Agenda of Hawke's Bay Regional Council meeting

Meeting of the Hawke's Bay Regional Council

Date: 26 June 2024

Time: 12.30pm

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. Call for minor items not on the Agenda 3

4. Public Forum 5

5. Regional Economic Development Agency update 7

Decision Items

6. Dangerous dams, Earthquake-prone dams and Flood-prone Dams Policy adoption 17

7. Severe Weather Emergency Recovery (Hawke's Bay Flood Protection Works) Order 2024 – Delegations 27

Information or Performance Monitoring

8. Summary report from the Clifton to Tangoio Coastal Hazards Strategy Joint Committee 31

9. Discussion of minor items not on the Agenda

Hawke’s Bay Regional Council

26 June 2024

Subject: Public Forum

Reason for report

1. This item provides the means for Council to give members of the public an opportunity to address the Council on matters of interest relating to the Council’s functions.

Background

2. The Hawke’s Bay Regional Council’s Standing Orders provide for public forums as follows:

14. Public Forums

Public forums are a defined period of time, usually at the start of a meeting, which, at the discretion of a meeting, is put aside for the purpose of public input. Public forums are designed to enable members of the public to bring matters to the attention of the local authority.

In the case of a committee or sub-committee, any issue, idea or matter raised in a public forum must also fall within the terms of reference of that meeting.

Requests must be made to the HBRC Governance Team (06 835 9200 or governanceteam@hbrc.govt.nz) at least one clear day before the meeting; however this requirement may be waived by the Chairperson.

14.1 Time limits

A period of up to 30 minutes, or such longer time as the meeting may determine, will be available for the public forum at each scheduled Regional Council, Corporate & Strategic Committee, Environment & Integrated Catchments Committee and Regional Transport Committee meeting.

Speakers can speak for up to 5 minutes. No more than two speakers can speak on behalf of an organisation during a public forum. Where the number of speakers presenting in the public forum exceeds 6 in total, the Chairperson has discretion to restrict the speaking time permitted for all presenters.

14.2 Restrictions

The Chairperson has the discretion to decline to hear a speaker or to terminate a presentation at any time where:

· a speaker is repeating views presented by an earlier speaker at the same public forum

· the speaker is criticising elected members and/or staff

· the speaker is being repetitious, disrespectful or offensive

· the speaker has previously spoken on the same issue

· the matter is subject to legal proceedings

· the matter is subject to a hearing, including the hearing of submissions, where the local authority or committee sits in a quasi-judicial capacity.

14.3 Questions at public forums

At the conclusion of the presentation, with the permission of the Chairperson, elected members may ask questions of speakers. Questions are to be confined to obtaining information or clarification on matters raised by a speaker.

14.4 No resolutions

Following the public forum no debate or decisions will be made at the meeting on issues raised during the forum unless related to items already on the agenda.

Decision-making process

3. 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 Public Forum speakers’ verbal presentations.

Authored by:

Leeanne Hooper

Team Leader Governance

Approved by:

Desiree Cull

Strategy & Governance Manager

Attachment/s

There are no attachments for this report.

Hawke’s Bay Regional Council

26 June 2024

Subject: Regional Economic Development Agency update

Reason for report

1. This item provides an update on the establishment and operations of the Hawke’s Bay Regional Economic Development Agency (HBREDA).

Background

2. Councils in the Hawke’s Bay region resolved to fund HBREDA in late 2021. The organisation was formed as a partnership between local government, business, and iwi/hapū.

3. Following legal advice, the legal structure for HBREDA was confirmed to be a council organisation (but not a CCO) in the form of a limited liability company and governed by an independent skills-based board. Shareholdings in the HBREDA company were agreed by council CEs and the Matariki Governance Group (MGG) to be in equal thirds between business, iwi/hapū and local government. Fourteen shareholder entities are represented within these three groupings.

4. The MGG set up a board appointments panel and appointed the Board in December 2022. Board members are:

4.1. Alasdair MacLeod (Chair)

4.2. Shayne Walker

4.3. Caren Rangi

4.4. Erin Simpson

4.5. Rawinia Kamau (resigned May 2024).

5. The Matariki Governance Group was nominated by shareholders, via the HBREDA constitution, as the shareholder representative.

6. The funding committed by councils in December 2021 is allocated between councils as outlined in the table below.

Council Split Year 1 Year 2 Year 3+
HBRC 29% 454,572 461,899 500,000
HDC 29% 454,572 461,899 500,000
NCC 29% 454,572 461,899 500,000
CHB 8% 122,844 124,824 135,120
WDC 4% 64,440 65,479 70,880
1,551,000 1,576,000 1,706,000

7. Prior to HBREDA’s establishment, some of the funds set aside for HBREDA were allocated to the operation of the Business Hub in Ahuriri, shifting the business support agencies to Hastings and setting up a new business hub, the Regional Freight Distribution Strategy, consultant support to assess the needs of business post-cyclone, and consultant and legal costs for the establishment of HBREDA.

