Agenda of Regional Council Meeting

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 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 541

DP 11559

CT C1/146

- Transfer

1.1.2 Lot 17

DP 13899

CT F4/36

- Transfer

1.1.3 Lot 37

DP 13898

CT F4/412

- Transfer

1.1.4 Lot 1

DP 11873

CT D1/484

- Agreement for Sale and Purchase

- Transfer

1.1.5 Lot 1

DP 11873

CT D1/484

- Agreement for Sale and Purchase

1.1.6 Lot 36

DP 13692

CT F2/1275

- Transfer

1.1.7 Lot 28

DP 12309

CT D2/502

- Transfer

1.1.8 Lot 120

DP 13111

CT E3/560

- Agreement for Sale and Purchase

1.1.9 Lot 72

DP 13695

CT F2/132

- Transfer

1.1.10 Lot 1

DP 14400

CT G1/1303

- Agreement for Sale and Purchase

1.1.11 Lot 102

DP 7201

CT B4/820

- Agreement for Sale and Purchase

1.1.12 Lot 55

DP 13692

CT V3/674

- Agreement for Sale and Purchase

- Transfer

1.1.13 Lot 24

DP 10513

CT HBC2/637

- Agreement for Sale and Purchase

1.1.14 Lot 53

DP 4488

CT H355/177

- Agreement for Sale and Purchase

1.1.15 Lot 120

DP 13111

CT HBE3/560

- Agreement for Sale and Purchase

1.1.16 Lot 102

DP 7201

CT HB44/820

- Agreement for Sale and Purchase

1.1.17 Lot 58

DP 11604

CT HBC2/568

- Agreement for Sale and Purchase

1.1.18 Lot 1

DP14400

CT HBG1/1303

- Agreement for Sale and Purchase

1.1.19 Lot 33

DP 14227

CT G1/28

- Agreement for Sale and Purchase

1.1.20 Lot 23

DP 14228

CT G1/45

- Agreement for Sale and Purchase

- Transfer

1.1.21 Lot 9

DP 14228

CT B1/42

- Agreement for Sale and Purchase

- Transfer

1.1.22 Lot 29

DP 14227

CT G1/27

- Agreement for Sale and Purchase

- Transfer

1.1.23 Lot 343

DP 8803

CT D4/1376

- Agreement for Sale and Purchase

- Transfer

1.1.24 Lot 275

DP 10775

CT B2/876

- Agreement for Sale and Purchase

- Transfer

1.1.25 Lot 260

DP 7074

CT C4/332

- Agreement for Sale and Purchase

- Transfer

1.1.26 Lot 2

DP 10780

CT C2/350

- Agreement for Sale and Purchase

3967

3968

3969

3970

3971

3972

3973

3974

3975

3976

3977

3978

3987

3996

3988

3989

3990

3991

3992

3993

3997

3998

3999

4000

4001

4002

4003

4004

4005

4006

4009

4007

4008

4010

20 June 2016

27 June 2016

29 June 2016

1 July 2016

5 July 2016

8 July 2016

3 August 2016

14 July 2016

19 July 2016

20 July 2016

27 July 2016

3 August 2016

5 August 2016

9 August 2016

15 August 2016

18 August 2016

22 August 2016

18 August 2016

23 August 2016

1.2

Staff Warrants

1.2.1 T. Norris

C. Drury

E. Petuha

G. Shirras

L. Tinker

R. O’Leary

P. Barrett

G. Rushworth

(Delegations under Resource Management Act 1991; and Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174)

1.2.2 G. Rushworth

T. Norris

(Delegations under Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174))

1.2.3 Martin Moore

(Delegations under Section 318(1) of the Maritime Transport Act 1994 in accordance with appointments made in Section 2 of the Tier II Oil Spill Contingency Plan adopted by the Hawke’s Bay Regional Council on 21 February 2007; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174))

1.2.4 Martin Moore

(Delegations under Section 177 of the Local Government Act 2002 (s.171 and 172))

3980

3981

3982

3983

3984

3985

3986

3979

3980

3994

3995

6 July 2016

6 July 3016

6 July 2016

27 July 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 policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Confirms the action to affix the Common Seal.

Authored by:

Diane Wisely

Executive Assistant

Approved by:

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

SUBJECT: Setting of Rates for the 2016-17 Financial Year

Reason for Report

1. Following the adoption of the 2016-17 Annual Plan, the rate requirements have been calculated for the 2016-17 financial year as included in the Long Term Plan 2015-2025(LTP 2015-2025), and it is now necessary to resolve to set the rates for the period 1 July 2016 to 30 June 2017 as outlined in Attachment 1 to this paper.

Commentary

2. The Local Government (Rating) Act 2002, Section 23 sets out the procedure for setting rates. The main issues are that rates must:

2.1. Be set by a resolution of the local authority

2.2. Relate to a financial year

2.3. Be set in accordance with relevant provisions of the local authority’s Long Term Plan and the Funding Impact Statement for the financial year set out in the Annual Plan 2016-2017.

3. Council approved the level of rates to be collected, and calculation factors in the Funding Impact Statement for 2016-17 which was included in the Annual plan 2016-17 and which complied with the revenue and financing policy in the LTP 2015-25. The Annual Plan 2016-17 was adopted by Council on 29 June 2016. The rates included in the plan have been consulted on by a special consultative procedure as part of the Annual Plan process.

4. The Local Government (Rating) Act 2002, sections 13 and 14 (General Rate) section 15 (Uniform Annual General Charge) and sections 16, 17 and 18 (Targeted Rates) clarifies how each such rate should be set.

5. Section 23 of the Local Government (Rating) Act 2002 does not require that the rating resolutions included in this paper be publicly notified, as details of the rates have been included in the Council’s 2016-17 Annual Plan.

6. The resolutions and Attachment 1 of this paper have been reviewed by Philip Jones of PJ Associates and any issues raised by him have been included in this paper.

7. Council’s lawyers have been requested to provide an opinion on whether the resolutions as drafted in this paper comply with the provisions of the Local Government Act 2002 and the Local Government (Rating) Act 2002. This opinion is appended to this paper as Attachment 2.

Decision Making Process

8. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded the following:

8.1. The rates for 2016-17 were included in the LTP 2015‑2025 and the Annual Plan 2016-2017 have been consulted on by the use of a special consultative procedure.

8.2. Council has no option but to set the rates any one financial year in order to ensure that the services the Council provides are fully funded.

