Meeting of the Hawke's Bay Regional Council
Date: 29 March 2023
Time: 1.30pm
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Title Page
1. Welcome/Karakia/Apologies/Notices
2. Conflict of Interest Declarations
3. Confirmation of Minutes of the Regional Council meetings held on 8 March and 22 March 2023
Decision Items
4. Financial delegations 3
5. Cyclone Recovery Committee establishment 5
6. Annual Freshwater Science charges (s.36) 2022-2023 11
7. Report and recommendations from the Regional Transport Committee 19
8. HBRIC Ltd and FoodEast 2023-2024 draft Statements of Intent and Quarterly update 25
Information or Performance Monitoring
9. Significant activities in the organisation’s transition to recovery from Cyclone Gabrielle 35
Decision Items (Public Excluded)
10. Confirmation of Public Excluded minutes of the meetings held on 8 March and 22 March 2023 43
11. Investment Strategy review outcomes 45
29 March 2023
Subject: Financial delegations
Reason for Report
1. The purpose of this paper is to obtain the necessary delegations to authorise the borrowing of new debt to the Chief Executive (CE) and Group Manager Corporate Services (GMCS) under the Treasury Policy.
2. Previously, any new debt within the annual plan proposed limits was entered into by previous Chief Executive, James Palmer. Subsequent review of the Treasury Policy, in particular the delegation of authority and authority limits on page 252 of the Council’s 2021-31 Long Term Plan (LTP), suggests this authority requires specific delegation by Council.
Officers’ Recommendations
3. Council officers recommend that Council delegates borrowing up to the annual plan total debt amount of $104m (new debt of +$44m) to the CE and GMCS, noting that further delegation over and above this level, if required, will be a Council decision.
Background
4. The Annual Plan 2022-2023 provisioned for new debt of $27.5m with a total debt totalling $104m. Our current total borrowing is $59.2m which includes new debt during the year of $14m (excluding $5m of undrawn overdraft (OD) facility for liquidity purposes).
External Debt |
New Borrowing Amount |
Running Total |
Existing Debt facilities |
|
$45,233,333 |
LGFA - August 2022 |
$4,000,000 |
$49,233,333 |
LGFA – March 2023 (6mth floating) |
$10,000,000 |
$59,233,333 |
Total Borrowing |
$14,000,000 |
$59,233,333 |
5. Following Cyclone Gabrielle we have highlighted there will be a short term cashflow need due to timing of creditors needing payment and the claim of costs from both NEMA and insurances that will subsequently follow. We estimate this could range between $20m and $40m.
Financial and Resource Implications
6. The potential impact of borrowing will be on interest expense as current interest rates are approximately 5.5% per annum as opposed to the 2.5% per annum in the 2022-2023 Annual Plan. However due to limited borrowing to date as planned, savings have already been made against this.
7. The overall interest impact will also depend on the timing of any new borrowing.
Decision Making Process
8. 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:
8.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.
8.2. The use of the special consultative procedure is not prescribed by legislation.
8.3. The decision is necessary for the financial delegations to be compliant with Council’s current Treasury Policy.
That Hawke’s Bay Regional Council:
1. Receives and considers the Financial delegations 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. Delegates borrowing up to the 2022-2023 Annual Plan total debt amount of $104m (new debt of +$44m) to the Hawke’s Bay Regional Council Chief Executive and Group Manager Corporate Services, noting that further delegation over and above this level, if required, will be a Council decision.
Authored by:
Jess Bennett Treasury & Investments Accountant |
Chris Comber Chief Financial Officer |
Approved by:
Susie Young Group Manager Corporate Services |
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There are no attachments for this report.
29 March 2023
Subject: Cyclone Recovery Committee establishment
Reason for Report
1. This paper seeks the appointment of a Cyclone Recovery Committee to coordinate and direct the Hawke’s Bay Regional Council’s recovery initiatives in support of environmental and community recovery from Cyclone Gabrielle.
Officers’ Recommendations
2. Council officers recommend that the Council agrees to replace the Environment and Integrated Catchments Committee (EICC) with the Cyclone Recovery Committee, as part of its governance structure for the remainder of the 2022-2025 triennium.
3. Further, officers recommend that the Council considers and adopts the proposed Terms of Reference (attached), including any amendments agreed today, in order to establish the Cyclone Recovery Committee.
4. In addition, Council is asked to agree that the Cyclone Recovery Committee retains councillors Sophie Siers as Chair and Di Roadley as deputy chair, effectively transferring those roles from EICC.
Background /Discussion
5. Under clause 30 of Schedule 7 of the Local Government Act 2002 (LGA), the Council may appoint committees, sub-committees and other subordinate decision-making bodies that it considers appropriate. Council can, at any stage, review its committee structure to ensure that it is appropriate and operating as intended.
6. On 16 November 2022, the newly elected Regional Council adopted its committee structure including the appointment of the Environment and Integrated Catchments Committee (EICC). Among other things EICC is responsible for considering the state and condition of the environment, the effectiveness of council services such as flood protection, soil conversation, pest control, environmental protection initiatives, navigational safety, and open spaces, and responses to emerging and significant environmental issues including climate change and water security.
