Agenda of Regional Council Meeting

	Agenda Item	Action	Person Responsible	Due Date	Status Comment
1.	Ruataniwha Plains Water Storage Project	Regular updates on milestones achieved	AN/ GH	ongoing
2.	RMA Delegations	Central ‘delegations register’ to be developed	IM/AN		‘Register’ document being compiled for distribution by the end of September
3	Affixing common seal	Esplanade Strip Agreement Pt Lot 1 DP 328970 In which direction does this extend the Maraetotara River Restoration project?	MA	August	See map attached – this are outlined in blue.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 August 2012

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 2 DP 16052 CT H4/198 - Agreement for Sale and Purchase (discount 17.5% resides at property) 1.1.2 Lot 36 DP 10513 CT D2/1142 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.3 Lot 482 DP 2451 CT 56/138 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.4 Lot 127 DP 14452 CT G2/763 - Transfer 1.1.5 Lot 20 DP 12517 CT D4/972 - Transfer 1.1.6 Lot 1 DP 10435 CT D4/688 - Agreement for Sale and Purchase (discount 10% overseas landlord) 1.1.7 Lot 20 DP 2172 CT 55/154 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.8 Lot 1 DP 15940 CT H4/134 - Transfer 1.1.9 Lot 443 DP 11447 CT B4/1221 - Transfer 1.1.10 Lot 207 DP 8434 CT C2/489 - Transfer 1.1.11 Lot 166 DP 12611 CT D4/1099 - Transfer 1.1.12 Lot 319 DP 11329 CT B3/1306 - Transfer 1.1.13 Lot 63 DP 11717 CT C3/80 - Transfer 1.1.14 Lot 82 DP 13096 CT E3/521 - Transfer 1.1.15 Lot 63 DP 13896 CT F4/380 - Transfer 1.1.16 Lot 222 DP 11194 CT B3/84 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.17 Lot 114 DP 7756 CT C2/446 - Agreement for Sale and Purchase (discount 17.5% resides at property) 1.1.18 Lot 223 DP 8434 CT C2/636 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.19 Lot 185 DP 6598 CT C2/370 - Transfer 1.1.20 Lot 450 DP 11559 CT C2/508 - Agreement for Sale and Purchase (discount 17.5% resides at property) 1.1.21 Lot 276 DP 10775 CT 211859 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.22 Lot 129 DP 11027 CT C3/1401 - Agreement for Sale and Purchase (cross-lease 2 x 10% discount landlord and 1 x 17.5% discount resides at property) - Transfer 1.1.23 Lot 13 DP 13111 CT E3/554 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.24 Lot 5 DP 7422 CT C4/324 - Transfer 1.1.25 Lot 114 DP 11999 CT D1/455 - Transfer 1.1.26 Lot 146 DP 2172 CT 55/199 - Transfer 1.1.27 Lot 3 Pt Lot 2 DP 7414 CT B4/446 - Agreement for Sale and Purchase (cross-lease 2 x 10% discount landlord and 3 x 17.5% discount resides at property) 1.1.28 Lot 2 DP 4485 CT 55/105 - Agreement for Sale and Purchase (discount 17.5% resides at property) 1.1.29 Lot 1 DP 13640 CT L2/665 - Agreement for Sale and Purchase (discount 10% landlord) 1.1.30 Lot 1 DP 27916 CT Y1/25 - Transfer 1.1.31 Lot 89 DP 14449 CT G2/702 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.32 Lot 16 DP 13111 CT E3/556 - Transfer 1.1.33 Lot 2 DP 11990 CT D1/756 - Agreement for Sale and Purchase (discount 10% landlord) 1.1.34 Lot 1 DP 11990 CT D1/755 - Agreement for Sale and Purchase (cross-lease 1 x 10% discount landlord and 2 x 17.5% discount resides at property) 1.1.35 Lot 16 DP 13111 CT E3/556 - Transfer 1.1.36 Lot 26 DP 