Agenda of Regional Council Meeting

	Agenda Item	Action	Responsible	Status Comment
1	Leveraging Council's $1M Recovery Fund	Explore opportunities for leveraging Freshwater Improvement Fund with the remainder of funds in the Recovery fund for shovel ready projects in the Wairoa area	I Maxwell /C Dolley	IRG Funding is currently being finalised for $1m Ferry Road Erosion protection works Wairoa. AMG will also be actively looking at FIF and HBRC Recovery Fund opportunities over the next 3 months.

	Agenda Item	Action	Responsible	Status Comment
2	Our Hawke's Bay Environment 2013-18 Key Issues Report	Schedule workshop for discussion of on focus areas of key issues	I Maxwell /L Hooper	Workshop for councillors and tangata whenua representatives scheduled following RPC meeting, at 2pm on 14 October 2020, will be run by Science Team.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 30 September 2020

SUBJECT: Significant Organisational Activities through October 2020

Reason for Report

1. The commentary following is for Councillors’ information, to highlight significant areas of Council activity. Significant Council resources are being directed toward various initiatives which reflect the Council’s evolving agenda and it is considered important that Council is consistently informed on progress in areas that have or may create a high external profile.

Whole of Region

Project / Activity Description

Significant Upcoming Milestone(s)

Group /Team or Section

Risk Maturity

1. As part of HBRC’s risk management maturity and the implementation of the recently adopted HBRC risk management policy and framework. Formalisation of the recently revised enterprise risks will occur. Steps include bowtie workshop with the ELT to fnalise the first three enterprise risks. Output of these workshops will be provided in an update to the FARS in November for validation an endorsement by the Committee of the applied methodology.

Risk and Assurance

Internal Audit Programme

2. At the FARS meeting on 12 August 2020 the 2020-21 internal audit plan was approved. A dashboard outlining the delivery plan of the audits is being developed and will be presented to the FARS for endorsement at the November meeting.

3. An issues and action tracking dashboard that will include internal audit findings is being developed and will be present to the FARS for endorsement at the November meeting.

4. An internal review of HBRC business continuity response to the first wave of Covid19 is progressing. It is anticipated that the report and findings will be presented to the FARS at the November meeting.

5. The privacy review timeline is being rebaselined due to the recruitment of two key roles being the P&C Manager and the Information Management Advisor. These roles are central to HBRC privacy policy and process decisions.

Risk and Assurance

Elections

6. Advertised – 19 September – the right of 5% of HB enrolled voters to demand a poll (by 21 February 2021) on the Electoral System (FPP or STV) to be used for the 2022 and 2025 elections.

Strategy & Governance

Electoral Officer

Regional Business Partner Programme & Callaghan Innovation

7. From 16 March to date, RBP have engaged with 970 Hawke’s Bay businesses through the COVID-19 Business Advisory Fund response mechanism. RBPs have issued 789 Capability Vouchers worth $1,702,632.25 to HB businesses, with an average voucher value of $2157.96.

Area of Expertise	Number of Vouchers	Value Issued
Business Planning	237	$564,172.25
Cashflow Management	232	$472,470.50
Digital Enablement/Marketing	194	$424,911.50
Employment Relations/People Mgt	115	$221,483.00
Health & Wellbeing	11	$19,595.00

8. Top sectors RBP are working with are:

8.1 Other Services

8.2 Accommodation & Food

8.3 Construction

8.4 Retail

8.5 Agriculture, Forestry & Fishing

8.6 Manufacturing

9. The total COVID Business Advisory funding pool for HB is $2,056,128.00. The original proposed date to issue all the funds was the end of October 2020 however this is now more likely to be mid November which is a common theme across the country and $29m of the $40m has been issued to businesses. The length of time between initial discussions with the businesses and issuing of vouchers is increasing, at times it can be 8 weeks; this is due to discussions with business owners being more complex and looking for multi-faceted solutions. This is a common theme across the country and $30m of the $40m has been issued to businesses.

10. The additional Fixed Term 2.8 FTE RBP are in place and operational, with 2 FTE due to end 21 October and the 0.8FTE on 20 November. Concerns have been raised by the Contract Manager to RBP National Team for the need for a contract extension and discussions with MBIE are occurring, with proposed extension end date 27 November.

11. RBP has issued $74,590 of the Tourism Transition Fund of the original $135,755. This fund enables tourism businesses to access an additional $5k for the same expert advice topics as COVID fund and includes business hibernation advice.

12. RBP presented at a Central Hawke’s Bay District Council Business Connector function in August along with MPI, Business Hawke’s Bay, Chamber of Commerce, MSD and local CHB business support initiatives – there were 43 attendees from 35 businesses present.

13. Discussions are occurring with Wairoa District Council regards supporting a group of Wairoa businesses in the area of Digital Enablement and RBP is engaging with TPK and Ngati Kahungunu to further increase engagement with Maori business. Current level of Maori businesses engagement is 10%.

RBP

People & Capability (including Health& Safety)

14. Health and safety still actively managing Covid-19 process under Level 2. Ongoing maintenance of staff as Covid-19 testing continues.

15. Successful 4WD theory and practical training delivered on the 20-21 August 2020 with a total of 15 staff attending over the 2 days.

16. Health and Safety ‘Driving Awareness’ competition in August as a follow up to the July campaign for all HBRC staff focusing on Fleet Management, Speed, Drive to the Conditions, Off Road Vehicles and Other Road Users.

17. 8 site observation/audits completed on areas in Works Group and Nursery

18. Health and Safety workplan finalised.

19. Health and Safety attended Finance, Regulation and Asset management and Corporate Services Group meetings.

20. Health and Safety attended the ‘Shake Out’ planning session in preparation for the annual earthquake preparedness exercise in October.

21. Health and Safety coordinated a meeting with CDEM and Napier and Hastings Councils to discuss reviewing the pandemic documentation for the CDEM site.

22. Health and Safety procured a new EAP provider for the Council, EAP Services, start date of 1 December 2020.

23. Health and Safety met with ‘Ask Your Team’ to discuss survey content for annual staff survey which will be conducted on the 2 November 2020.