7. Post Cyclone Gabrielle, it is proposed to change the remit of the EICC to a dedicated Recovery Committee. This recognises that most of the work programmes reporting to EICC will now need to pivot to recovery. Repurposing EICC should avoid duplication and streamline decision-making for recovery.
Meeting frequency and membership
8. EICC is a committee of the whole that meets quarterly in line with other council committees. It is proposed to increase the frequency of the Cyclone Recovery Committee meetings to around 6-weekly through to until at least the end of the calendar year to reflect the fast pace of work, desire for information and to avoid any bottlenecks from Council decision-making processes.
9. It is also proposed to increase tangata whenua membership from one appointed member of the Māori Committee and one appointed member of the Regional Planning Committee to two members from each to ensure that affected communities are well represented on the Recovery Committee.
Strategic Fit
10. The establishment of a Cyclone Recovery Committee will support the achievement of the Regional Council’s mission, vision and several of the strategic goals set in the Regional Council’s Strategic Plan 2020-2025 including By 2030, flood risk is being managed to adapt to foreseeable climate change risks out to 2100 and By 2050, all highly erodible land is under tree cover.
Significance and Engagement Policy Assessment
11. The governance structure is a decision of council, required by the Local Government Act and does not require consultation.
Climate Change Considerations
12. Climate resilience will be an important consideration of the Cyclone Gabrielle Committee during the environmental and community recovery.
Tangata Whenua considerations
13. The proposal to increase tangata whenua representation on the Committee was canvassed with the Co-chair of the Regional Planning Committee and the Co-chairs of the Māori Committee, and while capacity issues were noted, the clear message was to ensure coverage of the affected areas across the region so no one is left out.
Financial and Resource Implications
14. There will be a minor financial impact related to mileage and meeting costs due to the increased frequency of meetings.
15. There will be no change to remuneration for councillor members if the Council agrees to replace the Environment and Integrated Catchments Committee (EICC) with the Cyclone Recovery Committee and retain its Chair and Deputy Chair.
16. The current rate for additional meetings for appointed members is $452 per meeting per representative. The increased costs for additional tangata whenua representation are minor and can be accommodated within existing budgets due to fewer All Governors Forum meetings.
Decision Making Process
17. 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:
17.1. Council is required to (LGA sch.7 cl.19(1)) hold the meetings that are necessary for the good government of its region
17.2. Council may appoint (LGA sch.7 cl. 30(1)(a)) the committees, subcommittees, and other subordinate decision-making bodies that it considers appropriate
17.3. Given the provisions above, Council can exercise its discretion and make these decisions without consulting directly with the community or others having an interest in the decision.
That Hawke’s Bay Regional Council:
1. Receives and considers the Cyclone Recovery Committee establishment 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.
3. Appoints the Cyclone Recovery Committee, under Clause 30 of Schedule 7 of the Local Government Act 2002.
4. Adopts the proposed Terms of Reference (attached) with the inclusion of any changes agreed on 29 March 2023.
Authored by:
Desiree Cull Strategy & Governance Manager |
Louise McPhail HBRC Recovery Manager |
Approved by:
Pieri Munro Interim Chief Executive |
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1⇩ |
Cyclone Recovery Committee draft Terms of Reference |
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29 March 2023
Subject: Annual Freshwater Science charges (S.36) 2022-2023
Reason for Report
1. This report seeks a decision from Council on the approach to take for the Annual Freshwater Science Charges for the 2022-2023 financial year, given the impacts of Cyclone Gabrielle on resource consent holders and on the science and monitoring activities that HBRC are performing.
Officers’ Recommendations
2. Officers recommend that Council considers the paper and approves option 3 for the approach to annual freshwater science charges and water meter administration charges for the 2022-2023 financial year, being:
2.1. to reduce the annual freshwater science charges to all discharge consent holders by 42%, representing a change in water quality business-as-usual activity for five months of the financial year after the Cyclone hit, and
2.2. to proceed with annual freshwater science charges and water measuring device administration fees for the water take consent holders as per the Annual Plan fees & charges schedule, and
2.3. to accept requests for one-off fee exemptions where consent holders have been unable to exercise their consent due to Cyclone Gabrielle damage, or financial hardship due to the Cyclone.
3. Officers also recommend that Low Flow Monitoring charges are waived for the 2022-2023 financial year.
Executive Summary
4. The Annual Freshwater Science Charges were set at the start of 2022-2023, based on the Annual Plan for this financial year. The charges are to water take and discharge resource consent holders, for a proportion of the science research, investigation and monitoring of water quantity and quality in the region. The total budgeted expenditure for this activity was $7.9m, with $2.5m being funded from fees and charges, and the balance from general funds.
5. In addition to the Annual Freshwater Science charges, eligible water take consent holders are also charged a water measuring device administration fee and a low flows annual monitoring fee. These fees cover 100% of the cost of the water information services team and the monitoring of river flows during incidents of low flows.
6. Flooding and other damage caused by Cyclone Gabrielle has significantly impacted many resource consent holders, to the extent they are not currently able to exercise their resource consent. The work programme for water science has also been impacted, where staff time has been re-prioritised to cyclone response/recovery, and the focus of water quality activities has shifted to analysis of the cyclone impacts which have a wider public benefit.
