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

 


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendation

1.      That Council receives the report “Follow-up Items from Previous Regional Council meetings”.

 

 

Leeanne Hooper

Governance & Corporate Administration Manager

Liz Lambert

Chief Executive

 

Attachment/s

1

Follow-ups from Previous Regional Council Meetings

 

 

  


Follow-ups from Previous Regional Council Meetings

Attachment 1

 


Follow-ups from Previous Regional Council Meetings

Attachment 1

 




HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendation

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

 

 

  


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendations

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

 

Attachment/s

There are no attachments for this report.  


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendations

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

 

Attachment/s

There are no attachments for this report.


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendations

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

 

 

Attachment/s

1

Amended Maori Committee Terms of Reference

 

 

  


Amended Maori Committee Terms of Reference

Attachment 1

 



HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendations

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.

 

 

Item

Detail

Year

Indicative cost

1

Main gate development

Loop track

2016-17

$40,000

2

Safety and way finding signage

Design and production

2016-17

$40,000

3

Tauroa Road entrance upgrade

Drinking water, bins, information boards, native amenity planting etc

2016-17

$20,000

4

Timber management

Harvest planning and harvesting

Replanting

2017-18

2018-19

$120,000

5

Tracks

Mountain bike track extensions

Installation of safety and wayfinding signage

2016-17

$100,000

6

Peak House

Upgrade to accommodate alternative uses

2016/17

$110,000

7

Amenity additions

Composting toilets

2017-18

$70,000

 

 

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
Asset Management

Liz Lambert

Chief Executive

 

Attachment/s

There are no attachments for this report.  


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendations

That Council:

1.      Receives the presentation from Deloitte’s covering the preliminary Peer Review of the RWSS.

 


 

Paul Drury

Group Manager
Corporate Services

Liz Lambert

Chief Executive

 

Attachment/s

1

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

 

   


HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendation

1.      That Council receives and takes note of the “HBRIC Ltd May 2016 Update” report.

 

 

Liz Lambert

Chief Executive

 

 

Attachment/s

1

HBRIC Ltd May 2016 Update

 

 

  


HBRIC Ltd May 2016 Update

Attachment 1

 





HAWKE’S BAY REGIONAL COUNCIL

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.

 

Recommendation

1.      That Council receives the Monthly Work Plan Through June 2016 report.

 

 

Mike Adye

Group Manager
Asset Management

Paul Drury

Group Manager
Corporate Services

 

 

Ian Macdonald

Group Manager/Controller

 

Iain Maxwell

Group Manager
Resource Management

 

James Palmer

Group Manager
Strategic Development

 

Liz Lambert

Chief Executive

 

 

Attachment/s

There are no attachments for this report.  


HAWKE’S BAY REGIONAL COUNCIL

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.   

 

 

 

 

  


HAWKE’S BAY REGIONAL COUNCIL

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:

 

 

 

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION

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

Confidential Supporting Documents for Dividend Payments By HBRIC Ltd Report

7(2)(b)(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 otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

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

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

Confirmation of Minutes of the Public Excluded Regional Council Meetings held on 30 March and 20 April 2016

7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons

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

 

 

 

 

Paul Drury

Group Manager
Corporate Services

Liz Lambert

Chief Executive

 

 


HAWKE’S BAY REGIONAL COUNCIL

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
Resource Management