24. The People & Capability Team are currently recruiting for 12 vacant roles ranging across the organization.

25. Since July the team have successfully filled 29 roles and after 3 rounds of advertising, targeting specific job boards and institutes, the role of Team Leader Hydrology/Hydrogeology was filled with the successful candidate starting on 26 October 2020.

26. The Executive Leadership Team are pleased to have appointed a candidate into the newly created Group Manager Policy and Regulation position with the successful person starting on 30 November 2020.

People & Capability

Outstanding Water Bodies Plan Change (PC7)

27. Further submission period closed on 10 September. Seventeen further submissions received supporting or opposing parts of original 41 submissions received.

28. Staff preparing reports and recommendations for the hearing scheduled to commence 30 November. Members of Hearing Panel have been confirmed as per RPC’s recommendations in July.

Strategic Planning

Policy & Planning

Climate Change

29. Staff continue to follow up actions arising from Council decisions made at 29 July meeting, including climate change communications campaign to launch in September. Also aligning work programmes in LTP preparation to ‘test’ community support for extra funding and new service suggested to be offered through a semi-autonomous unit focussing on climate change mitigation in Hawke’s Bay.

30. Community perceptions surveying nearing completion and SIL Research’s final report due this month, thereafter intended to present that to Council meeting on 28 October.

Strategic Planning

Policy & Planning

MarComms

Regional Land Transport Plan

31. RTC meeting and workshop considered long list of potential management interventions and the methodology used to produce a shortlist for the Programme Business Case being developed to support the RLTP. Further development of RLTP by the RTC at workshop on 30^th October.

Strategic Planning

Transport

Public Transport

32. RITS (the new bus ticketing system) successfully went live on 24 August. Feedback about the new system has so far been positive.

Strategic Planning

Transport

Marine and Coast

33. HBRC has just received the final report modelling how changes to the state of different stressors in six Hawke’s Bay estuaries may change their health in terms of biodiversity and ecosystem services.

Integrated Catchment Management

Marine and Coast

Predator Free Hawke’s Bay

34. Work is continuing with the control largely completed on the first 5500 ha and detection about to begin to establish possum proof of absence on that area. About 20% of the next 9000ha has bait stations set up to begin the possum eradication on that area.

Integrated Catchment Management

Biosecurity/
Biodiversity

Northern Catchment
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Mohaka Plan Change	35. Update report was prepared for Regional Planning Committee meeting held on 19 August 2020, however this item was deferred and will now be reported to RPC 14^h October.	Strategic Planning Policy & Planning Team
Nuhaka River Road	36. WDC received PGF funding for shovel ready project. QRS have been appointed as the principal contractor. HBRC are acting in an advisory capacity with respect to design.	Asset Management Regional Projects
Ferry Hotel, River Parade, Wairoa	37. HBRC was successful in receiving Govt Resilience Funding managed by the PDU. Project value $1m erosion protection at Ferry Hotel and River Parade, Wairoa with Govt contributing $640k and local contribution of $360k. Project has been initiated- waiting on Contract from PDU.	Asset Management Regional Projects
Area Manager Activity	38. Staff have now relocated back into the Freyberg office and are thrilled with the facilities and space now. 39. We have now employed a replacement project manager for the Whakaki Freshwater Improvement Fund. Trevor Waikawa started the role a fortnight ago. Trevor is born and bred in Whakaki and recently graduated from Otago University. Great to be able to provide these opportunities for locals. 40. The PGF Shovel Ready Projects are progressing well. The Rahui Bridge construction has nearly finished. The Nuhaka River Road diversion is well progressed and fish relocation from the existing river channel is occurring this week. The Rangatahi Dropout at Mahia has begun works. 41. Supporting tangata whenua engagement with the Mohaka Plan Change will occupy a significant proportion of the workload for October.	Integrated Catchment Management

Central Catchments

Project / Activity Description

Significant Upcoming Milestone(s)

Group /Team or Section

TANK plan change (PC9)

42. 240 submissions have been received on the TANK plan. The hearings commissioners are in the process of being appointed for a hearing scheduled for May 2021.

Strategic Planning

Policy & Planning

Ngaruroro and Clive Rivers – Application for Water Conservation Order

43. New evidence has been introduced by Forest and Bird with regards to high flows and dams. This has been accepted by the Judge. Expert caucusing is expected to commence 1 October.

44. Environment Court mediation proceedings are scheduled for October 15^th and 16^th.

45. The Environment Court has set hearing dates as 9 – 19 February 2021.

Heretaunga Plains Urban Development Strategy (HPUDS)

46. HPUDS Implementation Working Group meeting held on 14 September at Hastings District Council offices. No decisions made, but discussions have prompted re-evaluation of HPUDS, scope of the review that was scheduled for 2021/22, and implications of the new national policy statement on urban development as it relates to the Hastings/ Napier urban area. Recommendations for resource management system reform were also considered, particularly recommendations for 14 non-regulatory regional spatial plans across the country.

47. From 20 August 2020, the new national policy statement on urban development took effect. The Hastings/Napier urban area is categorised as a ‘Tier 2’ urban area with a large number of policy directives for RMA planning, infrastructure planning and resource consent decision-making.

48. MFE officials have indicated that the NPS on Highly Productive Land is likely to be finalised in first half of 2021, so that will need to be implemented alongside all other NPSs currently in place.

Heretaunga Plains Scheme review

49. Hydrodynamic model for Tutaekuri has been constructed and calibrated. Model scenarios include 100yr, 200yr and 500yr. Seeking advice from NIWA on confirming methodology of deriving discharges from flood frequency analysis and how we add the climate change into the model.

50. Ngaruroro River hydrodynamic modelling underway, with completion by November.

51. Communication and consultation plan being discussed with internal stakeholders

52. Land matters being investigated for future engineering options.

Asset Management

Regional Projects

Flood Control Schemes

53. Heretaunga Plains level of service condition assessment approximately 80% complete. Currently working on Lower Tukituki.

54. Esk Scheme review commenced and progressing well.

55. Asset Management Plans are under review. Feedback from Council workshop being incorporated. Financial modelling will commence in October.

