Agenda of Regional Council Meeting - Wednesday, 27 April 2022

HAWKE’S BAY REGIONAL COUNCIL

27 April 2022

Subject: Significant organisational activities looking forward through May 2022

Purpose of Agenda Item

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 of progress in areas that have or may create a high external profile.

Northern Catchment
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Biodiversity and biosecurity	1. The Whakatipu Mahia project milestone for a ‘Proof of Absence’ across the trapping network has been delayed by Covid and several storms in the Mahia area and is now planned to be fully installed and operational by the end of May. The network will be supported by possum dog surveys due to run in May/June.	ICM – Catchment Services
Whakakī Freshwater Improvement Fund Project	2. Resource consent and easement have been granted for the weir to be located near the new bridge ‘The Landing’ and construction is set to begin shortly. 3. Following the recent flood event across the Wairoa and Gisborne region, the civil contractors have been pulled in for involvement with some significant pieces of emergency flood recovery works in Wairoa. This movement of resources has caused some delays in the construction of the weir, with site establishment expected to now begin in May and start dates to be released to the community shortly.	ICM – Catchment Delivery
Wairoa flood event	4. Working alongside Wairoa and Gisborne District councils and other key agencies to support our rural communities recovering from the recent flood events. HBRC key focus will be intelligence gathering and developing relevant recovery workshops aligned with community needs in a coordinated approach with other agencies.	ICM – Catchment Delivery

Central Catchments
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Flood Control Schemes - Resilience Funded projects	5. Taradale stopbank strengthening physical works 50% complete. Landscape planning for reinstatement of berm underway in partnership with Waiohiki marae. 6. East Clive stopbank investigations completed and options for HDC landfill being explored in collaboration with HDC. 7. Moteo stop bank detailed design under way. 8. Ngatarawa detailed design completed and native forest planting contract awarded.	Asset Management Engineering Regional Projects
Gravel Management	9. Hearing was held in December. 10. New set of conditions is now being finalised. 11. A final decision by the Hearing Panel is anticipated by end of April.	Asset Management Consents, Schemes
Waitangi Regional Park	12. Stage III development of the park includes safe vehicle access to the river and two ephemeral wetlands (wet or dry depending on season) on the flat berm area with delivery expected in May-June. 13. A funding application for infrastructure for cultural events at the marquee site and to service the proposed toilets at Waitangi Regional Park was submitted to the Tourism Infrastructure Fund (MBIE).	Asset Management Open Spaces
Hawea Historical Park / Karamu Stream Diversion	14. The Hawea Historical Park cultural component of the Draft Management Plan is complete and currently under internal review, with the final report to be implemented by end of FY 21/22. 15. Stage 3 project delivery includes construction work for widening of the confluence and enhancement work of the old Karamū Stream (flood gate) area.	Asset Management Open Spaces, Regional Assets
Bayview/ Whirinaki Cycleway	16. Napier City Council believes there are many uncertainties around land acquisition and community engagement, and therefore they don’t want to progress with this project and other options any further. It is suggested that this project is cancelled and funding distributed elsewhere.	Asset Management Regional Projects
Catchment group initiation - Sherenden.	17. A meeting is planned on 21 May for the Sherenden community to support the formation of a catchment group for the area. HBRC is working with Beef and Lamb to jointly support this.	ICM – Catchments Policy Implementation
Reticulated stock water workshops and Intensive winter grazing workshops	18. Earlier events were postponed due to Covid disruptions in rural areas. In May there will be a winter grazing and a reticulated stock water workshop at Tūtira. 19. Rescheduling the postponed Wairoa event is uncertain due to recent storm events.	ICM – Catchments Policy Implementation

Southern Catchments
Upper Tukituki Flood Control Scheme	20. Two contractors are making good progress extracting gravel on the Tukipo and Makaretu. 21. The anticipated release of the next tender has been delayed due to the rain event. 22. Targeted areas require a new survey due to recent flooding, to confirm gravel quantities before sending tenders to market. 23. Chilean needle grass exemption has been received from HBRC bio-security, allowing extraction in previously prohibited areas in the Waipawa (with some restriction on use of material).	Asset Management Regional Projects, Schemes

Southern Catchments

Project /Activity Description

Significant Upcoming Milestone(s)

Group /Team or Section

Upper Tukituki Flood Control Scheme

20. Two contractors are making good progress extracting gravel on the Tukipo and Makaretu.

21. The anticipated release of the next tender has been delayed due to the rain event.

22. Targeted areas require a new survey due to recent flooding, to confirm gravel quantities before sending tenders to market.