7. The Annual Freshwater Science Charges are set under Section 36 of the RMA. Under section 36AAB(1), Council has the power to give full or partial remissions of any charges set under this section.
8. On the basis that some resource consent holders have been significantly impacted, and the focus of the water quality science work programme has changed since Cyclone Gabrielle occurred, it is proposed to reduce the Annual Freshwater Science charges for this financial year.
9. This paper proposes three different options for what the fees approach might take:
9.1. Option 1: Proceed with annual freshwater science charges and water measuring device administration fees as per the Annual Plan fees & charges schedule, with no fee waivers.
OR
9.2. Option 2: Proceed with annual freshwater science charges and water measuring device administration fees as per the Annual Plan fees & charges schedule and accept requests for one-off fee exemptions where consent holders have been unable to exercise their consent due to Cyclone Gabrielle damage or financial hardship due to the Cyclone.
OR
9.3. Option 3: Reduce the annual freshwater science charges to all discharge consent holders by 42%, representing a change in water quality business-as-usual activity for the five months of the financial year after the Cyclone hit, and proceed with annual freshwater science charges and water measuring device administration fees for the water take consent holders as per the Annual Plan fees & charges schedule, and accept requests for one-off fee exemptions where consent holders have been unable to exercise their consent due to Cyclone Gabrielle damage, or financial hardship due to the Cyclone.
10. This paper also proposes full remission of the low flows monitoring fee for this financial year, on the basis that there have not been any incidents of low flows so far this year, and therefore there has been very limited expenditure incurred for this activity.
11. Officers seek a decision from Council on which option should be used for the preparation of invoices for this financial year. Based on this decision, officers will prepare invoices for consent holders to be issued during the month of April, with a due date of 20 May. A plan will also be prepared for communication to effected resource consent holders for any changes agreed.
Background /Discussion
12. The Annual Freshwater Science Charges for 2022-2023 were set based on the Annual Plan. The charges are levied against water take and discharge resource consent holders, for 35% of the total costs of science research, investigation and monitoring of water quantity and quality in the region, as determined in the Revenue and Finance policy. The current schedule for these charges is attached.
13. Broadly speaking, the proportion of costs of water quantity activities are recovered from water take consent holders, and the water quality activities from discharge to land/water consent holders.
14. Two additional administration fees are also included on the annual freshwater science charges invoice, specifically for water take resource consent holders.
14.1. Water measuring device administration – which funds the Water Information Services activity, including administration of record keeping for installation and verification of water meters and the retrieval and processing of water meter data.
14.2. Low flows annual monitoring – which funds the cost of the environmental information team to monitor river low flows, to inform consent holders who have low flow conditions on their water take consents.
15. Table 1 following shows the current administration charges for water meters and low flows monitoring.
Table 1
|
2022-23 Annual Charge (excl GST) |
Annual water measuring device admin charge (for first meter) PLUS, each additional water measuring device |
$210 $40 |
Annual water measuring device admin charge – non exercised consent |
$40 |
Low flows annual monitoring fee |
$250 |
16. Cyclone Gabrielle has impacted a significant number of resource consent holders in the region, where they are either currently unable to exercise their resource consent due to flood damage and/or they are experiencing financial hardship due to the interruption to their commercial enterprises. Officers are seeking councillor consideration of how assistance can be given to these consent holders via some form of financial relief of the annual freshwater science charges.
17. The original programme of scientific research, investigations and monitoring for water quality has been interrupted by the Cyclone event, with the focus broadening out from the State of the Environment type of programmes to include disaster impact investigations. As such the purpose of water quality science has taken on a wider public benefit from February 2023 and is expected to do so for the remainder of this financial year.
18. Water quantity related activities will largely continue as planned, and as such no changes are proposed in relation to water take consent charges, other than fee remissions for consent holders impacted by the Cyclone.
19. There have been no incidents of low flows in the rivers to date this year, and therefore there has been limited expenditure incurred to monitor these occurrences.
20. The water science related consent charges are fixed under Section 36 of the Resource Management Act. Discretionary fee reductions are permitted under section 36AAB(1), however the forfeit revenue would need to be offset by reduced expenditure on water science activities and/or funded via general funds. Currently the water science activities are underspent, and this is expected to continue as a proportion of staff time has, and continues to be, directed towards cyclone response/recovery.
21. The invoices for the water science related charges are usually sent in March, to cover the period of the current financial year (1 July to 30 June). Due to the timing of the Cyclone, invoice preparations have been delayed. Once direction has been received from Council on any changes to the fees that will be charged, council officers will run the billing process for invoices to be issued by the end of April, with a payment due date on 20 May 2023.
22. The invoices are accompanied by an information flyer explaining what the charges are for and the science and monitoring activities achieved during the year for which their fees are contributing towards. This information flyer would be used to explain any agreed changes in approach for this financial year and to provide an opportunity to explain how the environmental science and information teams have responded to the Cyclone. The flyer will also discuss the appropriate avenue for applying for one-off fee exemptions if these are part of the approved approach.
Options Assessment
Annual Freshwater Science charges and Water measuring device admin fee
23. Three options for changes to this year’s Annual Freshwater Science charges and water measuring device admin fee are proposed for Council consideration, which vary in the amount of relief to consent holders, and consequently the total impact on income for the financial year.