56. HBRC was successful in receiving Resilience Funding managed through PDU to accelerate the work to meet 1:500 level of protection for the Heretaunga Plains Flood Control Scheme. $20m overall project budget with 64% being funded by Govt and 36% by HBRC. Awaiting Contract with PDU. Project acceleration has been initiated.

Asset Management

Engineering

Regional Projects

Clive River Dredging

57. Land lease/purchase negotiations ongoing. Two potential sites identified with landowner.

58. Soil testing results of proposed site(s) received, analysis of results underway

59. Two options for land-based discharge being discussed with costs and risks to be confirmed.

60. Resource Consent underway.

Asset Management

Regional Projects

Lake Tūtira

61. Kahakanui Stream Bridge – Four invited tenders for bridge construction, tender documents released 14^th September. Construction programmed for completion early 2021.

62. Assessment of Environmental Effects for Southern Outlet is being reviewed by Maungahuru Tangitu Trust.

63. Lake buoys on Waikōpiro and Tūtira have been serviced/upgraded and are currently operating well. The air curtain has been running without fault since the end of August. The continuous data being collected from both lakes will provide a robust dataset to help assess performance of the air curtain this season.

Asset Management

Regional Projects

Gravel Management

64. Maraekakaho access road – Construction underway, good progress on site.

65. Global gravel extraction – prehearing meeting with all submitters have not resolved all matters and other prehearing is schedule for October.

Meeting and brief update is now scheduled in October with all gravel extractors.

Gravel allocation report for FY 2020-21 completed and approved.

Asset Management

Regional Projects/ Schemes

Heretaunga Plains water take renewals

66. Takes from the Heretaunga Plains unconfined aquifer (approx. 200 lodged) expired 31 May 2018 and are being exercised under s124. These are being processed as a group, as requested by applicants. Report on the individual and combined stream depletion effects now received, and the draft report being prepared for discussion with parties. Decision on notification pending.

Regulation

Consents

Bayview/ Whirinaki track

67. Awaiting confirmation on funding. After council’s approval the project will re start with detailed design phase.

Asset Management

Regional Projects

NZCT Priority Project Ahuriri Underpass Flooding Safety Issues

68. Working with NZTA around solution – seawall plan is finalised by OPUS for Southern End. Funding required by HBRC for $125k, MBIE approved $125k, NZTA approved $80k for total of project cost of $330k. Awaiting for HBRC funding approval.

Asset Management

Open Spaces

NZCT Priority Project Waimarama Rd Safety project

69. Working with HDC to complete safer off-road section parallel to Waimarama Road, for all trail users. Expected completion December 2020. Awaiting for HBRC funding contribution.

Asset Management

Open Spaces

NCC / HBRC Westshore tidal gates and NCC Lagoon Farm stormwater discharge consents

70. These applications were limited notified. The submission period has closed and no submissions were received. The consent will be processed without need for a hearing. Draft conditions have been circulated.

Regulation

Consents

Napier City Council Wastewater

71. Napier City Council was served an abatement notice (AN) requiring it to cease the unauthorised discharge (leaks) by 30 October 2020. Following a request from Napier City Council in September, HBRC agreed to extend the date on abatement notice to the 30th November 2020. The request was a result of the Level 3 covid19 restrictions in Auckland, which had delayed specialist equipment and contractors. The extension to the date was deemed necessary to allow the repairs to be undertaken effectively and safely.

72. NCC has started pre repair inspections (23/9/20) and repairs are expected to take one month but are heavily dependent on weather and H&S of divers carrying out the repairs.

Regulation

Compliance & Enforcement

Hastings District Council Wastewater

73. Nothing to update on wastewater but HDC are experiencing issues with industrial discharges into its stormwater network that ultimately contribute to ongoing water quality issues in the Ruahapia Stream. Council has served HDC with an abatement notice to cease discharges of wastewater into its stormwater network in the Ruahapia.

Regulation

Compliance & Enforcement

Haumoana Ponds

74. A limited investigation into the Haumoana ponds last summer has raised questions around the potential cumulative effects of septic tanks from this, and other communities, around Hawke’s Bay. Further work will be undertaken in collaboration with HDC this summer to confirm potential risks.

Asset Management

Env. Science

Compliance & Enforcement

Air complaints and Enforcement

75. Pollution Response and Enforcement continue to receive a large number of call in relation to smoky fires. Airshed season is now complete; however, we are still calls as people rush to burn before fire restrictions are in place.

76. Fires since 1 September to 22 September.

Burning 2019 (1 Sep - 22Sep)		2020 (1 Sep – 22 Sep)
Indoor	4	4
Material (non veg)	2	10

Vegetation	5	14

77. Total infringements for year to date 1/7/20 – 23/9/20 = 19

No. Infringement	RMA section breached	Discharge of contaminants to:
1	15(1)(a)	Water
1	15(1)(b)	Land where may enter water
1	15 (1)(c)	Industrial or trade premises to air
1	15(1)(d)	Industrial or trade premises to land
14	15(2)(a)	Air or land where breaches our RRMP
1	22(2)	Failure to supply information (name and address) to an enforcement officer

78. We still await the sentencing decisions on the following Hastings Demolition (Burning), Maxwell Farms (Effluent discharge), Farmers Transport and Dynes Tapanui (Stormwater discharge) and a sentencing indication on Johnny Appleseed (Spray drift).

79. Additionally HBRC currently have 13 prosecutions at various stages, which we are unable to comment on.

Regulation

Compliance & Enforcement

Hawea Historical Park / Karamu Stream Diversion

80. Hawea Park Draft Management plan is still under development. It needs clarifications on funding and co-funding opportunities.

81. Ongoing monthly meetings with the Hawea Historical Park management committee.

82. Carpark construction completed.

83. Stage 2 of the development being planned by the Open Spaces and Regional Project team.

Asset Management

Open Spaces

Regional Assets

Waitangi Regional Park

84. Marquee area - minor earthworks and foundations to be installed early next month.

85. Overflow car park nearing completion.

86. Ongoing antisocial behaviour. CCTV cameras being considered for Pakowhai Regional Park carpark and Waitangi Regional Park carpark.

