Agenda of Regional Council Meeting - Wednesday, 28 September 2022

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Significant organisational activities looking forward through October 2022

Purpose of agenda item

1. The following commentary is for Councillors’ information to highlight significant areas of Council activity. Resources are directed toward various initiatives which reflect the Council’s evolving agenda, and it is important that Council is consistently informed of progress in areas that have created 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 Biosecurity team is gearing up for the annual rook control programme. An on the ground survey was undertaken last week across the region to identify where the active rookeries are for both rural and urban in readiness for the aerial control commencing late September. 2. A LGOIMA request was completed in response to queries from a lawyer in relation to the ban of gravel extraction due to the presence of Chilean needle grass. The request asked for a broad range of information. 3. HBRC Marine Biosecurity staff have met with representatives from Ministry of Primary Industries and NIWA to plan for the Marine High Risk Site Surveillance survey which was carried out during the week of 12 September. This is a detailed biannual survey to look for marine pests in the Napier Port and Ahuriri Inner Harbour. This will be the third survey carried out here.	ICM – Catchment Services
Whakakī Freshwater Improvement Fund Project	4. Following consultation with the Whakakī Lake Trust and civil contractors, the completion of the weir will now be postponed until late January due to improved water levels and site conditions. 5. An external project manager will be contracted to deliver the rescoped fencing and planting component over the next two years.	ICM – Catchment Delivery

Central Catchments
Project / Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Flood Control Schemes - Resilience Funded projects	6. Taradale stopbank strengthening physical works are 99% complete. Berm enhancement work and the completion of the river access at Guppy Road will now commence in spring. 7. Moteo stopbank detailed design has been completed. Contract documentation will be completed by the end of September 2022. 8. Omaranui stopbank design is underway, with geotechnical and borrow investigations now completed 9. Both Moteo and Omaranui stopbank upgrade projects will need to import suitable fill, which will require resource consent. Moteo will not go to tender until this process and timing is well understood and risks managed appropriately. 10. The contract for Ngatarawa LOS upgrade has been awarded - construction will commence in early October 2022.	Asset Management Engineering Regional Projects
Global Gravel Extraction Consent	11. On 30 June 2022 consents were granted for gravel extraction at the Ngaruroro, Tukituki Catchment and Tūtaekurī rivers. The strategy for transition and engagement with industry is being developed by the Asset Management and Consenting teams. A new consent will be active from 15 December 2022. An industry briefing on 31 August was well attended. The authorisation agreement between Council and contractors will be finalised September/October 2022.	Asset Management Consents, Schemes
Waitangi Regional Park	12. Delivery of Stage 3 (safe vehicle access to the river and two ephemeral wetlands on the flat berm area) by the Regional Projects Team and Works Group is expected in October 2022, weather dependent. 13. HBRC received $400,000 Tourism Infrastructure Fund (MBIE) funding for infrastructure for cultural events at the marquee site, and to service the proposed toilets.	Asset Management Open Spaces
Hawea Historical Park / Karamū Stream Diversion	14. Stage 3 project delivery includes construction work for widening of the confluence and enhancement work of the old Karamū Stream (flood gate) area, as well as pathway formation within the park and native planting around the carpark. The stream work will begin in September and pathway development is due to begin in spring/summer 2022 dependent on ground conditions.	Asset Management Open Spaces, Regional Assets
Consenting of all pump stations within schemes	15. This project has been broken down into specific phases and is well into the information-gathering phase. Discussions with tangata whenua about pump station locations and movement of water between them are about to commence. 16. Two key pieces of work are: the Sampling and Monitoring Plan being carried out by a consultant which has commenced; and the other is the Fish Passage Feasibility Assessment which is well underway with the site visits being conducted.	Asset Management Environmental Engineer
Flood Recovery	17. Planning and design work for the CHB swing bridge is underway, with an option for HBRC to pass the project over to CHBDC for a dual purpose bridge, aligning with their wastewater project. Approval for this is being sought at the EICC meeting on 21 September.	Asset Management Regional Assets
Napier Urban Waterway Review	18. Morrison Low is completing the report for stage two of the review. A full business case including alignment between NCC and HBRC direction will commence in the new triennium	Asset Management

Southern Catchments
Upper Tukituki Flood Control Scheme	19. Six tenderers have been shortlisted for negotiation for the second tranche of extraction. Once complete, approximately 488,000m3 will have been contracted for extraction which will commence in late September/early October 2022.	Asset Management Regional Projects, Schemes

Southern Catchments

Project /Activity Description

Significant Upcoming Milestone(s)

Group /Team or Section

Upper Tukituki Flood Control Scheme

19. Six tenderers have been shortlisted for negotiation for the second tranche of extraction. Once complete, approximately 488,000m3 will have been contracted for extraction which will commence in late September/early October 2022.

Asset Management

Regional Projects, Schemes

Whole of Region
Project /Activity Description	Significant Upcoming Milestone(s)	Group /Team or Section
Erosion Control Scheme	20. Catchment advisors are catching up on pole inspections as it was too wet to get on farm last month. 21. Securing contracts with nurseries outside the region to supply poles for our customers next winter. 22. Pest repellent application and release spraying planted areas is planned for Te Ikatiere. 23. Mid-October – an announcement from MPI is expected on their decision to allocate funding for the next round of Hill Country Erosion Funding for the period 2023 to 2027. 24. Staff will be attending the national NZARM conference in Wellington.	ICM – Catchment Delivery
Rivers and Water Quality	WIS Telemetry installation requirement 25. Deadline of 3September has passed for >20l/s takes.A high volume of these are still coming through and will continue for some time. Exacerbated by a bottleneck with suppliers. 26. No response from 124 irrigators - these are being followed up. 27. Six industry sites have yet to provide telemetry. 28. Hastings District Council and Napier City Council are yet to start sending data daily. 29. 680 consents have telemetry installed or use portable pumps with GPS and telemetry TANK decision 30. Next step is to wait to see if there are any appeals on the decision. This will affect whether a high number of consents need to be re-issued, which will need to be aligned with take points and water meters. Data Management 31. Estuary monitoring topic has been finalised and is now available to the public through the LAWA website. 32. New Groundwater Bore 17234 situated on Pirau Rd, (off Swamp Rd - Heretaunga Plains) drilled/completed with Water Level continuous Telemetry installed.	ICM – Environmental Information