23. Chilean needle grass exemption has been received from HBRC bio-security, allowing extraction in previously prohibited areas in the Waipawa (with some restriction on use of material).

Asset Management

Regional Projects, Schemes

Whole of Region
Project /Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
River Flows	24. Several near-record flows were captured in the Tukipo, Waipawa and Wairoa catchments during the last storm and preparations are under way for the next weather event.	ICM – Environmental Information
Bioluminescent algae	25. Warm conditions after rain a few weeks ago led to bioluminescent algae appearing along the Napier coast, in particular Westshore beach. It lasted for several nights. We collected a water sample to confirm that it was non-toxic and spoke to the media regarding this natural phenomenon.	ICM – Environmental Science
Coastal bird survey Facebook live event	26. Surveyed 321 kilometres of HB coastline in January 2021, to record birds and marine mammals. Over 32,000 birds were counted. 27. From 6-7pm on Tuesday 10 May, the ecologist who led the survey, Nikki McArthur, will be presenting the results and talking through how they surveyed, what the results mean, and what’s next.	ICM – Environmental Science

PMO: Strategic Projects & Key BAU Programme Reporting

Sixteen key strategic (or change) projects/ BAU programmes are being tracked by the Project Management Office (PMO) and shared monthly throughout the lifecycle of these projects. These projects were selected because of their significance in terms of investment, risks, benefits, and interdependencies.

*Risk is inherent vs residual risk (i.e., RAG status prior to mitigations and controls implemented).

Performance Indicators (RAG): Green = On Track, Amber = At Risk, Red = Off Track, Grey = Not started/On hold

Status Change Keys:

Project/Programme Title

Schedule

Risks*

Budget

Comment

Status Change

Right Tree Right Place Pilot

Responses to the RTRP survey of landowners are coming in and the CDT continue to be involved with follow-up engagement, which is proving valuable on a range of discussion themes raised by farmers. Work will shortly begin on analysing survey responses. A 5-year planting programme has been developed for pilot farm 1 and commercial arrangements are progressing. Farm/forestry planning is underway with pilot farm 2. TNC has procured Regen Ag consultancy support, and this will be integrated with the RTRP work programme in the coming months. Alongside this, work is underway with TNC to consider appropriate naming for a RTRP/scaled-up project. Discussions continue with MPI about partnership opportunities.

Updated since 30 March

Regional Water Security Programme: Project 1: Heretaunga Water Storage

Ongoing assessment of the technical viability and consent-ability of medium-scale storage in the upper Ngaruroro River Catchment. Project team has finalised scope of works for next phase of investigations based on independent peer review of technical pre-feasibility. Terrestrial and aquatic ecological assessments impacted by March weather events but nearing completion.

Lowland stream solutions investigations subject to ongoing mana whenua discussions as well as development of Kotahi Co-governance arrangements.

Updated since 30 March

Project 2: Managed Aquifer Recharge

Technical workstreams for consenting completed. Mana whenua engagement process now extending into 18 months, but project team is hopeful that this will be concluded shortly, and the production of a CIA can pave the way for the final package of the consent application.

No change since 23 Feb

Project 3:
Regional Water Assessment

The Regional Water Assessment Interim Report (draft) was shared with Councillors and Executive at the workshop on 24 Nov 2021. Industry forum held on 17 Feb and presentation to Regional Leaders on 7 March.

No change since 23 Feb

Water Efficiency Programme Review (Future Water Use)

Landwise contracted to undertake scoping work and interviews with significant water users in conjunction with Regional Water Assessment engagements.

No change since 23 Feb

Ahuriri Regional Park

The project is in a planning phase to set up the right governance model with NCC, HBRC and Mana Ahuriri. There is a risk that this project could be protracted given the many issues that surround the Ahuriri Estuary and current resourcing of Mana Ahuriri to respond. The working group has met and recommended a Joint Committee structure comprising NCC, HBRC and Mana Ahuriri. Engagement is ongoing with Mana Ahuriri on their recommended model for the project going forward. Budget and schedule remain on track given that several years were allowed for planning, definition, and design prior to any construction.

