Meeting of the Hawke's Bay Regional Council
Date: Wednesday 25 May 2016
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 27 April 2016
4. Matters Arising from Minutes of the Regional Council Meeting held on 27 April 2016
5. Follow-up Items from Previous Regional Council Meetings 3
6. Call for any Minor Items not on the Agenda 9
Decision Items
7. Affixing of Common Seal 11
8. Annual Bus Fares Review 13
9. Recommendations from the Maori Committee 19
10. Recommendations from the Environment and Services Committee 23
11. Deloitte RWSS Peer Review 25
Information or Performance Monitoring
12. HBRIC Ltd May 2016 Update 29
13. Monthly Work Plan Through June 2016 35
14. Minor Items not on the Agenda 41
Decision Items (Public Excluded)
15. Confirmation of Public Excluded Meeting held on 27 April 2016 43
16. Waihi Dam Update 45
Wednesday 25 May 2016
Subject: Follow-up Items from Previous Regional Council Meetings
Reason for Report
1. On the list attached are items raised at Council meetings that require follow-ups. All items indicate who is responsible for following up, and a brief status comment. Once the items have been reported to Council they will be removed from the list.
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.
1. That Council receives the report “Follow-up Items from Previous Regional Council meetings”. |
Leeanne Hooper Governance & Corporate Administration Manager |
Liz Lambert Chief Executive |
Follow-ups from Previous Regional Council Meetings |
|
|
Wednesday 25 May 2016
Subject: Call for any Minor Items not on the Agenda
Reason for Report
1. Under standing orders, SO 3.7.6:
“Where an item is not on the agenda for a meeting,
(a) That item may be discussed at that meeting if:
(i) that item is a minor matter relating to the general business of the local authority; and
(ii) the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but
(b) No resolution, decision, or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”
2. The Chairman will request any items Councillors wish to be added for discussion at today’s meeting and these will be duly noted, if resolved by the Council, for discussion as Agenda Item X14.
That Council accepts the following minor items not on the Agenda, for discussion as Item 14: 1. 2.
|
Leeanne Hooper GOVERNANCE & CORPORATE ADMINISTRATION MANAGER |
Fenton Wilson CHAIRMAN |
Wednesday 25 May 2016
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 4 DP 14227 CT G1/24 - Transfer
1.1.2 Lot 195 DP 12611 CT D4/1109 - Agreement for Sale and Purchase
1.1.3 Lot 48 DP 13693 CT F2/1293 - Agreement for Sale and Purchase
1.1.4 Lot 390 DP 11483 CT 1/793 - Agreement for Sale and Purchase - Transfer
1.1.5 Lot 46 DP 13693 CT F2/1292 - Agreement for Sale and Purchase - Transfer
1.1.6 Lot 1 DP 365794 CT 158/43 - Agreement for Sale and Purchase
1.1.7 Lot 3 DP 12425 CT D4/644 - Agreement for Sale and Purchase
1.1.8 Lots 34 & 333 DP 10632 & 10728 CT B3/180 - Transfer
1.1.9 Lot 2 DP 10573 CT A1/1134 - Agreement for Sale and Purchase
1.1.10 Lot 192 DP 11149 CT B1/1221 - Agreement for Sale and Purchase
1.1.11 Lot 1 DP 14592 CT H1/227 - Transfer
|
3926
3927
3928
3929 3948
3930 3931
3932
3933
3946
3947
3949
3950
|
26 April 2016
4 May 2016
4 May 2016
10 May 2016 18 May 2016
12 May 2016 12 May 2016
12 May 2016
12 May 2016
18 May 2016
18 May 2016
18 May 2016
18 May 016 |
1.2 |
Staff Warrants 1.2.1 A. Daly T. Simcox J. Sutherland G. Howse T. Mitchell S. Soweby M. Hayes-Jones G. Foster T. Allen A. Prins B. Kitto (Delegations under the Civil Defence Emergency Management Act 2002 (s.86-92)
1.2.2 M. Moore (Delegations under the Local Government Act 1974 (s.650C – 650F) and Local Government Act 2002 (s.171 and 172))
|
3934 3935 3936 3937 3938 3939 3940 3941 3942 3943 3944
3945 |
12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016 12 May 2016
12 May 2016
|
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.
That Council: 1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion 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. 2. Confirms the action to affix the Common Seal. |
Diane Wisely Executive Assistant |
Liz Lambert Chief Executive |
Wednesday 25 May 2016
Subject: Annual Bus Fares Review
Reason for Report
1. To provide Council with the findings of this year’s annual review of bus fares on the Napier-Hastings Bus Service.
Financial and Resource Implications
2. The recommended course of action has no financial implications for Hawke’s Bay Regional Council.
Background
3. NZ Transport Agency policy requires regional councils to undertake a review of bus fares, discounts, concessions and ticket types annually.
