Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Status Comment
1	HBRIC Ltd Update	Legal review of the RWS Water User Agreements	E Lambert	Paper for consideration at December Council meeting

Follow-ups from Previous Regional Council Meetings

Attachment 1

LGOIMA Requests Received between 21 October and 19 November 2014

Status	Received	Response Due	Request ID	Requested By	Request Summary
Active	17/11/2014	12/12/2014	OIR-14-082	Derek Williams	Please provide: A. A copy of the 2005 mandatory one off assessment of the water sewage and stormwater assessment review for Otane Waipawa and Waipukerau townships. B. Details of the shock rain trauma events over loading of the wastewater treatment plants discharges to the Waipawa and Waipukerau Rivers of untreated sewage from 2005 until now. C. How long these discharges have occurred with the dates and times from 2005 to now D. Clarify how long pre 2005 the discharges of untreated sewage had been occurring and what the circumstances were D. What the volumes post 2005 are involved at the 3 plants named in question (a). E. Whether or not they were suspended screened solids or settled effluent only. F. What records of these have been kept by CHBDC and if they are required to be kept by the consenting authority HBRC and how the volume authenticity is policed by HBRC and provide copies of that recorded post 2005. G What pre discharge health warnings were given by who and who too and when H What provisions are in place to warn users of the respective rivers below the discharges. I. Provide copy of the extended 12 year period consent to discharge to the Tuki and Waipawa rivers when the consents lapsed in 2002. J. Confirm or otherwise that discharges of untreated sewage have been occurring during the entire period of the lapsed 2002 consents prior to and where there is provisions for this in the current extended consent K. Explain whether or not the untreated sewage volumes are recorded and how and by who. and provide all data on that for all 4 CHBDC plants discharging to Tuki and tributaries catchment. L. Explain where and how this is provided for in the 2008 consents for Waipawa and Waipukurau M Explain how this will be accommodated when the 12 year extended consents lapse. N. Give a detailed explanation as to why HBRC as the compliance consenting authority has condined and actively participated in these raw sewage discharge to the waipawa and yet to be confirmed more likely than not Tuki at Waipukurau with question marks over Takapau and Otane. O.. Please provide copies of the 2002 lapsed extended consents for 12 years for Waipawa and Waipukerau
Completed	6/11/2014	4/12/2014	OIR-14-081	Ngaio Tiuka / NKII	List of groundwater takes from Heretaunga Plains aquifer system and rates/volumes consented.
Active	23/10/2014	21/11/2014	OIR-14-079	Ben Craven, NZ Taxpayers Union	copies of correspondence between HBRC, Office of Treaty Settlements and iwi re Ruataniwha
Active	21/10/2014	20/11/2014	OIR-14-078	Jessie Dennis, Office of Jan Logie, Green Party MP	Provide any Climate Change Risk Assessment and/or Adaption Plans which the Council has in place
Active	21/10/2014	20/11/2014	OIR-14-077	Rick Barker	1. When were the leaks and faults first identified in the building? 2. Has this information been supplied to any or all of the other party’s to the litigation, as would be expected by the process of discovery? 3. If the information has been released to the other parties what are the reasons for withholding the from the any information request? 4. What was the date at which the issue of the buildings faults first taken up with the builder and what was the response? 5. Has this information been released to the other parity’s to the litigation and if it has what are the reasons for withholding the information from any information request? 6. What are the specific terms of the contract guarantee for the work on the Dalton Street building and what is the exact wording that Council believes relates to the leaky building work? 7. What was the deadline for advising of any weather tightness or any other possible defects specified in the contracted guarantee with the builder? 8. Has this information in questions 6 and 7 been released to the other parity’s to the litigation and if it has what are the reasons for withholding the information from any information request? 9. What steps did the Council take to have the guarantee on the building work given effect to ensuring that the guarantee covered the cost of the repairs? Please supply copies of all letters, emails and notes of phone calls. 10. Has this information in question 9 been released to the other parity’s to the litigation and if it has what are the reasons for withholding the information from any information request? 11. What advice was supplied to Council by Opus International Consultants and when on the weather tightness defects to the Dalton Street building? 12. Was this advice received in a timely manner before the expiry of the builder guarantee for the weather tightness and quality of the build? 13. If the answer to question 12 is yes, what action did the Council take to action any or all of the report from Opus International Consultants? 14. Has the information in questions 11, 12 and 13 been supplied to any or all of the other party’s to the litigation and if so what reasons are there for not supplying it as an information request? 15. Please supply a narrative that clearly sets out; the key dates in this matter and why they are important, the relevant information in any contracts the Council had in relation to the building and guarantees for quality of work, the time table of actions that needed to be undertaken should faulty or deficient work be identified, the actions that would be expected following best practice in such matters, the actual actions taken by Hawke’s bay Regional Council and a detailed explanation why HBRC is pursuing the current legal action for the recovery of the costs for remedying the deficiencies in the Dalton Street building as opposed to replying on a guarantee that would be expected with the construction of such a building.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 26 November 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 142