10632 CT B3/796 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.37 Lot 129 DP 11027 CT C3/1401 - Agreement for Sale and Purchase 1.1.38 Lot 51 DP 6481 CT C2/407 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.39 Lot 284 DP 11194 CT B3/96 - Agreement for Sale and Purchase (discount 17.5% resides at property) 1.1.40 Lot 2 DP 4426 CT 55/98 - Agreement for Sale and Purchase (discount 10% landlord) - Transfer 1.1.41 Lot 188 DP 10775 CT C1/695 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.42 Lot 458 DP 9059 CT E2/347 - Agreement for Sale and Purchase (discount 10% overseas landlord) 1.1.43 Lot 450 DP 11559 CT C2/508 - Transfer 1.1.44 Lot 24 DP 13217 CT E4/414 - Agreement for Sale and Purchase (discount 10% overseas landlord) - Transfer 1.1.45 Lot 457 DP 2451 CT 55/100 - Agreement for Sale and Purchase (cross lease – 2 x 10% landlord and 2 x 17.5% resides at property) 1.1.46 Lot 1 DP 10435 CT D4/688 - Transfer 1.1.47 Lot 2 DP 4485 CT 55/105 - Transfer 1.1.48 Lot 114 DP 7756 CT C2/446 - Transfer 1.1.49 Lot 76 DP 13695 CT F2/1324 - Transfer 1.1.50 Lot 25 DP 4488 CT 55/214 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer 1.1.51 Lot 174 DP 12548 CT D2/1522 - Agreement for Sale and Purchase (discount 10% landlord) 1.1.52 Lot 132 DP 13055 CT E2/1298 - Transfer 1.1.53 Lot 44 DP 10078 CT C1/971 - Transfer 1.1.54 Lot 189 DP 10775 CT C1/696 - Agreement for Sale and Purchase (discount 10% landlord) 1.1.55 Lot 3 DP 13096 CT E3/506 - Agreement for Sale and Purchase (discount 17.5% resides at property) - Transfer	3467 3468 3469 3470 3471 3472 3473 3474 3475 3534 3476 3477 3478 3479 3480 3481 3482 3483 3484 3531 3485 3486 3487 3488 3489 3490 3508 3491 3509 3492 3530 3493 3495 3496 3497 3498 3499 3500 3501 3529 3502 3503 3504 3505 3506 3507 3509 3510 3536 3511 3512 3513 3514 3515 3516 3517 3518 3535 3519 3520 3521 3522 3523 3525 3538 3526 3527 3528 3532 3533 3537	19 July 2012 19 July 2012 19 July 2012 19 July 2012 19 July 2012 19 July 2012 19 July 2012 20 July 2012 20 July 2012 21 August 2012 20 July 2012 20 July 2012 20 July 2012 20 July 2012 20 July 2012 20 July 2012 23 July 2012 23 July 2012 23 July 2012 17 August 2012 24 July 2012 24 July 2012 24 July 2012 26 July 2012 26 July 2012 26 July 2012 7 August 2012 26 July 2012 8 August 2012 26 July 2012 17 August 2012 26 July 2012 26 July 2012 30 July 2012 31 July 2012 31 July 2012 2 August 2012 2 August 2012 3 August 2012 17 August 2012 4 August 2012 7 August 2012 7 August 2012 7 August 2012 7 August 2012 7 August 2012 8 August 2012 8 August 2012 21 August 2012 8 August 2012 9 August 2012 9 August 2012 14 August 2012 14 August 2012 14 August 2012 14 August 2012 14 August 2012 21 August 2012 14 August 2012 14 August 2012 14 August 2012 14 August 2012 14 August 2012 15 August 2012 21 August 2012 15 August 2012 15 August 2012 15 August 2012 17 August 2012 20 August 2012 21 August 2012
1.2 E	Deed Acquiring Easement pursuant to Public Works Act 1981 (to convey water) Lot 1 DP 19060 and Lot 4 DP 20256 Certificate of Title M1/105	3494	26 July 2012
1.3 Dee	Deed of Grant of Easement Lot 1 DP 445268 CT 559776 (pedestrian right of way and cycle path – Puketapu Road)	3524	15 August 2012

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.

