MINUTES OF A meeting of the Regional Council
Date: Wednesday 30 September 2015
Time: 9.00 am
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
R Barker
T Belford
A J Dick
R Graham
D Hewitt
D Pipe
C Scott
In Attendance: M Mohi – Chairman – Maori Committee
E Lambert – Chief Executive
P Drury – Group Manager Corporate Services
L Hooper – Governance & Corporate Administration Manager
M Collings – Corporate Accountant
M Miller – Manager Consents
H Caldwell – HBRIC Ltd Company Manager
S Robinson – Director, HBRIC Ltd
J Scotland – Acting Chairman, HBRIC Ltd
A Newman – Chief Executive, HBRIC Ltd
D Macleod – Commercial Manager, HBRIC Ltd
D Southwell – BNZ Advisory
The Chairman welcomed everyone to the meeting, and offered the prayer.
Cr Peter Beaven’s absence on leave was noted.
2. Conflict of Interest Declarations
There were no conflict of interest declarations.
3. Confirmation of Minutes of the Regional Council Meeting Held on 26 August 2015
Minutes of the Regional Council Meeting held on Wednesday, 26 August 2015, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record. CARRIED |
4. Matters Arising from Minutes of the Regional Council Meeting Held on 26 August 2015
There were no matters arising from the minutes.
Follow-up Items from Previous Regional Council Meetings |
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Mrs Lambert provided an update on the status of the follow-up items. |
1. That Council receives the report “Follow-up Items from Previous Regional Council meetings”. CARRIED |
Call for any Minor Items Not on the Agenda |
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That Council accepts the following minor items not on the Agenda, for discussion as Item 16: 1. Otane wastewater (Belford) 2. Napier Pandora (Belford) 3 Mark Lawrence (Belford) 4. GoBus (Hewitt) |
Affixing of Common Seal 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.
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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. CARRIED |
Adoption of the Audited 2014-15 Annual Report |
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Mr Drury outlined the changes made to the draft, and responded to queries relating to councillor attendance, CE remuneration, and HBRIC Ltd financials. The item was adjourned to allow Councillors time to review the Auditor’s Report, which had been received within 10 minutes of the meeting commencing. |
Proxy for the HBRIC Ltd Annual General Meeting |
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The report was taken as read. |
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. Notes the date of the Hawke’s Bay Regional Investment Company Limited Annual General Meeting. 3. Agrees that the Chairman of Hawke’s Bay Regional Council, Mr Fenton Wilson, be appointed as Council’s proxy at the fourth Annual General Meeting of the Hawke’s Bay Regional Investment Company Limited to be held at 4.00pm on Monday 12 October 2015, and to vote as proxy holder on behalf of the Council, and that the Deputy Chairman of the Hawke’s Bay Regional Council, Mrs Christine Scott, act as alternate. CARRIED |
Recommendations from the Regional Planning Committee |
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The report was taken as read. |
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The Regional Planning Committee recommends 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. Clean Air Compliance Strategy 2. Approves the proposed actions regarding communication and enforcement, including:
3. Instructs staff to investigate the efficacy of a ‘no visible smoke’ rule. Petroleum Exploration Proposed Block Offer 2016 4. Lodges revised comments on New Zealand Petroleum and Mineral’s proposed Block Offer 2016 by the 30 October 2015 deadline, following circulation amongst Regional Planning Committee members for further feedback and final approval by Council at its 28 October 2015 meeting. Nga Hapu o Tutaekuri Hapu Management Plan 5. Acknowledges the role of Tutaekuri Awa Management and Enhancement Plan in the Greater Heretaunga / Ahuriri policy development process under the Resource Management Act. Reports Received 6. Notes that the following reports were provided to the Regional Planning Committee meeting. 6.1. Regional Planning Committee Annual Activity Report 2014-15 6.2. Matatini 2017 6.3. Forestry Policy Issues 6.4. September 2015 Resource Management Planning Project Update 6.5. May-September 2015 Statutory Advocacy Update. CARRIED |
Recommendations from Corporate and Strategic Committee |
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Cr Hewitt, as Chairman of the Corporate and Strategic Committee, provided an overview of the items considered at the meeting, adding context around the HB Tourism KPIs and Forestry Investments. There was discussion around protocols for media releases, and the process of resolutions from committees being double debated at Council when those resolutions are put as recommendations from that Committee. |
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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 engagement 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. Councillor Hewitt moved an amendment, seconded by Councillor Graham, being the re-wording of recommendation 5 to read: 5. Agrees to the proposed management approach for the HBRC forest estate being under the delegation of the Chief Executive. Hewitt/Graham LOST The amendment was LOST and therefore the substantive motion was put. 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 engagement 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. Hawke’s Bay Tourism 2015-16 Proposed KPIs 2. Approves the key performance indicators for Hawkes Bay Tourism Ltd for 2015-16; contained in the following table.
