Agenda of Regional Council Meeting

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 June 2018

Subject: Recommendations from the Corporate & Strategic Committee

Reason for Report

1. The following matters were considered by the Corporate & Strategic Committee meeting on 13 June 2018 and the recommendations agreed are now presented for Council’s consideration.

Reports Received

2. Recommendations from the Finance Audit & Risk Sub-Committee meeting held on 6 June were put to the Committee for consideration.

3. Appointment of an Independent Member to the Finance, Audit and Risk Sub-Committee – to enable the initiation of a process to appoint an independent member of the Finance, Audit and Risk Sub-committee (FA&R) to replace David Benham.

4. HBRC Representation Review - provided the Committee with the proposed representation arrangements review process and timelines for agreement, as well as:

4.1. provided detailed information about the meshblock changes proposed by Hastings District Council and impacts on HBRC’s Ngaruroro and Hastings constituencies

4.2. sought any alternatives to the status quo that members wanted staff to develop for Council’s consideration on 25 July

4.3. sought feedback on any consultation that could occur before the initial proposal is resolved including the option for staff to conduct an informal online and social media survey to gauge public interest

4.3.1. being that no feedback was provided by the Committee, staff are requesting that Council now considers this matter and either verbally agrees that no informal engagement be undertaken prior to 25 July, or formally resolves a request for staff to undertake an informal online and social media questionnaire to gauge public interest and support for Council’s current arrangements.

5. Councillor Appointment to HB Tourism Board of Directors – sought nominations for appointment to the HB Tourism Board of Directors to replace Councillor Fenton Wilson, who has resigned as Council’s representative on the Board.

6. Draft Statement of Investment Policy Objectives and Treasury Policies – provided the draft Statement of Investment Policy and Objectives (SIPO) and an updated Liability Management Policy for the Committee’s consideration and feedback. Recommendations from the PwC Treasury Services review focused on aligning the policies with Council’s decisions to form a Diversified Investment Portfolio (DIP) and to become a member of the Local Government Funding Agency included:

6.1. both the Investment and Liability Management policies should be amended to reflect treasury best practice and provide more detail to incorporate the use of a diversified investment portfolio, investment manager and LGFA borrowing

6.2. borrowing limits set out in the Liability Management Policy and Financial Strategy should be aligned with the LGFA lending policy requirements.

7. HBRIC Ltd Draft 2018-19 Statement of Intent - provided the draft HBRIC Ltd 2018-19 Statement of Intent as amended by Council at its meeting on 30 May 2018, to enable adoption of the SoI by 30 June to meet legislative timeframes.

8. Consideration of Debt Facility - HBRC to HBRIC Ltd – provided information to enable the Committee to consider the potential establishment of a new loan facility with Council for HBRIC Ltd, with the item discussed in Public Excluded session in accordance with LGOIMA “7(2)(i) … to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations …” and “7(2)(j) … to prevent the disclosure or use of official information for improper gain or improper advantage.”

Decision Making Process

9. These items were specifically considered by the Committee.

Recommendations

The Corporate and Strategic Committee recommends that Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

Recommendations from the Finance Audit & Risk Sub-Committee

2. Participates in and continually monitors results of the Public Transport Operating Model review and/or any central government policy changes that necessitate the reassessment of the GoBus contract to align with legislation and its own internal policies accordingly.

3. Requests that staff amend Council’s procurement policy to give favourable weighting to contractors who are paying the living wage, alongside other important factors such as environmentally friendly business practices and overall affordability, in Tender evaluation processes.

4. Requests that Council’s procurement policy is published on the HBRC website (in line with the Procurement Review recommendations from Crowe Horwath).

5. Uses the Napier Port valuation provided by HBRIC Ltd as the basis for the valuation of HBRIC Ltd

6. Considers undertaking a further valuation of HBRIC Ltd and Napier Port in the 2019-20 financial year.

Appointment of an Independent Member to the Finance, Audit and Risk Sub-Committee

7. Initiates the following process for the appointment of an Independent member of the Finance, Audit and Risk Sub-committee to replace David Benham; being:

7.1. Chief Executive to seek expressions of interest from suitably qualified candidates

7.2. Sub-committee to assess Expressions of Interest received and determine a shortlist of candidates for interview

7.3. Sub-committee to undertake interviews of shortlisted candidates, after which the the Sub-committee recommends the appointment of the preferred appointee to Council.