Updated since 30 March

Clifton to Tangoio Coastal Hazards Strategy Implementation

The Memorandum of Transition has been agreed by all Councils and WDC and CHBDC have agreed that they support the S16 process. The team is preparing consultation material and writing to the Minister for Local Government as part of the S16 process.

Updated since 30 March

On-demand Public Transport

The buses arrived and are in the process of being fitted out. Engagement with our community partners is in full swing and direct engagement with the public will begin in May.

The operational side of the project is on track with the development of the app being finessed and customer service support being worked through. Launch date is 7 June.

Updated since 30 March

Kotahi Plan

An All Governors wananga was held on 13 April. There was discussion and agreement around the proposed governance structure for Kotahi and each takiwā, critical inputs from Governors through the plan development process and operational mahi for staff and technical advisors.

Council acknowledged the resourcing requirements for mana whenua and committed to providing support/funding.

Governors gave the greenlight for the project to proceed in its current form, and this, coupled with the recent appointment of a project manager will see the project gain momentum.

Updated since 30 March

Kotahi: Mohaka Plan Change

The Mohaka team of staff and technical advisors to Ngāti Pāhauwera Development Trust (NPDT) met on 30 March to touch base on progress and next steps. The Māori-led workstream has been focussing on the values ‘pou’ desktop assessment and wananga with mana whenua. It is intended to report back to RPC at the next meeting following approval from the Leaders rōpū on the values and visions.

Updated since 30 March

TANK Plan Change

Awaiting decision from Independent Hearings Panel.

Updated since 30 March

Tank Plan Implementation

Awaiting decision from Independent Hearings Panel.

Updated since 30 March

Tukituki Plan Policy Implementation

The decision has been made to stop reporting on Tukituki Plan Policy Implementation, following the completion of the Transition stage, with the move to business as usual.

Updated since 30 March

Farm Environmental Management Plans (FEMPs)

The extended deadline for 2021 FEMPs is now less than 30 working days away. Still 160 FEMPs to be received from providers plus another 25 properties with Compliance. 71.55 % of eligible land has been covered, an increase of 5.5% or 15500 ha of land since the last update.

Auditing process still progressing, and 2024 cycle planning has begun.

Risk and schedule will remain high due to extended deadline and number of FEMPs still to be received.

Updated since 30 March

Erosion Control Scheme (ECS) Programme (incl. Soil Conservation Nursery & HCEF)

Risks are amber due to shortages in labour market (fencers and planting crews) and rising material costs, e.g. fencing materials.

Our Catchment Advisors in Wairoa and Gisborne are currently assessing the impact of the recent flood events to understand how this will affect our projects for this financial year and the upcoming winter planting season.

In March, we counted 17,000 grade A poplar and willow poles at our nursery. These will be distributed across the region as ECS projects, after harvesting in June.

Staff working hard to allocate last of the 2021-2022 budget, but only fencing projects now available given the time of year and time left. Since fencer availability is problematic, Catchment Advisors are reaching out to fencing contractors to advise them of our scheme and keeping an updated contractor list.

Updated since 30 March

Ecosystem Prioritisation: Terrestrial

The decision was made to stop reporting on Ecosystem Prioritisation as it has transitioned to being an established programme with clear polices and reporting processes in place.

Updated since 30 March

Partial Pest Plan Review

The draft proposal has been submitted to the Biosecurity Working Party for first review. External stakeholder engagement has commenced with Forestry Groups about to be informed. A public consultation has been tentatively scheduled to commence from mid-June to mid-July. Timeline has been extended to October 2022 as there have been slight staffing resourcing changes, and an extension will allow more time to get the process correct. The EICC has been reported back to with findings from the BWP. The BWP has appointed an independent expert to run through the process and hear submissions after the public consultation period.

No change since 30 March

Flood Control & Drainage Scheme – IRG: Heretaunga Flood Control & Drainage Scheme Levels of Service

Additional resources of 2 dedicated FTEs are currently being recruited to assist in programme delivery.

Physical works have commenced and are ongoing at Taradale. All investigations complete for Moteo, East Clive, Ngatarawa and Roy’s Hill and design procurement ongoing for Ōmarunui. Construction for Ngatarawa, Moteo and East Clive is due to commence in Oct 2022.

