Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Status Comment
1	Napier Port Amended constitution	Clarification of clauses: 3.2, 10.4(b) and 15.2(c), 15.6(e), 16.1(a), 17.1(b)	HBRIC Ltd	Refer to 29 October Agenda item

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 October 2014

SUBJECT: Affixing of Common Seal

Reason for Report

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

		Seal No.	Date
1.1	Leasehold Land Sales 1.1.1 Lot 1 DP 4426 CT 55/97 - Transfer 1.1.2 Lot 49 DP 13039 CT E1/1227 - Agreement for Sale and Purchase 1.1.3 Lot 14 DP 13691 CT F2/1251 - Agreement for Sale and Purchase 1.1.4 Lot 16 DP 4488 CT 56/27 - Agreement for Sale and Purchase 1.1.5 Lot 14 DP 13691 CT F2/1251 - Transfer 1.1.6 Lot 23 DP 6391 CT D4/1433 - Agreement for Sale and Purchase 1.1.7 Lot 142 DP 13111 CT E3/562 - Agreement for Sale and Purchase 1.1.8 Lot 587 DP 2497 CT 55/132 - Transfer 1.1.9 Lot 16 DP 4488 CT 56/27 - Transfer	3805 3805a 3807 3809 3810 3811 3812 3813 3814	20 September 2014 22 September 2014 30 September 2014 2 October 2014 9 October 2104 15 October 2014 15 October 2014 15 October 2014 21 October 2014
1.2	Memorandum of Agreement 180 Ferry Road, Clive CT 91/34 (Boundary adjustment)	3803	19 September 2014
1.3	Esplanade Strip Lake Runanga M1/1056	3804	19 September 2014
1.4	Staff Warrants 1.2.1 J. Ellmers (Delegations under Resource Management Act 1991; Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908 and Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174)	3806	25 September 2014
1.5	Proxy Hawke’s Bay Regional Investment Co Ltd	3808	30 September 2014

Decision Making Process

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

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

2.2 Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others due to the nature and significance of the issue to be considered and decided;

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

Recommendations

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Confirms the action to affix the Common Seal.

Diane Wisely

Executive Assistant

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 October 2014

SUBJECT: Ahuriri Estuary Committee

Reason for Report

1. In November 2013 Council approved its commitment to engage with Mana Ahuriri, the Crown and other parties in the development of the Ahuriri Estuary Committee (Te Komiti Muriwai o Te Whanga) and delegated the Interim Chief Executive to represent the Council on negotiations on the detailed development of the Committee.

2. The purpose of this report is to update Council on the detailed development and to seek Council approval of the draft clauses as negotiated.

Background

3. The Ahuriri Estuary (Te Muriwai O Te Whanganui ā Orotu) is a remnant of a 3,840 hectare area of water which, prior to 1931, Europeans called the Napier Inner Harbour or the Ahuriri Lagoon. The lagoon was separated from the sea by a narrow sand and shingle bank. Two main rivers discharged into the lagoon, the Waiohinganga (Esk) and the Tutaekuri. Periodically, the Ngaruroro and Tukituki Rivers flowed north to join the Tutaekuri.

4. The earthquake of 3 February 1931 lifted the bed of the lagoon between 1.5m and 3.4m and exposed about 1300 ha of the bed of the lagoon. Various reclamations since 1931 have reduced the estuary by a further 1700ha to its present size.

5. The Hāpu have a long-standing cultural connection with Te Whanganui a Orotu (of which Ahuriri Estuary is a part) where they have resided since well before European settlement. Historically this area was a main source of food for the hapu. There are also a large number of wahi tapu in the area.

6. The Hāpu of Mana Ahuriri wish to have their interests in Te Whanganui a Orotu recognised through their Treaty settlement. Key to their reaching a durable settlement will be the recognition of their mana in Te Whanganui a Orotu, and, importantly, the Estuary. They are seeking to have their kaitiaki status over the Estuary effectively recognised, and to ensure that there is a coordinated and comprehensive approach to the Estuary’s management involving all stakeholders with management responsibilities and interests in the Estuary.

7. On 19 September 2013 these stakeholders met with representatives of Mana Ahuriri and the Crown to discuss a Crown proposal for redress over the Ahuriri Estuary as part of the Mana Ahuriri Treaty Settlement. In attendance at the meeting were representatives from the Department of Conservation, the Office of Treaty Settlements Napier City Council, Hastings District Council and the Hawke’s Bay Regional Council.

8. Over the course of 2014 discussions were held between the parties and the result is the attached draft clauses for the establishment and operation of the Komiti (Attachment 1). The establishment of the Komiti is to be included in the Mana Ahuriri settlement which is proposed to be signed mid to late March 2015. In order to allow time for the Agreement to be prepared Council approval is sought for the draft clauses and for further finalisation to be negotiated.

Draft Clauses for Komiti

9. The key points of the Draft Clauses are:

9.1. The Komiti will be established as a permanent, stand-alone, multiparty, statutory body by settlement legislation

9.2. The purpose of the Komiti is to provide guidance and coordination in order to promote the protection and enhancement of the environmental, economic, social, spiritual, historical and cultural values of the Te Muriwai o Te Whanga for present and future generations

9.3. Hawke’s Bay Regional Council will have one representative on the Komiti (note that in November 2013 Council noted that a separate paper will be brought back to Council seeking a councillor appointment once the committee has been finalised).

9.4. The functions of the Komiti include (but are not limited to) identification of values, vision, objectives and desired outcomes; advocacy; stakeholder engagement and communication, promotion of support for the ongoing health and well being of Te Muriwai o Te Whanga.

9.5. The Komiti is also responsible for preparing and approving a management plan for Te Muriwai O Te Whanga. The deed of settlement and legislation will provide the plan with a statutory weighting of “have regard to” in relation to Council RMA documents.

9.6. The Management Plan will:

9.6.1. Identify the significant issues for Te Muriwai O Te Whanga

9.6.2. Identify management elements that may enhance the social, cultural and economic wellbeing of people and communities

9.6.3. Consider the integrated management of the water and lands of Te Whanganui a Orotu for the benefit of the health and wellbeing of Te Muriwai o Te Whanga

9.6.4. Make recommendations on the integration and coordination of Te Muriwai o Te Whanga management

9.7. The onus for preparation of the plan will fall on the local bodies (NCC, HDC and HBRC) and the Department of Conservation

Financial and Resource Implications

10. The Komiti will not be formally established as a statutory body until the settlement legislation passes (which is currently estimated for early 2016). Preparation of the Management Plan for Te Muriwai o Te Whanga must begin no later than three years after Settlement Date. It is to be expected that both science and planning staff may be required to contribute time to the preparation of the Plan.

