Agenda of Regional Council Meeting - Wednesday, 26 July 2023

Hawke’s Bay Regional Council

26 July 2023

Subject: Annual Plan 2023-2024 for adoption

Reason for report

1. This item seeks a resolution of Council to adopt the Annual Plan 2023-2024. Council needs to adopt the Annual Plan in accordance with the Local Government Act 2002 before it can set the rates for the 2023-2024 financial year.

Officers’ recommendation

2. Staff recommend that Council adopts the Annual Plan 2023-2024 as presented.

Background

3. Annual plans are prepared and adopted under section 95 of the Local Government Act 2002 (LGA). Council is required to produce an annual plan in the years between long term plans. Long term plans are reviewed and adopted every three years. The Annual Plan 2023-2024 is Year 3 of the Long Term Plan 2021-2031 (LTP).

4. An annual plan provides an opportunity for small adjustments or variances from the long term plan to reflect changes since the plan was adopted.

5. The Severe Weather Emergency Recovery Legislation Act 2023 extended the Annual Plan adoption to no later than 30 September 2023.

Annual Plan 2023-2024 approach

6. Staff had to revisit our Annual Plan 2023-2024 budget and work plans following Cyclone Gabrielle. The cyclone has had a significant impact on our organisation, with substantial unplanned costs in our response and recovery work. Council has also taken on additional responsibilities across a wide geographical area.

Challenges and financial pressures

7. Councillors have been involved in several workshops and discussions around the challenges and financial pressures the organisation is facing. These include:

Unplanned cyclone costs

7.1. As of mid-July 2023, we have $92 million in unplanned costs for response and subsequent recovery work because of the cyclone.

7.2. This includes $42 million for waste collection (costs for this are covered by the Government’s Severe Weather Debris Funding Programme), $36 million on emergency repairs and rebuilding flood infrastructure, and $8 million for Civil Defence’s work.

7.3. We anticipate we will face further substantial unplanned costs during the upcoming year. We are working with the Government and other agencies to cover as much of these costs as possible.

Rising external costs

7.4. The Regional Council has been impacted as others have with increased insurance premiums, rising interest rates, and inflation on both labour and supplies following the disruptions of Covid, the war in Ukraine and other global, national, and regional events over the last few years. These increases have been much higher than anticipated in our Long Term Plan 2021-2031.

Uncertainty

7.5. We are expecting funding shortfalls between what we can claim back for cyclone work through the Government, NEMA (National Emergency Management Agency), and our insurance. We will continue to explore all other possible funding avenues.

7.6. We do not know what recommendations will come out of planned reviews and how any advised work would be funded.

7.7. Uncertainty also exists around the physical works needed and how we can fund required mitigations to support Category 2-designated properties.

Our response

8. Staff and Councillors had a hard look at costs and our previously planned programmes. We cut costs where we could and have used all financial levers including borrowing for operating expenditure. Council has the financial capacity to fund the operating revenue shortfall using borrowing, and to do so is appropriate given the long-term benefits of the expenditure funded.

9. Council also had to make some tough decisions in prioritising the work we undertake in 2023-2024.

10. We wanted to strike a balance between keeping rates contained where we could, and resourcing for unplanned cyclone work.

11. This tightening of belts means Council has been able to substantially reduce the forecast average rate increase from 14.5% in Year 3 of the LTP, down to 6% (excluding the Regional Cyclone Recovery charge). The Annual Plan budget for 2023-2024 focuses on Council’s core business and supporting the region’s recovery.

12. We are also introducing a Regional Cyclone Recovery charge to fund the additional costs being incurred because of the cyclone that we don’t expect to be covered by other sources. This will consist of a fixed charge of $55 per SUIP (separately used or inhabited part of a rating unit) and a separate variable line item on rates based on land value.

13. Key work we are scaling back or deferring include:

13.1. Deferring construction expenditure for Ahuriri and Wairoa regional parks to the following financial year.

13.2. Deferring extension of the Ngaruroro Explorer cycleway to later in 2023.

13.3. Reducing maintenance of flood protection and drainage schemes such as beach raking, drain excavation and spraying due to work already done post-cyclone.

13.4. Reducing funding for one year only on Priority Ecosystem sites with the priority being to repair existing sites, such as fencing, to secure investment already made versus restoring new sites.

13.5. Reducing funding in pest animal and pest plant activities and research while staff are redeployed to rural recovery.

13.6. Reducing catchment delivery research and our environmental enhancement programme.

13.7. Deferring the Napier pilot of MyWay Hawke’s Bay (on-demand public transport service) until further central government funding can be secured.

13.8. Applying a cap of $5 million on the total amount we lend to eligible ratepayers for our Sustainable Homes scheme.

13.9. Reducing some ICT service software development.

13.10. Reducing staff training budget for the short term and not fill some vacancies.

13.11. Taking up general rates smoothing loan funding not drawn in years one and two of our Long Term Plan 2021-2031.

13.12. Extending internal loan repayments from 10 years to 20 years.

Community engagement

14. Staff undertook a feedback process with our community for a two-week period from 16 June to 2 July 2023.

15. We were not required to do this however we wanted to provide an update and inform the community of the difficult decisions faced and how we are working differently following the cyclone. We also wanted to provide an opportunity for people to let us know what they think and to get an understanding of what is important to them in the region’s long-term recovery.

16. We received 87 submissions from all over Te Matau-a-Māui. There was strong input from our horse-riding community for more horse-riding trails, better quality and safer trails, and better access to them. People needing to feel safe was important to submitters. Build back, and better, and helping people that have been impacted by Cyclone Gabrielle were also important to submitters.

17. Councillors considered and deliberated on submissions at an extraordinary meeting on 19 July 2023. They noted the issues raised and were happy to hear many Council initiatives were already underway addressing some concerns. They also noted that some, such as the desire for more horse-riding trails, would be considered as part of our next Long Term Plan.

18. While it is common practice for this council to provide the opportunity for submitters to speak to their submission, given the circumstances and temporary severe weather legislative changes to the Local Government Act, hearings were not offered for this Annual Plan engagement.

2023-2024 Annual Plan Budget

19. The impact of the changes included in the Annual Plan 2023-2024 budgets has resulted in:

19.1. an increase in the operating expenditure included in the year 3 of the LTP of $103 million because of the additional costs associated with the recovery from Cyclone Gabrielle.

19.2. an increase in operating revenue of $82.8 million due to anticipated funds from insurance, NEMA, and government grants.

19.3. Council will need to borrow more than anticipated in year 3 of the LTP, however we will remain with the borrowing limits agreed.

20. Council is managing increasing cost pressures, including higher inflation, interest rates, and a competitive employment and constrained contracting market. Council management will continue to actively work with budget holders during the year to ensure levels of service outlined in the LTP are delivered.