RECOMMENDATIONS

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. Confirms 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 29 August 2012

SUBJECT: Financial Report for 12 Months Ended 30 June 2012 - Draft Annual Report 2011/12 Adoption for Audit

REASON FOR REPORT

1. The purpose of this paper is to provide explanations covering variances both from the re-forecast budgets and from Annual Plan budgets for year ended 30 June 2012. 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 as an appropriate draft of the Annual Report to be forwarded to the Audit Office to form the basis of their audit.

Comment

2. 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.

2.1. Attachment 1

The financial overview for the year ended 30 June 2012 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.

2.2. 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 2010/11 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 Ten Year Plan have been achieved. This reporting against the “Right Debate” will form the substantive part of the chairman and chief executive’s report in the final annual report.

2.3. Attachment 3

Management statements set out in the format as they will appear in the annual report.

2.4. 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.

3. The final audited Annual Report will be tabled for adoption at Council’s September meeting.

Regional Disaster Damage Reserve

4. 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. Council has given notice to exit LAPP and this notice has a wait out period and will become effective on 30 June 2013. It is proposed that a paper will be brought to Council in November 2012 assessing the options of insurance cover subsequent to 30 June 2013.

5. Council considered a paper on 29 June 2011 covering infrastructure insurance. The premiums for insurance for the 2011/12 financial year had increased substantially due to the September 2010 Canterbury earthquake and the attitude of reinsurers due to the losses incurred during that event. At that meeting Council approved the placement of 60% cover as commercial insurance at a premium of $132,000. The excess had increased from $1m to $5m for any one event.

6. The Regional Disaster Damage Reserve was established to cover:

6.1. Meet any extraordinary costs of managing the response and recovery if a disaster event occurs.

6.2. Meet the $3m excess (60% of $5m) for any event for damage covered by Council’s commercial insurance infrastructure policy.

6.3. Meet, along with the Scheme Disaster Reserves (current level of $2.5m at 30 June 2012), 60% of the cost of the damage to live edge protection which is not covered by commercial insurance.

7. The Regional Disaster Damage Reserve shows a market value of an investment of $3.475m at 30 June 2012. Accordingly, it is proposed that no action be taken to tag any cash operating balances to increase the value of this fund as funds are available to cover at least the excess required in the event of a disaster.

Revaluation of Council's Assets

8. 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:

8.1. Infrastructure Assets

These assets were last revalued as at 30 June 2011; Council's current policy is to revalue these assets every three years – ie, next revaluation is due on 30 June 2014.

8.2. Hydrological Assets

These assets were revalued as at 30 June 2010. The next revaluation will be finalised as at 30 June 2013 as these assets are revalued every three years.

8.3. Operational Assets

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

8.4. Forestry Crops

Under the international accounting standards, biological assets including forestry crops are to be revalued at the end of each financial year. Accordingly, the evaluations as set out in the table below have been received for 30 June 2012.

Forest Location	Value as at 30 June 2011	Value as at 30 June 2012	Variance
Lake Tutira (Manuka Honey)	Nil	$59,000	$59,000
Lake Tutira (Other)	$1,074,000	$1,343,000	$269,000
Tangoio Conservation Reserve	$940,000	$1,568,000	$628,000
Central Hawke’s Bay Wastewater	$241,000	$181,000	($60,000)
Waihapua	$225,000	$168,000	($57,000)
Mahia Wastewater	$163,000	$34,000	($129,000)
Joint Venture Forestry Rights	$2,000	$2,000	Nil
Total		$3,356,000

8.5. The reason for the increase in the forestry valuation for the Tutira forestry block and the Tangoio soil conservation reserve forestry block is due primarily to the increasing age of the trees and hence harvest value.