4. Bus fares were last reviewed at the November 2015 meeting of the Corporate and Strategic Committee. A decision was made to leave fares unchanged but to review these again during 2016-17. However, as a number of changes are to be made to the bus services for the 1 August commencement of the new contract, it is an opportune time to revisit this issue so that any new fare information can be included in the new timetable.
Current Fares
5. The last fare increase, of 3.6%, was implemented in September 2014. However, since then, the NZTA Cost Index for Public Transport (which is used to adjust contract prices for inflation) has fallen by 0.7%.
6. Current fare details are set out in tables 1 and 2.
Table 1 - Single Trip Cash Fares
|
Adult |
Tertiary Student/Community Services Card |
Child/High School Student/Senior |
1 zone |
$3.60 |
$2.40 |
$1.80 |
2 zone |
$5.40 |
$3.60 |
$3.00 |
Express |
$4.20 |
|
|
Table 2 – Single Trip goBay Smartcard Fares (approximately 20% cheaper than cash fares)
|
Adult |
Tertiary Student/Community Services Card |
Child/High School Student/Senior |
1 zone |
$2.88 |
$1.90 |
$1.43 |
2 zone |
$4.28 |
$2.86 |
$2.14 |
Express |
$3.65 |
|
|
7. EIT students pay only a one zone fare, as EIT is the zone boundary. A single smartcard trip to/from EIT from either direction is $1.90 (with EIT student ID).
8. SuperGold cardholders travel free between 9am and 3pm Monday to Friday and anytime on weekend/public holiday services. HBRC is reimbursed for these fares by the NZ Transport Agency.
9. District Health Board patients travelling from Napier to Hawke’s Bay Hospital, travel free of charge on production of a valid appointment card/letter. HBRC is reimbursed for these fares by the DHB.
10. As seen in Table 3, about 78% of goBay fares (excluding transfers) are concessionary fares of one type or another.
11. The Express service fare was originally set at a cheaper rate than the 2 zone fare between Napier and Hastings in order to encourage use of the service, and also because a smaller, cheaper and less comfortable vehicle has been used on the service. However, these vehicles have been outgrown and the new contract requires larger buses with bike racks, in keeping with the rest of the urban fleet.
12. The Express fare is also currently a set fare – there are no zonal fares, and child and student concessions are not available. This means that, for example, high school students travelling from Clive to Napier are paying the same as adult commuters travelling between Havelock North and Napier. A new Express service from Napier via Taradale to Hastings (Route 10) will commence in August, and for consistency, should have the same fare as the Route 11 Express via Clive.
13. We do not have exact information on the number of school students travelling on the Route 11 express, but anecdotally we know that the service is used by some students travelling to Napier Boy’s High School. We estimate that around 20% of passengers are school students.
Table 3 - Passenger Category Percentages
Passenger Category |
2014-15 |
2015-16 (10 months) |
||
|
Number |
Percentage |
Number |
Percentage |
Adult |
122,498 |
16.8% |
92,793 |
16.3% |
Child/High School Student |
204,468 |
27.5% |
151,064 |
26.6% |
Community Services Card |
125,300 |
16.8% |
93,821 |
16.5% |
Senior |
16,357 |
2.2% |
13,388 |
2.4% |
SuperGold card |
115,753 |
15.5% |
98,367 |
17.3% |
Tertiary Student |
97,325 |
13.1% |
75,948 |
13.4% |
Promo/10 trips (sold by HBRC) |
14,227 |
1.9% |
6,203 |
1.1% |
DHB Appointment |
3,265 |
0.4% |
2,567 |
0.5% |
Transfer |
42,561 |
5.7% |
32,278 |
5.7% |
Service Improvements
14. At the April 2016 meeting, Council agreed to implement a number of improvements to the bus service, at an estimated average annual cost of $44,000 to HBRC. This cost can be met from existing budgets in the Long Term Plan.
Fare Revenue
15. For the ten months to April 2016, the bus service has collected $1,120,000 in fares (excluding GST). This equates to a 37.8% fare recovery rate. (Fare recovery is the portion of the total cost of the service that is recovered from fares).
Option A - All fares to remain unchanged for the 2016-17 year
16. Advantages in support of this option are:
16.1. The cost of providing public transport, as measured by the NZTA Cost Index for Public Transport, has not increased since the last fare increase; in fact it has decreased slightly.