PMO: Strategic Project Reporting

HBRC’s key strategic projects 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
1	Right Tree Right Place Pilot (RTRP)				The project team leads are fully focused on the farm planning process. Initial farm visits have been completed across 10 of the priority 15 properties. Labour to plant seedlings (and seedling supply) has been identified as the biggest barrier to planting seedlings in the 2023 planting season.	Updated since 31 Aug
2	Regional Water Security Programme: (Heretaunga Water Storage, Managed Aquifer Recharge, and Regional Water Assessment) Will now be reported as a Programme, not individual projects.				Heretaunga Water Storage - data analysis and review of upper catchment investigations is nearing completion. Potential work programme for Paritua/ Karewarewa flow maintenance and enhancement being finalised internally ahead of further community engagement. CHB MAR - with the Cultural Impact Assessment received and finalised, the first draft of the Package 2 consent application has been completed and feedback provided. Accordingly, we expect the consent to be lodged within a fortnight. Regional Water Assessment - due for completion end of September.	Updated since 31 Aug
3	Water Efficiency Programme Review (Future Water Use)				The PMO will no longer track this review. Reporting will resume once a business case is approved and this becomes a strategic project.	Updated since 31 Aug
4	Ahuriri Regional Park				Reporting frequency for this project has changed to quarterly. The next update will be given in October.	No update since 27 Jul
5	Clifton to Tangoio Coastal Hazards Strategy Implementation				Over the last month the S82a consultation on whether HBRC should undertake a leadership role in the execution of the strategy closed. Hearings were undertaken and process closed out with HBRC. There was strong support for HBRC to take leadership in all aspects of the strategy. Works Packages with regards to Triggers and Signals, Mātauranga Māori, and pre-consenting environmental work continue. Scheduling of activities into consultation on the strategy in August 2023, and preparation of LTP is underway.	Updated since 31 Aug
6	On-demand Public Transport				This project is now closed, as transitioned to BAU.	Updated since 31 Aug
7	Kotahi Plan				The project is nearing the conclusion of the 'listening' phase with five community drop-ins held during the month of August and the final drop-in scheduled for 22 Sept. A first-round engagement report template is being scoped with data currently being collated and analysed. The schedule for the community engagement first round remains on track although the project team have been stretched over the past three weeks with competing TANK duties.	Updated since 31 Aug
8	TANK Plan Change				Reporting frequency for this project has changed to quarterly. The next update will be given in October.	No update since 27 Jul
9	Farm Environmental Management Plans (FEMPs)				The FEMPs programme is undertaking a full review and update. This is now in an active project management phase that will inform improvements for the 2024 cycle. Survey of landowners and providers was carried out in August with direct interviews from mid-September 2022 onwards. A process review for Low Intensity properties finalised, with landowners contacted from early September. With the Audit Advisor now on board, we are able to roll out the auditing programme and have dedicated focus on providing feedback to landowners and providers. This will not impact the schedule of the 2024 resubmissions cycle.	Updated since 31 Aug
10	Erosion Control Scheme (ECS) Programme (incl. Soil Conservation Nursery & HCEF)				Reporting for ECS will no longer be tracked by the PMO.	Updated since 31 Aug
11	Partial Pest Plan Review				Reporting for Partial Pest Plan Review will no longer be tracked by the PMO. This review is nearing completion.	Updated since 31 Aug
12	IRG Flood Control & Drainage Programme (Heretaunga Flood Control & Drainage, Upper Tukituki (UTT) Flood Control Scheme and Wairoa River, River Parade Erosion) Will now be reported as a Programme, not individual projects.				Taradale stop bank substantially complete. Ngatarawa contract awarded, construction to start in October. Moteo detailed design completed, and contract being finalised, ready to tender. Ōmarunui detailed design is underway. Moteo and Ōmarunui require imported material to complete these projects and a consent is required for importing material. Moteo tender process paused until certainty around consenting process gained, this will result in a delay in this the construction of project. UTT Gravel Extraction tender process well advanced to allocate 500,000m³ for extraction. 5 contracts will be awarded for extraction on all available reaches to commence by October. A third tranche of extraction will be considered this summer if progress and contractor compliance is acceptable. All projects with exception to Moteo and East Clive are progressing to schedule. East Clive has significant consenting requirements - the current priority is to progress a consent application to enable construction.	Updated since 31 Aug
13	Revenue & Financing Policy/ Rates Review (incl. Scheme Rating Reviews)				All stage one workshops have now been completed and a report to Council to discuss and agree final decisions is being prepared. Rating model for stage two is being prepared.	Updated since 31 Aug
14	Enterprise Asset Management				The recruitment of a EAM project manager is underway after an earlier resignation and the Asset Management Group restructure is still impacting staff. The temporary absence of a project manager continues to impact project progress. The recent contracting-in of an external Technology One service provider, will improve HBRC capability and alleviate some of the ongoing resourcing issues. Workshops to determine current state processes have commenced and licensing for the EAM capability is underway.	Updated since 31 Aug
15	Urban Catchment Plans (Te Karamū Catchment Plan/ Ahuriri Catchment Plan)			N/A	Reporting frequency for this project has changed to quarterly. The next update will be given in October.	No update since 27 Jul
16	Climate Action Plan				The draft proposal for developing the Regional Climate Action Plan was discussed in a Council workshop at the end of August and was presented to Māori Committee on 6 September 2022. We have confirmed collaboration from NCC, HDC and the Environment Centre and are preparing a paper for Council at the end of the month with more information about working group membership. Planning is underway for a public event in December. The Regional Carbon Footprint has been delivered for Hastings in draft form and we are waiting for the other community and regional reports. Initial engagement with Ngāti Kahungunu suggested that a wānanga will be necessary.	Updated since 31 Aug
17	Synergy Synergy is the enhancement phase of the TechOne modules introduced through the earlier FUSE project.				There has been ongoing work on mapping of financial processes as well as requirements for documentation for the payroll stream. A plan has been developed between the ICT and Finance teams to establish the priority of these areas within TechOne. Atturra, external TechOne consultancy, has been engaged and is starting work on the Payroll and Budgeting streams as these are the first two streams identified in the plan.	Added

Project Summaries
1	Right Tree Right Place A pilot on up to five farms with loans offered to landowners to plant trees on marginal land that can earn a return and enhance regenerative farming practices. Project is run in collaboration with The Nature Conservancy and the Ministry for Primary Industries to accelerate erosion control work and extend the programme to more farms.
2	Regional Water Security Programme Investigating water supply options aiming to ensure HB has long-term, climate-resilient, and secure supplies of freshwater for all. This supports the Kotahi Plan and includes: 1. exploring above ground, medium-scale water storage options in the Ngaruroro catchment for and on behalf of the community 2. setting up a Managed Aquifer Recharge (MAR) trial in Central Hawke’s Bay to determine whether MAR is a viable water storage option that can contribute to water security in the area We will also work with water users to drive more efficient and effective use to complement water storage following the completion of a comprehensive 40-year Regional Water Assessment.
3	Ahuriri Regional Park Working alongside Napier City Council and Mana Ahuriri to redevelop the Lagoon Farm site into a Regional Park to address water quality issues in the Ahuriri Estuary, as well as enhancing biodiversity, and bringing cultural and recreational benefits to the community.
4	Clifton to Tangoio Coastal Hazards Strategy Implementation Working in collaboration with coastal communities and local entities for over eight years to develop the Clifton to Tangoio Coastal Hazards Strategy 2120. We now need to confirm which Council or Councils will take charge and lead this work, and are undertaking consultation, proposing that HBRC should take charge of coastal hazard adaptation between Clifton and Tangoio, as recommended by an independent Funding Review. This would give the Regional Council the mandate to finalise the Strategy. This includes consulting the community on the full implications of implementation, such as the timing and detailed costs of physical works, and who pays for what through the Long Term Plan 2024-2034 process.
5	Kotahi Plan Developing a combined resource management plan for the HB region. It will refresh how we manage the use and protection our natural and physical resources looking at all aspects of the environment. This includes land and freshwater, air, the coastal and marine area, climate change, biodiversity, urban form and development, natural hazards and risks, energy, transport, and infrastructure. Kotahi will combine and update the existing Regional Policy Statement, the Regional Resource Management Plan, and the Regional Coastal Environment Plan into one, while also giving effect to the new policies, planning and technical standards from central Government.
6	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 Subcatchments Community Engagement An external communications project, intended to inform rural landowners about the Proposed Plan Change 9 (PPC9) framework and to promote catchment group formation. It is a precursor to the overall PPC9 implementation, the latter contingent on a decision awaited from Hearings Commissioners and any subsequent appeals.
7	Farm Environmental Management Plans (FEMPs) These aim to address environmental outcomes and actions to improve environmental performance on properties over four hectares initially within the Tukituki region in three-yearly submission cycles.
8	IRG Flood Control and Drainage Programme Project 1: Heretaunga Flood Control & Drainage Scheme We are reviewing and upgrading flood protection assets across the Tūtaekurī, Ngaruroro, Lower Tukituki and Clive rivers, to increase flood protection across the scheme from a 1 in 100 to a 1 in 500-year event. Project 2: Upper Tukituki Flood Control Scheme: Gravel Extraction We are removing gravel from the Upper Tukituki River to improve flood protection in CHB. Decreased demand for gravel has seen a build-up of gravel (aggradation). Extracting gravel from the riverbeds helps increase river capacity and reduces the risk of water inundation of neighbouring properties during a flood. Project 3: Wairoa River, River Parade Erosion We installed sheet piles to protect Wairoa District Council roading and Wairoa River Bridge from further erosion. In winter 2022 we will be planting trees for further protection and to enhance the area and increase biodiversity.
9	Revenue & Financing Policy/ Rates Review (incl. Scheme Rating Reviews) First principles review of our Revenue and Financing Policy, and full review of our rating system. The aim is to improve transparency for who pays what, ensure legal compliance, simplify the Policy and provide more flexibility in applying the Policy. Consultation is planned to take place towards the end of 2023 prior to the next Long Term Plan when the amounts rated for many Council services will be likely to change.
10	Enterprise Asset Management Aims to embed an Asset Management Information System that 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 improve efficiency, allowing us to confidently identify assets (both spatially and uniquely within a register), manage and maintain our current infrastructure through whole-of-life, and assess risk to determine when changes or additions are required.
11	Urban Catchment Plans (Te Karamu Catchment Plan/ Ahuriri Catchment Plan) Plans will be developed with stakeholders to provide coordination of activities within the Ahuriri and Te Karamū catchments, and identify options to help improve water quality, particularly in relation to land drainage and stormwater management, and to improve biodiversity.
12	Climate Action Plan Developing an inaugural Regional Climate Action Plan by July 2023 with broad community involvement, support and engagement, which will be integrated with the next long term plans of the region’s Councils. The Action Plan will be informed by a greenhouse gas emissions inventory to establish the carbon footprint at city, district, and regional levels - a first for HB.
13	Synergy The enhancement of already implemented TechnologyOne modules to ensure a stable foundation for the future stages of the TechnologyOne ERP deployment at HBRC.