Financial strategy - setting an unbalanced budget for 2023-24

21. The Annual Plan 2023-2024 budget includes $19.7 million additional borrowing for operating expenditure, not set out in year 3 of the Long Term Plan 2021-2031. This additional borrowing means the Council does not have a balanced budget for the 2023-2024 financial year, with operating expenditure exceeding operating revenue by $21.5 million.

22. The additional borrowing comes from three main sources:

22.1. $13.5 million additional loan funding (borrowing) to fund the shortfall in the cost of repairs to flood protection assets damaged during Cyclone Gabrielle, not covered by insurance or government grants. This expenditure is currently classified as an operating cost, pending a final decision on the financial treatment of this work.

22.2. $3.6 million additional general rate offset loan funding, which was planned but not drawn in years 1 and 2 of our LTP.

22.3. $2.2 million of planned loan funding for ICT development and environmental data models. In the LTP and Annual Plan 2022-2023, these costs were treated as capital, but are now classified as operating due to a change in accounting standards.

23. The use of loan funding to fund operating expenditure is inconsistent with Council’s Revenue & Financing Policy, which does not currently identify borrowing as a source of funding for operating expenditure, other than for intergenerational environmental projects. Council therefore needs to record the fact that its decision to borrow is inconsistent with the existing policy as part of the decision-making process.

24. This inconsistency is due to Council’s decision to adopt an unbalanced budget, given the reasons for the additional borrowing identified above. Council has the financial capacity to fund the operating revenue shortfall using borrowing, and to do so is appropriate given the long-term benefits of the expenditure funded.

25. Section 80 of the LGA 2002 requires that where a decision of Council is significantly inconsistent with any policy, the Council must clearly identify:

25.1. the inconsistency

25.2. the reasons for the inconsistency

25.3. any intention of the local authority to amend the policy or plan to accommodate the decision.

26. Other than the balanced budget benchmark, all other benchmarks are met.

Fees and charges

27. For each annual plan, fees and charges are updated to meet the required revenue budget for the new year. The fees and charges for 2023-2024 are contained in a single schedule separate to the Annual Plan document but referred to within. This is made available on the HBRC website. The draft Fees and Charges Schedule 2023-2024 is attached to this paper.

28. The policy for fees and charges is unchanged from what was set in the Long Term Plan 2021-2031.

29. The majority of fees and charges in the schedule are either unchanged from 2022-2023, or have increased by 4% in line with increased staff costs, with the exception of the following:

29.1. Annual water meter admin charges (table 2.1 of the schedule); the fees have been unchanged for two years, but now need to increase to stay in line with the total costs of the water information services activity, which is 100% funded from these fees. The average fee increase across consent holders is 11%.

29.2. Annual freshwater science charges (tables 3.1 and 3.2 of the schedule); there is a slight increase of ~1.8% for discharge to land/water consents, and ~12% for watertake consents, as per modelling of charges required to meet the 2023-2024 revenue target (35% of water science costs). The increased costs of water science activities are mostly due to salary inflation and increased interest expenses.

29.3. Consents/compliance staff hourly charge out rates (table 9 of the schedule); consents/compliance admin rate increased from $95 to $113, and compliance monitoring rate increased from $130 to $140 as modelled to achieve resource consent application and compliance monitoring income targets per budget, and benchmarked against other Regional Council admin and compliance rates.

Significance and Engagement Policy Assessment

30. Staff assessed the changes from what was proposed for year 3 of the Long Term Plan 2021-2031 and advised Council there were no material rating or levels of service impacts that would trigger the need to consult. An engagement process was undertaken to provide an update to the community that included information on the rate increase and the introduction of a Regional Cyclone Recovery Charge. The engagement process also sought feedback on what was important to people in the region’s recovery from Cyclone Gabrielle and on the focus of the Annual Plan 2023-2024.

Climate change considerations

31. Climate change is a focus in all Council’s planning and decision-making. The focus of this Annual Plan of ‘Supporting the region’s recovery’ acknowledges climate change is increasing the likelihood and severity of extreme weather events such as Cyclone Gabrielle.

Decision-making Process

32. 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:

32.1. The decision does not significantly alter the service provision or affect a strategic asset.

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

32.3. The persons affected by this decision are ratepayers in the Hawke’s Bay region.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Annual Plan 2023-2024 for adoption staff report.

2. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

3. Adopts the Annual Plan 2023-2024 in accordance with Section 95 of the Local Government Act 2002.

4. Delegates to the Acting Group Manager Corporate Services authority to make any required minor amendments or edits to the Annual Plan 2023-2024 prior to publishing.

Authored by:

Amy Allan

Senior Business Partner

Sarah Bell

Team Leader Strategy and Performance

Chris Comber

Chief Financial Officer

Mandy Sharpe

Strategy & Corporate Planner

Approved by:

Desiree Cull

Strategy and Governance Manager

Andrew Siddles

Acting Group Manager Corporate Services

Attachment/s

1 ⇨

HBRC Annual Plan 2023-2024 for adoption

HBRC Schedule of fees and charges 2023-2024

Under Separate Cover- electronic only

Hawke’s Bay Regional Council

26 July 2023

Subject: Setting of the Rates for 2023-2024 Financial Year

Reason for Report

1. This item is to enable Council to collect its budgeted rates revenue for the 2023-2024 financial year. It follows the legal process, under the Local Government (Rating) Act 2002, for Council to set the rates for the period 1 July 2023 to 30 June 2024.

Executive Summary

2. In the previous item, Council has adopted the 2023-2024 Annual Plan.

3. The next step after adopting the Annual Plan (which sets the budget for the year), is to set the rates to enable Council to collect rates for the year. The budget must be set before the rates are set, which explains the order of items on the agenda.

4. After Council has passed the resolutions setting the rates, staff can start preparing to send out rate assessments to all ratepayers. The 2023-2024 rates will be due for payment on 20 September 2023.

5. This Setting of the Rates paper will have a legal review ahead of the Council meeting on Wednesday 26 July.

Background

6. The Local Government (Rating) Act 2002, Section 23 sets out the procedure for setting rates, with the main considerations being that rates must:

6.1. be set by a resolution of the local authority

6.2. relate to a financial year

6.3. be set in accordance with relevant provisions of the local authority’s Long-term Plan and the Funding Impact Statement for the relevant financial year.

7. The Local Government (Rating) Act 2002, sections 13 and 14 (General Rate) section 15 (Uniform Annual General Charge) and sections 16, 17 and 18 (Targeted Rates) explains how each such rate is to be set.

8. Council has approved the 2023-2024 level of rates to be collected, along with the calculation factors in the Funding Impact Statement, as included in the 2023-2024 Annual Plan which has been adopted at this meeting.

Decision Making Process

9. Council is required to make a decision to set rates in accordance with the requirements of the Local Government (Rating) Act 2002 (the Act) including Section 23.

