Meeting of the Hawke's Bay Regional Council

 

 

Date:                       Wednesday 27 September 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 Meeting held on 30 August 2023

4.            Call for minor items not on the Agenda                                                         3

Decision Items

5.            Report and recommendations from the HB Civil Defence Emergency Management Group Joint Committee meeting                                           5

6.            Affixing of Common Seal                                                                                 11

7.            Report and recommendations from the Corporate & Strategic Committee                                                                                                          13

8.            2022-2023 Carry forwards                                                                              57

Information or Performance Monitoring

9.            Strategic Projects Report to 31 August 2023                                              67

10.          Significant organisational activities through October 2023                    73

11.          Discussion of minor items not on the Agenda

Decision Items (Public Excluded)

12.          Recommendation from the Corporate & Strategic Committee - HBRIC Chairperson Appointment                                                                               81

Wednesday 27 September 2023

Subject: Call for minor items not on the Agenda        

 

Reason for Report

1.        This item provides the means for councillors to raise minor matters relating to the general business of the meeting they wish to bring to the attention of the meeting.

2.        Hawke’s Bay Regional Council standing order 9.13 states:

2.1.     A meeting may discuss an item that is not on the agenda only if it is a minor matter relating to the general business of the meeting and the Chairperson explains at the beginning of the public part of the meeting that the item will be discussed. However, the meeting may not make a resolution, decision or recommendation about the item, except to refer it to a subsequent meeting for further discussion.

Recommendations

3.        That Council accepts the following Minor items not on the Agenda for discussion as Item 11.

Topic	Raised by

 

 

Leeanne Hooper Governance Team Leader

Desiree Cull Strategy & Governance Manager

 

Wednesday 27 September 2023

Subject: Report and recommendations from the HB Civil Defence Emergency Management Group Joint Committee meeting        

Reason for Report

1.        This item provides a summary of discussions at the 28 August 2023 meeting of the HB Civil Defence Emergency Management Group Joint Committee (Joint Committee) for Council’s information alongside a recommendation for Council’s consideration for the upcoming Long-Term Plan 2023-2034 process. The Chair of the Joint Committee may also have additional commentary to offer.

Agenda items

2.      The Requests for inclusion in HBRC Long Term Plan 2024-2034 decision item enabled the Joint Committee to consider future operational funding options for the HB CDEM Group, and to endorse a resourcing request to Hawke’s Bay Regional Council for inclusion in its Long-Term Plan 2024-2034 (LTP). Key points highlighted included:

2.1.     Level of service expectations from the community continue to rise as does the complexity (particularly technology and communications) and expense of managing events.

2.2.     The Emergency Management Bill is currently open for consultation. When it comes into force there are likely to be additional requirements and responsibilities for emergency management in regions across the country.

3.      The GNS Science 2022 Level 3 Tsunami modelling in HB item provided an update on the work associated with community engagement to socialise the report.

4.      The Community Engagement and resilience work update item updated the Joint Committee on the community engagement and resilience work – currently largely in support of recovery activities being undertaken by councils in conjunction with other agencies across the region.

5.      The Group operational capability and preparedness update item provided an update on the currently operational capability and preparedness of the Group including the readiness of individual councils in the region to respond to another emergency event.

Financial and Resource Implications

6.        The financial and resource implications of Joint Committee recommendations to the Council for CDEM Group resourcing are detailed in the attached report - CDEM Group financial impacts of additional resourcing. This report combines repaying the existing reserve deficit and the increased resourcing for the CDEM Group.

7.        In summary, what is being recommended would result in a 50% increase in the targeted rate in year one of the HBRC LTP with subsequent increases of 1% in year two and 3.4% in year 3. The large increase in the first year is due to:

7.1.         The start of recovering the reserve deficit (close to $3m) over a five-year period

7.2.         The one-off cost to review the CDEM Group Plan, budgeted at $70k

7.3.         The start of the additional operational expenditure of $145K p.a. to cover increased costs and additional capability.

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 and final decisions on HB CDEM Group resourcing will be subject to a public consultation process for Council’s Long-Term Plan 2024-2034,

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

8.4.     The persons affected by this decision are all ratepayers of the Hawke’s Bay region.

Recommendations

The HB CDEM Group Joint Committee recommends that Hawke’s Bay Regional Council:

1.        Receives and considers the Report and recommendations from the HB Civil Defence Emergency Management Group Joint Committee meeting.

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 with the community or persons with an interest in the decision.

3.        Considers the options endorsed by the Joint Committee (following) as part of the HBRC Long Term Plan 2024-2034 process.

	2024-2025	2025-2026	2026-2027
Staffing	•  Operational capability at a senior level •  Community resilience (focused on rural communities)	Local TLA Readiness and Response Support	Long term risk reduction
Other Operational Costs	•  Common operating IT tools •  Signage •  Group Plan review (one off) •  Training (non CDEM staff) •  Alternative communications •  Storage costs •  Community resilience planning

 

4.        Notes that there are a number of Cyclone Gabrielle reviews presently underway, the outcomes of which may affect the future resourcing of and capability requirements for the HB CDEM Group.

5.        Notes that the resourcing recommendations made are part of HB CDEM Group’s transition to a future operating model, which is an ongoing process, and that further recommendations from the Joint Committee to HBRC may be made in this regard in future.

Authored by:

Peter Martin Senior Governance Advisor

Approved by:

Ian Macdonald HB CDEM Group Controller / Manager

 Attachment/s

1⇩

CDEM Group financial impacts of additional resourcing

  

CDEM Group financial impacts of additional resourcing

Attachment 1

 

Wednesday 27 September 2023

Subject: Affixing of Common Seal        

 

Reason for Report

The Common Seal of the Council has been affixed to the following documents and signed by the Chair or Deputy Chair and Chief Executive or a Group Manager.

		Seal No.	Date
1.1	Staff Warrants 1.1.1   P. Duncan             R. Patil             (Delegations under Resource Management Act 1991 (Sections 34A(1) and 38(1); Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908; Civil Defence Emergency Management Act 2002 (s.86-92) and Local Government Act 2002 (Section 177))   1.1.2   P. Campbell             (Delegations under Resource Management Act 1991 (Sections 34A(1) and 38(1)   1.1.3   D. Griffin             (Delegations under Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908   1.1.3   S. Courtnell             (Delegations under the Biosecurity Act 1993 (Sections 103 and 105)     1.1.4   J. Iese            (Delegations under the Civil Defence Emergency Management Act 2002 (s.86-92 inclusive)	4554 4559               4555           4556   4557         4558	7 September 2023 13 September 2023               7 September 2023           7 September 2023   8 September 2023         12 September 2023

1.        The Common Seal is used twice during a Leasehold Land Sale, once on the Sale and Purchase Agreement and once on the Land Transfer document.  More often than not, there is a delay between the second issue (Land Transfer document) of the Common Seal per property.  This delay could result in the second issue of the Seal not appearing until the following month.

2.        As a result of sales, the current numbers of Leasehold properties owned by Council are:

2.1.         No cross lease properties were sold, with 62 remaining on Council’s books

2.2.         No single leasehold property was sold, with 77 remaining on Council’s books.

 

Decision Making Criteria

3.        Council is required to make every decision in accordance with the provisions of Sections 77, 78, 80, 81 and 82 of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within these sections of the Act in relation to this item and have concluded the following:

3.1.        Sections 97 and 88 of the Act do not apply

3.2.        Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others due to the nature and significance of the issue to be considered and decided

4.3          That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision making process.

 

Recommendations

That Hawke’s Bay Regional Council:

1.        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.