Key Strategic Projects Pipeline
Title:	Group	Estimated Start Date
Regional Water Efficiency Programme (‘Future Water Use’)	Asset Management (Water Security)	TBC
Biosecurity Information System	Integrated Catchment Management	TBC
Clive River Dredging 2030	Asset Management (Regional Assets)	TBC
On Demand Public Transport (Napier trial)	Policy & Regulation (Transport)	TBC

Key Strategic Projects Pipeline
Title:	Group	Estimated Start Date
Tukituki Plan Change Policy Implementation (Land Use Consents)	Policy & Regulation (Consents)	Decision pending, whether project tracking is to commence.
Clive River Dredging 2030	Asset Management (Regional Assets)	TBC
On Demand Public Transport (Napier trial)	Policy & Regulation (Transport)	TBC

Enforcement Actions
33. There are 8 active prosecutions before the court, at various stages, therefore not able to comment publicly on. There are three further investigations in progress likely to lead to prosecution.
Date	Type of Enforcement Action	Status
Mar 2020	Discharge to land that may enter water	Before the court – Defended Hearing Oct 2021
Jul 2020	Discharge to land that may enter water	Before the court – Defended Hearing Feb 2023
Jan 2021	Discharge to air - odour	Before the court – Guilty Plea entered – Next court date 11 October 2022 for sentencing
Feb 2021	Discharge to land that may enter water	Before the court – Pre-trial conference set down for 4 October 2022
Sep 2021	Burning prohibited items	Before the court – Defended Hearing - Next court date 4 October 2022 for nominal trial date
Sep 2021	Burning prohibited items	Before the court – Plea to be entered – Next call over 13 October 2022
Dec 2021	Discharge to land that may enter water	Before the court – Guilty Plea entered – Next court date 4 October 2022
Jul 2022	Discharge to land that may enter water x2 Breach of enforcement order	Before the court – Plea to be entered – Next call over 18 October 2022

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 continued through July. Latest update reported to Environment Court on 16 September 2022. Update indicated matters that parties are in agreement on and also requested Court set a timetable of next steps, including setting dates for formal court hearing preferably in first half of 2023.
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

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 October 2022 staff report.

Authored by:

Mell Anderson

Project Manager Hill Country Erosion Scheme

Allan Beer

Team Leader Biosecurity - Animal Pests

Desiree Cull

Strategy & Governance Manager

Peter Davis

Manager Environmental Information

Harry Donnelly

Project Engineer

Ceri Edmonds

Manager Policy & Planning

Craig Goodier

Principal Engineer

Sandy Haidekker

Team Leader Fresh Water & Ecology

Simon Harper

Team Leader Hydrology & Groundwater Science

Nathan Heath

Area Manager Northern Hawke's Bay

Tim Jones

Project Engineer

Jon Kingsford

Project Manager

Dr Kathleen Kozyniak

Team Leader Marine Air & Land Science

Anna Madarasz-Smith

Manager 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 and Enforcement

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

Wednesday 28 September 2022

Subject: Revenue and Financing policy review – Step One Analysis

Reason for Report

1. In its 2021-2031 Long Term Plan, the Council signalled its intention to review its Revenue and Financing Policy.

2. This report is presented for Council to consider, discuss and confirm step one of the process that is required when undertaking a review of Council’s Revenue and Financing Policy.

3. The scope of step one is outlined in Prescribed process – Section 21.

Officers’ Recommendation(s)

4. Staff recommend that Council consider this process paper and systematically review the assessment made for each of the 34 separately identified activities in the attached Step One Funding Impact Analysis and adopt it as step one of the process to review the Council’s Revenue and Financial Policy.

Executive Summary

5. Under the Local Government Act 2002 (LGA), Council must have a Revenue and Financing Policy (R&F Policy). Sector advice states it is good practice to review R&F policies approximately every ten years on a first principles basis. The Council’s policy is overdue for review and it has signalled to ratepayers that a review will be undertaken before the next long term plan.

6. The objectives of the review are to:

6.1. improve transparency for who pays what,

6.2. ensure legal compliance and good practice, and

6.3. simplify the policy thereby providing more flexibility in application, for example stating a rating “range” and/or bundling sub-activities together.

7. The review process must follow the requirement of the two steps set out in the Local Government Act 2002 (LGA). The process takes approximately 12-18 months including formal consultation.

8. Council has undertaken an initial assessment of the requirements of step one by way of a series of workshops. The purpose of the report is to provide full details of this initial assessment so that Council can review the initial work, discuss\debate each activity and agree on the final step one analysis before adopting the step one analysis.

9. The initial analysis is set out in the attachment titled “HBRC’s Revenue and Financing Policy - Step One Funding Needs Analysis”

10. Further detail has been provided in a second attachment “R&F Policy – Activity Breakdown” to describe the activities being assessed and to provide context.

Background

11. Council is required to have a Revenue and Financing Policy. This policy sets out how each activity is to be funded including details of the types of rates to be used. It is Council’s view following public consultation.

12. The policy is important because it underpins the various funding mechanisms by which Council funds its activities. By defining the various rates it enables council to set the rates and collect its rates revenues each year.

13. Sector advice states it is good practice to review revenue and financing policies approximately every ten years on a first principles basis. This is because over time, ad hoc changes can result in the overall policy not delivering the optimum outcome for Council and the community.

14. The Council’s current policy has evolved over time with a number of small changes made over the last four long term plans but without a review of all components (and the relativity between activities).

15. The council signalled in its most recent long term plan that it would be reviewing its R&F Policy. A specific undertaking was given to review the Upper Tukituki targeted rates.

Scope of the review

16. The review is not an assessment of the adequacy of current spend or the existing levels of service nor is it a review of Council’s Financial Strategy, which describes Council’s broad funding principles and sets debt and rates limits.

17. The review is confined to how existing activities and levels of services are funded. Potential future activities, such as coastal hazard implementation, is also out of scope of this review.

18. The objectives of the review are to:

18.1. improve transparency for who pays what,

18.2. ensure legal compliance and good practice, and

18.3. simplify the policy thereby providing more flexibility in application, for example stating a rating “range” and/or bundling sub-activities together.

Timing of the review

19. A first principles review generally takes 12-18 months. The review was timed to fall between long term plans (LTP) to enable ratepayers to distinguish between impacts from the policy change versus impacts from level of service or cost changes. In addition, rating reviews can be controversial because changing the way rates are assessed always means there are winners and losers which can upstage the LTP consultation.

20. It was agreed by Council to complete step one before the local government elections in October 2022. The new Council will then be tasked with reviewing the step one analysis and either reconfirming or amending it prior to undertaking step two analysis. It is expected that the new Council would complete step two and consult on the policy, together with any new or amended rates in October 2023.

Prescribed process

21. The process to review the policy is prescribed in the LGA and must be followed to mitigate the risk of judicial review. Section 101(3) LGA requires the Council to develop the policy in two steps. In the first step, it must consider in relation to each activity to be funded the following:

21.1. Community outcomes to which the activity primarily contributes

21.2. Distribution of benefits – who gets the benefit the whole/part of community or individuals?

21.3. The period the benefits are expected to occur

21.4. Extent that actions or inactions contribute to the need to undertake the activity (exacerbators)

21.5. Costs and benefits of funding the activity separately from other activities

22. The process of working through the step one assessment is an iterative one and the rationale for choices made must be documented.

Process to date

23. To assist Councillors to understand the process a number of workshops were held to help draft an outline for consideration. This is attached entitled “HBRC’s Revenue and Financing Policy - Step One Funding Needs Analysis”.

24. Within the funding needs analysis, there is text highlighted yellow, indicating where queries were raised at a workshop or where additional information since the workshop has been included. These areas in particular need further discussion to agree the best approach. These are:

24.1. Sustainable Homes – an alternative option for council to consider has been added to consider General Rate funding rather than a Targeted Rate by airshed.

24.2. Resource Consents – should the wording around the recoverable/non-recoverable split be the same as Compliance?

24.3. Maritime Safety (Port Operations) – should the community outcome be Prosperous Community rather than Resilient Community now we have split out port operations?

24.4. Farm Environmental Management Plans (FEMPs) – should a portion of the costs be funded by FEMP holders who have a distinct benefit?