HBRC Representation Review

8. Initiates the review of the Hawke’s Bay Regional Council’s representation arrangements as required by the Local Electoral Act 2001 (LEA) and the Local Government Act 2002.

9. Requests that staff present a proposal for Council’s consideration and resolution of the HBRC initial proposal for public notification to the 25 July 2018 Regional Council meeting based on the Council’s current representation arrangements with the inclusion of the meshblock changes from the Ngaruroro Constituency to the Hastings Constituency as aligned with the Hastings District Council ward boundary changes.

Councillor Appointment to HB Tourism Board of Directors

10. Appoints Councillor Tom Belford to the HB Tourism Board of Directors as Council’s representative, replacing Councillor Fenton Wilson.

Draft Statement of Investment Policy Objectives and Treasury Policies

11. Agrees to the new borrowing limits to align them to the Local Government Funding Agency lending policy requirements.

12. Adopts the Statement of Investment Policy Objectives (attached) as amended as agreed by the Corporate and Strategic Committee meeting on 13 June 2018.

13. Adopts the Treasury Policy (includes Investment and Liability Management policies) as amended as agreed by the Corporate and Strategic Committee meeting on 13 June, and included in the HBRC 2018-28 Long Term Plan, part 7 (attached under separate cover).

14. Agrees to progress the Request for Proposals (RFP) process for the provision of Diversified Investment Portfolio management services, confirming an Open competitive procurement process will be undertaken, and that the RFP Assessment Panel will include all councillors.

HBRIC Ltd Draft 2018-19 Statement of Intent

15. Approves the HBRIC Ltd submitted 2018-19 Statement of Intent and notes that the Statement of Intent reflects Council’s objectives for HBRIC Ltd and has been prepared in accordance with the requirements of the Local Government Act 2002.

Consideration of Debt Facility - HBRC to HBRIC Ltd

16. Agrees to provide an initial $6 million loan facility, with potentially up to $10 million, to HBRIC Ltd and to reduce the funds available to the Diversified Investment Portfolio to $44 million to enable provision of that loan facility. Interest rates are to be reviewed and agreed annually.

Reports Received

17. Notes that the following reports were provided to the Corporate and Strategic Committee

17.1. Procurement and Contract Management Internal Audit (resolved: Endorses the Procurement and Contract Management Internal Audit Report, including the commentary, and any follow-up actions, provided against each of the report’s recommendations by HBRC Executive staff)

17.2. Water Management Internal Audit (resolved: Requests that staff provide a comprehensive report on progress responding to the Crowe Horwath Water Management Internal Audit report findings and recommendations to the 3 October 2018 Corporate and Strategic Committee meeting)

17.3. Health and Safety Update.

Authored by:

Manton Collings

Corporate Accountant

Leeanne Hooper

Principal Governance Advisor

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

Attachment/s

⇩1	Statement of Investment Policy Objectives
⇩2	HBRIC Ltd Statement of Intent for the Year Ending 30 June 2019

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 June 2018

Subject: Adoption of the HBRC 2018-28 Long Term Plan

Reason for Report

1. This report presents the 2018-28 Long Term Plan (LTP) for adoption by Council as required by the Local Government Act 2002.

2. The statutory deadline to adopt an audited LTP is on or before 30 June 2018.

Background

3. On 14 March 2018, the Hawkes Bay Regional Council (Council or HBRC) adopted its 2018-28 Long Term Plan Consultation Document (CD) entitled Facing Our Future and supporting information for consultation. The CD received an unmodified (i.e. clear) audit opinion.

4. Consultation was held from 19 March to 23 April 2018. A total of 569 submissions were received. Verbal submissions were heard on 22 and 23 May 2018.

5. The Council deliberated on all submissions on 24 May 2018. There was a deliberation report for each of the seven key topics from the CD, plus catch-all reports by Group (e.g. Regulation, Strategic Planning, Assets etc.) and a report for all miscellaneous requests for funding. This ensured all submissions were considered.

Changes in Response to Submissions

6. Key decisions made during deliberations which were different from the proposals consulted on in the CD included:

6.1. Reducing and holding Hawke’s Bay Tourism funding at $1.52M for Years 1-3 with subsequent funding levels to be reviewed through the 2021-31 LTP review.

6.2. $50,000 of general rate funding was allocated over 2018-19 and 2019-20 to obtain a coastal permit to discharge sand at Westshore Beach, for the purpose of re-nourishment.