HBREDA establishment update

8. Lucy Laitinen was appointed as Chief Executive of HBREDA and commenced 14 August 2023.

9. HBRREDA was incorporated on 14 September 2023 with a constitution that outlined the shareholder arrangements and appointed the Matariki Governance Group as the shareholder representative.

10. The Shareholders’ Charter was approved at a meeting of shareholders on 23 February 2024. This lays out the governance, reporting, and funding arrangements for the company. The Charter states that the Matariki Governance Group, as the shareholder representative, shall agree an annual letter of expectations (LOE) with the HBREDA Board. The process for agreeing the annual letter of expectations must allow for an opportunity for shareholder entities to provide their input/feedback into the letter. The Matariki Governance Group has the final signing authority, on behalf of shareholders. HBREDA’s governance arrangements are illustrated below.

11. The Shareholders’ Charter lays out eight operating principles to assist HBREDA in determining its work programme (to be detailed in the LOE). The full Charter is attached.

12. The HBREDA Shareholders’ Charter, approved on 23 February, defines the letter of expectations (LOE) as the mechanism for Matariki, the shareholder representative, and HBREDA to agree work programme priorities, reporting, and performance measures for the company.

13. HBREDA provided the Matariki Governance Group a draft LOE for the six-month period starting 1 July 2024 at the 5 April 2024 meeting, asking the MGG to provide it to shareholder entities for feedback with a view to agreeing the LOE at the 21 June 2024 Matariki meeting.

14. Over time, when Matariki has the capacity available, HBREDA has recommended a move to a process where Matariki prepares a LOE each year, with input from all shareholder entities, and provides it to HBREDA, which then responds with a Statement of Intent. This would allow for the development of a robust and transparent process to secure shareholder feedback and input and allow HBREDA to exercise its independence through developing a Statement of Intent in response.

15. On 21 June the MGG is reviewing an LOE that will lay out HBREDA’s work programme, performance measures, and reporting requirements for a six-month period. The LOE will be annexed to HBREDA’s funding agreement with councils.

16. The financial reporting provided by HBREDA to the Matariki Governance Group will meet the reporting requirements for local government expenditure. It is Matariki’s responsibility to ensure this reporting, along with narrative reporting, is disseminated to shareholder organisations. It is not expected there will be any additional formal reporting mechanisms to shareholders outside of those outlined in the Letter of Expectations, and no separate KPIs. HBREDA will continue to respond to requests from shareholders, such as HBRC, to provide updates directly on its activities. These will not be considered part of HBREDA’s formal reporting to shareholders.

17. Following the approval of HBREDA’s first LOE, HBREDA will sign a funding agreement with the funding councils. HBREDA is currently receiving tax and accounting advice on the draft agreement. We are also in the process of clarifying the treatment of pre-incorporation expenses, which is relevant to HBRC as the Council held HBREDA’s funding before it was established.

Establishment of Te Rae

18. The responsibility for running the new business hub was given to HBREDA before the company was established. Due to the shift of the previous business hub away from Ahuriri to Hastings, HBREDA ‘inherited’ a building project.

19. HBREDA turned the building project into “Te Rae”, the new business hub, which was blessed and opened to the public on 23 February 2024. Te Rae houses the business support agencies (Chamber of Commerce, NZTE, Business Central, and Export NZ) and HBREDA, and provides six meeting rooms for public hire. HBREDA has partnered with Toi Mairangi to provide gallery space for local artists in the events/meeting space.

20. The Te Rae website can be accessed at www.terae.nz. HBREDA is seeking clarification from the MGG that all councils should receive free use of the rooms.

21. HBREDA has just taken over the lease on 101 Queen Street East, Hastings, where Te Rae is located, from Hastings District Council and now has licenses to occupy with tenants. A considerable portion of HBREDA funds have been put toward the design and fitout of Te Rae. Landlord and operational responsibility for Te Rae will be an ongoing part of HBREDA’s responsibilities.

Telecommunications resilience report

22. HBREDA engaged consultant Jonathan Brewer to conduct a review of Hawke’s Bay’s telecommunications resilience as a contribution to the recovery to investigate the widespread telecommunications outage that occurred after Cyclone Gabrielle and develop recommendations. The Regional Recovery Agency is responsible for developing an action plan for next steps. The report will be released shortly.