Decision Making Process

11. 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:

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

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

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

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

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

Recommendations

That Council:

2. Approves the Draft Clauses for the Establishment and Operation of Te Komiti Muriwai O Te Whanga and advises the Office of Treaty Settlements of this approval.

3. Authorizes the Interim Chief Executive to represent the Council in negotiations on the final details for setting up the Te Komiti Muriwai o Te Whanga.

4. Notes that the appointment of a councillor to represent the Hawke’s Bay Regional Council on the Komiti will be made once the Komiti is formally established, and further notes that an appointment may be needed for the interim operation of the Komiti.

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

Hawke's Bay Tourism Quarter 1 2014-15 Report

Attachment 1

Hawke’s Bay Tourism Ltd – Quarter 1, 201

Prepared by Annie Dundas, GM Hawke’s Bay Tourism

Overall

Hawke’s Bay Tourism Limited was officially formed in July 2011 and began a three year strategy for implementing visitor growth to the region supported by a three-year funding commitment from the Hawke’s Bay Regional Council. This agreement has been extended until the end of June 2015. The KPI’s developed in 2011 continue to the form the basis of Hawke’s Bay Tourism activity. This report will focus on the July - September 2014 period.

1. Visitor Statistics

In an effort to take a broader industry view of what is happening within Hawke’s Bay we will use the following measures to record visitor arrivals and economic impact.

· Regional Tourism Estimates – reflecting visitor spend. The RTEs provide regional stakeholders with absolute dollar estimates of tourism expenditure at a detailed regional level (i.e. by regional council, territorial authority, visitors’ country of origin and industry). Dollars spent is measured by dollars spent in accommodation, food and beverage services, retail sales, retail sales fuel, other tourism products and other passenger transport.

· International Visitor Survey – international visitor arrivals

· Commercial Accommodation Monitor – hotels, motels, holiday parks and backpackers

· Private Household Monitor – a measure of friends and family staying in Hawke’s Bay

Overall both visitor spend and nights spent in the region by visitors are up in the last twelve months.

Spend figures show international visitors spent $80m in the region year end March 2013 and domestic visitors spent $480m over the same period. (Source Regional Tourism Estimates). Estimates by Economic Solutions have evaluated year end March 2014 figures for Hawke’s Bay to be at $513m in domestic spend and $91m in international. This represents a 6.3% increase overall.

Visitor arrival results for Hawke’s Bay for the month of August 2014 combining Commercial Accommodation and Private Household figures show a decline in nights of 2,898 guest nights in August 2014 compared to August 2013. Year- end figures indicate that the region saw an increase in guest nights of 52,814 across the year. (graph below).

Commercial Accommodation Hawke’s Bay

Commercial Accommodation Monitor for August 2014 shows Hawke’s Bay guest nights down 2.2% compared to the same period in August 2013. This equates to approximately 1,000 less nights spent in commercial accommodation in the region in August. Hotels and Backpackers saw an increase in August while Motels and Holiday Parks saw declines. August is traditionally one of the quietest months across the year for visitors.

Private Household Monitor

The Private Household Monitor estimated 33,855 visitors to the Hawke's Bay Region stayed

133,235 nights in private accommodation during August 2014. Note this excludes those who stayed in holiday homes and baches, but includes children aged 15 or under. The major reason for visiting Hawke's Bay were visiting friends or family (73.0% of total nights stayed) and general holiday or leisure (10.7% of total nights stayed). Visitors to the region stayed an average of 3.9 nights in private accommodation. International visitors stayed on average 2.1 times as long as domestic visitors (6.7 nights compared to 3.2 nights respectively).

International Arrivals into New Zealand

Overall, international visitor arrivals into New Zealand saw a decline in August of -0.2% (141,468 visitors). Australian arrivals made up much of the overall decline into New Zealand with a -1.2% drop (45,008 less visitors) for August against August last year. Continued month-on-month growth from the long-haul markets of the USA (up 8.5%) and Germany (up 11.5%) was positive and China saw a good result (up 12.2%) in August which is showing a return back to travel post the changes to visas which discouraged controlled group tourism and commission shopping. The UK saw a decline of -4.7% in August.

International Visitors to NZ	August 2014		Year end August 2014
Total	188,849	-0.2%	2,799,529	+5.3% (141,468)
Australia	98,784	-1.3%	1,238,528	+3.8% (45,008)
UK	7,088	-4.7%	193,680	+1.3% (2,480)
USA	9,584	+8.5%	212,432	+11.2% (21,392)
China	19,936	+12.2%	245,632	+7.2% (16,448)
Commercial Accommodation	August 2014		Year end August 2014
Hawke’s Bay
Total visitors	24,727		450,601
Total guest nights	45,251	-2.2%	946,263	-1.1%
International guest nights	8,376	+8.7%	234,872	-7.9%
Domestic guest nights	36,875	-4.4%	711,391	+1.3%
Average length of stay	1.83	Down from 1.91	2.14	Down from 2.16
Overall occupancy rate	21%	Down from 22.4%	33%	Up from 32.3%
Occupancy excl Holiday Parks	31.5%		46%
Hotels	9,421	+7.5%	142,329	-6.7%
Motels/Apartments	25,994	-5.8%	503,182	+3.9%
Backpackers	4,641	+8.1%	116,216	-0.1%
Holiday Parks	5,196	-7.2%	184,536	-9.4%

Other Regions Total Guest Nights
Coromandel	27,107	+28.6%	756,474	+5%
Bay of Plenty	58,939	+0.9%	1,097,906	+9%
Rotorua	117,394	+1.0%	1,821,580	+4%
Taupo	62,040	+3.1%	965,285	0%
Gisborne	17,197	+21.6%	342,550	+8%
Wellington	181,507	+5.9%	2,387,300	-2%
Nelson	41,822	-9.7%	1,239,270	+3%
Wanaka	56,900	-5.4%	639,706	-4%
Queenstown	278,620	-1.3%	2,936,051	+8%
Private Household Monitor	August 2014		Year end August 2014
Total Visitors	33,855	-6.9% (2344)	681,669	+7.3% (+46,880)
Total Visitor nights	133,235	-1.4% (1889)	2,767,604	+2.3% (+62,996)

Key Performance Indicators for Hawke’s Bay Tourism

The organisation continues to work towards the goals and objectives set out in the Strategic Plan signed off by HBRC in May 2011.