6.3. $90,000 of general rate funding was allocated over 2018-19, 2019-20 and 2020-21 to support Waikato Regional Council to carry out research into safe fish passage through flood protection and drainage infrastructure.

6.4. $100,000 has been provided for in 2018-19 to cover costs for submitting to the Water Conservation Order tribunal, funded from reducing expenditure in other areas of the business.

6.5. $100,000 of extra biodiversity capital expenditure each year from year 2 to 10, funded from reducing expenditure in other areas of the business.

6.6. $1,320,000 in capital expenditure and $224,000 in operating expenditure in 2018-19 for a range of carry forwards from current 2017-18 budgets.

7. The Council’s overall funding decisions post consultation resulted in a total average rate increase of 19.4% in Year 1 (2018-19), 7.9% in Year 2 and 7.3% in Year 3.

The Final LTP Document

8. The information contained in the final LTP is largely the same as the previously adopted supporting information, but consolidated into a single document with updated financial information based on the decisions made at the council meeting on 24 May 2018. Any further substantial changes to this document would require re-auditing.

9. The content of the final LTP is in seven sections, being:

9.1. Part 1 – Introduction

9.2. Part 2 – Key Decisions

9.3. Part 3 – Financial Strategy

9.4. Part 4 – Infrastructure Strategy

9.5. Part 5 – Groups of Activities

9.6. Part 6 – Financial Information

9.7. Part 7 – Policies

9.8. Part 8 – Auditor’s Report

10. This year, for the first time, the document has bilingual headings (English and Te Reo) and a message from the Chair of the Maori Committee following directly after the message from the Chair and CEO.

11. The cover matches the imagery used in the Consultation Document.

Outcome and output measures

12. Part 1 of the final LTP includes a section on community outcomes as required by the Local Government Act 2002. Community outcomes are outcomes that a local authority aims to achieve in meeting the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions.

13. These outcomes and associated measures mirror the vision statement and strategic objectives respectively, from the Council’s Strategic Plan 2017-2021. The measures are timebound and wherever possible, align with national targets or an existing Hawke’s Bay strategy or plan. These are split by domain – land, water and biodiversity. The outcomes measures are separate to the activity (or output) measures in Part 5 - Groups of Activities as their acheivement is attributable to a range of Council’s intervetions (as well as factors outside Council’s control).

14. This is the first time that HBRC has included outcome measures in its LTP. The next step will be to develop the metadata on how we will regularly measure progress towards the achievement of these time bound goals. This work will be a key deliverable for the new role of Principal Advisor – Organisational Performance.

15. Part 5 includes the output measures for each group of activities. The number of output measures has been reduced from about 145 measures in the 2015 LTP to 60. These have been approved by Audit NZ and bring us into line with other regional councils.

16. The new outcome measures are as follows.

Outcome measures

17. Water

17.1. By 2025, plans for catchments where life supporting capacity is compromised are in place and actively implemented

17.2. By 2025, Tāngata Whenua values for all catchments are identified and embedded in the Regional Resource Management Plan

17.3. By 2030, all aquifers, lakes and rivers will have community-agreed quantity and quality limits in force

17.4. By 2030, cultural monitoring tools are in-use in all catchments

17.5. By 2030, all popular Hawke’s Bay swimming sites will be swimmable 80% of the time, and 90% of the time by 2040 (source: NPS –FM updated Aug 2017)

17.6. By 2050, there will be an improving trend in the life-supporting capacity of all of the region’s degraded rivers and major streams.

18. Land

18.1. By 2025, stock is excluded from all year-round flowing streams and rivers and at least 30% are fenced and planted to filter contaminants

18.2. By 2025, Land Use Suitability information is available to all commercial land owners to inform smarter land use

18.3. By 2030, all commercial farms, orchards and vineyards operate under a Farm Environment Management Plan or an independently audited industry best-practice framework

18.4. By 2030, all farms in critical source areas will have phosphorus management plans being implemented, with at least 50% of highly erodible land treated with soil conservation plantings

18.5. By 2030, there will be 20% less contaminants from urban and rural environments into receiving waterbodies

18.6. By 2050, all highly erodible land will be under tree cover

18.7. By 2050, there will be 50% less contaminant from urban and rural environments into receiving waterbodies.

19. Biodiversity

19.1. By 2020, regional priority locations for ecosystem restoration – including in the coastal marine area – have been identified

19.2. By 2030, key (target) species and habitat (sites) are prioritised and under active restoration (source: HB Biodiversity Strategy 2015-2050 and Action Plan 2017-2020)