Requests for proposals (RFPs)

23. HBREDA published two RFPs in May 2024 – Research into Understanding the HB Economy’ and Provision of Regional Dashboard and Economic Insights – and is currently evaluating responses. Both the research and the ongoing provision of economic and wellbeing data will inform HBREDA’s future work programme and will provide useful insights and data for all of our stakeholders.

Matariki Secretariat

24. HBREDA has been asked to fund and support the Matariki secretariat. It has contracted a board secretary, communications function, and just recently a strategic advisor. A grant of $60,000 has recently been provided by MSD to support these costs as well as the development costs of a Matariki website, when appropriate.

Decision-making process

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

Recommendation

That the Hawke’s Bay Regional Council receives and notes the Regional Economic Development Agency update report.

Authored & approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

1 ⇩

HBREDA Shareholders' Charter

Hawke’s Bay Regional Council

26 June 2024

Subject: Dangerous dams, Earthquake-prone dams and Flood-prone Dams Policy adoption

Reason for report

1. This item provides Council with the proposed Policy on Dangerous dams, earthquake-prone dams and flood-prone dams 2024 (the Policy) for adoption for notification.

Officers’ recommendations

2. Council staff recommend that the Council adopts the Policy as proposed.

Executive summary

3. The Building Act 2004 requires all regional councils to adopt a policy on dangerous dams, earthquake-prone dams and flood-prone dams.

4. The existing Dangerous Dams Policy 2006 required updating to align with the new Building (Dam Safety) Regulations 2022 which come into effect in May 2024. The updated Policy is also required to reflect MBIE consultation on changes to classifiable dam thresholds.

5. Policy drafting, dam owner notification, and public consultation have taken place in the months previous. Changes to classifiable dam thresholds were included in the policy drafting following MBIE consultation. No submissions were received during the public consultation period.

6. This item is being raised now to seek a decision that enables public notification of the updated Policy to meet Building Act 2004 requirements and ensure the Council is compliant.

Background

7. In January 2024 a project team was formed to update the Dangerous Dams Policy 2006. This policy sets out what Council will do if they are notified of a dangerous, earthquake-prone or flood-prone dam in Hawke’s Bay. New regulatory requirements set out in the Building (Dam Safety) Regulations 2022 would mean our current Dangerous Dams Policy 2006 would no longer reflect the new regulations from 13 May, 2024.

8. A number of changes were needed for the updated policy on dangerous dams, earthquake-prone dams and flood-prone dams. Changes from the current Dangerous Dams Policy 2006 largely relate to aligning the Policy with requirements under the Building (Dam Safety) Regulations 2022 and Building Act 2004. A further key consideration was the need to simplify and refine the document to make it more readable.

9. Drafting of the updated policy began in late-January 2024, taking the May 13 deadline into account. Pre-consultation engagement with registered dam owners was undertaken in March 2024. This included informing registered dam owners of MBIE consultation around potential threshold changes to classifiable dams. During drafting, attention was given to MBIE consultation on classifiable dam thresholds, and the updated Policy was drafted to accommodate any potential changes (with reference to the Regulations, rather than specific height and volume).

10. Adoption of the proposed Policy for public consultation was discussed at EICC and Council meetings in March 2024. Councillors indicated that the updated policy would be of better use to dam owners if classifiable thresholds (specific height and volume) were included. Following this meeting of Council, MBIE released the updated thresholds on classifiable dams on 28 March and the Policy was updated accordingly to reflect the new thresholds.

11. Subject to final Council approval for notification, it is anticipated that the updated Policy will come into effect in early June 2024.

Options assessment

12. As mentioned previously, the current Dangerous Dams Policy 2006 does not align with terminology or requirements under the new regulations. It is therefore to be discounted as an option for these reasons.

13. The updated Policy achieves Council requirements and responsibilities, and it is recommended that the Council adopts the Policy for notification.

Significance and Engagement Policy assessment

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

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

Considerations of tangata whenua

15. Prior to the period of public consultation, both PSGEs and taiwhenua were informed via letter of the proposal to update Council policy on dangerous dams. As part of the information letter Council also informed PSGEs and Taiwhenua of the concurrent consultation undertaken by MBIE to update the classifiable dam thresholds. Both PSGEs and taiwhenua were invited to give feedback on the proposed Policy update during the public consultation period and relevant information was included.

16. No feedback was received on the proposed Policy. However, feedback was received from Tūhoe in relation to their concerns about the presence of the existing dam at Lake Waikaremoana, rather than feedback on the Policy itself.