DP 13111

CT E3/562

- Transfer

3817

3 November 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 26 November 2014

SUBJECT: Napier-Gisborne Rail Investment

Reason for Report

1. The purpose of this report is to advise Council of KiwiRail’s offer to Council to lease the Napier-Gisborne section of the Palmerston North - Gisborne Rail line, and to update Council on the development of a business case for Council consideration.

Background

2. In its 2014/15 Draft Annual Plan Council consulted upon a proposal initiated by the NGR Shortline Rail Group (NGR) to become a shareholder in an operating company to re-establish the Napier-Gisborne rail line for rail freight, following the mothballing of the line by KiwiRail in 2012.

3. During the Draft Annual Plan consultation period it became apparent that the Government had decided not to fund the repair of the line to a ‘fit for purpose’ operating condition.

4. Following the hearing of submissions Council resolved to retain in principle provision to invest in the proposal and indicated it would consider a revised proposal and business case from the NGR establishment group. This business case would be subject to an independent peer review before Council considered investment in the line.

Potential lease

5. In July 2014 HBRC wrote to KiwiRail seeking a response on its proposal to consider leasing the rail corridor. A reply was received from KiwiRail on 17 November 2014. A copy of the KiwiRail letter is attached as Attachment 1.

6. HBRC has until 1 March 2015 to advise KiwiRail of its decision whether or not to take up the lease. In order to be in a position to make this decision HBRC needs to assess a business case based on the proposal presented by NGR.

7. A summary of the revised business proposal from NGR (as at 19/11/14) is attached as Attachment 2.

Revised business proposal

8. Key features of the revised business proposal are:

8.1. That regional interests without central government funding will fund the full cost of the “fit for purpose” repair of the line and establishment of the Napier-Gisborne Railway operating company including provision of a $3m Disaster Contingency Reserve funding facility.

8.2. The total establishment costs are $ 15m to $ 17m, including “fit for purpose” repair of the Wairoa to Gisborne section of the line washouts estimated at $ 3.5m to $ 5m, a $ 3m Disaster Contingency Reserve, purchase of locomotives and rolling stock, and working capital.

8.3. Private sector investment of $ 10m to $ 12m will complement the HBRC’s Annual Plan provision of $ 5.5m to provide the total capital required. The HBRC investment will focus on infrastructure and the private sector on the operating company.

9. HBRC is potentially committing now to test the assumptions made in the alternative proposal. This will be done through the development of the business case to be presented back to Council in February 2015.

10. Funding is required to prepare the business case and it is proposed that this be allocated from the funding provision of $5.46 million in the Annual Plan and capitalised should the project proceed.

11. The primary focus of the business case is to undertake a risk assessment of the business proposal with a road testing of the commercial model put forward around:

11.1. Expenditure required to return the line to full operating standard

11.2. Revenue projections

11.3. Operating cost risks

11.4. Private investment

12. The work required to do this in a very short time frame is being undertaken by a range of personnel including those with expertise in rail infrastructure costing, commercial and financial management and private equity.

13. The estimated cost for the preparation of the business case is $200,000. Of this the most significant cost is for an engineering design study to firm up on the costs of reconstruction of the line by a specialist in bridge engineering. This will refine the estimated costs for this work which currently sit between $3.5 and $5 million. Nearly all this work sits within Gisborne District. The cost of the engineering study is $125,000.