Delays have occurred at Taradale over two significant weather events.

Updated since 30 March

Flood Control & Drainage Scheme – IRG: Upper Tukituki Flood Control Scheme

First round extraction has started with two contractors on the Makaretu and Tukipo.

Some delays in extraction have occurred due to adverse weather and high river levels

Spending expected to catch up when next tender rounds are sent to market and awarded.

Updated since 30 March

Flood Control & Drainage Scheme – IRG: Wairoa River, River Parade Erosion

Temporary traffic management in place awaiting guardrail to be installed and slope earthworks to be complete. We are implementing some of the recommendations in reinstatement and planting.

Minor damage has occurred to the site as a result of two weather events. This will be made good prior to completion of landscaping

Updated since 30 March

Revenue & Financing Policy/ Rates Review (incl. Scheme Rating Reviews)

Project scoping has commenced following the appointment of the new CFO. Transition of resource to the project is being worked through. Phase 1 first principals to be completed before local government elections, Phase 2 post elections. Workshops to be scoped and scheduled soon.

No change since 30 March

Enterprise Asset Management

Mapping exercise to commence to diagram current processes and data. Demonstration from vendor to view specific asset capabilities scheduled. Workshops to be scoped and scheduled once BA resource starts (early April). Data accuracy and confidence added to scope. Risks presently being managed are resource availability, data, and covid related.

No change since 30 March

Urban Catchment Plans (Te Karamū Catchment Plan/ Ahuriri Catchment Plan)

Karamū Catchment Coordinator commenced on 4 April.

Ahuriri Catchment Coordinator remains vacant.

High level project plan and introduction of staff will occur in the next quarter to EICC.