In the first quarter of the 2014 2015 financial year the following KPI’s have been met;

1. Hawke’s Bay Tourism - the Regional Tourism Organisation is well established and has now completed three years of operation.

2. Brand – The “Hawke’s Bay” brand continues to be widely used and is well established and used consistently in all marketing activity. Many Hawke’s Bay entities such as Business Hawke’s Bay, Food Hawke’s Bay, Central Hawke’s Bay, Havelock North Business Association, and Education Hawke’s Bay have adopted the brand for their own representation. Regional collateral also carries this brand which covers the Hawke’s Bay Visitor Guide, The Art Guide, The Food Trail Map, The Hawke’s Bay Trails Map, The Wine Trail Map and the Hawke’s Bay Summer Guide. In addition Hawke’s Bay Tourism has created and owns the F.A.W.C! brand as well as The Big Easy brand. Adaptions to the brand now include adding the towns and cities within Hawke’s Bay to the logo.

3. Consumer Marketing -

· Advertising - “Get me to Hawke’s Bay”

“Get me to Hawke’s Bay” is the tagline used in all campaign activity.

Campaign activity has run through the first quarter online and in print. Much of the advertising schedule through this period has been dedicated to promoting Art Deco Weekend, Family Activity for the summer holidays and Summer F.A.W.C! This has revolved around the release of new video/digital footage as well as extensive activity within Facebook and other online channels such as stuff.co.nz, nzherald.co.nz and eventfinda.

o A newly made 30 second Art Deco clip has been made and there have been over 85,000 views via Facebook and Youtube. www.youtube.com/watch?v=DAZ8IkckLM8

o The Summer F.A.W.C! 30 second video clip has been viewed by 5,000 people. www.youtube.com/watch?v=AkWURddv8VA

o The Hawke's Bay facebook page has 32,500+ likes

Search engine marketing also continues.

Public relations

Hawke’s Bay Tourism has hosted the following media in region between July – end September

· NZ Herald (Family focus)

· Getaway Australia (Cycling on the Hawke’s Bay Trails) 1 million Australian viewers per week. This show will be aired in Australia in November.

· House and Garden Australia - 995 000 readers per issue

Media results include

· Annabel Langbein – Free Range Cook – Through the Seasons has featured Hawke’s Bay in two episodes so far. Viewership is approximately 500,000 per episode. Hawke’s Bay Tourism and Hastings District Council supported her visit and filming in November 2013.

· NZ Herald
http://www.nzherald.co.nz/travel/news/article.cfm?c_id=7&objectid=11341711 http://www.nzherald.co.nz/travel/news/article.cfm?c_id=7&objectid=11336326

Digital Strategy

www.hawkesbaynz.com is performing well with unique visitation up over 11%. Over 21,000 people visit the site each month. In addition Hawke’s Bay Tourism also owns www.fawc.co.nz and www.thebigeasy.co.nz . Both of these sites are generating strong traffic. The region’s official facebook page has 32,500 followers.

www.hawkesbaynz.com	1 Oct 2012 – 30 Sep 2013	1 Oct 2013 – 30 Sep 2014	+/-
Visits to site	228,299	252,931	+10.79%
Unique Users	166,572	185,215	+11.19%
Page views	848,905	989,512	+16.56%
Average pages per visit	3.72	3.91
Average time on site	3.06	3:18

Research

A monthly one-page tourism monitor has been established and is distributed to stakeholders and industry each month. See July attached.

4. Trade Marketing

In the first quarter we have taken part in the following activity;

· RTONZ Regional Tourism Organisations of New Zealand & Tourism New Zealand regional updates

· TRENZ – the largest tourism event in New Zealand is confirmed to be hosted in Rotorua in May 2015 by Explore Central North Island of which Hawke’s Bay is a partner. Extensive planning is underway to ensure the region leverages the opportunity.

· China – a revised China manual has been developed for operators interested in growing their China business.

· Film Hawke’s Bay – assistance with Directors and Producers familiarisation to region

Conference Activity

· Quarterly C&I portfolio meeting with industry leaders

· A range of bids and presentations have been made for prospective conferences in the last three months.

Trade Familiarisations

· China Southern Airlines Golf Famil – 9 high-end agents visited for a golf itinerary in September

· Luxperience – 5 luxury agents visited Hawke’s Bay from the USA in September

· Thai Famil - 5 Jakarta based travel agents visited in August

· Hawke’s Bay Tourism hosted the Tourism New Zealand Board in September for a famil and their Board meeting which included a hosted dinner with a large number of the tourism industry.

· Touch of Spice a leading luxury inbound operator was hosted principal on a famil of the region.

Workshops & Trade Events

· Monthly tourism sector meetings continue. Representatives from the following sectors attend - motels, hotels, B&B’s, attractions, councils and hospitality meet on the first Friday of each month.

· Cruise New Zealand AGM – 8 August 2014

· Tourism Awards – Judging

· Tourism Awards Evening

5. Events

Regional Events Strategy

· A renewed focus to the events strategy has been undertaken due to the priority given to events by both Napier City Council and Hastings District Council having employed key event staff. Hawke’s Bay Tourism is coordinating the regions effort with close collaboration with both Councils and Sport Hawke’s Bay. The key objective is to increase visitor nights in the region, particularly in the off-season. A revised events strategy was presented to a number of event managers in Hawke’s Bay early October.

Event Activity

· An All Blacks Test Action Group was formed for the All Black match on September 6. It included representatives from all districts and associations as well as the HBRU. A range of activity was delivered around the game under the theme of ‘The Great Match Hawke’s Bay”. This includes a “what’s on” programme within Hawke’s Bay Today, a series of activities within the Napier CBD prior to the game, “blacking out” Havelock North. “Great Match” collateral was displayed around the region and key areas such as West Quay, renamed West Quay HQ. The All Blacks were involved in a number of local activations within the Municipal Theatre and the Sound shell. Despite the weather the region delivered a great result and hope this bodes well for Hawke’s Bay hosting a Lions Game in 2017. Visitor numbers to the region were estimated at approximately 6,000. An economic impact report will be developed but early estimates would have the match generating anywhere between $3-5m into the economy.