16.2. The new lower contract cost which comes into effect on 1 August will have the effect of improving the fare recovery rate of our service considerably, even with the agreed improvements. Unless there was a substantial further decline in patronage or a significant increase in costs, it is highly likely that our fare recovery rate will exceed the 41% target in the Regional Land Transport Plan.
16.3. In a period of declining patronage such as we are currently experiencing, a fare increase could further increase the perceived “cheapness” of taking the car. Public transport best practice aims to set bus fares favourably against the cost of operating a car. In a period of low petrol prices, a fare increase could exacerbate the patronage decline.
16.4. Maintaining low Express fares could help to promote the new Route 10 Express service.
17. Disadvantages of this option are:
17.1. This option does not address the anomaly between the higher cost of taking the Route 12 bus service between Napier and Hastings (a 2-zone trip which takes an hour) and the faster, more direct Express services. New, larger buses are to be used on these routes and bike racks will now also be available; the existing fare structure does not recognise the improved service.
17.2. Clive residents do not get the benefit of a 1 zone fare, in recognition of the fact that they are travelling only half the distance.
17.3. School and tertiary students continue to pay the full adult fare on the Express service and this could be discouraging potential users.
Option B - All fares unchanged except for the Express services.
18. This Option would see Express service adult cash and smartcard fares increased to be consistent with Route 12 fares, and concession fares and a Clive zone boundary introduced.
19. This option entirely removes the distinction between fares on the current Route 12 services between Napier and Hastings and on the Express. The Express services (both via Clive and the new service via the Expressway) would have the same structure and fare levels as the Route 12 services, and Clive would become the zone boundary for the Route 11 Express.
20. The table below shows the current fare on Express routes for each passenger type and distance, with the Option B proposed fare alongside in brackets. All other fares would remain unchanged. The shaded cells indicate where passengers would pay a higher fare under this proposal.
Table 4 – Current and proposed cash fares for Option B
Cash
|
Adult |
Tertiary Student/Community Services Card |
Child/High School Student/Senior |
Clive to Napier or Clive to Hastings/H Nth (1 zone) |
$4.20 ($3.60) |
$4.20 ($2.40) |
$4.20 ($1.80) |
HNth/Hstgs to Napier/Taradale (2 zones) |
$4.20 ($5.40) |
$4.20 ($3.60) |
$4.20 ($3.00) |
Table 5 – Current and proposed GoBay Smartcard fares for Option B
GoBay Smartcard
|
Adult |
Tertiary Student/Community Services Card |
Child/High School Student/Senior |
Clive to Napier or Clive-Hastings/H Nth (1 zone) |
$3.65 ($2.88) |
$3.65 ($1.90) |
$3.65 ($1.43) |
HNth/Hstgs to Napier/Taradale (2 zones) |
$3.65 ($4.28) |
$3.65 ($2.86) |
$3.65 ($2.14) |
21. Advantages of this option are:
21.1. For most passengers, the benefits outlined in 16.1 to 16.3 would still apply.
21.2. This option addresses the anomaly between the higher cost of taking the Route 12 bus service between Napier and Hastings (a 2-zone trip which takes an hour) and the faster, more direct Express services.
21.3. This also recognises the improved service on Route 11 (bigger buses and bike racks) and the recommencement of a Route 10 Express service.
21.4. This option provides concession fares and a zone boundary for Express passengers which are consistent with our other services and may encourage greater use of the Express services.
22. Disadvantages of this option are:
22.1. Current Express adult passengers on Route 11 via Clive, if travelling from Havelock North/Hastings, would have a significant fare increase (28% on the cash fare, 17% on the smartcard fare) and this could cause some to cease using the service. However, all other passenger classes and all passengers to/from Clive would have cheaper fares.
23. Overall, if patronage stayed exactly as it is now, the fare revenue on this service would increase only slightly; the higher adult fares would be partially offset by the lower rates offered for concession passengers and Clive residents. However, it is also possible that the service would attract more passengers due to the lower fares offered to these groups.
Summary
24. The cost of operating the existing bus service has not increased since the last fare increase in 2014. The new contract price will improve the fare recovery rate of the service significantly (all other factors being equal). Patronage has declined over the last two years, and this is very likely to be connected to cheaper fuel prices; increasing fares overall is therefore likely to be counter-productive.
25. The new Route 10 Express service will offer a fast and convenient service to Hastings via Taradale and the HB Expressway. However, under the current fare structure, passengers on this service would pay less than on Route 12, which is a slower, less convenient trip.
26. Clive residents currently pay the same as passengers between Havelock North and Napier. The lack of concession fares on the Express services probably deters some users.
