Agenda of Regional Council Meeting

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

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 231 DP 10728 CT C1/300 - Transfer 1.1.2 Lot 1 DP 14227 CT G1/23 - Agreement for Sale and Purchase 1.1.3 Lot 181 DP 12611 CT D4/1105 - Agreement for Sale and Purchase 1.1.4 Lot 13 DP 13899 CT F4/432 - Agreement for Sale and Purchase 1.1.5 Lot 467 DP 9059 CT 752725 - Agreement for Sale and Purchase 1.1.6 Lot 233 DP 10728 CT C1/302 - Agreement for Sale and Purchase 1.1.7 Lot 1 DP 14227 CT G1/23 - Transfer 1.1.8 Lot 27 DP 10632 CT B3/797 - Agreement for Sale and Purchase - Transfer	4081 4082 4083 4084 4085 4091 4092 4093 4094	13 December 2016 13 December 2016 13 December 2016 19 December 2016 19 December 2016 21 December 2016 21 December 2016 21 December 2016 21 December 2016
1.2	Staff Warrants 1.2.1 E. Lennan B. Ronke J. Gardiner L. McPhail T. Diack (Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174)	4086 4087 4088 4089 4090	19 December 2016 19 December 2016 19 December 2016 19 December 2016 19 December 2016
1.3	Napier Port Limited Subvention Agreement	4095	17 January 2017

Decision Making Process

2. Council is required to make every decision in accordance with the provisions 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:

2.1 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

2.2 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.

Authored by:

Diane Wisely

Executive Assistant

Approved by:

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: Upgrade to Council Chambers

Reason for Report

1. Councillor Graham has requested the preparation of this report to allow Council to consider his proposals for an upgrade of the Council Chamber and Councillors’ Room.

Description

2. The Chairman’s proposals are based on:

2.1. His view that HBRC’s current public spaces do not have character or mana and do not reflect HBRC’s history or standing in the community

2.2. His desire to reflect the region’s history and partnership with tangata whenua in the design

2.3. His preference to have a Chairman’s Room within the building that is not a traditional office but is within the public space and can be used by other councillors when he is not using the room.

3. The key features of the proposed changes are:

3.1. That the current Councillors’ Room be turned into the Chairman’s Room with an upgrade to reflect the mana of the Chairman’s role

3.2. That carvings be placed over the entry door into the Council Chamber (an example of how this could look is shown in the photo in Attachment 1, although this is not the final design)

3.3. That a makeover is given to the foyer so that visitors know they are at a place of significance

3.4. That a full-sized painting of a tipuna from each of the nine treaty settlement entities represented on the Regional Planning Committee be commissioned, and placed in the Council Chamber or the Chairman’s room.

Financial and Resource Implications

4. The 2016-17 annual budget provision for furniture and fittings for the Dalton Street building was $70,000. The need was identified for improvements to the Council Chamber and, consequently the audio-visual equipment has been upgraded at a cost of $40,000.

5. Following is a schedule of costs for the Chairman’s requested upgrades.

5.1. Chairman Room conversion, $13,000, including:

5.1.1. Removal of existing cupboards, shelving, and desk station attached to the wall

5.1.2. Removal of all existing furniture, fake plants and fridge

5.1.3. Repaint all areas

5.1.4. Purchase new furniture

5.1.5. Install security.

5.2. Ahuriri Room upgrade, $7851 including:

5.2.1. Replace existing table tops on lunch tables.

5.2.2. Joiner to create fixed, fit for purpose unit for tea supplies instead of using a tea trolley.

5.2.3. New chairs.

5.3. Council Chambers upgrade, $45,700 (excluding carvings and paintings), including:

5.3.1. Remove carpet covering on wall, skim and paint.

5.3.2. Paint entrance and hall.

5.3.3. New drapes.

5.3.4. New boardroom tables, chairs and visitor seats (design to be confirmed).

5.4. Total cost: $66,551 ex GST

6. In respect of the carvings the Chairman has indicated that he would look to get these sponsored by Ngati Kahungunu or others but no firm cost is available as yet.