8.6. The decrease in the value of the Waihapua, Waipawa and Waipukurau properties is due to these properties primarily having young eucalyptus stands, where the establishment cost has been reduced for the purposes of valuation, due to the current low price of carbon. In the valuation assessment, it has been assumed that the market would be prepared to pay less for eucalyptus trees for carbon farming purposes in comparison to the levels seen in 2011 when the price of carbon was considerably higher.

8.7. Forest Land Valuations

The land on which all the forestry crops are grown was revalued at 30 June 2010 and Council policy is to revalue every three years. The next revaluation will be 3 June 2013.

8.8. Investment Properties – Leasehold Land

The main investment properties held by Council are the leasehold land in Napier and Wellington.

8.9. The table below sets out the percentage changes 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 2011	1027	79.8m	12	11.1m
Valuation (Lessor's Interest) 30 June 2012	830	56.1m	12	11.0m
Property Leases Freeholded	197	17.3m	-	-
Decrease in valuation over the 12 months to 30 June 2012 adjusted for sales	-	-$6.4m (10%)	-	-$0.1m (1%)
Comparative for year ended 30 June 2011	-	+1.6m (2%)	-	Nil

8.10. The reason for the valuation on Napier leasehold property has decreased by $6.4m as compared to the previous year’s valuation is due to the impact that the discount offered by Council on freeholding for the last financial year has had on the value of land being sold in Napier. This lower price expectation of land portfolios has driven the decrease in value, however it could be reasonably expected that in the future there will be increases in land values as Napier land lessees will now be required to freehold at higher values now the discount has been discontinued.

8.11. Port of Napier Ltd Shareholding

Council shareholding of 100% in the Port of Napier Ltd is revalued every three years. The revaluation on 31 March 2012, which is included in this Council’s 2011/12 Annual Report, states that Council’s investment in the Port of Napier Limited is $177.4m. This shareholding is now held by Council’s Investment Company, Hawke’s Bay Regional Investment Company (HBRIC).

8.12. General Funded Operating End of Year Position

The Council's General Funded Operating result, subject to final audit processes, for the year ended 30 June 2012 is shown in Attachment 1 as a surplus of $69,571. When this is compared to the forecast end of year surplus position of $12,401, the result is an improvement from forecast in the year end position of $57,170.

8.13. 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 approximately $7m at the end of 2011/12 and reduce to $6m at the end of 2012/13. 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.

8.14. 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 result 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/gains in fair value of Council’s investment properties, which includes the substantial decrease in value of the remaining Napier leasehold land, 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.

DECISION MAKING PROCESS

9. 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:

9.1. Section 97 covering significant changes in the intended level of service provision for a group of activity do not apply.

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

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

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

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

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

9.7. 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 Council:

1. Confirms 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. Adopts the Draft Annual Report for the period 1 July 2011 to 30 June 2012, 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 26 September 2012.

3. Resolves that $187,253 profit on external work undertaken by Council's Operations Group during the year ended 30 June 2012 be used by Council to increase the cash operating balances available to fund general funded operating expenditure.

John Peacock

Corporate Accountant

Paul Drury

Group Manager Corporate Services

Attachment/s

1	Financial Overview	Under Separate Cover
2	Report on Right Debate/Narratives on Performance Targets	Under Separate Cover
3	Annual Report Management Statements	Under Separate Cover
4	Annual Report Financial Statements	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 29 August 2012

SUBJECT: August 2012 Work Plan - Looking Forward

Reason for Report

1. This report is provided in order to update Councillors about significant work activities under way over the next month in each area of Council.

