Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Due Date	Status Comment
1.	Development of Regional and Unitary Council’s website	Business plan to come to Council.	AN	July 10	Item included on this Agenda.
2.	General Business – Tutira Property	Update to be given on what is happening with this property with respect to property plan adopted by Council covering issues including forestry, demonstration trials, recreational opportunities.	MA	Nov 10	Report to be brought to November meeting of AM&B Committee.
3.	Looking Forward	Report be prepared on Taharua Strategy for Asset Management meeting	MA/CP/BP	Aug 10	Going to September Environmental Management Meeting
4.	Annual Report Progress Report to 31 May 2010	Monitor the outstanding compliance and consent debt and provide an update at each Council meeting	AN	Aug 10	Covered in financial report.
5.	Investment Portfolio	Update on the proposed project for reviewing and developing Council’s investment portfolio	AN	Sept 10	To be included as an item on the SP&F Committee in September.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Affixing of Common Seal

COMMENT:

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

		Seal No.	Date
1.1	Leasehold Land Sales 1.1.1 Lot 182 DP 11149 CT B1/1216 - Agreement for Sale and Purchase - Transfer 1.1.2 Lot 47 DP 4488 CT 55/173 - Transfer 1.1.3 Lot 39 DP 9653 CT C2/438 - Agreement for Sale and Purchase	2982 2986 2983 2985	26 July 2010 11 August 2010 26 July 2010 2 August 2010
1.2	Esplanade Strip Agreement Lot 4 DP354642, a 1/3^rd share in Lot 5 DP 26841 and a 1/6^th share in Lot 6 DP 26841 Computer Freehold Register 222988; and Lot 2 DP 426363 and Lot 1 354642, a 1/3^rd share in Lot 5 DP 26841 and a 1/6^th share in Lot 6 DP26841 Computer Freehold Register 503779 (riparian strip fenced from grazing)	2984	28 July 2010
1.3	Staff Warrants	2987- 2990	12 August 2010
1.4	Funding Agreement Ministry of Economic Development NZ Cycleways Project	2991	13 August 2010

DECISION MAKING PROCESS

2. 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:

2.1 Sections 97 and 88 of the Act do not apply;

2.2 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;

2.3 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.

RECOMMENDATION:

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance and that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Confirm the action to affix the Common Seal.

Diane Wisely

Executive Assistant

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Financial Report for 12 Months Ended 30 June 2010
Draft Annual Report 2009/10 - Adoption for Audit

REASON FOR REPORT:

1. The purpose of this paper is to provide explanations covering variances both from the reforecasted budgets and from Annual Plan budgets for year ended 30 June 2010. Further, to provide draft sections of the Annual Report specifically those set out in Attachments 2, 3 and 4 referred to below, to allow Council to adopt these attachments as an appropriate draft of the Annual Report to be forwarded to the Audit Office and form the basis of their audit.

COMMENT:

2. The draft Annual Report 2009/10 is presented to this meeting. This report does not include the performance overview, which is made up of the Chairman’s report, Chief Executive’s report, and Financial Overview. This overview is not subject to audit.

3. The Local Government Act 2002, Clause 16 of Schedule 10, requires that Council include in the Annual Report, information on each Council controlled organisation. This Council does not have any Council controlled organisations.

4. It is proposed to include an additional section in the Annual Plan entitled “Reporting on the Right Debate”. This section will cover the extent to which issues included in the Right Debate in the 10 Year Plan 2009-19 have been achieved in the financial year under report. Discussions with Council’s auditors, Audit New Zealand, established that the inclusion of this additional section in the Annual Report would enhance the reporting by Council on achievements delivered throughout the year.

5. The final audited Annual Report will be tabled for adoption at the 22 September 2010 Council meeting.

6. The financial information provided in Attachment 1 is not part of the formal Annual Report publication and is provided to Council to clarify variances, actual (from reforecast and Annual Plan) to budgets. The information included in Attachments 2, 3, and 4 makes up most of the content of the published Annual Report. These sections have only been distributed to Councillors, however they will be made available to members of the public on request.

Attachment 1

§ The financial overview for the year ended 30 June 2010 is set out in a similar format as Council receives during the year. The emphasis in this report is to detail and provide explanations for variances (actual compared to reforecast) in projects within each group of activity and for flood control and drainage scheme reserves and other scheme reserves. All these variances affect public good funding.

Attachment 2

§ This attachment sets out the extent to which Council has been able to deliver on the levels of service provision and performance targets as set out in the Annual Plan for 2009/10 under each group of activity. The format provided in this attachment is the same as Council normally considers as part of their financial report, with the addition of reporting on the extent to which the issues raised in the “Right Debate” section of the 10 Year Plan have been achieved. The format will be altered subsequent to this meeting in order that the presentation can be in the same form as it will finally appear in the published Annual Report.

Attachment 3

§ Management statements set out in the format as they will appear in the Annual Report. (Excludes the report on Council controlled organisations as this Council has no Council controlled organisations).

Attachment 4

§ The financial results included in this attachment are set out in the same format as will appear in the published Annual Report. The cashflow statement and some notes to the accounts are still being finalised.

Regional Disaster Damage Reserve

7. At this time of year the need to tag operating cash balances to fund a shortfall in investments for Disaster Damage Reserve is considered. Council has resolved that this reserve should maintain a balance of funds of between $2.75m and $3.75m. Council set this reserve limit at their meeting on 28 February 2007, at the same time that a decision was made to become a member of the Local Authority Protection Programme (LAPP), which provides a 40% cover for damage to insured infrastructure assets, the remaining 60% of the cover continues to be placed with commercial insurers.

8. It is Council's intention that the Regional Disaster Damage Reserve will:

8.1. Meet any extraordinary costs of managing the response and recovery to a disaster event.

8.2. Meet the $600,000 excess for any event for damage covered by Council’s Commercial Insurance infrastructure policy.

8.3. Meet along with the Scheme disaster reserves, 60% of the cost of the damage to live edge protection.

9. As at 30 June 2010, investments in the Regional Disaster Damage Fund were $3,487,000. Accordingly, there is no need to tag any cash operating balances to cover a shortfall, because the total funds available for regional disaster damage purposes, are in excess of the Council's minimum fund level of $2.75m.

Revaluation of Council's Assets

10. The following Council asset groups are subject to revaluation and have been incorporated where available in the draft Annual Report figures presented to this meeting. These asset groups are:

Infrastructure Assets:

10.1. These assets were last revalued as at 30 June 2008; Council's current policy is to revalue these assets every three years – ie, next revaluation is due on 20 June 2011.

Hydrological Assets:

10.2. These assets were revalued as at 30 June 2010. The next revaluation will be finalised as at 30 June 2012.

Operational Assets:

10.3. These assets which include land, buildings, plant and equipment, have been valued at 30 June 2010. Council's current policy is to re-value land and buildings to fair value every three years for Annual Report purposes. The next revaluation is due on 30 June 2013.

10.4. Council’s Dalton Street building has been revalued at $8.3m and this compares to a current book value of $7.85m. This increase in valuation is a result of an increase in the value of the building as distinct from the land.

Biological Assets (Forestry Assets):

10.5. Under the international accounting standards, biological assets are to be revalued at the end of each financial year. Accordingly, the forestry at the Tangoio Soil Conservation Reserve, Tutira Regional Park, and Tutira Carbon Sequestration, has been valued to 30 June 2010. Council’s properties at Waipawa and Waipukurau for wastewater management have not been planted at 30 June 2010. Details of the valuations are as follows:

Forest Location	Value as at 30 June 2009	Value as at 30 June 2010	Variance
Tangoio Soil Conservation Reserve	$513,000	$690,000	($177,000)
Tutira Regional Park	$576,000	$782,000	($206,000)
Tutira – Carbon Sequestration	-	$130,000	($130,000)

10.6. The increase in valuation reflects the maturity of the trees and higher anticipated yields.

Investment Properties – Carbon Sequestration/Wastewater Investments:

10.7. During the 2009/10 financial year Council invested in a property in Tutira for the purposes of regional park development and carbon sequestration, and also purchased a property in Waipawa and two properties in Waipukurau to be used for wastewater management in Central Hawke’s Bay. Set out below is an analysis of the current valuations on these properties as at 30 June 2010:

Property Details	Area	Purchase Price (Land Only)	Revaluation – 30 June 2010	Variation Valuation/ Purchase Price
Tutira (Carbon Sequestration)	316.3 ha	$1,050,000	$695,000	($355,000)¹
Waipawa (Wastewater)	78.5 ha	$777,000	$685,000	($92,000)²
Waipukurau (Wastewater)	118.8 ha	$1,626,000	$1,200,000	($426,000)³

¹ This valuation excludes the value of improvements purchased for $260,000 and revalued at $355,000. It also excludes the value of forestry estimated at $130,000 which has been planted during the 2009/10 year.

² Excludes 1 subdivided lifestyle block

³ Excludes 2 survey but as yet unsubdivided lifestyle blocks

10.8. The reasons for the decline in valuations of the above properties are:

10.8.1. In the latter half of 2009 the trend line for the sale price per hectare of sheep and beef farmland dropped approximately from $8,000 to nearer $6,000 per hectare. The underlying reason for this decrease in valuation was due to pressure on sales generated by banks restricting their lending to properties that have the ability to service debt from their operations and not allowing investors to rely on capital gains to support additional borrowings to fund losses. Advice received indicates that there will be further pressure on farm prices through 2010, with possible further realignments during that year.

10.8.2. Specifically for the Central Hawke’s Bay properties, Council purchased properties in close proximity to Waipawa and Waipukurau wastewater treatment ponds and, accordingly, was required to pay a premium for the properties due to location. Further, in the case of Waipukurau the land purchased included a premium to reflect the potential for lifestyle block development. The valuation does not reflect this potential and if Council proceeds with subdivision for some lifestyle blocks, then the value will increase to reflect that, though it is likely that such lifestyle blocks may be retained until the residential market improves.