2.        Confirms the action to affix the Common Seal.

 

Authored by:

Diane Wisely Executive Assistant

Vanessa Fauth Finance Manager

Approved by:

Nic Peet Chief Executive

 

Attachment/s

There are no attachments for this report.  

Wednesday 27 September 2023

Subject: Report and recommendations from the Corporate & Strategic Committee        

 

Reason for Report

1.        The following matters were considered by the Corporate and Strategic Committee (C&S) meeting on 20 September 2023 and the recommendations agreed to are now presented for Council’s consideration alongside any additional commentary that the Committee Chair, Councillor Neil Kirton, wishes to offer.

Agenda items

2.        The 2023 Navigation Safety Bylaw approval for consultation item outlined the process to date to develop a draft bylaw and highlighted changes to the existing bylaw.  Attached to the paper was the draft bylaw, the Statement of Proposal (SOP) document and the Consultation Document (CD) for approval ahead of the engagement process. The Committee requested some minor wording changes, (included in the attached document) which were agreed on and recommended that the Council adopt the draft Bylaw, SOP and CD for community engagement and agree to the engagement period 29 September to 29 October 2023.

3.      The 2022-2023 Carry Forwards decision item listed unspent opex and capex for specific projects/work that are requested to be carried forward to cover the expected costs to completion, noting that any carry forward of general funding will impact the forecast operating deficit for the financial year. This year’s carry forwards are significantly impacted by Cyclone Gabrielle response and recovery activities. The Committee received the paper and deferred decision making to Council once further information on general rate-funded carry forwards was provided.

4.      The Debt Drawdown decision item sought a recommendation to Council to delegate borrowing of new debt. The Committee agreed and recommended that the Council delegates borrowing up to the 2023-2024 Annual Plan total debt amount of $134.6m to the Hawke’s Bay Regional Council Chief Executive and Group Manager Corporate Services, as required under the Council’s Treasury Policy

5.        The Annual Report 2022-2023 – Interim Non-Financial Results information paper presented the interim level of service measure results for 2022-23 for feedback prior to auditing and publication in the Annual Report.   The Committee queried the implications of a lower than usual percentage of “high-risk” consents monitored and the scope of the corporate carbon footprint report. 

6.      The Organisational Performance Report for the period 1 April – 30 June 2023 was presented for information. The Committee Chair noted the “sea of red” (red traffic-light reporting for level of service performance measures, activity and financials) from cyclone disruption.  The use of the colour red for reporting underspent budget was queried. Points of interest this quarter were:

6.1.     LGOIMA requests jumped to 57 compared with 37 last quarter.

6.2.     There are three new graphs from our Customer Experience team around daily feedback sentiment and response time for customer enquiries.

6.3.     The quarterly employee turnover has trended downwards, with the rolling 12-month turnover down to 19.8% from 21.5% last quarter.

7.        The Hawke’s Bay Tourism Annual Report was presented for information and to meet its obligation to report against KPIs in the ‘Funding Agreement for the Operation of a Regional Tourism Organisation’ (the Agreement) between HBRC and HB Tourism. KPIs include (amongst other things) market share of domestic visitor spend and industry contribution (including cash investment, in-kind support and membership). Figures on the value of tourism for the HB economy were also presented. Better line of site of financial statements was requested.

8.      The HBRIC Ltd Quarterly update information item was presented by the Chair of HBRIC, Dan Druzianic with additional commentary from the Chair of Napier Port, Blair O’Keeffe. HBRIC’s unaudited financials to 30 June 2023 were attached and key items to note were:

8.1.     Statement of Financial Performance

8.1.1.   Year-end surplus of $7.2 million (excluding fair value movements through other comprehensive income)

8.1.2.   Year-end $628k interest income

8.1.3.   $7.04 million of dividend revenue received from Napier Port Holdings Limited (NPHL) in the year, with $6.87 million paid to HBRC

8.2.     Statement of Financial Position

8.2.1.   Decrease in net assets of $25 million to $344 million for the year to 30 June 2023.           

8.2.2.   NPHL share price had decreased during the year 9% from $2.75 to $2.50 – total decrease is $ 27.5m

8.2.3.   Increase in managed fund value $43.2m to $45.6m at year-end 30 June 2023.

9.      The Cyclone Financials Update information item, considered in Public Excluded session, provided an outline of costs incurred to date by HBRC. The paper also included Regional Recovery Agency funding. 

Decision Making Process

10.      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:

10.1.      Given the items were specifically considered by the Corporate and Strategic Committee on 20 September 2023 the Council can exercise its discretion and make the relevant decisions without consulting directly with the community or others having an interest in those in accordance with the following recommendations.

 

Recommendations

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

1.        Receives and considers the Report and recommendations from the Corporate and Strategic Committee.

2.        Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community or persons likely to have an interest in the decision.

2023 Navigation Safety Bylaw approval for consultation

3.        Delegates authority to the Group Manager Policy and Regulation to make any required minor amendments or edits to the document prior to publication and the start of engagement.

4.        Adopts the proposed 2023 Navigation Bylaw for public consultation 29 September to 29 October 2023.

 

Debt Drawdown

5.        Delegates borrowing up to the 2023-2024 Annual Plan total debt amount of $134.6m 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:

Allison Doak Governance Advisor

Approved by:

Desiree Cull Strategy and Governance Manager

 

Attachment/s

1⇩

Draft Navigation and Safety Bylaw

  

Draft Navigation and Safety Bylaw

Attachment 1

 

Wednesday 27 September 2023

Subject: 2022-2023 Carry forwards        

 

Reason for Report

1.        This item seeks approval from the Council to carry forward expenditure budgets from 2022-2023 to 2023-2024.

Executive Summary

2.        During 2022-2023 a number of work programmes experienced delays and were unable to be completed as originally planned.  Where this work cannot be reprioritised from within the 2023-2024 Annual Plan budget, unspent expenditure budgets are requested to be carried forward to cover the expected costs of completion.

3.        A total of $8.343m unspent opex and $3.806m unspent capex is requested to be carried forward into the 2023-2024 Annual Plan budget. 

4.        The source of funds required ($12.149m) for the total carry forward request is split as following:

4.1      $3.535m debt funding (already planned lending that hasn’t yet been drawn down),

4.2      $5.048m reserve funds (existing reserves built up from previous rates),

4.3      $1.626m external funds (revenue from other organisations), and

4.4      $1.940m general funds (from operating surpluses in prior years).

5.      The interim financial results presented to Council on 30 August, indicated that Council will have an operating deficit for the 2022-2023 financial year. Even after allocating cyclone expenditure to the Emergency Management and Regional Disaster Damage Reserves this will still result in a deficit to general funds for the year due to the reduced investment income.

6.      Any carry over of general funds into the 2023-2024 year would therefore require a drawdown from accumulated funds (i.e.: from general fund surpluses accumulated over previous financial years) and should be considered in this context.

7.      The opening balance of accumulated funds as at 1 July 2022 was $275 million (excluding $46m of internal loans).  The movements for the 2022-2023 financial year are still being finalised.

8.      External, debt and reserve funded carry forwards have no immediate impact on Council’s financial position as they are just a timing difference of when funding is drawn or recognised.