Added since 30 March

Project Summaries

1	Right Tree Right Place Pilot on up to five farms to understand the detailed set-up costs, partnership, and delivery options. Under the trial, we would offer a loan to landowners to plant trees on their erodible land. Opportunities being explored with The Nature Conservancy.
2	Regional Water Security Programme PGF funding has allowed us to investigate water supply options through two projects: Heretaunga Water Storage and Managed Aquifer Recharge in Central Hawke’s Bay. A 50-year Regional Water Assessment will inform the work, including regional water supply and demand into a future challenged by climate change.
3	Future Water Use Making better use of the water, we must complement water storage. Work with water users to drive more efficient and effective use to complement water storage.
4	Ahuriri Regional Park Working alongside NCC to redevelop the Lagoon Farm site into a Regional Park will allow for stormwater detention and wetland treatment for improved environmental outcomes, as well as providing cultural, educational, and recreational opportunities.
5	Clifton to Tangoio Coastal Hazards Strategy Implementation Working with HDC and NCC to implement the long-term (100 year) adaptive strategy for responding to coastal erosion and coastal inundation in priority areas of the coast between Clifton and Tangoio.
6	On-Demand Public Transport A new form of public transport that replaces fixed routes with an on-demand service. This will be a trial in Hastings and uses innovation and technology to lower the region’s transport emissions, provide better transport choices for the community, and will give more equitable access to public transport.
7	Kotahi Plan A combined resource management plan for the Hawke’s Bay region. The Regional Policy Statement and Regional Plan will be combined with the Regional Coastal Environment Plan which is due for review. In addition, the NPSFM 2020 requires us to develop a plan to give effect to Te Mana o Te Wai.
8	TANK Plan Change (Policy) Proposed TANK Plan Change (PPC9) will add new rules to the Regional Resource Management Plan to manage water quality and quantity for the Tūtaekurī, Ahuriri, Ngaruroro and Karamū (TANK) catchments. TANK Plan Change (Implementation): TANK Sub-catchments Community Engagement An external communications project, intended to inform rural landowners about the PC9 framework and to promote catchment group formation. It is a precursor to the overall PC9 Implementation, the latter contingent on a decision awaited from Hearings Commissioners and any subsequent appeals.
9	Tukituki Plan Policy Implementation Implementation of statutory deliverables related to the Tukituki Plan, with particular focus on changes arising from the Government’s response to the Science Advisory Panel’s review of Overseer. Farm Environmental Management Plans (FEMPs) FEMPs aim to address environmental outcomes and actions to improve environmental performance on properties over 4ha within the Tukituki region at this stage of the 3 yearly submission cycle – first resubmission was due 31 May 2021.
10	The Erosion Control Scheme (ECS) Provides access to a grant for Hawke's Bay landholders to implement soil conservation measures on highly erodible land, keeping soil on the hills and out of waterways. It provides significant financial support for erosion control work such as non-commercial tree planting, protection fencing, land retirement and assisted reversion. Hill Country Erosion Fund (HCEF) Provides Central Government funding to support ECS activities and events that are targeted at educating and supporting staff and landowners with the reduction of hill country erosion. Soil Conservation Nursery The primary purpose of the nursery is to grow poplar and willow poles for erosion control; managed primarily for the ECS and Works Group river control plantings.
11	Ecosystem Prioritisation: Terrestrial This programme focuses on protecting and enhancing 700 Ecosystem Prioritisation sites across the region. To achieve this, we have partnered with internal and external stakeholders alongside land occupiers. The main actions are deer fencing, pest plant and animal control and some enhancement planting. Ecosystem Prioritisation: Coastal and Marine The Coastal and Marine team has undertaken scientific investigations to identify biodiversity prioritisation sites off the coast of Mahia and Clive, using Zonation software to inform spatial management. The outcomes and recommendations have been concluded and can now move forward to implementation phase.
12	Partial Pest Plan Review Investigating changing the current Possum Control Area Programme from an occupier responsibility model to a large-scale contract model. A contracting model will secure the continued success long term of the outcomes delivered by low possum numbers and increase the biodiversity benefits from consistently low possum numbers.
13	Flood Control and Drainage Scheme – IRG Project 1: Heretaunga Flood Control & Drainage Scheme Aims to review and upgrade flood protection assets across the Tūtaekurī, Ngaruroro, Lower Tukituki and Clive rivers, to increase flood protection across the scheme to a 1 in 500-year event. Project 2: Upper Tukituki Flood Control Scheme: Gravel Extraction Seeks opportunities to subsidise transportation of gravel from this scheme with a focus on competitive tendering and supporting the local economy. Project 3: Wairoa River, River Parade Erosion Provides steel sheet piled erosion protection works on left bank of the Wairoa river.
14	Enterprise Asset Management Aims to embed an Asset Management Information System which integrates into and expands on the Enterprise Resource System (ERP) that was introduced during the Finance Upgrade Systems & Efficiency (FUSE) project. The goal is to provide a solution that improves HBRC operational efficiency, allowing it to confidently identify assets (both spatially and uniquely within a register), manage and maintain its current infrastructure through whole-of-life, and assess risk to determine when changes or additions are required, while aligning with strategic goals through the prioritisation of capital investment.
15	Revenue & Financing Policy/ Rates Review (incl. Scheme Rating Reviews) First principles Review of Revenue and Financing policy and full review of rating system. The aim of the review is to improve transparency and fairness for who pays what, ensure legal compliance and simplify the policy thereby providing more flexibility in application.
16	Urban Catchment Plans (Te Karamū Catchment Plan/ Ahuriri Catchment Plan) Will track the development of the Te Karamū and Ahuriri catchment plans, following the appointment of the Catchment Coordinators.

Key Strategic Project Pipeline
Title	Group	Estimated Start Date
Tukituki Plan Change Policy Implementation (Land Use Consents)	Policy & Regulation (Consents)	Will be reviewed next month
Clive River Dredging 2030	Asset Management (Regional Assets)	TBC
On Demand Public Transport (Napier trial)	Policy & Regulation (Transport)	TBC

Enforcement Actions
28. There are 11 active prosecutions before the court, at various stages therefore not able to comment publicly on. There are 3 further investigations in progress likely to lead to prosecution.
Date	Type of Enforcement Action	Status
Oct 2021	Burning prohibited items	Before the court – First appearance
Sep 2021	Burning prohibited items	Before the court – First appearance
Jun 2021	Discharge to land/water	Before the court – First appearance
Apr 2021	Contravention enforcement order	Before the court - order granted
Feb 21	Discharge to land that may enter water	Before the court – Plea to be entered
Jan 21	Discharge to air - odour	Before the court – Plea to be entered
Nov 20	Discharge to land that may enter water	Before the court – awaiting sentencing
Jul 20	Discharge to land that may enter water	Before the court – awaiting sentencing
Jun 20	Discharge to land that may enter water	Before the court – Plea to be entered
Jun 20	Discharge to land that may enter water	Before the court – Not Guilty Plea
Mar 20	Discharge to land that may enter water	Before the court – awaiting sentencing