10.8.3. The valuers commented that the market has yet to adjust to more regular cashflows from land planted for carbon sequestration as opposed to timber based forestry which has one major cashflow cycle at harvest. The price for carbon is trading consistently at around $20 per tonne.

Investment Properties – Leasehold Land:

10.9. The main investment properties held by Council are the leasehold land in Napier and Wellington. These valuations have again this year shown an increase in the lessor's value of the Council's leasehold property investments.

10.10. The table below sets out the percentage increase in lessor's interest for both Napier and Wellington leasehold property:

	Napier Leasehold		Wellington Leasehold
	No. of Lessees	$	No. of Lessees	$
Valuation (Lessor's Interest) 30 June 2009	1085	85.5m	13	11.2m
Valuation (Lessor's Interest) 30 June 2010	1047	80.3m	13	11.4m
Property Leases Freeholded	38	3.9m	-	-
Increase in valuation over the 12 months to 30 June 2010 adjusted for sales		-1.3m (1.6%)		0.2m (1.8%)
Comparative for year ended 30 June 2009		-5.4m (5.9%)		-0.6m (5%)

10.11. The decrease in the values of Council’s investment in leasehold properties reflects the tight property market caused by the economic downturn.

10.12. The year to 30 June 2010 is the second year that properties in the Napier leasehold land portfolio have decreased in value, however these decreases in value have now started to level off. These decreases indicate a tight resale market, especially given the increase in leasehold payments for a number of lessees that make leasehold land unattractive from a purchase to own or investor point of view.

Port of Napier Ltd Shareholding

10.13. Council shareholding of 100% in the Port of Napier Ltd is revalued every three years. The revaluation on 31 March 2009, which is included in this Council’s 2009/10 Annual Report, states that Council’s investment in the Port of Napier Limited is $120.4m.

General Funded Operating End of Year Position

10.14. The Council's General Funded Operating result, subject to final audit processes, for the year ended 30 June 2010 is shown in Attachment 1 as a deficit of $285,367. When this is compared to the forecast end of year deficit position of $705,615, the result is an improvement from forecast in the year-end position of $420,248.

10.15. The final impact of Council's favourable year-end position on cash operating balances still needs to be finalised as part of the Annual Report preparation. However, it is estimated that the forecast cash operating balance will be between $5.5m and $6m at the end of 2009/10 and reduce to $4.5m - $5m at the end of 2010/11. Council’s policy is to ensure that cash operating balances are maintained at a level of at least $4m in order to fund normal Council operations – this level avoiding the need for bank overdrafts.

10.16. It should be noted that the operating statement set out in attachment 4 and included as part of the formal Annual Report to proceed to Audit, shows an operating deficit that differs from the general funded operating end of year position as presented to Council. There are a number of reasons for this difference, the major reasons being the losses in fair value of Council’s investment properties and the targeted rates which have been set to fund the capital purposes of Council, both being shown in the income statement in the Annual Report but do not affect the end of year position from a general funded operating position.

10.17. The issue of ensuring the Sale of Land Investment balances are maintained in real terms is normally covered in this paper. This year it is not considered appropriate to recommend an adjustment to reflect the rate of inflation on the average balances of the fund, as such an adjustment would equate to approximately $432,000 being required as a transfer from operating revenues to sale of land investment. This figure of $432,000 was calculated as 1.8% inflation according to the Reserve Bank economic statistics, on an average balance of $24m. The 2009/10 Annual Plan did not provide for such an adjustment to be made.

10.18. Further, it is also worth noting that the funds from the Sale of Land Reserve are currently being invested in projects – for example, forestry, land and Port of Napier shares, which will protect Council’s capital in real terms in future years.

DECISION MAKING PROCESS:

11. Council is required to make decisions in accordance with provisions of Part 6 Sub-Part 1 of the Local Government Act 2002 (the Act). Staff have assessed requirements contained within this sub-part of the Act in relation to this item and have included the following:

11.1. Sections 88 of the Act covering the change in the mode of delivery of a group of activity and Section 97 covering significant changes in the intended level of service provision for a group of activity do not apply.

11.2. Sections 83 and 84 which set out the procedures to be followed where a special consultative procedure is to be used or adopted do not apply.

11.3. The decision does not fall within the definition of Council's policy on significance.

11.4. No options are available to Council for this item. The Annual Report is required under Section 98 of the Local Government Act 2002.

11.5. This report, when adopted, is available for any person requiring a copy of this report.

11.6. Section 80 of the Act covers decisions that are inconsistent with existing policy or plan and does not apply.

11.7. Council can exercise its discretion under Section 79 (1)(a) and 83(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, and also Council's understanding of the issues that persons likely to be affected by or have an interest in the decisions to be made.

RECOMMENDATIONS:

That the Council :

1. Confirm the decisions to be made are not significant under the criteria contained in Council’s adopted "policy on significance"; and Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 and make decisions on those issues without conferring directly with the community and persons likely to be affected by or to have an interest in the decision due to the nature and significance of the issue to be considered and decided.

2. Adopt the Draft Annual Report for the period 1 July 2009 to 30 June 2010, subject to any adjustments required by Council, for the purposes of audit, with a view to Council adopting the final report at its meeting on 22 September 2010.

3. Resolve that $139,014 profit on external work undertaken by Council's Works Group during the year ended 30 June 2010 be used by Council to increase the cash operating balances available to fund general funded operating expenditure.

Paul Drury

Group Manager Corporate Services

Andrew Newman

Chief Executive

Attachment/s

1. Financial Overview
2. Narratives on Performance Targets
3. Annual Report Management Statements
4. Annual Report Financial Statements

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Setting of 2010/11 Rates

REASON FOR REPORT:

1. Following the adoption of the 2010/11 Annual Plan, the rate requirements have been calculated for the 2010/11 financial year and it is now necessary to resolve to set and assess the rates scheduled below for the period 1 July 2010 to 30 June 2011.

The Local Government (Rating) Act 2002 provides for the following:

Section 23 – Procedure for Setting Rates

(1) Rates must be set by a resolution of the local authority.

(2) Rates set by a local authority must –

(a) Relate to a financial year or part of a financial year; and

(b) Be set in accordance with the relevant provisions of the local authority's Annual Plan for that financial year.

2. Council approved the inclusion of the required rates in the 'funding impact statement' which was part of the 2010/11 Annual Plan. This plan was adopted by Council on 30 June 2010. The rates included in that plan have been consulted on by a special consultative procedure as part of the Annual Plan process. The Local Government (Rating) Act 2002, sections 13 and 14 (General Rate), Section 15 (Uniform Annual General Charge) and Sections 16, 17 and 18 (Targeted Rates) clarifies how each such rate should be set.

3. Section 23 of the Local Government (Rating) Act 2002 does not require that the rating resolutions included in this paper be publicly notified, as details of the rates have been included in the Council's Annual Plan.

DECISION MAKING PROCESS:

4. Council is required to make every decision in accordance with Part 6 and Sub-Part 1 of the Local Government Act 2002 (the Act). Staff have assessed requirements contained within this section of the Act in relation to this item and have considered the following:

4.1 Section 88 of the Act covering the mode of delivery of a group of activity and Section 97 covering a significant change in the intended level of service provision for a group of activities do not apply.

4.2 Section 83 which sets out the procedures which are to be followed where a special consultative procedure is to be used or adopted does apply. These rates have been included in the 2010/11 Annual Plan and have been consulted on by the use of a special consultative procedure.

4.3 The decisions do fall within the definition of Council's policy on significance, namely that "the decision or proposal affects all or a large part of the regional community in a way that is not inconsequential" and as such have been included in the 2010/11 Annual Plan.

4.4 Council has no option but to set rates for any one financial year in order to ensure that the services the Council provides are fully funded.

4.5 Persons affected by the decision in this paper will be the ratepayers within the Hawke's Bay region.

4.6 Section 80 of the Act covering decisions that are significant and inconsistent with any existing policy or plan does not apply.

RECOMMENDATIONS:

That the Council:

1. Agree that the decisions to be made on the setting and assessing of rates cover information that has been included in the funding impact statement of the 2010/11 Annual Plan as required by Section 93 of the Local Government Act 2002 and further that such decisions require special consultative procedure under Sections 83 and 84 of the Act, such special consultative procedure having been previously carried out on the 2010/11 Annual Plan.

2. Set and assess the following rates scheduled below for the period 1 July 2010 to 30 June 2011:

GENERAL FUNDING RATES:

1. General Rate based on land value

Pursuant to Section 13 of the Local Government (Rating) Act 2002 a General Rate of $7.91 per $100,000 of land value on the estimate of projected valuation for land value shall be set on the rating units within the region. The General Rate will yield $1,231,349 (GST inclusive) which is required to meet the statutory functions of the Council.

2. Uniform Annual General Charge

Pursuant to Section 15 of the Local Government (Rating) Act 2002, a Uniform Annual General Charge of $37.07 (including GST) will be charged on each separately used or inhabited part of a rating unit. The Uniform Annual General Charge will yield $2,520,271 (inclusive of GST) which is required to meet the statutory functions of Council.

TARGETED RATES:

3. Subsidised Public Transport Rate

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate of $23.16 per $100,000 of land value on the estimate of projected valuation for the land value shall be set on the rating units contained within the Napier (excl. Bay View Township) and Hastings residential and commercial areas including Havelock North.

The purpose of the rate is to fund the Subsidised Passenger Transport System (bus services) and the Total Mobility (transport subsidy for disabled persons) which operate in both cities. The total rate required is $1,544,694 (GST inclusive).

4. Heretaunga Plains Flood Control Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate on a graduated scale as set in the Schedules shown below shall be set on those rating units that benefit directly or indirectly from the Heretaunga Plains Flood Control Scheme.