Process going forward

25. The following graphic shows an indicative timeline going forward.

26. Step two of the R&F review requires the Council to consider the results of step one and modify (if required) the allocation of tools that were identified in step one based on the overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental, and cultural well-being of the community.

27. This work will be progressed throughout 2023, culminating in consultation in October 2023.

Strategic Fit

28. The Revenue and Financing Policy sets out how Council proposes to fund its activities. It underpins the values of accountability and transparency in Council’s Strategic Plan 2020-25. Namely:

28.1. Accountability – we hold ourselves accountable to deliver results, be responsive to community expectations, and the best use of ratepayers’ funds and assets.

28.2. Transparency – We report on what we do and the value this delivers to our community.

29. It is important that this policy is reviewed on a regular basis to ensure we practice these values.

Significance and Engagement Policy Assessment

30. Staff have assessed this decision paper against the Council’s Significance and Engagement Policy and have concluded that this is not a significant decision at this stage and can be made without public consultation. This review follows a process set out in legislation and the substantive decision will be to adopt the Revenue and Financing Policy for consultation in October 2023.

Considerations of Tāngata whenua

31. No specific consideration is required as part of the step one funding analysis.

Financial and Resource Implications

32. The LTP provides a budgetary provision to support the Revenue and Financing Policy review. This is within the existing Finance budget.

Consultation

33. While there is no consultation required to support the decision in this report, as noted above it is expected that consultation will take place in October 2023.

Legal Implications

34. Section 102 (2) (a) LGA requires the Council to have a Revenue and Financing Policy.

35. Section 101 (3) LGA sets out the process on how a local authority should decide who should pay including specifying the two-step process.

36. Section 103 details disclosure requirements of a Revenue and Financing Policy.

Decision Making Process

37. 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:

37.1. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy and relates to step one of a statutory process to review Council’s Revenue and Financing Policy. No public consultation is required at this stage of the process.

37.2. The persons directly affected by this decision are all of the Hawke’s Bay community.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives the report Revenue and Financing Policy Review – Step One Analysis.

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 step one funding analysis, as set out in the attachment titled “HBRC Revenue and Financing Policy - Step One Funding Needs Analysis”, incorporating any amendments made at the meeting.

4. Recommends to the 2022-2025 Council that it considers this step one analysis prior to undertaking the step two analysis in 2023.

Authored by:

Chris Comber

Chief Financial Officer

Desiree Cull

Strategy & Governance Manager

Ross Franklin

Finance Consultant

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

1 ⇩	HBRC's Revenue and Financing Policy- Step One Funding Needs Analysis
2 ⇩	R F Policy - Activity Breakdown

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Report and recommendations from the Māori Committee

Reason for Report

1. This item provides a brief summary of discussions at the 7 September 2022 Māori Committee meeting along with recommendations for Council’s consideration and provides the opportunity for the Māori Committee Co-chairs to add additional context as they wish.

Agenda Items

2. The regular Take Ripoata ā Takiwā – Taiwhenua Representatives' updates covered:

2.1. Kahungunu Executive report highlighted that the AFFCO non-consented discharge court case resulted in a $138,000 fine on two accounts. AFFCO has applied for a variation of their storm water consent. Wairoa Taiwhenua has asked AFFCO Wairoa to involve mana whenua in these discussions.

2.2. Sheet piling Wairoa Scour protection works: Various plantings have been undertaken on the river bank as the first stage of recommendations from the Cultural Impact Assessment (CIA).

2.3. Attended the first drop-in session on Kotahi alongside other members of the community. Good feedback received

2.4. Taiao Komiti: Establishing the Terms of Reference around Taiao Komiti which is includes representation from the seven Kahui. All matters relating the taiao in the Wairoa District will be referred to this tepu and the Komiti will make recommendations to the Board of Directors.

2.5. The Te Taiwhenua o Tamatea report covered current activities undertaken in their rohe and spoke on the Tamatea (social services) hub and a brief update on Te Mana Taiao o Tamatea was provided. It was noted that water is presenting major challenges for whanau (Trance 2, Three Waters and Ruataniwha dam project).

2.6. The Te Taiwhenua o Heretaunga acknowledges work Tamatea Taiwhenua is doing in the rohe and the collaboration and working relationship that exists.

2.6.1. With relating to the Gravel extraction consent hearings - it was noted that all consent conditions were reviewed, and all omissions have since been resolved.

2.6.2. Two tāngata whenua groups for the Tukituki and Ngaruroro have been established.

2.7. The Te Whanganui-ā-Orotu report highlighted that mana whenua hapū are finalising the cultural assessment on the future housing development around the Puketitiri Hills. Noted that Taiwhenua strongly opposed the decision that Kahui Ohanga be appointed as the sole iwi representatives for mana whenua and foresee serious concerns in the future. Taiwhenua are not in a position to identify where this recommendation may add value to their current position as they work collaboratively and positively through the Kotahi Plan with HBRC.

3. The HBRC Chair and Chief Executive's verbal updates reminded the committee that the Kotahi Plan Change provides an opportunity for great success. This programme will not only be led by staff; there will be all inclusive input from all governors from the Māori Committee and the RPC Committee for a better outcome. The Chair spoke on the recent visit to Waikato and Tauranga as well as a trip to the House of Parliament to meet with the Speaker of the house. It was important for governors to understand how parliament works and how Central and Local Government interrelate within each other.

4. The Chief Executive highlighted that the challenges Council have experienced are easing down and operations have restored following Covid-19. 2021-2022 Carry Forwards have been approved and three major consultations have been undertaken on Coastal Hazards, Possum Control, and the Regional Public Land Transport Plan. Currently awaiting the final decision on the TANK Plan Change which is due for public release. The future of the Māori Committee and broader Regional Planning Committee were discussed. The Chief Executive thanked the Māori Committee for their mahi over the years and acknowledged Councillors for embracing the partnership.

5. The Tāngata Whenua Representatives Remuneration Review item put forward a process for an independent review of tāngata whenua representatives’ remuneration and sought the Māori Committee’s support for the appointment of the reviewer and the Terms of Reference for the scope of the review.

5.1. Proposed that Strategic Pay interview the Māori Committee members to get a wider scope of the role in its entirety, including travel and meeting preparations.

6. The 2020-2022 Reflections and 2022-2025 vision for the Māori Committee item provided the opportunity for committee members to share their reflections of the past few years serving as Taiwhenua representatives, as well as their aspirations for the future of the Māori Committee. The item enabled the Committee to present a recommendation to the incoming Regional Council relating to the re-establishment of the Māori Committee and its ongoing membership.

7. The HBRIC Limited – Proposed name change and re-branding item updated the Committee on the proposed renaming of the Hawke’s Bay Regional Investment Company and presented the Committee with options for the final re-brand, graphics and colouring. The majority of the tāngata whenua members chose Option 2 for the proposed logo, colour and graphics.

8. The Climate Action item updated the Committee on activities undertaken since the Climate Action Ambassador’s first report in March 2022.

8.1. A range of initiatives have taken place such as community outreach programmes, raising community awareness, education and cross-council collaboration and building internal capacity through Climate Fresk workshops.

8.2. Next step is to establish a regional climate resilience plan with tāngata whenua involvement, setting values and aspirations, regional targets and determining actions and timelines - to deliver the plan by July 2023. Emission reductions must be considered as part of the bigger picture.

9. The Sustainable Seas project outcomes item provided an update on the Council’s operational activities and collaboration with the HB Marine and Coast Group (HBMaC) and the Sustainable Seas National Science Challenge case study for HB. The case study aims to implement the principals of Ecosystem Based Management – an integrated, science-based approach to the management of natural resources, and how to integrate management for a range of stressors across legislative boundaries.

10. The Reports from Regional Council and Committee Meetings item provided information from recent meetings attended by the Committee Co-chairs and representatives on Council committees. The Māori Committee representatives had the opportunity to discuss any matters of particular interest arising from those meetings

11. The August 2022 Statutory Advocacy update item provided a regular update from the Policy team on proposals forwarded to the Council for comment.

12. The verbal update on Kotahi community drop-in sessions item highlighted that the Policy and Regulation team have had seven of the 12 meetings across the region with good feedback received from communities. This feedback will be analysed and reported back to the Committee early next year.

13. The verbal update on TANK Plan change decisions item noted that a decision is now expected from the independent Commissioners within the next two weeks and will be provided to all submitters and governors in due course.

Decision Making Process

14. The items were specifically considered by the Māori Committee on 7 September 2022 and are now the subject of the following recommendations to Council.