87. New Waikahu wetland functioning well as a biodiversity habitat with remedial work complete to protect a section of the berm from wind lap erosion.

88. Stage 3 of the development including vehicle access to the river and public toilet being considered and some feasibility planning under way.

Asset Management

Regional Projects

Southern Catchments
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
CHBDC Wastewater discharge consents	89. Actions proposed by CHBDC for municipal wastewater discharges include further resource consents for new and amended discharges, which HBRC anticipates will be lodged soon. Meeting updating on progress held on 6 August	Regulation Consents & Compliance
Tukituki ecosystem health guidance for farm consenting	90. Guidance being finalised for farm plan providers to work through potential ecosystem health mitigations to include in farm plan consents, in situations when nitrogen limits cannot be met immediately.	Regulation Consents & Compliance Integrated Catchment Management
Tukipo constructed wetland	91. Needing to redesign the Fonterra sponsored Tukipo multi-cell constructed wetland to avoid impacts on a stand of remnant wetland forest. Resource consent application should be submitted early October and intended construction target is still this summer. NIWA have secured funding for monitoring and are committed to installing continuous flow and water quality monitoring to maximise knowledge gained around performance of these systems for nitrogen reduction performance. It will be a highlight from the Tukipo Catchment Care Group’s initiatives.	Integrated Catchment Management
Production land use consents - Tukituki catchment	92. 25 complete production land use activity consents have been lodged and approximately 150 pre-applications received to date. Letters have been sent to applicants informing them of the new deadline of 26 February 2021 for lodgement of Tukituki land use resource consent applications. 93. RPC agreed to withdraw from plan change process 19 August. Staff to reset consenting programme for consenting following Cl briefing. Need to integrate recent national changes (NES Freshwater and Stock exclusion regulations.) 94. Compliance staff are following up on the seven remaining properties who still have not provided a farm environment management plan (FEMP). To date we have had some 800 FEMPs.	Regulation Consents & Compliance
Upper Tukituki Flood Control Scheme	95. HBRC was successful in obtaining Government Resilience Funding managed through the PDU. There are two projects: 96. Erosion Control on Waipawa River near SH50 Bridge- Total project $1m with $640k from Government and $360k from NZTA and HBRC combined. Project has been initiated with a review of the existing design and will be allocated to Works Group. PDU draft contract received, due to be countersigned before mid-October. 97. Extraction of Gravel from Upper Tukituki Scheme. $8m project total with $5.1m from Govt and $2.9m from HBRC. Further consultation with UTT ratepayers and LTP proposal to assist with long term loan funding option. Industry workshop held in early September, ongoing communication with key stakeholders.	Asset Management Regional Projects

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 the Hawke’s Bay Regional Council receives and notes the Significant HBRC Activities through October 2020 staff report.

Authored by:

Mary-Anne Baker

Acting Transport Manager

Jack Blunden

Team Leader Compliance - Urban & Industrial

Jenny Brown

Principal Business Advisor RBP

Desiree Cull

Strategy and Governance Manager

Peter Davis

Manager Environmental Information

Russell Engelke

Team Leader Open Spaces

Dean Evans

Manager Catchments Delivery

Craig Goodier

Team Leader Engineering

Martina Groves

Acting Regional Asset Manager

Nathan Heath

Area Manager Northern Hawke's Bay

Gavin Ide

Principal Advisor Strategic Planning

David Keracher

Acting Manager Regional Projects

Dr Kathleen Kozyniak

Principal Scientist (Air)

Campbell Leckie

Manager Catchment Services

Dr Barry Lynch

Team Leader/Principal Scientist (Land Science)

Anna Madarasz-Smith

Team Leader/Principal Scientist Marine and Coast

Helen Marsden

Risk and Assurance Lead

Kirsty McInnes

Senior Advisor Health and Safety

Malcolm Miller

Manager Consents

Thomas Petrie

Project Manager Environmental Hotspots

Bronda Smith

Chief Financial Officer

Dr Jeff Smith

Manager Science

Erika Teariki

People & Capability Advisor – People Solutions

Jolene Townshend

Senior Advisor Integrated Catchment Management

Nick Zaman

Manager Compliance

Dr Andy Hicks

Team Leader/Principal Scientist Water Quality and Ecology

Approved by:

Tom Skerman

Regional Water Security Programme Director

Liz Lambert

Group Manager Regulation

Iain Maxwell

Group Manager Integrated Catchment Management

Chris Dolley

Group Manager Asset Management

James Palmer

Chief Executive

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 30 September 2020

Subject: Report and Recommendations from the Corporate and Strategic Committee

Reason for Report

1. The following matters were considered by the Corporate and Strategic Committee (C&S) meeting on 2 September 2020 and the recommendations agreed are now presented for Council’s consideration alongside any additional commentary the Chair, Councillor Neil Kirton, wishes to offer.

Agenda Items

2. The Report and Recommendations from the 12 August 2020 Finance Audit and Risk Sub-committee item reported to the Corporate and Strategic Committee on the meeting’s proceedings including:

2.1. an update on progress implementing the management actions in response to recommendations from the 2018 Internal Audit of Procurement and Purchasing, Office of the Auditor General best practice guidelines and templates issued by the Ministry of Business, Innovation & Employment

2.2. the recommendation to adopt the HBRC Procurement Policy and Manual as amended to strengthen HBRC’s ability to support the region’s economic recovery, which was resolved without change

2.3. the recommendation to C&S to approve both the Risk Management Policy and the Risk Management Framework as proposed and as being appropriate and sufficiently robust to manage Council’s significant risks, which was resolved without change

2.4. discussion of Crowe’s Internal Audit – Risk Management Maturity Assessment report and agreement that management actions outlined in the Risk Maturity roadmap undertaken or planned for the future adequately respond to the findings and recommendations of the report

2.5. presentation of the six-monthly update of Council’s enterprise risk profile in a new format that includes a residual risk rating for each enterprise risk, control corrective actions and supporting risk information such as known emerging issues or uncertainties that may impact Council’s risk profile, and which will continue to improve and evolve as the phases in the risk maturity roadmap are delivered, and as the risk management framework is embedded into the business

2.6. confirmation of the Annual 2020-21 Internal Audit Work Plan, which will include a People, Recruitment, Retention and Wellbeing review, a Data Analytics internal audit, and retention of 40 hours to address any new risk area that may arise during the financial year

2.7. an Internal Audits Review and Action Plan update on the status of the Crowe recommendations arising from previous Water Management, Health & Safety, Procurement and Contracts Management internal audits, as well as an overview of review and audit-type activities across the organisation, such as the Works Group and Biosecurity section 17a reviews.