(a) Differential Rate for Flood Protection set on the Estimate of projected valuations of Capital Value comprising all rateable rating units within Hastings District and Napier City

Rate

$100,000 of Capital Value

Yield

GST Incl

Direct Benefit F1

$10.30

1,400,966

Indirect Benefit F2

$2.52

600,414

F1: Directly at Risk of Loss

Rateable land situated in the Heretaunga Plains Control Scheme area which Council considers receives protection from the risk of flooding up to a one per cent Annual Exceedence Probability (AEP) flood and of river alignment.

The benefits of these protection measures, i.e. stopbanking, river control and stability of channel location, are a reduction in the risk of loss of life, limb, land and capital investment such as orchards, vineyards, residential, commercial, industrial and supporting infrastructure situated on the Heretaunga Plains.

F2: Indirectly at Risk of Loss

Rateable land situated within the boundaries of the Hastings District and Napier City Councils which Council considers at risk from the indirect effects of river realignment and flood causing loss of infrastructure and general opportunities to the Community.

(b) Rates for Drainage Maintenance in specific areas on the Heretaunga Plains

These rates are set on the estimate of projected valuations of Land Value of those rating units that receive direct benefit of the specific drainage maintenance.

Rating units zoned industrial are charged a differential equal to 4 times the normal rate due to the expected rainfall run-off from these rating units, and their comparative land values.

Karamu Drainage Maintenance

The Havelock North community is considered to be an exacerbator to the Karamu Drainage Scheme since the rainfall run-off from Havelock North eventually discharges into the Karamu Stream.

The rates are to be set at $9.17 being a fixed amount per separately used or inhabited part of a rating unit on those properties identified on a specific mapped area of Havelock North. Where two or more rating units are contiguously joined, owned by the same person and used for the same purpose, then only one fixed amount will be payable.

The total amount of the rates is $48,346 (GST inclusive).

Karamu Enhancement

The purpose of this rate is to part fund the cost of the environmental enhancement work on the Karamu Stream and its tributaries.

The rates are to be set at $8.58 being a fixed amount per separately used or inhabited part of a rating unit on those properties identified on a specific mapped area of Havelock North. Where two or more rating units are contiguously joined, owned by the same person and used for the same purpose, then only one fixed amount will be payable.

The total amount of the rates are $45,196 (GST inclusive).

5. Upper Tukituki Catchment Control Scheme Special Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate on a graduated scale as set out in the schedule on the estimate of projected valuation land value of the rating units shall be set within the Upper Tukituki Special Rating area.

Schedule Rate – per $100,000 of Land Value

DIFFERENTIALS

(a)

(b)

(c)

(D)

(E)

(F)

UF7

(U1)

UF8

(U2)

UF9

(U3)

UF10

(U4)

$503.60

$377.70

$251.80

$125.90

$50.36

$5.04

$125.90

$75.54

$50.36

$5.04

The total rates to be assessed are $645,562 (GST inclusive) which are to be applied to the flood protection works of the Upper Tukituki Catchment Control Scheme.

6. Poukawa Drainage Special Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate on a graduated scale as set out in the schedule on the land value of the rating units shall be set within the differential rating area.

Schedule Rate – per $100,000 of Land Value

DIFFERENTIALS	PO1	PO2	PO3
	(A)	(B)	(C)
	$459.38	$76.56	$15.31

The rates of $25,959 (GST inclusive) are required for the maintenance work in the Poukawa drainage scheme.

7. Porangahau Flood Control Scheme Special Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set for the amount in the dollar on the land value of the rating units within the Porangahau area of the Central Hawke's Bay District being the Porangahau Flood Control Scheme Special Rating Area situated within the Hawke's Bay Region.

Schedule Rate – per $100,000 of Land Value

Differentials $10.05

The rates of $32,492 (GST inclusive) are required for maintenance work in the Porangahau Flood Control Scheme.

8. Paeroa Drainage Scheme Special Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002, a Rate shall be set on the rating units within the Paeroa Drainage Scheme Special Rating Area. Such rate to be set and assessed using the area system of rating on a graduated scale.

Schedule Rate – Dollars for each Hectare

DIFFERENTIALS

(A)

(B)

(C)

(D)

(E)

62.76

40.79

28.24

21.96

3.14

The rates of $21,642 (GST inclusive) are required for maintenance work in the Paeroa Drainage Scheme.

9. Ohuia Whakaki Drainage Scheme Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a Rate shall be set on the rating units within the Ohuia Whakaki Drainage Scheme Rating Area. Such rate to be set and assessed using the area system on a graduated scale.

Schedule Rate – Dollars for each Hectare

DIFFERENTIALS	A	B	C	D	E
	104.26	83.41	62.56	31.28	10.43

The rates of $55,972 (GST inclusive) are required for maintenance work in the Ohuia Whakaki Drainage Scheme.

10. Upper Makara Stream Catchment Control Scheme Special Rating Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on the rating units within the Upper Makara Stream Catchment Control Special Rating Area. Such rate to be set and assessed using the area system on a graduated scale.

Schedule Rate – Dollars for each Hectare

DIFFERENTIALS	UM1	UM2	UM3	UM4	UM5	UM6	UM7	UM8
	(A)	(B)	(C)	(C)	(D)	(D)	(E)	(F)
	49.25	39.40	29.55	29.55	17.23	17.23	2.46	0.99

The rates of $32,486 (GST inclusive) are required for maintenance work in the Upper Makara Stream Catchment Control Scheme.

11. Esk River and Whirinaki Stream Maintenance Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on all rating units benefiting from the maintenance work in the Esk River and Whirinaki Stream area.

Such rate to be set and assessed using the area basis of rating on a Differential Rating Scheme.

Schedule Rate - Dollars for each Hectare

DIFFERENTIALS	E1	E2	RI1		RI2	RI3
Esk River	39.45	16.32	39.79		133.71	432.31

	W1	W2		W3	W4	W5	W6	W7
Whirinaki Stream	146.81	110.66		357.77	147.23	3.69	44.61	15.83

The rates of $21,986 (GST inclusive) will be applied to the maintenance work in the Esk River and Whirinaki Stream Maintenance Scheme.

12. Te Ngarue Stream Flood Protection Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on all rating units benefiting from the maintenance work in the Te Ngarue Stream area.

Such rate to be set and assessed using the area basis of rating on a differential rating scheme.

Schedule Rate - Dollars for each Hectare

TN TN1

Differentials 29.15 184.31

The rates of $2,928 (GST inclusive) will be applied to the maintenance work in the Te Ngarue Stream Scheme.

13. Kopuawhara Stream Flood Control Maintenance Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on all rating units benefiting from the maintenance work in the Kopuawhara Stream area.

Such rate to be set and assessed using the area basis of rating on a differential rating scheme.

Schedule Rate - Dollars for each Hectare

	A	B	C	D
Differentials	136.40	54.56	27.28	6.82

The rates of $7,708 (GST inclusive) will be applied to the maintenance work in the Kopuawhara Stream Flood Control Scheme.

14. Wairoa Rivers and Streams Scheme

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on all rating units within the Wairoa District.

Such rate to be set on the capital value.

Schedule Rate – per $100,000 of Capital Value

Differentials $6.74

The rates of $116,398 (GST inclusive) will be applied to the maintenance work of the scheme.

15. Maraetotara Flood Control Scheme (Maintenance)

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on the rating units within the Maraetotara Flood Control Scheme Special Rating Area. Such rate to be set on the Capital Value.

Schedule Rate – per $100,000 of Capital Value

Differentials $9.21

The Rates of $12,741 (GST inclusive) will be applied to the maintenance of the scheme.

16. Maraetotara Flood Control Scheme (Loan Repayment)

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on the rating units for loan charges for the Maraetotara River Stopbank. Such rate to be set on the Capital Value.

Schedule Rate – per $100,000 of Capital Value

Differentials $18.60

The Rates of $17,188 (GST inclusive) will be applied to the loan repayments and interest payments of the scheme.

17. Central & Southern Area Rivers and Streams Scheme

These rates are set based on the estimates of projected valuations on the capital values of the rating units within the Taupo District, Hastings District, Napier City, Central Hawke's Bay District and Rangitikei District.

Schedule Rate – per $100,000 of Capital Value

Differentials 76.7 cents

The total rate required is $221,780 (GST inclusive) to fund removal of vegetation, bank stabilisation and land purchase on various rivers and streams.

18. Bovine Tb Vector Control

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate on all rural rating units containing 4.0468 hectares or more within the Region be set and assessed on the area basis in accordance with the Differential rating system.

Schedule Rate - cents for each Hectare

Group 50.33

The rates of $536,399 (GST inclusive) will be applied to Bovine Tb Vector Control work within the Region.

19. Plant Pest Strategy

Schedule Rate - cents for each Hectare

Group 39.30

The rates of $392,785 (GST inclusive) will be applied to the Plant Pest Strategy within the Region.

20. Animal Pest Strategy

Schedule Rate - cents for each Hectare

Group A B C

50.60 128.92 0

The rates of $1,163,247 (GST inclusive) will be applied to the Animal Pest Strategy within the Region.

21. Clean Heat Administration

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on the rating units within the affected airsheds of Napier and Hastings. Such rate to be set on the Land Value.

Schedule Rate – per $100,000 of Land Value

Differentials $8.98

The rates of $670,639 (GST inclusive) will be applied to the provision of a financial incentive package to encourage the replacement of open fireplaces and non-compliant wood burners with a more efficient form of heating and insulation.

The aim is to reduce the particles of polluting smoke in the affected airsheds.

22. Rates to Repay Loans to Homeowners for Clean Heat and Insulation

Council has resolved to provide/facilitate loan funding to assist homeowners for insulation where this is a shortfall between the cost of insulation (to EECA standards) and the grants available from EECA and other funders. Further, the Council will provide loan funding to homeowners in the identified airshed wishing to install a more efficient form of heating.