7. It is estimated that he paintings of the tipuna will cost approximately $5000 each and the Chairman proposes that this cost should be split equally between the Regional Council and each of the Treaty settlement entities. The paintings would remain the property of the Treaty settlement entities but would be on display in the Council Chamber. The total cost to Council under this arrangement would be in the vicinity of $22,500.

8. The identified costs do not include any changes to the foyer, for example the Chairman has suggested new carpet for that space, however provision was made in the 2015-18 Long Term Plan for carpet replacement in this area in the 2017-18 financial year.

9. If Council wishes to proceed with all the alterations listed above (excluding tipuna paintings and carvings) in the current (2016-17) financial year it will need to approve additional expenditure of $37,000 (in excess of the $70,000 provision made).

Decision Making Process

10. 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:

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

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

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

10.4. The persons affected by this decision are the ratepayers in the region.

10.5. Options that have been considered include making no changes to the areas identified.

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

10.7. 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. Approves the expenditure of $13,000 for the conversion of the Councillors’ Room to the Chairman’s Room.

3. Approves the upgrade of the Ahuriri Room, replacement of Board chairs and repainting of Chamber to be carried out in the current financial year.

4. Approves the Chairman negotiating with the Treaty settlement entities represented on the Regional Planning Committee, and in conjunction with the Maori Committee, for equal funding of paintings of tipuna for display in the Council Chamber or other public spaces within the Dalton Street building.

5. Approves the Chairman negotiating with external parties with regard to potential funding for the carvings.

Authored by:

Liz Lambert

Group Manager
External Relations

Approved by:

Andrew Newman

Chief Executive

Attachment/s

Concept of carving in Chamber entrance

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: 2016-19 Triennial Agreement – Process and Adoption

Reason for Report

1. In accordance with LGA section 15 the local authorities in Hawke’s Bay are required to adopt a Triennial Agreement by 1 March 2017.

2. This report outlines the proposed process for the five councils to consider and negotiate that agreement to enable adoption at the relevant Council meetings at the end of February to meet the legislative requirement.

Process

3. It is proposed to use the 2013-16 Triennial Agreement as the basis for developing the 2016 version. The content of the Agreement is prescribed by legislation and, in particular, by s.15 of the LGA, which is appended to this paper as Attachment 1.

4. The 2013-16 Triennial Agreement is appended to this paper as Attachment 2.

5. There are five primary signatories to the Hawke’s Bay Triennial Agreement – the Wairoa, Hastings and Central Hawke’s Bay District councils, the Napier City Council and the Hawke’s Bay Regional Council. In addition, there are two non-primary signatories – the Rangitikei and Taupo District councils.

6. In order to have entered into the new agreement by the deadline of 1 March 2017 it is suggested that the Chair of the Hawke’s Bay Regional Council (or his representative) invites the Mayors of all four primary signatory territorial authorities (or their representatives) to meet collectively at the earliest opportunity to consider and make any agreed changes to the Agreement prior to it being adopted.

7. The key focus for any discussion will be reviewing Clause 6 (General Approach to Communication and Co-ordination) and Clause 7 (Significant New Activities proposed by Hawke’s Bay Regional Council). In addition, it will be necessary to ensure that the Agreement satisfactorily includes the processes and protocols through which all local authorities can participate in identifying, delivering, and funding facilities and services of significance to more than one district.

8. Following the suggested meeting of the five primary signatories a revised Agreement will be circulated to all seven councils for adoption.

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. A Triennial Agreement is a legislative requirement contained within the Local Government Act, so there is no option for Council to not agree a new Agreement for the 2016-19 triennium.

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

9.6. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Council:

2. Instructs the Chairman, or his representative, to invite the Mayors of Wairoa, Hastings and Central Hawke’s Bay districts and the Mayor of Napier City, or their representatives, to attend a meeting in early February; the purpose of the meeting being to review and agree proposed changes to the 2016-19 Triennial Agreement.