14. In addition HBRC intends to directly contract Nick Cornwall to report to HBRC on the revenue projections (as outlined above) and to provide strategic advice to HBRC on the proposal, including the examination of scenarios that may include the re-establishment of the full length of the line or the Wairoa-Napier component, or a staging programme

Timing

15. As outlined in Attachment 1 HBRC has to complete its business case by 1 March 2015 and respond to KiwRail. There are a significant range of tasks to negotiate and complete between now and the end of February. Updates will be provided to HBRC at regular intervals.

Decision Making Process

16. 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:

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

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

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

16.4. The persons affected by this decision are ratepayer of the Hawke’s Bay region and potentially residents of Gisborne district.

16.5. Council has previously consulted upon its proposal to invest in the Napier –Gisborne line in its 2014/15 Annual Plan. This work will assist Council to make a final decision on whether or not to proceed with the investment.

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

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

Recommendations

That Council:

2. Approves funding for the expenditure of $250,000 (to be offset against any final investment in the proposal) for the preparation of a business case on an investment in the lease of the Napier-Gisborne rail corridor to be considered by Council prior to 1 March 2015. This funding is comprised of:

2.1. $125,000 – engineering design

2.2. $75,000 – NGR personnel for business case

2.3. $50,000 – strategic advice.

Liz Lambert

Chief Executive

Attachment/s

1	Letter to HBRC from KiwiRail
2	Revised business proposal

Revised business proposal

Attachment 2

Napier-Gisborne Railway

Shortline Establishment Group

Recommended Revised Proposal

HBRC 2014-15 Annual Plan

KiwiRail Lease Offer & Follow up from 18 June Workshop Meeting

18 November 2014

Revised Proposal

The Council has resolved in response to submissions on the Annual Plan to retain in principle the investing in the restoration of the Napier/Gisborne rail line, and indicated it would consider a revised proposal and business case from the NGR establishment group, with the funding from HBRC proposed as a conditional investment contribution of approximately $ 5.5m.

The 18 June Workshop Meeting of Councillors with the Napier-Gisborne Railway Shortline Establishment Group covered the business case and made a number of recommendations and suggestions on the way forward for Council. A number of the key recommendations were in the NGR Group’s written submission and mentioned by Council officers in their Comments and Proposals by Staff Report on submissions to the Draft Annual Plan.

Revised Proposal approach summarised as follows:

1. That regional interests without central government funding will fund the full cost of the “fit for purpose” repair of the line and establishment of the Napier-Gisborne Railway operating company including provision of a $ 3m Disaster Contingency Reserve funding facility.

2. The total establishment costs are $ 15m to $ 17m, including “fit for purpose” repair of the Wairoa to Gisborne section of the line washouts estimated at $ 3.5m to $ 5m, a $ 3m Disaster Contingency Reserve, purchase of locomotives and rolling stock, and working capital.

3. Private sector investment of $ 10m to $ 12m will complement the HBRC’s Annual Plan provision of $ 5.5m to provide the total capital required. The HBRC investment will focus on infrastructure and the private sector on the operating company.

HBRC priority focus for the use of the Council’s $ 5.5m investment:

1. Obtaining a conditional lease of the line from KiwiRail (Government) (est. $30,000 pa) as soon as possible in response to the offer from KiwiRail to lease the line to the Hawke’s Bay Regional Council.

· This is essential to provide the certainty required by private sector investors to then rapidly commit their funds to the establishment of the Napier Gisborne Railway operating company.

2. Providing establishment seed funding of $ 250,000 from the $ 5.5m to enable completion by the 1 March 2015 deadline set by KiwiRail of the business case that will include the key terms for the lease and ancillary operating agreements with Napier Gisborne Railway Ltd as the railway operator. These costs will include surveying and associated engineering design work sufficient to clearly firm up the costs for the wash out repairs and complete other associated railway establishment planning activities including finalising of private sector funding commitments.

· This detailed planning work will examine options and establish the actual cost for the repair of the line and the establishment of operations. This planning work needs to get started immediately to ensure it is completed in time.

· Noted that these infrastructure repair and project management planning activities are similar to the Council’s normal floodbank protection activities and thus considered relatively straightforward tasks for the Council to undertake.

