Agenda of Regional Council Meeting

Meeting of the Hawke's Bay Regional Council

Date: Wednesday 29 April 2015

Time: 9.00 am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Subject Page

1. Welcome/Prayer/Apologies/Notices

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Regional Council Meeting held on 25 March 2015

4. Matters Arising from Minutes of the Regional Council Meeting held on 25 March 2015

5. Report from the Maori Committee Meeting held 21 April 2015

6. Follow-up Items from Previous Regional Council Meetings 3

7. Call for any Minor Items not on the Agenda 11

Decision Items

8. Affixing of Common Seal 13

9. Recommendations from the Corporate & Strategic Committee 15

10. Local Governance Statement 2015 Update 17

11. Proposed Regional Land Transport Plan 2015-25 53

12. Proposed Regional Public Transport Plan 2015-25 57

13. Appointment of Replacement Councillor Representative on the Maori Committee 61

Information or Performance Monitoring

14. HB Tourism April 2015 Quarterly Update Report (9.15am) 63

15. Annual Plan Progress Report for the first Nine Months of the 2014-15 Financial Year and Reforecasting to 30 June 2015 75

16. HBRIC Ltd April 2015 Update 157

17. Monthly Work Plan Looking Forward Through May 2015 163

18. Chairman's Monthly Report for April 2015 (to be tabled)

19. Minor Items not on the Agenda 171

Decision Items (Public Excluded)

20. 159 Dalton Street Building Remediation Settlement 173

Follow-ups from Previous Regional Council Meetings

Attachment 1

Follow-ups from previous Regional Council Meetings

Meeting Held 25 March 2015

	Agenda Item	Action	Person Responsible	Status Comment
1	SoE five yearly summary report	Detail of which heavy metals identified as increasing in Ahuriri Estuary and possible options for reversing that trend	I Maxwell	Details sent to council via email (following) on 21 April 2015
2	Monthly work plan	Provide a copy of Council’s submission to the HDC district plan to councillors	H Codlin	Email (following) sent to Councillors 7 April 2015
3	Minor Matters not on the Agenda	Investigate options to allow members’ attendance at meetings via video link	L Lambert/ L Hooper	LGA amendment (sch7 cl 25A) allows Audio and/or AudioVisual attendance if provided for in Council’s Standing Orders. Paper will go to June Corporate & Strategic Committee for consideration.

Ref follow-up item 1

Sent: Tuesday, 21 April 2015 8:38 a.m.
To: Rex Graham; Rick Barker; Peter Beaven; Tom Belford; Alan Dick; Debbie Hewitt; Dave Pipe; Christine Scott; Fenton Wilson
Subject: Heavy Metals in the Ahuriri Estuary

Following up a question at the last council meeting in relation to heavy metals in the Ahuriri Estuary, I have caught up with key people in the science team and they have advised the following.

At three out of the four sites in the Ahuriri, (Ahuriri A, B, and D) metal concentrations appear to be reducing. Ahuriri D is at the mouth of the Tyne street drain. At site Ahuriri E, upstream of the Westshore Bridge, concentrations of Arsenic; Cadmium; Chromium; Copper; Nickel and Zinc appear to be increasing, nutrients are decreasing at all sites. This trend for Ahuriri D should be treated with caution since it is only for five years worth of data. All concentrations are still very low and are well below guideline levels.

What can we do about it? A good discussion point. We really need more research to understand where this contamination may be coming from; a longer data set to see if it is a real trend; testing for other contaminants to see what activities this contaminant may be associated with. The coastal team is looking at options to better understand this and we are going to look at options like Envirolink funding to run targeted investigations to try and determine the source.

Please let me know if you have any questions.

Cheers

Iain

Iain Maxwell│Group Manager Resource Management

HAWKE'S BAY REGIONAL COUNCIL

Ref follow-up item 2

From: Gavin Ide
Sent: Tuesday, 7 April 2015 9:29 a.m.
To: Christine Scott; Alan Dick; Tom Belford; Debbie Hewitt; Fenton Wilson; Rex Graham; Peter Beaven; Dave Pipe; Rick Barker; Mike Mohi
Cc: Helen Codlin; Liz Lambert; Diane Wisely
Subject: Action Item from 25/3/15 Council meeting - HBRC submission on Proposed Hastings District Plan

Good morning all,

As per an Action Item arising from last month’s Council meeting, below is a link to HBRC’s submission on the proposed Hastings District Plan. That submission, HBRC’s further submission on the HDPlan and several recent submissions on various other proposals are online here:

http://www.hbrc.govt.nz/About-your-Council/Who-we-are/Pages/hbrc-submissions.aspx

A quick keyword search for ‘reverse’ ‘sensitivity’ in the HDPlan submission and further submission returned no results. In relation to rezoning proposals, reverse sensitivity issues would be one of many matters indirectly referenced back to provisions in the RPS and Chapter 3.1B (re Change 4 HPUDS stuff).

I understand this Action Item arose from discussion about odours from Te Mata Mushrooms. FYI, I have attached an internal email from Belinda Riley which provides some brief commentary to our Compliance team on residential developments in Arataki vicinity.