27. Providing concession fares and a Clive zone boundary would encourage greater use of Express services, but equalising Express fares with Route 12 could deter existing adult Express passengers, who currently make up around 80% of the users.
Discussion
28. HBRC staff and GoBus are not in favour of an across-the-board fare increase, for the reasons stated above.
29. However, we are aware that the lower Express fares are inconsistent, given that a better quality service is provided. We also believe that the introduction of concession fares and a Clive zone boundary would encourage use. However, this could be an “exchange” of passengers; we may lose adults in favour of more school children or tertiary students.
30. The new Route 10 Express is an unknown quantity at present. We would like to encourage as much use as possible and maintaining the fares at the current rate would help with this.
31. We therefore suggest that all fares should remain unchanged until the next review in a year’s time. However, the disparity between Route 12 and Express fares should be re-examined at that time.
Decision Making Process
32. Council is required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:
32.1. The decision does not significantly alter the service provision or affect a strategic asset.
32.2. The use of the special consultative procedure is not prescribed by legislation.
32.3. The decision does not fall within the definition of Council’s policy on significance.
32.4. The persons affected by this decision are existing and potential bus passengers in the Hawke’s Bay region.
32.5. Options that have been considered include do nothing.
32.6. The decision is not inconsistent with an existing policy or plan.
32.7. 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.
That Council: 1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion 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. 2. Receives and notes the Annual Bus Fares Review report. 3. Agrees to maintain bus fares unchanged for the 2016-17 year 4. Agrees to review fares in one year and to re-examine the structure of Express service fares at that time. |
Anne Redgrave Transport Manager |
Liz Lambert Chief Executive |
Wednesday 25 May 2016
SUBJECT: Recommendations from the Maori Committee
Reason for Report
1. The following matter was considered by the Maori Committee on 12 April 2016 and is now presented for consideration and approval.
Decision Making Process
2. This item has been specifically considered at the Committee level.
The Maori Committee recommends that Council: 1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion 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. Committee Membership 2. Confirms the appointment of Duane Culshaw as the Kahungunu Executive representative on the Maori Committee and Elizabeth Palmer as a proxy member. 3. Confirms the Terms of Reference as amended to include current Committee Membership. Reports Received 4. Notes that the following reports were received at the Maori Committee meeting. 4.1. Lake Tutira Science Update 4.2. Te Karamu Enhancement Strategy and Operational Plan 4.3. Enviroschools Hawke’s Bay 4.4. Statutory Advocacy Update. |
Liz Lambert Chief Executive |
|
Amended Maori Committee Terms of Reference |
|
|
Wednesday 25 May 2016
Subject: Recommendations from the Environment and Services Committee
Reason for Report
1. The following matters were considered by the Environment and Services Committee on 11 May 2016 and are now presented for consideration and approval.
Decision Making Process
2. These items have all been specifically considered at the Committee level.
The Environment and Services Committee recommends that Council: 1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy and that Council can exercise its discretion and make decisions on these issues without conferring directly with the community. Kohupātiki Marae - Awa Enhancement for Matatini 2. Agrees to staff working in partnership with Kohupātiki Marae, prior to Matatini, to trial excavation of sediment and weed over approximately 200m in the vicinity of the Marae with funding provided up to the amount of $44,500. 3. Agrees to staff working in partnership with Mangaroa Marae and upstream landowners to investigate, and if possible implement, the augmentation of flows in the Karewarewa Stream throughout Matatini. 4. Agrees to continue investigations to assess options for reducing the impact of seasonal aquatic weed growth and sedimentation throughout the Karamu Stream and Clive River schemes. Te Mata Park 10 Year Management Plan 5. Grants funds from the Council’s Community Facilities Fund to fund works outlined in the Te Mata Park works programme to a maximum of $500,000 as detailed below.