Recommendations

That Hawke’s Bay Regional Council:

1. Confirms that the decisions to be made on the setting and assessing of rates cover information in the Funding Impact Statement for the 2023-2024 year as included in the 2023-2024 Annual Plan as required by Section 95 of the Local Government Act 2002.

2. Sets the following rates for the 2023-2024 financial year under the Local Government (Rating) Act 2002, on rating units in the region for the financial year commencing on 1 July 2023 and ending on 30 June 2024. These rates are set in accordance with the relevant provisions of the 2023-2024 Annual Plan’s Funding Impact Statement and are inclusive of GST.

2.1. A general rate is set under sections 13, and 131 of the Local Government (Rating) Act 2002 on an estimate of projected land value as per the following table.

2.2. A uniform annual general charge is set at $65.89 per separately used or inhabited part of a rating unit (SUIP) under section 15(1)(b) of the Local Government (Rating) Act 2002 as per the following table.

2.3. The following differential targeted rates, as described in the Funding Impact Statement, are set under sections 16,17 & 18 of the Local Government (Rating) Act 2002 as per the tables following.

2.3.1. Subsidised Public Transport – Based on estimate of projected land value and location (urban areas of Napier, Hastings, Havelock North and Clive but excluding Bay View)

2.3.2. Heretaunga Plains Flood Control Scheme - Rates set on an estimate of projected capital value based on the location of each property.

2.3.3. Upper Tukituki Flood Control Scheme - Rates set on land value based on the location of each property.

2.3.4. Central & Southern Area Rivers & Streams – based on location and capital value

2.3.5. Wairoa River and Streams Scheme – based on capital value

2.3.6. Various Streams and Drainage Schemes

2.3.6.1. Napier, Meeanee & Puketapu – land value based on land use

2.3.6.2. Karamu & Tributaries – land value based on land use

2.3.6.3. Raupare Twyford – based on location and land value

2.3.6.4. Raupare Enhancement – based on location and land area

2.3.6.5. Haumoana Te Awanga – based on location and land value

2.3.6.6. Tūtaekurī-Waimate & Moteo – based on location and land value

2.3.6.7. Pakowhai Brookfields – based on location and land value

2.3.6.8. Brookfields & Awatoto – land value based on land use

2.3.6.9. Clive & Muddy Creek – land value based on land use

2.3.6.10. Puninga – based on location and land value

2.3.6.11. Upper Makara – Area based on location

2.3.6.12. Poukawa Drainage – land value based on location

2.3.6.13. Paeroa Drainage – Area based on location

2.3.6.14. Ohuia, Whakaki – Area based on location

2.3.6.15. Opoho Drainage – Fixed amount based on location

2.3.6.16. Kopuawhara Stream – Area based on location

2.3.6.17. Te Ngarue Stream – Area based on location

2.3.6.18. Esk River – Area based on location

2.3.6.19. Whirinaki Stream – Area based on location

2.3.6.20. Pōrangahau Flood Control – based on location and land value

2.3.6.21. Maraetotara Flood Control – based on location and land value

2.3.7. Animal Pest Strategy – based on area (greater than 4.0469 hectares), productivity and land use

2.3.8. Forest Pest Strategy – based on area (greater than 4.0469 hectares), productivity and land use

2.3.9. Sustainable Land Management – based on land area (greater than 4.0469 hectares), productivity and location

2.3.10. Plant Pest Strategy – based on area (greater than 4.0469 hectares) and productivity

2.3.11. Healthy Homes/Clean Heat – based on location (Napier and Hastings air sheds) and equalised land value

2.3.12. Sustainable Homes – Financial Assistance (includes Clean Heat Assistance) Based on value of service provided to specific properties as requested

2.3.13. Economic Development - Commercial and industrial properties based on capital value

2.3.14. Regional Cyclone Recovery (Variable) - All properties based on land value

2.4. The following uniform targeted rates, as described in the Funding Impact Statement, are set under sections 16 and 17 of the Local Government (Rating) Act 2002 as per the following tables.

2.4.1. Various Streams and Drainage Schemes

2.4.1.1. Karamu Drainage – Fixed amount per separately used or inhabited part based on location

2.4.1.2. Karamu Enhancement – Fixed amount per separately used or inhabited part based on location

2.4.1.3. Kairakau Community – Fixed amount per separately used or inhabited part of a property based on location

2.4.2. Coastal Hazards - Fixed amount per separately used or inhabited part based on location

2.4.3. Economic Development: Residential and rural properties as a fixed amount per separately used or inhabited part of a rating unit

2.4.4. CDEM- Emergency Management - Fixed amount per separately used or inhabited part based on location

2.4.5. Regional Cyclone Recovery Rate - All properties as a fixed amount per separately used or inhabited part of a rating unit

3. Sets the due date for payment of rates set for the financial year commencing 1 July 2023 and ending on 30 June 2024 as 20 September 2023.

4. Resolves, in accordance with sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, that a penalty of 10% be added to the amount of rates for the 2023-2024 financial year that remain unpaid after the due date stated above. The penalty will be added on 21 September 2023.

5. Resolves, in accordance with sections 57 and 58(1)(b) of the Local Government (Rating) Act 2002, that a penalty of 10% be added to the amount of rates from previous financial years remaining unpaid on 2 August 2023. The penalty will be added on 2 August 2023.

Authored by:

Vanessa Fauth

Finance Manager

Chris Comber

Chief Financial Officer

Amy Allan

Senior Business Partner

Sarah Bell

Team Leader Strategy and Performance

Chelsea Spencer

Senior Group Accountant

Approved by:

Andrew Siddles

Acting Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

Hawke’s Bay Regional Council

26 July 2023

Subject: Regional Planning and Māori Committee appointees' Remuneration Review

Reason for Report

1. This item provides the means for Council to resolve the remuneration to be paid to Tāngata Whenua representatives (TWR) on the Regional Planning Committee (RPC) and the Māori Committee.

Officers’ Recommendation

2. Council officers consider that the remuneration reviews undertaken by Strategic Pay are satisfactory and therefore recommend that Council sets the remuneration for RPC TWR and Māori Committee TWR in accordance with the recommendations from the relevant review. Staff consider the midpoint of the ranges recommended are appropriate.

Executive Summary

3. Strategic Pay was selected by the RPC and Māori Committee to undertake separate remuneration reviews with these commencing in September 2022. The reviews have been completed and the findings provided to Council to enable Council to resolve remuneration for both RPC TWR and Māori Committee for the remainder of the current triennium, with effect from 1 July 2023.

Background

4. The current RPC Terms of Reference (adopted in 2014) states that the level of remuneration shall be determined promptly following each triennial election by independent persons (Appointee) appointed by RPC Co-chairs.

5. RPC Tāngata Whenua representatives’ remuneration was last reviewed in 2019 by Strategic Pay, and they were again selected as the single Appointee to carry out the review.

