Meeting of the Hawke's Bay Regional Council
Date: Monday 12 June 2017
Time: 9.00am
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Subject Page
1. Welcome/Apologies/Notices
2. Conflict of Interest Declarations
Decision Items
3. Submissions Received on the Draft 2017-18 Annual Plan 3
4. Submissions on the Draft 2017-18 Annual Plan 9
5. Staff Internal Submission to the 2017-18 Draft Annual Plan 41
Monday 12 June 2017
SUBJECT Submissions Received on the Draft 2017-18 Annual Plan
Reason for Report
1. This paper provided the submissions received on the draft 2017-18 Annual Plan to Councillors, both electronically and in hard copy on 26 May 2017.
Background
2. The draft Plan was publicly notified in local media on Saturday 8 April 2017; in Hawke’s Bay Today, Central Hawke’s Bay Mail, Napier Mail, Hastings Mail, Wairoa Star, on radio, using social media and HBRC’s website.
3. Submissions closed at 5.00pm on Friday 12 May 2017, were acknowledged as having been received and copies are attached to this report for provision to Councillors.
Decision Making Process
4. This report is purely for the provision of the submissions, and so the decision making requirements of the Local Government Act 2002 do not apply.
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Authored by:
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Leeanne Hooper Governance Manager |
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Approved by:
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Liz Lambert Group Manager |
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⇩1 |
List of Submissions Received |
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Monday 12 June 2017
SUBJECT Submissions on the Draft 2017-18 Annual Plan
Reason for Report
1. The purpose of this paper is to outline the process to be undertaken to hear and consider submissions received on the draft 2017-18 Annual Plan.
Background
2. The draft Plan was publicly notified in local media on Saturday 8 April 2017 in Hawke’s Bay Today, Central Hawke’s Bay Mail, Napier Mail, Hastings Mail, Wairoa Star, on radio, using social media and HBRC’s website.
3. Four public meetings were held in each of the main centres during May to promote the draft Annual Plan proposals. There was significant public attendance at meetings: Central HB 33 people, Napier 27, Havelock/ Hastings 38, and Wairoa 24 people; a total of 122 people, compared with 55 in May 2016.
4. Submissions closed at 5.00pm on Friday 12 May 2017, were acknowledged as having been received and then copies distributed to Councillors on 26 May.
5. This year, staff received 137 submissions in total – including text and Facebook messages.
6. Copies of the Staff responses to submissions were sent to each of the submitters on 7 June.
7. In recent years, Annual Plan and Long Term (10 Year Plan) consultation processes received:
7.1. 2016-17 Annual Plan and 2015-25 Long Term Plan proposed amendment - 192 submissions
7.2. 2015-25 Long Term Plan - 152 submissions
7.3. Annual Plan 2014-15 - 103 submissions
7.4. Annual Plan 2013-14 - 62 submissions
7.5. Long Term Plan 2012-22 - 583 submissions
7.6. Annual Plan 2011-12 - 46 submissions
7.7. Annual Plan 2010-11 - 135 submissions (57 ordinary and 78 s36 charges)
8. The procedure for considering submissions will be that Council:
8.1. Hears all verbal submissions on 12 June as per the attached timetable
8.2. Considers all written and verbal submissions and staff responses to those, as attached, on 12 June
8.3. Considers the Council staff internal submission on 12 June
8.4. Resolves any changes to be made to the draft 2017-18 Annual Plan based on the decisions made on submissions from the general public, and Council’s internal submission.
9. Subsequent to Council’s decisions on the submissions, the draft Annual Plan will be revised to incorporate any necessary amendments. Council will then adopt the final documents on 28 June 2017.
10. Following the adoption on 28 June, each submitter will receive a letter from Council setting out Council's resolution(s) pertinent to their specific submission(s), and the reasons for those resolution(s).
11. The 2017-18 Annual Plan documents will then be distributed within one month of the date of adoption as required under Section 93 (10) of the Local Government Act 2002.