Recommendations:

1. That Hawke’s Bay Regional Council receives and notes the Report and recommendations from the Māori Committee including the following Māori Committee resolutions:

Tāngata Whenua Representatives Remuneration Review

2. Recommends that Hawke’s Bay Regional Council appoint Strategic Pay to undertake the independent review of remuneration for tāngata whenua members of the Regional Planning Committee and the Māori Committee.

2.1 Agree to the proposed Terms of Reference for the independent review as set out in the report.

2020-2022 Reflections and 2022-2025 vision for the Māori Committee

3. Recommends that Hawke’s Bay Regional Council re-establishes the Māori Committee as part of the Council’s governance structure for the 2022-2025 triennium, including:

3.1. Consideration of membership for the Māori Committee to comprise:

3.1.1. Twelve representatives nominated by each of the four Taiwhenua and one Executive in Te Matau a Māui, being Heretaunga Taiwhenua, Tamatea Taiwhenua, Te Taiwhenua o Te Whanganui-a-Orotū, Wairoa Kahungunu Executive, and Wairoa Taiwhenua.

3.1.2. One representative nominated by Ngāti Kahungunu Iwi Incorporated.

3.1.3. Up to three elected members of the Hawke’s Bay Regional Council.

3.2. That the Māori Committee Charter is refreshed, to enable agreement to it and execution of it by the Chair of the Regional Council and Chair/s of the Māori Committee, to be completed by 30 March 2023.

Reports received

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

3.3.1. HBRIC Limited – Proposed name change and re-branding

3.3.2. Climate Action

3.3.3. Sustainable Seas project outcomes

3.3.4. Reports from Regional Council and Committee Meetings

3.3.5. August 2022 Statutory Advocacy update.

Authored by:

Annelie Roets

Governance Advisor

Peter Martin

Senior Governance Advisor

Approved by:

Pieri Munro

Te Pou Whakarae

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Report and recommendations from the Regional Transport Committee meeting 9 September 2022

Reason for Report

1. The following matters were considered by the Regional Transport Committee (RTC) on 9 September 2022 and are now presented for Council’s information alongside any additional commentary the Chair, Councillor Martin Williams, wishes to offer.

Agenda items

2. The Deputation from Walter Breustedt item enabled a member of public to provide the Committee with information on transport decarbonisation options.

3. The Submissions received on the draft Regional Transport Plan item provided the Committee with a full list of submissions received on the planned changes to the public transport network in Hawke’s Bay and a schedule for the hearing of verbal submissions being considered at the meeting:

3.1. 18 verbal submissions were scheduled including three from the disability community

3.2. 15 late submissions were received and accepted by the Committee; these largely related to the reinstatement of passenger rail services in HB

3.3. the Committee deliberated on the planned changes on 16 September 2022.

4. The Active Transport item provided the Committee with recommendations to improve governance and representation for the active transport sector in Hawke’s Bay. Key points of discussion included:

4.1. The 2022 Regional Land Transport Plan sets a clear direction for transport mode shift and emission reductions. To achieve this, it is important that active transport is effectively championed and advocated for at all levels

4.2. TAG has reviewed their structure and meeting practices and by restructuring these, will be better placed to work alongside representatives from all modes of transport including those from the active transport community, and provide better technical advice to the RTC

4.3. RTC voting membership is set by the Land Transport Management Act. It is proposed that a community appointed active transport group will be collaborating at TAG level, and operating in an advisory role at the RTC level

4.4. Active transport will be recorded as an express function of the RTC and will be a standing item at each RTC meeting.

5. The Transport Manager’s report provided an update on transport matters, including current national and local issues and work programmes from Waka Kotahi, the Total Mobility Scheme (including the Ridewise project), Road Safety Promotion, the Driver Licensing Programme, and the Transport Advisory Group (TAG). The report highlighted:

5.1. The MyWay trial launched in June 2022 is tracking well and a Napier trial is being developed, hopefully starting in July 2023

5.2. CHBDC is reporting a large number of slips affecting roads in their catchment following many rain events over past few months

5.3. Driver Licencing – Waka Kotahi is trialing a scheme to allow rurally isolated regions to get licence testing in place. The scheme is likely to be expanded into other regions such as Hawke’s Bay early in 2023.

6. The NZTA Central Region – Regional Relationship Directors September 2022 report provided an overview of HB road maintenance matters and national strategies which included:

6.1. Coastal shipping - Waka Kotahi is co-investing with four private companies to improve shipping services. There are potentially significant decarbonisation and road congestion benefits

6.2. SH5 timelines have been pushed back to allow a steering group, reference group, the governance structure, and an independent Chair to be put in place.

7. The Waka Kotahi update – Emissions Reduction Plan (ERP) item provided details of how the ERP affect regions:

7.1. Government emission reduction target is 41% by 2035. Three focus areas have been identified to reduce reliance on cars by:

7.1.1. supporting active and public transport

7.1.2. rapid adoption of low emissions vehicles

7.1.3. decarbonising heavy transport and freight.

7.2. Indicative Vehicle Kilometres Travelled (VKT) reduction target for Napier/Hastings combined urban area is 16%; major city targets are in 20% - 35% range

7.3. Two thirds of NZ emissions are produced by the light vehicle fleet.

Decision Making Process

8. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as the items were specifically considered by the Regional Transport Committee and this report is for information only, the decision-making provisions do not apply.

Recommendation

1. That Hawke’s Bay Regional Council receives and notes the Report from the 9 September 2022 Regional Transport Committee meeting, including the following resolutions of the Regional Transport Committee:

Submissions received on the draft Regional Public Transport Plan

That the Regional Transport Committee:

1.1 Receives and considers the written submissions and social media feedback on the Draft Regional Public Transport Plan 2022-2032

1.2 Receives and considers the verbal submissions on the Draft Regional Public Transport Plan 2022-2032 as presented by members of the community

1.3 Receives and accepts 15 late submissions received on the future of rail in Hawke’s Bay.

Active transport

That the Regional Transport Committee:

1.4 Receives and notes the Active Transport staff report

1.5 Acknowledges the intended formation of a Hawke’s Bay Regional Active Transport Committee (RATC) comprising a community appointed and facilitated committee representing active transport interests at regional level, including cycling and walking, as the key community stakeholder for all future transport infrastructure planning and investment decisions with active transport implications

1.6 Recommends that the terms of reference of the Committee be amended (as soon as possible in the next triennium) to:

1.6.1 record active transport as an express function of the Committee, with active transport to be a standing agenda item at each Regional Transport Committee meeting

1.6.2 include an advisory member dedicated to Active Transport on the Regional Transport Committee (with the intent that this would be the Chair of the RATC when established)

1.6.3 require that the Technical Advisory Group invite the Active Transport advisory member to attend all workstream discussions involving active transport and consult the RATC (when established) regarding the active transport implications of all transport infrastructure planning and investment decisions in the region.

Transport Manager’s September 2022 report

1.7 Receives and notes the Transport Manager’s September 2022 report.

NZTA Central Region - Regional Relationships Director's September 2022 report

1.8 Receives and notes the NZTA Central Region – Regional Relationships Director’s September 2022 Report.

Waka Kotahi update - Emissions Reduction Plan (ERP)

1.9 Receives and notes the Waka Kotahi update – Emissions Reduction Plan staff report.

General business

1.10 Supports an amendment being made to its Terms of Reference, during the triennium Committee structure review process, to allow the Hawke’s Bay Mayors and HBRC Chair to be ex officio members of the RTC.

2 The Regional Transport Committee received the following information reports:

2.1 Transport Manager’s report

2.2 NZTA Central Region – Regional Relationship Directors September 2022 report

2.3 Waka Kotahi update – Emissions Reduction Plan.

Authored by:

Katie Nimon

Transport Manager

Peter Martin

Senior Governance Advisor

Approved by:

Katrina Brunton

Group Manager Policy & Regulation

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Report and recommendations from the Environment and Integrated Catchments Committee meeting 21 September 2022

Reason for Report

1. The following matters were considered by the Environment and Integrated Catchments Committee (EICC) meeting on 21 September 2022. The recommendations agreed are now presented for Council’s consideration alongside any additional commentary the Chair, Councillor Hinewai Ormsby, wishes to offer.

Decision Agenda items

2. The following agenda items sought recommendations to the Regional Council from the EICC for decisions as detailed:

3. The Biosecurity Operational Plan and Annual Report item presented the Hawke’s Bay Regional Council’s Biosecurity Annual Report for the 2021-2022 year and Operational Plan for the 2022-2023 year.