3. Requests that the Chairman, or his representative, brings back for approval the agreed version of the Triennial Agreement to the 22 February meeting of Council.

Authored by:

Liz Lambert

Group Manager
External Relations

Approved by:

Andrew Newman

Chief Executive

Attachment/s

1	Local Government Act Section 15 Triennial Agreements
2	2013-16 Triennial Agreement - Hawke's Bay

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: 2017 Local Governance Statement

Reason for Report

1. The purpose of this paper is to present the 2017 update of Council’s Local Governance Statement to Council for consideration.

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

Contents of the Local Governance Statement

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

4. Staff have updated the previous LGS (attached) and seek councillors feedback in relation to whether further amendments are required prior to adoption of the finalised LGS at the March Regional Council meeting.

Decision Making Process

5. 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:

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

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

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

5.4. The persons affected by this decision are the ratepayers of Hawke’s Bay.

5.5. There are no options for Council to consider as publication of a Governance Statement is a legislative requirement, within 6 months of each triennial election.

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

5.7. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Council:

2. Provides agreed amendments for incorporation into a final version of the 2017 Local Governance Statement for adoption by Council by 26 April 2017.

Authored by:

Leeanne Hooper

Governance & Corporate Administration Manager

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

1	LGA Section 40 Local Governance Statements
2	Draft 2017 Local Governance Statement for Council Consideration		Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: RWSS Moratorium

Reason for Report

1. At its meeting on 14 December 2016 the Council confirmed its request to the Hawke’s Bay Regional Investment Company (HBRIC Ltd) that it implement a moratorium on the Ruataniwha Water Storage Scheme (RWSS) project.

2. The Board of Directors of HBRIC Ltd has subsequently advised that while they are comfortable implementing this moratorium their fiduciary responsibilities to the company require a resolution of Council specifying a timeframe for the moratorium.

Background

3. On 14 December 2016 the Council considered a paper on the Review of the Ruataniwha Water Storage Scheme. Included in this paper was advice on requesting the Board of Directors of HBRIC to implement a moratorium on the Ruataniwha Water Storage Scheme (RWSS) project, including:

3.1. Ceasing any further expenditure on the RWS design, development or construction other than work currently committed or contracted

3.2. Not entering into any new arrangement that would commit either HBRIC Ltd or the Hawke’s Bay Regional Council to future expenditure or obligations

3.3. Desisting from taking any further steps towards acquiring DOC land under the Public Works Act

3.4. Except for expenditure that is required by HBRIC Ltd to:

3.4.1. Comply with its statutory obligations (for example responding to LGOIMA requests, costs required to value intangible assets to comply with audit requirements

3.4.2. For the directors to comply with their duties to defend and/or maintain the value of the company’s assets (including intellectual property and contracts)

3.4.3. To maintain or enhance the value of current water sales contracts

3.4.4. To meet the costs of any Council requests, including HBRIC Ltd’s costs of the Council’s review.

4. The Board of Directors of HBRIC Ltd has indicated that they are comfortable with this moratorium, however subsequent to the Council meeting the Board of Directors raised a concern with Council staff that without specifying a timeframe for the moratorium it would effectively be open-ended, placing the Board of Directors in a difficult position because agreeing to an indefinite suspension of work on the RWSS would not be consistent with their obligations to act in the best interests of the Company.

Proposed moratorium timeframe

5. The Council is due to receive the RWSS review report at its regular meeting of 26 April 2017. It is proposed that the moratorium remain in place for a further month following receipt of the review report to give the Council time to consider and respond to the review findings. Therefore, it is proposed that the Board of Directors of HBRIC Ltd be requested to maintain the moratorium until 31 May 2017, which is the date of the regular Council meeting following receipt of the review report.

6. Should further time for consideration and decision making be required the moratorium could be extended by way of further consultation with the Board of Directors of HBRIC.