6. The last significant review of Māori Committee TWR remuneration was carried out in February 2018. This triennium, it was considered appropriate that both reviews be carried out at the same time.

7. The separate 2023 Strategic Pay review reports for the RPC and the Māori Committee are attached. In summary, Strategic Pay recommends that:

7.1. RPC Tāngata Whenua representatives receive an increase in their annual salary (from $13,750) to between $15,000 and $17,000 p.a. Additional meeting attendance fees remain at $452.

7.2. RPC TW Co-chair to receive an increase in salary (from $27,500) to between $30,000 and $34,000 p.a. and Deputy Co-chair to receive an increase in salary (from $20,625) to somewhere between $22,500 and $25,500 p.a.

7.3. The Māori Committee Tāngata Whenua meeting attendance fee remains at $452 per meeting.

7.4. Māori Committee Co-chairs to each receive an increase in salary (from $13,750) to between $15,000 and $17,000 p.a. The actual amount to be dependent upon what remuneration is approved for the RPC TWR Co-chair as the Māori Committee Co-chairs share that per annum salary.

Consultation

8. The RPC and Māori Committee have been involved in the review process; both selecting Strategic Pay to undertake the reviews.

9. The remuneration review was considered by the Māori Committee at its 7 September 2022 meeting where the Terms of Reference for the review was approved and Strategic Pay was appointed as the reviewer. Strategic Pay attended a Māori Committee workshop on 8 February and conducted an interview with Co-Chair Mike Paku on the 24 April to understand the scope and complexities of the role of TWR on the Māori Committee.

10. At its meeting on 14 September 2022, the RPC resolved to appoint Strategic Pay as the sole appointee to undertake the independent review of remuneration for its Tāngata Whenua members and delegated authority to three of its TWR members to finalise the process and criteria (Terms of Reference) for the review. The TOR were workshopped and confirmed by this sub-group of RPC TWR in January/February 2023.

11. Cyclone Gabrielle response delayed further consideration of this matter until 17 May 2023 when RPC TWR met with Strategic Pay to discuss the scope and complexities of the role of TWR on the Regional Planning Committee.

12. In early June 2023 Strategic Pay provided a draft of the RPC TW review which was circulated to the authorised sub-group of three RPC members and the Co-Chair on 8 June for comment. The initial response timeframe of one week was extended until 7 July 2023 to provide more response time.

13. Likewise, in early June 2023 Strategic Pay provided a draft of the Māori Committee TWR remuneration review which was circulated on 8 June 2023 for comment to both Co-Chairs and the NKII Board representative. The initial response timeframe of one week was extended until 7 July 2023 to provide more response time.

Financial and Resource Implications

14. If accepted, the recommendations will have a minor impact on Council’s budgeted costs. The table below sets out the impact based on an assumption that all recommended salary increases are approved at the midpoint of the range recommended by Strategic Pay - RPC Co-chair at $32,000 p.a., Deputy Co-chair at $24,000p.a., Tāngata Whenua members $16,000p.a.

RPC Fees	Current annual cost per annum	Number of members	Assumption	Number of members	Assumed total per annum
Co-chair	$27,500	1	$32,000	1	$32,000
Deputy Co-chair	$20,625	1	$24,000	1	$24,000
Committee member	$13,750	7	$16,000	7	$112,000
Total	$144,375				$168,000 p.a.

Māori Committee Fees	Current annual costs per annum	Assumption	Assumed total per annum
Co-chairs combined	$27,500	$32,000	$32,000
Total	$50,100		$54,600

15. On this assumed basis, total RPC TWR remuneration costs would rise by $23,625 p.a.

16. Māori Committee TWR meeting attendance costs are assumed to remain constant as the meeting fee is not changing.

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

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

17.3. The persons affected by this decision are representatives appointed by the PSGEs and Taiwhenua to the Regional Planning and Māori Committees.

17.4. Given the nature and significance of the issue to be considered and decided, Council can exercise its discretion and make this decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Regional Planning and Māori Committee appointees' remuneration review 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. Sets the remuneration for Tāngata Whenua representatives appointed to the Regional Planning Committee within the range recommended by Strategic Pay’s independent review with effect from 1 July 2023 of:

3.1. $15,000 - $17,000 per annum for a tāngata whenua committee member

3.2. $22,500 - $25,500 per annum for the Regional Planning Committee Deputy Co-Chair

3.3. $30,000 - $34,000 per annum for the Regional Planning Committee Co-Chair.

4. Sets the remuneration for tāngata whenua representatives appointed to the Māori Committee in accordance with the recommendations in Strategic Pay’s independent review with effect from 1 July 2023 of:

4.1. $452 per meeting attended for a tāngata whenua committee member

4.2. within the range of $15,000 - $17,000 per annum for each of the Māori Committee Co-chairs.

5. Travel reimbursement will be made to RPC and Māori Committee members upon submission of an approved Travel Claim Form or invoice, at the same rates paid to councillors in accordance with the Remuneration Authority 2023-2024 Determination, being as follows.

Allowance	1 July 2023 – 30 June 2024
Mileage Allowance – petrol or diesel	$0.95 per km (first 14,000 km)
Mileage Allowance - Hybrid	$0.95 per km (first 14,000 km)
Mileage Allowance – Electric Vehicle	$0.95 per km (first 14,000 km)
Mileage Allowance – E-bike	$0.28 per km (first 14,000 km)
Mileage Allowance (after first 14,000 km)	$0.34/km petrol/diesel $0.20/km hybrid $0.11/km electric including e-bike

Authored by:

Peter Martin

Senior Governance Advisor

Desiree Cull

Strategy and Governance Manager

Approved by:

Pieri Munro

Te Pou Whakarae

Attachment/s

1 ⇩	Strategic Pay RPC tangata whenua fees review report July 2023
2 ⇩	Strategic Pay Maori Committee tangata whenua fees review report July 2023

Hawke’s Bay Regional Council

26 July 2023

Subject: Strategic projects report to 30 June 2023

Reason for Report

1. This agenda item presents the Project Management Office’s (PMO) Strategic projects report for June 2023 for information.

2. HBRC’s key strategic projects are tracked by the Project Management Office (PMO) and reported monthly throughout their lifecycle. These projects were selected because of their significance in terms of investment, risks, benefits, and interdependencies.

3. This report is backward looking and reports on activities in the prior month specifically. In line with good project management discipline, particular emphasis is given to scheduling, budgeting and risk management.

Key

Project performance indicators (RAG): n= Off Tracku= At Risk l= On Track l= Not available

Status Change over last 6 months: how the status has tracked between November 2022 and May 2023. *Risk status is inherent (e.g. prior to mitigations and controls implemented) vs residual.