Forestry Investments 3. Agrees that staff should progress the development of a concept for a walking/mountain bike track network within the Waihapua property, with the potential to link through Tangoio and to Tutira, in collaboration with interested groups and neighbouring properties. 4. Agrees that HBRC enter into an Agreement with a community group for the establishment of a mountain bike park within the Waipukurau Forest for public recreation and enjoyment for the period of the current CHBDC wastewater consent (expiring 2030), and delegates authority to the Interim Chief Executive to determine the terms and conditions of such an Agreement, with the terms of the final agreement to be brought to Council for ratification. 5. Agrees to the proposed management approach for the HBRC forest estate being: 5.1. Pruning up to 50% of Pinus Radiata stands to give the option of pruned logs in the sales mix. 5.2. Manage Eucalyptus regnans and E. fastigata and E. maidenii with a low cost regime of thinning only, with some targeted pruning of extremely productive areas to provide the option of higher grade saw logs at harvest 5.3. Prune and thin between 80-100% of other species to provide high quality timber. 6. Agrees to the development of a carbon sales protocol to allow informed and timely carbon trading decisions according to an agreed risk profile, and requests staff to progress its development for Council consideration during 2016. 7. Notes the significant returns projected for harvesting the Tutira pine forest between 2019 and 2022 and that these returns have been included in HBRC LTP 2015/25 financial forecasts.
8. Notes that on average over a full rotation the estimated long term return on HBRC’s investment in the forest estate is expected to be around 6-7% for full rotations (subject to variations in prices and harvest yields). The returns from Manuka honey are expected to be greater than 6% - 7% which reflects the limited further expenditure required on these crops. 9. Notes Council’s continued direct ownership of the forest estate will provide the following benefits: 9.1. Continued integrated Council management of the open space policy on these lands together with achieving a reasonable positive return from their commercial operations 9.2. Significant financial returns over the long term; and 9.3. These financial returns will be received free of income tax whilst the forest estate continues to be directly owned by the Council. Reports Received 10. Notes that the following reports were provided to the Corporate and Strategic Committee meeting. 10.1 HB Tourism 2014-15 Year End Report 10.2 Implications of New Health and Safety Legislation 10.3 Human Resources 2014-15 Annual Report 10.4 Gravel Resource Inventory and Gravel Demand 10.5 Recommendations from the Finance Audit and Risk Sub-committee 10.6 September 2015 Public Transport Update For: Dick, Graham, Scott, Pipe, Barker, Belford, Wilson Against: Hewitt CARRIED |
Management of Heretaunga Plains Groundwater |
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Mrs Lambert provided an overview of the report and the legal advice sought by resolution of Council in response to issues raised concerning sustainability of the groundwater in Heretaunga plains through a notice of motion from Councillor Beaven. Mr Malcolm Miller explained the conclusions contained in the legal advice received from Simpson Grierson. Mrs Lambert, in response to a query, re-iterated the legal opinion that there is no legally defensible justification for the proposed approach as there is no scientific evidence that the resource is being unsustainably managed, or is under threat. Discussion also covered review clauses in resource consents in relation to allocation limits and future plan change provisions[CS1] . |
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. Councillor Belford moved an amendment, seconded by Councillor Barker; being to amend recommendation 2 and add recommendation 3 to read: 2. Receives the legal opinion, accepts that the resolution of 26 August 2015 in respect of this matter is not able to be implemented. 3. Requests further exploration of suitable options that could indicate a precautionary approach to future consents regarding the HP aquifers to be completed by a working party consisting of the 3 councillor reps to TANK, legal counsel and appropriate staff, with a recommendation to the next council meeting. Belford/Barker For: Belford Against: Dick, Hewitt, Graham, Scott, Pipe, Barker, Wilson LOST Councillor Dick moved a further amendment, seconded by Councillor Hewitt; being the addition of recommendation 3: 3. That Council requests a further report from the Group Manager Resource Management on the matters raised in the Simpson Grierson legal opinion. Dick/Hewitt CARRIED The Chairman then moved the substantive motion, being: 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. Receives the Simpson Grierson legal opinion, accepts that the resolution of 26 August 2015 in respect of this matter is not able to be implemented and notes that there is provision in the RMA Plan Change process under way in the Greater Heretaunga catchment to deal with the matters raised in the original notice of motion. 3. Requests a further report from the Group Manager Resource Management on the matters raised in the Simpson Grierson legal opinion. CARRIED |
The meeting adjourned at 10.30am and reconvened at 10.45am
Monthly Work Plan Looking Forward through October 2015 |
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There was discussion traversing: · Public concerns around the functioning of the kiln at PanPac and issues being worked through with HBRC compliance and Public Health Unit · Westshore renourishment material now sourced from parts of the Ngaruroro and possible cost implications with transportation being from farther away · Section 36 charges and charging methodology · Te Mata mushrooms prosecution · Biodiversity Strategy implementation progress and timelines