Decision Making Process

7. 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:

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

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

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

7.4. The persons affected by this decision are the Board of Directors of HBRIC who have been consulted on this matter.

7.5. As Council has resolved its desire for a moratorium on further work on the RWSS, no other options have been considered.

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

7.7. 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. Requests that HBRIC Ltd maintain the moratorium on the RWSS project agreed by Council on 14 December 2016 from that date until 31 May 2017.

Authored by:

James Palmer

Group Manager
Strategic Development

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: HBRIC Ltd Councillor Remuneration

Reason for Report

1. On 14 December 2016 Council resolved to appoint Councillors Hewitt and Beaven as Directors of HBRIC Ltd. The resolution (attached) also resolved to award the Councillor Directors a $10,000 annual honorarium. To give effect to the resolution and to enable the completion of the Director appointment process the Council needs to amend the HBRIC Ltd Constitution to allow for this.

Proposal

2. Amend the HBRIC Ltd Constitution to enable the payment of an annual honorarium of $10,000 per annum as follows.

2.1. The Constitution currently reads:

2.2. Suggested change – marked up version:

"12.1 Authorisation of payment or other benefit: The remuneration of Independent Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve) on the recommendation of the Board based on market rates. The remuneration of Councillor Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve). ~~No Directors Fees will be payable to any Councillor Directors.~~”

2.3. Suggested change – clean version:

Decision Making Process

3. 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:

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

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

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

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

3.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendation

That Council:

2. That the HBRIC Ltd Constitution be amended to enable payment of an annual honorarium of $10,000 per annum to Councillor appointed directors; to read:

2.1. “12.1 Authorisation of payment or other benefit: The remuneration of Independent Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve) on the recommendation of the Board based on market rates. The remuneration of Councillor Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve).”

Authored by:

Diane Wisely

Executive Assistant

Approved by:

Andrew Newman

Chief Executive

Attachment/s

Extract of resolutions from Minutes dated 14 December 2016

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: Update on Havelock North Water Contamination Inquiry Expenditure

Reason for Report

1. This report provides an update to Councillors in relation to the August 2016 Havelock North water contamination event and Government Inquiry including Council expenditure.

HBRC’s RMA Investigation

2. The investigation undertaken by HBRC to determine whether the contamination was in part or wholly the result of resource consent conditions not being met has concluded.

3. Total costs were estimated (November 2016) to be $442,000 for the investigation, comprising $232,000 internal time and $210,000 external expenditure.

4. Actual costs to 16 January are $445,000, comprising $232,000 internal time and $212,000 external expenditure.

5. HBRC have dropped the charges on the basis that HDC conceded the breach of consent conditions and have agreed not to contest an infringement notice

The Government Inquiry

6. The Government Inquiry has held three sitting days to date and in addition has received written evidence from all core participants. The Panel has set down the week beginning 30 January and beyond to hear substantive matters on the cause of the drinking water contamination.

7. Following the conclusion of this the Panel will turn its mind to the second part of the Inquiry’s Terms of Reference which will examine the broader framework for drinking water supply management in New Zealand.

8. The Panel is required to report back to the Attorney General by 31 March 2017.

9. At its sitting in December the Panel instructed a science caucus to determine the facts surrounding the contamination event. This caucus, involving Dr Stephen Swabey and several of HBRC’s external advisors, has been working through December and January to meet the Inquiry’s timelines.

10. Physical testing of the bores has continued this week involving dye testing involving HBRC staff and equipment

11. Extensive review of evidence of other parties has been undertaken by HBRC’s legal advisors and internal staff, some of which has involved accusations and inaccuracies about actions of HBRC that require a response.

12. Costs for HBRC of the Inquiry up to 16 January 2017 are: $184,370 internal time and $453,000 external expenditure.

Financial and Resource Impacts

13. In both cases the internal costs (salary) are provided for in current Council budgets.

14. The external costs incurred by Council relating to the investigation stage of the Havelock North contamination event are being funded from Council’s 2016-17 budget provisions of legal and consultancy up to $135,000, with any costs in excess of that to be funded from the surplus operating position from 2015-16.