Decision Making Process
12. Council is required to make every 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:
12.1. Sections 83 and 85 of the Act set out the requirements of the Act where the special consultative procedure applies to consideration of the draft 2017-18 Annual Plan.
12.2. The issues to be considered in this paper are those issues raised by members of the community that have submitted to the Council on the Draft Annual Plan. All submissions are an integral part of the special consultative processes set out in Section 83 and 85 of the Local Government Act 2002.
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That Council: 1. Agrees that the decisions to be made on issues submitted on the Draft 2017-18 Annual Plan” are made after the provisions included in sections 83 and 85 of the Local Government Act 2002 have been followed. 2. Receives and considers the verbal and written submissions, and the HBRC Officers’ Responses to the points raised in the written submissions. |
Authored by:
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Leeanne Hooper Governance Manager |
Drew Broadley Community Engagement and Communications Manager |
Approved by:
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Paul Drury Group Manager |
Liz Lambert Group Manager |
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James Palmer Group Manager |
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⇩1 |
12 June 2017 Timetable |
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⇩2 |
Officers' Responses to Submissions on Rates |
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⇩3 |
Officers' Responses to Submissions Related to Environmental Management |
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⇩4 |
Officers' Responses to Submissions Relating to Funding |
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Monday 12 June 2017
Subject: Staff Internal Submission to the 2017-18 Draft Annual Plan
Reason for Report
1. This report sets out a number of items that, in the opinion of staff, require inclusion in the 2017-18 Annual Plan.
Comments
2. This paper provides the opportunity for Council to consider the following items in relation to the Annual Plan:
2.1. Carry forward of operating expenditure and revenue from 2016-17 to 2017-18
2.2. Consideration of carry forwards for capital expenditure from 2016-17 to 2017-18
2.3. Other amendments required to be made to the Draft Annual Plan.
3. When considering whether to approve the carry forward of expenditure to 2017-18 from 2016-17 it is important to take into consideration the current pressures on the 2016-17 deficit position. The reforecasting exercise completed in April indicated that the reforecast operating deficit had increased by $143,000 after taking into account all of the reforecast adjustments. It is prudent financial management to consider reducing some required carry forward expenditure items in order to fund this forecast increase in the annual budget deficit.
Carry Forward of Expenditure and Revenue from 2016-17 to 2017-18
Groups of Activities
Strategic Planning
Project 191 – Coastal Planning
4. Seek a total of $40,000 (less any actual expenses incurred up to 30 June 2017) to be carried forward from project 191-2380 (consultancy costs $20,000) and 191-2660 (legal costs $20,000). These funds were provided to commission external expert support to the Strategic Development Group’s work programme, particularly in implementing any necessary revisions to coastal hazard zones and associated provisions in the Regional Coastal Environment Plan (RCEP) that might emerge from the Clifton to Tangoio Coastal Hazard Management Strategy.
5. The primary reason as to why these funds were not spent was due to the work associated with the Coastal Hazard Management Strategy being ongoing, albeit that Stages 1 and 2 have been completed. Stage 3 (community panels) is still in progress and is now scheduled to be completed during the 2017-18 financial year.
Effect on Plan
5.1. An increase in funding for project 191-2380 and 191-2660 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
5.2. That Council approves the carry forward in project 191-2380 and 191-2660 of $40,000 from 2016-17 to 2017-18 to cover costs associated with preparing any necessary plan changes to the RCEP (e.g. re-definition of coastal hazard zones) that may emerge from the Clifton to Tangoio Coastal Hazard Management Strategy project when completed during 2017-18 period.
Project 192 – Strategy and Planning
6. Seek a total of $135,000 (less any actual expenses incurred up to 30 June 2017) to be carried forward from project 192-2380 (consultancy costs). These funds were provided to commission external expert support to the Strategic Development Group’s work programme, particularly in implementing the National Policy Statement for Freshwater Management.