Group	Area of Activity	Activity Status Update
Asset Management	· Biosecurity	Regional Pest Management Strategy and Regional Phytosanitary Pest Management Strategy Hearing held 15 February 2012. Council adopted Hearings Panel recommendations 29 Feb. One reference made to Environment Court. Both parties have agreed to mediation. Mediation set for 12 September 2012.
	· Land Management	A proposal for how the Land management team will influence the uptake of best farming practices in intensive land use areas is being developed and will be brought to Council for their consideration in October. The proposal will include the alignment of a proportion of the RLS subsidy scheme to support the initiative.
	· Infrastructure disaster insurance	A review of infrastructure disaster insurance arrangements is underway. LAPP held meetings of Members in May & July. Staff expect to report to Council on the issue by November 2012.
	· Tutira Properties	Staff are progressing discussions with a number of parties on various options. Staff expect significant activity on this during September.
	· Regional Forestry project	As part of their LTP deliberations Council agreed to proceed with this project subject to their approval of an operational plan, and a carbon trading strategy and policy for the project by September 2012. Staff are now working to meet this deadline.
	· Regional open spaces review	A project to identify and record HBRC open space sites and their values, articulate the management principles and levels of service for those spaces, and identify opportunities for the development of those spaces for public enjoyment is underway.
	· Upper Makara Scheme	A temporary spillway has been excavated following the discovery of a sinkhole in the face of the dam. Staff are assessing options for flood protection of the Makara valley and how they could be funded. It is expected that agreed works will be constructed over the 2012/13 summer.
	· Ohuia Scheme	Ongoing problems are being experienced with outlet pipes from the Ohuia Pump Station. Staff have discussed options with the key ratepayer. It is likely that the preferred option will be replacement of the pump station. A proposal will be prepared for consideration by the ratepayers and Council in October.
	· Collaboration with Depart of Conservation, Greater Wellington & Horizons	A number of opportunities for improved service delivery and for cost savings have been identified. Agreeemnt from the respective CE’s for a work programme to realise gains over the next 12 months is programmed for 4 September.
Resource Management	· Appeal mediation processes underway for	Twyford Appellants close to withdrawing their appeal. HBRC working on an MOU to support investigations into global consent / water sharing stragtegies that can assist in more efficient / effective use of the available water.
		AFFCO Paper to Council in May to accept mediated solution. Appeal settled. Still to be signed off by Environment Court.
		Mexted & Williams All parties are now working towards a court hearing, the date of which is yet to be advised. The coastal hazard evidence of the appellant has raised some concerns about the current design of the seawall. Caucusing between the coastal hazard experts is to be organised so that these issues can be discussed. Lawyers for the applicant have lodged an appeal to the High Court on the permissibility of the coastal hazard evidence.
		NCC BTF plant High court deciding whether to accept Submitter W. Church appeal or not, decision expected August.
	· Large Consent processes/applications	CHBDC waste water Application on hold expecting withdrawal after publicised decision on different approach.
		Poukawa Discussions ongoing with applicants and stakeholders pre notification decision, Limited notification likely August 2012.
		Tukituki and Karamu surface water takes Common expiry date for these catchments of 31 May 2013. Advice of the need to apply for new consents has been sent out. S 124 applies if these are lodged before 1 December 2112.
Resource Management	· Science Activities	Groundwater Staff continue to work closely with the planning team to develop policy associated with water allocation and water quality management for the Tukituki plan change. Groundwater scientists are working collaboratively with experts from GNS Science to undertake water quality modelling within the Ruataniwha Basin, using Councils groundwater flow model.
