Agenda of Hawke's Bay Regional Council meeting

Meeting of the Hawke's Bay Regional Council

Date: 29 May 2024

Time: 9.00am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Title Page

1. Welcome/Karakia/Housekeeping/Apologies/Notices

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Extraordinary Hawke's Bay Regional Council meeting held on 10 April 2024

4. Call for minor items not on the Agenda 3

Decision Items

5. Corporate & Strategic Committee recommendations to Council 5

6. Affixing of Common Seal 7

7. Report from the Risk and Audit Committee 9

8. Summary report from the Clifton to Tangoio Coastal Hazards Strategy Joint Committee 13

9. Submissions received on our recovery focussed three-year plan 19

10. Hearing of submissions on our recovery focussed Three-Year Plan 2024-2027 23

Information or Performance Monitoring

11. Discussion of minor items not on the Agenda

Hawke’s Bay Regional Council

29 May 2024

Subject: Corporate & Strategic Committee recommendations to Council

Reason for Report

1. The following matter was considered by the Corporate and Strategic Committee (C&S) meeting on 15 May 2024 and the recommendations agreed are now presented for Council’s consideration alongside any additional commentary that the Committee Chair wishes to offer.

Agenda item for Council decision

2. The Future of Severely Affected Land (FOSAL) delivery decision item provided an outline of how the Infrastructure Programme Management Office (IPMO) is going to work to deliver the projects agreed by the $250M contract with central government, how reporting and decision-making will be managed, and sought two decisions on increased delegations for the Chief Executive. Discussions covered:

2.1. Proposed to retain current reporting lines – financial and Group of Activities (GOA) levels of service reporting will be to the Corporate & Strategic Committee as part of the quarterly financial and organisational performance reports, infrastructure delivery progress reports will go to the Environment & Integrated Catchments Committee and risk and assurance matters will be reported to the Risk & Audit Committee, with any decisions to be escalated by those committees to Council by way of recommendations.

2.2. The North Island Weather Events (NIWE) Programme Board (PB) will provide direction and the decision-making required within the NIWE framework. The Programme Assurance Group (PAG) will provide oversight and monitoring of the programme, PB and the Assurance Management Plan, including using health checks, phase gate reviews, technical assurance, and risk reviews. The PAG will include two external representatives.

2.3. A requested increase to $15M delegation to CE (from $10m) for use within the boundaries of what Council has already agreed (in the LTP). If anything arises that goes over what has been agreed, then that will go to Council for decision-making.

2.4. The by exception delegation will be used within the NIWE programme only, and only if there are time constraints that mean decisions can’t go to a Council meeting. This is to remediate risks of delays.

2.5. The pace of procurement was discussed and that the IPMO will have a panel of contractors that will be used, which will be identified based on quality, price and availability to meet HBRC requirements.

3. The Corporate and Strategic Committee resolved the following recommendations that Council:

3.1. Increases the financial delegations to the Chief Executive to $15m as they pertain to the NIWE Resilience Programme (NIWE) only, to enable contract execution and loading of purchase orders and payments.

3.2. Agrees that approval by exception is delegated to the Chief Executive for contracts beyond $15m, solely within the NIWE Resilience Programme and pertaining to the Future of Severely Affected Land agreement of $250m and documented in the council’s Three Year Plan 2024-2027, to enable contract execution and loading of purchase orders and payments.

Decision-making process

4. 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:

4.1. Given the item was specifically considered by the Corporate and Strategic Committee on 15 May 2024 the Council can exercise its discretion and make the relevant decisions in accordance with the following recommendations.

Recommendations

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

1. Receives and considers the following 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.

Future of Severely Affected Land (FOSAL) delivery

3. Increases the financial delegations to the Chief Executive to $15m as they pertain to the North Island Weather Events Resilience Programme (NIWE) only, to enable contract execution and loading of purchase orders and payments.

4. Agrees that approval by exception is delegated to the Chief Executive for contracts beyond $15m, solely within the North Island Weather Events (NIWE) Resilience Programme and pertaining to the Future of Severely Affected Land agreement of $250m and documented in the Hawke’s Bay Regional Council’s Three Year Plan 2024-2027, to enable contract execution and loading of purchase orders and payments.