24. The estimate of the forfeit revenue from each option is in table 2. The assumption made for the quantum of fees remitted for effected consent holders is based on 25-30% of water take consents, which is derived from a high-level analysis of the flood map overlayed with the sites of current resource consents.
Option 1: Annual Charge as scheduled, no fee remissions
25. All eligible consent holders are invoiced in line with the annual plan fees and charges schedule, with no fee remissions considered. This option acknowledges the financial pressure HBRC is experiencing, though does not address any financial relief to the Region’s affected consent holders.
Option 2: Annual Charge as scheduled, but remit fees by exception
26. All eligible consent holders are invoiced in line with the annual plan fees and charges schedule, however consent holders are advised that we will consider applications for a fees remission in circumstances where they have experienced significant financial hardship and/or they are physically unable to exercise their consent due to damage caused by the Cyclone.
27. The advantage of this option is that unaffected consent holders will still receive normal annual charges, and those directly affected will receive financial relief, albeit by request.
28. The disadvantage of this option is the administrative burden of processing remission requests. An alternate option to identify effected consents before running the billing and amend the invoices accordingly is not considered practical as there is not a definitive data source to adequately guide which consent holders have been affected (unlike red and yellow stickering of properties for rates).
Option 3: Annual Charge reduced by 42% for discharge consent holders, and remit fees by exception
29. All eligible water take consent holders are invoiced in line with the annual plan fees and charges schedule. All discharge consent holders are invoiced in line with the annual plan fees and charges, and a 42% fee reduction is applied to each invoice representing the period of the financial year post Cyclone Gabrielle. In addition to this, consent holders would be advised that we will consider applications for a fees remission, in circumstances where they have experienced significant financial hardship and/or they are physically unable to exercise their consent due to damage caused by the Cyclone.
30. The advantage of this option is that significantly affected consent holders will receive financial relief, and the collection of fees and charges for water quality science is in line with the principles of user pays (i.e.: water quality activities post the cyclone is overtaken by the cyclone disaster impact assessments with a wider general public benefit, and it is therefore more appropriately funded through general funds than fees and charges).
31. As per the previous option, the disadvantage of option 3 is the administrative burden of managing and processing the remission requests.
Table 2 – Estimated forfeit revenue from fee changes
Option |
Estimate of forfeit revenue |
|
1 |
Annual Charges issued as scheduled, no fee remission |
$0 |
2 |
Annual Charges issued as scheduled but accept fee remissions by exception for consent holders who are unable to exercise their water take or discharge consent due to cyclone damage. |
$684,000 to $760,000 |
3 |
Annual Charges issued as scheduled for water take consents, but reduced by 42% for discharge consents, and accept fee remissions by exception for consent holders who are unable to exercise their water take or discharge consent due to cyclone damage. |
$1,155,000 to $1,187,000 |
Low Flows monitoring charge
32. Options are to:
32.1. Charge the fee as scheduled or
32.2. Remit 100% of the fee for this year (i.e. charge not applied).
33. Full remission of the fee would forfeit $93,750 in revenue. It should be noted however that current costs incurred for the programme this financial year are negligible.
34. It is the view of Council Officers that it would be unpalatable to consent holders to receive an invoice for a fee to monitor river low flows in a year that has had no need for low flow monitoring and record-breaking rainfall, and as such the preferred option is to remit this fee in full for this financial year.
Financial and Resource Implications
35. Hawke’ Bay Regional Council is experiencing significant financial pressures as a result of Cyclone Gabrielle. Any decision to reduce income from fees and charges will add to this financial pressure.
36. Any agreed forfeit of fees and charges income from s.36 charges would be met first by reduced expenditure in the water science activities, and the balance from general funds. There is currently some underspend in these areas through staff vacancies, staff time directed to the emergency response and no low flow monitoring, but this is not a significant amount.
37. For the remainder of the year water quantity activity will continue as planned, and activities related to water quality will continue with a different focus than originally planned.
Decision Making Process
38. 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:
38.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.
38.2. The use of the special consultative procedure is not prescribed by legislation.
38.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.
38.4. The persons affected by this decision are those resource consent holders who are eligible to pay freshwater science charges.
38.5. 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.
That Hawke’s Bay Regional Council:
1. Receives and considers the Annual Freshwater Science charges (s.36) 2022-2023 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.
3. Directs Council officers to amend the Annual Freshwater Science Charges approach for the 2022-2023 financial year to:
3.1. Option 1: All eligible consent holders are invoiced as per the Annual Plan fees and charges schedule
OR
3.2. Option 2: All eligible consent holders are invoiced as per the Annual Plan fees and charges schedule, and accept requests for one-off fee exemptions where consent holders have been unable to exercise their consent due to Cyclone Gabrielle damage or financial hardship due to the Cyclone.
OR
3.3. Option 3: Reduce the annual freshwater science charges to all discharge consent holders by 42%, representing a change in water quality business-as-usual activity for five months of the financial year after the Cyclone hit, and proceed with annual freshwater science charges and water measuring device administration fees for the water take consent holders as per the Annual Plan fees & charges schedule, and accept requests for one-off fee exemptions where consent holders have been unable to exercise their consent due to Cyclone Gabrielle damage, or financial hardship due to the Cyclone.