Background

9.      Carry forwards is a common practice within councils and allows for unspent funds against projects to be moved forward so that projects can be completed. These include the funding of final costs of projects, contracts that were unable to be completed by the financial year end, and the carry forward of external income received for specific projects.

10.      The funding types are categorised as:

7.1      General funding is from General Rates which includes investment income.

7.2      Reserve funding is from targeted rates that have flowed through to specific reserves (including asset replacement and disaster damage reserves).

7.3      External is external funding from other organisations received for specific projects.

7.4      Debt is for debt funding not drawn down this year and is covered by interest and principal repayments that are already included in the LTP and/or Annual Plan.

11.      Officers informed the Corporate & Strategic Committee on 14 June 2023 that, based on the full year forecast at that time, the indicative carry forwards from 2022-2023 would be $9.5m opex and $6.1m capex. These were reduced to $9.0m opex and $3.8m capex in the updated paper to C&S on 20 September 2023 following detailed reviews with Group Managers. The carry forwards presented in this paper have further been reduced.

12.    The interim financial results presented to Council on 30 August, indicated that HBRC will have an operating deficit for the 2022-2023 financial year, however the general reserve (represented by accumulated funds in the balance sheet) does have an opening balance of $275m.

13.    The carry forward decision this year is significantly impacted by Cyclone Gabrielle response and recovery activities.

13.1.  It has been a key driver for delays to originally planned activities, thus causing many of the requests for carry forwards.

13.2.  It has also had significant adverse impact on Council’s financial situation, limiting our capacity to fund planned activities.

14.    Unplanned expenditure for the response to Cyclone Gabrielle will be charged to the Emergency Management and Regional Disaster Damage Reserves. A significant proportion of this shortfall is anticipated to be repaid via NEMA, and insurance and other claims over the coming 12 months.

15.    It should be noted that the deficits in the Emergency Management and Regional Disaster Damage Reserves will need to be addressed as part of the Long-Term Plan 2024-2034.

16.    The impact of the carry forwards on the 2023-2024 annual plan is that the planned operating deficit would increase from the current $20.7m deficit by the amount of operating expenditure budget carried forward less any external revenue carried forward. The funding impact statement would remain in balance as all expenditure carried forward is fully funded from the sources identified and as such does not impact on existing forecasts of future rates.

17.    All of the reserves identified as funding sources will be in surplus at the end of the 2022-2023 financial year.

Operating expenditure carry forward requests

Activity / Project		Amount Requested	Source of funds
			General	Reserve	External	Debt
Integrated Catchment Management (ICM)
1	Biodiversity	$429,000			$229,000	$200,000
2	Predator Free Hawkes Bay	$423,000			$423,000
3	Land for life	$277,000		$277,000
4	Environm’l Science data models	$502,000				$502,000
5	Environm’l Enhancement Prog	$320,000	$208,000		$112,000
6	Land research & investigations	$99,500			$99,500
Asset Management
7	Central & Southern Rivers – flood protection	$30,000	$ 3,750	$26,250
8	Regional Water Security	$3,500,000		$3,500,000
Governance & Partnerships
9	Tangata Whenua Partnerships	$450,000	$450,000
Policy & Regulation
10	Kotahi (policy & planning)	$1,050,000	$1,050,000
Transport
11	Passenger Transport	$763,000			$763,000
Corporate Services
12	Software-as-a-service dvlpt	$500,000				$500,000
Total		$8,343,500	$1,711,750	$3,803,250	$1,626,500	$1,202,000

Biodiversity - (opex – 1)

18.      Integrated Catchment Management (ICM) seeks to carry forward a total of $429k to cover various biodiversity projects supported by external funding agreements with the Department of Conservation (DOC) and the Ministry for the Environment (MFE). 

18.1.  $200k of the Covid Recovery fund approved in 2020/21 (debt funding at $100k per project) for the Department of Conservation Jobs for nature fencing project, and the Porangahau catchment group Freshwater improvement fund project;

18.2.  $194k is required to complete fencing projects supported by the DoC Jobs for Nature funding.  

18.3.  $35k is required to continue the support of the Porangahau catchment group Freshwater Improvement fund project.

19.      Financial Assessment: The $200k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.   $229k of the unspent funds was received from external parties under Deeds of Funding agreements. 

20.      Recommendation: That Council approves the carry forward of $200k of debt funding, and $229k of external funding in external funds from the general reserve.

Predator Free Hawkes Bay - (opex – 2)

21.    ICM seeks to carry forward $423k to cover the final milestones for the Predator Free Hawkes Bay project in Mahia, as supported by a new funding agreement with Predator Free NZ 2050 Ltd. 

22.    Financial Assessment: $423k of external funding was not spent in 2022-23.  

23.    Recommendation: That Council approves the carry forward of $423k in external funding from revenue received in advance.

Land for life - (opex – 3)

24.      ICM seeks to carry forward $277k for the Land for Life project for implementation planning and scale up to support primary sector recovery subject to due diligence on the business case. 

25.      Financial Assessment: The $277k reserve funding was not drawn in 2022-2023, due to the impacts of the Cyclone and the subsequent repositioning of the project.

26.    Recommendation: That Council approves the carry forward of $277k from the long-term investment fund reserve. 

Environmental Science Data models - (opex – 4)

27.      ICM seeks to carry forward $502k for environmental science data model projects that were unable to progress as intended due to science staff turnover, difficulty securing contractors and Cyclone Gabrielle impacts. Each of these multi-year projects provide a critical role in the science decision support for PC6 and Kotahi, and have contractual commitments now delayed into the 2023-2024 financial year.

27.1.  $147k for the LiDAR tools project (data modelling for the completed LiDAR mapping project)

27.2.  $240k for the final milestones of the 3D Aquifer project

27.3.  $115k for the Ruataniwha Groundwater modelling

28.      Financial Assessment: The $502k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.  

29.    Recommendation: That Council approves the carry forward of $502k in loan funding.

Environmental Enhancement Programme - (opex – 5)

30.      ICM seeks to carry forward a total of $320k to cover:

23.1   $208k for the final year of the Whakaki Environment Enhancement project which is a multi-year project which has suffered accumulated delays in deliverables due to extended community consultation, covid-19 impacts and adverse weather. This project is co-funded by MfE via the Freshwater Improvement fund.

23.2   $112k for the Fonterra sponsored wetland construction at Tukipo as this was delayed due to restricted access due to adverse weather conditions.   

31.    Financial Assessment: $208k for Whakaki is general rate funded as part of the wider Enviro Enhancement Programme, which had an underspend of $811k in 2022-2023.  $112k is external funds received from Fonterra, which were note spent in 2022-2023. 

32.      Recommendation: That Council approves the carry forward of $112k external funds and $208k from the general reserve.  

Land Research Investigations - (opex – 6)

33.      ICM seeks to carry forward a total of $99.5k for the completion of landslide mapping work with delivery of the contractual commitments delayed into 2023-2024.

34.      Financial Assessment: $114k external funds were received from Ministry of Primary Industries (MPI) to support this work, and $99.5k has not been spent.

35.      Recommendation: That Council approves the carry forward of $99.5k external funds from the general reserve.

Central & Southern rivers flood protection - (opex – 7)

36.      Asset Management seeks to carry forward a total of $30k for flood protection work in the Central & Southern rivers, which was originally programmed to commence in Autumn 2023, but was unable to begin due to the Cyclone.  

37.      Financial Assessment: The Central & Southern rivers flood protection workstream was underspent in 2022-2023 by $52k.