Financial and resource implications

17. Existing staff are currently utilised in all aspects of the project.

18. All implementation costs have been budgeted for. Such costs are modest and will be funded as part of business-as-usual activity.

Consultation

19. The public consultation phase of the proposed Policy took place across a four-week period between 28 March and 28 April 2024. It was advertised in print, online media, and an online dam safety web page with submission forms was available. Registered dam owners, utility providers, territorial authorities, and tangata whenua were notified in advance of the opening date and were encouraged to participate.

20. No submissions were received.

Other considerations

21. Comments during deliberations at both Council and committee meetings considered financial implications for owners of classifiable dams. Owners of classifiable dams will have to undertake a Potential Impact Classification (PIC), and owners of dams classified as medium to high impact must develop a Dam Safety Assurance Programme (DSAP). Annual dam compliance and PIC reviews are also required, all of which must be approved by a recognised engineer.

22. Equally, despite recognition of potential costs to dam owners, it was noted that financial implications are unavoidable as these actions are dam safety requirements under national regulations.

Decision-making process

23. 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:

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

23.2. The use of the special consultative procedure is prescribed by legislation. The Council must consult directly with the community or others having an interest in the decision.

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

23.4. The persons affected by this decision are owners of dams that are classifiable.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the proposed Policy on dangerous dams, earthquake-prone dams and flood-prone dams 2024 adoption staff report.

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

3. Adopts the Policy on dangerous dams, earthquake-prone dams and flood-prone dams for notification.

Authored by:

Saul Gudsell

Policy Planner

Nichola Nicholson

Acting Manager Policy & Planning

Approved by:

Katrina Brunton

Group Manager Policy & Regulation

Attachment/s

1 ⇩

Policy on dangerous dams, earthquake-prone dams and flood-prone dams 2024

Hawke’s Bay Regional Council

26 June 2024

Subject: Severe Weather Emergency Recovery (Hawke's Bay Flood Protection Works) Order 2024 – Delegations

Reason for report

1. This item seeks the Council’s delegation of decisions on consent applications lodged under the Severe Weather Emergency Recovery (Hawke's Bay Flood Protection Works) Order 2024 (the Order) to independent commissioners.

Staff recommendations

2. Staff recommend that the following independent commissioners be given the necessary delegations from the Council to consider and decide on the matters listed in paragraph 12.

2.1. Janeen Kydd-Smith (Sage Planning)

2.2. Philip McKay (Mitchell Daysh Ltd)

2.3. Alison Francis (Bay Planning Ltd)

2.4. Rob van Voorthuysen (vVEnvironmental Limited).

3. All of the above are experienced local planning practitioners who are currently certified as commissioners under the Ministry for the Environment Making Good Decisions (MGD) programme. The commissioner to be used for each application will be determined closer to the time of lodgement, taking into account availability and actual or perceived conflicts of interest.

Executive summary

4. The Order requires that independent commissioners consider and make decisions on consent applications for flood protection works in eight specified areas.

5. The Order establishes a bespoke and streamlined non-notified consent process for flood protection work applications. The applications will need to be considered and decided on within tight timeframes. These timeframes cannot be extended.

6. Delegation is sought for four Making Good Decisions (MGD) certified planning practitioners so that they can be engaged as required to decide on flood protection works applications.

Background

7. The Order came into force of 7 June 2024. It modifies the Resource Management Act 1991 (the RMA) to facilitate the carrying out of flood protection works at specified locations in the Hawke’s Bay Region.

8. The order seeks to ensure that people and communities in Hawke’s Bay can recover from the effects of Cyclone Gabrielle and are protected against future events through the construction of flood protection works at eight specified locations in the region. To do this, it establishes a specific streamlined consent process for these projects.

9. The eight sites included are:

9.1. Wairoa

9.2. Porangahau

9.3. Ohiti

9.4. Whirinaki

9.5. Waiohiki

9.6. Havelock North (Mangarau Stream)

9.7. Awatoto

9.8. Omahu.

10. The flood protection works are classified as controlled activities, must be processed on a non-notified basis within 30 working days, and must be granted. Only HBRC and TLA’s may apply for consents under the Order. Applications are expected to be lodged from around mid-August.

11. The streamlined consent process set out by the Order includes the following key steps:

11.1. Receiving the application and determining that it is complete and contains all of the information as specified by the Order.