OR
3.4. Option 4: an alternate approach (Council to confirm)
AND
4. Waives the Low Flows Monitoring annual fee for the 2022-2023 financial year.
Authored by:
Amy Allan Senior Business Partner |
Rob Hogan Manager Compliance |
Approved by:
Katrina Brunton Group Manager Policy & Regulation |
Susie Young Group Manager Corporate Services |
1⇩ |
Annual Freshwater Science Charges 2022-23 |
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29 March 2023
Subject: Report and recommendations from the Regional Transport Committee
Reason for Report
1. The following matters were considered by the Regional Transport Committee (RTC) on 10 February 2023 and are now presented for Council’s consideration alongside any additional commentary the Chair, Councillor Martin Williams, wishes to offer.
Agenda items
2. The Regional Transport Committee Terms of Reference (ToR) and member appointments item was of an administrative nature and prompted the RTC requesting the following amendments be incorporated for Regional Council adoption.
2.1. Health sector advisory representative is to be specified as representing Te Whatu Ora
2.2. Hawke’s Bay Airport to be represented as a non-voting advisory member if application is made
2.3. Tracked changes of amendments to the 2019 version of the ToR (attached) to be provided to the 5 May RTC meeting for confirmation.
3. The Setting the priorities and principles for the Regional Speed Management Plan item sought, and was granted, agreement to the principles and priority areas for the development of the regional Speed Management Plan which will incorporate the individual Road Controlling Authorities’ (RCAs) local plans. The principles and priorities agreed and adopted by RTC resolution are:
Principles
3.1. Safe communities and connections for all, applying a whole of system approach
3.2. Greater public and community understanding of safe system principles, and by all those involved in transport network planning and decision-making
3.3. Increased connectivity within and between communities – designed with and for the community
3.4. Network coherence across the region and beyond the region
3.5. Increased opportunity for, and access to safe multi-modal/active transport
3.6. A speed management approach that serves the needs of the community that the network is serving / supporting
3.7. Work with iwi and community leaders as key partners in the development of speed management plans
3.8. Movement and place framework - speed limits will be appropriate for the function, the surrounding environment and design of the road, reflecting that people use them in different ways
Primary priority areas
3.9. Schools/Kura and their immediate walking and cycling catchments
3.10. Marae
Other priority areas
3.11. Community plan areas
3.12. Those streets and roads with currently misaligned speed limits across our urban and rural networks
3.13. Isolated rural communities and beaches in the region
3.14. Town centres
3.15. Locations with the presence of other key community facilities, such as hospitals, parks, rest homes, early childhood education centres, etc
3.16. Road works zones, as applicable and appropriate
3.17. Active transport corridors.
4. The Johanna Birrell deputation presented the Te Whatu Ora HB safe cycling report which highlighted the findings of Ms Birrell’s research project including:
4.1. HB hospital staff survey revealed lack of safe cycling routes as key reason hospital workers don’t cycle to work.
4.2. Hastings based research estimated the health cost-benefit ratio of 1:11 from improvements in cycling infrastructure. Measurable, positive returns on investment in safe cycling infrastructure.
4.3. Several recommendations of the report include establishing visionary policies for reallocating street space for pedestrians and cycling (including mandatory upgrades during street renewals based on traffic conditions and establishing off-road direct cycle highways.
5. The Regional Land Transport Plan investment and delivery update highlighted early, high level inputs to the 2024 Regional Land Transport Plan that the Transport TAG is beginning to develop.
6. The Transport Emissions Reduction Plan update provided an update on the TAG’s work to develop the Transport Emissions Reduction Plan for inclusion within the overall Regional Emissions Reduction Plan; a key outcome of the Climate Action Joint Committee.
7. The Regional Transport Programme update February 2023 item highlighted the programme tracker proposed for future reporting to the RTC. The RTC resolved that it:
7.1. receives and notes the Regional Transport programme update February 2023 staff report and requests that staff prioritise items (on the Regional Transport Programme tracker) for future reports where decisions need to be made.
8. The Regional Road Safety update highlighted that an integrated approach to road safety involves moving from the traditional ‘inform and educate’ model to a model where communities identify their own road safe landscape and local solutions.
9. The Public Transport update highlighted that transport facilities at the Regional Sports Park are being upgraded and learnings from the Hastings My-way trial to date.
10. The Active Transport update highlighted:
10.1. next steps for the active transport workstream for the development of a regional active transport strategy
10.2. HBRC has offered assistance to help establish the Regional Active Transport Committee (RATC) which, once formed, will have advisory representation at RTC and be involved with TAG.
11. The NZTA Regional Relationships Director's February 2023 report noted that Ernst and Young is evaluating/reviewing the State Highway 5 80km/h speed limit introduction, the SH5 programme business case is expected by the end of July 2023, and emergency works are becoming more difficult to resource, particularly with increased number of weather events.
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. Given the items were specifically considered by the Regional Transport Committee (RTC) on 10 February 2023, Council can exercise its discretion and make decisions without consulting directly with the community in accordance with the following recommendations made by the RTC.