19.3. By 2050, a full range of indigenous habitats and ecosystems, and abundance and distributions of taonga species are maintained and increased in every catchment in Hawke’s Bay (source: HB Biodiversity Strategy 2015-2050 and Action Plan 2017-2020)

19.4. By 2050, Hawke’s Bay is predator free in line with NZ 2050 target.

20. Services and Infrastructure

20.1. By 2025, regional air quality consistently meets World Health Organisation guidelines

20.2. By 2025, coastal hazards are being managed to meet foreseeable climate change risks to coastal communities out to 2100

20.3. By 2025, the Napier Port is future-proofed with the addition of a new wharf with supporting land transport infrastructure

20.4. By 2030, flood risk is being managed to meet foreseeable climate change risks out to 2100

20.5. By 2030, HB has environmentally sustainable, harvestable water identified and stored or plans to be stored if required.

20.6. By 2040, Hawke’s Bay is carbon neutral.

Balanced budget

21. Under section 100 of the Local Government Act 2002, the Council must ensure that each year’s projected operating revenues are set at a level sufficient to meet that year’s projected operating expenses. Where this is not the case, the council should resolve that it is financially prudent.

22. As specified in the Financial Strategy, HBRC has prepared the LTP with a balanced budget with no in built surplus with the addition of minor carry forwards in year 1.

Audit of LTP

23. Section 94 of the Local Government Act covers the audit requirement for the final LTP. Section 94(1) states:

“The Long Term Plan must contain a report from the Auditor General on:

(a) Whether the Plan gives effect to the purpose set out in Section 93(6) [i.e. the purpose of a LTP]; and

(b) The quality of the information and assumptions underlying the forecast information provided in the Plan.”

24. At the time of this agenda going out, staff are awaiting verbal clearance from Audit New Zealand. Staff are confident that clearance will be achieved. Any changes required by Audit NZ will be provided to Council prior to adoption.

25. Formal clearance and an audit opinion will be given at the Council meeting on 27 June 2018.

Next steps

26. Under the Act 2002, the final LTP must be sent out no later than one month after Council’s formal approval. It is intended to print and bind hard copies in house. These will be available mid-July.

27. The LTP will be available on our website on 2 July.

28. Staff will reply to submitters advising them of Council’s final decisions. Submitters will receive a standardised response if they commented on one of our seven key consultation topics. Individualised responses will be sent to specific submitters.

Decision Making Process

29. Section 93 of the Local Government Act 2002 prescribes the statutory requirements in relation to long-term plans. Council must use the special consultative procedure in adopting a long-term plan. This process has been undertaken and reflects the high degree of significance associated with adopting a LTP.

Recommendations

That the Hawke’s Bay Regional Council:

1. Receives the “Adoption of the HBRC’s 2018-28 Long Term Plan” staff report.

2. Authorises the Chair and Chief Executive to sign the Audit New Zealand Letter of Representation on behalf of the Council.

3. Receives the Audit New Zealand audit opinion on the 2018-2028 Long Term Plan.

4. Adopts the audited 2018-2028 Long Term Plan as presented, with any minor editorial corrections as necessary, in accordance with Section 93 of the Local Government Act 2002.

5. Instructs staff to publish the HBRC 2018-28 Long Term Plan in its final form, within one month of today in accordance with legislative requirements.

Authored by:

Manton Collings

Corporate Accountant

Desiree Cull

Programme Leader

Leeanne Hooper

Principal Governance Advisor

Jessica Ellerm

Group Manager
Corporate Services

Approved by:

James Palmer

Chief Executive

Attachment/s

⇨1

2018-28 Long Term Plan for adoption

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 June 2018

Subject: Recommendations from the Regional Transport Committee

Reason for Report

1. The following matter was considered by the Regional Transport Committee on 1 June 2018, and is now presented to Council for consideration and approval.

Review of Regional Land Transport Plan 2015-25 (RLTP)

2. The RLTP is a statutory document that must be prepared by the Regional Transport Committee (RTC) every six years and approved by the Regional Council. This is a requirement of the Land Transport Management Act 2003 (LTMA).The Regional Council adopted the current RLTP in April 2015.

3. The RLTP comprises two parts:

3.1. The strategic direction for land transport in the region

3.2. The regional transport programme, setting out a programme of proposed land transport activities and financial forecasts.