2.8. IT is addressing telephone and finance system risks through implementation of the new systems and will work with the Risk and Assurance Lead to address IT risks and prioritise IT projects using a risk based approach in response to the recommendations from the Cyber Security Internal Audit

2.9. an update from Council’s Auditor on the 2019-20 Annual Report process being undertaking to enable adoption by the end of the calendar year, highlighting that the following key risks and issues will be a main focus of the audit:

2.9.1. Valuation of investments in HBRIC

2.9.2. COVID-19 impact on public sector accounting standards

2.9.3. Revaluation of Infrastructure Assets

2.9.4. Fair Value of other revalued assets

2.9.5. Changes in the Group capital structure

2.9.6. Managed Funds Investments

2.9.7. Consolidation process

2.9.8. Adjustments to ensure HBRIC and NPHL results are correctly incorporated into HBRC's group results

2.9.9. Valuation of investment properties.

3. The Regional Water Security Programme – CHB Project item sought the Committee’s agreement and recommendation to Council to put further development of a business case for pre-feasibility for above-ground water storage sites on hold temporarily and shift focus to undertaking cost and benefit assessment of smaller scale storage, progressing the Managed Aquifer Recharge Pilot Study and developing a focussed and targeted engagement strategy with Central Hawke’s Bay iwi, landowners and the wider community on the Regional Water Assessment project as reflected in the recommendations to Council.

4. The Eastern Screen Alliance Deputation: Building A Regional Screen Industry in Hawke's Bay made a presentation about the potential for establishing a film industry in the region, seeking Council’s support for the initiative.

5. The Regional Drought Relief Fund item updated the Committee on assistance provided to farmers and lifestyle block holders to date and started a discussion about the options for dispersing the remaining funds.

6. The Update on Covid-19: CDEM Financial Report and Resurgence Planning item provided the committee with a snapshot of the Civil Defense group’s Covid-19 response financials and virus resurgence response planning, including work with Tihei Mauri Ora.

7. An update provided by Dr Nick Jones, Public Health Officer for the HB District Health Board on public health Covid-19 resurgence preparedness highlighted better streamlining of testing facilities, the mandatory requirement to wear masks on public transport and that there is no evidence of community transmission in Hawke’s Bay as yet.

8. The HBRC Covid-19 Response Review Update item provided an update on the internal review of HBRC’s organisational response to the Covid-19 pandemic with commentary noting that overall feedback from staff was that the organisation responded well and that experiences and learnings will lead to much better, more efficient responses to future events. Additional information and management comments will be collated into a final report for presentation to the Executive Leadership Team and then the Finance, Audit and Risk Sub-committee on 11 November 2020.

9. Subsequent to the C&S meeting staff thought it worthy of note that at the time WHO declared a ‘global pandemic’ (11 March 2020) a regional pandemic plan for the wider Hawke’s Bay was in existence. It was noted however that at the time of declaration the regional pandemic plan did require some refreshing. The regional pandemic plan sat alongside CDEM’s crisis response documentation, and no documented pandemic plan specific to HBRC existed. Still, it was noted that at the time of WHO’s declaration, HBRC had already initiated a structured Covid-19 response through its documented business continuity plan processes and Coordinated Incident Response Management (CIMS) structure. Therefore, by the time of declaration HBRC had commenced the development of HBRC specific pandemic response processes, including staff isolation, segregation, remote working, pandemic PPE and general pandemic supplies.

10. Sarah Tully, Regional Recovery Manager, presented the Regional Economic Recovery item, providing statistics on the economic and social impacts of the drought and Covid-19 on the region and current recovery activities under way.

11. The Cycleway Co-funding item sought additional funding not included in 2018-28 Long Term Plan budgets for the Waimarama Road Safety Improvements, Ahuriri Underpass Improvements, and Bayview Whirinaki Trail capital priority projects to leverage Central Government funding approved by the Ministry for Business Innovation and Employment.

12. The HBRIC Ltd and Napier Port Quarterly Update item presented financial results in a session with the public excluded due to the commercial sensitivity of some of the financial information being shared.

13. The 2019-20 Annual Interim Results and Carry Forwards for 2020-21 item presented the interim financial results for the 2019-20 financial year to 30 June 2020, prior to Audit, and requested the carry forward of expenditure budget from 2019-20 to 2020-21 of $1.36M of budgeted operating expenditure and $9.64M of budgeted capital expenditure.

14. The Organisational Performance Report for Period 1 April to 30 June 2020 item provided the organisation’s performance against the level of service measures set in the 2018 Long Term Plan. Future reports will be amended to indicate whether financial variance is under or over budget.

Decision Making Process

15. These items were specifically considered by the Corporate and Strategic Committee on 10 June 2020 and are now the subject of the following recommendations to Council.

Recommendations

The Corporate and Strategic Committee recommends that Hawke’s Bay Regional Council:

1. Receives and considers the “Report from the Corporate and Strategic Committee”.

Report and Recommendations from the 12 August 2020 Finance Audit and Risk Sub-committee

3. Accepts the HBRC Procurement Policy and Manual as amended to strengthen HBRC’s ability to support the region’s economic recovery.

4. Approves both the Risk Management Policy and the Risk Management Framework as proposed, and as being appropriate and sufficiently robust to manage Council’s significant risks.

Regional Water Security Programme – CHB Project

5. Acknowledges that staff will not progress, at this stage, a business case for pre-feasibility for above ground water storage sites, but will progress cost and benefit assessment of smaller scale storage and the Managed Aquifer Recharge Pilot Study.