Authored by:

Leeanne Hooper

Team Leader Governance

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

Hawke’s Bay Regional Council

29 May 2024

Subject: Affixing of Common Seal

Reason for report

1. 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

Leasehold Land Sales

1.1.1 Lot 2

DP 14614

CT G2/1408

- Agreement for Sale and Purchase

1.1.2 Lot 62

DP 12780

CT E1/742

- Agreement for Sale and Purchase

4595

4596

4 April 2024

9 April 2024

2. 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.

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

3.1. 1 cross lease property was freeholded, with 60 remaining on Council’s books

3.2. No single leasehold properties were freeholded, with 75 remaining on Council’s books. This total increased as the remaining leaseholder on the cross lease that sold became a single leasehold.

4. The Agreement for Sale and Purchase transactions have been for properties that have subdivided, moving from cross lease to a single lease.

5. No single leasehold properties were freeholded, with 75 remaining on Council’s books. This total increased as the remaining leaseholder on the cross lease that sold became a single leasehold.

6. The Agreement for Sale and Purchase transactions have been for properties that have subdivided, moving from cross lease to a single lease.

Decision-making criteria

7. 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:

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

7.2. 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

7.3. 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.

Hawke’s Bay Regional Council

29 May 2024

Subject: Report from the Risk and Audit Committee

Reason for report

1. The following matters were considered by the Risk and Audit Committee (RAC) on 1 May 2024 and are now presented for the Council’s information.

Agenda items for Council decision

2. The RAC did not consider any items requiring recommendations to Council for decisions.

Information items

3. The Treasury Compliance Report for the period 1 January - 31 March 2024 item presented the RAC with the compliance monitoring report for HBRC treasury activity and the performance of Council’s investment portfolio for the quarter ended 31 March 2024, and highlighted:

3.1. Short term external debt remains higher than normal given we continue to await NEMA and Insurance claim monies, and once Council’s credit rating is granted, rolling the $25M into longer term will achieve a $50k per year savings in interest. Insurance claims of ~$15M are expected to be paid before the end of June 2024.

3.2. Details of Council’s credit rating are being finalised with the HBRC-appointed credit rating agency Fitch and we expect that the credit rating will, once issued, give Council an interest rate discount of up to 20 basis points should a favourable outcome be achieved (such as a AA rating or above). Council staff continue to work with Fitch providing feedback on queries asked.

3.3. From a risk perspective Council queried the risks associated with a non-diversified investment portfolio and the risk of holding assets that provide a lower return (e.g Napier Port as an example) or whether the Council’s decisions were based on the level of risk being acceptable. Councillors noted that HBRIC investment strategy review will look to come back to Council should they deem this risk high or warrants attention in due course.

3.4. The Risk and Audit Committee resolved that:

3.4.1. The Risk and Audit Committee receives and notes the Treasury Compliance Report for the period 1 January – 31 March 2024.

4. The Health, Safety and Wellbeing update item presented progress transitioning the Council’s Health, Safety and Wellbeing Management Framework (HSWMF) to comply with the ISO 45001:2018 Occupational health and safety management systems requirements, the results of the ECAAS Certification Gap Analysis, and an overview of HBRC’s HSWMF including the roles of governors and Council staff. Discussions on the day traversed:

4.1. Transition to the ISO framework will be completed over the next two years as incorporated into the Health, Safety and Wellbeing team’s work plan.

4.2. The current HSWMF meets the legislative requirements, however, gaps are known to exist in meeting the ISO requirements in the following:

4.2.1. future internal audits will need to be conducted against ISO45001.

4.2.2. Work Methods need to detail the exact requirements of the procedure, inherent risks, and the controls related to a specific task. As the specifics are mapped, HBRC must also evaluate its compliance with the requirements. Compliance evaluation outcomes will feed into the requirements for monitoring, measurement, analysing, evaluation, and management review.

4.2.3. The current change management process will need to be redefined.

4.2.4. Under ISO45001, non-conformances are not limited to just incidents (injury, damage, near miss etc) but also include any instances of not meeting the performance measures of the HSWMS itself. A process to record HSWMS non-conformances has been included in the Incident Report Form and will also feed into the requirements for monitoring, measurement, analysing, evaluation, and management review.

4.2.5. HSW objectives for management or similar need to be scoped and will be related to things such as completing investigations of incidents or closing out incidents within a specified time period.

4.3. Staff mental wellbeing initiatives have been extended to a wholistic view that includes whanau and are covered in the more detailed information underlying the one-page risk management plan.