38.      Recommendation: That Council approves the carry forward of $3.750k from the general reserve and $26.250k from the Central & Southern rivers scheme reserve (representing the unspent targeted rates collected in 2022-2023).

Regional Water Security Programme - (opex – 8)

39.      Asset Management seeks to carry forward a total of $3.5m for the continuation of the multi-year Regional Water Security Programme, including the Water Demand Study as planned in the LTP, and the Te Tua and CHB water storage and reticulation infrastructure (the latter of which is expected to begin construction in 2023-2024). 

40.      Financial Assessment: The Regional Water Security Programme was underspent in 2022-2023 by $3.5m.

41.      Recommendation: That Council approves the carry forward of $3.5m from the long-term investment reserve.

Kotahi and Tangata Whenua Partnerships - (opex – 9 & 10)

42.      Policy & Regulation and Governance & Partnerships seek to carry forward a total of $1.5m, for tangata whenua engagement regarding te mana o te wai, which stalled due to the inability to progress discussions 'at place' for visions and values (for Kotahi) and set up contracts with tāngata whenua.  This was due to a change to the work programme direction from All Governors and exacerbated by the inability to meet at place because of Cyclone Gabrielle.

43.      The visions and values work programmed for 2022-2023 is still required as per the NPSFM.  The budget was established for Kotahi not on a year on year spend but an anticipated total amount for the 3 years of the LTP to enable this work to be undertaken.  Visions and values is one piece of the work which needs to be progressed and contracted.  The next stage which will require funding is attributes, limits, targets and matauranga maori, and this stage will fully utilise the existing budget allocated to Kotahi in the 2023-2024 annual plan.

44.      Financial assessment: Tangata Whenua Partnerships were underspent by $783k and the Kotahi external expenses budget was underspent by $1.5m. The remainder of the underspend will be factored in to the LTP process for future years.

45.      Recommendation: That Council approves the carry forward of $1.5m from the general reserve and notes that officers may come back to Council to approve bringing forward some LTP funding if required to maintain momentum in the delivery of tangata whenua engagement regarding te mana o te wai.

Passenger Transport - (opex – 11)

46.      Policy & Regulation seek to carry forward the $763k shortfall funding received from Waka Kotahi to contribute towards increased operational costs.  The additional operational costs will impact in the 2023-2024 financial year as indexation costs on the GoBus contract are applied.

47.      Financial Assessment: The passenger transport cost centre had a $947k surplus in the 2022-2023 financial year.  Note a carry forward of surplus only addresses cost pressures for one financial year, and ongoing cost pressures will need to be addressed in the 2024 LTP.

48.    Recommendation: That Council approves the carry forward of $763k from external funding. This will be done via the transport reserve as the Waka Kotahi funding needs to be recognised in the year it is received.

Software-as-a-service ICT - (opex – 12)

49.      ICT seeks to carry forward $500k for the digital transformational work programme, which was not progressed due to the suspension or slowing of work on the Finance and Biodiversity systems, caused by unavailability of business teams to assist with scoping due to staff turnover, and reprioritisation to work on the cyclone response. 

50.      Financial Assessment: The $500k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.  

51.    Recommendation: That Council approves the carry forward of $500k in loan funding.

Capital expenditure carry forward requests

Activity / Project		Amount Requested	Type of funding
			General Funds	Reserve	Debt
Integrated Catchment Management (ICM)
1	SOE ground water monitoring drilling	$275,000		$208,000	$67,000
2	Enviro info technical equipment	$102,000		$102,000
Asset Management
3	Flood protection schemes	$397,000		$397,000
4	Flood risk assessment & warning	$113,000	$113,000
5	Forestry	$45,000		$45,000
6	Regional cycleways	$115,000	$115,000
7	Regional Parks	$707,000			$707,000
8	IRG – HPFCS and gravel extraction	$1,101,000		$212,000	$889,000
Corporate Services
9	Office renovations (including furniture & fittings)	$730,000		$164,000	$566,000
10	Radio network	$44,000		$44,000
11	ICT network & equipment	$72,500		$72,500
12	Aerial Imagery (GIS)	$104,000			$104,000
Total		$3,805,500	$228,000	$1,244,500	$2,333,000

SOE Ground water monitoring drilling - (capex – 1)

52.      ICM seeks to carry forward $275k to cover the contractually committed drilling programme delayed into 2023-2024. Resource capacity of drilling companies continues to be a limiting factor to achieving the annual programme of work in line with the financial year, and this was exasperated in 2022-2023 by the cyclone disruptions.

53.      Financial Assessment: The groundwater monitoring drilling workstream was underspent by $275k. 

54.      Recommendation: That Council approves the carry forward of $67k loan funding and $208k of asset replacement reserve funding. 

Environmental monitoring equipment replacements - (capex – 2)

55.      ICM seeks to carry forward $102k for scheduled equipment replacements postponed due to staff capacity redirected to repair and replacement of equipment damaged in the cyclone.

56.      Financial Assessment: The environmental monitoring equipment cost centres were underspent by $102k. 

57.      Recommendation: That Council approves the carry forward of $102k of asset replacement reserve funding. 

Flood protection schemes - (capex – 3)

58.      Asset Management seeks to carry forward a total of $397k for cyclone-disrupted projects as follows:

58.1.  Wairoa River and streams scheme – $120k for the extension of the rock wall bank protection of the true right of the Wairoa River upstream of the mouth.

58.2.  Ohuia- Whakaki – $277k for renewal works including pump installations, power supply and pump station screens.  

59.      Financial Assessment: The Wairoa scheme opex budget was underspent by $120k, and it is this budget that is requested to be carried forward and converted to capex. The Ohuia-Whakaki workstream was underspent by the amount of carry forward requested above.

60.      Recommendation: That Council approves the carry forward of $120k from the Wairoa river and streams scheme reserve (representing the unspent targeted rates collected in 2022-2023) and $277k from the asset replacement reserve.

Flood risk assessment & warning - (capex – 4)

61.      Asset Management seeks to carry forward $113k for software developments for flood forecasting, where the project was not started due to reprioritisation of staff capacity for the cyclone response. 

62.      Financial Assessment: The flood risk assessment and flood forecasting workstreams were underspent by the amount of carry forward requested above.  There is no budget for this work in the 2023-2024 annual plan. 

63.      Recommendation: That Council approves the carry forward of $113k from the general reserve. 

Forestry - (capex – 5)

64.      Asset Management seeks to carry forward $45k for the development of roading and access for three blocks around the Devil’s Elbow due to be harvested, which were unable to be accessed due to closures of SH2 following the cyclone.

65.      Financial Assessment: The forestry capex workstream was underspent by the amount of the carryfoward requested.

66.      Recommendation: That Council approves the carry forward of $45k from the long-term investment fund reserve. 

Regional cycleways - (capex – 6)

67.      Asset Management seeks to carry forward a total of $115k for the extension of the Ngaruroro explorer cycleway, which will be progressed once repairs on the cyclone-damaged section of the trail are completed.  This project has co-funding contributions from MBIE and Hastings District Council and is the only such project still supported by MBIE. Other cycleway projects will be reassessed as part of the LTP as a reflection of the withdrawn MBIE cofounding.