The Regional Transport Committee recommends that Hawke’s Bay Regional Council: 1 Receives and notes the Report and recommendations from the Regional Transport Committee. Regional Transport Committee Terms of Reference and member appointments 1.1 Adopts the Terms of Reference, including membership, for the Regional Transport Committee (RTC) as proposed (attached), including incorporation of the amendments agreed by RTC on 10 February 2023. Setting the priorities and principles for the Regional Speed Management Plan 1.2 Notes the following resolutions of the 10 February 2023 Regional Transport Committee, being: 1.3 Adopts the principles and priority areas as proposed; being: Principles 1.3.1 Safe communities and connections for all, applying a whole of system approach 1.3.2 Greater public and community understanding of safe system principles, and by all those involved in transport network planning and decision-making 1.3.3 Increased connectivity within and between communities – designed with and for the community 1.3.4 Network coherence across the region and beyond the region 1.3.5 Increased opportunity for, and access to safe multi-modal/active transport 1.3.6 A speed management approach that serves the needs of the community that the network is serving / supporting 1.3.7 Work with iwi and community leaders as key partners in the development of speed management plans 1.3.8 Movement and place framework - speed limits will be appropriate for the function, the surrounding environment and design of the road, reflecting that people use them in different ways Primary priority areas 1.3.9 Schools/Kura and their immediate walking and cycling catchments 1.3.10 Marae Other priority areas 1.3.11 Community plan areas 1.3.12 Those streets and roads with currently misaligned speed limits across our urban and rural networks 1.3.13 Isolated rural communities and beaches in the region 1.3.14 Town centres 1.3.15 Locations with the presence of other key community facilities, such as hospitals, parks, rest homes, early childhood education centres, etc 1.3.16 Road works zones, as applicable and appropriate 1.3.17 Active transport corridors. Information reports received 2 Notes that the following reports were provided to the Regional Transport Committee: 2.1 Johanna Birrell deputation - Te Whatu Ora HB safe cycling report which will feed into the development of the next Regional Land Transport Plan, particularly safe cycling initiatives 2.2 Regional Land Transport Plan investment and delivery update 2.3 Transport Emissions Reduction Plan update 2.4 Regional Transport Programme update February 2023 2.5 Regional Road Safety update 2.6 Public Transport update 2.7 Active Transport update 2.8 NZTA Regional Relationships Director's February 2023 report.
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Authored by:
Bryce Cullen Transport Strategy & Policy Analyst |
Leeanne Hooper Team Leader Governance |
Approved by:
Katrina Brunton Group Manager Policy & Regulation |
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1⇩ |
amended 2022-25 Regional Transport Committee Terms of Reference for adoption |
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29 March 2023
Subject: HBRIC Ltd and FoodEast 2023-2024 draft Statements of Intent and quarterly update
Reason for Report
1. This item presents two matters relating to HBRIC which, for convenience, have been incorporated into a single paper, being:
1.1. the draft 2023-2024 Statement of Intent (SoI) for each of Hawke’s Bay Regional Investment Company (HBRIC) and FoodEast for the Council’s feedback
1.2. The HBRIC Quarterly update.
Officers’ Recommendations
2. Council staff recommend that councillors consider the content of the draft SoIs provided and agree feedback for the HBRIC board’s consideration to enable the adoption of the FoodEast and HBRIC 2023-24 SoIs within the statutory deadlines.
Background
3. Cyclone Gabrielle resulted in the cancellation of the 27 February HBRIC Board meeting and the 8 March Corporate and Strategic Committee meeting, thereby removing the normal information and decision-making pathways for reporting to Council. These reports are now provided directly to Council in order to stay within statutory timeframes.
HBRIC and FoodEast Statements of Intent
4. Sections 1 through 6 of Schedule 8 of the Local Government Act require the SoIs for both HBRIC and FoodEast to be approved by Council before the commencement of the 2023-24 financial year. Ideally, the draft SoIs would have been presented to the HBRIC Board on 27 February and thereafter to the 8 March C&S with the goal of generating feedback commentary for both entities via recommendations through to Council’s 29 March meeting.
5. Both HBRIC and FoodEast are then required to confirm their final draft SoIs before 1 May so that they can be approved by Council prior to the end of June.
6. Extensions to these timelines can be sought for up to one month. However, for the reasons set out below, we are recommending that the attached drafts be presented to Council for feedback at this month’s meeting.
7. Note that the LG Act makes provision for a CCO to request for a SoI to be modified at any time if it gives notice to HBRC of the proposed changes and then considers HBRC’s comments within one month. Equally, HBRC can, after consultation with a CCO Board, require modifications to its SoI.
HBRIC Statement of Intent
8. Matters relating to HBRIC’s strategic direction are currently connected with a range of decisions that need to be made in respect of HBRC’s strategic and operational response to Cyclone Gabrielle. At the same time, Council has initiated a review of its overall investment strategy, in part to understand how it can best enable its investment company to meet its long-term investment performance objectives.
9. In light of this, we have drafted an updated SoI with only minimal recommended changes from the 2022-23 SoI. In doing so we fully anticipate, in the months ahead, Council will have resolved many of these uncertainties and the HBRIC SoI can either formally be modified (as provided for by the legislation) or updated guidance can be provided to HBRIC’s directors via a Letter of Expectation for the remainder of the financial year.
10. Accordingly, we ask Councillors to provide their feedback on the attached marked-up draft 23-24 HBRIC SoI to the meeting and to Council on the 29th.