		This work focuses on use of the model to identify contaminant transport pathways and travel times. This work is a key component of the wider nutrient modelling work for the Tukituki Plan Change and Ruataniwha storage projects. Staff have completed installation of rainfall recharge lysimeter equipment at sites at Maraekakaho and near Fernhill. Now the installation phase of the project is complete, implementation will proceed with a focus on data collection..
		Surface Water Rob Waldron has earned a well deserved promotion to Scientist. The hydrology scientists are working hard on two reports due mid September for the Tukituki Choices Scenarios whilst in the sidelines work is still progressing on identifying requirements for the Heretaunga plan change. Thomas Wilding is working with NIWA to align elements of NIWA core research with HBRC requirements for the development of water management strategies for the Karamu Catchment and the greater Heretaunga
		The Hydrology Technicians completed an emergency installation of monitoring equipment at the vulnerable Makara Dam. Equipment was operational 48 hours after the request was made. The equipment identified a smaller than expected residence time within the dam and produced an alarm one night, indicating overtopping of the new temporary spillway. This speed and quality of the implementation reflects the abilities of the hydrology team and experience of team leader Pete Davis.
		A new server was installed at the Guppy Road offices to provide a crucial backup for the flood warning system. A slack line structure has been put in place on the “Tukituki River at Taiparu Road” site to allow gauging under mid- to high flow conditions. This will allow more accurate estimation of high river flows.
		The flood warning system has been performing well, reflecting the diligence of the Hydrology Technicians in maintaining and managing this vital network.
		Ten national environmental monitoring standards are currently under development. This project is being managed for HBRC by Rob Christie with input from other Councils, MfE, NIWA and power generating companies. It is due for completion at the end of the year (under budget).
		Ecology Staff continue to focus on supporting the Planning team with the Tukituki Plan Change and Mohaka Plan Change. A large component of work (analysing and reporting on water quality and ecology information for the Karamu Stream catchment) has been completed and the report is currently in review. Fiona Cameron is supporting a region-wide native fish values assessment being organised by Tim Sharp from the Policy team. The team’s transition from quarterly to monthly sampling across the region is progressing well. Work on the Coastal monitoring buoy is on track with splashdown planned within the coming months. Dan Fake and Vicki Lyon were recently appointed on a permanent basis to the team as the two new SoE Resource Technicians required for the increased effort being invested in the Rivers SoE program.
		Air & Climate Following assessment, the results of air quality monitoring for this winter will compared to the results from previous years will be summarised in a report. The report will include the results of screening monitoring undertaken in Waipukurau over the past year. Preparation is underway to undertake another screen monitoring project at a new site. Climate and climate change information is being provided to support plan changes and water storage work as and when needed. Co-ordination and input to the monthly SoE reports is ongoing. A photo diary of urban air quality over the Heretaunga Plains. This will require a camera to be installed on the roof of the Council’s building.
		Land Science Ongoing regional soil mapping (S Map) managed by Dr Barry Lynch. Ongoing Taharua catchment investigation. Loss of ecosystem service investigation arising from April 2011 storm managed by Dr Barry Lynch Fiona Cameron to begin characterisation of wetlands in the Herataunga catchments. Regional soil quality monitoring project to continue as part of Land SOE requirement managed by Dr Barry Lynch. Biodiversity characterisation of Ngaruroro catchment managed by Dr Barry Lynch.
		Assisting policy with biodiversity strategy development with assistance of Keiko Hashiba and Fiona Cameron, managed by Dr Barry Lynch Preliminary discussions with NIWA regarding modelling of Ngaruroro and Tutaekuri catchments managed by Dr Barry Lynch. Ongoing assistance with water storage programme and Tukituki Choices document (plan change) and Mohaka plan change. Keiko Hashiba was recently appointed on a permanent basis to the Land Science section as a Resource Technician. Her appointment reflects the increased effort required of the land Science programme.