Project/Programme Title	Schedule	Risk*	Budget	Status Change over last 6 months
1. HBRC Recovery Programme (Monthly reporting)	u	u	n		Apr	May
				Sch	l	l
				Risk	l	l
				Bud	l	l
Project summary: The Recovery Programme coordinates and tracks recovery planning and community communication and engagement activities across HBRC. This connects and aligns this work under the Hawke’s Bay Regional Recovery framework to support regional coordination of recovery. Under this framework HBRC will be the lead agency for the Environmental Resilience pou, the supporting agency for the Primary Sector pou, and will input into relevant workstreams under the other pou that will make up the Regional Recovery Plans. This programme will support teams working within this framework during the planning phase and help prepare the organisation for adoption of recovery initiatives into BAU programmes of work.
Schedule – land categorisation community meetings and drop-in sessions started this month. Requests for land category reviews and changes by affected community members have been captured by phone, email, Social Pinpoint survey or directly from property owners at the drop-in sessions. These have gone through further technical analysis and assessment resulting in re-categorisation of many properties. Recovery initiatives outlined in the Environmental Resilience Plan have been reviewed and recovery costings reconciled with funding. An update has been submitted to the Regional Recovery Agency (RRA). HBRC teams have been supporting the Negotiations Team by providing data to support this process. Risk - present risks are the shortening timeline to engage with the community/mana whenua on the next edition of the plan, which may be a more comprehensive/longer-term view of recovery. RRA guidance on the next plan has not yet been confirmed. Uncertainty on outstanding funding. The need for meaningful engagement with our communities and mana whenua on the next edition of the plan has been clearly highlighted to the RRA. The Recovery Team has provided RRA with recovery initiatives. Funding requirements have been updated to provide clarity on HBRC's priorities and funding needs. Budget - negotiations with central govt is underway

Project/Programme Title	Schedule	Risk*		Budget	Status Change over last 6 months
2. Recovery Claims - Insurance (Monthly reporting)	l		l	l		Apr		May
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Project summary: This is a project to recover asset and business interruption losses arising from the impacts of Cyclone Gabrielle and how we will maximise recovery of costs to replace assets through our insurance policies.
No update provided this month.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
3. Recovery Claims - NEMA (Monthly reporting)	l		l	l		Apr		May
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Project summary: This is a project to recover costs incurred through CDEM response (and HBRC) including response costs for infrastructure.
No update provided this month.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
4. IRG Flood Control & Drainage Programme (Monthly reporting)	n		u	n		Nov		Dec		Jan		F/M	Apr	May
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Project summary: 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 Central Hawke’s Bay. 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.
Schedule - the delay in progress caused by Cyclone Gabrielle and the ensuing repairs has had a significant impact on the programme. The Ngatarawa Stopbank Upgrade contract has recommenced this month although has been affected by wet weather. Some gravel extraction has occurred in the past month and several extraction contracts have been extended to better enable contractors to reach their contracted volumes. Risk - programmes of work will not be completed in the current funding window. The Asset Management Group is in ongoing discussions with Kānoa (co-funder) to review the funding deadline and programme extents in order to identify practical project hold points and funding timeframes. Budget - the programme is significantly underspent.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
5. Kotahi Plan (Monthly reporting)	u		n	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: Developing a combined resource management plan for the Hawke’s Bay 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.
Schedule - the recovery environment has presented a potential opportunity to encourage the establishment of place-based contracts to undertake vision, value and Te Mana o te Wai Statement setting work. This avenue is currently being explored by the Policy and Māori Partnerships teams. Officers are working with Ministry officials to seek an Orders in Council that provides an extension to our statutory timeframes for freshwater planning, however we continue the work to ensure HBRC is able to meet its statutory obligations. Risk - as the region focuses on recovery from Cyclone Gabrielle, capacity of mana whenua and the wider community to undertake other business as usual work and engage in freshwater vision, values and Te Mana o te Wai statement setting is severely constrained. Staff are working within the recovery frame and looking for opportunities to incorporate requirements for National Policy Statement for Freshwater Management planning and engagement into recovery work. Budget – on track.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
6. Land for Life (Monthly reporting)	l		u	u		Nov		Dec		Jan		F/M	Apr	May
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Project summary: 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. Run in collaboration with The Nature Conservancy (TNC) and the Ministry for Primary Industries (MPI) to accelerate erosion control work and extend the programme to more farms.
Schedule - the draft of the business case was submitted on schedule to MPI at the end of June. Quality Assurance on the business case is underway by subject area representatives from HBRC, MPI and TNC aiming to have this complete by the end of July. Risk - key risks include assuring we have ability to streamline the farm planning process; funding for implementation and ramping up the project; prioritising/integrating the project with HBRC; and farmer uptake. Budget - the project is tracking under budget with ~$260k recommended to be rolled over to this financial year. This is needed to complete the business case, work through a go/no-go decision process with MPI, HBRC and TNC, work toward integrating the project with HBRC as a key component of rural recovery and start planning for implementation.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
7. Regional Water Security Programme (Monthly reporting)	u		u	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: Investigating water supply options aiming to ensure Hawke’s Bay has long-term, climate-resilient, and secure supplies of freshwater for all. This supports the Kotahi Plan and includes:  exploring above ground, medium-scale water storage options in the Ngaruroro catchment for and on behalf of the community  setting up a Managed Aquifer Recharge (MAR) trial in Central Hawke’s Bay to determine whether MAR is a viable water storage option and 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.
CHB MAR: Draft consent conditions have been issued, reviewed and applicant’s comments/amendments proposed. Mana whenua input was sought, and consent conditions reflect a commitment to form an alliance with Tamatea mana whenua, overlay and incorporate Mātauranga. Technical discussions are anticipated on some of the proposed amendments, but a final consent decision is expected in the very near future. Communications have been prepared with input from Kānoa, CHBDC and Tamatea Taiwhenua. Implementation planning is ongoing. Internal discussions are progressing. Heretaunga Water Storage: Damwatch Engineering has been engaged as independent technical peer reviewers of the Tonkin & Taylor Stage 2 technical study for Option 3 Dam site. This is due to be completed by mid-August and will complete the projects technical Prefeasibility/Advanced Prefeasibility studies. The Terrestrial Ecologist revisited the dam/reservoir site in mid-June to provide revised mapping, data and initial observations of the impacts of Cyclone Gabrielle on the terrestrial values of the site as identified and detailed in the earlier prefeasibility assessment. The project team is preparing a briefing to key landowners at the end of July and a Council site visit/workshop in early September ahead of key decisions to proceed. Funding will need to be secured to commit this project to further investigations. Regional Water Assessment (RWA): The final RWA report was discussed with Council in early June and issued for public release at the end of June. A decision was made to wait until further notice before launching a broader public campaign. These decisions will sit with the Policy team and it is envisaged that wider communications and discussions on these findings and the implications will accompany the Kotahi Plan when these timeframes and the shape of this work is determined. A Water Demand Assessment report focused on the Industrial and Territorial water users has been issued and is under review alongside another independent report on potential opportunities for efficiency gains of the Irrigators. These reports are scoping level documents designed to highlight areas and key opportunities for demand reduction across our highest uses. A covering memo/report will culminate recommendations for Council consideration and is anticipated for August 2023. Separate funding of $1M was ear marked in the Long Term Plan to progress priority recommendations.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
8. Farm Environmental Management Plans (FEMP) (Monthly reporting)	l		u	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: These aim to address environmental outcomes and actions to improve environmental performance on properties over 4 hectares initially within the Tukituki region in three-yearly submission cycles.
Schedule - National Freshwater Farm Plan regulations were gazetted in early June 2023. The rest of the FEMP project is on hold and staff have been doing other work. Risk - identified properties without 2021 FEMP are the main risk. Interruptions to the project plan and schedule due to the cyclone, as well as farmer pushback at the next review cycle, are also factors. Budget - on track. Due to cyclone disruption in project planning and timeline, an under spend is expected this FY.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
9. TANK Plan Change (Policy) (quarterly reporting)	u		n	l		Dec		Mar
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Project summary: Proposed TANK Plan Change (PPC9) will add new rules to the Regional Resource Management Plan to manage water quality and quantity for the Tūtaekurī, Ahuriri, Ngaruroro and Karamū (TANK) catchments. TANK Plan Change (Implementation): TANK Sub-catchments Community Engagement - An external communications project, intended to inform rural landowners about the 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.
Schedule - there have been court ordered extensions provided to parties to respond to the Council memo as a result of Cyclone Gabrielle, however this is not considered to have added any significant or detrimental delays to the appeal/mediation process. There has been an amended topic allocation and an order was circulated on the 4 April. We are awaiting court direction for further mediation progress. Risk - Cyclone Gabrielle has added a further dimension as it is unknown how this will impact on those parties who are expected to be involved. There is likely an impact on HBRC ability to undertake this BAU when the core focus of the organisation is on recovery of the region, particularly for the science teams and those staff who will need to respond and engage with the forthcoming mediation and appeal processes, as this resource has been diverted to recovery of the region. The possible need for a plan variation to address the cyclone’s impact on freshwater quality has been identified. Budget – Extended delays throughout the process have extended the timeframe and programme for the TANK plan change, meaning that it has cost more in terms of time and staff effort, as well as consultancy fees. In this mediation phase, legal fees are likely to be the most significant cost.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
10. Transport Choices (monthly reporting)	l		l	l			F/M		Apr		May
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Project summary: HBRC secured funding of $1.39 million from central government to upgrade eight bus stops in the region and create two new stops. The funding is part of a Transport Choices package included in the Government’s Climate Emergency Response Fund (CERF) led by Waka Kotahi NZ Transport Agency.
No update provided this month.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
11. Revenue & Financing Policy/ Rates Review (Monthly reporting)	l		u	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: 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 likely change.
Schedule – the project is on track. Two workshops were held in June. The first workshop discussed the application of outputs of step one into actual rating factors. The second workshop looked at targetted rates for sustainable homes, economic development and subsidised public transport. Risk – reliance on the availability of one or two specialist staff for the modelling work remains the main risk. We are still looking for an interim staff resource to take charge of the Excel modelling. Budget - project is funded within existing finance budgets.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
12. Emissions Reduction Plan (Monthly reporting)	l		u	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: Development of an inaugural Regional Emissions Reduction Plan by July 2023 with broad community involvement, support, and engagement, which will integrate with the next long term plans of the region’s councils. The Emissions Reduction Plan will be informed by a greenhouse gas emissions inventory to establish the carbon footprint at the city, district, and regional level. A first for Hawke’s Bay.
Schedule – The drafting of the Emissions Reduction Plan is progressing well. The plan (including practitioner group feedback) will be presented to the Regional Transport Committee on 4 August for endorsement of the Transport chapter, and the Joint Committee for Climate Action on 14 August. PSGEs have been invited to appoint a member to the Joint Committee, requiring a change ot the ToR. We have started work to establish the Technical Advisory Group (TAG) for this committee and draft ToR so the TAG can meet before 14 August. Risk – no change. The reduced scope plan is now much more council-led than practitioner group-led, so requires more community engagement once complete. We have not been able to achieve genuine mana whenua engagement in the workshops hosted pre-cyclone. PSGEs will now be invited to appoint a member directly to the JC for climate action. A section of proposed community engagement will be added to the emissions reduction plan. Budget – on track
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
13. Enterprise Asset Management (Monthly reporting)	l		n	l		Nov		Dec		Jan		F/M	Apr	May
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Project summary: 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.
Schedule – on track. Continued work on the design of the Asset Management Works System and Project Lifecycle Management. The Asset Register has been loaded into the production environment making assets available within TechOne. Risk – T1 financial architecture does not naturally map to the asset management financial requirements. Suggested work-arounds would mean primary objective of an 'out of the box' solution will not be realised and significant work will be required to deliver maintenance activity across the year. Continued work with finance team to resolve. Budget - on track.