FoodEast Statement of Intent
11. FoodEast’s Directors have provided the attached draft 23-24 SoI for feedback with proposed changes highlighted in the documents.
12. The key changes reflect the impact on budgets and timelines of the construction delays that were necessitated by the re-scoping and re-design work brought about by construction cost inflation and constraints.
13. Accordingly, we ask Councillors to provide their feedback on the attached marked-up draft 23-24 FoodEast SoI to the meeting and to Council on the 29th.
HBRIC Quarterly update
Financial Reporting
14. HBRIC’s YTD Financial Statements as at 31 December 2022 are attached to this report.
15. Key Items to note:
15.1. Statement of Financial Performance – YTD Surplus of $5.3 million (excluding fair value movements through other comprehensive income)
15.2. Statement of Financial Performance – $5.17m million of dividend revenue received from Napier Port Holdings Limited (NPHL) in the year
15.3. Statement of Financial Performance – YTD $272k Interest Income
15.4. Statement of Financial Position – an increase in net assets of $6.8 million YTD due to the drop in NPHL share price and losses from managed funds.
15.5. NPHL share price had increased 2.18% YTD from $2.75 to $2.81.
15.6. Net Assets of $376 million as at 31 December 2022.
Managed Funds
16. The funds remain under management in compliance with Council’s SIPO.
17. The value of managed funds with HBRIC after divestments as at 31 December 2022 amounted to $43.3 million, a movement of approximately +$89k (+0.2%) year to date.
FoodEast
18. The following summary is drawn from FoodEast’s H1 report to Limited Partners.
19. Activities undertaken during the second quarter ending 31 December 2022.
20. The primary activity during the past quarter has been the awarding of tenders for earthworks and Building B, along with final cost estimates for Building A and associated siteworks. All building work is scheduled to be completed in the current calendar year.
21. A strategy workshop was held on 28 October 2022, facilitated by David Todd, with representatives from Hastings District Council, Hawke’s Bay Regional Council, Hawkes Bay Regional Investment Company, Ministry of Business, Innovation and Employment, The Food Innovation Network and the Waikato Innovation Park. Key action points arising from the meeting were to:
21.1. Develop a position description for an Executive / CEO role and seek and appoint a suitable candidate (in progress)
21.2. Recruit a skill-based board for each of the construction, transition, and operational phases (target April 2023)
22. In relation to the last item, to date HBRIC has currently only appointed one director out of a total of its four possible appointees. HBRIC has resolved to commence a recruitment process in respect of those appointments and has been consulting with both the FoodEast Board and the other Limited Partners about the skills and attributes for those candidates.
23. Over the remainder of the 2023 calendar year, the construction of Building B is scheduled to start in February 2023, with construction on Building A scheduled to start in March 2023. Completion of both buildings is scheduled for the last quarter of 2023. This timing is similar to that signalled in the last quarterly report.
Cyclone Gabrielle Update
24. FoodEast directors have undertaken an initial inspection of the construction site, and engaged with the constructor. At this early stage, other than some flooding of trenching and scouring of some of the compacted building platform, the site has escaped any major damage. There may be a minor cost impact to recompact the building platform.
25. While it is not yet known how the aftermath of the cyclone will impact the availability of resources, materials and labour, the constructor has expressed confidence and a willingness to continue its work. There may be a minor timing delay in getting pricing and contract in place for Building A because contractors are attending to urgent cyclone-related work.
Napier Port
26. On 12 January Napier Port released positive trade volumes for the first quarter ended 31 December 2022, with a 12.8% container volume increase on the same period in the prior year. Cruise vessel calls during the first quarter were 20 compared to nil in the same period in the prior year. Assuming no further booking cancellations, Napier Port anticipated actual calls plus remaining bookings totalling 81 cruise vessels for the current cruise season, down from the 87 bookings reported earlier.
27. On 17 March, Napier Port withdrew its earning guidance due to continuing post-cyclone Gabrielle uncertainty regarding trade volumes and the extent of any business interruption insurance mitigation. Napier Port had resumed full container and bulk cargo operations promptly following the cyclone, having suffered only minor damage. Cruise ships had returned and the berth windows for container shipping, previously disrupted during the pandemic, has resumed.
28. Napier Port reported that, prior to Cyclone Gabrielle, the result from operating activities was tracking towards the top end of its previously reported guidance range, and still expected to report an unaudited result from operating activities in the half year to 31 March 2023 in excess of that reported in the corresponding period last year.
Decision Making Process
29. 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:
29.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.
29.2. The use of the special consultative procedure is not prescribed by legislation, nor is the decision significant under the criteria contained in Council’s adopted Significance and Engagement Policy.
29.3. Given the nature and significance of the issue to be considered and decided, Council can exercise its discretion and make the relevant decisions without consulting with the community.