6. Proposes to Te Mata Park Trust that the two organisations work in partnership to develop a Park Asset Management Plan to inform its ongoing operational needs. The Plan would include estimated long term costs for managing and maintaining the Park, and options for how that management and maintenance could best be delivered and funded. It should be noted that the cost of this work may be sought by the Trust through a submission to the HBRC Annual Plan 2016-17. Tangoio Soil Conservation Reserve Management Plan 7. Adopts the Tangoio Soil Conservation Reserve Management Plan for the period 1 July 2016 to 30 June 2021. 8. Agrees to transfer $100,000 in the 2016-16 financial year, and in subsequent years $100,000 per annum plus a cumulative inflation allowance, from the Tangoio Soil Conservation Reserve fund to the Maungaharuru-Tangitū catchment fund until the 2020/21 financial year, after which the annual amount may be reviewed. Biosecurity Operational Plans for 2016-17 9. In accordance with the requirements of the Biosecurity Act 1993 adopts the: 9.1. Animal Pest Operational Plan 2016-17 9.2. Plant Pest Operational Plan 2016-17 9.3. Phytosanitary Operational Plan 2016-17. Reports Received 10. Notes that the following reports were provided to the Environment and Services Committee meeting: 10.1. Upper Tukituki Scheme Review (left to lie on the table for August E&S meeting) 10.2. Cape to City Update 10.3. Land Science Update. |
Mike Adye Group Manager |
Liz Lambert Chief Executive |
Wednesday 25 May 2016
Subject: Deloitte RWSS Peer Review
Reason for Report
1. To provide the background to the Deloitte’s Peer Review of the Ruataniwha Water Storage Scheme (RWSS) and to also provide the content of the Peer Review that Deloitte’s propose to cover at this meeting.
Comment
2. At its meeting in June 2014 when Council resolved to invest up to $80 million in the RWSS subject to four conditions precedents being satisfied – a further resolution stating Council also needed to be satisfied with:
“A further review of the RWSS business case as at the new financial close and Council being satisfied with this advice and the steps taken (if any) by Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) to resolve any key issues of concern (if any) then identified in the course of Deloitte’s review.”
3. During early 2016, at a Council workshop, Deloitte’s discussed the issues they proposed to cover in their Peer Review of the RWSS and councillors also had the opportunity to clarify their expectations of this Peer Review. Finally, in March 2016, Council resolved as part of the LTP amendment covering the provision of environmental flows in the Tukituki River, that Deloitte’s provide advice as part of their Peer Review whether cashflows from the RWSS will provide for the costs of the purchase of 4 million cubic metres of water per annum from year 11 onwards.
4. Two Council meetings have been planned to receive the RWSS Peer Review from Deloitte’s. These meetings are:
4.1. 25 May 2016 – Council meeting
4.2. 15 June 2016 – Extraordinary Council meeting.
5. Deloitte’s approach to this Peer Review is to deliver a presentation at the 25 May Council to provide a preliminary review. The content of the presentation is appended to this paper as Attachment 1, and copies of this presentation will be provided to councillors at the meeting.
6. Any areas that require further clarification/details, or where areas have not been covered in the presentation and councillors require clarification on these issues, will be provided at a further presentation at the Extraordinary meeting on 15 June. At that meeting a formal report will be distributed by Deloitte’s and a further presentation by Deloitte’s should enable the Peer Review process to be completed at that meeting.
Decision Making Process
7. As the material provided in this paper, the contents as appended in Attachment 1 and in the Deloitte’s PowerPoint presentation do not at this time require a decision of Council, then the provisions of the Local Government Act covering the decision making process do not apply.
That Council: 1. Receives the presentation from Deloitte’s covering the preliminary Peer Review of the RWSS. |
Paul Drury Group Manager |
Liz Lambert Chief Executive |
Content of Deloittes Presentation on RWSS Peer Review |
|
|
Content of Deloittes Presentation on RWSS Peer Review |
Attachment 1 |
Content of Deloitte’s Presentation on the RWSS Peer Review
25 May 2016 Council Meeting
Purpose of the Session
Ø Provide Councillors with an update as to our work
Ø Provide Councillors with additional information and analysis
Ø Provide preliminary answers to critical questions
Ø Provide Councillors with an opportunity to raise any additional issues/concerns they would like the review to address
Scope
Ø What have we been asked to do
Base Case
Ø Key Assumptions
Key Investor Terms
Ø Bank
Ø CIIL
Ø Institutional Investor
Ø Farmer Investors
Ø HBRIC
Base Case
Ø Financial returns for investors
Risks
Ø Construction
Ø Uptake
Ø Opex
Ø Refinancing
Risk Mitigation
Ø How are risks mitigated
Ø How are risks shared
Water Uptake
Ø Evidence to support assumptions
Sensitivity Analysis
Ø How investor returns and capital requirements vary with different levels of water uptake
Key Questions
Ø What does breakeven mean
Ø What is the breakeven water volume
Ø How is CIIL capital retired
Ø Who wears construction risk
Ø Who wears uptake risk
Ø Who wears opex risk
Ø Under what circumstances will HBRIC have to put in more capital
Ø When will HBRIC start to receive returns
Ø Can HBRIC pay a 6% return on its investment in RWSS
Wednesday 25 May 2016
Subject: HBRIC Ltd May 2016 Update
Reason for Report
1. The HBRIC Ltd report on its activities over the May 2016 period is attached.
2. The HBRIC Ltd Chief Executive Andrew Newman, Company Manager Heath Caldwell, and representatives of the Board of Directors will be present at the meeting to speak to the update.