15. The external costs relating to the Government Inquiry are being funded from Council’s Regional Disaster Reserve, as agreed by Council on the 28 of September 2016.

16. The majority of external costs expected to be incurred in relation to the Investigation have now been invoiced and are included in this report under Attachment 1.

17. External costs in relation to the Inquiry are up to date however there are ongoing expenses, namely legal fees and internal staff time yet to be incurred. A reliable estimate of these costs cannot be made at present due to the uncertainty of the duration of the Inquiry.

Decision Making Process

18. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendations

That Council receives and notes the “Update on Havelock North Water Contamination Inquiry Expenditure” report.

Authored by:

Liz Lambert

Group Manager
External Relations

James Palmer

Group Manager
Strategic Development

Approved by:

Andrew Newman

Chief Executive

Attachment/s

Havelock North Water Contamination Investigation and Inquiry Financials

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

Subject: Annual Plan Progress Report for Six Months to 31 December 2016

Reason for Report

1. This report provides progress for the first six months of the 2016-17 financial year to 31 December 2016 on both financial and non-financial performance measures.

Summary of the Financial Position to 31 December 2016

2. The actual deficit for the first six months to 31 December 2016 is $2,434,000 against a pro-rata deficit is $2,430,000, giving a unfavourable variance of $4,000.

3. The following three graphs show this financial position through analysing groups of activities, regional income and total operating position against budget.

The increases in the operating position in December and June and relate to receiving the interim and final dividends from HBRIC Ltd. The June 17 balance reflects the reforecast deficit of $555k

4. The significant variations of actual to pro-rata are:

Regional Resources ($382,000 favourable)

4.1. The Regional Resource group of activity is under budget for this stage of the year. As discussed in the October report this is due to water science staff being diverted to the Havelock North Water Contamination Investigation and Inquiry for a large period of the first half of the year. This has had the effect of an underspend in staff time of around $165,000 which has been charged to regulation as well as an underspend in external costs of around $217,000 for such items as lab testing and consultancy which have not progressed as much as anticipated due to the diverted staff resource.

Regulations ($394,000 unfavourable)

4.2. The Regulation group of activity is over budget for this stage of the year. This is due to internal costs for science and executive staff being charged to Regulation for work on the Havelock North Water Contamination Investigation and Inquiry. There are also some large legal and consulting costs for active consent appeals, which are in various stages of litigation. Some of these costs are potentially recoverable once the outcomes are known but there is the possibility of budget overspend in this area due to the nature and number of active appeals. The Group Manager for Resource Management has advised that a report will be brought to Council shortly with a detailed discussion of those appeals.

5. Attachment 1 sets out the details of the financial report

5.1. Section A – Operating Account

5.2. Section B – Balance Sheet

5.3. Section C – Capital and Borrowing

Non-Financial Performance Reporting

6. Attachment 2 contains all of the performance measures included in the 2016-17 Annual Plan, including narratives on progress to date for each measure. Set out below is a pie chart showing a summary of variations to the Plan.

7. The red off track variances relate to:

Regional Resources Group of Activities *Activity 3 – Water Management*
Performance Target	Required Action	Progress Report ( to 31 October 2016)
Undertake catchment sensitivity analysis in focus river catchments to align with plan change requirements	Develop catchment characterisation programs for priority catchments to support Council and stakeholder requirements as and when required	Off Track We do not know what catchment sensitivity analysis refers to.
Governance & Community Engagement Group of Activities *Activity 3 – Community Representation and Regional Leadership*
Performance Target	Required Action	Progress Report ( to 31 October 2016)
Two meetings held per year between HBRC and NKII Board	Schedule at least two HBRC-NKII Board meetings per year	Off Track No meetings have yet been scheduled

Decision Making Process

8. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That Council receives and notes of the “Annual Plan Progress Report for the first six months of the 2016-17 financial year, to 31 December 2016“.