The loans for replacement of open fire or non-compliant wood burners will be 50% interest free. The loans for insulation which is available to all ratepayers in the region will be charged interest subject to the prevailing borrowing interest rate. The total loans plus interest will be repaid over 10 years as a fixed amount through a Targeted Differential Rate.

The Differential Rate to apply for each year over a 10 year period is $10.00 per $100.00 of borrowings uplifted by individual ratepayers. For example, if a ratepayer borrows $5,200, then the annual Targeted Differential Rate for that ratepayer would be $520.00 each year for a 10 year period. The borrowings comprise the loan, interest charge, service fee and Goods & Services Tax.

Pursuant to Section 16 of the Local Government (Rating) Act 2002, the 2010/11 rates are $34,800 (GST inclusive), and are to be set on the rating units that are servicing a loan for insulation or clean heat.

23. Economic and Tourism Development

Venture Hawke’s Bay, a Regional Council Business Unit, promotes economic and tourism development and in the past has been funded by the Regional, Hastings District and Napier City Councils. The Regional Council now directly rates all ratepayers in the region for this function.

The basis of rating is as follows:

30% of the total rates are to be funded by the commercial or industrial properties, this rate is based on Capital Value. The remaining 70% is to be collected from residential and rural properties as a Uniform Annual Charge.

Wairoa District ratepayers contribution is to be limited to 5% of the total rate.

Pursuant to Section 16 of the Local Government (Rating) Act 2002 a rate shall be set on all commercial and industrial rating units. Such rate is to be set on the capital value.

Schedule Rate – Per $100,000 of Capital Value

DIFFERENTIALS	Napier	Hastings	Taupo	Rangitikei	Wairoa	Central Hawke’s Bay
	$12.04	$11.41	0	0	$15.61	$12.22

Pursurant to Section 15 of the Local Government (Rating) Act 2002, a Fixed Charge shall be set on all residential and rural rating units.

Schedule Rate – Per Fixed Charge

DIFFERENTIALS	Napier	Hastings	Taupo	Rangitikei	Wairoa	Central Hawke’s Bay
	$16.00	$16.00	$16.00	$16.00	$11.76	$16.00

The rates of $1,380,000 (GST inclusive) will be applied for the purposes of economic and tourism development.

24. Due Dates for Payment of Rates

The rates are due and payable on or after 1 October 2010. Pursuant to Section 57 of the Local Government (Rating) Act 2002 a penalty charge of 10% will be imposed on the current rates remaining unpaid as at 1 February 2011.

John Keenan

Financial Accountant

Paul Drury

Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Adoption of the Heretaunga Plains Urban Development Strategy

REASON FOR REPORT:

1. The purpose of this report is to inform Council of the outcome of the hearing of submissions received on the Draft Heretaunga Plains Urban Development Strategy (HPUDS), Joint Committee recommendations on the submissions, and seek the adoption of HPUDS in accordance with the recommendations of the Joint Committee.

2. The relevant documents have been previously circulated to Councillors and are available to the public on Council’s website. They include:

2.1. an Executive Summary of the Joint Committee’s Hearing Report

2.2. a summary of the Joint Committee’s recommendations

2.3. the full Joint Committee Hearing Report

2.4. Joint Committee Recommended Amendments

2.5. the Draft Heretaunga Plains Urban Development Strategy as amended.

3. Only the Executive Summary of the Joint Committee Report is appended to this agenda item.

4. Both the Hastings District Council and the Napier City Council adopted the Draft Heretaunga Plains Urban Development Strategy at their meetings held on the 5^th and 11^th of August respectively, conditional upon the adoption by the other Councils.

Background

5. The development of the HPUDS has involved a collaborative approach by the Hastings District Council, Napier City Council and Hawke's Bay Regional Council to plan and manage urban growth for the period 2015-2045. The strategy takes a long-term integrated view of urban land-use and infrastructure.

6. HPUDS is not a strategy that stands alone; it is a key component of a range of programmes and plans aimed at sustainably managing urban development on the Heretaunga Plains over 30 years. HPUDS will provide an overall framework for aligning the plans and strategies of organisations that deal with urban growth planning.

7. Other strategies and plans that will be influenced by HPUDS include the Regional Land Transport Strategy, the Regional Land Transport Programme, each of the partner Councils’ growth strategies; Long Term Council Community Plans (LTCCPs), the Regional Policy Statement and District Plans.

8. In developing HPUDS, the three partner Councils have chosen to adopt the Special Consultative Procedure (SCP) set by Section 83 of the Local Government Act 2002. The SCP provides robustness to the strategy development process should elements of it be tested in the Environment Court.

9. A total of 108 submissions on the draft strategy were received over a six week period ending 14 May 2010 after which submissions were analysed and commented on by Council Officers, before the hearing of submissions by the HPUDS Joint Committee.

The Hearing and Joint Committee Recommendations

10. Between 14 and 21 June 2010, the HPUDS Joint Committee listened to verbal submissions and considered all written submissions, before deliberating and making recommendations on any changes to the HPUDS.

11. On 21 June 2010, the Joint Committee resolved through its Joint Committee Hearing Report to recommend back to the three partner Councils the adoption of HPUDS.

12. A workshop was also held for all Councillors on 29 July 2010 which reported on the key themes, findings and recommendations that arose through the hearing process prior to the Council Meeting. A copy of the Workshop’s power point presentation has also been previously circulated.

13. It is important to note that in the event that the Council deems it necessary for further amendments of the strategy, over and above that recommended by the Joint Committee (other than minor editorial amendments), they will need to be endorsed by all three partner Councils’ before the strategy can be formally adopted.

Discussion

14. The strategy is a higher level directional document for future growth in the Heretaunga Plains. In order to give it statutory weight, this high level direction must be incorporated into the Regional Policy Statement. District Plans must then give effect to the Regional Policy Statement. The review of the Regional Policy Statement to incorporate the principles and settlement pattern of HPUDS will get underway as soon as the Strategy is adopted with the objective of notifying the reviewed sections during the July to October 2011 period.

15. The Strategy contains an Implementation Plan with indicative timeframes and priorities for work that needs to be done as the three Councils prepare their respective RMA, planning, structure planning and asset management plans leading up to the review of District Plans and the next Ten Year Plan round. A governance and operational structure is proposed in the Implementation Plan to ensure the continued collaboration and implementation of the actions that have been identified.

16. For the Regional Council, further work will need to be undertaken around the criteria for versatile soils.

DECISION MAKING PROCESS:

17. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). This decision has been subject to the special consultative procedure and therefore meets the requirements of the Local Government Act.

RECOMMENDATIONS:

That the Council :

1. Agrees that the decisions to be made are significant under the criteria contained in Council’s adopted policy on significance and that Council has conferred directly with the community and persons likely to be affected by or to have an interest in the decision through the special consultative procedure set out in Section 82 and 83 of the Local Government Act 2002.

2. Adopts the amended Heretaunga Plains Urban Development Strategy in accordance with:

2.1. the Executive Summary of the Joint Committee’s Hearing Report

2.2. the full Joint Committee Hearing Report

2.3. the Joint Committee’s Recommended Amendments

2.4. any further minor editorial amendments made to the strategy at the meeting on 25 August 2010.

Helen Codlin

Group Manager Strategic Development

Andrew Newman

Chief Executive

Attachment/s

1 View

Joint Committee Executive Summary

Joint Committee Executive Summary

Attachment 1

REPORT OF THE JOINT COMMITTEE ON SUBMISSIONS TO THE DRAFT HERETAUNGA PLAINS URBAN DEVELOPMENT STRATEGY

EXECUTIVE SUMMARY

1.0 Introduction

1.1 HPUDS is a collaborative approach by the Hastings District Council, Napier City Council and Hawke's Bay Regional Council to plan for urban growth on the Heretaunga Plains for the period 2015-2045. The Heretaunga Plains covers an area which embraces Waipatiki to the North, Waimarama to the South, Maraekakaho to the west and the Pacific Coast to the east.

1.2 The Strategy is a broad scale, long-term, integrated land-use and infrastructure strategy prepared under the framework of the Local Government Act. Much of the strategy can however, only be implemented through subsequent changes to the Regional Policy Statement and District Plans prepared under the Resource Management Act (RMA). Accordingly further detailed research, policy analysis and formal public consultation will occur before key recommendations take statutory effect. The strategy sets a direction and framework for this work and sends a strong signal to the community and development interests about how the Councils see urban development occurring in the future.

1.3 This Executive Summary presents the key findings of the Joint Committee appointed by the Napier City Council, the Hastings District Council and the Hawke’s Bay Regional Council to hear and make recommendations on submissions received on the Draft Heretaunga Plains Urban Development Strategy (HPUDS).

2.0 Background

2.1 Before reporting back on the submissions we consider that it is important to recall what it is we are trying to achieve through HPUDS. We start by reminding ourselves that the Heretaunga Plains is a resource rich area of New Zealand, blessed with high value soils, good water supply and a temperate climate. Understandably with such resources the Plains have been the focus for settlement with the main industrial base being the agriculture and horticulture sectors. The value of the soil and water resources to the economy and the wellbeing of the community remain vitally important, but ongoing growth in the residential and industrial sectors has led to increasing competition for the water and soil resources.

2.2 Over the past twenty years urban development on the Heretaunga Plains has been characterised by single dwelling greenfields subdivision and development on the flats and lightly sloping elevated sites; often on productive land with some containing what could be described as highly versatile soils for food production. Intensification has been through infill development where the back part of a section is subdivided off and a single dwelling erected so two detached dwellings exist where one previously stood. This is not considered a good urban design outcome and places unplanned pressure access existing infrastructure networks, which is difficult to plan for and expensive to accommodate.

2.3 Another feature has been the development of rural residential sites and strong demand for rural lifestyle lots; to the point that the lifestyle value of rural property exceeds its value for commercial food production.

2.4 These features contrast with the previous 20 years of development in the Hastings area, with greenfields development on the shingle beds in Flaxmere area and the Havelock North hills.