7. The primary reason as to why these funds were not spent was due to delays in commissioning, and in some cases completing, contracted work particularly related to the TANK and Mohaka Plan Changes and Regional Resource Management Plan (RRMP) effectiveness reporting. These delays have been driven by staff turnover and other priority commitments such as the RWSS Review, Ngaruroro Water Conservation Order (WCO) application and increasing amounts of engagement in proposed national direction proposed by central government.
Effect on Plan
7.1. An increase in funding for project 192-2380 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
7.2. That Council approves the carry forward in project 192-2380 of $135,000 from 2016-17 to 2017-18 to cover costs associated with implementing the National Policy Statement for Freshwater Management.
Project 192 – Strategy and Planning (Energy Futures)
8. Seek a total of up to $130,000 (less any actual expenses incurred up to 30 June 2017) to be carried forward from Project 192-2385 (contractors). These funds were initially provided in 2014-15 to fund an oil and gas related Regional Resource Management Plan (RRMP) plan change, and then in 2015-16 for the development of Energy Futures Strategy for Hawke’s Bay and a review of the RRMP effectiveness regarding regulation of oil and gas exploration-related activities.
9. The primary reason as to why these funds were not spent was due to delays in commissioning work influenced by confirmation of plan change proposition (based on legal advice) from the Regional Planning Committee and also by staff effort being focussed on other priorities and some postponement in contractual engagement of a preferred contractor to coordinate and progress the plan change project.
10. This carry forward request assumes that Council still requires this work to be completed as this has been the subject of discussions at recent Regional Planning Committee meetings. It should be noted that this project (originally budgeted at $200,000) was funded by a transfer from the Open Spaces and Community Facilities approved borrowing facility.
Effect on Plan
10.1. An increase in funding for project 192-2385 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
10.2. That Council approves the carry forward in project 192-2385 of $130,000 from 2016-17 to 2017-18 to cover costs associated with preparation of a plan change regulating oil and gas activities in parts of the region.
Regional Resources
Project 339 – Regional Land Research and Investigations
11. Seek a total of $133,000 to be carried forward from project 339-2380 (consultancy costs $113,000) and 339-2325 (surveying $20,000) The funds are required to complete three elements of this project’s work programme:
11.1. Mohaka catchment land use/nutrient transport model to support the Mohaka Plan Change ($70,000)
11.2. Peat soil/organic soil characterisation and sustainability survey to support Plan Change 6. This survey will also provide a regional picture of the condition of these valuable soils ($20,000).
11.3. Terrestrial ecosystem mapping and ecosystem prioritisation to bring HB in line with national guidelines on ecosystem monitoring, support HB biodiversity strategy and improve available base line information of our region ($43,000)
12. These funds were not spent in the 2016-17 year because the NIWA modelling team were unavailable to complete the Mohaka model, and will not be available until approximately August 2017. In the case of the peat soil/organic soil characterisation and sustainability survey the work was delayed due to unforeseen staff issues and the ecosystem mapping was delayed due to consultants unavailability until June 2017.
13. Section 36 charges associated with project 339 expenses will also need to carried forward to 2017-18. This equates to 35% of the $133,000 being $46,550.
Effect on plan
13.1. An increase in funding for project 339-2380 and 339-2325 in 2017-18 funded from unexpended funds in 2016-17 and a carry forward of associated section 36 income of $46,550 to 2017-18, not being charged to consent holders in 2016-17.
Recommendation
13.2. That Council approves the carry forward in project 339-2380 and 339-2325 of $133,000 of expenditure from 2016-17 to 2017-18 to cover costs associated with undertaking Mohaka catchment land use/nutrient transport modelling, regional peat soil/organic soil characterisation and sustainability survey and ecosystem mapping and prioritisation and also carry forward revenue of $46,550 relating to the associated section 36 charges.