6. Urgently progresses the Managed Aquifer Recharge Pilot, including comprehensive engagement with iwi, landowners and the wider community on all aspects of the proposed pilot.

7. Further engages with the Central Hawke’s Bay community through the Regional Water Assessment project to develop broader non-storage policy solutions and interventions for achieving water security in that district.

8. Urgently progresses a focussed and targeted engagement strategy with Central Hawke’s Bay iwi, landowners and the wider community on the Regional Water Assessment project to develop broader non-storage policy solutions and interventions for achieving water security in Central Hawke’s Bay, including water use conservation and efficiency measures, farm systems and land use change, water allocation, recycling and recovery policies.

9. Requests that staff report back on the focussed and targeted engagement strategy at the next available Council meeting.

Cycleway Co-funding

10. Supports and approves the loan funding of $418,500 for the Waimarama Road Safety Improvements, Ahuriri Underpass Improvements, and Bayview Whirinaki Trail capital priority projects to leverage Central Government funding approved by the Ministry for Business Innovation and Employment. (Map attached for the HB Trail extensions).

2019-20 Annual Interim Results and Carry Forwards for 2020-21

11. Approves the carry forward of all expenditure requests from the 2019-20 to the 2020-21 budget; being:

Operating Expenditure Carry Forward

Capital Expenditure Carry Forward

Reports Received

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

12.1. Eastern Screen Alliance Deputation: Building A Regional Screen Industry in Hawke's Bay (and presentation)

12.2. Regional Drought Relief Fund

12.3. Update on Covid-19: CDEM Financial Report and Resurgence Planning

12.4. Dr Nick Jones Covid-19 Resurgence Update

12.5. HBRC Covid-19 Response Review Update

12.6. HBRIC Ltd and Napier Port Quarterly Update (Public Excluded)

12.7. Organisational Performance Report for Period 1 April to 30 June 2020.

Authored by:

Desiree Cull

Strategy and Governance Manager

Bronda Smith

Chief Financial Officer

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇩1

HB Trails extensions

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 30 September 2020

Subject: Report and Recommendations from the Māori Committee

Reason for Report

1. The following matters were considered by the Māori Committee meeting on 9 September 2020 and the recommendations agreed are now presented for Council’s consideration alongside any additional commentary the Co-chairs, Mike Paku and Michelle McIlroy, wish to offer.

Agenda Items

2. The Take Ripoata Ā Takiwā – Taiwhenua Representatives' Updates item provided updates on information and/or activities of interest to tangata whenua, highlighting:

2.1. The Heretaunga Taiwhenua report noted ongoing work of Nga Pou Mataara Hau which monitors and measures a range of cultural indicators with western science derived proxy indicators to report on the “state” of the Tukituki awa.

2.2. The Wairoa Taiwhenua report highlighted the planting days held at Te Rauhina marae organised by Tiaho School and Kura Kaupapa Maori o Ngati Kahungunu as well as the Wairoa River Cultural Impact assessment

2.3. Te Taiwhenua o Te Whanganui ā Orotu covered key points on the Draft MOU with Napier City Council, driver licencing for rangatahi, Covid-19 and better health services, the Mohaka Plan Change and the use of 1080.

2.4. Te Taiwhenua o Tamatea noted tangata whenua engagement through the significant process of the CHB District Plan to incorporate tangata whenua views, funding regimes (post Covid-19), Te Puna public notification (archaeological reports in process) and the appointment of the Lake Whatuma Management Group.

2.5. It was also noted that Paora Sciascia’s leave of absence has been approved by the Tamatea Settlement Trust until early next year.

3. The Māori Committee Terms of Reference, Charter and Work Programme item sought confirmation of the Charter and Terms of Reference as proposed by the working group comprised of Dr Roger Maaka, Peter Eden and Api Robin. The Committee agreed further amendments in relation to waahi tapu would be worked through and finalised by a sub-committee before recommending Council adoption today.

4. The Tangata Whenua Orientation and Remuneration item presented the Māori Committee Orientation Guide, including information about Council’s processes for setting and paying tangata whenua representatives’ remuneration.

5. The Farm Environmental Management Plans item provided a presentation about Farm Environment Management Plans (FEMPs) which covered content, how they work to achieve their purpose and fit into the Council’s regulatory framework.

6. The Northern Hawke's Bay Area Update and Wairoa Catchment Delivery Case Study item introduced Nathan Heath, newly appointed Area Manager for the Northern Hawke’s Bay region to support the delivery of Integrated Catchment work activities.

7. A presentation introducing the Future Farming Trust covered the purpose and work of the Trust, and sought feedback on engagement with Māori landowners.

8. The August 2020 Statutory Advocacy Update agenda provided a regular update from the HBRC Policy Team including Takutai Moana applications.

9. The Significant Organisational Activities Through September 2020 item presented an overview, as presented to the 26 August Regional Council meeting, of HBRC organisational activities across Council.

Decision Making Process

10. These items were specifically considered by the Māori Committee on 4 March 2020 and are now the subject of the following recommendations to Council.

Recommendations

The Māori Committee recommends that Hawke’s Bay Regional Council:

1. Receives and considers the “Report and Recommendations from the Māori Committee” and commentary provided by the Co-chairs.

Māori Committee Terms of Reference, Charter and Work Programme

3. The Māori Committee has revised their Terms of Reference and Charter and recommends that the Regional Council adopts these as proposed.

4. In line with the Charter and Terms of Reference, the Māori Committee is required to propose a work programme to Council for the triennium period. The Māori Committee recognises the need to develop a triennium work programme alongside and as an integrated feature of the 2021-31 Long Term Plan discussion and therefore recommends production of the triennial work programme be a collaborative and mana enhancing feature within the 2021-31 LTP process.