8.3. Persons affected by the decision in this paper will be the ratepayers within the Hawke’s Bay region.

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

Recommendations

That Council:

1. Agrees that the decisions to be made on the setting and assessing of rates cover information in the Funding Impact Statement for the 2016-17 year which was included in the LTP 2015-25 and the Annual Plan 2016-17 as required by Section 95 of the Local Government Act 2002. These decisions require special consultative procedures under Section 83 of the Act, such special consultative procedure having been previously carried out on the 2016-17 year which was included in the LTP 2015-25 and the Annual Plan 2016-17.

2. Resolves the setting of rates for the 2016-17 financial year and sets the following rates under the Local Government (Rating) Act 2002, on rating units in the region for the financial year commencing on 1 July 2016 and ending on 30 June 2017. These rates are set in accordance with the relevant provisions of the Long Term Plan 2015-25 and Funding Impact Statement for the financial year included in the Annual Plan 2016-17.

2.1. A general rate is set under sections 13 and 131 of the Local Government (Rating) Act 2002 on land value as set out in Attachment 1, and this attachment forms part of this resolution.

2.2. A uniform annual general charge is set per separately used or inhabited part of a rating unit under section 15(1)(b) of the Local Government Rating Act 2002 as set out in Attachment 1, and this attachment forms part of the resolution.

2.3. The following differential targeted rates are set under section 16 of the Local Government (Rating) Act 2002 as set out in Attachment 1, and this attachment forms part of this resolution including:

2.3.1. Subsidised Public Transport

2.3.2. Heretaunga Plains Flood Control Scheme

2.3.3. Upper Tukituki Catchment Control Scheme

2.3.4. Central & Southern Area Rivers & Streams

2.3.5. Wairoa River and Streams Scheme

2.3.6. Various Stream and Drainage Schemes

2.3.7. Healthy Homes – Clean Heat Financial Assistance

2.3.8. Clean Heat and Insulation Loans

2.3.9. Economic Development.

2.4. The following uniform targeted rate is set under section 16 of the Local Government (Rating) Act 2002 as set out in Attachment 1, and this attachment forms part of this resolution:

2.4.1. Plant Pest Strategy

2.4.2. Regional Animal Pest Management Strategy

2.4.3. Sustainable Land Management

2.4.4. Pest Control - Forestry

2.4.5. Emergency Management

3. Agrees that the due date for payment of rates as set by the Hawke’s Bay Regional Council for the financial year commencing 1 July 2016 and ending on 30 June 2017 be 1 October 2016.

4. Agrees that, under sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, a 10% penalty be applied to unpaid current rates as at 1 February 2017.

5. Agrees that the rates set for the financial year commencing on 1 July 2016 and ending on 30 June 2017, as set out in Attachment 1, are inclusive of GST.

Authored by:

Trudy Kilkolly

Financial Accountant

Approved by:

Paul Drury

Group Manager
Corporate Services

Attachment/s

1	Rates for the Period 1 July 2016 to 30 June 2017
2	Legal Opinion on Rates Resolution

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

SUBJECT: Financial Report for 12 Months Ended 30 June 2016
including Draft Annual Report 2015-16 Adoption for Audit

Reason for Report

1. The purpose of this paper is to provide explanations covering variances both from the re-forecast budgets and from Annual Plan budgets for year ended 30 June 2016, and to provide the draft Annual Report for Council to adopt before forwarding to the Audit Office to form the basis of their audit.

Council Financial Overview

2. The financial overview (Attachment 1) for the year ended 30 June 2016 is set out in a similar format as Council receives during the year. The emphasis in this report is to provide explanations for variances (actual compared to reforecast) as:

2.1. Operating Account and Scheme Reserves

2.2. Balance Sheet

2.3. Cashflow Statement

2.4. Capital Activity Summary.

3. This overview does not form part of the published 2015-16 Annual Report.

Draft 2015-16 Annual Report Document

4. The report (Attachment 2) includes the following information.

Chairman and Chief Executive Commentary

5. This provides the introduction to the performance overview, covers the issues raised in the Long Term Plan Consultation Document and how these have been achieved during the 2015-16 year.

6. Because of the need for Council to provide information and comment on the Havelock North water crisis, this commentary is in draft and will be refined before the final Annual Report is provided to Council for adoption on 28 September.

Financial Reporting Benchmarks

7. These disclose Council’s financial performance in relation to various benchmarks to enable the assessment of whether Council is prudently managing its revenues, expenses, assets, liabilities, and general and financial dealings. The Local Government (Financial Reporting and Prudence) Regulations 2014 set out the requirements and format of reporting against these benchmarks.

Service Performance Groups of Activity

8. This section of the report covers the extent to which Council has been able to deliver on the levels of service and performance targets set out in the Annual Plan for 2015-16 under each group of activities. Financial variances (Actual to Annual Plan) are included for variances $50,000 and above.

Management Statements

9. This section covers Maori contributions to Council decision making processes, Council Controlled Organisations and implementation of national policy statements and environmental standards.

Financial Statements

10. This section reports Council’s financial results and notes to the accounts.

11. The Draft Annual Report is provided as Attachment 2, and has only been distributed to Councillors under separate cover. It is available to members of the public electronically only, on Council’s website as part of this Agenda.

Audit

12. The Draft Annual Report appended as Attachment 2 to this paper will, on confirmation by Council at this meeting, be forwarded to Audit for the audit process to be finalised.

13. The final audited Annual Report will be tabled for adoption at Council’s September meeting subsequent to being discussed at the Finance Audit and Risk Committee on Tuesday 20 September 2016.

Regional Disaster Damage Reserve

14. Council resolved during March 2014 that this reserve should maintain a balance of funds of between $2.75 M and $3.75 M. At this time of year Council needs to consider whether to tag operating cash balances to fund a shortfall, if any, in investments for Disaster Damage Reserve.

15. The market value of investments held in the Regional Disaster Damage Reserve is $3.5 M at 30 June 2016. At that date the fund is therefore within the reserve limits set by Council and therefore it is proposed that no action should be taken to tag any cash operating balances to increase the value of this fund.

16. The Regional Disaster Damage Reserve has been set up to assist in the funding for:

16.1. Cost of responding to and managing an event

16.2. Cost of reinstatement of any uninsured assets (eg, pathways on top of stopbanks)

16.3. Any difference between the deductible and the threshold for eligibility for central government assistance (Government covers 60% of the loss in the event of a disaster)

16.4. To fund the policy excess of $1.5 M included in the policy with private insurers, which covers 40% of the loss up to $24 M in the event of a disaster

16.5. The possibility of the cost of reinstating the level of service provided by the asset being considerably more than the optimised replacement value.