4. An interim review of the RLTP is required by the end of June 2018, so that any updates to the programme of activities can inform the three-year National Land Transport Programme that will be published before September 2018.

5. Any activities for which the region is seeking funding from the National Land Transport Fund must be included in the RLTP. However, the RLTP is a living document and may be varied at a later date, if required, in order to include new activities.

6. Over the last year, the Regional Transport Committee has reviewed both the strategic front-end of the document and the programme of activities submitted for funding. As there were no significant changes (as determined by the RLTP significance policy), a targeted consultation process was undertaken with key stakeholders.

7. Every three years the government releases its policy statement on land transport (GPS) which sets its strategic direction for land transport. Due to the change in government in 2017, the draft GPS was only released in April this year and won’t be finalised until July.

8. The draft GPS has two principal strategic objectives, road safety and access, with supporting objectives of value for money and environment. The draft GPS allocates funds from the National Land Transport Fund in accordance with these objectives, and so proposes significant increases in available funding for walking and cycling, public transport, local road improvements and a decrease in funding for state highway projects, notably some of the previous government’s large Roads of National Significance projects.

9. The RLTP must be consistent with the GPS and so the Regional Transport Committee has reviewed its plan in light of the draft GPS and made further changes.

10. These changes are reflective of the RTC’s desire to investigate, as and when possible, innovative opportunities for the region to achieve better outcomes for community access, the environment and road safety, utilising the funding opportunities set out in the GPS and also in the Provincial Growth Fund (which may be used to fund transport projects that don’t meet NZTA criteria for funding).

11. Funding will of course continue for the region’s major safety and efficiency projects on strategic routes – the Pakowhai-Links Road intersection upgrade, Whakatu Arterial Link, Prebensen Drive-Hyderabad Roundabout upgrade, Watchman Road –Airport Entrance, all of which are underway or nearly complete.

12. New activities included in the Plan are heavily weighted towards improving road safety, with a number of projects proposed to improve road safety on State Highway 2 north and south, the HB Expressway, and later, State Highway 5.

13. Other major activities include upgrading bridges on Hastings District roads to allow for High Productivity Motor Vehicle access, which will facilitate more efficient transport of primary produce to its destination.

14. Public transport, walking and cycling and other local road projects remain at current levels for the meantime; however the councils are awaiting possible announcements on changes to the rate of subsidy provided by NZTA for certain activities. This could enable additional work to be undertaken within the local share envelope. Any such changes would be added to the RLTP by way of a variation.

15. The draft GPS also makes provision for the funding of footpath maintenance, which previously had to be fully funded from rates. Councils have adjusted their funding requests in the RLTP to account for this.

16. The proposed RLTP is attached.

Decision Making Process

17. These items were specifically considered at the Committee level.

Recommendations

The Regional Transport Committee recommends that Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy and that Council can exercise its discretion and make decisions on these issues without conferring directly with the community.

Regional Land Transport Plan 2015-25 2018 Review

2. Approves the Regional Land Transport Plan 2015-25 as amended by the 2018 review.

3. Forwards the Regional Land Transport Plan to the New Zealand Transport Agency no later than 30 June 2018, as required under the Land Transport Management Act 2003.

Reports Received

4. Notes that the following reports were provided to the Regional Transport Committee meeting:

4.1 Advisory Representatives' Verbal Updates

4.2 June 2018 Transport Manager's Report

4.3 NZTA Central Region - Regional Director's Report June 2018

4.4 June 2018 Public Transport Update

4.5 Roadsafe Hawke's Bay June 2018 Update

Authored by: Approved by:

Anne Redgrave

Transport Manager

Liz Lambert

Group Manager
External Relations

Attachment/s

⇨1

RLTP Review 2015-25

Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 June 2018

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 Lots 1 & 2

DP 11873

CT J1/822

- Agreement for Sale and Purchase

1.1.2 Lot 96

DP 13055

CT E2/18

- Agreement for Sale and Purchase

1.1.3 Lot 1

DP 14447

CT G2/650

- Agreement for Sale and Purchase

1.1.4 Lot 35

DP 4488

CT 55/136

- Agreement for Sale and Purchase

1.1.5 Lot 52

DP 13039

CT E2/11

- Transfer

1.1.6 Lot 68

DP 12207

CT D1/1442

- Agreement for Sale and Purchase

- Transfer

4229

4231

4232

4233

4234

4235

4236

29 May 2018

12 June 2018

15 June 2018

1.2

1.2.1 D. Carruth

(Delegations under Resource Management Act 1991; Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908 and Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174)

4230

8 June 2018

2. As a result of sales, the current numbers of Leasehold properties owned by Council are:

2.1. 2 cross lease properties were sold, with 79 remaining on Council’s books

2.2. 6 single leasehold properties were sold, with 116 remaining on Council’s books.