· This detailed planning work will quantify costs and minimise risks for the next stages of planned establishment work.

3. Planning for the Repair of the washouts and reinstatement of the railway line to Gisborne to “fit for purpose” operating condition.

· It is proposed that HBRC contract railway project management and engineering contractors through the NGR Group who have already undertaken a considerable amount of preliminary planning work and are well connected with KiwiRail preferred contractors.

· There is considerable goodwill amongst suitable contractors who are interested in undertaking this regional work on favourable rates.

· Estimated cost is within the range of $ 3.5m to $ 5m with a lower cost if the work is over a longer rather than short period. A mix of contractors will be used across the multiple sites, which will provide competitive pressure to keep costs contained.

· Need to do this over the late spring early summer period when dry conditions prevail.

4. Sub leasing the line to the Napier Gisborne Railway Ltd operating company, with the timing of this expected to parallel the capitalising of the company by private sector investors.

· The terms of this sub lease are expected to include that the operating company will maintain the track to a good “fit for purpose” condition, thus minimising the exposure of the Council to any risk.

· It is proposed that the sub lease annual rental fee will be based on the finance cost of 6% of the HBRC funds used to repair the line, with this annual lease fee being up to $ 300,000 pa depending on the final cost of line repairs for HBRC.

· It is noted that this structuring of the use of the HBRC investment funds means the investment for HBRC is minimal, with the main provision needed being some form of guarantee that the annual lease fee is able to be paid by the sub lessee, the NGR operating company.

· It is further noted that this arrangement minimises the extent to which the HBRC will require detailed external review of the business case plans of the NGR operating company except for due diligence to ensure that the annual lease fee is able to be paid.

5. Establishment of a $ 3m Disaster Contingency Reserve facility – noting that there are a number of financial forms that can be used to provide this facility.

· This has minimal financial risk for HBRC.

Rail Operations Timing

· Wairoa log hub trains being able to start from mid 2015.

· Gisborne trains from late 2015

· Napier Cruise Ship Holt Forest trains start summer 2016-17

· For these targets to be achieved the following timings are critical:

o Operating Licence required to be issued from NZTA by June 2015

o Locomotives acquired from KR to be on site by June 2014 (will be required for drop out reinstatement)

o Critical staff to be recruited to commence duties pre May 2015

o Lease of facilities to be put in place by May 2015

o Wagon Bogies / Wagons to be ordered April 2015 (allow 3 to 6 months delivery depending if able to acquire with bogies from KiwiRail or import bogies)

o Track Inspections required (April 2015)

o Bridge inspections (April 2015)

o Interoperability agreements(February 2015)

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 26 November 2014

SUBJECT: Recommendations from the Corporate and Strategic Committee

Reason for Report

1. The following matters were considered by the Corporate and Strategic Committee on 12 November 2014 and are now presented to Council for consideration and approval.

Decision Making Process

2. These items have all been specifically considered at the Committee level.

Recommendations

That Council:

1. Agrees that the following 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.

Significance and Engagement Policy

2. Adopts the (attached) Significance and Engagement Policy, including amendments agreed at the 12 November 2014 Corporate and Strategic Committee meeting.

Hawke's Bay Regional Council Forest Assets

3. Endorses the proposed ongoing maintenance regime for the HBRC forest estate.

4. Requests a paper within the next year, establishing values other than commercial, that demonstrate the justification for Council maintaining this investment and projects the ongoing programme beyond 10 years to cover the rotation period of the range of species.

2015 Proposed Schedule of Council and Committee Meetings

5. Adopts the 2015 Schedule of Meetings (attached) as proposed.

Reports Received

6. Notes that the following reports were received at the Corporate and Services Committee meeting:

6.1 Follow-ups from Previous Corporate and Strategic Committee meetings

6.2 Notice of Motion

6.3 Napier Port Presentation

6.4 Implications of Ruataniwha Water Storage Scheme for Other Council Work Programmes

6.5 Callaghan Research and Development Fund and Update on Wairoa Primary Sector Opportunities

6.6 The Big Six Community Engagement Feedback

6.7 Minor Items Not on the Agenda

6.8 November 2014 Public Transport Update

Liz Lambert

Chief Executive

Attachment/s

1	HBRC Significance & Engagement Policy
2	2015 Schedule of Council & Committee Meetings

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 26 November 2014

Subject: Draft Regional Public Transport Plan 2015-25

Reason for Report

1. This report is to consider the draft Regional Public Transport Plan (RPTP) and approve its release for public consultation.