Kind regards,

Gavin Ide
Manager Strategy and Policy
Hawke's Bay Regional Council
159 Dalton Street | Private Bag 6006 | Napier 4142

P 06 833 8077 | M 0275 888 901 | F 06 835 3601

gavin@hbrc.govt.nz | www.hbrc.govt.nz

cid:image001.png@01CFDF27.3F271C00

SAFEGUARDING YOUR ENVIRONMENT + KAITIAKI TUKU IHO
F facebook.com/hbregionalcouncil | T twitter.com/#!/hawkesbayrc

L linkedin.com/company/hawkes-bay-regional-council | Y youtube.com/hbregionalcouncil

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

Please consider the environment before printing this e-mail

From: Belinda Riley
Sent: Tuesday, 10 February 2015 2:40 p.m.
To: Mike Alebardi
Subject: Arataki extension

Hi Mike, further to our discussion last week – here is a brief summary of the provisions in the RPS with regards to reverse sensitivity.

Reverse sensitivity is a key theme in the RPS with a number provisions aiming to recognise situations where reserve sensitivity issues may arise and address their effects before the activity or development occurs. Reverse sensitivity is specifically addressed in Chapter 3.5 of the RPS which manages the effects of conflicting land use activities. In particular Policy 6 sets out an approach to avoid potential problems from incompatible land uses being located in close proximity to each other.

Arataki extension

The Arataki extension has been identified as an ‘appropriate greenfield growth area’ in Policy 4.3 the RPS. This indicates the area it has passed a preliminary assessment deeming it potentially suitable for residential development, further to more assessment. While the Arataki extension has passed the prelim assessment of residential development suitability through the HPUDS process, a fuller and more rigorous assessment in accordance with Policies UD10.1, UD10.2, UD10.3 and UD12 still needs to be undertaken to determine their appropriateness. With the recent odour issues from Te Mata Mushrooms Policy UD12(l), along with Chapter 3.5 of the RPS, should be given particular regard to when considering any rezoning requests.

Cheers

Belinda

Belinda Riley
Senior Planner
Hawke's Bay Regional Council

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

Subject: Affixing of Common Seal

Comment

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 2

DP 468161

CT C3/427

- Agreement for Sale and Purchase

- Transfer

1.1.2 Lot 37

DP 921

CT B3/1156

- Agreement for Sale and Purchase

- Transfer

1.1.3 Lot 33

DP 13898

CT F4/410

- Agreement for Sale and Purchase

1.1.4 Lot 54

DP 13216

CT E4/374

- Agreement for Sale and Purchase

3835

3838

3836

3837

3839

3840

23 March 2015

15 April 2015

25 March 2015

17 April 2015

21 April 2015

1.2

Staff Warrants

1.2.1 David Carruth

(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)

3841

23 April 2015

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 April 2015

SUBJECT: Local Governance Statement 2015 Update

Reason for Report

1. The purpose of this paper is to present the 2015 update of Council’s Local Governance Statement (the Statement) to Council for approval and adoption.

2. Section 40 of the Local Government Act 2002 (the Act) requires that each local authority must prepare and make publicly available a Local Governance Statement within six months after each triennial election of the members of the local authority.

3. Further, section 40(3) of the Act states “a local authority must update its governance statement as it considers appropriate” and Council resolved, at its meeting on 17 December 2003 to “Delegate to the Chief Executive the requirement and authority to update this Statement on an annual basis”.

4. Due to the ‘interim’ nature of the yearly updates subsequent to the ‘triennial’ publication, it was further proposed and agreed that those yearly updates would be made available on Council’s website only. Therefore the updated 2015 version of the Local Governance Statement will be published on Council’s website only.

Contents of the Local Governance Statement

5. A Local Governance Statement is a collection of information about the processes through which the Council engages with its community, how the Council makes its decisions, and how citizens in the region can influence those processes. Its purpose is to help support the purpose of local government by promoting local democracy by providing the public with information about ways to influence local democratic processes.

6. Specifically, the Act requires:

“40 Local governance statements

(1) A local authority must prepare and make publicly available, following the triennial general election of members, a local governance statement that includes information on—

(a) the functions, responsibilities, and activities of the local authority; and

(b) any local legislation that confers powers on the local authority; and

(ba) the bylaws of the local authority, including for each bylaw, its title, a general description of it, when it was made, and, if applicable, the date of its last review under section 158 or 159; and

(c) the electoral system and the opportunity to change it; and

(d) representation arrangements, including the option of establishing Māori wards or constituencies, and the opportunity to change them; and

(e) members' roles and conduct (with specific reference to the applicable statutory requirements and code of conduct); and

(f) governance structures and processes, membership, and delegations; and

(g) meeting processes (with specific reference to the applicable provisions of the Local Government Official Information and Meetings Act 1987 and standing orders); and

(h) consultation policies; and

(i) policies for liaising with, and memoranda or agreements with, Māori; and

(j) the management structure and the relationship between management and elected members; and

(ja) the remuneration and employment policy, if adopted; and

(k) equal employment opportunities policy; and

(l) key approved planning and policy documents and the process for their development and review; and

(m) systems for public access to it and its elected members; and

(n) processes for requests for official information.”