Decision Making Process

3. 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:

3.1 Sections 97 and 88 of the Act do not apply

3.2 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

3.3 That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision making process.

Recommendations

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy 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. Confirms the action to affix the Common Seal.

Authored by:

Trudy Kilkolly

Financial Accountant

Diane Wisely

Executive Assistant

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

James Palmer

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 27 June 2018

SUBJECT: Significant HBRC Staff Projects and Activities through July 2018

Reason for Report

1. The table below is provided for Councillors’ information, to inform them of significant issues and activities over the next couple of months.

Project	Team /Section	Description	Activity Status Update
2018-2028 Long Term Plan	Governance & Project Leader		1. Decisions from deliberations on 24 May to be incorporated into budgets and LTP documents for adoption by Council 27 June. 2. Communicate Decisions on submissions to all submitters during July 3. Publish 2018-28 LTP for release by 27 July
Ngaruroro WCO application hearings	Policy	WCO Special Tribunal hearings	4. On 1 June, The Tribunal issued a memorandum (Minute) following a teleconference it hosted amongst parties. In short, the Minute confirmed the following resolutions: a) HBRC will make the TANK science reports available on their website, as they come available from July 2018. The Special Tribunal will be advised when these reports are publically available. b) HBRC will make the TANK group’s final recommendations, as to a draft plan change, available to the Tribunal by 30 August 2018. c) The Applicants will circulate Version 3 of the draft Water Conservation Order to the Tribunal by 14 September 2018. d) The Tribunal will hold another conference, with parties to the process, in mid-October 2018 to discuss the timetable going forward. The Tribunal will advise at a later date whether this conference will be held by telephone or in person. 5. On 1 June, the Tribunal also invited submissions from parties on legal advice that the Tribunal had received regarding additional notification of the WCO application. Six parties submitted on the legal advice, including HBRC. As at 18 June, the Tribunal was yet to issue any further directions on the matter of renotification of the WCO application.
Hawke’s Bay Drinking Water	Policy	Joint Working Group	6. Meetings on a monthly basis. 7. Providing secretarial and technical support to the JWG, through: a) monitoring of the Action Plan and White Paper to ensure actions are being progressed b) acting as ‘link’ between JWG and other related projects, such as TANK. 8. On behalf of the TANK group, JWG has engaged a contractor (Good Earth Matters) to develop draft rules, objectives & policies on drinking water safety for possible incorporation into the TANK plan change - likely to be completed in the next few months.
Hawke’s Bay Drinking Water	Governance	HB Drinking Water Governance Joint Committee	9. Next meeting of the Joint Committee is scheduled on 8 August
TANK	Groundwater Science	Heretaunga Plains groundwater flow model	10. Modelling to inform TANK decisions is completed. Reporting is well underway, with the following anticipated timeframes for delivery: a. MODFLOW Heretaunga Plains uncertainty analysis and contaminant transport (completed) b. SOURCE Ngaruroro storage modelling (completed) c. MODFLOW 1 – Groundwater model development (completed) d. SOURCE 1 – Surface water model development (completed) e. Addendum to fish habitat modelling (June) f. MODFLOW Methods for applied uncertainty analysis (completed [letter report]) g. MODFLOW 2 – Groundwater scenario modelling (July) h. SOURCE 2 – Surface water scenario modelling (July) i. Heretaunga springs (July) j. Irrigation demand and recharge – Heretaunga Plains (July) k. Irrigation demand and recharge – Upper TANK catchments (July)
TANK cont’d	Water Quality & Ecology		11. Modelling for optimal shading architecture to help design riparian planting configurations has yielded predictions. A first draft map has been produced for the Heretaunga drainage scheme. 12. Monitoring options for tracking progress towards water quality limits are being developed for the TANK plan 13. 1 round of Karamu faecal source tracking has been undertaken, which yielded primarily avian sources 14. Continuing with documentation to support proposed estuarine water quality goals on a regional and national basis. 15. Review of storm water and sediment draft rules.
	Policy	Stakeholder Engagement for Policy Development	16. Next TANK Group meetings are scheduled for 27 June and 26 July. 17. Recap and briefings were presented to Regional Planning Committee meetings on 21 March and 2 May. 18. Policy drafting is well-underway and continues in liaison with TANK Group and working groups.