17. At 30 June 2016, 72% of this fund was held in New Zealand bonds and short term bank deposits with the remaining 28% invested in New Zealand and overseas equities. The last financial year has seen considerable pressure on the value of international equities which has resulted in the total funds showing a return of 2.5%.

18. Council’s Investment policy states under section 8.5 that investment in equities in the Regional Disaster Reserve fund are limited to an overall maximum of 30% of that fund and are limited to New Zealand shares (up to 10%) and international shares (up to 22.5%). At the end of 30 June 2016 28% of the fund was invested in equities.

Revaluation of Council’s Assets

19. The following Council asset groups are subject to revaluation and have been incorporated in the draft Annual Report figures presented to this meeting.

Infrastructure Assets

20. These assets were last revalued as at 30 June 2014; Council's current policy is to revalue these assets every three years, therefore the next revaluation is due on 30 June 2017.

Environmental Monitoring Assets

21. This valuation includes 206 sites including hydrometric, air quality, lake and other monitoring sites. An independent report has been received that validates Council’s current book value of $3,000,000 for these assets.

22. These assets are valued every three years, the next revaluation therefore will be due on 30 June 2019.

HBRC’s Operational Land and Buildings

HBRC Dalton Street Administration Building

23. This land and building has a book value of $6.9 million at 30 June 2016. HBRC’s valuers have revalued this asset as at that date at $8.6 million, an increase of $1.7 million over book value. This increase reflects the market movements in Hawke’s Bay’s commercial property market and the location and condition of the Dalton Street building.

HBRC Other Land and Buildings

24. Included in this category are HBRC’s buildings in Wairoa, Waipukurau, Works Group in Guppy Road, Allen Road Nursery in Napier, and the office building in Raffles Street

25. The book value of this land and building is $2.76 million at 30 June 2016. The independent valuations of this property is $2.81 million at that year end. This is an increase of approximately $50,000 over book value. The reason for this modest level of increase in values is due to the cost of the recent improvements made in the Wairoa depot and Guppy Road buildings not tracking through on increased valuations, as valuations are based on market sale prices or lease prices.

26. These assets are valued every three years and the next revaluation will be due on 30 June 2019.

Investment Properties – Leasehold Land

27. The main investment properties held by Council are the leasehold land in Napier and Wellington. The table below sets out the percentage changes in lessor's interest for both Napier and Wellington leasehold property.

	Napier Leasehold		Wellington Leasehold
	No. of Lessees	$	No. of Lessees	$
Valuation (Lessor's Interest) 30 June 2015	548	40.1m	12	12.3m
Valuation (Lessor's Interest) 30 June 2016	481	36.2m	12	14.7m
Number of lessees freeholding ¹	67	6.5m	-	-
Increase in valuation over the 12 months to 30 June 2016 adjusted for sales	-	+2.6m (6.5%)	-	+2.4m (20%)
Comparative for year ended 30 June 2015	-	+1m (2.5%)	-	+0.4m (3%)

¹The number of leasehold properties owned by Council fell from 347 (30 June 2015) to 290 (30 June 2016), a decrease of 57 properties.

28. Napier leasehold property values have increased during this year by $2.6m (6.5%) and Wellington leasehold property values by $2.4 (20%). This capital gain is in line with movements in property values. These gains are in addition to the income returns on these properties – Napier leasehold yielding an average 4.7% on valuation and Wellington 6.8%.

Hawke’s Bay Regional Investment Company Limited (HBRIC Ltd)

29. Council’s shareholding in HBRIC Ltd, which includes as its major asset the Port of Napier Ltd, is revalued every three years. This revaluation was carried out in June 2015 and at the Council meeting on 29 July 2015 Council agreed to revalue HBRIC Ltd from $177.5 M to $235.22 M in accordance with the valuation recommendation by Deloittes. This resulted in the value of shares issued from HBRIC Ltd to Council in April 2012 at $1.00 increasing to $1.33 per share.

30. For the years between the three yearly valuation of HBRIC Ltd, Deloittes are commissioned to determine whether there is any impairment to the value as stated in HBRC’s accounts. This exercise was carried out by Deloittes for the year ending 30 June 2016 and the value per share was assessed to be between $1.05 and $1.36. Deloitte’s conclusion was that the current forecast of the carrying value of $238.4 million sits within this range and, on that basis, they do not consider that a revaluation of assets is necessary.

Forestry Crops and Carbon Credits

31. Under the international accounting standards, biological assets including forestry crops are to be revalued at the end of each financial year. Accordingly, the revaluations as set out in the table below have been received for 30 June 2016.

Forest Location	Block Area (ha)	Book Value 30 June 2016 $000	Valuation 30 June 2016 $000	Variance F (U) $000
Lake Tutira Forestry	114	2,479	3,087	608 F
Tangoio Reserve Forestry¹	550	2,552	3,118	566 F
CHB Wastewater Forestry	173	250	285	35 F
Waihapua Forest Park	174	284	412	128 F
Mahia Wastewater Forestry	36	48	60	12 F
Tutira Manuka Honey Forestry	130	296	346	50 F
Carbon Credits	-	682	682	-
Total	-	6,592	7,991	1,399 F

¹ The Tangoio Reserve forestry is administered by HBRC but is owned by the Crown.

32. The forestry crops have shown positive increases during the year ending 30 June 2016. These increases being due to a rise in log prices since the previous valuation and also an increase in the age of the forests and hence the growth and value.

33. This is the first year that carbon credit revenue has been recognised in HBRC’s accounts. The issue of accounting for carbon credits was raised by Audit NZ during their last Annual Report audit. Accordingly, we have recognised in the accounts the carbon credits that are available for sale from HBRC’s investment in forest ($415,165) and carbon credits accruing in the river berm areas ($266,835). The carbon price per tonne was $17.90 at 30 June 2016.

Forest Land Valuations

34. The land on which the forestry crops are grown is revalued every three years and has been revalued as at 30 June 2016. The increase in the value of this land over HBRC book value is shown below.

Forest Location	Block Area (ha)	Book Value 30 June 2016 $000	Valuation 30 June 2016 $000	Variance F (U) $000
Lake Tutira Forestry land	114	326	450	124 F
Tangoio Soil Conservation Reserve	550	482	597	115 F
Wastewater and Carbon Land	513	1,647	1,799	152 F
Total	-	2,455	2,846	391 F

35. The favourable variance in land values is indicative of the increase in land values experienced in Hawke’s Bay over the last year.

General Funded Operating - End of Year Position

36. Council's General Funded Operating result, subject to final audit processes, for the year ended 30 June 2016 is shown in Attachment 1 as a surplus of $68,000. When this is compared to the forecast end of year deficit of $79,000, the result is a favourable variance from forecast of $147,000.