2015 Update Changes

7. The Committee structure and membership information has been amended, to include the Clifton to Tangoio Coastal Hazard Strategy Joint Committee and the Finance, Audit & Risk Sub-committee.

8. Information relating to public consultation has been updated with Council’s Significance and Engagement Policy.

9. Dates have been updated where required, including Council adoption of amended Code of Conduct 30 July 2014, August 2014 adoption of FPP electoral system for 2016 elections, and Key Approved Planning and Policy Documents section.

10. There were also minor wording and grammatical amendments.

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 Local Governance Statement 2015 Update for publication to the Regional Council website.

Leeanne Hooper

Governance & Corporate Administration Manager

Liz Lambert

Chief Executive

Attachment/s

2015 Updated HBRC Local Governance Statement

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

Subject: Proposed Regional Land Transport Plan 2015-25

Reason for Report

1. This report is to discuss and approve the proposed Regional Land Transport Plan 2015-25 (RLTP, the Plan) for submission to the New Zealand Transport Agency.

Financial and Resource Implications

2. The RLTP sets out the region’s funding requests to the NZ Transport Agency for land transport for the next six years, including for HBRC’s transport activities which are included in the draft Long Term Plan. Any changes resulting from the LTP consultation process will be subsequently communicated to the Agency.

Background

3. The Land Transport Management Act 2003 (LTMA) was amended in 2013 and now requires regional councils to prepare and approve an RLTP every six years. This plan replaces the Regional Land Transport Strategy and the Regional Land Transport Programme and sets the strategic direction for land transport for the region for at least ten years, as well as forming the region’s funding application to the New Zealand Transport Agency (the Agency) for six years.

4. The full requirements for an RLTP are contained in Sections 14 and 16 of the LTMA.

5. The Plan sets out the region’s highest priorities for transport activities over the next six years. This prioritisation will help to inform NZTA’s allocation of transport funds to the region

RLTP Development

6. Under Section 16(1) of the LTMA, the Plan must set out the region’s land transport objectives, policies and measures for at least ten financial years and must be consistent with the Government Policy Statement on Land Transport 2015-16 -2024-25 (GPS 2015).

7. The strategic direction for GPS 2015 is for economic growth and productivity, road safety and value for money.

8. As 80% of the National Land Transport Fund for 2015-18 is already committed to existing projects, there is limited discretionary funding available. A key focus is therefore on maximising the value of existing investments, i.e. making the best possible use of the existing network and services.

9. Preparation of the draft RLTP therefore commenced with confirmation of the region’s strategic transport priorities. These were identified at an Investment Logic Mapping workshop held in July 2014, after which the strategic priorities, key objectives and policies for the Plan were agreed at the August RTC meeting. These are outlined in Sections 6 and 7 of the RLTP.

10. In September 2014, all approved organisations in the region submitted their proposed programmes of works to the Agency and a workshop was held to start prioritising the projects put forward for inclusion in the Plan. Only those projects meeting certain criteria for significance needed to be prioritised.

11. Each project was assessed according to:

11.1. Strategic fit – how well the benefits of the project align with the Government Policy Statement

11.2. Effectiveness – how likely it is that the project will deliver the benefits

11.3. Benefit and cost appraisal – a numerical assessment of the whole-of-life benefits and costs of the project

11.4. Contribution to regional objectives – how well the project contributes to the regional strategic objectives agreed by the Committee.

12. The Regional Transport Committee has agreed that the transport priorities for the region are largely unchanged from those set three years ago and has assigned the highest regional priorities to:

12.1. completion of the Whakatu Arterial Link, linking the Whakatu area with the Port of Napier via the HB Expressway;

12.2. an upgrade to the Pakowhai and Links Road intersections with the Hawke’s Bay Expressway;

12.3. improvements to local roads and state highways to enable the carriage of High Productivity Motor Vehicles;

12.4. safety upgrades to high risk intersections (such as State Highway 2- Hawke’s Bay Airport – Watchman Road intersection and the Napier Road–State Highway 2 intersection at Mangaterere) and high risk sections of highway; and

12.5. significant further investment in cycle networks in the region.

The prioritised list of activities is in Section 9 of the Plan.

13. In addition to the suggested priority list, the draft Plan also contains a list of every activity submitted for NZTA funding by the councils in the region and NZTA’s Highway Network Operations group. This is required by statute and includes all business- as-usual activities such as road maintenance and public transport operations.

14. The draft Plan was released for public consultation over December and January, with 32 submissions received. As a result of submissions, a number of changes were agreed to the Plan, mainly wording changes and the addition of items that the region would like to see NZTA include in its programme of works, in Section 11. Further minor wording amendments were approved in March. The Plan is Attachment 1 under separate cover.

Further Addition of Activities

15. Section 11 outlines several state highway projects which the RTC had asked to have included in the Plan, as they were considered to make an important contribution to our regional goals. The RTC has just been advised that some of these will be added to the list of activities to be submitted for funding. However, due to agenda deadlines it was not possible to alter the Plan and the Council is therefore asked to note that some of these will be added to the full list of activities in Section 9 when the final Plan is printed.