Financial and Resource Implications

2. Funding for the proposed levels of service will be considered by the Council as part of the Long Term Plan development and is consistent with current expenditure on public transport services.

Background

3. The Land Transport Management Act 2003 (LTMA) requires each regional council that intends to subsidise public transport to prepare an RPTP which must be reviewed at least every three years.

4. Although these plans have been required for some time, 2013 legislation amendments represent a fundamental shift in the way in which public transport services are planned and contracted. The Plan must incorporate the requirements of the Public Transport Operating Model (PTOM). PTOM is a combination of planning, funding, procurement, partnering, and incentivising tools which aim to help regions and public transport operators build stronger working relationships. PTOM is expected to improve value for money in public transport over time.

5. Under PTOM, all public transport services must be allocated into units, which must be contracted by the regional council unless they meet certain criteria for exemption. This means that even units which are able to be provided commercially (i.e. with no public subsidy) must be contracted by the Regional Council. Units are defined as one or more public transport services which the Council has identified as integral to the public transport network, that operate on the entire length of one or more routes specified in the RPTP and that include all the services operating to a timetable on that route.

6. Another key facet of PTOM is the Financial Incentive Mechanism (FIM). The FIM is a means of sharing with the contractor in the financial benefits of any growth in patronage or revenue. The use of a FIM is required under PTOM.

7. Other concepts include annual joint business planning (between Council and operators) and revised procedures for the procurement of public transport services.

8. The purpose of the RPTP is set out in the LTMA and is to provide:

8.1. A means for encouraging councils and operators to work together in developing public transport services and infrastructure

8.2. An instrument for engaging with the public in the region on the design and operation of the public transport network

8.3. A statement of –

8.3.1. The public transport services that are integral to the public transport network; and

8.3.2. The policies and procedures that apply to those services; and

8.3.3. The information and infrastructure that support those services.

Development of the draft RPTP

9. The process for development of the RPTP commenced with a review of the existing public transport network to identify its strengths and weaknesses.

10. An early phase of public consultation in mid 2013 produced many requests and suggestions for service improvements from bus users and non-users alike, and this feedback was also taken into consideration. As early consultation with key stakeholders is a legislative requirement and a year had elapsed since this consultation, we contacted all key stakeholders again in August 2014 to ensure that their views had not changed.

11. We also held individual meetings with bus companies who may have an interest in tendering for the bus service in the future. These meetings were to discuss how the Hawke’s Bay services should be divided into units, what type of financial incentive mechanisms would help to encourage true partnership, and a number of other operational concepts. Early and full involvement of operators in making such decisions is also a requirement of the LTMA.

12. The draft RPTP proposes one unit for the Hawke’s Bay bus services. All bus companies who gave us feedback on this were in agreement that the services should remain as one unit.

Plan Direction

13. The Plan proposes to largely continue operating public transport services at the level of service in place during 2014-15. There has been significant investment in additional bus services by both the New Zealand Transport Agency and Hawke’s Bay Regional Council over the last five years; the improvements undertaken are described in Section 2 of the draft Plan. This investment has resulted in very good patronage growth but has also significantly increased the cost of services and reduced the proportion of the cost which is covered by fares. Timetable alterations in September 2014 have improved the operating efficiency of the service and reduced its cost without significantly affecting patronage. It is suggested that the service now needs a period of consolidation and careful analysis to see whether further efficiencies can be made and how the resulting cost savings could be reinvested.

14. The early consultation rounds have produced a number of requests for service enhancements which are listed in Section 3. The draft Plan seeks public feedback on these proposals, and those rated as highest priority will be scheduled for investigation during the next three years. If funding becomes available through greater efficiencies or patronage growth, it is proposed that this would be reinvested in high priority improvements.