· Cricket World Cup 2015 – Hawke’s Bay Tourism will lead the Community Engagement Strategy alongside Councils, Cricket Associations and promotions groups. We have three matches in Hawke's Bay and tickets are on sale now. Visiting teams include our very own Black Caps, the West Indies, United Arab Emirates, Afghanistan and Pakistan. The key event Hawke’s Bay Tourism is involved in is The Legends of Cricket Art Deco Match on February 25^th. This will be held at Clifton Country Cricket Club.

· Summer F.A.W.C starts 31 October – 9 November and ticket sales are well ahead of previous years with just under 3,000 tickets sold so far. Revenue to date has exceeded $160,000. This year over 60 events will make up the 10 day programme.

Big Events Coming Up

· F.A.W.C! Summer Series October 31 – November 9, 2014

· Air NZ Wine Awards November 22, 2014

Hawke’s Bay Tourism – Financial Statement

Hawke’s Bay Tourism Ltd is tracking well within the first quarter of this financial year.

Key Hawke's Bay Tourism Results Year Ending July 2014 (please note figures in report are for August)

Total Direct Visitor Spend ¹	Years Ended July 2009-2014			Total Arrivals ²	Year Ended July 2014
					July 2014	YE July 2014	Annual % Change
				*Hawke’s Bay*	74,788	1,126,575	4.8
				*Napier City*	36,254	536,887	5.1
				*Hastings District*	29,967	454,741	4.3
				*Commercial Accommodation ³*	26,158	442,562	0.3
				*VFR Accommodation ³*	48,630	684,013	7.9
				*Conventions Activity Delegates ⁴*	21,708	100,744	1.4
				*Cruise Ship Visitors⁵*	-	85,437	-7.9
Total Night-Stays ²	Year Ended July 2014			Domestic Tourism ⁷	Year Ended July 2014
	July 2014	YE July 2014	Annual % Change		July 2014	YE July 2014	Annual % Change
*Hawke’s Bay*	255,994	3,716,765	1.3	*Total Arrivals*	62,880	906,105	5.5
*Napier City*	112,610	1,627,349	1.8	*Total Visitor Nights*	205,171	2,758,598	1.1
*Hastings District*	111,208	1,624,913	0.8	*Average Length of Stay (Nights)*	3.26	3.04	-
*Ave Length of Stay (Nights)³*	3.42	3.30	-	*% of All Nights*	80.1	74.2	-
*Commercial Accommodation ³*	51,252	947,272	-0.5	*Commercial Nights*	43,310	713,071	2.3
*VFR Accommodation ³*	204,742	2,769,493	2.0	*VFR Nights*	161,861	2,045,527	0.8
*Total Commercial Occupancy Rate %⁶*	22.89	33.17	-	*Key Markets ⁸*	Waikato, Wellington, Auckland, Bay of Plenty, Manawatu-Wanganui.
International Tourism⁷	Year Ended July 2014			Economic Contribution of Tourism	Year Ended March 2014
	July 2014	YE July 2014	Annual % Change		March 2014	YE March 2014	Annual % Change
*Total Arrivals*	11,908	220,470	2.0	*Domestic Visitor Spend ($M)⁸*	38.2	513.0	6.2
*Total Visitor Nights*	50,823	958,167	1.9	*International Visitor Spend ($M) ⁸*	4.8	91.0	7.1
*Average Length of Stay (Nights)*	4.27	4.35	-	*Total Visitor Spend ($M) ⁸*	43.0	604.0	6.3
*% of All Nights*	19.9	25.8	-	*GDP Contribution ($M)⁹*	37.6	527.8	6.3
*Commercial Nights*	7,942	234,201	-7.9	*Total Direct Employment⁹*	-	4,213	6.3
*VFR Nights*	42,881	723,966	5.6	*Cruise Tourism Spend ($M) ¹⁰*	-	22.4	0.9
*Key Markets ⁸*	Australia, Europe, UK, USA, Asia.

Notes:

1. Base data sourced from Ministry of Business, Innovation & Employment (MBIE).

2. Includes commercial and VFR overnight visitors. Commercial data sourced from Statistics NZ and VFR (visiting friends and relations) data from HB Tourism.

3. Hawke's Bay region only figures.

4. Data sourced from MBIE quarterly conventions activity surveys.

5. Data sourced from Port of Napier.

6. Data sourced from Statistics NZ.

7. Hawke's Bay region level results.

8. Based on MBIE expenditure figures.

9. GDP and Employment contributions calculated on basis of results of recent tourism economic impact studies in HB.

10. ‘Cruise NZ' forecast for 2013/14 cruise season.

Summary of Financial Position to 30 September 2014

Attachment 1

Summary of Financial Position to 30 September 2014

SECTION A

Operating Position for Three Months Ending 30 September 2014

1. This is the first financial report for the 2014-15 Annual Plan year and is also the first report to pro-rata estimates of expenditure revenue that reflect each project manager’s assessment of the fall of expenditure and revenue during a financial year.

2. This has resulted in minimal variations for actual expenditure and revenue as against the pro‑rata for the first three months, so accordingly the focus of this financial report is to show the results of a high level reforecasting exercise which was initiated due to:

2.1. The recognition by Council in August 2014 that the financial close date for the Ruataniwha Water Storage Scheme (RWSS) would need to be extended to 31 March 2015. The impact of this decision resulted in not only the cash flows from Council to RWSS not now being required until at least nine months later than set out in the Annual Plan, but also additional time would need to be charged to the RWSS by Council staff.

2.2. The Reserve Bank of New Zealand delaying further rises in the official cash rate (OCR) from its last approved level of 3.5% per annum in July 2014. The Annual Plan reflected the market expectation that rises in OCR would continue through the 2014/15 year to around 5% per annum by March 2015.

Coupled with slower increases in OCR is also the Bank’s willingness/need to attract additional deposits due to the slowing housing market and their reduced ability to on-lend. Accordingly rates of 5.1% achieved on funds deposited in July 2014, can now only be invested at between 4.7% - 4.8%. Again this has had an unfavourable effect on Council’s regional income earned from interest on deposits, especially considering the Council now has $70 million held on deposit awaiting eventual drawdown to fund the RWSS if this project proceeds.

An analysis of the adjustments proposed to be made to the Annual Plan to provide a reforecast deficit is as follows.

Groups of Activities

3. Strategic Planning ($62,000 Unfavourable)

3.1. The paper considered by Council on 27 August 2014 requested that Council notes that the financial close for the RWSS would need to be extended to 31 March 2015. Also included in the paper was a request for increased funding and including additional budgeted provision to cover the commercial and legal costs to fund the High Court Appeals currently underway. The proposal in that paper was for Council to fund $62k as its share of costs relating to Plan Change 6 (PC6) requirements as distinct from RWSS.