Decision Making Process
3. Council is required to make every decision in accordance with the Local Government Act 2002 (the Act). Staff have assessed the 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.
1. That Council receives and takes note of the “HBRIC Ltd May 2016 Update” report. |
Liz Lambert Chief Executive |
|
HBRIC Ltd May 2016 Update |
|
|
Wednesday 25 May 2016
SUBJECT: Monthly Work Plan Through June 2016
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 |
CE’s Office |
|
1. Completion of recommendations for Annual Plan submissions 2. Annual Plan Hearings 3. Meeting with CE and Exec staff of Ministry for the Environment 4. Attendance at Sports Council, REDS Governance, HB LASS and Intersectoral meetings |
External Relations |
Communications |
5. Social media focus with ‘Did you Know’ HBRC ads pushing new website on social media and in community papers. 6. Staff are assisting with resource development for TANK Plan Change, Tukituki implementation, Coastal Hazards strategy and Local Elections 2016. 7. Support for: Wairoa Why Not Awa day on 24 June, Youth Environment Council ‘Green Games’ on 29 June |
|
Transport |
8. Planned bus service improvements have now been agreed upon and will commence on 1 August. A marketing campaign will commence about one month out from the start date. New timetables are also being designed. A review of bus fares is the subject of a report elsewhere in this agenda. 9. Driver licensing. The establishment of a governance group for the management of the proposed driver licensing fund has been slower than hoped, as we are working with other agencies. Information packs and application forms have been drafted. 10. Regional Land Transport Plan – meetings with neighbouring regional councils will proceed soon, but the timeline for commencement of the Plan has been extended to await NZTA guidelines on the use of the business case approach. 11. RoadSafe Hawke’s Bay’s Road Safety Expo takes place during the week of 11-16 May. This is the largest event on the RoadSafe calendar with 2,500 high school students expected to attend. |
Corporate Services |
|
12. Deloitte Peer Review - 15 June Extraordinary Council meeting. 13. Final approval for RWSS – Monday 27 June Extraordinary Council meeting. 14. Final Annual Plan and amended LTP to 29 June Council meeting. 15. Annual Plan & amendment to LTP consultation received 205 submissions. 16. Staff responses to those submissions will be distributed to Councillors on Wednesday 1 June along with the Agenda and schedule for the 8 June meeting to hear and deliberate on submissions. |
Asset Management & Biosecurity |
Coastal |
17. Coastal Hazards Strategy TAG will hold drop in sessions for Westshore and Haumoana/Te Awanga/Clive residents late May or early June to improve community knowledge about coastal hazards and risks. 18. Stage 2 – the development of decision making framework is progressing and programmed for completion in time for adoption by the Joint Committee on 8 August. |
|
Land Management |
19. 105,000 plants for the riparian planting program arrive and are being distributed to 34 farms, specific on-ground projects within both the Cape to City and Whangawehi Catchment group project and to support several projects being undertaken by the works group. 20. Staff a currently putting together the 2016-17 Operational Plan and Land Management Strategy which will be presented to Council in August 2016. 21. A meeting with all Regional Council Land Management teams along the East Coast of the North Island (HBRC, GWRC, Horizons and Gisborne District Council) has been organised in early June to consider opportunities for closer working relationships and collective approaches to addressing challenges in hill country. 22. The summer student (Old Man’s Beard) weed control team, supervised by James Powrie has been nominated for a SafeGuard NZ Workplace Health & Safety Award for the efforts and success they have had this year in improving the Health and Safety aspects of the program |
|
Engineering & Asset Management |
23. Ebbett’s stopbank (2.5 km) on the Tutaekuri River under construction – completion early June. 24. Project management for $15M Waipaoa River stopbank upgrade (Gisborne DC) ongoing. 25. GDC small projects – flood hazard mapping for Whatatutu Water supply, Wainui Beach small wall. 26. Gravel Review –EMS looking into consenting issues, and ultimately funding for ongoing management, morphological model being calibrated. 27. Heretaunga Plains Flood Control Scheme – Hydrologic review under way as initial stage in level of service improvement project. 28. Lake Tutira – riparian restoration, includes low flow diversion of Sandy Creek, other minor flood control works. 29. Discussion with Napier City Council re pipe network modelling 30. Hastings District Council – assisting with Iona triangle residential development, Omahu Industrial, Irongate Industrial |
|
Biosecurity |