Project 341 – Air Quality
14. Seek a total of $77,000 to be carried forward from project 341-2380 (consultancy costs). The funds are required to complete two pieces of work already committed:
14.1. One relates to a contract for Air Quality Roadside Monitoring Winter 2017. This was to commence at the beginning of June but, due to a delay in obtaining calibration gases, Watercare cannot commence monitoring until the beginning of July 2017. The contract is worth approximately $57,000 and will need to be carried forward into the 2017-18 financial year.
14.2. The second relates to a contract for Awatoto Source Apportionment. This contract involved the collection and analysis of filters over a period of one year by GNS and a report on the results. Sampling started last year and is now complete. We have paid for everything apart from the final report, which is due in the new financial year. The cost of the report is $20,000 and will be invoiced early in the new financial year.
Effect on plan
14.3. An increase in funding for project 341-2380 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
14.4. That Council approves the carry forward in project 341-2380 of $77,000 of expenditure from 2016-17 to 2017-18 to cover costs associated with. Air Quality Roadside Monitoring and Awatoto Source Apportionment
Project 380 – Sustainable Land Management
15. Seek a total of $100,000 to be carried forward from project 380-2860 (regional landcare grants). These funds were allocated to the early incentivisation of Farm Environmental Management Plans (FEMP’s) in the Tukituki Catchment. To date we have had approximately 150 FEMP’s submitted and there is a significant number currently being worked on by providers. There is still a large number of FEMP’s outstanding and by extending the deadline for landholders to apply with financial support to undertake their FEMP’s over the next 3 months this will still assist in reducing the looming bottleneck of demands for an FEMP by landholders and the number of approved FEMP providers in the region. The incentive will only run to the 1st of January 2018 or until the carryover funds are used.
Effect on plan
15.1. An increase in funding for project 380-2360 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
15.2. That Council approves the carry forward in project 380-2360 of $100,000 of expenditure from 2016-17 to 2017-18 to cover costs associated with the incentivising of FEMPs in the Tukituki Catchment.
Governance
Project 876 – Contingency Funding Support
16. Seek a total of $40,000 to be carried forward from project 876-2385 (contractors). In March 2017 Council commissioned a capital structure review to be undertaken with expected costs of $100,000. As this was unbudgeted expenditure, $50,000 was added to the 2016-17 budget as part of the reforecasting exercise reported to Council in April 2017, the remaining $50,000 was to be added to the 2017-18 projected deficit.
17. Due to delays in setting up the Capital Structure Review Advisory Committee it is unlikely that more than $10,000 of this work will be completed in the current financial year and therefore a carry forward of $40,000 is proposed in order to fund the capital structure review which will now carry on until August 2017. This will allow $90,000 to be available to fund this review in the 2017-18 year.
Effect on plan
17.1. An increase in funding for project 876-2385 in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
17.2. That Council approves the carry forward in project 876-2385 of $40,000 of expenditure from 2016-17 to 2017-18 to cover costs associated with undertaking the capital structure review.
Capital Expenditure Adjustments
Transport Capital
Bus Service Ticketing System Project
18. Seek a total of $250,000 to be carried forward from the 2016-17 transport capital budget for the Bus Service Ticketing System to 2017-18.
19. The 2016-17 Annual Plan provided for an amount of $570,000 (before NZTA subsidy) for the purchase of a replacement bus ticketing system through a joint procurement process with eight other regional councils. After subsidy, the cost to HBRC was $285,000. The procurement process was slower than expected but is now complete and implementation of the system will take place during 2017-18 for all councils. The full $285,000 is not required as tender prices for the capital installation of the system were lower than expected.
Effect on plan
19.1. An increase in funding for the Bus Service Ticketing System in the 2017-18 year funded from unexpended funds in 2016-17.
Recommendation
19.2. That Council approves the carry forward of $250,000 from 2016-17 to 2017-18 to cover costs for the Bus Service Ticketing System. Noting that this is being funded through internal loan funding.