37. The reasons for this favourable variance are set out in Attachment 1 to this paper.

38. It should be noted that the operating statement set out in Attachment 2 and included as part of the formal Annual Report to proceed to Audit, shows an operating result that differs from the general funded operating end of year position as presented to Council in Attachment 1.

39. There are a number two main reasons for this difference, the first being the losses/gains in fair value of Council’s investment properties including Wellington and Napier leasehold properties and forestry assets and, secondly, the targeted rates which have been set to fund the capital purposes of Council.

40. The fair value adjustments are included in the Statement of Comprehensive Revenue and Expense in the Annual Report but do not affect the end of year position from a general funded operating perspective. Also, the Flood and Drainage rates to cover capital works are not included in the general funding reporting but are included in the Statement of Comprehensive Revenue and Expense in the Annual Report.

Operations Group Profit on External Work

41. The Operations Group carries out work for Council’s flood and drainage schemes and for external parties. A profit is earned on the work for external parties and Council resolves to what extent this profit is held within Council for funding of groups of activities and also to what extent the Operations Group is able to retain a portion of the profit for any extraordinary items that are required to be funded to ensure the integrity of the Group’s activities going forward.

42. Profit on external work for 2015-16 is $210,000 (as against a budget of $122,000). When compared to the profit achieved for 2014-15 of $180,000, this is a pleasing result.

43. This profit is proposed to be transferred to Council’s operating cash balances.

Decision Making Process

44. 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:

44.1. Section 97 covering significant changes in the intended level of service provision for a group of activity do not apply.

44.2. Section 83 which sets out the procedures to be followed where a special consultative procedure is to be used or adopted does not apply.

44.3. The decision does not fall within the definition of Council's policy on significance and engagement.

44.4. No options are available to Council for this item. The Annual Report is required under Section 98 of the Local Government Act 2002.

44.5. This report, when adopted, is available for any person requiring a copy of this report.

44.6. Section 80 of the Act covers decisions that are inconsistent with existing policy or plan and does not apply.

44.7. Council can exercise its discretion under Section 79 (1)(a) 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, and also Council's understanding of the issues that persons likely to be affected by or have an interest in the decisions to be made.

Recommendations

That Council:

1. Confirms the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and Council can exercise its discretion under Section 79(1)(a) of the Local Government Act 2002 and make decisions on those issues without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Adopts the Draft Annual Report for the period 1 July 2015 to 30 June 2016, subject to any adjustments required by Council, for the purposes of audit, with a view to Council adopting the final report at its meeting on 28 September 2016.

3. Resolves that $210,000 profit on external work undertaken by Council's Operations Group during the year ended 30 June 2016 be transferred to Council’s cash operating balances available to fund general funded operating expenditure.

Authored by:

Manton Collings

Corporate Accountant

Approved by:

Paul Drury

Group Manager
Corporate Services

Attachment/s

1	Financial Reporting for Year Ended 30 June 2016		Under Separate Cover
2	Draft 2015-16 Annual Report		Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

Subject: Scope for Environmental Flows Investigation Request for Proposal

Reason for Report

1. At the 27 July 2016 meeting of Council staff presented a request for proposal (RfP) approach to secure the services of a suitably qualified person to investigate and report on the best possible utilization of environmental flows from the Ruataniwha Dam.

2. Council requested staff prepare a scope to be provided to any person or organisation who might provide a proposal to Council.

Proposed scope

3. The initial advice to Council had focused on the benefits that might accrue from the use of surplus water from the Ruataniwha Water Storage Scheme (RWSS). It did not consider the benefit that might accrue from spending the dollar value of the water on projects within the catchment or region.

4. Staff were asked to bring back the scope being proposed back to Council for agreement.

5. In essence there are two components that any RfP could consider. To firstly look at how the water purchased by Council could be used and alternately to consider how the dollar value of the cost of purchasing the water could be used to fund other Council activities within the Tukituki Catchment or wider within the region.

6. Staff have not yet prepared the RfP document due to the need to divert staff time and resources to the Havelock North water supply contamination issue. It is proposed to obtain the input and agreement from Council on the scope of works that will part of the normal contractual detail in the RfP.

7. It is proposed that the scope within RfP be simple, reflecting the discussion points at the Council meeting last month and the points noted in 5 above. The following are proposed as the relevant points to set out within the scope.

7.1. That any proposal submitted assumes that the baseline is that the required actions stipulated in Change 6 for the Tukituki Catchment are in place and are achieving the anticipated policy results. This would include water quantity allocations and limits and water quality limits and targets. It would also assume that all of the relevant conditions of consent for the RWSS are fully complied with.

7.2. That the proposal would consider, review and provide guidance on other programmes of work or projects that could be achieved and the benefits (environmental/social/cultural and economic) they would bring using the dollar value of the water purchased by HBRC over the life of the consent (35 years). These programmes of work or projects could be could be applied regionally, at a catchment or sub-catchment scale.

8. Staff note that the study remains time-bound because of the need for Council to consider the findings no later than November 2016.

Decision Making Process

9. 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:

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

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

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

9.4. The persons affected by this decision are all people with an interest in the management of the regions natural resources.

9.5. Options that have been considered include to not include detail on the scope as outlined.

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

9.7. 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. Receives and notes the “Scope for Environmental Flows Investigations Request for Proposal“ report.

2. 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.

3. Provides feedback on the proposed scope of works to be incorporated into any RfP document.

4. Agrees that the following points be added to a scope of works to be included within any RfP:

4.1. That any proposal submitted assumes that the baseline is that the required actions stipulated in Change 6 for the Tukituki Catchment are in place and are achieving the anticipated policy results. This would include water quantity allocations and limits and water quality limits and targets. It would also assume that all of the relevant conditions of consent for the RWSS are fully complied with.

4.2. That the proposal would consider, review and provide guidance on other programmes of work or projects that could be achieved and the benefits (environmental/social/cultural and economic) they would bring using the dollar value of the water purchased by HBRC over the life of the consent (35 years). These programmes of work or projects could be could be applied regionally, at a catchment or sub-catchment scale.

Iain Maxwell

Group Manager
Resource Management

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

Subject: Working Toward Tukituki Plan Change 6 Implementation

Reason for Report

1. The Tukituki Plan Change became operative on 1 October 2015 following its adoption by the Council in August.

2. Policy TT16 of this plan change requires Council, to establish and then support a multi-stakeholder group with the purpose of developing an Implementation Plan (IP) and providing input into the development and delivery of specific implementation or monitoring projects and programmes.