31. Tenders to be called for establishing bait station networks on over 50,000ha of land from which TB Free NZ will be withdrawing in 2016-17 32. Cape to City initial 8,000ha control of predators continues and once complete a follow up network will be put in place for ongoing maintenance. 33. Cape to City research projects with Landcare Research being finalised. Significant funding commitment from LCR for 16-17 biodiversity/biosecurity research directly related to HBRC biosecurity/biodiversity outcomes. 34. Velvet leaf incursion discussions with MPI continuing re longer term management options. 35. Staff continue to progress the high UMF Manuka plantation draft memorandum of Understanding with Comvita. Small scale planting trials to test flowering timing of cultivars to begin. |
Asset Management & Biosecurity |
Open Spaces |
36. Waitangi Estuary Enhancement funding applications decisions to be announced June 2016. 37. Tutira Regional Park track signage being installed June 38. Pekapeka Poukawa Stream F&B planting to be held Sunday 12 June. 39. Karamu Stream Community and Public plantings at Whakatu Saturday 4 June, Ruahapia Saturday 11 June, Crosses Rd Havelock North Saturday 18 June. 40. Waitangi Regional Park F&B Planting Saturday 30 July 41. Taipo Stream planting June via Hohepa contract. 42. Feasibility and design Papakiri Stream low flow connect and Kahikanui Stream Peak Flow runoff June / July 43. Pekapeka Western Wetland enhancement tree felling completed. Fencing to be completed by neighbouring landowner. |
Resource Management |
Compliance |
44. The Waihi Dam investigation has been completed and the file was sent to Crown Solicitors, Meredith Connell, for independent assessment on whether or not there was sufficient evidence to undertake enforcement action against any party. As a result, charges have been laid against two companies involved in the incident. Charges have been laid at the Wairoa District Court, there is no indication of what pleas might been entered or any dates set for hearing at Court. |
|
Client Services |
45. Following the successful postal survey carried out in May targeting homes in high PM10 areas of Mayfair, Mahora, Akina and Parkvale in Hastings that have not yet accessed funding to replace non-compliant fires, another mail out will take place in June targeting Flaxmere. This will be followed in July with a mail out to Napier South. Response rates are good, feedback positive, and requests for financial support encouraging. |
Resource Management |
Science |
Land Science 46. Finalise draft new Land Science Strategy 47. Continue Land use/nutrient loss modelling for TANK area 48. Select new wetland monitoring sites for new SoE programme 49. Developing Riparian mapping methodology 50. Develop new regional peat soil monitoring programme Water Quality and Ecology 51. Completing the last 3 WQE SOE reports for this round, by end of June 52. Planning the next stage of shading trials for optimising riparian designs for suppressing instream weed growth 53. Finalising design of floating fish ramp and splitting mould cost amongst stakeholders 54. Investigating potential options to improve water quality in Tutira Lake 55. Developing a monitoring programme to assessing native fishery health in the mainstem of the Tukituki River 56. Investigating options for assessing wetland invertebrate and plant community health 57. Updating monitoring programme in the Tukituki to fulfil requirements of PC6 58. Exploring the preliminary results of monitoring from Whakaki Lake Coastal and Estuarine Water Quality and Ecology 59. Progressing investigations into the state of the Ahuriri Estuary 60. Repairing communication between base and the Coastal buoy Hawqi 61. Finalising coastal SOE and recreational WQ reports Groundwater 62. Heretaunga Plains model progressing, with increased GNS Science support about to be engaged. Steady state model has being revised and re-calibration is almost complete. 63. Drilling program for Ruataniwha monitoring bores is underway, as part of Tukituki plan implementation. 64. Collaborated with NIWA and GNS Science to complete design of cropping lysimeter for installation at Otane. 65. Groundwater and surface water sampling has been undertaken in Heretaunga Plains, for identification of groundwater sources and age. Hydrology 66. Establishment of rainfall-runoff and routing model (SOURCE) for upper TANK catchments is well underway (to support Heretaunga groundwater model) Air/Climate. 67. A year-long source apportionment study at Awatoto is underway. 68. NIWA is developing a tailored seasonal forecast for Hawke’s Bay based on its previous work identifying the region’s climate drivers. Initial results are expected at the end of June. |
Strategic Development |
Resource Management Planning |