68.      Financial Assessment: The regional cycleways capex budget was not spent in 2022-2023.

69.      Recommendation: That Council approves the carry forward of $115k from the general reserve.

Regional Parks - (capex – 7)

70.      Asset Management seeks to carry forward a total of $707k for Regional Park developments unable to be progressed in 2022-2023:

70.1.  Hawea Historical Park and Waitangi Park (toilet block) – $605k

70.2.  Ahuriri Regional Park, – establishment of project manager for planning work – $102k

71.      Whilst the budgets are being carried forward the drawdown of the loan and actual spending will need to be consistent with decisions around new infrastructure in Open Spaces being framed in the preparation of the LTP.

72.      Financial Assessment: The $707k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.  

73.      Recommendation: That Council approves the carry forward of $707k of loan funding.

IRG – Heretaunga Plains Flood Control Scheme (HPFCS) and gravel extraction - (capex – 8)

74.      Asset Management seeks to carry forward a total of $1.101m for the planned programme of works for HPFCS improvements and Upper Tukituki gravel extraction, which was significantly impacted by the cyclone.  This multi-year programme of work is co-funded by Kanoa/MBIE, and an extension to the funding deadline will be sought. 

75.      Financial Assessment: The $889k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.  

76.      Recommendation: That Council approves the carry forward of $889k of loan funding and $212k of HPFCS scheme reserves funding.

Office renovations (including furniture & fittings) - (capex – 9)

77.      Corporate Services seeks to carry forward a total of $730k for the accommodation refurbishment project postponed due to consent and engineering report delays.

78.      Financial Assessment: The accommodation and furniture & fitting workstreams were underspent by the value of the carry forward request above. The $566k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.  

79.      Recommendation: That Council approves the carry forward of $566k of loan funding and $164k of asset replacement reserves funding.

Radio network - (capex – 10)

80.      Corporate Services seeks to carry forward a total of $44k for the final deliverables of Project Tarsier.  

81.      Financial Assessment: The RT Network capex workstream was underspent by $234k in 2022-2023.

82.      Recommendation: That Council approves the carry forward of $44k asset replacement reserves funding.

ICT network & equipment - (capex – 11)

83.      Corporate Services seeks to carry forward a total of $72.5k for the purchase of extended hardware warranty support. This will improve the resilience of the ageing parts of our ICT infrastructure.

84.      Financial Assessment: The Servers & Storage capex workstream was underspent in 2022-2023 by the amount requested to be carried forward.

85.      Recommendation: That Council approves the carry forward of $72.5k asset replacement reserves funding.

Aerial imagery - (capex – 12)

86.      Corporate Services seeks to carry forward a total of $104k for the acquisition of aerial imagery. This will be necessary to develop models and storage systems to support the increased volume of datasets collected following Cyclone Gabrielle.

87.      Financial Assessment: The $104k loan funding was not drawn in 2022-2023, but repayment and interest costs have been accounted for in the 2023-2024 annual plan as if it had been.

88.      Recommendation: That Council approves the carry forward of $104k loan funding.

Options Assessment

89.      Option 1: Council approves the carry forwards as proposed from 2022-2023 to 2023-2024 to enable all the projects to be completed, service levels to be achieved, commitments to external organisations to be fulfilled and the future work to be funded), acknowledging this would require a drawdown of accumulated funds to fund the general and external funded expenditure.

90.      Option 2: Council approves the carry forward of reserve, debt and externally funded expenditure only, leaving the general-funded carry forward expenditure requests to be reprioritised through 2023-2024 annual plan budgets.

91.      Option 3: Council does not approve the carry forwards as proposed and provides officers with guidance on which carry forwards, if any, should be approved.

Financial and Resource Implications

92.      Debt funded expenditure can be carried forward with no impact to the ratepayer in future years as the repayment of these funds have already been included in the LTP and Annual Plan.

93.      Funding from reserves can be carried forward with no impact, as the expenditure has not been drawn from the reserve and is therefore available to be drawn in 2023-2024 instead.

94.      Funding from targeted rates will be automatically carried forward through the associated reserve to enable the funds to be drawn down to complete the work in subsequent years.

95.      The carry forward of $2.640m in general funding and $0.863m in external funding from 2022-2023 to 2023-2024, will impact the general reserve as there is not expected to be a surplus of general funds for the 2022-23 financial year.  The actual quantum of the general fund deficit will be confirmed once the final funding and reserve movements have been completed for the Annual Report.

96.      Approved general funded and external funded carry forward requests would be funded from the general reserve in 2023-2024, drawing from accumulated funds.

Decision Making Process

97.      Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded:

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

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

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

121.4     The persons affected by this decision are Council’s ratepayers.

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

Recommendations

1.      That the Council receives and notes the 2022-2023 Carry forwards staff report.

2.      The Hawke’s Bay Regional Council:

2.1.     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.

2.2.     Approves the carry forward of all expenditure requests from the 2022-2023 to the 2023-2024 budget, being:

Operating expenditure carry forward requests

Activity / Project		Amount Requested	Source of funds
			General	Reserve	External	Debt
Integrated Catchment Management (ICM)
1	Biodiversity	$429,000			$229,000	$200,000
2	Predator Free Hawkes Bay	$423,000			$423,000
3	Land for life	$277,000		$277,000
4	Environmental Science data models	$502,000				$502,000
5	Environmental Enhancement Programme	$320,000	$208,000		$112,000
6	Land research & investigations	$99,500			$99,500
Asset Management
7	Central & Southern Rivers – flood protection	$30,000	$ 3,750	$26,250
8	Regional Water Security	$3,500,000		$3,500,000
Governance & Partnerships
9	Tangata Whenua Partnerships	$450,000	$450,000
Policy & Regulation
10	Kotahi (policy & planning)	$1,050,000	$1,050,000
Transport
11	Passenger Transport	$763,000			$763,000
Corporate services
12	Software-as-a-service development	$500,000				$500,000
Total		$8,343,500	$1,711,750	$3,803,250	$1,626,500	$1,202,000

Capital expenditure carry forward requests

Activity / Project		Amount Requested	Type of funding
			General	Reserve	Debt
Integrated Catchment Management (ICM)
1	SOE Ground water monitoring drilling	$275,000		$208,000	$67,000
2	Enviro info technical equipment	$102,000		$102,000
Asset Management
3	Flood protection schemes	$397,000		$397,000
4	Flood risk assessment & warning	$113,000	$113,000
5	Forestry	$45,000		$45,000
6	Regional cycleways	$115,000	$115,000
7	Regional Parks	$707,000			$707,000
8	IRG – HPFCS and gravel extraction	$1,101,000		$212,000	$889,000
Corporate Services
9	Office renovations (including furniture & fittings)	$730,000		$164,000	$566,000
10	Radio network	$44,000		$44,000
11	ICT network & equipment	$72,500		$72,500
12	Aerial Imagery (GIS)	$104,000			$104,000
Total		$3,805,500	$228,000	$1,244,500	$2,333,000

 

2.3.     Notes that officers may come back to Council to approve bringing forward some LTP funding if required to maintain momentum in the delivery of tangata whenua engagement regarding te mana o te wai.

 

 

 

Authored by:

Amy Allan Senior Business Partner

Chris Comber Chief Financial Officer

Approved by:

Nic Peet Chief Executive

 

Attachment/s

There are no attachments for this report.

 

Wednesday 27 September 2023

Subject: Strategic Projects Report to 31 August 2023        

 

Reason for Report

 

1.      This agenda item presents the Project Management Office’s (PMO) Strategic projects report to 31 August 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 January 202 and July 2023. *Risk status is inherent (eg. prior to mitigations and controls implemented) vs residual.

1.  

1.  

1.  

Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
1.    HBRC Recovery Programme (Monthly reporting)	l		u	u		Apr		May		Jun		Jul
					Sch	l		l		l		l
					Risk	l		l		l		l
					Bud	l		l		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 – the focus this month was working through a large number of land categorisation reassessment requests, and working closely with TLAs to notify affected landowners of their outcome. Our principal engineer has undertaken many site visits to assess and talk to property owners, as well as phone calls. Scoping and planning for the 2nd edition of the Environmental Resilience Plan is complete. Plan writing will commence in September. Community engagement will begin mid-late September. The development of mini business cases for recovery initiatives is ongoing due to be complete by mid-September. Risk - additional funding confirmation won’t align with LTP budget review timeframe. Community having low appetite for engagement for Environmental Resilience Vision for HB, due to the level of engagement that has occurred over the past 6 months. Many communities will not be ready to discuss long-term goals for their communities. Budget - the RRA has been discussing additional funding for the recovery initiatives that are outside of the Crown cost-share offer. Early indication is that more funding at this time is unlikely and we will need to revisit this with the new incoming government early next year.
Project/Programme Title	Schedule	Risk*		Budget	Status Change over last 6 months
2.    Recovery Claims - Insurance (Monthly reporting)	l		u	l		Apr		May		Jun		Jul
					Sch	l		l		l		l
					Risk	l		l		l		l
					Bud	l		l		l		l
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.
Schedule – we have onboarded five resources so far to this project. Staffing has been tricky here due to the fixed term nature and other BAU commitments. We now have one dedicated resource with a second being onboarded to assist part time. Risk – data accuracy is an ongoing risk for the project. Our Project team have been working with Assets team to unify both financial data with operational information with a number of BI dashboards being created. There is a huge amount of information to collate and assess quality of data to ensure accurate information. Budget - a prepayment of insurance of $4.25m has been proactively given (in April) to HBRC by Insurance.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
3.    Recovery Claims - NEMA (Monthly reporting)	l		u	l		Apr		May		Jun		Jul
					Sch	l		l		l		l
					Risk	l		l		l		l
					Bud	l		l		l		l
Project summary: This is a project to recover costs incurred through CDEM response (and HBRC) including response costs for infrastructure.
CDEM – Welfare Claims ·   Total CDEM – welfare costs to date are $8.5m and of this we have identified $6m is recoverable. ·   NEMA has to date paid HBRC $4 million for welfare claims with a further $2 million with NEMA for review. The $2 million outstanding claim is for helicopter operator invoices. INFRASTRUCTURE ·   NEMA advised HBRC that Works Group costs are not claimable under Section 33 of the Emergency Management reimbursement framework given Works Group is an internal Council cost. ·   To date, HBRC have spent $39m on infrastructure repairs across an array of our assets. ·      Stop banks $27m ·      Pump stations $3.8m and ·      Drains/culverts $3.5m ·   There are some complexities in and around the claim process and the hierarchy of funding that applies in particular to ‘flood critical’ assets (such as stopbanks and pump stations). Due to the different policies these sit under there are different ways we have to claim these.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
4.   IRG Flood Control & Drainage Programme (Monthly reporting)	u		u	u		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
Project summary: Project 1: Heretaunga Flood Control & Drainage Scheme We are reviewing and where appropriate upgrading flood protection assets across the Tūtaekurī, Ngaruroro, Lower Tukituki and Te Awa o Mokotūāraro (Clive) rivers, with the intention of increasing the level of service with regard to flood protection across the scheme. 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 programme. Physical works for the Ngatarawa Stopbank Upgrade progressed well and will now be complete at the end of September, two months early. The planting of native trees at Ngatarawa and Taradale has been completed. The development Cultural Impact Assessments for Moteo and Omarunui has recommenced. Confirmation of an extension to the funding deadline and/or additional tranches of funding is awaited before any new initiatives are commenced. Risk - work currently underway will not be completed in the current funding window. Confirmation of an extension to the funding deadline and/or additional tranches of funding is awaited before any new initiatives are commenced. We are in 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. Resourcing, both internally and externally will constrain the programme in the foreseeable future.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
5.   Kotahi Plan (Monthly reporting)	u		u	l		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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 - a variation to the Mohaka contract is proposed which will focus on stages 1 & 2 of the engagement programme. Work continues to progress on other contracts. Risk - as teams, mana whenua and the wider community begin to transition out of recovery, resourcing risk for necessary Visions & Values work needs to be managed.        Budget – it is envisaged that contracts with PSGEs/taiwhenua will be in place prior to year-end to support the delivery of locality plans incorporating visions and values for freshwater plan development.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
6.    Land for Life (Monthly reporting)	l		u	u		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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 project is on time with business case is complete and is being socialised by HBRC, government and TNC to consider whether to scale the project. Risk - HBRC, TNC and government decide not to fund and move forward with the project. May need to consider alternative phasing and costing scenarios for the project. Budget - subject to roll over of last year's funds and decision from Council about whether to support additional funding through LTP process.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
7.    Regional Water Security Programme (Monthly reporting)	u		u	n		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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: Consent decision issued. MAR Resource consents now granted. Media Release and social media issued post resource consent decision. Relatively low-key release. Joint communications with Kānoa, CHBDC and Tamatea Taiwhenua. Detailed design phase to commence – Technical Site Investigation Proposals sought.    Ongoing Landowner engagement in preparation to site investigations / detailed design phase. Budget review in light of extended concept / consenting processes, inflation and escalation of construction estimates. Go/No Go decision point to be made when detailed designs have been confirmed and costed for construction and three-year operation. Heretaunga Water Storage: Damwatch Engineering, independent technical peer reviewers, provided draft report and feedback on the Tonkin & Taylor Stage 2 technical study for Option 3 Dam site. Awaiting issue of final report (delayed and due Sep). Anticipate Kānoa loan funding of $200k to be processed in Aug/Sep. HBRC budget expected to be expended. Regional Water Assessment (RWA): A Water Demand Assessment report focused on the Industrial and Territorial water users has been issued. HBRC data to be confirmed to finalise report. Internal discussions conducted to better understand current and potential levers already used to manage demand. Draft memo for HBRC’s ELT is being prepared for discussion. Memo delayed and anticipate discussions to be held with Exec in late September/October depending on availability. 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.   Transport Choices (monthly reporting)	u		u	l			F/M		Apr		May		Jun	Jul
					Sch		l		l		l		l	l
					Risk		l		l		l		l	l
					Bud		l		l		l		l	l
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.
Schedule – behind schedule but will be delivered to the final timeframe required. Risk - delays in getting the designs from the manufacturer. Waka Kotahi requiring more supporting information. Safe System review also has some issues. We plan to continue to communicate with parties involved to make this as efficient as possible. Budget - due to the late handover to the incoming Transport Manager we have had to take a more generic view of standardising the shelters rather than pursuing a custom build. This will mean the cost per shelter is lower than originally estimated.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
9.   Revenue & Financing Policy/ Rates Review (Monthly reporting)	l		u	l		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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 – this project is on schedule with two workshops in August. The first was covering the big areas of flood protection & control works, and drainage & pumping. The second workshop covered sustainable land management, biodiversity, biosecurity, primary production pests, and fees & charges relating to consents, compliance and maritime safety. However, an additional workshop has been set up to cover a discussion on the Fees & Charges schedule relating s36 science charges (set for 20 September). Risk – the main risk remains the reliance on one or two people for the modelling. Staff are prioritising this work on modelling where possible and delivery spread over two or more workshops. Budget - the budget for this project is resourced from existing Finance budget. An external contractor has been engaged to facilitate the workshops and process.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
10. Emissions Reduction Plan (Monthly reporting)	n		u	l		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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 emissions reduction plan is largely paused until guidance is received from the Climate Action joint committee. A wānanga for the committee to set a purpose and vision for their work is planned for October and there is a joint committee meeting in December. Any project progress or updates will be reported as and when anything noteworthy occurs. Risk – please see above Budget – please see above
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
11. Enterprise Asset Management (Monthly reporting)	l		n	l		Jan		F/M		Apr		May		Jun	Jun
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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 – project schedule is on track. Work continues on the design of the Work Model & Product Lifecycle Management. Asset Register moved to pre-production with testing completed for CAB sign-off into production. Risk – financial architecture interface issue unresolved and escalated to the Steering Group. Work with stakeholders and consultants to determine optimum solution. Budget - on track.
Project/Programme Title	Schedule		Risk*	Budget	Status Change over last 6 months
12. Synergy (Monthly reporting)	u		n	l		Jan		F/M		Apr		May		Jun	Jul
					Sch	l		l		l		l		l	l
					Risk	l		l		l		l		l	l
					Bud	l		l		l		l		l	l
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) is almost complete and will be going live early September. Finance: General agreement to set up project team to revisit financial architecture as a result of implementing Asset Management - we believe this will help Finance better understand and utilise the Chart of Accounts, which likely means apart from Payroll, Synergy will pause. Payroll: First draft of audit report has been received and we are working through what has been raised focusing first on another review of the payroll components. Legacy Apps: NAV Viewer has been decommissioned. Other: WalkMe Implementation is still underway. Risk - limited resource continues to be a risk. Finance resource essential for the review of financial architecture. Pause financial elements of Synergy and refocus resource on the financial architecture work. SEAM and Finance will need to work closely to ensure both pieces of work are aligned. Budget - on track. ABBYY, WalkMe and Atturra consulting within budget. If anything we have been underspending due to slower pace.   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.