Strategic Development	· Land and Water Management Strategy	Strategy implementation to be ongoing, including via 2012-22 LTP.
	· RPS Change to incorporate elements of Land and Water Management Strategy (Change 5)	Draft version of RPS Change 5 released for public comment by 24 August. Revised draft RPS Change 5 and associated s32 evaluation summary report to be presented to Regional Planning Committee meeting on 5 September. Work programmes aiming to publicly notify a proposed RPS Change 5 in October 2012.
	· Implementation programme for giving effect to NPS for Freshwater Management	Implementation Programme must be adopted by Council before 12 November 2012. Programme must define time-limited stages by which the NPSFM will be fully implemented by HBRC before 31 December 2030. Draft Implementation Programme to be presented to Regional Planning Committee meeting on 5 September.
	· Plan Change for freshwater management in Tukituki River catchment	Ongoing. Technical reports being used to develop the water allocation framework. Project programme as per July 2012 Council decision.
	· Rivermouth Hazard Areas in proposed Regional Coastal Environment Plan (Variation 1)	Schedule 1 RMA process. Decisions issued 6 June 2012. No appeals lodged. Report to Council alongside whole Regional Coastal Environment Plan approval.
	· Onsite Wastewater change (Change 3 + Variation 3)	Schedule 1 RMA process. Decisions issued 6 June 2012. No appeals lodged. Separate report presented to August 2012 Council meeting for adoption of Change 3 and making it operative.
	· RPS Change to incorporate HPUDS and wider infrastructure matters (Change 4)	Schedule 1 RMA process. 45 submissions and 6 further submissions received. Hearing by end of 2012.
	Ÿ Taharua Strategy and Mohaka plan change.	Ongoing. Broadened scope to cover whole Mohaka River catchment. Good progress being made with Taharua landowners and Taharua Stakeholder Group. Update report to be presented to Regional Planning Committee meeting on 5 September 2012. For wider Mohaka catchment, supporting science progressing but stakeholder engagement yet to be initiated.
	Ÿ Proposed Regional Coastal Environment Plan plus Change 1 to RRMP	Ongoing. Pending Environment Court processing to ratify settlement of all appeals. RCEP, plus Variations to be directly reported to Council for approval following Environment Court’s ratification of appeal settlements. Council-approved RCEP plus Variation 1 then referred to Minister of Conservation for approval of provisions relating to coastal marine area.
	Ÿ Heretaunga Plains Urban Development Strategy (HPUDS)	Ongoing implementation as it relates to other actions where HBRC is a lead agency or a partner agency via HPUDS Working Group.
	Ÿ Regional Land Transport Programme	The Regional Land Transport Programme was submitted to the New Zealand Transport Agency on 29 June 2012. A final decision on funding from the National Land Transport Programme is due at the end of August.
	Ÿ Bus Services	Bike racks are due to be fitted to 14 buses during August and September. Identification of bus stops on the extension to Route 17 (Hastings, Parkvale, Akina) is being worked through with Hastings District Council. Once this has been agreed to the revised service will begin.
	Ÿ Tech NZ R&D funding as part of the Regional Business Partner partnership with HB Chamber of Commerce	Financial year to date $331,670.50 of R&D funding from MSI has been spread across 6 companies.
	Ÿ Strategic Farming Initiative	Pan Sector activities have focused over the last few months on supporting the Plan Change and RWS work, in particular a reference group for nutrient management policy and on-farm financial budgets.
	Ÿ Massey Strategic Relationship	The Living Labs initiative was launched at the Massey Campus in Wellington, which featured Massey work relating to the RWS project. The draft job description for a Massey person based in HB is being reviewed by Massey. Land Mgt are scoping out additional potential projects with Massey. Primary sector education courses are being discussed between Massey and Business HB.
Corporate Services	· Assessment of selling cash flows from Napier leasehold land.	October 2012
	· Adoption of final Annual Report	September 2012 Council meeting.
	Constituency Review: · Public consultation ends · Council to consider submissions	18 September 2012 24 October 2012
External Relations	· Statutory advocacy and liaison	Liaison with consultant on Phase 2 of the Prosperity Study Engagement with Productivity Commission on Local Government Act Reform