Reports Received

5. Notes that the following reports were provided to the Māori Committee

5.1. Take Ripoata Ā Takiwā – Taiwhenua Representatives' Updates

5.2. Tangata Whenua Orientation and Remuneration

5.3. Farm Environmental Management Plans

5.4. Northern Hawke's Bay Area Update and Wairoa Catchment Delivery Case Study

5.5. Introduction to the Future Farming Trust

5.6. Verbal TANK Plan Change Submissions update

5.7. August 2020 Statutory Advocacy Update

5.8. Significant Organisational Activities through September 2020.

Authored by:

Leeanne Hooper

Team Leader Governance

Te Wairama Munro

Maori Engagement Coordinator

Melanie Taiaroa

Senior Advisor Maori Partnerships

Approved by:

Pieri Munro

Te Pou Whakarae

Attachment/s

⇩1	Proposed Maori Committee Terms of Reference
⇩2	Maori Committee Charter

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 30 September 2020

Subject: Flood Control Resilience Funding

Reason for Report

1. This report seeks Council resolution to authorise the Chief Executive as signatory for an HBRC Funding Agreement Contract with the Infrastructure Reference Group managed by the Provincial Development Unit for funding four projects approved as part of the Crown’s Flood Control Resilience Funding.

Officers’ Recommendations

2. Council officers recommend that Council agrees and resolves to authorise the Chief Executive to enter into the funding agreement contract with the Provincial Development Unit for funding the four projects outlined in this agenda item.

Background

3. In Budget 2020, Cabinet agreed to provide a $3 billion investment in infrastructure to support New Zealand's economic recovery as part of the 11 May COVID-19 Response and Recovery Fund.

4. The Government established the Infrastructure Reference Group (IRG) to identify a pipeline of shovel-ready projects to support the economy during the COVID-19 rebuild. The process was supported by Crown Infrastructure Partners.

5. In May 2020 HBRC Asset Management Group contributed to a River Managers Sector Flood Protection Shovel Ready Project Package to assist with COVID-19 Recovery.

6. On 24 June 2020, the Cabinet Economic Development Committee, agreed that the Ministry of Business Innovation and Employment (acting through the Provincial Development Unit) would be responsible for delivering projects approved by IRG Ministers where they are best placed to do so.

7. All $299m of River Managers Sector Flood Protection Shovel Ready Projects were approved including the $30m HBRC package consisting of four projects.

8. Council have received confirmation from IRG of funding allocation for a total amount of up to $19.2m (plus GST, if any) which is a 64% contribution to the projects.

9. Although the sector package was approved in full each participant council will have their own program level contract.

Discussion

Project 1: Heretaunga Plains Flood Control Scheme (Levels of Service) - $20m

10. This project is programmed over a three-year period and will build upon existing river modelling, condition assessment and property analysis undertaken as part of the Heretaunga Plains Flood Control Scheme level of service review.

11. HBRC co-funding of $7.2 million is required to match IRG funds of $12.8 million.

12. Capital funds of $1.52 and $1.46m per year are allocated in the current LTP for FY 2021-22 and 2022-23. This leaves a shortfall of $3.72 million which will see $1.86m brought forward from existing capital provisions in each of FY 2026-27 and 2027-28.

13. FY 2020-21 includes $500k remedial repair works on Tutaekuri river sites identified from comprehensive condition assessments undertaken over the last 2 years.

14. FY 2021-22 includes a total of $9.75 million split into several packages of physical works projects. Each project shall be identified through LoS prioritisation on Tutaekuri river sites, designed by external consultants with technical supervision from HBRC Engineering team and procured through local contractors.

15. FY 2022-23 includes a total of $9.75 million split into several packages of physical works projects. Each project shall be identified through LoS prioritisation on Ngaruroro river sites, designed by external consultants with technical supervision from HBRC Engineering team and procured through local contractors.

16. Key risks include inaccurate forecasting of cashflow during year one. This is mitigated by PDU agreement to allow annual budget reviews.

Table 1 - Heretaunga Plains Flood Control Scheme Budget Forecast

	IRG Contribution	HBRC Contribution
20-21	$320k	$180k
21-22	$6.24m	$3.51m
22-23	$6.24m	$3.51m
TOTAL	$12.8m	$7.2m

Project 2: Upper Tukituki Flood Control Scheme Gravel Extraction - $8 million

17. Removal of over 800,000m³ gravel is required to maintain existing nameplate capacity of 1:100 level of protection from Upper Tukituki scheme. Gravel aggradation across this scheme has been an area of concern for the last decade.

18. IRG funding is a significant opportunity to subsidise gravel extraction from this region with a focus on competitive tendering and supporting the local economy.

19. This project is programmed over a three-year period which requires HBRC co-funding of $2.88 million to release IRG funding of $5.12 million. It is proposed that a significant portion of HBRC’s contribution be loan funded then paid back via targeted and general rates under Upper Tukituki scheme, following consultation during the 2021-31 LTP

20. The scheme balance of $340k will be used in FY 2020-21 at no cost to Upper Tukituki scheme ratepayers. This will allow the project to commence without delay.

21. FY 2021-22 total allocated costs of $3 million, includes HBRC contribution from scheme loan of $1.08 million over 20-30 years. This will require increase in targeted rates during FY 2021-22.

22. FY 2022-23 total allocated costs of $4.054 million, includes HBRC contribution from scheme loan of $1.46 million over 20-30 years. This will require increase in targeted rates during FY 2022-23.

23. Pre consultation has commenced with UTT Scheme ratepayers

24. Key risks include Upper Tukituki scheme ratepayers rejecting proposal for increased rates over 20-30 years to fund this project. This is mitigated by only investing scheme balance during FY 2020-21 until confirmation of loan funded shortfall. If this project does not proceed, HBRC can refund any IRG funds in full with no financial risk to Council.

Table 2 – Upper Tukituki Gravel Extraction Flood Control Scheme

	IRG Contribution	HBRC Contribution
20-21	$604k	$340k
21-22	$1.92m	$1.08m
22-23	$2.594m	$1.46m
TOTAL	$5.12m	$2.88m

Project 3: Upper Tukituki Flood Control Scheme SH50/Waipawa Erosion - $1 million

25. This one-year project programme will provide engineered erosion protection works of southern approach to NZTA’s SH50 bridge. The left bank of the Waipawa river immediately upstream of SH50 bridge has eroded significantly over the past five years. If left unattended, there is a risk that the southern approach will be compromised and the river may outflank the bridge.