State of the Environment	Land Science	Sediment modelling	19. Ongoing sediment and erosion scenario modelling
		High river flow sediment measurements to calibrate erosion modelling	20. Sediment samplers beginning to be deployed across main river outlets to record sediment concentrations during high flow events
	Air Quality	Napier hazardous air pollutant monitoring	21. Sampling at Marewa Park is complete. Analysis and reporting by GNS is due in September 2018.
	Hydrology	Additional low flow monitoring devices	22. 2 additional flow monitoring devices to be installed in the Tutaekuri-Waimate and Karamu rivers to provide better precision for low flow monitoring
Environmental Hotspots	Water Quality & Ecology		23. Multibeam analysis for the Wairoa Hard completed April 2018. Report due October 2018. 24. HBMaC Roadmap successfully launched on 8 June 2018. 25. Better strategies for tubeworm removal have been scoped with round 2 removal planned for June. 26. Hydrological and groundwater investigations being scoped/contracted for Ahuriri catchment. 27. Working with the Whakaki community to confirm details for the Freshwater Improvement Fund application, which has been delayed for 12 months to allow council to obtain the necessary consents. 28. Producing community brochures to explain different components of the FIF proposed workstream at Whakaki (items requiring consent).
Environmental Hotspots	Land Science		29. Point Source (land stability) project establishing baseline land condition across all hotspot areas
PC6 Implementation	Land Science & Land Management		30. Land Management staff have been working closely with the regulatory team and new FEMP Project Manager to hand over responsibilities and information for the management of PC6 tasks that are now in a regulatory context. Staff will continue to have a heavy involvement with landholders and priority areas now that the momentum has shifted to the implementation of farm plans. 31. A field day on Carbon Forestry is being organised by Land Management staff & Crowe Horwath on 17 July (1-4pm) at the Nisbett Taumata Estate Woolshed in Central HB. The day will consider different carbon forestry options available, gaining carbon credits for different planting purposes and assessing your farms greenhouse gas footprint. 32. Continue to Collecting data from 10 wetland monitoring sites established across Tukituki Catchment in 2017. 33. Priority sub-catchment water quality runs continue in the Tukipo sub-catchment 34. Compiling water quality results and reporting for Porangahau/Maharakeke and Kahahakuri sub-catchments
Clifton to Tangoio Coastal Hazards Strategy 2120	Asset Management	Developing coastal hazard options and solutions for priority cells, along with funding considerations for consultation	35. July 2 funding team is meeting to discuss the way forward, with consideration of contributory fund, budgets, workload, legal issues.
Engineering	Asset Management	Esk Valley, Mangaone, Tutaekuri Floods	36. A flood report is being prepared for the Esk flood, and now for the additional flood on June 12. Investigation into river control work on Waipawa at Pendle Hill, and Ngaruroro at rail bridge.
		Gisborne District Council Stopbank upgrade	37. The design report is being prepared to show the effects of the proposal on specific landowners as part of the consent application requirements.
		Consent Evaluation and stormwater analysis	38. Continue to assist HBRC Consents section with advice for subdivision consents including Awatoto Industrial, Iona Triangle, Howard St.
		Glazebrook Dam	39. Finalise Dam-break study as part of a feasibility study for flow augmentation of the HP streams.
		Nuhaka River Road	40. Contract let to realign part of the Nuhaka River to enable road to be re-opened. Working with Wairoa District Council. Seeking permission from Iwi, F&G and DoC.
	Open Spaces	WAL - Pakowhai Regional Park Carpark Closure	41. Pakowhai Regional Park carpark is closed from while the WAL Pakowhai Rd roundabout is constructed. A temporary carpark is established downstream of the Chesterhope Bridge off Farndon Rd. Staff are working with HDC staff to review options for a carpark upgrade while the carpark is closed.
		Plant Thru Winter	42. Plant thru winter community planting programme in progress.
Land Management		RLS	43. from 1 July the Land Management Team will be called Catchment Management, with a team of 4 based in Wairoa, 4 in Napier and 3 in Waipawa. Recruitment additional staff continuing through July. 44. Staff particularly busy signing off completed RLS projects in June. 37 projects were funded this year & staff will provide a summary to Council once final tallies are in. Staff also managed the delivery and re-distribution of 35,000 plants to various riparian projects during June.