4. Regional Resources ($50,000 Favourable)

4.1. The carry forward of expenditure from 2013-14 to 2014-15 Annual Plan year included $400k for consultancies in Council’s Science programmes. Subsequent to Council’s approval on 4 June 2015, $50k of this carry forward request was spent on consultancy in the 2013-14 year. This project has now been adjusted and provides a $50k favourable variance against the published 2014-15 Annual Plan.

Cost Centre Adjustments

5. Internal Staff Costs to RWSS ($118,000 Favourable)

5.1. As advised to Council on 27 June 2014, the delay in financial close of the RWSS to 31 March 2015 would require additional input from Council staff which has resulted in a further sum of $118k being debited to the RWSS capital project and thus providing a favourable variance for Council’s operations.

6. Sick Leave Provision ($72,000 Favourable)

6.1. Discussions with Council’s auditors, Audit NZ, during the Annual Report for year end 30 June 2014, established that further work should be undertaken during the 2014-15 financial year on the level of provision in Council’s balance sheet to cover sick leave. Preliminary work has been carried out and this provision in the balance sheet will need to be decreased by approximately $103k which has a favourable impact on Council’s operations of $72k and on its scheme reserves of $31k.

Regional Income

7. Hawke’s Bay Regional Investment Company (HBRIC) Ltd Dividends ($351,000 Unfavourable)

7.1. The delay of nine months for the financial close of the RWSS to 31 March 2015 has resulted in the cashflows from Council to fund the RWSS not now being required until the months subsequent to 31 March 2015. The interest at 6% on these advances has been recalculated and this shows that the required dividend flows from HBRIC Ltd as included in the Annual Plan now being reduced by $351k.

7.2. This reduced dividend flow from HBRIC Ltd to Council will not result in Napier Port dividend monies being retained by HBRIC Ltd. A paper to Council in April 2014 established that if the RWSS financial close was achieved on 30 June 2014 that up to $22m of funding would be required by RWSS in 2014-15. Council resolved that if HBRIC Ltd needed to undertake minimal borrowings in order to provide a return on funds drawn down from Council, then Council would guarantee these borrowings. Because of the delay by nine months for the financial close of the RWSS, this borrowing by HBRIC Ltd will now not need to be undertaken.

8. Interest on Deposits ($4,000 Unfavourable)

There are four major changes that need to be outlined for changes in interest earned by Council on deposits.

8.1. The large drawdowns of funds for RWSS have been deferred to the last quarter of 2014-15 and 2015-16. As a result, more funds will be on interest earning deposit over the 2014-15 year. This deferral of payments to RWSS increases interest income by around $209,000 in 2014‑15.

8.2. Interest rates on deposits are running at around 4.7%pa rather than the 5.1% forecast in the Annual Plan. This fall reduces income by around $311,000 in 2014-15. Reduced interest rates arise from the RBNZ delaying further rises in the OCR from its level of 3.50%pa in July 2014. Rises had been expected to continue through 2014-15 to around 5.0%pa by March 2015. Current consensus views are for the OCR to remain unchanged until at least the first quarter of 2015. As a result bank deposit rates have levelled out at around 4.7% average, and are now assumed to be maintained at this level for the remainder of 2014-15.

8.3. As noted below it is now expected the $3.9 million funding for Napier Gisborne Rail (NGR) provided for in 2014-15 will not be required until 2015-16 Financial Year, which means these funds will be available for investment in bank deposits, albeit at 4.7%, rather than at 6% in NGR as included in the Annual Plan. This will improve investment interest income by around $98,000 in 2014-15.

These changes are summarised in the following table.

9. NGR Interest Funding ($117,000 Unfavourable)

9.1. Council provided $3.9 million funding for NGR in 2014-15 in the Annual Plan. Progressing the NGR proposal has slowed and it is now assumed this funding will not be required until 2015-16 Financial Year, with the result $117k of interest on this investment forecast in the Annual Plan will not now be received and the funds will be held in HBRC’s cash investments for 2014-15.

Revised Financial Position for the 2014-15 Year

10. The above interim reforecasting of budgets included in the Annual Plan 2014-15 has resulted in a reforecast operating deficit of $710k as compared to an Annual Plan operating deficit of $424k. This shows an increased deficit of $286k.

11. It is useful to consider the significance of this increased deficit when viewed against the total expenditure on Council’s operating activities. The increase in deficit of $286k represents 0.7% of the 2014-15 Annual Plan operating expenditure of $41 million.

12. Staff are exploring three avenues to address this increase in deficit and to restore the year end position to more closely align with the Annual Plan.

12.1. Continued Monitoring of Interest Rates Offered by Trading Banks

Staff will continue to ensure that best rates are achieved on funds deposited with the trading banks as any small increment in interest rates over 4.7% will have a very positive effect on Council’s operating position given the large sums currently being invested. The achievement of increased rates are constrained due to Council’s revised investment policy requiring that no more than 40% of Council’s funds are invested in any one trading bank, and also the need to invest in short term, term deposits (6-12 months’ duration) pending the decision on financial close for RWSS on 31 March 2015. Every 0.1% increase in interest rates will provide additional income of $70k.

12.2. Efficiency Reviews for 2015-25 LTP

Council has already been made aware of a review currently being undertaken by Council staff on ways to achieve efficiencies/reductions in costs going into the 2015-25 LTP. It is anticipated that some of those measures could well be implemented for the remaining six months of the 2014-15 financial year and thus result in reducing Council expenditure. Work is currently at an advanced stage in this review and it is anticipated that a report will be presented to either the November of December Council LTP workshop.

12.3. Provision to Provide for future “Risk Pool” Insurance Claims

The New Zealand Mutual Liability Risk Pool was established in 1997 to provide liability insurance for local government. This Council, along with 77 other councils are members of Risk Pool. This Council has the following insurance cover with Risk Pool:

12.3.1. Public liability.

12.3.2. Professional indemnity.

12.3.3. Harbour Board and marine wreck removal.

The reason for establishing the mutual fund was to assist the placing of this type of cover which was becoming difficult to obtain for the local government sector. The concept underpinning the mutual fund is for all Councils to make an annual contribution to each fund year and, with the support of reinsurers, provide cover in the event of claims against its members. The trust deeds provide that in any year if there is a shortfall whereby claims exceed the contributions of members and insurance recoveries, then the Board of Risk Pool may make a call on the members for that fund year. In November 2009 Risk Pool advised Council of the impact of the leaky building issue. All councils with responsibilities under the Building Act have, to varying extents, been impacted by the leaky building issue. In November 2009 the Board of Risk Pool advised Council of potential calls of $326k covering the fund years 2010, 2011 and part 2012. Council provided for the $326k and these monies have been paid to Risk Pool.