	· Liaison with Treaty claimant representatives on Regional Planning Committee	Regional Planning Committee focus on Land and Water Management Strategy insertion into Regional Policy Statement
	· Community engagement / environmental education	Development of Tukituki Choices engagement programme – including production of DVD, layout of document and promotion of public meetings Regional Science and Technology Fair finals being held on Wednesday 29^th August at 7pm at EIT. HBRC Science and External relations staff involvement. Preparation underway for Council site at Home and Garden Show in September. External Relations staff developing the refresh of Council’s Intranet for completion by November 2012. External relations staff liaising with CDEM staff on National Civil defence “Shake Out” Exercise scheduled for 9:26 am on September 26 (during September Council meeting). Work underway on development of promotional material for the launch of the “Wineries Ride” on November 4th. Finalising of technical requirements for webcasting of Council and Committee meetings
	· HeatSmart	Planning underway for promotion work at: Home and Garden Show Mitre 10 Mega Store, Napier Contingency planning for scenario in event that EECA withdraws from clean heat funding. EECA has yet to secure future funding, and existing funding likely to run out next March. HBRC needs alternative incentives in place in order to meet targets. Awaiting business case from HDC and NCC on Solar Hot water Scheme. Indications not favourable for proceeding at this time.
Operations/ Water Group	Ruataniwha Water storage	· Reports currently being finalised on Land use intensification studies, modelling and mitigations works.
		· Draft Project Feasibility Report being prepared for Stakeholder consultation 31 August. Final to Council on 26 September.
		· Macfarlane Rural Business On-Farm Economic Study due this week.
		· Work has commenced on National & Regional Economic Impact Assessments about to commence.
	Ÿ Hawke’s Bay Trails	Ÿ The final section of the Landscapes Ride which is on-road cycle lanes on Waimarama Rd is due to start Sept/Oct with Dec 2012 finish.
		Ÿ NCC out to tender for Taradale/Knightsbridge Taipo Stream concrete section of the Water Ride for Dec 2012 completion. Construction of minor remaining sections during Sept/Oct including Bay View SH2 crossing.
		Ÿ Completion of SH50 & Stock Rd sections of Wineries Ride expected in Sept. Completion of link from Mere Rd to Fernhill expected to be resolved by Dec 2012.
		· Installation of distance & direction signposts, marker bollards and gateway signage being rolled out through Sept-Dec.
		· Clip-on on Maraetotara Bridge in Te Awanga expected in Sept.
		· Wineries Ride opening 4^th November.
		· Continue with support for HDC Iway sections of trail in Hastings and Clive.
	· Ngaruroro Water storage project	Lodge MAF IAF application for on-farm economic study.
CE’s Office	Ÿ Represent Regional Sector on Land and Water Forum “Small Group”	Reports on allocation frameworks and water quality limits due for finalisation by end of September A task group focussed on the subject of populating national limits is now underway and that involves both Central Government and Regional Sector staff.
	Ÿ Regional Prosperity study	Draft first phase report completed and a meeting of the Steering Group including Mayors/Chair and CEOs is due to consider report on 28 August.
	Ÿ Ruataniwha Water Storage	Significant focus on financial feasibility underway and due for presentation to HBRIC and the Regional Council in the September meetings. September and October will be very significant months for assessing both the feasibility project for water storage as well as the proposed plan change for the Tukituki catchment and also the feedback arising from the Tukituki Choices document scheduled for launching on 11 September.
	Ÿ Hill Country Afforestation Proposal	Further oversight of business plan under way.
	Ÿ Continue work with Regional Sector CEs at Horizons and Greater Wellington plus Government Department CEs as appropriate on southern North Island partnership	Next meeting to discuss options for joint activity scheduled for 4 September
	Ÿ Continue involvement with Ministry for Primary Industries Peak Group for Implementation of the ETS	Ongoing
	Ÿ Advisory Committee on Official Statistics	Ongoing

Decision Making Process

2. 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.

Recommendation

1. That Council receives the August 2012 Work Plan Looking Forward report.