3. A number of the provisions are linked to future dates and significant preparatory work is required in order to be ready for the implementation and enforcement of those provisions. New monitoring programmes are also required in order to ensure that the effectiveness of the plan in relation to the objectives can be assessed.

4. The purpose of this report is to brief the Council on the work that is ongoing in the development of the IP, and to provide feedback on to the proposed direction and intent for policy implementation as detailed in the attached Programme Towards Implementation document.

Policy TT16 - Tukituki Implementation Plan

5. Policy TT16 requires Council to prepare an overall IP for giving effect to the new policy provisions that apply within the Tukituki Catchment.

6. It requires that this Implementation Plan is developed in collaboration with iwi and hapu and other affected or interested stakeholders.

7. In developing this plan staff engaged Mr Cameron Drury from Cheal Consultants to assist. Mr. Drury has previously worked for HBRC and has extensive practitioner experience in this area. Staff have formed a ‘Core Working Group’ of practitioners who have being meeting regularly for some months. Mr Heath has facilitated this group. Mr. Drury has recently been working with this group to bring together the thinking to date. This has been the basis of the attached document.

8. Staff are of the view that there are many aspects of the policy implementation that are clear and obvious, for example the dates and limits around water quantity changes throughout the catchments surface and ground water. There are also aspects that are unclear or for which there are a range of options that might be pursued. Farm Environment Management Plans are a good example of this.

9. At this stage rather than end up paralyzed in trying to rationalize a preferred option for the many unknowns, staff have pursued an approach that sets out the thinking and ‘direction of travel’ for matters that are currently uncertain. We have then used this as a starting point to engage in discussion with those who have an interest in this with the view that over the next 12-24 months the detail and structure around these aspects is provided and documented.

10. For the reasons noted above we have deliberately called this document Programme Towards Implementation rather than call it the final IP. We expect to continue the work and discussions with our community on these matters sufficient to produce the final IP in advance of Councils deliberations on the next (2018-28) Long Term Plan. This will allow a structured discussion around resourcing that will be required to successfully deliver policy implementation within this catchment.

11. In developing our thinking, staff have engaged with a range of stakeholders, partners and tangata whenua on these matters in an effort to seek feedback on our thinking and intent.

12. Thus far there have not been any issues raised that staff consider are suggesting that an alternative approach is warranted or any matters need to be revisited.

13. It is important to note that Policy TT16 sets out expectations for collaboration with iwi and Tukituki hapu. It states that this will be based on tikanga Maori and that an engagement plan is to be developed in consultation with specified groups, being Te Taiwhenua o Tamatea, Te Taiwhenua o Heretaunga, Te Taiwhenua o Te Whanganui a Orotu and Ngati Kahungunu Iwi Incorporated. Staff have engaged with all these parties and socialised the Programme Towards Implementation document with them. They have all been provided with copies and asked to provide feedback. In addition a number of hui have been held.

14. Prior to the work presented to you today, staff sought nominations from the organisations noted above so that an engagement plan could be developed. The engagement plan is intended to set out who Council should be consulting with over the development of the final IP as well as its delivery.

15. While individuals were nominated, the organisations expressed a desire to first work together (without Council) through issues arising from the Tukituki Catchment Proposal process. As final decisions on Plan Change 6 were still pending at that stage, and no attempts were made to progress those discussions. Now that Tukituki Plan Change 6 decision is final and has been adopted by Council, staff will be re-engaging on the final IP and engagement plan with these groups.

16. The document is structured into ten key sections, being:

16.1. Engagement and collaboration

16.2. Regulation

16.3. Water quality and Farm Plans

16.4. Water allocation

16.5. Communication

16.6. Information programmes and projects

16.7. Non – statutory approaches and projects

16.8. Plan performance and effectiveness

16.9. Reporting

16.10. Data collection and management.

17. The detail of each section is not reported in this paper and will be addressed in the presentation that will accompany this at the meeting. Mr. Drury will present this and will be available, along with key staff to answer any questions on the day.

18. Staff are keen to emphasize that this is a ‘living’ document and as we learn more and evolve our thinking we will look to modify and adapt our approaches. The intent being that ultimately all of this will be incorporated into the final IP.

19. What staff are very keen to hear from the Committee about is matters that you feel are missing or not addressed and where you see that the intent as set out in the document is manifestly wrong and why you think this.

Decision Making Process

20. 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:

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

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

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

20.4. The persons affected by this decision are all persons with an interest in the Tukituki catchment

20.5. Options that have been considered include to not produce this interim document but delay any discussion pending the preparation of the final Implementation Plan.

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

20.7. 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. Receives and notes the report titled ‘Working Towards Tukituki Plan Change Implementation’ as previously provided to Councillors with the Regional Planning Committee 3 August 2016 Agenda.

2. 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 under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

3. Subject to the inclusion of any changes agreed at today’s meeting, adopts the report titled ‘Working Towards Tukituki Plan Change Implementation’.

Authored by:

Nathan Heath

Acting Manager
Land Management

Approved by:

Mike Adye

Group Manager
Asset Management

Iain Maxwell

Group Manager
Resource Management

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

Subject: Purchase of Waipatiki Holiday Park

Reason for Report

1. As part of their annual plan deliberations, Council approved a contribution of $300,000 from Open Spaces borrowing to the joint purchase of the Waipatiki Beach Holiday Park with Hastings District and Napier City councils, subject to an ownership entity and governance structure being mutually agreed.

2. This briefing paper updates Council on the purchase process and seeks agreement to HBRC being the “owner” of the Holiday Park on behalf of the Hawke’s Bay region.

Purchase process update

3. A sale and purchase agreement has been entered into between the owners of the Waipatiki Holiday Park and Hastings District Council (HDC). The agreement is to purchase the 2.06 ha property (including the land and the holiday park) for $900,000.

4. Napier City Council (NCC), HDC, and HBRC have agreed to contribute $300,000 each towards the purchase.

5. The sale and purchase agreement is subject to:

5.1. Funding: By 1 September 2016, HDC must either resolve to complete the purchase of the property, having first obtained finance, or obtain the agreement of another local authority to accept nomination as purchaser and to complete the purchase.

5.2. Sewerage system and water supply due diligence: The sewerage system has been inspected by HDC and has been found to be in a relatively poor state of repair. Staff are working with HDC to determine what repairs are needed and which organisation will take responsibility for arranging and fund the necessary repair. Staff will be able to update Council on this issue during the meeting.