Project/Programme Title	Schedule	Risk*	Budget	Status Change over last 6 months
14. Synergy (Monthly reporting)	u	n	l		Nov	Dec	Jan	F/M	Apr	May
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Project summary: The enhancement of already implemented TechnologyOne modules to ensure a stable foundation for the future stages of the TechnologyOne ERP deployment at HBRC.
Schedule - AP: Implementation of ABBYY Vantage (OCR Tool) is underway and on track. Creditor work almost complete and will move to Data Entry work next week. Payroll: Audit has been booked for July to close off workstream. Legacy Apps: Some changes have been made to Nav Viewer based on feedback from Finance. With them to test and accept. Other: WalkMe Implementation starts this month. Risk - project resourcing is a key issue with reduced capacity in Business Solutions Team, as well as increased demand for regional recovery activities. Finance availability has been impacted by year end and three staff have recently been seconded to other roles. Budget - On track. ABBYY, WalkMe and Atturra consulting within budget. Note: ABBYY = OCR (optical character recognition) tool used by finance to scan and read information from invoices / credit notes and update TechOne. WalkMe = digital adoption / training / change management tool to trial with TechOne. Simplifies software usage by overlaying instructions & automating some steps.
Project/Programme Title	Schedule	Risk*	Budget	Status Change over last 6 months
15. Clifton to Tangoio Coastal Hazards Strategy (quarterly reporting)	l	l	l		Dec	Mar
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Project summary: Working in collaboration with coastal communities and local entities for more than 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.
Schedule – on track. New notification date of August 2024 confirmed by the Joint Committee and HBRC. Risk - no new risks reported. Maintaining a watching brief on the implications of new legislation, particularly Resource Management Reform. Budget - underspent given interruption from Cyclone Gabrielle.
Project/Programme Title	Schedule	Risk*	Budget	Status Change over last 6 months
16. Ahuriri Regional Park (quarterly reporting)	l	l	l		Dec	Mar
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Project summary: Working alongside Napier City Council and Mana Ahuriri Trust to redevelop the Lagoon Farm site into a Regional Park to address water quality issues in the Ahuriri Estuary, as well as enhance biodiversity, and cultural and recreational benefits for the community.
No update provided this quarter.