Environment Court Proceedings
Date	Type of Proceedings	Status
June 2021	Three Environment Court appeals lodged against Independent Panel decisions made in June 2021 on submissions to Outstanding Water Bodies Plan Change (PC7).	Mediation continues through April amongst parties.
2021	Appeals to Environment Court on the Draft Water Conservation Order application for Ngaruroro River.	Before the Environment Court. Hearing held in 2021. Awaiting Environment Court decision – no update since previous report.

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 organisational activities looking forward through May 2022 staff report.

Authored by:

Mell Anderson

Project Manager Hill Country Erosion Scheme

Michael Bassett-Foss

RTRP Project Manager

Allan Beer

Team Leader Biosecurity - Animal Pests

Sarah Bell

Team Leader Strategy & Performance

Harry Donnelly

Project Engineer

Ceri Edmonds

Manager Policy & Planning

Russell Engelke

Team Leader Open Spaces

Craig Goodier

Principal Engineer

Martina Groves

Manager Regional Assets

Sandy Haidekker

Senior Scientist

Nathan Heath

Area Manager Northern Hawke's Bay

Gavin Ide

Principal Advisor Strategic Planning

Tim Jones

Project Engineer

Dr Kathleen Kozyniak

Principal Scientist (Air)

Anna Madarasz-Smith

Team Leader Marine, Air & Land Science

Julie-Anne McPhee

Senior Project Manager

Malcolm Miller

Manager Consents

Mark Mitchell

Team Leader Principal Advisor Biosecurity Biodiversity

Thomas Petrie

Programme Manager Protection & Enhancement Projects

Brendan Powell

Manager Catchments Policy Implementation

Becky Shanahan

Senior Scientist Marine & Coasts

Mike Signal

Team Leader Pollution Response & Enforcement

Dr Jeff Smith

Manager Science

Jolene Townshend

Acting Manager Catchment Delivery

Richard Wakelin

Senior Catchment Advisor (Policy Implementation)

Approved by:

Katrina Brunton

Group Manager Policy & Regulation

Chris Dolley

Group Manager Asset Management

Iain Maxwell

Group Manager Integrated Catchment Management

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

27 April 2022

Subject: Appointment and Remuneration of Directors Policy for adoption

Reason for Report

1. This item presents the Appointment and Remuneration of Directors policy (the Policy) for Council adoption.

Officers’ Recommendation

2. Council officers recommend that Council adopts the Policy as presented given that it has been thoroughly considered in workshops, a Corporate and Strategic Committee meeting and Council meeting.

Executive Summary

3. On 30 March 2022, Council resolved that it “Adopts, in principle, the Appointment and Remuneration of Directors Policy as amended to incorporate the following preferences resolved by the Corporate and Strategic Committee, subject to the Policy being reworked in the intervening period and provided to the 27 April 2022 Regional Council meeting for adoption.”

4. The stated preferences for the revised policies were:

4.1. HBRIC Ltd should continue to be governed by a blend of commercial and councillor directors to support integrated objectives setting and strategic alignment between Council and HBRIC Ltd, while incorporating independent perspectives and commercial skills, with a minimum of two independent directors within an overall maximum of eight directors.

4.2. Councillor directors are to be paid for their director duties on the board of HBRIC Ltd only if they are not already remunerated for higher duties as Council committee chairs or Council Chair or Deputy, and in such event are to be paid the difference between a base councillor salary and that of a Council committee chair.

4.3. In the event a Councillor director is appointed Chair of HBRIC Ltd, remuneration should be equivalent to that which would be paid to an Independent Chair.

4.4. HBRIC Ltd’s commercial subsidiaries should be run by independent directors only, for commercial objectives, in order to maintain separation between active commercial investment activity and the role of councillors as community representatives overseeing this activity via HBRIC Ltd and Council, enabling councillors to hold the investment entities accountable for their performance without being conflicted.