15. The key focus of public consultation will therefore be

15.1. Is the core public transport network suitable for the region at this time?

15.2. Are the proposed policies for managing public transport in Hawke’s Bay appropriate?

15.3. Which of the proposed service improvements are highest priority and why?

15.4. Are there other service improvements which should be investigated?

The Regional Transport Committee

16. The Regional Transport Committee has considered the draft RPTP and requested three minor changes:

16.1. the addition of expenditure detail to the graph in Section 2.6

16.2. clarification of the wording of Policy 31

16.3. the addition of Policy 38

Consultation Process

17. Subject to council approval, the draft RPTP will be released for public consultation in early December, with submissions closing in late January 2015.

Decision Making Process

18. 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:

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

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

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

18.4. The persons affected by this decision are all urban ratepayers of the region.

18.5. Options that have been considered include other levels of public transport service and other policies for the management of the public transport network.

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

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

Recommendations

That Council:

2. Adopts the draft Regional Public Transport Plan 2015-25 for public consultation

Anne Redgrave

Transport Manager

Helen Codlin

Group Manager

Strategic Development

Attachment/s

Draft Regional Public Transport Plan 2015-25

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 26 November 2014

Subject: Hawke's Bay Local Government Reorganisation - Update November 2014

Reason for Report

1. The Local Government Commission (LGC) has been considering options for the reorganization of local government within Hawke’s Bay in response to a proposal presented to it by “ A Better Hawke’s Bay” (ABHB)

2. The LGC has previously issued a draft proposal in November 2013, and heard submissions on their draft proposal earlier this year.

3. The LGC has now added an interim step to the formal process of reorganization to update and inform councils and other interested parties. This interim step is the production of a position paper to explain how the proposed reforms could change if the LGC decides to proceed through further stages. The position paper can be viewed on the Hawke’s Bay Regional Council’s website:

http://www.hbrc.govt.nz/Hawkes-Bay/regional_development/Pages/prosperity-study.aspx

4. The LGC is not calling for submissions as result of this position paper, and therefore this paper is for Council information only.

LGC’s revised position

5. Key features of the LGC’s revised position, as covered in the position paper, are:

5.1. A unitary authority for Hawke’s’ Bay covering Napier City, Wairoa, Hastings and central Hawke’s Bay Districts and take over responsibilities of the HBRC

5.2. Will exclude areas of Rangitikei and Taupo districts currently in Hawke’s Bay region but will transfer regional council functions for both those areas to the Hawke’s’ Bay Council

5.3. An enlarged council with a governing body of a mayor and 18 councillors (doubled from nine) elected as follows:

5.3.1. Wairoa: 2 councillors

5.3.2. Ngaruroro: 2 councillors

5.3.3. Napier: 6 councillors

5.3.4. Hastings: 6 councillors

5.3.5. CHB: 2 councillors

5.4. Five local boards (rather than community boards as in the draft proposal) with membership as follows:

5.4.1. Wairoa: 6 elected members and 2 appointed members with a chairperson elected by the board

5.4.2. Ngaruroro: 7 elected members and 2 appointed members with a chairperson elected by the board

5.4.3. Napier: 9 elected members and 2 appointed members with a chairperson elected by the board

5.4.4. Hastings: 9 elected members and 2 appointed members with a chairperson elected by the board

5.4.5. Central Hawke’s Bay: 6 elected members and 2 appointed members with a chairperson elected by the board

5.5. The local boards will be responsible and democratically accountable to their local communities for the maximum possible range of services and functions

5.6. A Maori Board will provide advice to Hawke’s Bay Council and assist it meet its statutory obligations

5.7. A Hawke’s Bay Regional Planning Committee with a role and membership in line with the committee to be entrenched in legislation as part of Hawke’s Bay treaty settlements

5.8. Council headquarters to be in Napier, with any future review to be undertaken by the Council rather than the Transition Board, and with more emphasis on local access to council services through establishment of area offices and retention of the service centre in Waipukurau library.

6. The most significant change from the draft proposal is the establishment of local boards, rather than community boards. The LGC had signalled this potential change should legislation be amended to provide for local boards in areas such as Hawke’s Bay. The required legislation was passed prior to the General Election.