3.1. Following the end of each financial year, Council is required to produce an Annual Report (AR) recording progress on implementation of the RPMP via the Operational Plan.

3.2. Although almost all programme objectives were achieved, the following areas of concern were identified:

3.2.1. 142 possum monitoring lines were above a 4% RTC, resulting in 40 properties failing their monitor (6.6% of properties monitored). Staff followed up with these properties requiring possum control to be undertaken.

3.2.2. Rabbit enquiries continue to increase, particularly in urban areas. Rabbits are a difficult pest to control and requires expensive ongoing management. National conversations regarding rabbit management continue across the biosecurity sectors due to their impact and difficultly in managing them long-term.

3.2.3. The number of properties with pest plants (primarily Chilean needle grass) continues to grow, resulting in increased pressure on Pest Plant budgets and staff.

4. The Central Hawke's Bay Tukituki swing bridge funding options item sought the Committee’s recommendation to the Regional Council for the funding source (Regional Disaster Damage Reserve – RDDR) to transfer funds from Council to Central Hawke’s Bay District Council (CHBDC) for the rebuild of the Tarewa Swing Bridge (Waipukurau). The RDDR (last reviewed 2007) is a reserve established to meet the commercial insurance excess $600,000 on each event, the uninsured 60% of edge protection damage and the costs of managing the response and recovery for a disaster event. Since this policy was approved, the excess has changed

4.1. It was recommended that the Committee approves the funding of $565,000 total ($23,632 from Upper Tukituki Depreciation Reserve and $541,368 from the General Disaster Relief Reserve) and provide this as a grant to Central Hawke’s Bay District Council to contribute towards the rebuild Tarewa Swing Bridge.

4.2. The bridge was damaged beyond repair in the March 2022 flooding event and was on the asset register and insured, but the overall cost of the damage from the March 2022 flood event came under the minimum excess, therefore no claim was made and now requires replacement funding from reserves.

Information reports

5. The following agenda items were provided to the EICC for information only as summarised.

6. The Organisational Ecology by Dr Edgar Burns item presented the third Organisational Ecology report and reported on the Council’s environmental work to support improved environmental practices and climate change readiness. The report brought a social lens to the Council’s role using the idea of organisational ecology to show the complexity and opportunities of Regional Council work. Dr Burns also presented the findings of his research to Council.

7. The Riparian margin survey results from Tukituki catchment item presented the results of the survey and an overview of the Council’s riparian monitoring programme.

7.1. The riparian monitoring project has investigated the present status of fencing and stock exclusion in the Tukituki catchment and will continue collecting fencing and stock exclusion information in other parts of Hawke’s Bay.

7.2. The programme estimates the present status of stock exclusion in Hawke’s Bay as a baseline for ongoing monitoring.

7.3. The riparian monitoring programme supports the collective work by staff on stock exclusion and can assist in identifying areas of high priority for education.

7.4. A new survey approach has been instigated to achieve better survey efficiency across the large number of monitoring sites. SKYVUW was hired to collect four-band orthophotography at the resolution of 2.5 cm for the remaining 213 sites outside the Tukituki catchment. Imagery was collected from September to December 2021, when the sun angle ensured good illumination of site areas. The imagery collected from the 213 sites can be analysed in stereo view in a GIS environment, which enables riparian characteristics to be collected effectively. The analysis workflow has been planned with assistance from the GIS team and will be initiated in November this year.

7.5. The new approach holds potential to shorten our current planned survey intervals (5 years) and provide more timely information

8. The Farm Environmental Management Plan (FEMP) updated the Committee on Farm Environmental Management Plans (FEMPs) in the Tukituki catchment.

8.1. FEMPs have been mandatory in the Tukituki catchment since 31 May 2018 and the Regional Resource Management Plan (RRMP) required these FEMPs to be updated on a 3-yearly basis, with the first round of updates due on 31 May 2021.

8.2. Most FEMP reviews and resubmissions have been completed, covering 95% of eligible land in Tukituki catchment. Follow-up action continues with the remaining 42 properties.

8.3. The focus for the period leading to the next resubmission in May 2024 is on auditing FEMPs, implementing process improvements, and planning the regional transition to Freshwater Farm Plans following clarification of those national requirements at the end of 202.

8.4. Planning is well underway to ensure success in the 2024 FEMP submission cycle for Tukituki focussing on five key deliverable areas.

8.5. An external consultant has been engaged to survey and interview landowners and FEMP providers to gather feedback on aspects of the 2021 resubmission process. The survey and interviews will help inform process improvements to be put in place for the next FEMP resubmissions.

9. The Environmental Enhancement programmes (EEP) item updated the Committee on the activities and achievements undertaken as part of the larger Environmental Protection and Enhancement Programme (PEP).

9.1. Following the 6 July EICC meeting, Council approved the request to implement a new delivery model for the PEP that will include a contestable community Environmental Enhancement Fund, along with an expansion of our Targeted Catchment Work Programme.

9.2. As implementation of the new delivery model begins, the report updated the Committee on the key activities and achievements delivered through the PEP since its inception.

10. The IRG programme delivery to date and next steps item provided an update on the four projects approved for funding as part of the Crown’s Flood Control Resilience Funding with the Infrastructure Reference Group (IRG) managed by Kānoa – Regional Economic Development & Investment Unit (formerly known as the Provincial Development Unit).

10.1. Heretaunga Plains Flood Control Scheme (HPFCS) Levels of Service - $20m – Physical works on the Taradale stopbank are now successfully completed, the cycleway has been redeveloped and is now open to the public. Completion of the maintenance access track, redistribution of topsoil and hydroseeding of the berm areas are due to be completed by 20 September 2022.

10.1.1. Moteo Stopbank upgrade is nearing the completion of detailed design and draft contract documents have provided for review.

10.1.2. Planning for the next tranche of stopbank upgrades (2023-2024 construction season) is underway, with the Raupare Upper, Chesterhope Upper, Brookfields Lower and Pakowhai Park having been prioritised for upgrade.

10.1.3. With four stopbank upgrades in progress, the anticipated expenditure for this work in the 2022-2023 Financial Year is $9.33m.

10.2. Upper Tukituki Flood Control Scheme Gravel Extraction - $8 million – The second tranche of extraction involves three reaches on each of the Waipawa and Upper Tukituki Rivers with a total of 433,000m³ of gravel being made available. Two of these reaches have Chilean needle grass present, so Regional Projects is working closely with Biosecurity to ensure the risk associated with extracting these gravels is adequately managed.

10.2.1. Tenders for the second tranche of extraction are currently under evaluation with 11 submissions received. Five preferred tenders have been identified. Extraction is likely to proceed in late September/early October 2022.

10.2.2. A third tranche of extraction will be investigated for the 2022-2023 extraction season, if the second tranche progresses in a timely fashion and contractor performance is acceptable.

10.3. Upper Tukituki Flood Control Scheme SH50/Waipawa Erosion - $1 million now completed.

10.4. Wairoa River, River Parade Erosion - $1 million – This project is substantially completed, with the fence and path being the only work remaining. Expected to be completed by 30 September 2022.

10.5. The Napier Meeanee Scheme Review – progress update item provided an update of the status and preliminary findings of the Napier Meeanee Drainage Scheme Review work undertaken to date and preliminary findings.

10.5.1. Prioritised schemes were selected on the basis that urgent review was required to support growth and/or provide a higher level of service to urban areas.

10.5.2. The scheme reviews will inform the Asset Management Plan and 30 Year Infrastructure Strategy and allow for decisions to be made on the appropriate level of capital investment in subsequent LTP development.

10.5.3. Staff will continue to develop the Napier Meeanee Drainage Scheme Review and present the final report to a future Environment and Integrated Catchments Committee (EICC) meeting.

Decision Making Process

11. 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:

11.1. Given the items were specifically considered by the Environment and Integrated Catchments Committee on 21 September 2022, Council can exercise its discretion and make decisions without consulting directly with the community or others having an interest in those in accordance with the following recommendations.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Report and recommendations from the Environment and Integrated Catchments Committee.

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 these issues without conferring directly with the community or persons likely to have an interest in the decision.

Biosecurity Operational Plan and Annual Report

3. Adopts the Biosecurity Operational Plan for 2022-2023.

Central Hawke's Bay Tukituki swing bridge funding options

4. Agrees to source funding totalling $565,000 ($23,632 from Upper Tukituki Depreciation Reserve and $541,368 from the General Disaster Relief Reserve) to contribute towards the rebuild of the Tarewa Swing Bridge in Central Hawke’s Bay.