4.4. The Risk and Audit Committee resolved that it:

4.4.1. Receives and considers the Health, Safety and Well-being update staff report.

4.4.2. Confirms that the actions taken to address the ECAAS Certification Gap Analysis findings are adequate in the circumstances explained.

5. The Enterprise Assurance update item covered the status of audit recommendations as well as the 2023-24 and proposed 2024-25 internal audit programmes, and discussions highlighted:

5.1. Two Section 17a reviews and a benchmarking exercise against other councils’ revenue and staffing are currently being scoped by ELT.

5.2. The Assurance Universe Dashboard provides a clear picture of the audits/reviews (including S.17a) completed and proposed for the future.

5.3. There was a s17a review of the Works Group in 2019-20 and all corrective actions have been completed and closed. Works Group is now part of the Asset Management Group, is ISO9001 certified, and their financials included in the quarterly financial reports that go to the Corporate and Strategic Committee.

5.4. The SEAM (asset module of TechOne) project is currently looking at solutions to integration issues between financial and day-to-day operational management within the system and has been extended to include Works Group.

5.5. The Risk and Audit Committee resolved that it:

5.5.1. Receives and notes the Enterprise Assurance update staff report.

5.5.2. Confirms that the Internal Assurance Corrective actions update report has provided adequate information on the status of the Internal Assurance Corrective Actions.

6. The Risk Management update item covered:

6.1. Background and context that reflects the fundamental role of the RAC to, firstly, ensure there’s an effective system of risk management in use within the Council and, secondly, to define what the RAC’s stance is on what the critical risks are and ensure those are effectively managed

6.2. A review to validate HBRC’s strategic risk profile found that common risk themes identified by other organisations were all reflected in our Enterprise Dashboard (strategic risk profile) or one-page management plans (risk assessments)

6.3. Effectiveness of Cyclone Gabrielle recovery (statement 5) has been removed from the risk profile as it was a ‘point in time’ and replaced with a re-worded statement 5 – effectiveness of (HBRC EOC) emergency management and a new risk statement 22 – effectiveness of the North Island Weather event resilience programme.

6.4. The Risk and Audit Committee resolved that:

6.4.1. The Risk and Audit Committee receives and considers the Risk Management update staff report.

7. The Committee then moved into Public Excluded session for in-depth discussions about IT and Cyber Security risk management, and an incident of non-compliance with the Holidays Act 2003. If councillors would like more detail on the discussions during the public excluded session they are able to access the related Agenda and Minutes documents on Stellar.

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 items were specifically considered by the Risk and Audit Committee on 1 May 2024.

8.2. Because this item is for information only, the decision-making provisions do not apply.

Recommendations

1. That Hawke’s Bay Regional Council receives and considers the Report from the Risk and Audit Committee, noting the resolutions of the Committee that:

1.1. Confirms that the actions taken to address the ECAAS Certification Gap Analysis findings are adequate in the circumstances explained.

1.2. Confirms that the Internal Assurance Corrective actions update report has provided adequate information on the status of the Internal Assurance Corrective Actions.

Authored by:

Leeanne Hooper

Team Leader Governance

Chris Comber

Chief Financial Officer

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

Hawke’s Bay Regional Council

29 May 2024

Subject: Summary report from the Clifton to Tangoio Coastal Hazards Strategy Joint Committee

Reason for Report

1. This item provides a summary of discussions (attached) that took place at the 15 March 2024 and 17 May 2024 Clifton to Tangoio Coastal Hazards Strategy Joint Committee meetings for the Council’s information.

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.

Recommendations

That Hawke’s Bay Regional Council receives and notes the Summary reports from the Clifton to Tangoio Coastal Hazards Strategy Joint Committee.

Authored by:

Simon Bendall

Coastal Hazards Strategy Project Manager

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

1 ⇩	Coastal Hazards Joint Committee meeting summary 15 March 2024
2 ⇩	Coastal Hazards Joint Committee meeting summary 17 May 2024

Hawke’s Bay Regional Council

29 May 2024

Subject: Submissions received on our recovery focussed three-year plan

Reason for report

1. This item provides the Council with:

1.1. an outline of the consultation process

1.2. 822 submissions received on Our recovery focussed Three-Year Plan 2024-2027 consultation

1.3. public comments on HBRC’s Facebook posts.

Officers’ recommendations

2. Staff recommend that the Council read and consider the submissions and social media feedback (included as two attachments) in preparation for the hearing on 29-30 May 2024 and to inform its decision-making at the deliberations on 18 June 2024. Analysis of and staff responses to submissions will made available prior to deliberations on 18 June 2024.