7. The governing body has decision-making responsibility in respect of:

7.1. Regulatory responsibilities, duties and powers

7.2. Transport networks and infrastructure

7.3. Non-regulatory activities allocated to the governing body

7.4. Establishment and maintenance of the capacity of Hawke’s Bay Council to provide services

7.5. The governance of council-controlled organizations

7.6. The financial management of Hawke’s Bay Council

7.7. Reaching agreements with each local board on local activities

8. Each local Board is responsible for the non-regulatory activities allocated to it by the Hawke’s Bay Council and for presenting the interests and preferences of its local board area to the governing body. To help it do this each local board must develop a local board plan that sets out the priorities and preferences of its local community in respect of the level and nature of local activities to be provided over the next three years. This then feeds into the Hawke’s Bay Council long-term plan.

9. Each local board plan is the basis of a three-year agreement with the governing body.

10. The governing body (the Hawke’s Bay Council) will be required to adopt each local board’s funding policy to provide certainty and predictability about the levels of funding for local boards for the three year period.

Next Steps

11. The LGC is proposing to undertake a survey during the first quarter of 2015 to test support for its revised position. It also plans to circulate information more widely to Hawke’s Bay households.

12. Once this interim step is complete the LGC will decide whether to issue a Final proposal of some sort or to leave the status quo arrangements in place. The LGC anticipates releasing this decision in March-April 2015.