5. Grant $565,000 to Central Hawke’s Bay District Council, with the understanding the funding will be going towards the construction of a replacement swing bridge, which will have pedestrian access in perpetuity.

6. Subject to the Chief Executive obtaining a satisfactory agreement for the maintenance of the bridge (the bridge will be responsibility of the CHBDC) and CHBDC guaranteeing pedestrian access in perpetuity.

Information reports received

7. Notes that the following reports were provided to the Environment and Integrated Catchments Committee:

7.1. Organisational Ecology by Dr Edgar Burns

7.2. Riparian margin survey results from Tukituki catchment

7.3. Farm Environmental Management Plan (FEMP) update

7.4. Environmental Enhancement programmes

7.5. IRG programme delivery to date and next steps

7.6. Napier Meeanee Scheme Review – progress update.

Authored by: Approved by:

Annelie Roets

Governance Advisor

Peter Martin

Senior Governance Advisor

Attachment/s: There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Climate Resilience

Transitioning to a sustainable low emissions future for Hawke’s Bay

Purpose

1. This paper seeks Council’s agreement to develop the region’s first emissions reduction plan towards the current goal of carbon neutral by 2050. This builds on the information provided in the Council workshop on 31 August. This paper provides further detail on working group membership and proposed approach.

2. At the time of writing, the Community Carbon Footprints for each Council in the Hawke’s Bay region have not been received from the consultants. When these are available, they will be circulated to Councillors in the usual fashion and included in the public agenda available on the Council’s website. Copies of all these documents will also be available at the Council meeting. These carbon footprints are important as they set the baseline for the Emissions Reduction Plan.

Officers’ Recommendations

3. Staff recommend that Council consider this report and agree to the proposed approach to develop the region’s first Emissions Reduction Plan.

Objectives

4. The Regional Emissions Reduction Plan will:

4.1. use the Regional Community Carbon Footprint as a starting point to identify regional greenhouse gas emissions

4.2. express a cultural narrative that engages local communities and inspires behavioural shifts and collective action,

4.3. refer to the table of actions in the national emissions reduction plan

4.4. propose quantified and measurable actions that can be monitored over time

4.5. convey the complex relationship between climate change variables and community wellbeing at a regional level,

4.6. be supported by multiple signatories, and

4.7. be incorporated into the long term plans of the region’s Territorial Local Authorities (TLAs), and supports proactive transition planning.

5. The objective of the Regional Emissions Reduction Plan is to play a leadership role in the regional contribution to international efforts under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels.

6. Our regional response will align with New Zealand’s Nationally Declared Contribution (50 per cent reduction of net emissions below our gross 2005 level by 2030), with our national emissions budgets and with the greenhouse gas emissions reduction targets to reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050 (Climate Change Response (Zero Carbon) Amendment Act 2019).

7. Regionally, HBRC declared a regional goal for net zero carbon by 2050. To achieve and go beyond this goal, we need a targeted and measurable emissions reduction plan with strong stakeholder input, cross council collaboration and community buy-in.

Scope

8. Although emissions reduction and adaptation are interconnected, staff believe that adaptation is covered by existing work programmes, both by regional council and territorial authorities, and that combining the two would result in adaptation dominating the plan and resulting actions. Recent and regular events such as floods, storm surges and heatwaves keep this work at the forefront of the community’s consciousness and create a platform for action. Emissions reduction on the other hand is a harder sell to the community as it requires systemic change which is more difficult to achieve across longer time frames, as well as behaviour change which can be perceived as giving up something.

9. The advantage of this approach is a dedicated table of actions that focus on transitioning regional activity towards a low-emissions future while maintaining prosperity, quality of life and wellbeing. Reducing emissions rapidly is a fundamental means of slowing the destabilisation of the climate, thus limiting the severity and frequency of extreme weather events which will impact our communities.

10. Staff propose that priority be given to reducing gross emissions of all greenhouse gases. With regard to biogenic methane emissions (ruminant animal emissions), we propose to follow the national He Waka Eke Noa approach with a focus on support for landowners and farmers across the region to achieve these nationally set targets.

11. In addition, we propose that emissions reductions actions are considered separately to offsetting / sequestration conversations so that priority is given to reducing emissions and sequestration is reserved only for essential emissions.

12. Note that this paper refers to region-wide greenhouse gas emissions relating to all activities, farming, industry and households. We differentiate between these and emissions relating to HBRC activities which are currently measured and managed by Corporate Services.

Project method

13. We propose to establish a core working group who will attend all hui and be responsible for maintaining momentum, achieving milestones and advocating for the final plan within their respective entities.

14. The working group will be tasked with systematically working through the proposed actions from the national Emissions Reduction Plan and assessing them for relevance to Hawke’s Bay and impact on regional emissions. It is hoped that by participating directly in the drafting of the plan, these member organisations will have strong buy-in and become automatic signatories to the final document.

15. While membership is not yet finalised, suggested membership (entity and role) includes:

15.1. Napier City Council (Climate Change Policy Analyst)

15.2. Hastings District Council (tbc)

15.3. Central Hawke’s Bay District Council (tbc)

15.4. Wairoa District Council (tbc)

15.5. Environment Centre (Chief Executive)

15.6. HB Biodiversity (General Manager)

15.7. Forest & Bird (Freshwater Advocate)

15.8. Unison (tbc)

15.9. Ministry of Primary Industries (tbc)

15.10. Ngāti Kahungunu (tbc)

15.11. Sustainability Council (tbc)

15.12. 3R Group (tbc)

15.13. PSGE representatives (tbc).

16. In addition to the core working group listed above, subject matter experts will be invited to participate in specific meetings relating to their topics of expertise and chapters below. They will also participate in wider collaborative group meetings (including launch, mid way and final meeting).

17. All members will be asked to nominate a reserve who will attend any meetings in their absence.

18. Workshops will be facilitated by an external facilitator.

Draft themes / Chapters (based on national Emissions Reduction Plan):

18.1. Building & Construction

18.2. Transport

18.3. Equitable transition

18.4. Planning and infrastructure

18.5. Working with nature

18.6. Waste

18.7. Housing.

Tāngata whenua engagement

19. Initial engagement with Ngāti Kahungunu indicated support for this approach and propose that the work commence with a wānanga to develop a cultural narrative for climate change that would frame the development of the plan. This wānanga would need to be co-designed and led by a facilitator with deep environmental mātauranga.

Community engagement

20. Broader community engagement will consist of a range of awareness building and education opportunities to bring the wider community along and seek their support and buy-in for the Plan. All organisations and individuals will also be invited to sign up to the Plan to reiterate that collective action is needed and that even small actions, such as household recycling or businesses making sustainable improvements to their supply chain, contribute to further actions and an overall shift to a lower emissions future.

21. While climate change adaptation activities include an equity focus for communities which will be more heavily impacted by extreme weather events and have less resilience to respond, equity considerations in emissions reduction work must ensure that all actions maintain a minimum adequate quality of life. The biggest focus must be placed on activities that have the highest emissions and where there is the capacity to adapt. Support will need to be offered to communities with low levels of resilience and where transition may impact livelihoods.

22. At this stage, we are proposing two events to build awareness and seek broad community input. A breakfast event is proposed for 22 November 2022 with guest speakers to effectively launch the process to develop a plan. The second in March 2023 would be to test ideas and seek direct community feedback.

23. We anticipate that the launch of the plan will also generate profile and media interest, particularly if we can successfully get individuals and organisations pledging and signing up the Plan.

Project Governance

24. Staff propose that the Emissions Reduction Plan be governed by the Matariki Governance Group that oversees Matariki Regional Development Strategy for economic, inclusive and sustainable growth. This entity which is represented by councils, iwi and business would be a natural home for the regional climate action work. It would elevate the Emissions Reduction Plan as a strategic priority for the region and naturally cascade into the work programmes and budgets of its members, thereby operationalising the plan. Emissions reduction sit under Pou 3: Resilient Communities & Infrastructure.

Project timeline

25. There is a short window to develop the Emissions Reduction Plan by 1 July 2023. This is to ensure it is completed in time to inform the next round of long-term plans and to show urgency reflecting the Council’s emergency declaration in June 2019.

26. In recognition of the time available, it must be emphasised that this is the first of many such plans. It will be iterative based on best information at the time and, by design, adaptable in line with future developments. We need to show action pathways but recognise that national frameworks are evolving quickly and that the regional resource management plan review is also happening during this window.