On 6 March 2012 Risk Pool further advised Council of the Risk Pool Board’s decision that, in addition to these previous calls, further calls of $364k would need to be made on this Council for the fund years 2012 (part payment), 2013 and 2014. These additional calls came about because of a relatively large number of leaky building claims, including large multi-unit claims moving through the litigation process.

The only payment made from this additional provision of $364k was a payment of $88k which pertained to the 2012 year. Risk Pool have advised that no claims are necessary for 2013 and 2014, and have just advised that the claim for 2015-16 is estimated at $48k.

During the year end 30 June 2014 Annual Report audit, Audit New Zealand discussed that the need for continuing with the remaining $228k of reserve needed to be reviewed. Therefore it is intended to discuss with Risk Pool the likelihood of any future calls being required, and it is possible that the unexpended reserve of $228k will be able to be reversed either in whole or in part in Council’s books – if so, this will have a favourable impact on Council’s operating position of up to $228k.

Heatsmart Progress Report

The programme has had an excellent start to the year and anticipates that as we enter the summer months the number of applications will reduce. Further it is expected that the annual volumes will be achieved by the end of 2014-15.

Volumes

	2014/15	2014/15	3 Months to 30 September 2014
Loan Type	Annual Plan Budget Volumes	Reforecast Volumes	Pro-Rata Reforecast Volumes	Actual Volumes	Actual over Budget (Target 37.5%)
Insulation Loans	160	160	60	45	28%
Clean Heat Loans	625	625	234	276	44%
Clean Heat Grants	1,500	1,500	563	605	40%
TOTAL	2,285	2,285	857	926	41%

Expenditure (Excl GST)

	2014/15	2014/15	3 Months to 30 September 2014
Loan Type	Annual Plan Budget $’000	Reforecast $’000	Pro-Rata Reforecast $’000	Actual $’000	Actual over Budget (Target 37.5%)
Insulation Loans	336	336	126	96	29%
Clean Heat Loans	2,123	2,123	796	958	45%
Clean Heat Grants	912	912	342	368	40%
TOTAL	3,371	3,371	1,264	1,422	42%

MANAGEMENT COMMENTS ON SCHEME BALANCES
Note Ref	Activity	Variation from Reforecast $’000 (F) or (U)	Management Comment (major variances)
1	HPFCS Drainage Schemes	308 (F)	The majority of costs are scheduled to come to charge during the second half of the year.
2	Healthy Homes	2,517 (U)	As set out in the Heatsmart progress report, the uptake for the first three months to 30 September 2014 for clean heat loans and grants are much higher in the winter months than in the summer months of each financial year. Payments therefore reflect this increased activity and will be funded from Council’s borrowing programme which is scheduled to be undertaken during December 2014.
3	Water Initiatives	201 (U)	Expenditure for water initiatives which relate to the provision of telemetry services show expenditure occurred evenly throughout the year, however revenue from charges to consent holders are charged at the end of the financial year. This scheme balance will therefore show a higher negative balance in the earlier part of the year and will reverse by year end when section 36 charges are sent out to consent holders.

SECTION B

COMMENTS ON BALANCE MOVEMENTS FROM FINANCIAL YEAR COMMENCEMENT

1. Property, plant and equipment have increased by $146,000 due to the purchase of various assets offset by depreciation.

2. Infrastructure assets have increased by $485,000 since the beginning of the year reflecting capital expenses made for the maintenance and improvement of infrastructure assets offset by depreciation.

3. Investment property has decreased by $717,000 reflecting the disposal of leasehold land properties to the leaseholders for the financial year to date.

4. Intangible assets have decreased by $91,000 due to the amortisation of computer software for three months of the year.

5. Total cash, cash equivalents and financial assets have decreased $8,734,000 since the beginning of the year reflecting the second payment to ACC paid in July for $2,838,000 and general operating expenses. Rates income was invoiced on the 1^st October 2014 and an influx of rates income will be received in the next few months.

6. Advances to Home Owners (Heat Smart) have increased by $1,008,000 reflecting the up take from the public since the beginning of the year.

7. Accounts receivable are $2,595,000 down on the balance at the beginning of the year as the balance at the beginning on the year included compliance receivables which are invoiced in June each year.

8. Advances to HBRIC Ltd have increased by $600,000 since the beginning of the year reflecting the contribution that HBRC have made to the RWSS this financial year.

9. Prepayments, accrued income and work in progress have increased by $4,536,000 compared to the beginning of the financial year. This is mainly due to $3,916,000 of accrued income for three months of rates which get invoiced in October and received over the next few months. Rates revenue is split evenly over the year and an even portion is recognised as income every month.

10. Borrowings have decreased by $514,000, being the repayments made for the year to date. New borrowing is expected to be borrowed in December 2014.

11. Accounts payable have decreased by $386,000 compared to the beginning of the financial year as there more accruals done during the year end processing and have since been paid.

12. Accrued expenses shows a decrease of $2,453,000 since the beginning of the year reflecting the payment of the second instalment to ACC paid in July for $2,838,000.

HBRIC Ltd Activities Update Report

Attachment 1

HAWKE’S BAY REGIONAL INVESTMENT COMPANY LIMITED (HBRIC Ltd)

Report to Hawke’s Bay Regional Council

29 October 2014

Summary

This report covers the following issues:

· HBRIC Ltd’s initial suggestion for investment principles as per the development of a Strategic plan as required in the Statement of Intent;

· RWSS execution – Foundation Water User Agreement & conditionality;

· HBRIC Ltd September 2014 Financial Report

· A separate paper is provided on Napier Port Director appointments.

HBRIC Ltd

HBRIC LTD STRATEGIC PLAN

It is recommended that the following staged process for developing a Strategic Plan be put in place for HBRIC Ltd:

1. Develop investment principles for agreement with Council; then progressing to

2. Specific potential opportunities to be discussed with Council to assess support; and then

3. Proceed to preliminary evaluation of the opportunities agreed with Council.

The first step is to develop a set of principles for investment which we are seeking to test with the Council.