That Hawke’s Bay Regional Council:
1. Receives and considers the HBRIC Ltd and FoodEast 2023-2024 draft Statements of Intent and Quarterly update 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. Recommends that the HBRIC Board considers the following agreed feedback for incorporation in the final Statements of Intent:
3.1. … …
3.2. … …
Authored by:
Jess Bennett Treasury & Investments Accountant |
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Approved by:
Tom Skerman HBRIC Commercial Manager |
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FoodEast Statement of Intent 2023-24 |
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Under Separate Cover |
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Draft HBRIC Statement of Intent 2023-24 |
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Under Separate Cover |
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3⇩ |
HBRIC Quarterly update financials |
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29 March 2023
Subject: Significant activities in the organisation’s transition to recovery from Cyclone Gabrielle
Reason for Report
1. The following commentary is for councillors’ information to highlight significant areas of Council activity particularly in response to Cyclone Gabrielle.
Significant activities by group
Policy and Regulation Group |
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Project /Activity description |
Significant upcoming milestone(s) |
Team or Section |
Large, high profile and/or complex resource consent applications |
82. The decision to decline the applications for Ruataniwha Tranche 2 groundwater has been received and is now open to appeal. 83. An appeal has been lodged with the Environment Court against the decision granting individual wastewater treatment consents for 41 lots at Tangoio. |
Consents |
Plan Change 9 (TANK plan) appeals |
84. HBRC submitted a memo to the Environment Court on 23 January suggesting grouping of appeal points/topics and requesting the Court schedule a pre-hearing conference after 17 February. 85. Mediation for the 17 appeals to the Environment Court is expected to commence in the first half of 2023. |
Policy |
Plan Change 7 (Outstanding waterbodies) appeals |
86. Four appeals were lodged with the Environment Court and parties asked the Environment Court to set a hearing date in mid 2023 for those matters where agreements could not be achieved. 87. A Minute has been received from the Environment Court setting out the evidence exchange timetable with Hearings scheduled on or after 28 August, noting that this is subject to change and final confirmation. |
Policy |
Napier-Hastings Future Development Strategy (FDS) |
88. HBRC, HDC and NCC adopted the Terms of Reference as proposed and agreed to appoint the Napier-Hastings Future Development Strategy Joint Committee and appointed their respective members. 89. Invitations were sent to Mana Ahuriri Trust, Maungaharuru Tangitū Trust and Heretaunga Tamatea Settlement Trust to participate in FDS Joint Committee and appoint respective members. 90. Preliminary hui have been held with Mana Ahuriri and Maungharuru Tangitu Trust. 91. Joint Committee meeting dates have been scheduled for 27 April, 3 August, 26 October and 12 December 2023, with further meetings to conduct hearings in April/May 2024. These will function alongside council workshops as relevant. |
Policy |
Executive Advisory Group |
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Project /Activity description |
Significant upcoming milestone(s) |
Team or Section |
Climate Action |
92. TOR adopted and appointments made by HBRC, Hastings, Napier and Wairoa councils. 93. First meeting now scheduled 22 May 2023. |
Climate Action Ambassador |
Governance |
94. New Governance Advisor appointed, starts 27 March 95. Senior Governance Advisory and Team Leader alternating on GECC Logistics roster. |
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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.
That the Hawke’s Bay Regional Council receives and notes the Significant activities in the organisation’s transition to recovery from Cyclone Gabrielle staff report.
Authored by:
Mell Anderson Project Manager Hill Country Erosion Scheme |
Chris Comber Chief Financial Officer |
Desiree Cull Strategy & Governance Manager |
Peter Davis Manager Environmental Information |
Harry Donnelly Project Engineer |
James Feary Regional Asset Manager |
Dan Fake Freshwater Ecologist |
Craig Goodier Principal Engineer |
Simon Harper Team Leader Hydrology & Groundwater Science |
Rob Hogan Manager Compliance |
Gavin Ide Principal Advisor Strategic Planning |
Mike Johansson Director Communications & Engagement |
Jon Kingsford Project Manager |
Dr Kathleen Kozyniak Team Leader Marine Air & Land Science |
Anna Madarasz-Smith Manager Science |
Pippa Mckelvie-Sebileau Climate Action Ambassador |
Malcolm Miller Manager Consents |
Ken Mitchell Asset Management Engineer |
Jolene Townshend Manager Catchment Operations |
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 |
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29 March 2023
Subject: Confirmation of Public Excluded Minutes
That Hawke’s Bay Regional Council excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 10 with the general subject of the item to be considered while the public is excluded. The reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are:
General subject of the item to be considered |
Reason for passing this resolution |
Grounds under section 48(1) for the passing of the resolution |
HBRIC Ltd Independent Director appointments |
s7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons |
The Council is specified, in the First Schedule to this Act, as a body to which the Act applies. |
Potential Sale of Wellington Leasehold Property |
s7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
The Council is specified, in the First Schedule to this Act, as a body to which the Act applies. |
Authored by:
Leeanne Hooper Team Leader Governance |
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Approved by:
Desiree Cull Strategy & Governance Manager |
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29 March 2023
Subject: Investment Strategy Review outcomes
That Hawke’s Bay Regional Council excludes the public from this section of the meeting, being Agenda Item 11 Investment Strategy Review outcomes with the general subject of the item to be considered while the public is excluded. The reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are:
General subject of the item to be considered |
Reason for passing this resolution |
Grounds under section 48(1) for the passing of the resolution |
Investment Strategy review outcomes |
s7(2)(b)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. |
The Council is specified, in the First Schedule to this Act, as a body to which the Act applies. |
Authored & Approved by:
Susie Young Group Manager Corporate Services |
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