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 all users of the region’s transport networks.

16.5. Options that have been considered include other strategic transport priorities and combinations of transport activities.

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. Adopts the Regional Land Transport Plan for 2015-25, as amended as agreed at the 6 March 2015 Regional Transport Committee meeting, for submission to the New Zealand Transport Agency, noting that the several of the state highway activities outlined in Section 11 will be added to the region’s funding request in Section 9.

3. Forwards the Plan to the New Zealand Transport Agency no later than 30 April 2015, as required under the Land Transport Management Act 2003

Anne Redgrave

Transport Manager

Helen Codlin

Group Manager Strategic Development

Attachment/s

Regional Land Transport Plan 2015-25

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

Subject: Proposed Regional Public Transport Plan 2015-25

Reason for Report

1. This report is to consider and approve the proposed Regional Public Transport Plan 2015-25 (RPTP, the Plan).

Financial and Resource Implications

2. The Regional Public Transport Plan proposes a continuation of existing levels of public transport services, funding for which is included in the Council’s draft Long Term Plan. However, it includes a number of service improvement investigations over the next three years. Approval from Council will be sought for any proposed improvements prior to implementation and will be subject to funding availability.

Background

3. The Land Transport Management Act 2003 (LTMA) requires each regional council that intends to subsidise public transport to prepare a Regional Public Transport Plan which must be reviewed at least every three years. The purpose of the RPTP is set out in the LTMA and is to provide

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

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

3.3. A statement of –

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

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

3.3.3. The information and infrastructure that support those services

4. The RPTP must be adopted by the Regional Council by 30 June 2015 at the latest. No re-tendering of bus services is permitted until the Plan is finalised.

5. The draft RPTP was presented to the Council in November 2014. Public consultation on the Plan ran through December and January, with 27 submissions received. Many of the submitters requested alterations to timetables, extensions to bus routes or other service changes.

6. Submissions were heard by the Regional Transport Committee in February and deliberated on in March. As a result of submissions a number of changes were proposed to the Plan and the revised draft is attached under separate cover.

The Plan

7. The Plan proposes that bus services in Hawke’s Bay should be formally combined into one unit (the delineation of bus services into “units” is a legislative requirement), rather than separately tendered by area of operation, e.g. Napier services, Hastings services and Napier –Hastings routes.

8. The Plan does not propose any definite, immediate changes to the level of public transport service provided in Hawke’s Bay. However it does identify a number of service improvements which will be investigated over the next three years and may be implemented if funding becomes available. These improvements were identified through early consultation with the community and further refined as a result of the formal submissions received.

9. The proposed investigations are shown in the following excerpt from the Plan.

10. Any proposed improvements resulting from these investigations will be brought to Council for a decision on implementation.

11. The Plan also sets out policies for the management of public transport services (including Total Mobility) and the provision of infrastructure. These are contained in Section 5.

Decision Making Process

12. 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:

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

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

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

12.4. The persons affected by this decision are public transport users and operators in the region.

12.5. Options that have been considered include other policies and methods for the management of the region’s public transport network.

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

12.7. 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 Regional Public Transport Plan for 2015-25.

Anne Redgrave

Transport Manager

Helen Codlin

Group Manager
Strategic Development

Attachment/s

Regional Public Transport Plan 2015-25

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

SUBJECT: Annual Plan Progress Report for the first Nine Months of the 2014-15 Financial Year and Reforecasting to 30 June 2015

Reason for Report

1. This is a full financial report (includes financials and performance reporting) for the first nine months of the 2014-15 financial year. The reforecasting exercise which covers the full financial year to 30 June 2015 has been carried out after tracking financial performance for the first nine months of the financial year.

Summary of Financial Position to 31 March 2015

2. The actual result covering Council’s general funded operations for the first nine months of the 2014-15 year is a deficit of $1,415,000. This compares to the pro-rata reforecast budget deficit of $1,670,000. The variation for the nine months is $256,000 favourable. The variations from pro-rata budgets are covered in this report.

Reforecasting Exercise

3. There have been two reforecasting exercises carried out during the 2014-15 year. The first of these exercises was reported to Council at the meeting on 29 October 2014 and covered the implications on Annual Plan budgets of movements in regional income due to decreasing interest rates on term deposits. This exercise also analysed the implications of the financial close for the RWSS being delayed to 31 March 2015.

4. This reforecasting exercise carried out in October 2014 showed that the Annual Plan general funded operating deficit of $424,000 was forecast to increase to $710,000 by the end of the 2014-15 financial year. It was also stated at that time that work would be undertaken during the remainder of the financial year in order to move the deficit back, where possible, to more closely approximate the Annual Plan deficit.

5. A further reforecasting exercise has been carried out after the nine month financial reporting period and it is pleasing to report that the October 2014 reforecasting deficit of $710,000 has been reforecast to move back to $487,000 by year end. This revised reforecast more closely approximates the deficit as shown in the Annual Plan which is $424,000.

6. The attachments to this paper will show the details of this second reforecasting exercise and outline the areas where improvement in financial performance is anticipated.