2.5 There is a strong emergent concern about continuing “urban sprawl” over productive land, especially the more versatile soils, and the land value distortions that rural residential and lifestyle lot development creates. The result is that commercial food production is not sustainable economically, and that this form of residential growth is not sustainable environmentally and socially, particularly against the backdrop of “peak oil”, carbon emissions and climate change.

2.6 In addition Napier and Hastings previous Urban Growth strategies, while cognizant of each other, were developed independently of each other and for a variety of reasons, the release of greenfields land has been uncoordinated and un-balanced. This has led to situations where such land was in short supply in one city and abundant in another. The lack of balanced locational choice has led to people choosing to live and work in different centers, driving increased travel, fuel use, carbon emissions and demands on the road transport infrastructure. Again this is no longer considered sustainable and balanced supply choices between the two centres and coordinated implementation of growth areas is considered very important to the community and the environmental outcomes we desire.

2.7 Accordingly the key drivers for HPUDS are;

· Community recognition that both the soils and water resource are finite and under increasing pressure and should be better managed.

· The need to take a sub regional view to the growth needs over a longer period of time for balanced growth.

· The need to identify where the knowledge gaps are in planning for the long term growth.

· Accepting that the employment base of the Heretaunga Plains will continue to rely on land based industry.

· Establishing appropriate and planned responses to long term issues such as climate change and energy efficiencies.

3.0 Submissions

3.1 A total of 108 submissions were considered, many covering multiple points of submission. As a result we needed to consider the points of submissions under a number of wide ranging themes, rather than submission by submission. These submission themes are covered in the Summary of Submissions and Findings and the Full Report. More detail is available from the officers’ reports, which helped inform our deliberations, alongside a great many thoughtful submissions. This Executive Summary accordingly deals only with the major areas of concern

4.0 Vision and Principles

4.1 An important part of the strategy development was the establishment of a Vision and Guiding Principles. These formed the basis for evaluating different growth scenarios. Similarly they formed an important part of evaluating the submissions. The Vision and Guiding Principles themselves were open for challenge through the submission process, however no submissions were received in relation to them; giving us confidence that the strategy was generally heading in the right direction.

4.2 The Principles were comprehensive in nature and we note however that there will be situations where principles will conflict with each other and some compromises will be required. Without denigrating the importance of each of these principles, the Committee wishes to paraphrase the more important ones relating to the recommended settlement pattern, which is where the more significant issues were raised, as follows:

· Protection of versatile soils for food production.

· Settlement patterns that promote sustainable transport and reduced fuel dependency.

· Balanced housing choice, on both flat and elevated land, between Hastings and Napier.

· Choice in housing type, location and affordability.

5.0 Settlement Pattern

5.1 Deriving from the Vision and Principles and the evaluation of the alternative scenarios the Draft Strategy proposed a more compact urban form that:

· Avoids the more versatile soils and retains productive use where possible.

· Moves toward establishing long term urban limits to define boundaries and create certainty.

· Promotes more intensive re-development within existing urban areas and greenfields locations.

· Builds on existing urban settlements.

· Promotes greater variety in housing choice and affordability.

· Recognises Mana Whenua aspirations.

5.2 Accordingly, the proposed settlement pattern is intended to be a framework that will provide choice of location, whether that is in Napier or Hastings, or in an urban or rural environment; and choice of housing type to cater for growing families or people living alone. At the same time, we want to ensure that our existing transport and water services infrastructure are used efficiently. Overall, we want to make sure that urban development does not unnecessarily expand over the versatile and productive soils of the plains.

6.0 Major Findings on Submissions

Assumptions, Monitoring and Adaptability.

6.1 A number of submissions raised concerns about the underlying growth and demographic assumptions, including the possible housing needs of the elderly and Maori populations, which are expected to form a greater proportion of the total population over the planning period. In a similar vein a number commented on the need for regular monitoring and review to ensure the strategy remained adaptable to changing circumstances.

6.2 We are clear in our own minds that this is an urban development strategy, not an economic development strategy. The strategy is therefore about how anticipated growth should be accommodated and provided for. We consider that the detail of what type of housing will be needed or possible in the future will be determined by the demand from those future communities. In that respect we note for example, that the demands of older people have changed significantly over the last 30 years and are likely to continue to change over the next 30 years.

6.3 We are satisfied that the strategy has been developed using commonly applied methods and the growth assumptions are based on the best available data and are consistent with national trends and a large number of global influences. The most robust and accepted method in setting base demographic assumptions from which to plan for has been used. We accept however, that there is no absolute certainty in determining what the future may hold and trends may change dramatically, although it is more likely that the changes will be gradual and detectable.

6.4 Accordingly we have recommended that growth rates and other underlying assumptions should be reviewed no less than after every census so that necessary adjustments made in good time. Furthermore we have recommended changes to outline the specific circumstances that might lead to a reconsideration of growth areas and the criteria that should to be applied in the event that more, or less, greenfields land may be needed in the future under different growth projections.

Settlement Pattern, Urban Limits and Greenfields Sites

6.5 We heard a lot of submissions concerned with the concept of a more compact settlement pattern, defined urban limits and the potential consequences of intensification. The latter we discuss below. Turing to the former two, we have above outlined our reasoning for our endorsement of this fundamental principle of the draft strategy.

6.6 We comment further, that unless the boundary between rural and urban is clear at the outset, it can be difficult for Councils to manage, long term land use and infrastructure and its funding. It is important, in our view, that council, developers and the community know which areas are for future development and when this is likely to occur. How and when such limits begin to manage urban growth on the Heretaunga Plains, will be established and included within regional and territorial authority policy and regulatory documents formulated under the RMA 1991.

6.7 However the transition to this end state of a clear urban boundary envisages the need for more greenfields sites. Unsurprisingly therefore, we considered a number of submissions seeking the inclusion of greenfields land that was not identified in the settlement pattern as a growth area, and opposition to some that were on the basis of the “natural capacity” of the soil resource.

6.8 While each argument in isolation may have merits, the purpose of the strategy is to put new growth areas into an overall context and direction for a future end state. Accordingly we do not deal with these in this Executive Summary, but note that we considered them against the overall thrust of a compact urban footprint and our criteria for new greenfields site selection aimed at “rounding” or “squaring off the existing urban perimeter, especially where soils are of lesser versatility or productive capacity is already compromised.

Intensification

6.9 An overwhelming number of submissions dealt with the concept of intensification, including the volume, rate, desirability or undesirability and the pre-conditions and conditions necessary to successfully achieve it. A number of submissions generally supported intensification, but queried whether the intensification targets can be met within the timeframe suggested in the strategy. There appeared to be some confusion over the transitioning timeframe to achieve the targets indicated in the daft strategy as published.

6.10 The strategy aims to enable the sub-region to make a gradual shift from the current forms of development to a more intensified type as it is implemented. Rather than aiming for 60% intensification over the period from 2015 to 2045, we have recommended that transitioning from 45% at 2015 to 60% at the end of the period as a more realistic target. This requires amendments to the allocated growth between greenfields, intensification and rural development to reflect a more gradual evolution of the housing stock and amenity conditions than the published draft implies.

6.11 It should be noted that the target remains a stretch target, as traditional intensification methods using infill subdivision necessarily has limits in supply and multi site redevelopment will be needed. In addition to regular monitoring and review, we also note that the strategy contains a number of specific actions which focus on further work to evaluate the capacity of the existing built environment to meet intensification targets. This work will be required prior to any specific references to the settlement pattern being given statutory effect in the RPS and District Plans.

6.12 Turning to the benefits and potential amenity and other pitfalls of increased residential intensification, the committee agrees that intensification will need to be carefully managed to ensure positive outcomes. Intensification must be part of a package that ensures amenity levels and quality of life for residents is enhanced.

6.13 We detected a misunderstanding in the submissions of what was meant by the term “intensification”. We note that the intensification targets will not be met by traditional infill methods where individual lots are subdivided from the rear of an existing site. There will need to be a change in how intensification might be carried out through the use of design guidelines, district plans, financial incentives and possibly demonstration projects. More importantly it is important that people understand that intensification will take place across four different sectors:

1. Greenfield areas (new housing areas) will be required to achieve more houses per hectare.

2. Intensification of parts of the city through redevelopment of existing sites.

3. Brownfield sites. These are large areas of land within the existing built area of the city where the use may change and create opportunity for residential development.

4. Traditional infill development where 1 site is divided into 2 lots.

6.14 There are two notable points here. Firstly, on the growth rates predicted, the target level of intensification will not be achieved immediately, but will be worked towards over the period. In most cases the change will be largely imperceptible year on year in most parts of the existing environment. Secondly, intensification areas will be targeted to areas more suited to intensification and with higher amenity outcomes than traditional infill, which could otherwise happen anywhere. Special character areas and those with newer housing stock, or difficult topography are unlikely to see much if any change. We have made recommendations to strengthen the strategy on these and other points relating to good urban design.

6.15 Beyond this the strategy needs to remain high level, and other than acknowledging the issues and providing some general direction, detailed aspects can only be ensured through district plans and associated Council initiatives as outlined above.

Coastal Settlements

6.16 Several submissions were concerned that the positive contributions that coastal residential growth can make to the region have not been addressed by the Strategy.

6.17 We are reminded that the strategy is predicated on a sustainable development approach. Such an approach avoids excessive dispersal of communities from major employment and business nodes and main population centres, which would otherwise encourage increased travel and car dependency, fuel use and carbon emissions. Accordingly it seeks to provide some limited coastal location choice, building on existing coastal communities where servicing issues can be overcome and in areas free from natural hazards and sensitive natural areas and landscapes.

6.18 We are mindful that the recommended changes to implementation of the preferred scenario mean that more Greenfield land will be required in the early years of the planning period for the HPUDS strategy as the region works towards increasing its level of intensification to the 60% target. Coastal areas could potentially help to supply some of the additional and delay/reduce the need to open up further greenfield areas on the urban periphery that may be more suitable for primary production.