27. Key dates include:

Date	Hui theme	Attendees
October	Launch, set goals, scope of work	All WG members
November	Public breakfast event with Guest Speakers (22 Nov) Transport theme meeting	All WG + Public Core + transport
December	Wānanga	All WG members
January	Building and construction theme meeting	Core + transport
February	Waste theme meeting	Core + waste
March	Public Event tbc	All WG + Public
April	Equitable transition theme meeting	All WG members
May	Housing theme meeting	Core + housing
June	Working with nature theme meeting	Core + Nature-based
July	Public Event to launch ERP	All WG + public

Next steps

28. Working group membership will be formalised and hui schedule confirmed.

Strategic Fit

29. As noted in the Strategic Plan 2020-25, climate change is at the heart of everything we do. This emissions reduction plan directly relates to the strategic goal ‘By 2025, HBRC is carbon zero and plays a leadership role in the region’s goal of net zero greenhouse gases by 2050’.

Significance and Engagement Policy Assessment

30. Staff have assessed this decision paper against the Council’s Significance and Engagement Policy and have concluded that this is not a significant decision at this stage and can be made without public consultation. The more substantive decision will be to adopt the emissions reduction plan in July 2023.

Considerations of Tāngata whenua

31. We have had initial engagement with Ngāti Kahungunu to discuss how tangata whenua considerations can be taken into account for this work. This paper proposes to continue this engagement and to prioritise mana whenua involvement.

Financial and Resource Implications

32. This work is covered within the existing Response to Climate Change budget and the carry forward from the 2021-2022 financial year.

Legal Implications

33. The proposed Emissions Reduction Plan is a non-statutory document so there are no legal implications.

Decision Making Process

34. 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:

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

34.2. The persons directly affected by this decision are all of the Hawke’s Bay community.

Recommendation

That the Hawke’s Bay Regional Council:

1. Receives and considers the Climate Resilience– Transitioning to a sustainable low emissions future for Hawke’s Bay staff report.

2. Agrees that the decision to be made is 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. Agrees to develop the region’s first emissions reduction plan aiming for carbon neutrality, informed by the recently completed Regional Community Carbon Footprint.

Authored by:

Pippa McKelvie-Sebileau

Climate Action Ambassador

Desiree Cull

Strategy & Governance Manager

Approved by:

James Palmer

Chief Executive

Attachment/s

1	Napier City Council Carbon Footprint	Under Separate Cover
2	Hastings District Community Carbon Footprint	Under Separate Cover
3	Wairoa District Community Carbon Footprint	Under Separate Cover
4	Central Hawke's Bay Community Carbon Footprint	Under Separate Cover
5	Hawke's Bay Regional Community Carbon Footprint	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 28 September 2022

Subject: Regional Economic Development Agency establishment/ update

Reason for Report

1. This paper provides councillors with a progress update on the establishment of the Regional Economic Development Agency (REDA). It outlines the:

1.1. governance and shareholding framework for REDA

1.2. roles and accountabilities of key parties in relation to REDA

1.3. updated establishment timeline

1.4. business Hub relocation

1.5. current activity and proposed next steps.

Background

2. In November 2021, a Stage 2 Review of Investment in Business and Industry Support across the Hawke’s Bay region was undertaken by Gus Charteris Consulting for the five Hawke’s Bay councils.

3. On 24 November 2021, HBRC supported the Stage 2 Review recommendations for priority activities/services and the focus for ratepayer investment in business and industry support and supported the establishment of a regional development entity in Hawke’s Bay. At the same meeting, Council endorsed the Hawke’s Bay councils’ partnership approach with iwi/hapū and agreed to accommodate the Regional Council’s funding contribution for the new entity from reprioritisation within the targeted rate funded regional development budget in the 2022-2023 Annual Plan.

4. It was acknowledged at that time that establishment of a regional entity effectively removed HBRC from direct delivery of business and industry development and transfers that activity to the new entity. However, this does not affect HBRC’s existing relationship and funding with HB Tourism.

5. Oversight of progress of establishment was transferred to the Matariki Governance Group (MGG).

Governance and Shareholding

6. The Matariki Governance Group (MGG) met in August 2022 to confirm, amongst other things the governance and shareholding arrangements for REDA.

7. From that meeting, the following governance and shareholding was proposed:

7.1. A skills-based board for REDA will be appointed by MGG, delegated to an appointments panel comprising representatives from iwi/hapū, councils, business and Māori business.

7.2. The legal entity for REDA will be a limited liability company with shareholding in equal thirds to the following parties:

7.2.1. Councils – apportioned pro-rata according to funding level

7.2.2. Te Kāhui Ōhanga o Takitimu – representation to be confirmed.

7.2.3. Business in two parts being:

7.2.3.1. Business represented by the Hawke’s Bay Chamber..

7.2.3.2. Māori business, representation to be confirmed.

Roles and Accountabilities

8. At their August meeting, the MGG also confirmed the roles and responsibilities of the various stakeholders in relation to REDA. These are illustrated in the attached RACI model.

8.1. Matariki Governance Group is accountable for:

8.1.1. Board Appointments Panel and process to approved board members

8.1.2. determining the Key Performance Indicators (KPIs) for REDA supporting the Matariki vision and strategy.

9. In order to better fulfil its role for oversite of regional economic development in the region, Matariki has agreed to seeking further business representation onto the Governance Group. Currently Matariki currently comprises Post Settlement Group Entity Chairs, Council mayors/chair and the Napier Port Chair. The Governance Group has previously had more business representation.

High-level timeline

10. An updated high-level timeline for REDA establishment is outlined below:

11. The revised summary timeline sets out the following:

11.1. The board appointments process will start mid-September. Board members are expected to be announced in mid-November.

11.2. Confirmation of the shareholding entities for REDA and incorporation of REDA will occur in parallel and is expected to be completed end of October.

11.3. The funding agreement with councils will be signed by the end of November, allowing REDA to enter into contracts and transition the Business Hub functions.

11.4. KPIs will be reviewed and confirmed by the REDA Board and MGG by the end of November.

Relocation of Business Hub

12. HBRC has provided funding and management of the operational home for the Business Hub pending the transfer to REDA when it is established. Currently this includes operational funding for the Business Hub premises in Ahuriri, and 2.15 full time equivalent staff that manage the Hub operation during the current transition period.

13. In August 2020, owners of the current Business Hub premises in Ahuriri gave formal notice of termination for the lease effective at the end of January 2023.

14. Although this is an additional complexity in establishing REDA, it offers the opportunity to reset the Business Hub alongside a newly formed REDA.

15. The Business Hub currently accommodates other entities under Occupation License Agreements. Council is working with tenants and stakeholders to identify new location options and plan for relocation.

16. Councils propose to run an Expressions of Interest type process to find a new location until the end of September. A panel will be selected to assess location options and then work to secure the preferred option.

Related Activity

17. Chief Executives are exploring the scope for a piece of work to support the inaugural Board with areas of focus for the REDA to support the strategic priorities and objectives in Pou 4: Economic Growth of the Matariki Regional Development Strategy.

18. Related to the above, the Matariki Governance Group is considering a proposal received from Napier Port for REDA funding of $250,000 to progress the development of a Hawke’s Bay Distribution Network Strategy, subject to an acceptable statement of work, deliverables, and business plan.

Current activity and next steps

19. The following activity has been completed:

19.1. governance and shareholding arrangements confirmed

19.2. board appointments process has been confirmed and recruitment process is underway

19.3. roles and Responsibilities associated with REDA by MGG confirmed

19.4. parties confirmed that the board appointments process should proceed

19.5. constitution and legal advice have been drafted and undergoing amendments by the parties

19.6. KPIs have been drafted and undergoing review by the current project team and CE’s.

20. Next steps include the following activity and accountability:

20.1. assemble the board appointments panel and initiate the appointments process – Board Appointment Panel

20.2. MGG co-chairs to release media about REDA establishment and board appointments process in line with advertising of the roles – MGG co-chairs

20.3. work with tenants and stakeholders to identify and plan for relocation of the Business Hub – HBRC as lead for Hawke’s Bay councils

20.4. finalise the constitution – proposed shareholder signatories: PSGEs, councils, business

20.5. confirm shareholding entities for PSGEs and Māori Business and incorporate REDA – PSGEs

20.6. review draft KPIs ready for review by the incoming REDA Board – Matariki including new business representation.

Decision Making Process

21. 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 Regional Economic Development Agency establishment/update staff report.

Authored by:

Michael Bassett-Foss

RTRP Project Manager

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

1 ⇩

REDA RACI Matrix

Topic	Raised by