26. Preliminary engineering design complete, final detailed design being undertaken by external designer with assistance from HBRC engineering team.

27. HBRC Works Group will be engaged as main contractor to commence concrete casting of akmon blocks on site within one month of Contract.

28. IRG funding contribution of $640k will be matched with $360k local contribution. NZTA have committed $300k of funding towards this project with the remaining $60k allocated from Upper Tukituki Scheme capital budget for FY 2020-21.

29. Key risks include river works outside of spring/summer, this is mitigated by accelerating concrete casting works to ensure timely programming of project.

Table 3 - Upper Tukituki Flood Control Scheme SH50/Waipawa Erosion

	IRG Contribution	HBRC Contribution	NZTA Contribution
20-21	$640k	$60k	$300k
TOTAL	$640k	$60k	$300k

Project 4: Wairoa River Ferry Road Erosion - $1 million

30. This one-year project programme will provide steel sheet piled erosion protection works on left bank of the Wairoa river. Over the last five years the Wairoa River has gradually undermined the embankment immediately south of the Ferry Hotel. This has in turn compromised Wairoa District Council (WDC) water assets and more recently Carroll Street and River Parade.

31. Preliminary design report and scoping works completed, design and build procurement for works with direct award to specialist sheet pilling contractor. Local sub-contractor to provide civil works for project

32. IRG funding contribution of $640k will be matched with $360k local contribution. WDC have committed $180k of funding towards this project with the remaining $180k allocated from Wairoa scheme reserve.

33. Key risks include insufficient time to deliver works based on time constraints, this is mitigated by direct engagement of specialist sheet piling contractor to undertake design and build contract. Additional benefits of direct engagement include early contractor engagement to refine scope and streamline design to ensure maximum value for erosion protection works.

Table 4 – Wairoa River Ferry Hotel Erosion

	IRG Contribution	HBRC Contribution	WDC Contribution
20-21	$640k	$180k	$180k
TOTAL	$640k	$180k	$180k

IRG Contract Requirements

34. Contract signing is required within 30 days of Ministerial approval (estimated to be mid-October).

35. Upon signing of the contract IRG will release 10% of total contract contributions as a single payment (up to $1.92 million), ensuring a positive cashflow for projects.

36. Drawdown of IRG funding is on a quarterly basis at a programme level. Financial forecasting for each project will form the basis of payments.

37. Local representatives of the Provincial Development Unit (PDU) confirmed that a revised programme can be submitted annually for each of three-year projects reducing the risk of basing quarterly payments on early project schedules.

38. Heavy focus on social procurement, particularly around employment opportunities for Pasifika, Māori, local businesses and the workforce affected by COVID-19. This will be managed by weighted attributes in competitive tenders, social procurement contract clauses and reporting for all contracts linked to this work package. Significant reporting is required on social procurement matters.

39. HBRC estimates that at least 63 jobs will be created through this work package.

Significance and Engagement Policy Assessment

40. Project 1 Heretaunga Plains Flood Control Level of Service has previously been consulted on and is a major project in the current LTP. No further consultation is planned.

41. Project 2 UTT Flood Control Scheme Gravel Extraction project has significant impact on the targeted scheme ratepayers and this project will be a consultation topic in the 2021 LTP.

42. Project 3 UTT Flood Control Scheme SH50/Waipawa Erosion is partially contained in the current capital budget and this funding allows for acceleration of this project. No further consultation is planned.

43. Project 4 Wairoa River Ferry Road Erosion is a known issue that HBRC has been in ongoing discussions with WDC to resolve. This funding allows the project to proceed. No further consultation is planned.

Decision Making Process

44. Council and its committees are 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:

44.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

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

44.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

44.4. The persons affected by this decision are all ratepayers in the region. 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 Hawke’s Bay Regional Council:

1. Receives and considers the “Flood Control Resilience Funding” staff report.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community or persons likely to have an interest in the decision; acknowledging that the UTT Gravel Extraction (Project 2) will be subject to consultation through the 2021 Long Term Plan consultation process.

3. Authorises the Chief Executive Chief as signatory for an HBRC Funding Agreement Contract with the Infrastructure Reference Group managed by the Provincial Development Unit for funding four projects approved as part of the Crown’s Flood Control Resilience Funding.

Authored by: Approved by:

David Keracher

Acting Manager Regional Projects

Chris Dolley

Group Manager Asset Management

Attachment/s

There are no attachments for this report.

Members	Twelve representatives nominated by the Tangata Whenua, appointed at the first meeting of the Māori Committee each triennium; plus one Proxy representative nominated to attend in an appointee’s absence; being:
	- Bill Blake - Katarina Kawana - Michelle McIlroy - Merianne Tipoki Orlowski - Theresa Smith	Kaumatua (Wairoa) Wairoa Taiwhenua Wairoa Kahungunu Executive Proxy (Wairoa Taiwhenua) Proxy (Kahungunu Executive)
	- Haami Hilton - Marei Apatu - Michael Paku - TBA	Kaumatua (Hastings) Heretaunga Taiwhenua Heretaunga Taiwhenua Proxy (Heretaunga Taiwhenua)
	- Dr Roger Maaka - Zack Makaore - Paora Sciascia - Marge Hape	Kaumatua (Central Hawke’s Bay) Tamatea Taiwhenua Tamatea Taiwhenua Proxy (Tamatea Taiwhenua)
	- Peter Eden - Api Robin - Rose Hiha - TBA	Te Taiwhenua o Te Whanganui-a-Orotū (Napier) Te Taiwhenua o Te Whanganui-a-Orotū (Napier) Te Taiwhenua o Te Whanganui-a-Orotū (Napier) Proxy
	Up to three elected members of the Council, being: Councillors Charles Lambert, Hinewai Ormsby, Rick Barker, and Rex Graham (ex Officio)
Meeting Frequency	Bi-monthly, but with the Co-chairs of the Committee, in consultation with the HBRC Chief Executive and Te Pou Whakarae, able to arrange additional meetings should the need arise

Topic	Raised by