6.19 The most appropriate area for more growth in the coastal market is, in our view, the Te Awanaga/Haumoana area and we have made some recommendations to increase the housing allocation in these areas

Rural Residential, Rural Lifestyle and Rural Housing

6.20 Again we heard a number of submissions on the contribution these sectors of the housing market could make to meeting demand. We will not spend much time on this here, except to say the evidence we have is that there is a surplus of rural residential sites close to the urban areas already.

6.21 More remote rural residential and rural lifestyle lot development is in fact advancing a dispersed settlement pattern that is not sustainable in the long term, with reverse sensitivity implications for rural production. Other than allowing for the limited choice for the market that is already available, no greater opportunities, in our view, should be encouraged.

The Heretaunga Plains Soil Resource

6.22 One of the primary drivers of the Strategy is the protection of the plains soils from urban sprawl and many submissions, both written and verbal, strongly supported this approach. At the same time some submissions expressed concern that ‘ring fencing’ the plains and protecting the soils at all costs would hinder the region unnecessarily. It was pointed out to us that a range of terms have been used in the strategy with respect to describing the soils the strategy aims to protect. These terms include; versatile soils, versatile soils for productive purposes, productive soils and productive land.

6.23 We heard that the Heretaunga Plains uniqueness is a combination of fertility, climate and water and that is what gives it its versatility. These submitters considered that there was a lack of guidance in the strategy for planners to determine what soils should be protected from development and that a simple matrix to guide planners is required. We also heard of the need to take into account climate change and the possibility of new crop types being grown in this area and also that the strategy needed to be flexible enough to allow development on poorer blocks of soil.

6.24 We refer back to the key principle which we find encapsulates the essence of what this Strategy is seeking to achieve in this area: Productive value of its soil and water resources are recognized and provided for and used sustainably. We see no need to alter the wording in any way.

6.25 However, we do see the need for further clarity regarding the soil resource to be protected from use of the word versatile so everyone is clear on what we are seeking to protect. The corollary of that is that we can then address what can, and what cannot, happen on soils that are not classified as ‘versatile”.

6.26 While versatile soils may warrant a higher degree of protection, not being classed as so does not mean it is appropriate that they are available for urban use where that is contrary to the other principles of this strategy, sustainable development under the LGA or sustainable management of natural and physical resources under the RMA. It is important that we get clarity around this issue, so everyone understands the implications of having their land declared versatile or otherwise. The collation of information about the soil /climate/crop type potential and limitations is important from an economic development perspective and the Regional Council, along with the economic development agency can assist in the collation of that information.

Mana Whenua

6.27 We received many submissions from various mana whenua interests. There was an understandable misconception that the strategy, while on the one hand recognizing mana whenua interests in marae based housing and papakainga housing opportunities, did seem to arbitrarily limit those to within the allocation for rural housing.

6.28 The officers’ report and recommendations, which we endorse, re-assured most of those submitters. In essence we recommend no limits on marae based and papakaianga housing where the servicing constraints can be overcome.

6.29 We do however want to be clear that we do not expect large scale development of this nature that would undermine the strategy. We consider that such development that does occur will reduce the allocations for future growth across greenfields, intensification and rural development. That is all three classifications as we see it as an alternative for some Maori from these more conventional housing sectors.

6.30 We also want to be clear that servicing will likely have to be on-site and funded other than through Councils. The expectation of minimising the loss of versatile soils that the strategy is partly predicated also needs to be strongly considered and responded to in Maori housing developments. We have recommended a Hui be held with the Joint Committees’ of the respective Councils’, mana whenua submitters and other mana whenua related agencies to make these aspects very clear.

7.0 More Information.

7.1 We have produced a Summary of Findings and Recommendations as a bullet point type quick references so readers can see what we are recommending in relation to the different themes raised in the submissions that are of interest to them. The Full report provides more detail on our reasoning for those wishing to have it and we note that the officers reports on the submissions provide even more detail and these are available upon request.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Maraekakaho and Ngaruroro Mediation Outcomes

REASON FOR REPORT:

1. This report advises Council of the outcomes of recent mediation held in relation to 50 Environment Court appeals from Te Taiwhenua o Heretaunga on resource consents granted within the Ngaruroro catchment, and appeals from three applicants on four resource consents granted within the Maraekakaho Stream Management Zone.

2. The report also seeks Council’s approval on agreements made at the mediation in relation to the appeals on the four resource consents granted within the Maraekakaho Stream Management Zone.

Background

3. A report to the Environmental Management Committee on Wednesday 9 September 2009 (Agenda item 9) prepared and presented by Michelle Conland, detailed the background to the appeals to the Environment Court.

4. The report recommendations that were adopted by Council on 23 September 2009 were that Council:

4.1. Authorises officers to attend mediation of the appeals lodged with the Environment Court with respect to the Council’s decisions on the various Ngaruroro catchment water permit applications.

4.2. Delegates, in accordance with s34A of the Resource Management Act, to the Group Manager Resource Management the authority to sign any mediated agreement on behalf of Council in relation to Te Taiwhenua o Heretaunga appeals on 50 Ngaruroro water takes.

4.3. Retains its existing delegation to sign any mediated agreement in relation to the four appeals from three applicants to take water from the Maraekakaho Stream Management Zone.

5. Court mediation was held in Hastings on 20–22 July 2010.

Maraekakaho Resource Consents

6. As a result of the 2009 consents renewal process for the Ngaruroro Catchment, the consent hearing panel granted the applications in the Maraekakaho Stream Management Zone subject to a low flow of 90% of MALF over the hydrological year (i.e. a minimum flow of 120 L/s) for the following reasons:

6.1. This would provide a safer default minimum flow to protect the in-stream environment

6.2. Changing from a weekly to monthly volume of take would also achieve a 7% reduction in volume which would address matters in Policy 39(c) of the RRMP.

7. Resource consent applicants within the Maraekakaho Stream Management Zone appealed this decision on the basis that it would extend the irrigation ban days within the catchment.

8. Since the appeals were lodged, Council staff have undertaken further investigations and calculations to determine the naturalised MALF of the Maraekakaho River (i.e. the best estimate of MALF if no water was abstracted). The findings of the investigation are that the naturalised MALF is 120.8 L/s. A new 90% MALF of 109 L/s is recommended and supports the basis of the Hearing Panel’s decision.

9. A report presenting the findings from the investigation was prepared (Maraekakaho Stream Minimum Flow, Plan No. 4224) and is attached.

10. This report was distributed to the appellants prior to the mediation meeting, and discussed with all parties at the meeting. The outcome of the discussion was that the three applicants agreed to accept a revised minimum flow of 109 L/s as a consent condition on the four consents appealed.

11. The parties also agreed to extend the deadline for the installation of a data logger and telemetry unit for one year (from 1 September 2010 to 1 September 2011). The reason for this change is to reflect a realistic timeframe for the installation, in light of the time taken to resolve the appeal.

12. Given that the delegation to sign any mediated agreement in relation to the four appeals from three applicants to take water from the Maraekakaho Stream Management Zone has been retained by Council, the appeals cannot be settled until Council agrees to the mediated outcome.

Ngaruroro and Maraekakaho Resource Consents Appealed by Te Taiwhenua o Heertaunga

13. Te Taiwhenua o Heretaunga filed appeals against 50 resource consents that were granted to applicants within the Ngaruroro catchment. Te Taiwhenua o Heretaunga considered that the Hearing Panel’s decision did not apply a precautionary approach with regard to groundwater recharge, the Assessments of Environmental Effects (AEE) did not take into account tikanga Maori and the relationships of Maori with the catchment, and that the decision failed to give weighting to their submission.

14. The main relief sought by Te Taiwhenua o Heretaunga was to have a condition added to the consents, restricting the taking of water to a six month irrigation season. This option was put to the applicants in a letter prior to the Environment Court mediation but was not supported by the majority of applicants.

15. Council employed an irrigation specialist, Mr Dan Bloomer of Page Bloomer Ltd, to investigate options that could address the concerns of both Te Taiwhenua o Heretaunga and the consent applicants, whilst supporting the basis of the Hearing Panel’s decision.

16. Mr Bloomer considered that the existing consent conditions, if enforced, would provide sufficient scope to enable the protection of the environment and ensure irrigators were not wasting water or taking it when it was not needed, whilst enabling consent holders the flexibility to ensure their crops did not fail due to any monthly restrictions on when they could take water.

17. Mr Bloomer suggested that Council could monitor condition 4 of the consents, “the total volume of water taken shall not exceed that required to replace soil moisture depleted by evapotranspiration over the irrigated area, up to a maximum of x cubic metres” by comparing each of the consent holder’s actual taking with known soil moisture conditions. If the telemetered water meter measurements indicated that water was being taken when the soil moisture conditions were not in deficit then Council’s compliance staff could follow up with a phone call or a visit and take the matter further.

18. During the course of the mediation the parties agreed to this approach, and also to the recommendation that a new condition be added to each consent, that states “the consent holder shall, upon request by the Hawke’s Bay Regional Council (Manager Compliance), supply details of the crop type and area irrigated under the consent.” This condition would enable compliance staff to match the water take data to the crop type and area and determine whether or not an appropriate amount of water had been taken.

19. As for the Maraekakaho appeals, the parties also agreed to extend the deadline for the installation of a data logger and telemetry unit for one year (from 1 September 2010 to 1 September 2011).

20. Te Taiwhenua o Heretaunga agreed to Mr Bloomer’s suggestions and advised that they would amend their relief sought to limit the maximum monthly volume of water that may be taken under each water permit to 50 per cent of the consented volume between 1 May and 31 August each year. This was agreed to by the applicants that were present at the mediation, and Council staff.

21. The parties have agreed that aside from the above changes, the Hearing Panel’s decision is to remain the same. The changes are within the scope of the relief sought in the appellant’s original submission.