Comment on Financial Results for Nine Months to 31 March 2015

7. The financial reporting is covered in two attachments – Attachment 1 consists of:

7.1. Section A – Operating Statement (including reforecast)

7.2. Section B – Balance Sheet

7.3. Section C – Cashflow Statement

7.4. Section D – Capital including borrowing.

8. Attachments 2-9 contain the performance reporting for all groups of activities.

Decision Making Process

9. 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 Council receives the Annual Plan progress report for the first nine months of the 2014-15 financial year, which includes the reforecasting for the 12 months to 30 June 2015.

Manton Collings

Corporate Accountant

Paul Drury

Group Manager Corporate Services

Liz Lambert

Chief Executive

Attachment/s

1	Reforecast Financial Position to 30 June 2015
2	Strategic Planning Group of Activities Progress Report for 9 Months to 31 March 2015
3	Land Drainage & River Control Group of Activities Progress Report for 9 Months to 31 March 2015
4	Regional Resources Group of Activities Progress Report for 9 Months to 31 March 2015
5	Regulation Group of Activities Progress Report for 9 Months to 31 March 2015
6	Biosecurity Group of Activities Progress Report for 9 Months to 31 March 2015
7	Emergency Management Group of Activities Progress Report for 9 Months to 31 March 2015
8	Transport Group of Activities Progress Report for 9 Months to 31 March 2015
9	Governance & Community Engagement Group of Activities Progress Report for 9 Months to 31 March 2015

HBRIC Ltd Report to Regional Council - April 2015

Attachment 1

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

Report to Hawke’s Bay Regional Council

29 April 2015

Summary

There has limited activity, particularly on RWSS matters, since our March report. This report briefly covers the following issues:

· HBRIC Ltd Strategic Planning and Risk Assessment process;

· RWSS consents;

· Progress on debt financing arrangements.

HBRIC LTD Strategic Plan and Risk assessment process

Governed by the principles adopted by the Regional Council on 29 October 2014, HBRIC Ltd is progressing with a strategic planning, risk appetite and formal risk assessment process. HBRIC Ltd has engaged John Mendzela of Mendhurst Associates to facilitate this task. The Board’s attention has been turned to this subject during two workshops over the past two meetings, as we await the outcome of the BOI process on the RWSS consent conditions.

The Directors and CEO of HBRIC Ltd seek to engage further with the Council over the development of this strategy, and risk appetite during May and June, potentially by way of workshops and subsequent reports. We will liaise with Council management on timing and appropriate process prior to Council’s May meeting.

RWSS development

Consent Work-stream

Our understanding is that the Board of Inquiry (BoI) will release its draft decision on Plan Change 6 and the RWSS Production Landuse consent conditions at the end of April or start of May. That will clearly be a key milestone and HBRIC Ltd will inform the Council of the assessment on consent conditions as quickly as possible after the issue of the decision.

It is expected that there will be a more comprehensive RWSS report for Council at the May meeting taking into account the implications of the BoI decision.

Debt financing arrangements

Subsequent to Council’s approval in March for HBRIC Ltd being able to borrow to finance ongoing operating costs for the RWSS project, HBRIC Ltd has formed a Board sub-committee, chaired by the Chairman of the Audit and Risk Management Committee (Mr Jim Scotland), to govern the process of selecting the best source and terms for debt finance. In order to completely avoid any potential or actual conflict of interest for the HBRIC Ltd Chairman in this matter, Dr Pearce is not a member of this sub-committee, and the sub-committee has been authorised by the Board to make decisions on debt financing without further approval being required by the Board. No debt facility is yet arranged.

HBRIC Ltd Financial REPORT

Table 1 sets out the March 2015 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 and reforecast to 30 June 2015 (operating) and project budget to 28 February 2016 (RWSS phase 2 development expenditure).

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

OPERATING INCOME & EXPENDITURE

There was a total of $46,186 of operating expenditure in the month of March with a breakdown of these costs set out as follows:

- $14,500 for Board Fees for the Chairman and four non-executive Directors.

- $14,509 for Management Services provided by HBRC staff.

- $12,222 for Consultancy Fees which includes costs associated with HBRIC Ltd’s strategic planning and formal risk assessment processes, and fees for the independent RWS Board Committee member for the month of March.

- $4,955 for other expenditure which includes meeting expenses, travel and expenditure for Directors and the independent RWS Board Committee member, and accruals for audit fees and insurance.

RWSS PHASE 2 DEVELOPMENT EXPENDITURE

The total RWSS Phase 2 Development Expenditure budget to 28 February 2016 reflects the most recent reforecast budget approved by Council on 25 March 2015.

Details of the expenditure for the month of March are set out below:

RWSS Phase 2 Costs ($351,581)

The $39,064 of HBRC internal staff time for March covers a number of work streams including:

- Input into DOC land exchange and fish dispensation applications and processes.

- Ongoing investor negotiations.

- Ongoing negotiations with OHL-Hawkins with respect to early works and geotechnical programme.

- Work associated with new consent applications.

- Work associated with identifying and quantifying downstream user opportunities.

- Input into various due diligence studies.

- Ongoing project management.