4.5. In the event that Council, by resolution, suspends the Policy in respect of 4.4 above and enables councillors to be considered for appointment by HBRIC Ltd to a subsidiary company in response to special circumstances, the appointment is to be made by independent directors of HBRIC to ensure councillors being appointed to commercial entities attracting market-based fees are only appointed following an objective and apolitical assessment of the suitability of their skills for the role.

4.6. Commercial subsidiaries and CCOs must have skills-based boards, constituted of directors with the relevant industry experience and knowledge, governance and commercial skills.

4.7. All boards of entities for which HBRIC holds significant shareholdings are required to consider how they support diversity and inclusion, with open and transparent appointment processes.

4.8. HBRIC Ltd is delegated the authority to appoint directors to its subsidiaries in consultation with Council.

4.9. The Chair of HBRIC Ltd should be an Independent Director.

4.10. Board fees should be paid for all non-councillor Director positions, and that Council supports payment of market-based fees.

4.11. Existing councillor directors on HBRIC Ltd subsidiaries should stand down from their roles in a managed transition that minimises disruption to the commercial interests of their entities, and Council with board fees paid for all work to that point.

4.12. In consultation with Council, HBRIC Ltd may appoint executive directors to HBRIC Ltd subsidiaries with directors’ fees paid by the subsidiary or CCO to the parent company, unless otherwise agreed as part of a modified remuneration package for the executive that reflects adjusted responsibilities and accountabilities.

4.13. In consultation with Council, HBRIC Ltd will nominate two directors for the board of Napier Port for as long as a majority shareholding is held by Council via HBRIC Ltd.

5. On the basis of feedback provided by Cr Williams on issues that would improve the clarity and consistency of the draft policy revisions, staff have made a number of minor amendments to the document which are captured in the attached marked-up version.

Strategic Fit

6. Leveraging the Council’s balance sheet and taking a more active approach to Council’s investment activity is an important element of the Council’s overall financial strategy to fund more activity to achieve greater impact in the Council’s strategic outcome areas. This paper supports these objectives.

Significance and Engagement Policy Assessment

7. Council officers have assessed the significance of the decisions in this report as being low and therefore not requiring community engagement.

Climate Change Considerations

8. There are no specific climate change considerations related to the policy proposed for amendment in this paper. However, the Council has specific climate change related objectives within its investment strategy and the maintenance of councillor director influence on the board of HBRIC assists in ensuring the Council’s strategic objectives in this regard are achieved.

Considerations of Tangata Whenua

9. There are no direct considerations for tangata whenua arising from this paper. The recommended inclusions in the Policy, with respect to diversity and transparency, are intended to create opportunities for Te Ao Māori perspectives to be brought to the governance of HBRIC and its subsidiaries.

Financial and Resource Implications

10. There are no direct financial implications arising from this report. Director remuneration is provided via revenue generated from the investment activity that is governed by the directors. A high standard of governance arrangements assists in managing risks to the Council’s investment portfolio and protecting asset values and revenues.

Consultation

11. Consultation is not required for these decisions as they relate to administrative arrangements to facilitate the more substantive matter of Council’s investment strategy that was consulted upon as part of the 2021-2031 Long Term Plan.

Decision Making Process

12. 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:

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

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

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

12.4. The persons affected by this decision are councillors and HBRIC directors.

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

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Appointment and Remuneration of Directors Policy for adoption 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.

3. Adopts the Appointment and Remuneration of Directors Policy as amended.

Authored by:

Tom Skerman

Regional Water Security Programme Director

Approved by:

James Palmer

Chief Executive

Attachment/s

1 ⇩

Appointment and Remuneration of Directors Policy with Martin Williams' amendments

HAWKE’S BAY REGIONAL COUNCIL

27 April 2022

Subject: Section 16 Consultation to take charge of adapting to coastal hazards

Reason for Report

1. This item updates the Council on the planned approach and timeframes for the consultation with the community on the proposal for Hawke’s Bay Regional Council to take charge of adapting to coastal hazards in the Clifton to Tangoio coastal area.

2. This is a significant new activity for Regional Council and as such requires public consultation under section 16 of the Local Government Act.

Background

3. This consultation follows on from the Council’s endorsement in July 2021 of the independent review, led by Raynor Asher QC, that found that HBRC is best placed to ‘take charge’ of all aspects of adapting to coastal hazards in the Clifton to Tangoio coastal area.

