on HBRC website before this Committee meeting. - A review of Council’s forestry portfolio progressing for report back to the November Corporate and Strategic Committee meeting. - A review of the Tangoio Soil Conservation Reserve Management Plan is progressing, including consultation with a number of stakeholders. Future harvest planning being undertaken. The revised Plan will be brought to Council for consideration and adoption. Expected date for Council Committee consideration is November. - CHB pathway construction continuing. Official opening programmed for 2 November 2014.

Decision Making Process

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

Recommendation

1. That Council receives the Monthly Work Plan Looking Forward Through October 2014 report.

Mike Adye

Group Manager

Asset Management

Helen Codlin

Group Manager

Strategic Development

Paul Drury

Group Manager

Corporate Services

Ian Macdonald

Group Manager/Controller Hawke's Bay Civil Defence Emergency Management

Iain Maxwell

Group Manager

Resource Management

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

Districts	Rating Units	Urban	Rural	Total Rates	%
Wairoa	6,686	$139,313	$1,099,809	$1,239,122	6.88

Central Hawke's Bay	7,589	$276,928	$1,946,270	$2,223,198	12.34

Napier	24,883	$5,391,076	$474,452	$5,865,528	32.55

Hastings	30,393	$4,435,417	$4,135,121	$8,570,538	47.55

Taupo/Rangitikei	58		$123,955	$123,955	0.68

	69,609	$10,242,734	$7,779,607	$18,022,341	100

Percentage of rates Urban/Rural		56.83	43.17

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