$14,907 for Commercial Legal & Tax Advisory services for the month of March.

$157,000 of costs for work associated with due diligence studies which will be in part relied on by other investors.

The $140,610 of Other Consultants costs covers off a number of pieces of work including:

- Various landowner negotiations which includes meeting and negotiating with landowners and receipts of letters of intent.

- Approvals for land exchange and fisheries dispensation which have been lodged with DOC.

- Technical advisor support.

- Water contract and sales advisory costs.

- Work associated with new consent applications.

- Other miscellaneous expenditure including meeting and travel expenses.

EPA Process Costs ($46,610)

An accrual of $46,610 for the month of March that relates to the costs associated with the High Court’s decision to refer the matter back to the Board of Inquiry. The budget provision for this work stream reflects additional external consultant costs to undertake the process through the BOI and costs from the EPA.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

SUBJECT: Monthly Work Plan Looking Forward Through May 2015

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/
CE’s office

- LTP Consultation – three public meetings in May to conclude the public consultation.

- Prepare responses to submissions on Consultation Document

- Attend RSG meeting in Wellington

- Public meeting on Rules Reduction Taskforce (organised by Craig Foss)

Corporate Services

- LTP consultation finishes Monday 18 May 2015.

- Meetings on 8 – 10 June 2015 to hear and consider submissions on the Consultation Document.

- First meeting of Finance, Audit and Risk Committee on 3 June 2015.

- Pricewaterhouse Coopers completed the internal audit. Report to be presented to the Finance, Audit and Risk Committee.

Civil Defence & Emergency Management

Emergency Readiness & Response

Reduction

- Review of the region’s control and coordination facilities including TLA emergency operations centres and Group emergency coordination centre now complete. Implementation plan now being developed

- Group Structure and Resourcing Review now decided by CEG. Decision was endorsed by Joint Committee in late March.

- In conjunction with these reviews developing detailed Group Work Programme to implement Group Plan.

- Planning for major Group exercise 11-12 November 2015 is progressing well.

Asset Management & Biosecurity

Coastal

Biosecurity

- Coastal strategy development continues, programme of technical work has commenced following agreement by governance group and HBRC Tenders Committee at their meeting in March.

- The Cape to City widescale predator control project is underway. Activities include a wireless trap monitoring trial and community focus groups on citizen science biodiversity monitoring.

- HBRC staff continue to participate in a collective Regional Pest Management Plan process with other RC staff. Possible opportunities for RPMP rule alignment are an early part of the collective discussion.

- The National Policy Direction under the Biosecurity Act 1993 will be promulgated in early June/July 2015.

Asset Management & Biosecurity

Engineering

- Asset Management Plans to be considered by Council for adoption at May E&S meeting.

- The gravel resource and supply and demand assessment reports expected to be completed and circulated to gravel extractors once they are to hand.

- A programme for levels of service reviews for the Heretaunga Plains drainage areas is progressing.

- Upper Tukituki Scheme review programme to be progressed.

Asset Management & Biosecurity

Land Management

· The Mānuka and Profitable Marginal Land Use Seminar’ will be held on Wednesday 6 May 2015 at the War Memorial Conference Centre, Napier. Members of the LM group have played a key role in the organization and hosting of this event.

· HBRC via the Land Management Group are a major sponsor of this year’s LandWISE Conference to be held at the Havelock North Function Centre 20-21 May 2015. The conferences focus this year is on “The Mechanical Farm of 2030 and promotes attendee’s leaving with a new understanding of where technology has taken us, where current development is opening possibilities and which things may yet be some way off.

· A meeting with is being held with MPI and Land Management in May to discuss programs and projects currently occurring, future opportunities on the horizon and where both parties can capitalize on any potential synergies between our relative efforts.

· Dr Will Allen is working with the group in May to help develop protocols and processes for improving the monitoring, evaluation and reporting of the work the team are doing with catchment groups. He will be assisting in trialling this processes in the Whakaki and Whangawehi catchments.

· LM staff are attending & contributing at the annual “Forestry Harvest & Roading Interface” meeting with Pan Pac where a key part of the considerations are the environmental implications of these practices.

· Several members of staff as part of a wider HBRC group are attending a meeting with ECan to look at their policy implementation programs and processes particularly with regards to the development and delivery of Farm Environmental Management Plans.

Resource Management

Compliance

- The Central Hawke’s Bay District Council Wastewater Treatment plant at Waipawa is required to have a new clarifier refitted by 25 April and installed by 8th May. Will continue to work with CHBDC to ensure time frames [as set out in the abatement notice] are being met. Currently the clarifier has been refitted and it currently being installed at the Waipawa site.

- The Central Hawke’s Bay District Council Wastewater Treatment plant at Waipukurau is required to have site works completed in preparation for the installation of a new clarifier by 24 April. Will continue to work with CHBDC to ensure time frames [as set out in the abatement notice] are being met. CHBDC are on target with the site works awaiting completion.

- Te Mata Mushrooms have ongoing odour discharge problems and have not completed the construction of an enclosed building as required by their resource consent. We continue to work with the company and residents to find a solution. Legal advice has been obtained and enforcement action is being considered

- Work is continuing on a region wide risk assessment and review of the current navigational safety work programme due for completion by 1 July 2015.