Key Strategic Projects - pipeline
Title	Group	Estimated Start
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
Urban Catchment Plans (Te Karamū & Ahuriri)	Asset Management (Regional Assets)	TBC

Decision-making Process

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

Recommendation

That Hawke’s Bay Regional Council receives and notes the Strategic projects report to 30 June 2023.

Authored by:

Sarah Bell

Team Leader Strategy and Performance

Jason Doyle

Project Manager Policy & Planning

Approved by:

Desiree Cull

Strategy and Governance Manager

Attachment/s

There are no attachments for this report.

Hawke’s Bay Regional Council

26 July 2023

Subject: Significant organisational activities through August 2023

Reason for Report

1. The following commentary is for councillors’ information to highlight significant areas of Council activity, particularly in recovery from Cyclone Gabrielle. 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.

Significant activities by group

Asset Management Group
Project /Activity description	Significant upcoming milestone(s)	Team or Section
Napier urban waterways	1. A review of the Awatoto Drainage Area has commenced using a consultant.	Regional Assets
Wairoa	2. Scheme reviews are being carried out on Opoho and Ohuia schemes. 3. A review of the Mahanga wetland and stream is underway. 4. The Opoutama Stream woody debris is being mulched. 5. The Nuhaka Railway Drain channel excavation and re-spraying has been completed. 6. A team has been formed by HBRC and WDC staff to explore flood resilience in Wairoa and further engineering capability has been engaged to define solutions.	Operations / Regional Assets
Central Hawke’s Bay	7. Waipawa River at SH50 scour and erosion repairs are in progress, including bridge abutment repair by NZTA. 8. Makara Dam #4 – dewatering is ongoing to allow outlet repair and desilting to be undertaken. 9. Work is underway to remove vegetation and silt from the Makara Stream. 10. Cyclone stopbank and fencing repairs are continuing. 11. Annual maintenance programme is in progress. 12. Upper Tukituki Review – working with CHBDC to develop the scoping document; intend to go to market at the end of July. 13. Makara Scheme Review – scoping document being developed.	Operations / Regional Assets
Napier Meeanee NCC MOU	14. Morrison Low has been engaged to progress business case.	GM
Gravel extraction	15. Allocations for sustainable gravel extraction for the 2023-2024 year have been issued.	Operations
Hastings Karamu Scheme Review	16. The scheme review is on hold as work has focused on tendering for the HPFCS review – which is currently out to market 17. Post Cyclone Gabrielle, this review will be rolled into the HTPFC scheme review.	Regional Assets
Cyclone Gabrielle Response	18. All breaches on the Tūtaekurī and Ngaruroro rivers have been completed. The work programme now consists of scour repairs and work packages for river management works. 19. Breach and scour repairs in Central Hawke’s Bay are well advanced, with one remaining breach site not yet at full height and several repairs on hold while additional technical assessments are completed. Hydroseeding of the Walker Road breach repair is still in progress and expected to be completed by 21 July 2023. 20. Wet weather is impacting on completion timeframes for all sites. 21. River and Waterway Asset inspections have been carried out, and the inspections analysed and prioritised. 22. Work is underway to scope and develop the work packages and add costings to each. 23. Pumpstations have been repaired to pre-Gabrielle functionality. 24. A review of the pumpstations at Pakowhai, Mission and Brookfields is underway. The outcome of the review will inform future development around those pumpstations. 25. The drain silt excavation programme is in progress; currently working in Raupare/Twyford area including retaining wall construction. 26. Asset Management maintenance contracts 2023-24 have been priced for final review and registration. 27. Wood waste removal from the rivers is being coordinated through the taskforce. 28. Preparation for fencing repairs is underway.	Regional Assets/ Operations
Regional Parks	29. Waitangi improvement work has been put on hold and stakeholders informed. 30. Pekapeka: Main carpark isopen to the public, however major damage to boardwalks still require repair. 31. Tūtira: Still closed due to significant damage and access issues due to blocked outlet. Working with MPI/HBRC Science. 32. 2023 Community Planting Days: Ruahapia - Des Ratima memorial planting (Biodiversity HB) on Saturday 29 July 2023. Pukahu / Karamu - Bostock’s on Sunday 30 July 2023. 33. Hawea Historic Park planting plan has been developed and endorsed by the Committee for implementation.	Regional Projects/ Operations
Cycle Networks	34. A second Managing Great Rides (MGR) Extreme Events application for $1,925,570 was made to MBIE in June – to cover damage for med/long-term repairs to 30% of the network still closed with stopbank damage, slips or bridges destroyed, and for some resilience work. Repairs will be coordinated with TAs, NZTA and KiwiRail. The med/long term phases of repair include Waitangi to Fernhill/Taradale, Waimarama/Karamu repairs and the Long Puketapu Loop. 35. Lagoon farm pathway renewal project is under way in preparation for HB Marathon on Saturday 26 August 2023.	Regional Assets / Operations