The following Strategy Principles below are a first cut for a discussion with the Council.

1. Consistent with Council’s Investment strategy maintain and invest in in-region infrastructure assets which deliver value against triple bottom-line values.

2. Enable co-investment of Council/Local Government funds and Treaty-settlement funds in quality, long-term infrastructure investments in Hawke's Bay.

3. Reduce risk to Council of 100% ownership of significant assets by sharing investment risk with compatible long-term investors but retain controlling interest in key regional assets.

4. Where possible, harvest funds from shared ownership strategy to recycle/reinvest in new regional assets or improvement of existing assets.

5. Focus investment on an integrated Hawke's Bay supply/logistics chain with investment in supporting infrastructure.

- water supply and distribution (e.g. Ngaruroro water storage).

- integrated transport logistics for export (e.g. Port, logistics/transport hub, possibly co-invest in rail north of Napier).

- Maintain and/or invest in a modest level of forestry assets where there is positive demonstration of improved land use across the region.

- if Local Government is amalgamated, airport development including non-aeronautical revenue growth.

RWSS Execution

FOUNDATION WATER USER AGREEMENT

Councillors have asked for a discussion on conditionality in the Foundation Water User Agreement (FWUA) – a document which is in the public domain.

Our summary of those conditional clauses are as follows:

1. Scheme proceeding not satisfied:

a. Scheme does not proceed [2.1(a)], or

b. Scheme proceeds but elects not to deliver to that water user’s Delivery Point [2.1(a)], or

c. Scheme does not acheive financial close as at 30 June 2016 [2.2].

2. Relief for inability to agree Farm Environment Management Plan (FEMP) on regulatory grounds [2.4(c)/10.2]

3. Deferred Indexation clause – This special condition requires either a threshold of FWUAs exceeding 60,000,000mᵌ or HBRIC Ltd agreeing to defer the commencement date for water charge indexation until the first supply date. Note that this condition is crystallised on or before the date of Financial Close.

4. The following clauses are not conditions as such, but outline water user termination rights:

a. Deep Water User election (in part or full) on 5th anniversary of water delivery [9.2(b)].

b. Force Majeure event lasts 365 days [18.3].

c. Delivery Failure (defined term) lasts 365 days [18.4].

Condition precedent 1

Either scheme does not proceed, water is not delivered to a specific point, or the contract term lapses as financial close is not reached by 30 June 2016

Is self explanatory.

Condition subsequent 2

Relief for inability to reach agreed Farm Environment Management Plan (FEMP) on regulatory grounds

The following points are relevant:

· This clause will remain in all WUAs until such time as the consent conditions are finally determined and clear of appeals.

· Other factors that may influence the condition at a property by property level include:

- We are awaiting work being undertaken by HBRC on the Nutrient Budgeting Protocol, required by Plan Change 6 and now cross referenced in the RWSS LUC condition.

- Nutrient budgets have been generated for three additional representative farming systems. These will supplement the FEMPs prepared for the BOI process and assist in developing a representative range of potential irrigated farming systems which are interested in RWSS WUAs.

- Initial mapping has identified two sub-catchments (Kahahakuri and Papanui) where nitrate-nitrogen levels are currently above 60% in terms of the limits set in the RWSS consent conditions (when levels exceed an 80% threshold, the Scheme is required to undertake further investigation and if necessary implement mitigation options in order to ensure in-river nitrate-nitrogen levels do not exceed the consent limits). Further analysis is currently underway to determine whether any further caution is required in signing-up potential Scheme users in these sub-catchments and whether any special on-farm/Scheme mitigation measures are required to manage within the limits set, however initial indications are that the vast majority of the RWSS footprint will have no issues in this regard.

PROCESS STEPS FOR EXERCISING THE FEMP CONDITION

· Water Users have 12 months following the satisfaction of CP1 to prepare and submit a draft FEMP to the scheme operator. The parties will then work to finalise the FEMP prior to actual water delivery. If a water user has failed to obtain approval, the scheme is not obligated to deliver water despite the water user remaining liable for their water (volumetric) charge.

· If, however, the parties cannot procure an approved FEMP on the basis that the proposed activity cannot be undertaken in a commercially viable manner because of RWSS consent or other regulatory or statutory consents then the contract may be terminated. This relief is not available without the water user demonstrating that all reasonable endeavours have been used (to the standard of “Good Industry Practice,” a defined term) to finalise the FEMP.

Condition 4 (a)

Deep water election

The driver for the Deep Groundwater incentive is primarily to utilise a financial instrument to reduce groundwater abstraction (as opposed to a regulatory instrument) in order to deliver improved river flows. An added benefit is that the instrument incentivises uptake and therefore revenue in the early years of the schemes operation.

Irrigators who have signed up to take RWSS water instead of deep ground water as per their consents can elect to migrate back to deep water after the fifth year of delivery. Conversely the RWSS has the right to adjust the price up to the standard price as per the FWUA. The reality at that time will be a negotiation between the RWSS Limited Partner and individual irrigators as to the price with the price adjustment being influenced by the overall uptake profile and the cost of abstracting deep ground water which is likely to inflate faster than the price of RWSS water – the higher that uptake number is the closer the renegotiated price will be to, or the same as the ordinary price.

Conditions 4 (b) & (c)

Force majure and delivery failure

Are self explanatory.

HBRIC Ltd Financial REPORT

Table 1 sets out the September 2014 Financial Report for HBRIC Ltd.

The report sets out the actual costs incurred for both the month and the year to date against the full year budget to 30 June 2015 (operating) and project budget to 31 March 2015 (RWSS phase 2 development expenditure).