22. Agreements between the parties have now been reached for 44 consents. At the time of writing this report five applicants are still to contact Simpson Grierson with regard to the appeals. Three appeals have been filed with the Environment Court but require Fish and Game New Zealand (Hawke’s Bay Region), as a section 274 party to the appeals, to sign the joint memorandums in support of the draft consent orders. Two appeals were withdrawn by Te Taiwhenua o Heretaunga at the mediation meeting.

23. The appeals are not legally settled until an Environment Court judge agrees to and signs the Consent Orders.

24. Staff consider that the mediated outcome retains the integrity of the Panel’s original decision, while reaching agreement with the parties to the appeals. Staff acknowledge the assistance of the Ngaruroro Users group and particularly the Chairman, Mr Mike Glazebrook, in liaising with the 50 water users.

25. As staff attained Council delegation for this part of the mediation, no Council decisions are necessary on these matters as part of this paper.

Costs

26. Given the significant number of appeals and section 274 notices lodged by the multiple parties and the significant amount of time spent by staff in attaining a mediated outcome to avoid Court, significant unbudgeted expenditure has been incurred.

27. The costs of the appeals, to 30 June 2010, was $58,734 (GST exclusive) including staff time, legal fees and payments to consultants.

28. Council was invoiced $5,500 (excl GST) by Simpson Grierson for the month of July 2010, and have advised that a further $13,000 (excl GST) remains to be billed for time spent on the appeals since the July invoice. Simpson Grierson has estimated that the cost to file the 40+ draft consent orders with the Council could be a further $14-16,000 (excl GST.

29. Staff time after 30 June 2010 cannot be retrieved at present because the reporting part of Council’s new financial system is still being developed.

30. Therefore, based on the above figures and including staff time accrued since 30 June 2010, the cost of resolving the appeals will be in excess of $100,000 (excl GST). This amount is not recoverable and is unbudgeted. While a significant financial exposure, staff consider that the amount would be significantly more if a Court hearing was required for 40+ consents.

31. It is important to recognise the significant limitations the Resource Management Act (RMA) imposes on local authorities with respect to recovering costs associated with appeals to the Environment Court. There are no provisions in the Act to enable councils to recover the actual and reasonable costs incurred as part of these processes. Council has no control over the initiation of these processes and has no choice but to participate in accordance with due process as required by statute.

DECISION MAKING PROCESS:

32. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded the following:

32.1. Sections 97 and 98 of the Act do not apply as these relate to decisions that significantly alter the service provision or affect a strategic asset.

32.2. Sections 83 and 84 covering special consultative procedure do not apply.

32.3. The decision does not fall within the definition of the Council’s policy on significance.

32.4. The persons affected by this decision are the resource consent holders, the appellant and the section 274 party to the appeals.

32.5. The options for Council to consider are:

32.5.1. to accept the outcome of the mediation with regard to the four appeals on the resource consents in the Maraekakaho Stream Management Zone, and to authorise Council’s counsel to sign the joint memorandums in support of the draft consent orders, or;

32.5.2. to reject the mediation outcome with regard to the four appeals on the resource consents in the Maraekakaho Stream Management Zone and instruct staff to proceed with the appeals to the Environment Court.

32.6. Section 80 of the Act covering decisions that are inconsistent with an existing policy or plan does not apply.

32.7. 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 having given due consideration to the nature and significance of the issue to be considered and decided, and also the persons likely to be effected by or have an interest in the decisions to be made.

RECOMMENDATIONS:

That the Council :

2. Receives the report titled ‘Maraekakaho and Ngaruroro Mediation Outcomes’.

3. Accepts the outcome of the mediation with regard to the four appeals on the resource consents in the Maraekakaho Stream Management Zone as follows:

3.1. A revised minimum flow of 109 L/s based on the findings of investigations relating to the naturalised MALF for the Maraekakaho Stream Management Zone

3.2. Extending the deadline for the installation of data loggers and telemetry units for one year, to 1 September 2011, to reflect a realistic timeframe given the time it has taken to resolve the appeals

and instructs Council’s counsel to sign the joint memorandums in support of the draft consent orders.

4. Notes the unbudgeted and unrecoverable expenditure incurred to defend the appeals.

Natasha Berkett

Consents Officer

Darryl Lew

Group Manager Resource Management

Attachment/s

Maraekakaho Stream Minimum Flow Scientific Evidence

Under Separate Cover

Draft Submission to the Ministry of Economic Development

Attachment 1

18 August 2010

Our Ref :

Draft Energy Strategies

Ministry of Economic Development

PO Box 1473

WELLINGTON 6143

By email: nzes@med.govt.nz

Dear Sir/Madam

Submission on draft new zealand energy strategy & draft new zealand energy efficiency & conservation strategy

1. Introduction

1.1 The Hawke's Bay Regional Council welcomes the opportunity to comment on the Draft New Zealand Energy Strategy & Draft New Zealand Energy Efficiency & Conservation Strategy. Council supports the government’s initiative to prepare these strategies and to taking a whole of government approach to them. This submission has been endorsed by Council.

2. Preamble

2.1 Hawke’s Bay has a primary sector based, export driven economy. Agriculture and food processing together account for a third of the regional GDP, indirectly it is considerably more. Dominated by sheep and beef farming the region is also New Zealand’s premier pipfruit and summer fruit producer as well as New Zealand’s second largest grape producer. The cost of energy a significant factor in the production of our products and directly influences how competitive our producers pricing can be in global markets.

2.2 In its Strategic Goals for the region the Council has recognised the importance of renewable energy seeking to “develop regional understanding of renewable energy options and advocate renewable energy use” along with the need to “facilitate planning for the design and development of integrated regional infrastructure which meets present and identifiable future needs, in partnership with relevant organizations”

3. General Comments to Draft New Zealand Energy Strategy

3.1 The Council generally supports the Draft New Zealand Energy Strategy. Central to the Draft Strategy is a strong desire to develop new energy resources. The Council would be supportive of this.

3.2 The Council is supportive of the shift toward a lower carbon economy and views the Governments lead toward embracing new energy technologies as integral toward achieving this.

3.3 The Council understands the inherent tensions and trade-offs in delivering energy policy across government and industry. While noted the Ministry of Economic Development will manage the implementation of the Strategy across government, Council (on behalf of our region’s primary producers / growers) would be interested to view the thoughts of New Zealand Trade & Enterprise how this strategy could position New Zealand’s primary sector internationally from a brand and pricing perspective.

3.4 The Council welcomes Government’s diversification of energy resources but would like more clarity around Government’s role when encouraging further and new investment.

3.5 Future proofing energy security is important for Hawke’s Bay. Our regional economy is interspersed between the “rural and urban” the length of the Eastern/Central corridor of the North Island and as such has potential to draw on a mix of energy resources to allow industry to operate efficiently while at the same time stimulate increased production. Small scale or micro-generation for industry and domestic alike as key initiatives Council would like government to focus more strongly on.

Example: Pan Pacific operations at Whirinaki

Pan Pac is one of the largest integrated forestry, sawmilling and pulp operations in New Zealand and has been operating from its Whirinaki site since 1973.

· It is responsible for approx 2.7% of the region’s workforce.

· In 2009 it generated $235m in sales in wood products with $192m (82%) of that exported.

· Pan Pac accounts for 6% of New Zealand’s total wood product exports.

Pan Pac currently shut down their processing for 2-3 hours each day at peak demand times so would welcome the ability to self-generate energy to operate at these peak times.

Regional industry such as Pan Pac need the ability to implement energy systems that provides security around supply of energy over the long term which in turn future proofs the region.

3.6 Council has also identified initiatives to promote energy efficiency as another key strategy to future proof the region’s energy security and would like to see the Government collaborate with ourselves and industry on this basis.

3.7 Government’s desire to minimise barriers to investment in renewable energy resources and encourage uptake of new technologies is supported by the Council and again welcomes the opportunity to work with government especially around encouraging industry associations and larger scale infrastructural organisations to engage these opportunities as a means to support their own energy needs.

3.8 The Strategy indicates willingness for Government and Council collaboration to minimise barriers to investment relating to the regulatory obligations of Councils considering applications regarding new and renewable technologies. While Council is generally supportive of the notion to minimise barriers we would welcome direction and guidance where relevant in the national interests, but not at the expense of sound regional and local decision making.

3.9 The Council is supportive of the Government’s “Warm Up New Zealand: Heat Smart” Programme. We are aware that while limited-income homeowners are targeted, those in need are not necessarily homeowners. The policies lack flexibility to consider residents in homes owned by family & whanau trusts and charitable organisations.

4. General Comments on Draft New Zealand Energy Efficiency and Conservation Strategy

4.1 The NZEECS clearly sets out the Governments policy and priorities for promoting energy efficiency, energy conservation and renewable energy for the next 5 years. Council can clearly see where the NZEECS interface with our Regional Transport and Economic Development Strategies and Regional Policy Statement.

4.2 It is clear the NZEECS is trying to empower business and domestic to make wise decisions not just in their use of energy but also in choosing to build capacity to conserve now and to ready themselves for the uptake of new technologies and energies. This theme highlights personal and individual choice as key to change requiring social marketing strategies to be implemented over a long period of time.

4.3 This is continued via the “carrot on the end of a stick” aspirational theme to each sector’s targets delivered by policies that while tangible do “encourage” or “support” other parties to make the changes. Council appreciate that Government can only lead in this regard, but it can assist change by phasing out for sale products that are not efficient users of energy.

4.4 The Strategy makes no mention of the continued importation of second hand cars into New Zealand which runs counter to the government’s emphasis on promoting “clean & efficient” transport networks and empowering people to make energy efficient transport choices.

4.5 The Council acknowledges the strategies attempt to address energy efficiencies through strengthening the Building Code but would like to see public health objectives included also.