Background

3. At the extraordinary meeting of the Regional Council on 10 April 2024, the Council adopted for consultation the supporting information, draft policies, submission form, and the Consultation Document entitled Have Your Say Hawke’s Bay on our recovery focussed Three-Year Plan 2024-2027.

4. These documents form our long term plan consultation under the Severe Weather Emergency Recovery Legislation Act (SWERLA). The purpose of this temporary legislation is to enable the most affected councils to focus on cyclone recovery by replacing the normally 10-year long term plan with a three-year unaudited plan with some relaxed disclosure requirements. It recognises that it is too hard to forecast beyond three years with enough certainty to meet the standards under normal requirements.

5. As a result, the Hawke’s Bay Regional Council is producing an unaudited Three-Year Plan focused on supporting the community to recover and build resilience for future events. This includes pulling out all the stops to deliver the nearly $250M Flood Resilience Programme negotiated with the Government to support recovery from Cyclone Gabrielle and bolstering the HBCDEM Group funding by $1.3M over the three years of the plan on behalf of the region’s five councils.

6. The Consultation Document, draft policies and supporting information was the culmination of many months of work by councillors, tāngata whenua representatives of the Regional Planning Committee and the Māori Committee, and staff.

Consultation process

7. The public consultation ran from 8am Monday 15 April 2024 and was due to close 8pm Wednesday 15 May 2024. Staff extended the deadline to 6pm Thursday 16 May 2024 due to a glitch on our website for 40 minutes on the evening of 15 May 2024 where members of the public could not access the online form. A notice was put on our Facebook page advising of this and emailed submissions were accepted.

8. Staff used several platforms to encourage people to provide feedback, and further methods to engage our communities.

9. Formal submissions received are an important part of the process, however, the consultation process is the sum of all engagement undertaken.

10. Communication and engagement included:

10.1. a Have your Say Hawke’s Bay branded postcard mailed to all ratepayers (56,750 in total) encouraging people to read our Consultation Document and to make a submission. This included information on how to do so.

10.2. full consultation page on the HBRC website containing all the information relating to the consultation including access to the online submission form and a rates calculator.

10.3. a summary/submission handout with key information, Councillor contact details and the dates of the drop-in sessions - particularly useful at the face-to-face drop-in sessions.

10.4. an HBRC media release was sent out on 10 April 2024.

10.5. 12 drop-in sessions at Wairoa, Napier, Taradale, Flaxmere, Hastings, Havelock North, Waipawa, and Waipukurau. These were a deliberate move away from town-hall style meetings. The aim was to provide accessible opportunities for people to talk to councillors face-to-face. Sessions were held at different times during the day and evening, and in accessible venues such as a pop-up session on the corner of Emerson and Market Streets, Napier, at midday, and the Hawke’s Bay Farmers’ Market in Hastings on a Sunday morning.

10.6. targeted engagement in Category 2 flood scheme areas such as community meetings, newsletter and mailbox drop.

10.7. several councillors pre-recorded short video clips promoting the events used as part of our social media campaign. These received 12,253 views.

10.8. Chair Hinewai Ormsby and Councillor Neil Kirton both wrote a talking point published in Hawke’s Bay Today.

10.9. 20 print advertisements in Hawke’s Bay Today, Napier Courier, Hastings Leader, Wairoa Star, and CHB Mail.

10.10. digital advertisements (mixture of targeted ads, banners, and promoted posts) with HB App, NZME, Stuff, MetService, and BayBuzz.

10.11. promotion on HBRC website captured over 5,000 users with the average session view being 3.31 minutes. The rates calculator was the most viewed page, and there were 801 downloads of documents.

10.12. HBRC’s social media channels (Facebook and Instagram) delivered 40 posts and 4 adverts concerning this consultation, resulting in:

10.12.1. total reach (content seen): 178, 657 (of that 138,192 reach from paid advertising)

10.12.2. 1.5K engagement (interactions) from organic posts.

10.13. HBRC also held a Facebook Live session at 7pm on Tuesday 23 April 2024 with Chair Hinewai Ormsby and Chief Executive Dr Nic Peet answering questions. This reached 5,376 people with 86 people commenting/asking questions.

10.14. Other events, such as the Tywford meeting led by other organisations.

11. The consultation generated a lot of interest in print and social media related to Hawke’s Bay Tourism and Te Mata Park funding and rate increases (see attachment Three-Year Plan Print and Online Media).