Resource Management

Science

- Environet Ltd will undertake an Air Emissions Inventory this winter.

- PM₁₀ monitoring at Port Ahuriri School has commenced and will continue until April 2016. Planning work continues to reconfigure the Awatoto and St John’s College PM₁₀ monitoring sites to allow additional PM_2.5 monitoring.

- A study is underway looking at the drivers of extreme weather events (droughts, heavy rainfall) and should be completed by June.

- Land use mapping continues in the TANK catchments

- Ngaruroro Biodiversity report to be reviewed

- S-mapping (soil mapping) to continue in the TANK catchments

- Sediment modelling continuing in the TANK catchments

- The land-science sections of the Mohaka Characterisation report under review

- Upgrade of iQuest loggers continues

- Waiau at Otoi site will be transferred from NIWA to HBRC

- Parks Peak rain gauge site will receive a full upgrade

- Weed surveys will be undertaken to understand effect of diquat herbicide

- Tukipo gauging weir will be repaired and refurbished

- Envirolink medium advice grant focused on developing a decision support system for management of intermittently open and closed lake/lagoons (ICOLLs), specifically directed at Whakaki Lake will continue

- Preliminary results of model simulations from University of Waikato Lake Tūtira work, investigating alternative management scenarios for the lake will be received

- Ongoing trials will occur to test potential ramps for overcoming fish barriers – looking at designs for pre-fabricated fish ramps

- Cawthron Institute is continuing to work on MCI regional optimisation, improving current MCI predictive models to suit regional studies and regional limit-setting

- Stream Ecological Valuation (SEV) fieldwork on the Papanui Stream will be completed

- Cawthron will progress analysis of impacts of Taharua outflows on trout food availability in the upper Mohaka River

- Fieldwork investigating water quality and salinity of Whakaki Lake will progress

- Work on State of Environment 5 year Water Quality and Ecology technical reports will continue

- Work continues on developing the TANK steady-state groundwater model, including updating to a coupled groundwater/surface water flow model

- Data on spatial-oxygen distributions in the Karamu catchment will be examined

- Preparation of data and reports for surface water and groundwater State of the Environment technical reports continues

Resource Management

Consents

· NCC Thames Tyne stormwater consent application process – 13 submissions received. Prehearing held 26 February. Parties conferencing on conditions.

· Twyford Global consent applications. Raupare semi-confined global issued. Ngaruroro – unconfined aquifer limited notified received 2 submissions. Prehearing was being organised for March but application has been placed on hold. An alternative application has been lodged which has removed the provision for emergency water.

· PanPac application to extend their outfall from 440m to 2,000 m off shore limited notified and received 3 submissions. Two prehearing meetings were held in March. Arising from these PanPac are undertaking tests of mussels found on, and in the vicinity of the current pipeline and are looking at commissioning a Cultural Impact Assessment. A further prehearing is anticipated in April.

· “Tranche 2” water. Applications have been received from from HBRIC, Bostocks, Te Awahohonu Forest Trust (Gwavas Station), Ingleton Farms and R Jensen for Tuktuki Tranche 2 water and are on hold.

· Replacement and review of Ruataniwha groundwater consents in process. 10 have requested a review of annual volumes calculated. This is now being carried out.

· Ngaruroro catchment consents that have Ngaruroro River minimum flow conditions are expiring at the end of May. All current consent holders have lodged applications to replace these. Staff will process these as a group. Notification decision is pending.

· HDC Waimarama Maori Committee resource consent to divert Waingongoro Stream back into its historic channel granted in March. HBRC Works Group to carry out diversion works.

· CHBDC, Waipukurau and Waipawa wastewater treatment consents change of conditions and review in process but awaiting detail on additions to treatment.

· NCC application for coastal protection structure at Whakareri Ave remains on hold.

· TAG application for an oil exploration bore at Boar Hill remains on hold.

Strategic Development

Transport

- The Regional Public Transport Plan and the Regional Land Transport Plan are due to be signed off by the Council at the April council meeting. The Regional Land Transport Plan sets the strategic direction for transport for the next ten years, and constitutes the region’s funding application to the New Zealand Transport Agency for the next six years.

- The draft Regional Cycle Plan is being presented to the councils during late April and May. It is hoped to have the final version adopted by the governance group in May 2015.

- Work is underway to complete the HBRC Transport Procurement Strategy, which needs to be approved by NZTA before we can commence re-tendering the bus service in mid-2015.

- The Hawke’s Bay Road Safety Expo will run during the week 11-15 May. Two and a half thousand people are expected to attend during the week from secondary schools, EIT, alternative education providers and members of the public.

- Interviews have been completed for the Wairoa Road Safety Coordinator and a decision is expected shortly, with the successful applicant commencing work at the beginning of May.

Strategic Development

Resource Management Planning

- Environment Court’s decision on two outstanding appeal points by NKII against Change 5 was released on 27 March 2015. Period for appeal closes 21 April 2015 – Council has not lodged an appeal.