Authored by:

Manton Collings

Corporate Accountant

Leeanne Hooper

Governance Manager

Approved by:

Liz Lambert

Group Manager
External Relations

Andrew Newman

Chief Executive

Attachment/s

1	Financial Progress to 31 December 2016
2	Non-financial Project Progress Narratives to 31 December 2016		Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 January 2017

SUBJECT: HBRC Staff Work Programme over February 2017

Reason for Report

1. The table below is provided for Councillors’ information, to provide them with an indication of issues and activities of interest over the next couple of months in each area of Council.

Group	Area of Activity	Activity Status Update
External Relations	Communications	1. February monthly focus: water quality and ecology 2. HBRC billboard at airport
	Transport	3. RTC’s main focus over the next 3 months will be the review of the Regional Land Transport Plan, which sets the strategic direction for land transport in the region and contains the region’s funding request for transport activities and works for 2018-21. The March meeting, to be held in Wairoa, will incorporate discussions with the Gisborne RTC on inter-regional issues. 4. The HB District Health Board, working with HBRC, has extended free bus travel on any GoBay service to all patients (was only Napier patients travelling to Hastings) with an appointment at an HBDHB healthcare facility with approved evidence of an appointment. 5. HBRC is part of a consortium of regional councils procuring an interim bus ticketing system, to which funding was allocated in the 2015-25 LTP. Results of the tender are expected in early February, with the system chosen expected to serve smaller regional councils’ needs for 5-7 years while a national scheme is developed.
	Governance	6. Support development of the Council’s 2017 Governance Statement (required within 6 months of Election – and Triennial Agreement 7. Support review of the Charter between HBRC and Maori Committee. 8. Support process to adopt updated RPC’s Terms of Reference by March 2017.
Asset Management & Biosecurity	Coastal Hazards Strategy Development	9. Official launch of Stage 3 of the development of the Clifton to Tangoio Coastal Hazards Strategy on 31^st January. All community panel members have been invited. Assessment of options will commence through community panel process. Stage 3 programmed for completion late in 2017.
Asset Management & Biosecurity	Land Management	10. HB has been chosen as a case study region to consider implementation implications of the National Environmental Standards for Plantation Forestry. Staff are involved in coordinating site visits and stakeholder workshops in collaboration with MPI and forestry sector.
Asset Management & Biosecurity	Engineering, Asset Management and Open Spaces	11. Gravel Review – Development of a River Bed Gravel Management Strategy is nearing completion. Meetings with industry reps and development of the final Strategy document to be progressed in February. 12. Level of Service review for Heretaunga Plains-Rivers is ongoing. Stocktake of public use of berm area report expected February, with decision on way forward to be made and implemented. Engineering review to be progressed. 13. Contract for earthworks associated with enhancement of Waitangi Regional Park programmed to be completed early February 14. Pakowhai Regional Park open day “Paws in the Park” scheduled for Saturday 25^th March.
	Biosecurity	15. Cape to City is progressing well.Project is well recognised nationally as showing a potential path towards the predator free NZ 2050 objective. Research and field trials are continuing to test new initiatives. 16. The Regional Pest Plan review will be progressed. Meetings with industry groups are ongoing. Discussion document preparation is on target.
Resource Management	Compliance	17. 2 new staff have been added to the section to provide additional resource to monitor resource consents. 18. Waihi Dam prosecution is still in progress with no final date set for hearing. 19. Havelock North water contamination Ministerial Inquiry resumes in late January with some staff providing testimony. Depending on the outcome, there may be a thorough review of current practices. 20. Low flow bans and drought are taking up considerable time over summer as they come into effect. 21. Navigational Safety Bylaw process is underway with new Bylaws to be presented to Council for ratification.