11.2. Specified persons must be notified within five working days of the application being lodged, and their comments sought. Specified persons have ten working days to provide comment. Specified persons include:

11.2.1. relevant Māori entities

11.2.2. local authorities

11.2.3. national agencies (eg Maritime NZ)

11.2.4. Ministers (eg for Minster of the Environment

11.2.5. The Director General of Conservation

11.2.6. network utility operators

11.2.7. landowners and occupiers

11.2.8. coastal marine area customary title holders and applicants, and

11.2.9. any other person the consent authority considers appropriate, where that person has an interest in the application greater than that of the general public.

11.3. The consent authority must consider all comments received and prepare a summary of those comments and its responses. This must be published before (or with) the decision.

11.4. A consent authority may impose on a resource consent it grants, conditions taken from those set out in Schedule 2 of the Order. The authority may amend those conditions, or impose additional conditions, within the matters of control.

11.5. Requires the consent authority to notify its decision on the consent application within 30 working days after the date of application.

12. Clause 10 of the Order requires that a consent authority delegates to an independent hearing commissioner certain specified functions, duties, and powers in relation to a resource consent application for flood protection works. Those functions, duties, and powers include the consideration of the application, the decision granting consent, and the conditions imposed on the consent.

13. Clause 10(2) of the Order states:

The functions, duties, and powers that must be delegated are the following functions, duties, and powers of the authority in relation to a resource consent for flood protection works:

(a) consideration of an application under section 104 of the RMA (see clause 16):

(b) decision to grant a resource consent under section 104A(a) of the RMA:

(c) imposition of conditions on a resource consent in accordance with clause 17:

(d) giving of notice of its decision under section 114 of the RMA in accordance with clause 18.

14. Delegation for the matters listed in paragraph 13 must come from the Council to the independent commissioner directly. As the applications are for controlled activities, and must be granted without notification, the key areas of consideration and decision by the commissioners will be on the imposition of appropriate consent conditions.

15. The Order sets out the process where consents are required from more than one consent authority. This is likely to occur as the flood protection works will require both regional and district/city land use consents. The Order requires the local authorities to act jointly when processing and determining the consent applications. The commissioner will need to consider and decide on regional and TLA consents applied for, and so will also need to be agreed to by the relevant TLA and also be given the appropriate delegation by them.

Options Assessment

16. An independent commissioner (i.e. not a member of the authority) must be used to consider and decide on any consent application made under the Order.

17. Officers have not had an opportunity to identify available and qualified Maori commissioners. They would need to be current MGD certificate holders and would need to be available to undertake this work at short notice and within tight timeframes. They would preferably be familiar with regional and TLA activities and able to determine appropriate conditions of consent for these.

Considerations of tangata whenua

18. The Order provides opportunities for consultation and engagement with tangata whenua (and other parties), including:

18.1. Relevant Māori entities will be invited to comment on each application and any comment must be considered and responded to by the consent authority.

18.2. Conditions of consent require the consent holder to invite each relevant Māori entity to appoint a representative. The relevant Māori entity may appoint a team of cultural monitors to support the representatives and to provide on-site guidance to help manage the impact of the works on culturally sensitive land and cultural values.

18.3. The consent holder must consider guidance provided by the representatives when preparing all plans required by the consent conditions and subsequently report to the Māori entities representatives on how cultural advice has been taken into account.

18.4. The Māori entities representatives and other parties will form a stakeholder advisory group. This group will have the opportunity to comment on the Construction Environmental Management Plan prior to works commencing.

Financial and resource implications

19. The decision on which independent commissioners to use for this process will not impact the HBRC budget as all costs incurred will be charged to the applicant(s) in accordance with the Fees and User Charges Policy.

Decision-making process

20. 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:

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

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

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

20.4. The persons affected by this decision are HBRC and TLAs in their role as applicant under the Order.

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

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Severe Weather Emergency Recovery (Hawke's Bay Flood Protection Works) Order 2024 – Delegations staff report.

3. In relation to resource consent applications made under the Severe Weather Emergency Recovery (Hawke's Bay Flood Protection Works) Order 2024, agrees to delegate the following duties, functions and powers:

3.1. in relation to a resource consent for flood protection works:

3.2. consideration of an application under section 104 of the RMA

3.3. decision to grant a resource consent under section 104A(a) of the RMA:

3.4. imposition of conditions on a resource consent

3.5. giving of notice of its decision under section 114 of the RMA.

to the independent commissioners listed:

3.6. Janeen Kydd-Smith (Sage Planning)

3.7. Philip McKay (Mitchell Daysh Ltd)

3.8. Alison Francis (Bay Planning Ltd)

3.9. Rob van Voorthuysen (vVEnvironmental Limited).

Authored by:

Paul Barrett

Principal Consents Planner

Approved by:

Katrina Brunton

Group Manager Policy & Regulation

Attachment/s

There are no attachments for this report.

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