- Draft decision from Board of Inquiry for Tukituki Plan Change 6 expected by end of April 2015 and a 10 working day period for comments will follow before the final decision is made.

- Work continues on PC6 Implementation Plan across Council groups.

- TANK Group meeting #15 held on 10 March 2015. Next meetings are currently being scheduled to fit work programme. ‘Drop-in’ workshop on identifying values is to be scheduled for mid May and TANK Group meeting #16 approximately late June.

- Setup phases continue 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 Steering Group has worked through public feedback received on the Draft strategy and the document is being finalised.

- Whakatu arterial roading designation hearing held on 2 February by commissioner appointed by Hastings DC. Decision is pending.

- Hastings DC’s district plan hearings continue. HDC’s decisions on all plan topics and submission are anticipated late August.

- Napier CC District Plan Change 10 hearing held 23 March. NCC’s decisions are pending.

- All parties involved in HBRC’s appeal against Hastings DC’s decision to grant consent for 15 lot subdivision at Whirinaki have agreed to participate in Environment Court-assisted mediation. No date for mediation has been scheduled yet.

Strategic Development

Economic Development

- Business Hub – Establishment project for April launch, including on-site matters and membership of Governance Group.

- REDS – agreement has been reached with HDC and NCC for a jointly managed review of REDS. Underway.

- Maori Economic Development. – Underway, looking at how this should be aligned with the REDS review.

- Wairoa Agribusiness - Ata Milk market validation study due shortly. We have also received an initial request to support a business attraction study to be managed between the Icehouse and the Wairoa HorizonsTrust.

- Non-bovine dairy – building towards BHB-led ‘symposium’ later in the year.

- As required and where appropriate, support RWSS work-streams.

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 May 2015 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

Ian Macdonald

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

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 April 2015

Subject: 159 Dalton Street Building Remediation Settlement

Reason for Report

1. This briefing paper is to advise that a negotiated settlement has been achieved for recovery of costs associated with remediation works undertaken on the HBRC building at 159 Dalton St Napier.

2. The settlement document states that the parties “agree that they may disclose only that the claim has settled but agree that the terms of this agreement shall remain confidential to the parties, their lawyers, their experts and indemnifiers.”

3. This settlement has been reached by the Chief Executive in accordance with the delegated authority provided by Council at their meeting on 21 March 2012.

4. The cost (excluding GST) of the remedial work including all professional fees is set out below.

Description	Feb 2013 Estimate	Sept 2013 Estimate	Final Costs April 2015
Assessment of cladding defects	$60,000	$60,000	$63,320
Professional and consent fees to tender stage	$50,000	$50,000	$39,596
Remedial works	$1,922,000	$1,697,000	$1,746,351
Remediation contract management	$30,000	$75,000	$126,558
Legal fees	$120,000	$160,000	$233,999
Remediation specialist fees	$30,000	$30,000	$39,155
Total	$2,212,000	$2,072,000	$2,248,979

Note: These figures include $70,863 of costs specifically requested by HBRC which are betterment. This work includes changes to the external stair support to comply with recommendations from the Royal Commission of Inquiry on Christchurch, and a range of other works which result in improvements to the building.

Recommendations

1. That Council excludes the public from this section of the meeting, being Agenda Item 20 159 Dalton Street Building Remediation Settlement with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being as follows:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION

GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION

159 Dalton Street Building Remediation Settlement

7(2)(c)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide and would be likely otherwise to damage the public interest.

7(2)(g) 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 maintain legal professional privilege.

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Mike Adye

Group Manager
Asset Management

Liz Lambert

Chief Executive

Request Status	DateReceived	Requested By	Request Summary
Active	2/04/2015	Wayne Plummer	Number of pollution responses per annum, number of spills attended, number of prosecutions for deliberate or illegal disposal/ dumping, number of illegal disposal sites, number of contaminated sites and how many of these were caused by inappropriate operational or waste disposal practices.
Active	31/03/2015	Derek Williams	A) Was Cr Bevan absent from the 25th March members meeting because he went fishing? B) All four Hastings first term members were absent from a recent Taharua Trust stakeholders field trip Please confirm whether or not this information is accurate and if so what each member gave as the reason for none attendance in both A & B Part 2) I am aware of a field trip to Tutira in the morning Tuesday 31st March C) Please provide how many members attend tomorrow Tutira field trip and identify them by name D) In the event of any not attending provide their reason for not doing so
Active	30/03/2015	Paula Fern	Data and/or evidence supporting "...this council project came about over many years but was reinforced last year with 80% of our population saying they want us to get on with it." A breakdown of the $12 million spent and a testimony that the amount stated has not been exceeded.
Active	30/03/2015	Meg Rose	verifiable evidence supporting the claim made by Fenton Wilson on Radio New Zealand that in 2014 80% of HBRC’s population supported HBRC progressing the RWSS
Completed	24/03/2015	Ian McIntosh	list of the members of the Papanui focus group and the organisations they represent
Completed	24/03/2015	Derek Williams	Please provide all response material to 4 LGOIMA of Ian McIntosh

1	HB Tourism Q3 2014-15 Report
2	HB Tourism Q3 2014-15 Profit & Loss Statement