4. The reasons put forward for HBRC to take charge include:

4.1. A single entity in charge makes it clear who is responsible and accountable for decisions made and supports more streamlined decision making.

4.2. HBRC is the only council of the three Partner Councils (HBRC, NCC and HDC) with jurisdiction over the whole stretch of coast in the Clifton to Tangoio area, and it is better to have an integrated and coordinated management approach rather than an approach focused on council boundaries.

4.3. HBRC already administers large flood control schemes in the Hawke’s Bay region and has the specialist engineering expertise and capability.

4.4. HBRC is the only council of the three with the power to direct for managed retreat – moving communities and infrastructure inland before they are severely impacted by coastal hazards.

4.5. Hastings District Council and Napier City Council will continue to have opportunities to contribute through an advisory committee.

5. At the Council meeting on 30 March 2022, the Regional Council endorsed the Memorandum of Transition (MOT) which is an agreement in principle between the partner councils to facilitate the transition of functions and transfer of named assets for coastal hazard adaptation in the Clifton to Tangoio coastal area to Hawke’s Bay Regional Council.

6. The MOT has now been endorsed by all three partner councils.

7. Central Hawke’s Bay District and Wairoa District councils have also been consulted with, as required by the Triennial Agreement, and have confirmed that they have no objection to the proposal as outlined in the MOT.

8. The next steps in the process to complete the s16 consultation are for HBRC to:

8.1. advise the Minister of Local Government of the proposal and the reasons for it, and

8.2. consult the public using the special consultative procedure to amend its long term plan.

Scope of the consultation

9. The consultation document must include an audit opinion and explain what will change in HBRC’s long term plan if the proposal is adopted.

10. The amendments relate to the change in role for HBRC and the inclusion of the transferred coastal hazard assets, debt and funding to maintain these assets. Noting that the actual transfer of assets is proposed to occur in 2024, and is subject to a detailed Asset Transfer Agreement being confirmed.

11. The scope of the consultation will not include the content of the Clifton to Tangoio Strategy, the costs to implement the Strategy or how rates will be allocated to fund the implementation, all of which will be consulted on separately.

12. To inform the audit opinion, Audit NZ has asked for an independent valuation of the assets to be transferred at fair value at the date of transfer (1 July 2024). Waugh Consultants has been engaged to do this work.

Communication and Engagement

13. Staff are currently working on the Consultation Document (CD) and supporting information. The CD, will be primarily an on-line document of approximately 4-8 pages including a submission form.

14. We propose a digital-focused approach to suit the Covid-19 situation, the scale of the consultation, and to enable engagement with key audiences and the wider Napier and Hastings public. We will combine the digital elements with a tactical on-the-ground engagement that will be relevant, accessible, and visible to our target audiences. All the information will direct submitters to the website for more information and to submit:

14.1. Social media campaign

14.2. Digital and radio marketing campaign

14.3. One Facebook Live event

14.4. Two community meetings in-person

14.5. Leaflet drop to coastal communities (approx. 3500 households)

14.6. Talking points from Joint Committee members

14.7. Digitally share the consultation document, as well as hard copies at council locations.

Key dates

15. The following dates are proposed to allow enough time for the audit process and aim for a decision to be made before nominations close for the elections.

15.1. 25 May - Council adopt CD for consultation

15.2. 27 May - 26 June - Consultation

15.3. 6 or 7 July - Submissions Hearing

15.4. 27 July - Council decision

16. Hearings will either be added onto the end of the Environment and Integrated Catchments Committee meeting on 6 July if there are a small number of submitters who want to be heard, or a special Regional Council meeting specifically to hear submitters on Thursday 7 July. The 7 July meeting will be added to the Council Calendar if required.

Next Steps

17. A draft consultation document will be workshopped with Councillors on 4 May for any feedback, prior to presenting the final audited consultation document for adoption at the 25 May Council meeting.

Decision Making Process

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

Recommendation

That Hawke’s Bay Regional Council receives and notes the Section 16 Consultation to take charge of adapting to coastal hazards staff report.

Authored by:

Rebecca Ashcroft

Communications Advisor

Simon Bendall

Coastal Hazards Strategy Project Manager

Desiree Cull

Strategy & Governance Manager

Approved by:

Chris Dolley

Group Manager Asset Management

Attachment/s

There are no attachments for this report.

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