4.6 Council as well as Government recognises a need for industry associations to drive change for energy efficiency and conservation champion “best practice” but Council does see a special role for Government supporting these associations to leverage the efficiency standards being met for their products competitiveness in export markets. Promoting the industry as “efficient energy users” through global generic branding and marketing strategies would assist those industry exporters compete internationally.

Yours faithfully,

Liz Lambert

Group Manager External Relations

Address for Service:

Hawke's Bay Regional Council

Private Bag 6006

NAPIER 4142

Attn: Joseph Stafford

Phone: (06) 833-5642

Fax: (06) 835-3601

email: joseph@hbrc.govt.nz

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: 2009/10 Human Resources Report - Overview

REASON FOR REPORT:

1. This agenda item is to provide Council with a brief overview of some of the key human resources metrics recorded each year as part of the internal annual human resources report.

2. The information in this report relates to the year 1 July 2009 to 30 June 2010.

Key Metrics

3. Staff Numbers (Previous year in brackets)

As at 30 June 2010 169.6 FTE (171FTE)

Made up of:

Dalton Street (including Wairoa and Waipukurau offices)	124.1 FTE
Operations (Taradale and Waipukurau)	33 FTE
Venture HB	12.5 FTE

Comment: Full time equivalent staff numbers have remained stable over the past year.

4. Staff Turn Over

For the year ending 30 June 2010

6.6% (previous year 8%)

A total of 12 staff left Council’s employ during the year.

Comment: The level of staff turnover is at a level not seen since the mid 90’s and is probably assisted by the current recessionary cycle. It compares very favourably with the national averages for equivalent local government entities. Online Executive Search National Survey: Regional Authorities 8.4%, Local authorities 9.2%.

5. Sick Leave Usage

For the year ending 30 June 2010:

Average number of sick leave days taken was 5.4, down from an average of 6.1 days the previous year.

Comment: The usage of sick leave is at an acceptable level and in the main is used appropriately.

6. Annual leave

For the year ending 30 June 2010:

Average number of annual leave days taken was 19 the same as the previous year.

Comment: A few members of staff have to be regularly reminded to use their annual leave. It is an essential part of being a ‘good employer’ that staff take their annual leave so as to balance their work/life requirements.

7. Average Age - Tenure

For the year ending 30 June 2010:

Average age of Dalton street staff: years with Council: 47 : 12 years

Operations: 55 : 16 years

Age Profile:

	20-25	26-30	31-35	36-40	41-45	46-50	51-55	56-60	61-65
Dalton St	5	14	18	21	24	16	12	13	9
Operations	1	0	0	4	3	10	7	1	5

Comment: The increasing average age of the work force continues to be a concern in terms of work force planning and succession. A number of initiatives are being considered to try and address this issue including cadet programmes and job sharing as older workers prepare for retirement. The other aspect of this is the strong likelihood that in the not too distant future the retirement age will be increased. Although even now a number of staff chose to work beyond the retirement age.

8. Median Salaries (Previous year in brackets)

Dalton Street: $57,500 ($54,796)

Operations: $42,167 ($40,730) (includes wage staff)

Venture HB: $61,584 ($61,584)

9. Accidents (An incident, where no injury happens is also recorded as an ‘accident’)

Dalton Street: 10 accidents

Operations: 15 accidents

Comment: While the majority did not require any time off work a couple of more serious injuries did account for a total of 233 days off work. One of these injuries was classed as a serious harm accident and was reported to the Department of Labour as such. The Department determined that no further action was required by them.

From this year’s audit Council achieved the tertiary level of ACC’s Workplace Safety Management Programme and benefits from a 20% discount on standard premiums because of this and which is a considerable saving for Council.

10. Training Budget

The training budget for the year was 2.6% of the salary budget. This was a drop over previous years and reflected the need to review discretionary budgets in line with the recession.

11. The above metrics give an overall picture of the organisation and assist with career planning and in identifying trends that may need addressing on any particular issue.

DECISION MAKING PROCESS:

12. Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

RECOMMENDATIONS:

That the Council :

1. That the Council receives the overview of the 2009/10 Human Resources Report.

Viv Moule

Human Resources Manager

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 25 August 2010

SUBJECT: Monthly Work Plan Looking Forward

COMMENT:

The table below is provided for Councillors’ information, to provide them with an indication of issues and activities coming up over the next month in each area of Council.

Group	Area of Activity	Report to go to Council or Committee as indicated
Asset Management	· Review of Heretaunga Plains Scheme	First project update to be presented to AM&B Committee in November.
	· Operational Plan for land management activities	AM&B Committee in November.
	· Establish forest for land based sewage disposal Central Hawke’s Bay, and project manage CHBDC project	Concept design substantially complete. Consultation with key parties initiated. Resource consent application programmed to be lodged August. Forestry establishment for CHBDC properties underway. Work underway to determine best long term forest investment management framework.
	· Management of Coastal hazards at Haumoana Te Awanga	Peer review work continuing. Report on outcome of peer review work will be prepared with HDC staff and presented to Council or Council Committee by December.
Resource Management	· Replacement resource consent applications in the Twyford area.	151 applications publicly notified, submission period closed 26 Feb, pre-hearing meetings now complete and Hearings scheduled for 30 August 2010 start on a limited number of outstanding issues.
	· Odour issues at Clive wastewater treatment plant	HDC tenders for the BTF lids close 28 July. HDC provided affected residents with a July situation update newsletter. HBRC staff are still trying to resolve the Abatement Notice appeal & resource consent application timeframes issues.
Strategic Development	· Scenario Development project still in Scenario Writing phase. Preparing the associated report and developing a communication strategy. To ensure the communication strategy for the scenarios and report are fully developed so that the scenarios can be used most effectively, the public launch has been postponed and will no longer occur at the September Embracing Futures Thinking breakfast.	November 2010 Strategic Planning and Finance Committee. Public launch likely Nov/Dec 2010.
	· Regional Economic Development Strategy – This is an NZTE funded project (78%). HBRC is the contract holder and VHB is the primary service provider. Project Steering Group to be established.	Ongoing
	· Presentation of the Joint Committee Report on the hearings of submissions for the Heretaunga Plains Urban Development Strategy to Council workshop and Council meeting.	25 August 2010 Council meeting (item 10)
	· Project manage the 2 year Heretaunga Plains Transportation Study and develop Project Brief for HB Rural Study	Ongoing - Brief progress reports to Regional Transport Committee
	· Initiate development of project scope for Regional Water Values Study	Ongoing
	· Mediation meetings for the 3 appeals on Decisions on Plan Change 2 and Variation 2 – Air Quality	Ongoing
	· Public notification of Variation 1 (Rivermouth Hazard Areas) to the proposed Regional Coastal Environment Plan.	Submissions close 8 Sept. Hearings by the HBRC Hearings Committee will be held late 2010 or early 2011 depending on the number of submissions received.
	· Work on the development of an Issues and Options paper for on-site wastewater management.	Ongoing. Now part of growth management bundle of plan changes.
	· Progress Taharua Strategy as per project plan.	Possible presentation by stakeholder group at September Environmental Management Committee
	· Progress Regional Stormwater Strategy. Will be part of growth management bundle of plan changes.	Ongoing
Corporate Services	· Audited Annual Report.	September Council meeting
	· Leasehold Land issues re policies on providing assistance to leaseholders	Ongoing
	· Options for freeholding of Napier leasehold land.	Ongoing
	· Reassessment of the valuation methodology for freeholding Napier leasehold land.	Ongoing
	· Implementation of the Customer Relations Management software.	Commences Oct 2010.
External Relations	· Home and Garden Show, McLean Park, Napier	3-5 September 2010
	· Development of template for strategic partnership agreements	September 2010
	· Continuation of discussions on development of Joint Regional Planning Committee	Ongoing
	· Paper on opportunities for co-ordination and rationalisation of environmental education programmes.	EMC November 2010
	· Continue negotiations on gravel management with Ngati Pahauwera, in conjunction with Operations Group.	Ongoing
	· Review of Healthy Homes Strategy priorities	Report to Healthy Homes Coalition October 2010.
Operations Group	· Pekapeka project – Work on signage, site furniture and observation area continuing prior to October opening.	Ongoing
	· To complete Operations TQS1 quality plan in preparation for auditing. Plan required to retain prequalification status with Hastings District Council.
	· Cycleways – Final approvals for Landscapes ride achieved with implementation plan to complete by end of August. Meeting held with landowners and Ministry of Tourism re confirming way forward for Water ride. Work will continue with this option over the next few months.	Ongoing
	· A review of open space opportunities will be carried out over the next 2 months to determine alignment with the 2010/11 budget provision.
CE’s Office	· Freshwater Governance and Management – RAC, paper, Central government policy agenda to be discussed with Central Govt CE’s	Regular report backs to Councillors and Exec
	· Further RAC work including public comment from RAC chair post LAWF report back to Govt.
	· Treaty Settlements – further work with Claimant Groups	Regular up-dates Councillors and Exec – with External Relations
	· Next Triennium Committee Structure and Council Meeting Rounds	A meeting will be held with Chairman, Chair of Committees to discuss this prior to paper going to Council in September.
	· Investment Portfolio review and scenario development	September Strategic Planning & Finance
	· Development of Executive Team workplan for review with Council in September	September Strategic Planning and Finance
	· Performance appraisals and detailed performance measure with Exec Team to be completed
	· Meet with Tourism Sector re VHB RTO going forward
	· Industry reference group – re Economic Development strategy.
	· Annual Report finalisation	With Finance and External Relations

DECISION MAKING PROCESS:

Council is required to make a decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within this section of the Act in relation to this item and have concluded that as this report is for information only and no decision is required in terms of the Local Government Act’s provisions, the decision making procedures set out in the Act do not apply.

RECOMMENDATION:

1. That Council receives the Monthly Work Plan Looking Forward report.

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Council's Investment Portfolio - Future Issues Port of Napier Ltd Strategy	7(2)(h) Enable the local authority holding the information to carry out, without prejudice or disadvantage, commercial activities	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

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