A summary of the key elements outlined in the report for the month of September is as follows:

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 October 2014

SUBJECT: Monthly Work Plan Looking Forward Through November 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” - Continued work on the Tukituki information section on the HBRC website based on Plan Change 6 - Input into development of Consultation document for LTP
CE’s office		- Continuation of background work on LTP Major new initiatives - Input in to development of Consultation Document - Attendance at Regional CEOS meeting and Zone 3 LGNZ meetings in November
Corporate Services		- LTP workshop – 25 November 2014
Civil Defence & Emergency Management	Emergency Response	- Finalise Group Structure and Resourcing Review. - Post this Review develop detailed Group Work Programme to implement Group Plan. - Commencing a review of the region’s control and coordination facilities including TLA emergency operations centres and Group emergency coordination centre.
Asset Management & Biosecurity	Coastal Biosecurity	- Two meeting of the Clifton - Tangoio Coastal Hazard Strategy Technical Advisory Group planned for November to prepare for Governance Group meeting programmed for 5 December. - Field trip planned for 10 November. - Cost benefit analysis for individual pest species under the plan review framework underway. - Cape to City trial underway. - Draft LTP budgets being developed.
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 ecological health and life supporting capacity of the Karamu Stream underway - Analysis and reporting on surface water quality data is well underway for the 5 yearly SoE reports - HAWQi coastal monitoring buoy service complete. HAWQi in transit from the States. Installation of current profiler and redeployment scheduled for early December 2014 - Communication upgrade of the Lake Tutira monitoring buoy completed and data is being received by Council and uploaded to the website in real time. Plans for webcam installation giving view of the lake underway - 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 2 November is complete. New map interface for Council’s website has been trialled and will go live with the first results for the season - Land-use/land-use change satellite 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 - Five yearly ‘State of the Environment’ reporting continuing. - Development of the steady state version of the Heretaunga Groundwater Flow Model continues - Input datasets for the transient version of the Heretaunga Groundwater Flow Model being constructed and analysed - Collection of samples for analysis of groundwater age and groundwater quality in the Papanui catchment continues - Concurrent gauging and groundwater level survey planned for the Greater Heretaunga area - Preparations are ongoing to locate a PM₁₀ monitor in Ahuriri for a period of one year.
Resource Management	Consents	- NCC application for coastal protection structure at Whakareri Ave. Coastal engineers have provided an analysis of options for further consideration. - NCC Thames Tyne stormwater consent received. Notification decision pending. - 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 has advised they have an MOU with the Ruataniwha water users group. - 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 will be sent out.
Asset Management & Biosecurity	Land Management	- A Pan-Sector meeting is scheduled for November and will be progressing the collective approach to PC6 implementation. - A meeting between Gisborne District Council & HBRC has been arranged to discuss commonalities in freshwater and land management issues, particularly with regard to where we share catchments. Opportunities for further collaboration will be explored around the East Coast Hill Country Resilience Proposal. - The Ballance Farm Awards nominee judging is occurring through November. - The second priority sub-catchment program is being initiated starting with an in-house meeting to discuss what work HBRC is or has undertaken in the Porangahau Stream and Maharakeke catchments. This will be followed up with a meeting of the key stakeholders in those areas to ascertain the broader stakeholder catchment issues.
Asset Management & Biosecurity	Engineering Open Spaces Forestry Pathways	- Asset Management Plans are receiving an external peer review. Once complete 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 December 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. - 30 year infrastructure strategy (required by the Local Government Act 2002 Amendment Bill) to be completed late 2014. - A review of the Upper Tukituki Rating Scheme has been commissioned and will commence. 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. Draft Plans have been circulated to Council. Their adoption will be 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 30 November 2014.
Strategic Development	Resource Management Planning	- Editing and publishing arrangements being made so Regional Coastal Environment Plan can be made operative on 1 November. 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. - Environment Court hearing scheduled 3-4 Dec in relation to two points in appeal by Ngati Kahungunu Iwi Inc in relation to groundwater quality objectives in Change 5 to the RRMP. In late September, Environment Court issued Consent Order settling two of four appeals in full and resolving vast majority of points in other two appeals. - Work programme for HBRC’s Strategy and Planning activities is being reassessed as part of 2015-25 LTP development. Further discussions on work programme to occur during future LTP workshops. - 2 High Court appeals and one cross-appeal to PC6 are scheduled for a hearing in early November 2014 at Wellington. Work continuing on PC6 Implementation Plan. - TANK Group last met on 14 October. Revised Terms of Reference endorsed and meeting schedule/work programme under development for Phases 2 and 3 leading to preparation of a plan change. - Setup phases underway for project funded by MfE’s Community Environment Fund ($80K) to develop criteria and methodology for the identification of ‘outstanding freshwater bodies’ in the context of the NPSFM2014. - 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. An agenda item on Callaghan Funding to be presented to the November Corporate & Strategic Committee meeting.
Strategic Development	Transport	- Changes to the bus service to improve operational efficiency started on 1 September. Public reaction to the changes has been minimal and use of the service in September was consistent with previous years, while significant cost savings have been achieved. - The draft Regional Public Transport Plan will include proposals for service improvements to be further investigated/implemented as and when funding becomes available. Expect release for public consultation in December. - Work is continuing on preparation of the Regional Land Transport Plan, which sets out the region’s funding bid for all modes of land transport for the six years from June 2015. A workshop has been held in October with the Regional Transport Committee and technical advisors, to prioritise activities for the plan. This prioritisation will help the New Zealand Transport Agency to decide how to allocate funds in a way which contributes to both national and regional objectives. A draft of the Plan will be considered by the Regional Transport Committee in November and public consultation will commence in December. The Plan must be completed by 30 April 2015. - 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 and a draft will be presented to the Governance Group in November. 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. A provisional allocation has been announced but the final decision is expected at the end of October.

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 November 2014 report.

Mike Adye

Group Manager

Asset Management

Helen Codlin

Group Manager

Strategic Development

Paul Drury

Group Manager

Corporate Services

Iain Maxwell

Group Manager

Resource Management

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

Request Status	DateReceived	Request ID	Requested By	Request Summary
Transferred	17/10/2014	OIR-14-076	Pauline Elliott on behalf of Transparent Hawke's Bay	Details of signed water user agreements, as they are signed, including name of contracting party, volume of water contracted and date signed, if any part of volume contracted at 10cents per cm3 (for users transferring from deep groundwater & right to withdraw after 5 yrs)
Active	7/10/2014	OIR-14-075	Maddie Harris, NZ Taxpayers Union	Attendance record of every councillor since 2013 election. (b) The portfolios and special responsibilities allocated to each councillor/ board member. (c) Whether any councillors/ board members also serve on any other: (i) Council; (ii) Local Board; (iii) Health Board; (iv) District Licensing Agency. (d) The year each councillor/ board member was first elected. (e) The number of years each councillor has served on the Council.
Completed	23/09/2014	OIR-14-073	Jono Brown, New Zealand Taxpayers' Union Inc.	We request details of all vehicles owned by the Council (including those covered in remuneration packages) as of todays date including the: * make, * model; * vehicle year * whether the vehicle was purchased new or second hand; * purchase price (including GST); and * vehicle age (measured by total kilometres travelled – rounded to the nearest 1,000).

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
PONL Board of Directors Chairman Appointment	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.