Biosecurity	Biodiversity		45. Business launch of HB biodiversity Foundation, Final presentations to Council LTPs, complete setting up of HB Biodiversity Website
	Animal pest management		46. Complete discussions with PF 2050 regarding Predator Free Hawkes Bay 47. Regional Pest Management Plan hearings.
	Cape to City		48. A range of activities across work streams including the trap checking, early childhood education teacher training day and Hapu Hikoi to Poutiri Ao o Tane. 49. Finalising OMV funding for predator Free Mahia. 50. Finalising Air New Zealand trust agreement to support environmental education within the region. 51. Finalising 17-18 research programme reports
	Plant pest		52. Continuing urban Woolly nightshade programme. 53. Ongoing work on Yellow Bristle Grass awareness programme in Wairoa
Resource Consents		Applications processing/pending	54. Te Mata Mushrooms Air discharge remains on hold pending application for related consents required from HDC. 55. HBRC Gravel extraction Ngaruroro Tukituki, Waipawa and Tutaekuri. Further information has been requested and is to be provided before the end of May (date to be extended). 56. PanPac coastal discharge. Mediation concluded on June 8 and agreement on conditions, Trust and duration was reached with all but one party. This will be referred to the Environment Court and the Court will advise how they wish to proceed. 57. Landcorp Ahuriri stormwater discharge application. On hold while parties discuss this and related NCC stormwater discharge consent applications. A request for further information has been sent. Site visit held on 13 June. 58. Port of Napier wharf extension and dredging application. Notified and 42 submissions lodged. Prehearing meetings to be held June. Hearing tentatively set for August. 59. Clifton coastal protection works application. Hearing held on 6 June. 60. NCC stormwater discharge consent applications lodged. A request for further information has been sent. Site visit held on 13 June.
Resource Use		Te Mata Mushrooms	61. Enforcement process continues in the Environment Court re continued offensive and objectionable odour being discharged beyond the boundary. The matter comes before the Court for a sentencing indication hearing on 2 July 2018. At the end of which, the court will give Te Mata Mushrooms 24 hours to either plead guilty or seek a defended hearing.
Science		Ecosystem Health indices	62. A pilot project on developing ecosystem health indices is underway with Cawthron Research Institute and MfE (co-funding a council data collection exercise). All samples have been collected, still require 15 fish surveys before end of June.
Science cont’d		Riparian Habitat and Deposited Sediment indices	63. HBRC is leading an EMAR project (Environmental Monitoring and Reporting) looking at developing nationally consistent indices to use for riparian habitat and deposited sediment. Candidate indices were confirmed at a recent SWIM meeting (Surface Water Integrated Management) and should be used across the country this summer. Envirolink in partnership with Environment Southland being used to develop youtube style guidance material for habitat assessment to enable consistency amongst council as well as non-council users (e.g. tangata whenua, community groups and landowners)
		Shallow Lakes	64. A report has been drafted which provides a high level assessment of four of Hawke’s Bay’s shallow lakes (Poukawa, Whatuma, Oingo and Runanga).
	Land Science	Land use mapping	65. Regional winter forage crop mapping underway looking at areas of winter forage crops using remote sensing.

Decision Making Process

2. 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 the Significant HBRC Staff Projects and Activities through June 2018 report.

Authored by:

Mary-Anne Baker

Senior Planner

Paul Barrett

Principal Consents Planner

Desiree Cull

Programme Leader

Rina Douglas

Senior Planner

Craig Goodier

Team Leader
Principal Engineer Modelling

Keiko Hashiba

Terrestrial Ecologist

Nathan Heath

Acting Manager Land Management

Dr Andy Hicks

Team Leader/Principal Scientist - Water Quality and Ecology

Leeanne Hooper

Principal Governance Advisor

Gavin Ide

Manager, Strategy and Policy

Dr Kathleen Kozyniak

Principal Scientist Climate and Air

Campbell Leckie

Manager Land Services

Dr Barry Lynch

Team Leader Principal Scientist Land Science

Anna Madarasz-Smith

Senior Scientist - Coastal Quality

Malcolm Miller

Manager Consents

Anne Redgrave

Transport Manager

Thomas Wilding

Senior Scientist

Wayne Wright

Manager Resource Use

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

Liz Lambert

Group Manager
External Relations

Iain Maxwell

Group Manager
Resource Management

Tom Skerman

Group Manager
Strategic Development

Attachment/s

There are no attachments for this report.

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