 

Key Strategic Projects - pipeline
Title	Group	Estimated Start
Freshwater Farm Plans (formerly Farm Environment Farm Plans)	Policy & Regulation	July 2024
Regional Water Efficiency Programme (Future Water Use)	Asset Management (Water Security)	TBC
Biosecurity Information System	Integrated Catchment Management	TBC
Te Awa o Mokotūāraro (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

1.        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 31 August 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.

Wednesday 27 September 2023

Subject: Significant organisational activities through October 2023        

 

Reason for Report

1.        The following commentary is for councillors’ information to highlight significant areas of Council activity, particularly initiatives that have 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 and Pākōwhai Drainage Areas has commenced using a consultant. 2.       The review has been split, with the Awatoto area being worked on first. It is expected that this will be completed by the end of September. 3.       The Pakowhai review will be completed by the end of October.	Regional Assets
Wairoa	4.       Scheme reviews are being carried out on Opoho and Ohuia schemes by PDP. 5.       A hydrological review of the Mahanga wetland and stream is underway, also by PDP. 6.       The Silt Taskforce has set up a specific team in Wairoa to manage woody debris. This is focusing on 4 areas – Wairoa, Mohaka, Mahia and 12 bridge sites. 7.       Ohuia Pump Station screen renewal and culvert repair in progress. 8.       Scheme ratepayer meetings scheduled for Ohuia (26 September) and Kopuawhara (October 2023). 9.       A team has been formed by HBRC and WDC staff to explore flood resilience in Wairoa. This has now been incorporated into the land categorisation process and is working to help facilitate the optioneering of design solutions.	Operations / Regional Assets
Central Hawke’s Bay	10.    Waipawa River at SH50 scour and erosion repairs are in progress.  Discussions are underway with NZTA regarding funding for river work upstream of the SH50 bridge, to ensure that the Waipawa River maintains its alignment. 11.    Makara Dam #4 – dewatering is ongoing to allow outlet repair and desilting to be undertaken. This work has been assigned to the Regional Projects team, and a project manager has been assigned. 12.    Upper Tukituki Scheme Review is underway. T&T are conducting the review. A meeting has been set up with CHBDC to develop the final scope of the review.	Operations / Regional Assets
Napier Meeanee NCC MOU	13.    PDP has been engaged by NCC to develop the business case for asset transfer. 14.    Progress is slow given recovery priorities of both Councils	GM
Gravel extraction	15.    Tangata Whenua Gravel Operational Group Hui’s second meetings scheduled for 20/21 September. 16.    Consent/industry meeting scheduled for 27 October. 17.    Gravel extraction authorisations for 2023-24 year are being processed in large numbers, including facilitating the Tukituki River Controlled Area Notice.	Operations
Hastings Karamu Scheme Review	18.    The HPFC scheme review is underway. T&T are conducting the review. Elements of the Karamu will be reviewed as part of the HPFC scheme review.	Regional Assets
Cyclone Gabrielle Response	19.  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. This work is progressing well with all scours in the Heretaunga Plains likely to be completed by October, weather permitting. 20.  Breach and scour repairs in Central Hawke’s Bay are well advanced with one remaining breach site having been delayed due to wet weather and high river levels.  Several breach sites that were on hold awaiting technical review have been released and work is now underway on these repairs. 21.  Further asset inspections have been carried out, and the inspections analysed and prioritised. 22.  So far over 1800 inspections have been completed and 153 work packages developed. 23.  A review of the pumpstations at Pakowhai, Mission and Brookfields is underway, as noted above. The outcome of the review will inform future development around those pumpstations. 24.  The drain silt excavation programme is in progress; currently working in the Moteo area 25.  Asset Management maintenance contracts 2023-24 have been finalised. 26.  Wood waste removal from the rivers is being coordinated through the silt taskforce.	Regional Assets/ Operations
Regional Parks	27.    Pekapeka: Main carpark is open to the public, however, major damage to boardwalks still requires repair. 28.    Tūtira:  Still closed due to significant damage and access issues due to blocked outlet. Working with MPI/HBRC Science. 29.    Spring Equinox Karakia at the Ātea a Rangi - Watangi Regional Park - 5.30 am on Friday 22 September.	Regional Projects/ Operations
Cycle Networks	30.    A second Managing Great Rides (MGR) Extreme Events application for $1,925,570 was made to MBIE in June for repairs to closed sections of trails 30% or 58km. MBIE approved funding September 2023. 31.    NOTE: The $1.926 million includes redirected MBIE funding of $750,000. This is from the $1,343,324 funding from the NZCT Fund approved in February 2019 Business Case for three extensions to the Hawke’s Bay Trails. 32.    The $750,000 was allocated towards two of the three approved-in-principal projects: the Bayview to Whirinaki extension and the Karamu Stream Extension. This leaves only $593,324 approved-in-principal for the co-funding of Ngaruroro Explorer project only. 33.    Total of $2.219 million (1. $293k May 23 & $1.926 M Sept) for repairs to Hawke’s Bay Trails Great Ride network.	Regional Assets / Operations

 

 