69. Next TANK Collaborative Stakeholder Group meetings scheduled 24 May (#20) and 9 August (#21). Topics at Meeting #20 include confirming values & attributes for freshwater in TANK catchments, with particular focus on Ngaruroro. Iwi/hapu engagement plan is now under further development in liaison with a Contractor. 70. Awaiting next steps regarding Minister for the Environment’s handling of the Water Conservation Order application for the Ngaruroro and Clive rivers. Application was lodged in Dec 2015. 71. Staff continue liaising with MFE officials to reorientate MFE-funded project to develop national criteria and methodology for the identification of outstanding freshwater bodies. Reorientation is necessary following delivery of expert advice in mid-stages of the Project that mean last stages cannot be completed as originally programmed by June 2016. 72. Stage 2 (of 3 stages) is underway on the Heretaunga Plains Urban Development Strategy 5-year review. Next meeting of the HPUDS Implementation Working Group is scheduled 30 June to consider Stage 2 reporting and next steps. 73. Report to be presented to 1 June Regional Planning Committee meeting on Regional Resource Management Plan’s effectiveness for managing effects of oil and gas exploration and development activities. 74. Part of the last remaining appeal (by Fish & Game) relating to wetlands in the RRMP and Plan Change 5 is unresolved. On 13 May, parties forwarded an agreed timetable to the Environment Court for evidence exchange and a possible Court hearing end of August or later. 75. Ongoing involvement in 10 appeal proceedings for proposed Hastings District Plan review. Mid-late 2016 likely to involve Environment Court-assisted mediation for several of those appeals. 76. Draft revisions to RPC’s Terms of Reference were presented to RPC for feedback and further revisions to be presented to RPC’s meeting in August. Revisions follow enactment of the Hawke's Bay Regional Planning Committee Act 2015. 77. Scoping work commenced on preparation of an HBRC/Maori strategic relationships plan. 78. Scoping work commenced on refreshing the HBRC Strategic Plan. 79. Supporting Stage 2 community engagement programme on Clifton to Tangoio Coastal Hazard Management Strategy project as required. 80. Supporting preparation of a plan to implement the Regional Biodiversity Strategy in regional planning documents where relevant. 81. Supporting preparation of planning to implement PC6 for the Tukituki River catchment. 82. A meeting with key stakeholders on a draft Regional Energy Strategy is planned for early June and presentation to the Council thereafter. |
Strategic Development |
Economic Development |
83. Finalising the Regional Economic Development Strategy and Action Plan with regional partners and central government, and scoping projects proposed for HBRC lead. 84. Commencing a study of tourism opportunities related to Rocket Lab’s Mahia Peninsula operations in partnership with Wairoa and Gisborne district councils, HB Tourism and the Ministry of Business, Innovation and Employment. 85. Undertaking an assessment of the Regional Business Partner delivery model and performance. |
Emergency Management |
|
86. The Coordinating Executives Group will consider the final review and implementation of the review of the Hawke’s Bay CDEM coordination centres. This review was based on the in principle decision to consolidate the five emergency management coordination centres currently ion Hawke’s Bay. 87. Other pieces of work to be completed in the next month are: a. Consultation and decision on the in principle decision to reorganise the local emergency management officers under the Group Office. b. Finalisation of the Group Training Strategy including a training and exercise programme c. Finalisation of the Group Community Resilience Strategy including the prioritisation and programme of priority communities to develop Community Resilience Plans. |
Decision Making Process
2. Council is required to make every decision in accordance with the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded that as this report is for information only and no decision is required, the decision making requirements of the Act do not apply.
1. That Council receives the Monthly Work Plan Through June 2016 report. |
Mike Adye Group Manager |
Paul Drury Group
Manager
|
Ian Macdonald Group Manager/Controller |
Iain Maxwell Group Manager |
James Palmer Group Manager |
Liz Lambert Chief Executive
|
Wednesday 25 May 2016
Subject: Minor Items not on the Agenda
Reason for Report
This document has been prepared to assist Councillors note the Minor Items Not on the Agenda to be discussed as determined earlier in Agenda Item 6.
Item |
Topic |
Councillor / Staff |
1. |
|
|
2. |
|
|
3. |
|
|
4. |
|
|
5. |
|
|
Wednesday 25 May 2016
SUBJECT: Confirmation of the Public Excluded Minutes of the Regional Council Meeting Held on 27 April 2016
That the Council excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 15 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:
|
Paul Drury Group Manager |
Liz Lambert Chief Executive |
Wednesday 25 May 2016
Subject: Waihi Dam Update
That Council excludes the public from this section of the meeting, being Agenda Item 16 Waihi Dam Update 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:
GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED |
REASON FOR PASSING THIS RESOLUTION |
GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION |
Waihi Dam Environmental Incident Update |
S6(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 avoid prejudicing the maintenance of the law, including the prevention, investigation, and detection of offences and the right to a fair trial
|
The Council is specified, in the First Schedule to this Act, as a body to which the Act applies. |
Wayne Wright Manager Resource Use |
Iain Maxwell Group Manager |