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1. That Council receives the Monthly Work Plan Looking Forward Through October 2015 report. CARRIED |
Chairman's Monthly Report for September 2015 |
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The Chairman tabled his report (following) and provided additional detail in relation to the RMLA conference, Whangawehi and the Mayoral Forum/ Intersectoral Leadership Group. General Comments · RMLA Conference – on the theme Matauranga Maori - was very worthwhile and one of the highlights was “The collision of tribal law and colonial law in the RMA”. He recommended councillors access this paper by the Hon Justice Joe Williams. · Whangawehi – a nationally significant project that Minister Smith sees as a solution to other catchments. Also the signing of landowners including Sir Michael Faye is another important step in the process. Chaired Meetings 26/8/15 Regional Council 16/9/15 Regional Planning Committee 18/9/15 Hawke’s Bay Local Government Leaders’ Forum 23/9/15 Tenders Committee Other Activities 26/8/15 Digital Enablement Plan Consultation Session/Workshop 27/8/15 Institute of Directors Breakfast – guest speaker Nicky Hyslop, Irrigation NZ 27/8/15 Nga Whenua Rahui Fund - 25th Anniversary in Gisborne 28/8/15 Governance and Strategy Advisory Group meeting 1/9/15 Min. Nick Smith at Whangawehi 4/9/15 Regional Sector Group Meeting with Chief Executive 7/9/15 Climate Briefing 8/9/15 Meeting with Toro Waaka and Chief Executive 8/9/15 HPUDS meeting 9/9/15 Council field trip – Archives Centre Fielding and Horizons Regional Council with Councillors Debbie Hewitt, Dave Pipe, Christine Scott, the Chief Executive, and other staff involved in care of our archives. 17/9/15 HB Tourism Awards with Chief Executive 19/9/15 Whangawehi signing with landowners Coop family, Bowen family and Sir Michael Faye 21/9/15 Exercise Te Matau-a-Maui - Earthquake Consequences Workshop 21/9/15 Clifton to Tangoio Coastal Hazards Joint Committee 22/9/15 Finance, Audit & Risk Sub-Committee 22/9/15 Meeting with Neil Kirton – Hohepa 23/9/15 Corporate and Strategic Committee 24/25/9/15 RMLA Conference with Cr Scott Priorities in Month Ahead · Working with the region’s Mayors for the benefit of Hawke’s Bay following on from the amalgamation decision
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1. That the Chairman's Monthly Report for September 2015 be received. CARRIED |
Minor Items not on the Agenda |
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Adoption of the Audited 2014-15 Annual Report |
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Having reviewed the Auditor’s Report provided, councillors confirmed their readiness to adopt the 2014-15 Annual Report. |
1. Adopts the 2014-15 Annual Report, under Section 98 of the Local Government Act 2002, and authorises the Chairman and Chief Executive to sign the Annual Report on behalf of Council. CARRIED |
HBRIC Ltd September 2015 Update |
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Mr Sam Robinson, Mr Jim Scotland and Mr Andrew Newman spoke to the HBRIC Ltd update report, highlighting: · Design & Construction price re-validation process, for the dam and both the primary and secondary water distribution networks, should be concluded by mid October to enable presentation of the D&C condition precedent to Council’s October meeting. · Four investors in due diligence process and delivery of their terms and conditions is expected within the next week. · HBRIC Ltd aiming to present the final business case ready for Deloitte to peer review by 28 October. · Water Uptake – Duncan Macleod (Commercial Manager, HBRIC Ltd) provided explanations of what the different ‘categories’ mean in relation to the position of landowners in the ‘contracting pipeline’ process as per the table in the report. · Amount of ‘signed’ water, and options to deal with shortfall if there is one at 11 November, the final date by which farmers need to have signed their Water User Agreement · Forecast water uptake – Duncan Southwell (BNZ Advisory) provided an overview of the reforecast uptake scenarios and underlying assumptions used including commodity pricing, hedging behaviour and land use. Castalia used more ‘approximate’ information while the new model is able to use more accurate data at actual farm scale level. · DoC land transfer process and the acquisition of other land in the dam footprint. · Smedley Station is run by the Public Trustee, bequeathed to the Crown by the original owners and the land subject to the swap to be bought by HBRIC, is currently being farmed. |
1. That Council receives and takes note of the “HBRIC Ltd September 2015 Update” report. CARRIED |
The meeting adjourned at 12.34pm and reconvened at 1.00pm
HBRIC Ltd Financial Structuring |
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1. That Council excludes the public from this section of the meeting, being Agenda Item 17 HBRIC Ltd Financial Structuring 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:
2. That Mssrs Sam Robinson, Jim Scotland, Andrew Newman and Duncan Southwell are present for the item as Directors of and Advisors to HBRIC Ltd, the party seeking Council’s decision on this matter and authors of the report. CARRIED |
The meeting went into public excluded session at 1.10pm and out of public excluded session at 2.10pm
Closure:
There being no further business the Chairman declared the meeting closed at 2.10pm on Wednesday 30 September 2015.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................
[CS1]We already do have such review clauses – the discussion was around the inability to derogate the consent through a review clause.