5.3. The terms of the subdivision resource consent being satisfactory to seller and buyer. When the subdivision consent is issued, the buyer and seller must notify the other party in writing within 10 working days whether the subdivision consent conditions are acceptable to them. If either party considers that the subdivision consent’s terms are not acceptable, the parties must meet and try to agree a solution. If no agreed solution can be reached, the dissatisfied party may cancel the agreement.

6. The subdivision must include several easements for the protection of existing and future utilities for the property. The proposed wording of those easements must be submitted to the vendor lawyer for his/her approval. If the terms of the proposed easements are not acceptable to the vendor, the vendor must give notice of that and the parties must meet to see whether agreement can be reached. If it cannot, the vendor may cancel the agreement.

7. If the survey plan for the subdivision has not been deposited within 6 months after the last of the conditions in paragraph 5 above has been met, the vendor may cancel the agreement.

8. Apart from agreeing to contribute to the purchase of the property, NCC does not wish to have any part in its ongoing administration or management.

9. Staff from HDC and HBRC have met and propose the following:

9.1. HBRC will be the owner of the property and declare it a reserve held by Council as Recreation Reserve subject to the provision of the Reserves Act 1977.

9.2. The vendor has given no warranty that the existing buildings on the property are consented. HDC will arrange for its building inspection team to undertake an assessment of the Holiday Park facilities.

9.3. HDC will meet the costs associated with the subdivision including the installation cattle stop and fencing; the cost of any future connections to sewerage and water; and maintenance of road access and rights-of-way over the property and the vendor’s land.

9.4. HDC and HBRC will prepare a binding Heads of Agreement between the two councils setting out respective roles and responsibilities including the above.

10. The Holiday Park is currently leased to a separate party under a 21 year agreement which expires in 2031. This lease will transfer to HBRC as the new owner. Key terms include the following:

10.1. The lessee is responsible for compliance with any resource consents.

10.2. The lessee pays an annual rental, with rent reviews occurring every 3 years. The next rent review is due November 2016. The lease agreement includes a rent ratchet clause so rental will not reduce even if the assessed market rental is less than the previous rental.

10.3. The lessee is required to pay operating expenses and maintenance costs for the sewerage system and an 80% share of the maintenance costs for the access road. (The lessor pays the remaining 20%)

10.4. The lessee is obligated to keep the “interior of the premises and all of the lessor’s fixtures and chattels in clean and good order repair condition”, subject to usual fair wear and tear and excluding acts of God. The lessee is also obligated to redecorate all internal and external surfaces of the buildings, and to replace the lessor’s chattels when reasonably required by the lessor. Any replaced chattels belong to the lessor.

10.5. The lessee must keep the land in good order and condition.

10.6. The lessee is required to display a copy of the current building warrant of fitness, retain relevant compliance schedules, obtain relevant building consents for all physical works, and comply with all relevant statutory requirements including but not exclusively the Health and Safety in Employment Act 1992, the Camping Grounds Regulations 1995 and the Resource Management Act 1991.

10.7. The lessee is obligated to maintain 3 star plus Qualmark rating as a minimum.

10.8. In addition to the annual rental the lessee is required to pay:

10.8.1. Operating expenses set out in the lease agreement

10.8.2. An additional 10% of the rent as an annual repair amount to a trust account operated by the lessor.

10.9. The lessee does not have the right to sublet without the lessor’s prior consent.

11. As lessor HBRC will have the following key obligations:

11.1. It must insure the buildings, at the lessee’s expense.

11.2. If any part of the land or buildings is damaged, the lessor must repair the damage unless it is unreasonable to do so.

11.3. HBRC must carry out structural alterations to the buildings if required by law (and which are not the lessee’s responsibility) and can increase the rent by 10% of the cost of the work. If the cost of carrying out the work exceeds $50,000 plus GST, the lessor may terminate the lease.

11.4. HBRC staff will need to work through, and in some cases renegotiate parts of the Lease Agreement, with the lessee. Aspects that may need to be renegotiated will be issues such as insurance to ensure the Agreement is aligned to HBRC’s insurance policy and the lessee understands any excesses that apply to that policy, and whether a restraint of trade clause in the Lease intended to prevent the lessor (soon to be HBRC) from being involved in a competing camping ground.

Financial and Resource Implications

12. Staff expect that the rental received for the lease of the Holiday Park will cover the costs of normal HBRC ownership responsibilities. There may be a need for some investment into repairs or renovations, however such works can be capitalised.

Decision Making Process

13. 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:

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

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

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

13.4. The persons affected by this decision are the vendor and current lessee of the Holiday Park.

13.5. Council has the choice of agreeing to the recommendations in this briefing paper, or declining to be the “owner”.

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

13.7. 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 under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2. Agrees to be the owner of the Waipatiki Holiday Park, and once vested in Council that a report and resolution is prepared to Council to seek to declare the land to be a reserve held by Council as a Recreation Reserve subject to the provisions of the Reserves Act 1977.

3. Delegates authority to the interim Chief Executive to:

3.1. Finalise the sale and purchase agreement for the land and the holiday park.

3.2. Enter into a binding Heads of Agreement with Hastings District Council setting out respective roles and responsibilities of the two Councils with regard to the ongoing administration, management and possible improvement of the Holiday Park facilities.

Authored by:

Mike Adye

Group Manager
Asset Management

Approved by:

Paul Drury

Group Manager
Corporate Services

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 31 August 2016

SUBJECT: Monthly Work Plan Through September 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. Strategic Plan Refresh process 2. National Horticulture Field Day 3. Relationship meeting with Ngai Tuhoe
External Relations	Communications	4. Monthly focus: Biodiversity and Cape to City 5. Ongoing social media and video delivery focus 6. Our Place: community papers mid-month 7. Staff assisting with resource development for TANK, Coastal Hazards, Ruataniwha scheme, Tukituki Plan and other ongoing projects.
	Transport	8. The Hastings bus terminus move to the 200 block in Eastbourne Street is scheduled for November, however, HBRC buses will use the new route into Eastbourne Street from 26 September, when a number of service improvements commence. 9. Cycle Network Coordinator applications closed 18 August and a selection process is underway. 10. Driver Licensing Training Fund applications closed 15 July. Four applications were received. The Driver Licensing Governance Group has completed its analysis and made allocations. 11. New Zealand Transport Agency is seeking variations to the Regional Land Transport Plan in order to commence work on roading upgrades for improved access to Napier Port. Funding for these has been allocated by central government as part of the Regional Economic Development Strategy.
Corporate Services		12. Final audited Annual Report to be signed off at 28 September Council meeting 13. Report on Rate Balances – Council Meeting 28 September 2016 14. Continue with audit and risk issues – FAR Sub‑committee 20 September 2016.
Asset Management & Biosecurity	Coastal	15. Funding model recommendations passed by Joint Committee to be presented to member Councils for adoption. Planning for Stage 3 decision making to be progressed. 16. Work on communications plan for public including update to coastal web page.
Asset Management & Biosecurity	Land Management	17. Staff currently focused on operationalising key work programs within the 2016-17 Land Management Operational Plan, including promoting early uptake of Farm Environmental Management Plans, a riparian planting target of 3 km in the Papanui catchment, targeting on-farm visits to landholders identified via SedNET modelling as being at high risk of sediment loss and building a community process for the development of an action plan for the Porangahau stream/Maharakeke sub-catchments. 18. Staff are heavily involved this month in supporting TANK meetings with pastoral farmers, the TANK steering group meeting and the Regional Managers Group visit. 19. The Land Managers Special Interest Group meets this month and staff will be attending and presenting at this meeting. 20. With the NZ Association of Resource Management (NZARM) Conference being held in Napier in October significant work in finalising the details of agendas, field trips and other associated logistics is being attended to
Asset Management & Biosecurity	Engineering & Asset Management	21. Ebbett’s stopbank has been constructed, some maintenance repair legal and survey work underway for land swap and access. 22. $15M Waipaoa River stopbank upgrade (Gisborne DC) working through a list of resource consent issues that will delay the start of construction. Design on major side stream flood protection to be carried out. Ongoing. 23. GDC small projects –City revetments design to complete followed by construction. Awapuni 24. Gravel Review –EMS to progress the draft final report and coordinate plan release, consultation and consenting issues for the future management regime. Morphological model for Tukituki aiming to complete by end of calendar year. 25. Heretaunga Plains Flood Control Scheme – Hydrologic review is under way and aim is to complete by end of this calendar year as initial stage in level of service improvement project. 26. Hastings District Council – Ongoing assistance with Iona triangle, Lyndhurst and Howard Ada St. residential developments, Omahu Industrial, Irongate Industrial. 27. Complete the groyne repair at Tukituki River mouth (underway). 28. Start planning for construction work on the Karamu Stream realignment as part of the Whakatu Arterial Link road. This is a significant earthworks operation with current demand for the silt. 29. Progress work on options for removing all cattle from the river berms and creating other opportunities for use of the berm area. 30. Westshore beach renourishment contract documentation to be completed and contract let. 31. Continue to work with Wairoa District Council on flooding and drainage issues in the area. 32. Start preparing Awanui stopbank upgrade contract documents for tender and construction later in the year. 33. Flood modelling of Te Ngarue Stream as joint project with NIWA (National Science Challenge). 34. Surface water 2D model for Havelock groundwater contamination potential. 35. Complete Lake Rotokare control structure design and drawings. 36. Provide expert advice and technical input to upcoming tsumami CD exercise. 37. Fencing, maintenance and planting at Waimarama for Waingongoro Stream project. 38. Karamu Stream enhancement maintenance with hapu.
	Biosecurity	39. Cape to City; Tomtit and Robin translocations continue. 40. Maori hui proposed for Cape to City on September 14 at Waimarama Marae. 41. Pest camera post control monitoring for farm on the Maraetotara plateau where kiwi releases are to take place will be finished. 42. Plant and Animal Pests; Annual contracts have been awarded, and contractors will get a number of these underway including bait station transition TBFree set up.
Asset Management & Biosecurity	Open Spaces	43. Waitangi Estuary Enhancement design confirmation and specification drafting progressing. Tender for carpark and compass platform construction to be advertised mid/late August. 44. Tutira Regional Park track signage installed. 45. Open Space Community and Public winter planting programme completed. 46. Papakiri Stream low flow connect and Kahikanui Stream Peak Flow runoff design to be progressed. 47. Negotiations for Waireporepo Pa transfer to Pekapeka Regional Park continuing. 48. Tutira Regional Park Management Plan back in draft after delays through consultant unavailability as well as more urgent priorities. Draft to be completed by November. 49. Recruitment for Tutira mai nga Iwi project leader underway but limited options for appointment thus far. 50. Whakatu / Kohupatiki sediment removal trial to be progressed over next 3 months. 51. Pakowhai Regional Park suffered moderate wind damage to trees after the storm of 6^th August. Clean up underway.
Resource Management	Compliance	52. The Waihi Dam sediment discharge prosecution hearing has not yet been given a trial date. It is envisaged that the matter will not be resolved by the court for up to 12 months.
Resource Management	Consents	Notified or limited notified consent applications in process 53. Whakatu Wool Scours Ltd hearing held 16 July 2016. Decisions issued granting the activity on 18 August. Currently open for appeal to the Environment Court. 54. Twyford (WP140331T - global consent to take emergency water from groundwater with stream depletion effect on the Ngaruroro) was on hold awaiting applications to transfer water into the global consent. Following disussions with Twyford Group we expect to receive transfer in September. 55. Ngaruroro group (expiring consents taking from Ngaruroro surface water or adjacent stream depleting groundwater) matters with final submitter have been resolved. Consents will be issued in September. Environment Court Appeals 56. Pan Pac (CD96033Wf to extend their outfall and discharge further out to sea). Settlement discussions were held but were unsuccessful. Appeal held 22– 26th August. Decision pending. 57. CPM Asphalt (DP150070A to discharge to air from an asphalt plant). Mediation was unsuccessful and this will proceed to the Court. 58. All Resource Consents applications received are circulated weekly to all Councillors and can be viewed on the HBRC website.
Resource Management	Groundwater Science	59. Heretaunga Plains modelling continues, with increased GNS Science support during September. A transient groundwater flow model is currently being developed. 60. Drilling program for Ruataniwha monitoring bores is almost complete, as part of Tukituki plan implementation. 61. Collaboration with NIWA and GNS Science to complete installation of cropping lysimeter at Otane. 62. Groundwater and surface water samples from the Heretaunga Plains are being analysed, for identification of groundwater sources and age. 63. Taharua piezometric survey is planned for this month, in collaboration with BoP Regional Council. 64. Comprehensive shallow groundwater sampling is being undertaken throughout the region.
	Hydrology	65. A rainfall-runoff and flow routing model (SOURCE) for upper TANK catchments has been developed. Attention is now on developing a nutrient transport model (to support Heretaunga groundwater model) 66. A report on generalised oxygen modelling for the Heretaunga Plains streams is being revised, following reviewer comments. This work examines how flow requirements for oxygen vary across the riverscape and will inform policy development for instream flow requirements across the Heretaunga Plains.
	Marine & Coastal Science	67. Completion of the 2015-16 Recreational Water Quality Report 68. Completion of the ‘Estuaries of the TANK Catchments’ – State and Trends Report. 69. HBRC lead investigation into decline of health in the Upper Ahuriri Estuary – NIWA assisted. 70. Continued support for the TANK Stormwater Working Group. 71. Presentation to the TANK stakeholder group on the state and trends of Ahuriri and Waitangi Estuaries. 72. Scoping of ‘Next Steps’ for the Marine Information Strategy.
	State of Our Environment Monitoring and Reporting	73. A state of the Environment report on groundwater quality is expected to be discussed at the Regional Planning Committee in September.
Strategic Development	Resource Management Planning	74. Next TANK Collaborative Stakeholder Group meetings scheduled 20 September (#23) and 2 November (#24). Topics at Meeting #23 include understanding water quality in Tutaekuri catchment. Smaller working groups are beginning to get into their tasks (currently working groups established for wetlands/lakes, stormwater, economics, communications, and mana whenua). 75. Awaiting next steps regarding Minister for the Environment’s referral of application for Ngaruroro/Clive Rivers Water Conservation Order to a Special Tribunal. Special Tribunal yet to be appointed by the Minister. Meanwhile, senior staff continue to liaise with WCO co-applicants’ agents about TANK and WCO process compatibility. 76. MFE-funded project on criteria and methodology for assessing NZ’s outstanding freshwater bodies has been re-oriented. Project’s overall outputs now differ from what was originally intended, and project to be completed in August. 77. Public submission period closes on 22 August on Draft 2016 review of the Heretaunga Plains Urban Development Strategy. The HPUDS Implementation Working Group will soon hear submissions, then recommend revised Strategy for adoption by NapierCC, HastingsDC and HBRC. 78. Part of the last remaining appeal (by Fish & Game) relating to wetlands in the RRMP and Plan Change 5 remains unresolved. Despite mediation and negotiations, all parties could not reach agreement so this matter is destined to be heard by the Environment Court in late 2016 (date TBC). 79. Ongoing involvement in nine appeal proceedings for proposed Hastings District Plan review. Mid-late 2016 will involve Environment Court-assisted mediation for several of those appeals. 80. Work commenced on refreshing the HBRC Strategic Plan with staff workshops beginning in July. 81. Supporting Stage 2 community engagement programme on Clifton to Tangoio Coastal Hazard Management Strategy project as required. 82. Continuing to support preparation of a plan and establishment of a Trust to implement the Regional Biodiversity Strategy. 83. Supporting preparation of planning to implement PC6 for the Tukituki River catchment. 84. A meeting with key stakeholders on a draft Regional Energy Strategy is planned for 30 August 2016 and presentation to the Council thereafter. 85. 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 September. Revisions follow enactment of the Hawke's Bay Regional Planning Committee Act 2015. Options for Council’s appointment of a tenth member to RPC will be a matter for the in-coming Council to consider at its 9 November 2016 meeting.
Strategic Development	Resource Management Planning	86. Work has commenced on a refresh of the HBRC Strategic Plan. Work programme designed so that a draft revised Strategic Plan can be presented to the new incoming Council. 87. Upcoming reports to Regional Planning Committee meetings likely to cover: a) RPC’s revised terms of reference b) Ngaruroro water conservation order application update c) TANK project update d) Annual report on progressive implementation of NPSFM to be incorporated into HBRC’s 2015-16 Annual Report publication e) Revised Heretaunga Plains Urban Development Strategy.
Strategic Development	Economic Development	88. Planning is underway by the Project Team of the Regional Economic Development Strategy to prioritise actions and next steps. An independent advisor is being commissioned to review the regional delivery model for the REDS. 89. Staff are working with Wairoa DC, HB Tourism and Activate Tairawhiti to form a steering group in September to oversee a programme of market research into tourism opportunities related to Rocket Lab’s Mahia Peninsula operations, as well as overseeing logistics of managing public interest in the initial launches that are now expected sometime after 1 October. 90. Regional Business Partners sub contractor, the Chamber of Commerce, have offered an employment contract for the replacement RBP Business Advisor 0.6FTE. It envisaged this individual will commence mid October. 91. Regional Business Partners in conjunction with Business Hawke’s Bay to meet with the Callaghan Innovation (a) Group Manager for Sensing & Automation (b) Incubator and Start Up Manager to scope opportunity for Hawke’s Bay in reference to themes in the REDS Action Plan. 92. Regional Business Partners holding a training session for new Business Mentors and a networking function for Training Providers and Business Mentors to introduce the new RBP team.
Emergency Management		93. The focus for September is the launch of East Coast LAB (Life at the Boundary) and the opening of ‘The LAB’ the new interactive learning space at the National Aquarium of New Zealand. This is scheduled for 22 September. 94. The next month will also involve the Group in Exercise Tanagaroa, a national tsunami exercise. This will be run over three separate days with the first day being 31 August. 95. For the next month or so the Group office will also be supporting Hastings District Council in the implementation of their recovery strategy from the recent water supply contamination incident