Integrated Catchment Management Group
Project /Activity description	Significant upcoming milestone(s)	Team or Section
Hill Country Erosion Fund (HEF)	36. Complete Annual Plan 37. Establish HEF governance group	Catchment Management
Soil Conservation Nursery	38. Pole shed completed. 39. Consent issued from HDC for toilet and staff facilities.	Catchment Management
Erosion Control Scheme	40. Catchment advisors (CAs) continue to take stock of ECS projects and capture and schedule any remediation works needed. The ECS planting programme is under way.	Catchment Management
Hydrology and Water Quality	41. Telemetry sites continue to be rebuilt and/or upgraded to provide reliable data during storms. All critical sites worked at 100% capacity during rain event 8-9 July 2023. 42. Mt Misery repeater in Wairoa has had a full upgrade including radio and batteries. 43. Work continues at Kahuranaki repeater site which has had new batteries installed. 44. Water Quality and Ecology team continues its extra sampling to accurately define changes in streams and rivers.	Environmental Information
Science	45. Science team and flood modelers are working with NIWA to undertake flood frequency analyses for Cyclone Gabrielle, funded by the MBIE Extreme Weather Science Fund. The analyses will produce annual exceedance probabilities for the region’s waterways pre-cyclone and post-cyclone to help guide recovery and rebuild. 46. HBRC Science team has received $600k to undertake feasibility studies for assessing nature-based solutions to flood management in the Heretaunga Plains and Upper Tukituki. This will look at the effect that aspects such afforestation, wetland development, flood plain widening, etc. have on peak flows, and retention of water in the landscape during periods of dry weather. 47. MfE has committed funding to the regional sector to complement the MBIE Extreme Weather Science Funding for LiDAR in the Hawke’s Bay and Tairawhiti regions. This will allow HBRC to have access to complete LiDAR coverage post-cyclone commencing this spring. 48. Work continues on the integrated ecological assessments of rivers, lakes, marine and terrestrial ecosystems.	Environmental Science
Biosecurity	49. Alligator weed – Lake Whatumā. The team continues the physical removal of alligator week in the Mangatarata outlet. Aquatic weed bloom is in NZ but awaiting customs clearance. The team is working on an operational plan for eradicating this plant, including external and internal costs. 50. The Controlled notice to allow river gravel movement in a section of the Tukituki/the entirety of the Waipawa River’s channel post-cyclone (Papanui) has been extended to 31 August 2023; applications to use gravel for rural infrastructure repairs close on 10 August 2023 and all extraction from the controlled areas must cease at 11.59pm on 31 August 2023. 51. A contractor has been approached to begin the Chilean Needle Grass programme review in August. 52. Whakatipu Mahia work continues with a contractor leading the work until the end of 2023.	Biosecurity
Biodiversity and Priority Ecosystems	53. Recruitment for a new Senior Biodiversity Advisor role is underway. 54. All completed and planned projects within the Priority Ecosystem and Protection and Enhancement programmes are being assessed for damage and feasibility of repair from the impacts of the cyclone. This work is being prioritised for the next financial year. 55. Planning for the ground truthing of the region’s priority ecosystem sites is underway.	Biodiversity
Community Engagement	56. A series of five workshops were delivered throughout June in collaboration with the Rural Advisory Group (MPI, B+LNZ, Federated Farmers, RST, DairyNZ, Fonterra and HBRC). The workshops were held in Porangahau, Ashley Clinton, Waikare, Patoka and Ashley Clinton. More than 60 farming businesses attended the workshops focused on Land Use Recovery (dealing with slips & erosion, and revegetation planning, recovery planning and wellbeing). 57. An Impact Assessment Survey conducted in April/May is now being further analysed by Sense Partners Ltd, with input from HBRC Environmental Science Team to understand land erosion, slip damage affects and land use impacts using the survey information and mapping. 58. HBRC has been engaging “one to one” with affected Horticulture landowners to understand impacts in the context of relating to areas of work HBRC has an interest in, e.g. Policy & Regulation, Water availability/usage, and land use change options. 59. HBRC is closely connected to the Rural Advisory Group and Horticulture Advisory Group with regularly scheduled meetings. 60. Supportive engagement is being pursued in Wairoa to align with planned delivery and a contractor has been onboarded to coordinate rural engagement. Staff are developing a series of ‘drop in’ days to support WDC’s recovery team and have a range of advice available for the Wairoa community to connect with. 61. HBRC has been working with LandWISE to meet with and support a group of eight to nine cropping farmers in Wairoa. The group lost significant volumes of maize, with longer term impacts affecting recovery. Two meetings and a field visit have been held, with plans to identify short term land use actions for September/October 2023. 62. Community meetings have been held with catchment groups/ communities in Takapau (Porangahau & Maharakeke Catchment Group), Omakere (Mangamahaki Land Care Group), Puketapu (Ahuriri Tribs).	Rural Recovery
Resilient Land Businesses	63. An in-depth case study of a multi-faceted Horticulture Business was undertaken and completed by AgFirst, and will provide a deep understanding of full costs and recovery prioritisation. The business has a wide range of production elements and was severely impacted by the cyclone. 64. In the final stages of engaging a Land Recovery Advisor (short term contract) to work with landowners who have contacted HBRC through the 0800-line seeking guidance on land use recovery operations (soil remediation, contouring, removal, planting, and water protection planning). 65. Using similar process as developed for TANK Catchment, the team has commenced developing “Catchment Context” (CCCV – Catchment context, challenges, and values information for all HB catchments) to support land use recovery planning. This process will align with the implementation of Freshwater Farm Plans in 2025 and will be integral to Recovery Planning.	Rural Recovery

Policy and Regulation Group
Project /Activity description	Significant upcoming milestone(s)	Team or Section
Plan Change 9 (TANK plan) appeals	66. HBRC has commenced proceedings with the Environment Court and appellants in relation to preliminary matters and order of topics for mediation. 67. In July 2023, the Environment Court issued a memorandum tasking HBRC to create a revised topic allocation proposal that does not have preliminary legal matters as a separate precursor to mediation on all other topics.	Policy
Plan Change 7 (Outstanding waterbodies) appeals	68. Four appeals were lodged with the Environment Court. The Court has scheduled a hearing to commence on or after 20 November 2023. The Court has also set a timetable for parties to exchange evidence. HBRC is on track to circulate its expert evidence by 11 August 2023. Appellants will then need to circulate their respective experts’ evidence.	Policy
Napier-Hastings Future Development Strategy (FDS)	69. A meeting of the FDS Joint Committee was held on 11 July 2023. Refer to 26 July2023 Council meeting agenda for report and recommendations from that meeting.	Policy
Ngaruroro River Water Conservation Order (WCO) High Court appeal	70. High Court appeal hearing was scheduled to commence on 8 May 2023 but cancelled pending clarification from one of the parties about their status and interests in proceedings. New High Court hearing date is yet to be confirmed.	Policy

Decision Making Process

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

Recommendation

That the Hawke’s Bay Regional Council receives and notes the Significant organisational activities through August 2023 staff report.

Authored by:

Mell Anderson

Project Manager Hill Country Erosion Scheme

Mary-Anne Baker

Team Leader Policy & Planning

Michael Bassett-Foss

Land for Life Project Manager

Vicki Butterworth

Cycle Network Coordinator

Desiree Cull

Strategy and Governance Manager

Bryce Cullen

Transport Strategy ＆ Policy Analyst

Peter Davis

Manager Environmental Information

Ceri Edmonds

Manager Policy & Planning

Dan Fake

Freshwater Ecologist

James Feary

Operational Response Manager

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

Rob Hogan

Manager Compliance

Gavin Ide

Principal Advisor Strategic Planning

Jon Kingsford

Manager Regional Projects

Dr Kathleen Kozyniak

Team Leader Marine Air & Land Science

Anna Madarasz-Smith

Manager Science

Astra McKellow

Senior Gravel Assurance Officer

Louise McPhail

HBRC Recovery Manager

Ken Mitchell

Asset Management Engineer

Thomas Petrie

Programme Manager Protection & Enhancement Projects

Kate Proctor

Pastoral Sector Prioritisation & Engagement Lead

Antony Rewcastle

Manager Operations

Becky Shanahan

Senior Scientist Marine & Coasts

Matthew Short

Catchment Management Lead - Biosecurity

Jolene Townshend

Manager Catchment Operations

Paul Train

Catchment Management Lead Southern

Richard Wakelin

Manager Rural Recovery

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.

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