	Consents	Notified or limited notified consent applications in process 22. Twyford WP140331T –awaiting transfer of consents into global. 23. PanPac application to continue with the current discolouration – notified submission period closed 19 December. One submission received. Staff to discuss concerns and the need for a hearing with the submitter. 24. Fulton Hogan to establish an asphalt plant in Pandora Industrial area – notified - submission period closed 19 December. Three submissions were received. Environment Court Appeals 25. Pan Pac (CD96033Wf to extend their outfall and discharge further out to sea) – Process concluded. Decision in favour of HBRC approach. 26. CPM Asphalt (DP150070A to discharge to air from an asphalt plant). Decision in favour of HBRC approach. 27. Whakatu Wool Scours Ltd has been appealed to the Environment Court. Mediation is scheduled. 28. HBRIC extended production land use area Judicial Review lodged by Greenpeace. Remains in process but no hearings scheduled.
Resource Management	Groundwater Science	29. SoE monitoring of groundwater levels and water quality continues. 30. The Heretaunga groundwater model and SOURCE surface water model have been calibrated and successfully demonstrated to TANK stakeholders in December 2016. 31. The groundwater and SOURCE models will be integrated and further scenarios are being modelled for presentation to the TANK meeting in March. The integrated model will be a valuable tool to predict effects of water allocation and land management scenarios, to inform the TANK decision making process. 32. Development of the Heretaunga groundwater contaminant transport model continues. This model will simulate the transport and fate of nutrients in groundwater, to inform TANK decision making. 33. Groundwater scientists are undertaking investigations and providing evidence to the Havelock North water contamination Ministerial Inquiry.
	Hydrology	34. Back up recorder for Folgers Lake to be installed at Tukituki at Ashcott Bridge to resilience for the Tukutuki flows. 35. Kahahakuri stream will have Water Quality and flows sampled as part of the Tukituki priority subcatchment sampling programme. 36. The more remote rain gauge sites wiii be serviced and calibrated. 37. New water quality and flow site to be installed on the Papanui stream at Middle rd. 38. Heretaunga Pprings report has been deferred so investigations can be undertaken during the very low-flow conditions, focussing on the Ngaruroro and Tukituki Rivers, to investigate how torrentfish and other species are coping with low-flow conditions – looking at their health and numbers, as well as cool water refuges. 39. The rising-bubble method was presented to the NZ Hydrological Society conference in December 2016. HBRC is developing this new method with NIWA, for measuring flows in weedy spring-fed streams. Scientists from NZ and overseas presented methods for measuring flood flows using drone imagery, and from infrared cameras. HBRC scientists were invited to present the rising bubble method in Lethbridge, Canada, where they are dealing with similar challenges for measuring river flow.
Resource Management	Water Quality and Ecology	40. temperature sensors deployed in key locations across different catchments in HB, to explore potential of shading to reduce water temperature. Focus on Papanui and Karamu catchments, as part of a model to inform where shading can be most efficient to mitigate problems with high water temperatures and low dissolved oxygen and enable prioritisation. 41. Shading geometry being assessed at river sites across the TANK and Tukituki catchments to complement temperature studies. 42. Continuing planting natives and Miscanthus at experimental sites for establishing riparian buffer and shading strips, currently trialling different ways for cost effective plant establishment under dry conditions. Being a dry season, watering options are being investigated. 43. Collaborations with new Whakaki Lake Trust being developed to create a steadier and more fruitful relationship, which may include local representatives collecting science information on behalf of Council 44. Mitigation options for Lake Tutira are being fleshed out, with Max Gibbs from NIWA investigating the practical aspects of aeration, among other options 45. Options for translocating elvers into Lake Tutira are being worked through with MTT, DOC and Fish and Game