Integrated Catchment Management Group
Project /Activity description	Significant upcoming milestone(s)	Team or Section
Hill Country Erosion Fund (HEF)	34.    Milestone report to be completed with invoice by 30 September.	Catchment Management
Soil Conservation Nursery	35.    Pole shed consent in process due to be completed. 36.    Fires assessment to be completed. 37.    Planting another 7k poles in the Harris block.	Catchment Management
Erosion Control Scheme	38.    This winter’s planting and associated works will be inspected over the next three months. Seedling establishment management is ongoing. ECP works targeted for the summer months will be developed and finalised.	Catchment Management
Hydrology and Water Quality	39.    Telemetry sites continue to be rebuilt and/or upgraded and digital mobile radios are being installed in the southern area to give better coverage. 40.    Scoping and testing to install more camera sites continues, this will enable monitoring of river conditions and heights at selected sites and the data will be put onto HBRC web. 41.    Water Quality and Ecology team will continue its extra sampling to accurately define changes in streams and rivers.	Environmental Information
Science	42.    In collaboration with NIWA, an air quality monitoring site, measuring PM10, has been installed at Waiohiki to capture post-cyclone impacts on air quality in the area. Data communication is currently being worked on with NIWA.	Environmental Science
Biosecurity	43.    Alligator weed - Lake Whatumā. EPA monitoring plan/risk assessment for aquatic control work is being worked on in conjunction with an external provider. 44.    Contract signed for CNG review with contractor and review progressing. 45.    Biosecurity have begun rook surveillance work across the region prior to rookery control via helicopter. 46.    The Controlled Area Notice allowing cyclone recovery-related gravel extraction from the Tukituki/Waipawa rivers has been extended in duration and amended. Eligibility criteria has been adjusted to allow more cyclone affected landowners in the wider Tukituki catchment to apply for gravel from the area for recovery-related works.	Biosecurity
Biodiversity and Priority Ecosystems	47.    A consultant has been engaged and ground truthing of the region’s priority ecosystem sites is underway with the Central Hawke’s Bay area being the first area targeted.	Biodiversity
Community Engagement	Rural Recovery Team 48.    Rural Recovery Team (RRT) delivery of Community Engagement events and workshops in collaboration with Rural Advisory Group and Territorial Authorities. 49.    RRT remains active participation and contribution to the Rural Advisory Group and the Horticulture Advisory Group. RAG has recently undertaken a facilitated assessment of its response to Cyclone Gabrielle, and a report on this is expected by the end of October 2023.  50.    There are three Rural Advisors as part of the HBRC Rural Recovery Team. There is one based in Wairoa, covering the Northern Region, and this role is a part time contracted role. There is a second Advisor based in the Central Region, and this role is a permanent HBRC staff member. There is a third Rural Advisors allocated to the Southern Region based in Waipawa, and this role is a part time contracted position. Advisors can work with individual landowners, catchment and community groups to act as connectors to HBRC services, resources and information.  51.    RRT facilitated workshops in Waikare and Waipukarau to assist landowners understand and complete their funding applications for the Silt & Debris fund application. These were well received by the community with around 15 attendees at Waikare and nearly 30 attendees in Waipukarau (these were held in the last 10 days of the fund being available and were supported by Gus Charteris).	Rural Recovery
Resilient Land Businesses	52.    Rural Recovery Advisors (as part of RRT). There is one based in Wairoa, covering the Northern Region, and this role is a part time contracted role. There is a second Advisor based in the Central Region, and this role is a permanent HBRC staff member. There is a third Rural Advisors allocated to the Southern Region based in Waipawa, and this role is a part time contracted position. Advisors can work with individual landowners, catchment and community groups to act as connectors to HBRC services, resources and information. 53.    RRT have been working closely with a group of cropping farmers in Wairoa severely impacted by Cyclone Gabrielle. There are eight cropping farmers who are working to identify land use and restoration options. 54.    RRT has been working collaboratively with LandWISE Micro-Farm to understand impacts on soil health (soil testing) and options to return silt/sediment-impacted land to use. Areas being researched – Wairoa, Esk Valley, Swamp Road, Okawa. Early indications are of low nutrient status and low levels of organic matter in impacted soils.	Rural Recovery

 

 

Policy and Regulation Group
Project /Activity description	Significant upcoming milestone(s)	Team or Section
Plan Change 9 (TANK plan) appeals	55.    HBRC has commenced proceedings with the Environment Court and appellants. There are sixteen appeals and over 600 individual appeal points. There are 25 parties that have joined as interested parties to one or more of those appeals. 56.    Dates for Court-assisted mediation sessions are yet to be scheduled and we have informed the Court that we can accommodate an October start.	Policy
Plan Change 7 (Outstanding waterbodies) appeals	57.    Four appeals were lodged with the Environment Court. The Court had originally scheduled a hearing to commence on or after 20 November 2023, but that is now more likely to be postponed into Feb-April 2024 due to limited Court availability. HBRC and the Appellants have circulated their respective experts’ evidence. Other interested parties and HBRC’s rebuttal evidence is due to be circulated later this year.	Policy
Napier-Hastings Future Development Strategy (FDS)	58.    Next meeting of the FDS Joint Committee is currently scheduled for 31 October 2023. In meantime, FDS project team leads from three councils are undertaking some preliminary public engagement and engagement with Treaty partner groups. That engagement is focusing on key issues and options for urban development, plus following up with those parties that had responded to an earlier ‘call for opportunities’ (i.e. preliminary nominations for potential sites of future growth).	Policy
Ngaruroro River Water Conservation Order (WCO) High Court appeal	59.    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
Spatial Planning Act and Natural and Built Environment Act passing into legislation	60.    In September, the following new Orders in Council under Severe Weather Event Recovery Legislation Act (SWERLA) were gazetted:   Severe Weather Emergency Recovery (Waste Management) Order 2023 Covering silt and debris disposal and temporary sorting sites, including those by HBRC/Taskforce (commencing 20 Sept 2023).   Severe Weather Emergency Recovery (Resource Management—Time Extensions) Order 2023 Covering extensions for RMA prosecutions, some stock exclusion regulations, national planning standards and freshwater planning instruments (including an extension from 31 Dec 2024 to 31 Dec 2027 for HBRC to publicly notify a freshwater planning instrument to implement the 2020 National Policy Statement for Freshwater Management).   Severe Weather Emergency Recovery (Resource Management—Extension of Water Permits) Order 2023 Covering extensions for late applications for replacement water permits in TANK catchment area.   Severe Weather Emergency Recovery (Resource Management—Streamlined Planning Process) Order 2023 A special RMA plan-making process for providing for accommodation of displaced residents and papakāinga housing.	Consents Compliance and Enforcement Policy Planning Policy Implementation

 

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 September 2023 staff report.

 

Authored by:

Mell Anderson Project Manager Hill Country Erosion Scheme	Paul Barrett Principal Consents Planner
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	Malcolm Miller Manager Consents
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	Andrew Burton Catchment Management Lead - Central

Approved by:

Katrina Brunton Group Manager Policy & Regulation	Chris Dolley Group Manager Asset Management
Anna Madarasz-Smith Manager Science

 

Attachment/s

There are no attachments for this report.  

Wednesday 27 September 2023

Subject: Recommendation from the Corporate & Strategic Committee - HBRIC Chairperson Appointment      

That Hawke’s Bay Regional Council excludes the public from this section of the meeting, being Agenda Item 12 Recommendation from the Corporate & Strategic Committee - HBRIC Chairperson Appointmentwith 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
Recommendation from the Corporate & Strategic Committee - HBRIC Chairperson Appointment	7(2)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.

 

 

Authored by:

Allison Doak Governance Advisor

Approved by:

Desiree Cull Strategy and Governance Manager