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 September 2016 report.

Authored by:

Mary-Anne Baker

Senior Planner

Drew Broadley

Community Engagement and Communications Manager

Steve Cave

Asset Manager Open Spaces

Gary Clode

Manager Regional Assets

Desiree Cull

Programme Leader

Mark Heaney

Client Services Manager

Nathan Heath

Acting Manager
Land Management

Dr Andy Hicks

Team Leader
Water Quality and Ecology

Gavin Ide

Manager, Strategy and Policy

Dr Kathleen Kozyniak

Principal Scientist Climate & Air

Campbell Leckie

Manager Land Services

Anna Madarasz-Smith

Senior Scientist - Coastal Quality

Malcolm Miller

Manager Consents

Lisa Pearse

Group Emergency Management Advisor Hazard Reduction

Anne Redgrave

Transport Manager

Dr Jeff Smith

Team Leader/Principal Scientist
Hydrology/Hydrogeology

Dr Stephen Swabey

Manager, Science

Oliver Wade

Environmental Scientist WQ&E

Thomas Wilding

Senior Scientist

Wayne Wright

Manager Resource Use

Approved by:

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.

1	Rocket Launch Tourism Scope Report	Under Separate Cover
2	Draft Policy on Elected Representatives' Declaration of Interests
3	August 2016 Updated Matariki: HB Regional Economic Strategy	Under Separate Cover

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Chief Executive Appointment Process Update	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.