Submissions

12. A total of 822 submissions were received including those that we received after the closing date. This compares to 762 submissions received three years ago during the consultation of the 2021-2031 Long Term Plan.

13. An index of submissions and complete set of submissions are attached in three parts.

14. Comments and replies on the social media posts from HBRC’s Facebook page are also attached.

15. The following graph shows the distribution of submissions by area. Many submissions were received by email and ‘don’t know’ was selected when staff were not able to ascertain an address or location.

16. Only one submission per person or organisation was accepted. Multiple submissions were merged into one, and submissions received with no content, i.e. blank, were removed. This complies with our Submissions Policy available online at hbrc.govt.nz #sayit.

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 persons affected by this decision are those who made written submissions.

Recommendations

That Hawke’s Bay Regional Council receives and considers the written submissions received on our recovery-focussed Three-Year Plan 2024-2027.

Authored by:

Sarah Bell

Team Leader Strategy and Performance

Jenny Keown

Team Lead Communications

Kath Gellatly

Team Leader Digital Communications

Mandy Sharpe

Strategy & Corporate Planner

Approved by:

Desiree Cull

Strategy & Governance Manager

Attachment/s

1	Alphabetised Index of Three Year Plan Submissions	Under Separate Cover
2	HBRC 2024-27 Three Year Plan Submissions Part 1	Under Separate Cover
3	HBRC 2024-27 Three Year Plan Submissions Part 2	Under Separate Cover
4	HBRC 2024-27 Three Year Plan Submissions Part 3	Under Separate Cover
5	Three Year Plan Social Media Posts and Comments	Under Separate Cover
6	Three Year Plan Print and Online Media	Under Separate Cover

Hawke’s Bay Regional Council

29 May 2024

Subject: Hearing of submissions on our recovery focussed Three-Year Plan 2024-2027

Reason for Report

1. This item provides the Council with information on the hearing of submissions made on Our recovery focussed Three-Year Plan 2024-2027.

2. The hearing schedule, as it stands on Wednesday 22 May 2024, is attached.

Officers’ recommendation

3. Officers recommend that Council follows hearing protocols to receive and consider verbal submissions to inform its decision-making on the proposals in the Three-Year Plan.

Background

4. Of the 822 submissions received, 86 indicated that they wished to attend the hearing. This number has reduced to 71 after a follow up call and email from council staff to arrange a time slot.

5. A complete set of written submissions is attached to the agenda under separate cover, and those who indicated they wish to speak to their submission are identified as Would like to speak at the hearing.

Verbal submissions

6. The hearing is scheduled to run from 10am to 5pm on Wednesday 29 May and 9.30am to 5.10pm on Thursday 30 May 2024. It will be held in the Regional Council Chambers, 159 Dalton Street, Napier. Arrangements have been made for those not able to be there in person to attend via MS Teams.

7. Each speaker has been allocated 10 minutes which includes time for councillors’ questions.

8. A finalised schedule of speakers will be provided to the Council on the morning of each day of the hearing.

Deliberations

9. After the conclusion of the hearing, staff will finalise the deliberations reports for the Council to consider at the 18 June 2024 extraordinary meeting of the Regional Council.

10. The deliberation reports to be considered on 18 June 2024 will be by topic; one to cover each of the consultation topics and main submission themes.

11. Council will be asked to consider the submission points and responses made by Council officers, and to agree or not agree to the proposal as consulted on or as requested in a submission.

Adoption

12. The Three-Year Plan 2024-2027 is scheduled to be adopted at an extraordinary Regional Council meeting on 3 July 2024, once the plan has been updated to give effect to the resolutions made on each topic during the deliberations on 18 June 2024.

Post-adoption

13. Following the adoption of the Three-Year Plan 2024-2027, each submitter will receive an email from the Council within 30 days, setting out Council's resolutions pertinent to their specific submission.

Decision-making process

14. 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:

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

14.2. The persons affected by this decision are those who made written submissions and wish to speak to their submission.

Recommendations

That Hawke’s Bay Regional Council receives and considers the verbal submissions on Our recovery focussed Three-Year Plan 2024-2027 consultation as presented by members of the community.

Authored by:

Leeanne Hooper

Team Leader Governance

Approved by:

Desiree Cull

Strategy & Governance Manager

Attachment/s

1 ⇩

Schedule of submitters

Topic	Raised by