Decision Making Process

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

Recommendation

1. That the Council receives the “Hawke’s Bay Local Government Reorganisation- Update November 2014” report.

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 26 November 2014

SUBJECT: Monthly Work Plan Looking Forward Through December 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		- Continued work on the Tukituki information section on the HBRC website based on Plan Change 6 - Development of Consultation document for LTP
CE’s office		- Continuation of LTP development - Development of LTP Consultation Document - Attendance at Regional Sector Group meeting; HBRC Dairy Compliance Awards - Organisation of strategy session for HBLASS
Corporate Services		- Continued LTP development for workshop – 18 December 2014. - 5 month financial report to December or January Council meeting.
Civil Defence & Emergency Management	Emergency Readiness & Response Reduction	- Finalise Group Structure and Resourcing Review. - In conjunction with 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 - Planning commenced for East Coast LAB - multi-agency community resilience initiative, with paper go to the 10 December E&S Committee meeting
Asset Management & Biosecurity	Coastal Biosecurity	- Clifton - Tangoio Coastal Hazard Strategy Governance Group meeting programmed for 5 December. Technical Advisory Group planned for 11 December. - Cost benefit analysis for individual pest species under the plan review framework underway. - Cape to City trial underway. Briefing paper seeking Council commitment to ongoing funding in the broader project to be brought to the E&S Committee in December.
Resource Management	Resource Use [Compliance]	- A navigational safety education programme will be delivered in HB schools before the summer holiday break. A student with a strong water safety background has been contracted to deliver alongside a similar person from Coastguard. - The 2^nd annual Dairy Awards will be presented on 11 December, with 21 Gold Awards -up from the 16 Gold Awards presented last year
Resource Management continued	Science	- The weekly Recreational Water Quality monitoring program has commenced and will run through to mid‑March. Public data provision supported by a new look website - Analysis and reporting on the ecological health and life supporting capacity of the Karamu Stream progressing well – report to be finalised early in 2015 - Analysis and reporting on surface water quality data is well underway for the 5 yearly SoE reports - HAWQi coastal monitoring buoy service complete. HAWQi arrived from the States. Installation of current profiler and redeployment scheduled for first week of December 2014 - Lake process modelling of Lake Tutira by the University of Waikato is progressing well - 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 continues, with summary report contents now in draft form - Wetland identification continues - Compilation of Mohaka Catchment characterisation report continues - 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 decision on how they wish to proceed still pending. - NCC Thames Tyne stormwater consent application notified. Submissions close 2 December. None received to date. - TAG application for an oil exploration bore at Boar Hill still on hold pending information. - Applications from HBRIC, Bostocks and recently Te Awahohonu Forest Trust (Gwavas Station) for Ruataniwha “tranche 2” water (exceeding the 15 million cubic metre annual volume limit). First two applications are currently on hold. - Ruataniwha groundwater consent holders meeting held to assign annual volumes on consents. (In conjunction with meeting addressing Plan Change 6.) Advice sent providing initial annual volume determined using Aqualinc Irricalc methodology. Follow up invitation provided if consent holders want a review of the initial annual volumes. - Twyford Global consent applications received and being processed, with Notification decisions pending. - Panpac application to extend their outfall from 440m to 2,000 m off shore in process, with Notification decision pending - CHBDC, Waipukurau and Waipawa wastewater treatment consents currently subject to review and change of condition applications. Not yet reviewed to align with Plan Change 6 because the Plan Change is not yet operative.
Asset Management & Biosecurity	Land Management	- A meeting with the horticulture sector will be focussing more specifically around implementation issues and challenges for the sector with regard to PC6 implementation. - Workshop developing on improved framework for monitoring, evaluating, reporting on behavioural change in land users planned - Hill country erosion fund application to be lodged prior to the end of the month.
Asset Management & Biosecurity	Engineering Open Spaces Forestry Pathways	- 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 progressed. Aiming for completion early 2015. - Meeting with Onga Onga community re flood mitigation programmed for 4 December. - Meeting with Fish and Game and DoC to be arranged re Wairoa drain spraying. - Gravel resource inventory and Gravel demand studies to be progressed. - 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 10 December. - 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 early in 2015. - CHB pathway construction continuing. Official opening programmed for 30 November 2014. - Cycle governance group meetings have been programmed for 2015.
Strategic Development	Resource Management Planning	- Regional Coastal Environment Plan and Change 1 to RRMP made operative on 8 November 2014. - At same time as operative RCEP was published, RCEP and RRMP were amended without needing to follow formal Schedule 1 RMA steps. Those amendments inserted: a) interim policies as directed by Policies A4 and B7 of the 2014 NPS for Freshwater Management; and b) 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 NKII in relation to groundwater quality objectives in Change 5 to the RRMP. Parties have already exchanged expert evidence prior to the hearing. - 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. - Two High Court appeals and one cross-appeal to Plan Change 6 were heard 10-12 November at Wellington. Court’s decision anticipated in February 2015. 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 continuing 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. - Regional Biodiversity Strategy has been drafted and workshops are planned at several venues throughout the region in early December. Feedback on Draft Strategy to be considered Dec-Jan. - Hearings of submissions on proposed Hastings DC’s district plan commenced and scheduled to continue on topic by topic throughout rest of 2014. - Napier CC yet to schedule hearings for submissions on its District Plan Change 10.
Strategic Development	Economic Development	· Scope use of Te Tumu Paeroa-managed Hereheretau Station for wise land use project in Wairoa. · Monitor progress of Ata Milk market validation study in Wairoa. · As required and where appropriate, support RWSS workstreams. · Participate on EDANZ board. · Finalise Business Hawke’s Bay KPI framework · Continue supporting BHB’s Regional Economic Development Strategy refresh. · Promote and support an initiative to produce a HB Maori Economic Development Strategy – aligned with REDS
Strategic Development	Transport	- Recent changes to the bus service continue to work well and have improved operational efficiency. - The draft Regional Public Transport Plan will be released for consultation in December. The draft plan recommends a period of consolidation for the region’s bus services but highlights a number of requested improvements which may be investigated as and when funds are available. - The Regional Transport Committee has recently approved the draft Regional Land Transport Plan for release for public consultation. The Committee prioritised major activities for the plan and this prioritisation will help the New Zealand Transport Agency to allocate funds in a way which contributes to both national and regional objectives. The Plan must be completed by 30 April 2015. - The draft Regional Cycle Plan is progressing well, with an infrastructure section now added. It is hoped to have the draft plan signed off by the governance group by late January, and it will then be forwarded to member organisations for their consideration. - Changes to financial assistance rates by the New Zealand Transport Agency have now been confirmed. HBRC will receive the following rates for all activities: 2015-16 53% 2016-17 52% 2017-18 51% Thereafter 51% These rates will have implications for the funding of HBRC transport activities from 2015-16 and will need to be considered by Council during the preparation of the Long Term Plan.

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 December 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.

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Appointment of Napier Port Director	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.

Item	Topic	Councillor / Staff
1.
2.
3.
4.
5.