Science Capital
Regional Groundwater Research Bores
20. Seek a total of $150,000 to be carried forward from the 2016-17 science capital budget to 2017-18. These funds were originally set aside for the drilling of groundwater monitoring bores for State of Environment monitoring and specific investigations including support of Plan Change 6 implementation. This carry forward is requested because:
20.1. Senior Groundwater Scientists were engaged on unplanned Havelock North groundwater investigations from August 2016 to January 2017. Consequently, planned groundwater projects have not been resourced and progress has not been made on the drilling programme for 2016-17.
20.2. Deferring the drilling budget until 2017-18 will allow time to strategically identify sites to maximize the utility of the monitoring network. Furthermore, the groundwater monitoring strategy will be greatly improved, following an audit of existing monitoring bores and a review of the monitoring network that is currently being scoped.
Effect on plan
20.3. An increase in funding of science capital expenditure in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
20.4. That Council approves the carry forward of $150,000 from 2016-17 to 2017-18 to cover costs associated with drilling of groundwater monitoring bores. Noting that loan funding of $150,000 to fund this capital has been drawn down in the 2016-17 year.
Building Capital
Raffles Street Roofing and Ceiling
21. Seek a total of $40,000 to be carried forward from the 2016-17 building capital budget to 2017-18. These funds were originally set aside to replace the Raffles Street building roof and ceiling. This has been delayed due to some repairs made to the roof which are working well at the moment but may need to be fixed permanently in the near future.
Effect on plan
21.1. An increase in funding of building capital expenditure in 2017-18 funded from unexpended funds in 2016-17.
Recommendation
21.2. That Council approves the carry forward of $40,000 from 2016-17 to 2017-18 to cover costs associated with the replacement of the Raffles Street roof and ceilings.
Forestry Capital
Land Easement – Tutira Regional Park Forest
22. Seek a total of $100,000 to be carried forward from the 2016-17 forestry capital budget for the Tutira Regional Park forest easement to 2017-18.
23. An amount of $100,000 was budgeted in 2016-17 for the design and construction of road access to the Tutira Regional Park forest due for harvesting in the next few years. This has been delayed due to ongoing negotiation and unsuitable weather.
Effect on plan
23.1. An increase in funding for the Tutira Regional Park forestry easement in the 2017-18 year funded from unexpended funds in 2016-17.
Recommendation
23.2. That Council approves the carry forward of $100,000 from 2016-17 to 2017-18 to cover costs for the Tutira Regional Park forestry easement.
Other amendments required to the Draft Annual Plan
Capital Structure Review
24. Seek a total of $50,000 to be added to the 2017-18 Annual Plan budget under project 876-2385 (contractors) to cover the second half of the capital structure review approved by Council on the 29 March 2017.
25. This review was added after the Draft Annual Plan was approved so this needs to be incorporated into the Plan. As stated in point 10 above this will be added to the $40,000 carry forward request if approved to give a total of $90,000 available in 2017-18.
Effect on plan
25.1. An increase in funding for the capital structure review in the 2017-18 year funded from the adding to the general funded deficit
Recommendation
25.2. That Council approves the additional cost of $50,000 in project 876-2385 in the 2017-18 Annual Plan to cover costs for the capital structure review.
Summary of Effects of this Submission on the Draft Annual Plan General Funded Surplus/(Deficit)
Decision Making Process
26. 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:
26.1. Consultation on the Draft Annual Plan has been consistent with section 82(a)(3) of the Act which sets out the level of consultation required where there are significant or material differences between the proposed Annual Plan and the content of the Long Term Plan for the financial year to which the Annual Plan relates.
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That Council: 1. Agrees that the decisions to be made on the issues submitted to the Draft Annual Plan 2016-17 are made after the provisions included in section 82(a)(3) of the Local Government Act 2002 have been followed. 2. Receives and considers the “Staff Internal Submission to the 2017-18 Draft Annual Plan” report. |
Authored by:
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Manton Collings Corporate Accountant |
Paul Drury Group Manager |
Approved by:
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James Palmer Group Manager |
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