	Marine & Coastal Science	46. Recreational Water Quality Programme is ongoing. Results are updated to HBRC website and LAWA on a weekly basis. 47. Following November RPC meeting a work plan looking at requirements to improve ecological health of the Ahuriri Estuary will be commenced. 48. HBRC continues to lead the redevelopment for the Recreation Water Quality Module of LAWA. 49. SoE Monitoring of Estuaries will be undertaken in February and March 2017. 50. Stormwater support for the TANK plan change continues. 51. Scoping of the Marine Information Strategy continues with project partners.
	Air & Climate Science	52. Source apportionment of particulates collected at Awatoto. 53. PM10 screening monitoring at Clive School. 54. Climate briefings with primary industry representatives.
Strategic Development	Resource Management Planning	55. Next TANK Collaborative Stakeholder Group meetings scheduled 9 February (#26) and 22 March (#27). 56. Continue to await next steps regarding application for Ngaruroro/Clive Rivers Water Conservation Order referral to a Special Tribunal. Special Tribunal yet to be appointed by the Minister. Senior staff intend to engage with co-applicants (via their agent) on basis of draft submission previously endorsed by RPC in November. 57. Re-oriented outputs of MFE-funded project on criteria and methodology for assessing NZ’s outstanding freshwater bodies will be completed in February. Staff update report to be presented to RPC in March 2017. 58. Setting up stakeholder consultation process for Mohaka plan change. Stakeholder meeting tentatively scheduled 6 March (tbc). 59. The HPUDS Implementation Working Group considered 55 written and verbal submissions on Draft 2016 review of the Strategy, with Working Group recommendations to the three partner councils expected in early 2017. 60. Part of the last remaining appeal (by Fish & Game) relating to wetlands in the RRMP and Plan Change 5 is unresolved. Experts’ evidence has been prepared and exchanged, but Environment Court has yet to set hearing date(s). 61. Ongoing involvement in 6 appeal proceedings for proposed Hastings District Plan review, involving further negotiations amongst parties intending to resolve the last of those appeals in early 2017. 62. Supporting Stage 3 community engagement programme on Clifton to Tangoio Coastal Hazard Management Strategy project as required. 63. Continuing to support preparation of a plan and establishment of a Trust to implement the Regional Biodiversity Strategy. 64. Supporting preparation of planning to implement PC6 for the Tukituki River catchment. 65. Supporting Group Manager’s lead on RWSS Review plus coordinating evaluation and reporting on several key workstreams within that Review. 66. Setting up a new project for regional plan change for regulation of oil and gas activities in the region, which will be largely undertaken by consultants with staff coordination. Draft work programme to be presented to RPC in March.
	Economic Development	67. Regional Business Partner – Attendance at RBP annual conference in Auckland and the Callaghan Innovation conference in Wellington. 68. Matariki Program Manager – recruitment completed and programme manager commenced role on 16 January. Supporting the PM’s induction and introduction to Matariki Stakeholders regionally. 69. Matariki Economic Development Delivery model review and recommendation – Martin Jenkins anticipating draft recommendations will be presented to the Matariki Governance Group on 26 January. 70. RWSS Review – Supporting the review workstreams. 71. Rocket Lab – Participation on the Rocket Launch Steering Committee to manage public interest in the test phase (summer ‘17) and to research tourism opportunities. Next committee meeting on 25 January.

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

That Council receives the HBRC Staff Work Programme over February 2017 report.

Authored by:

Drew Broadley

Community Engagement and Communications Manager

Steve Cave

Asset Manager Open Spaces

Gary Clode

Manager Regional Assets

Desiree Cull

Programme Leader

Peter Davis

Team Leader Hydrometric Network

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

Malcolm Miller

Manager Consents

Anne Redgrave

Transport Manager

Tom Skerman

Economic Development Manager

Dr Jeff Smith

Team Leader/Principal Scientist – Hydrology/Hydrogeology

Oliver Wade

Environmental Scientist WQ&E

Thomas Wilding

Senior Scientist

Wayne Wright

Manager Resource Use

Approved by:

Mike Adye

Group Manager Asset Management

Liz Lambert

Group Manager External Relations

James Palmer

Group Manager Strategic Development

Attachment/s

There are no attachments for this report.

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