Agenda of Finance and Planning Committee Meeting

Finance and Planning Committee Meeting Agenda 15 August 2019

MINUTES OF Central HAwkes Bay District Council
Finance and Planning Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 28 March 2019 AT the conclusion of the public forum which commences at 9.00am

PRESENT: Cr Ian Sharp (Deputy Mayor)

Mayor Alex Walker

Cr Tim Aitken

Cr Kelly Annand

Cr Tim Chote

Cr Gerard Minehan

Cr Brent Muggeridge

Cr David Tennent

Cr Roger Maaka

IN ATTENDANCE: Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Monique Davidson (CEO)

Bronda Smith (Group Manager, Corporate Support and Services)

Doug Tate (Group Manager, Customer and Community Partnerships)

Nicola Bousfield (People and Capability Manager)

Lisa Harrison (Organisation Transformation Lead)

Leigh Collecutt (Governance and Support Officer)

1 Apologies

Committee resolution

Moved: Cr Kelly Annand

Seconded: Cr Brent Muggeridge

That Cr Shelley-Burne-Field is tabled as an apology for the meeting.

Carried

2 Declarations of Conflicts of Interest

3 Standing Orders

Committee Resolution

Moved: Cr David Tennent

Seconded: Mayor Alex Walker

THAT the following standing orders are suspended for the duration of the meeting:

· 20.2 Time limits on speakers

· 20.5 Members may speak only once

· 20.6 Limits on number of speakers

And that Option C under section 21 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner

Carried

4 Confirmation of Minutes

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Mayor Alex Walker

That the minutes of the Finance and Planning Committee Meeting held on 14 February 2019 as circulated, be confirmed as true and correct.

Carried

5 Report Section

5.1 Finance and Planning Committee - Work Programme Update

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Tim Aitken

That, having considered all matters raised in the report, the report be noted.

Carried

5.2 Adoption of the Rating Review Scope and Timing

PURPOSE

The matter for consideration by the Council is the adoption of the Rating Review Scope and Timeline

Committee Resolution

Moved: Cr Tim Chote

Seconded: Cr Kelly Annand

That having considered all matters raised in the report:

a) That the Rating Review Scope and timing be adopted.

Carried

· Mayor Walker sought clarification on how the review aligned with the Council’s forward budget planning considering ongoing obligations around the cost of wastewater. Officers confirmed that once funding options have been determined, that this would inform a potential amendment to the Long Term Plan through the Annual Plan process for the 2020/2021 financial year.

· Cr Annand sought advice around when officers would consult with the community on the review. Officers spoke about the pecuniary interest a number of parties would have in the review which meant it was necessary to seek independent advice.

· Cr Aitken sought clarification about the impact that the external funding strategy might have on the rates review. Officers clarified that the Non Rateable Funding Framework would need to be considered as part of the rates review, given that it would have an impact on revenue.

· Mayor Walker asked about future opportunities for reports regarding the review to come to Council to allow public debate to take place.

· Cr Tennent raised concern about work involved in doing a review well, given other ambitious projects the Council is currently undertaking.

· Cr Minehan agreed that going ahead with the review would demonstrate the Council’s commitment to creating revenue for vital infrastructure.

5.3 Draft Dust Suppression Policy

PURPOSE

The matter for consideration by the Council is the adoption of the draft Dust Suppression Policy.

Committee Resolution

Moved: Mayor Alex Walker

Seconded: Cr David Tennent

That having considered all matters raised in the report:

a) The Finance and Planning Committee adopt the Draft Dust Suppression Policy as amended.

Amendment

Moved: Mayor Alex Walker

Seconded: Cr David Tennent

That a change is made to the funding section of the guidelines to say:

Council will consider its own contribution to funding in light of funds available, the criteria above being met and where external funding is available.

Carried

· Mayor Walker sought an amendment to the recommendation to ensure that there was clarity in the guidelines around the point at which Council would consider funding and that this amended wording was included as an additional part of the Dust Suppression Policy.

· Cr Sharp asked that there was clear guidance for the community about the policy’s intentions by adding a note at the beginning of the policy document.

5.4 Land Transport Programme Update

PURPOSE

The purpose of this report is to provide the Finance and Planning Committee with an update on the Land Transport Capital and Maintenance programmes.

Recommendation

That, having considered all matters raised in the report, the report be noted.

· Cr Minehan sought clarification about what work was being done in the Land Transport space around schools. Officers confirmed that they were working with schools on safety plans specific to their respective areas to ensure that their needs are met.

· Cr Annand requested that road policing staff were included in these discussions.

· Cr Annand also sought that Council was provided with information about the regional transport programme to be able to keep the community informed. Mayor Walker confirmed her position as the Council’s representative on the regional transport working group and agreed to circulate information to Councillors on a regular basis.

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution

Moved: Cr Tim Aitken

Seconded: Cr Kelly Annand

That the public be excluded from the following parts of the proceedings of this meeting.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
6.1 - Public Excluded Minutes of the District Plan Subcommittee	s7(2)(c)(ii) - the withholding of the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest	s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr David Tennent

That Council moves out of Closed Council into Open Council.

Carried

6 Date of Next Meeting

Committee Resolution

Moved: Cr Tim Aitken

Seconded: Cr Kelly Annand

THAT the next meeting of the Finance and Planning Committee be held on 15 August 2019.

Carried

7 Time of Closure

The Meeting closed at 10.20am

The minutes of this meeting were confirmed at the Finance and Planning Committee Meeting held on 15 August 2019.

...................................................

CHAIRPERSON

Finance and Planning Committee Meeting Agenda 15 August 2019

5 Report Section

5.1 Resolution to apply for funding to Eastern and Central Community Trust

File Number: COU1-1410

Author: Craig Ireson, Economic Development Lead

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

PURPOSE

The matter for consideration is a resolution to apply to the Eastern and Central Community Trust Community Assets and Facilities Fund for Ngā Ara Tipuna –Waipukurau Pā site interpretation project.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

That the Finance and Planning Committee recommend to Council to resolve to apply for funding of $250,000 to the Eastern and Central Community Trust Community Assets and Facilities Fund for Ngā Ara Tipuna –Waipukurau Pā site interpretation.


compliance
Significance	This matter is assessed as being of some importance
Options	This report identifies and assesses the following reasonably practicable options for addressing the matter: 1. Approve a resolution for funding 2. Do not approve a resolution for funding
Affected persons	The persons who are affected by or interested in this matter are mana whenua and Te Taiwhenua o Tamatea.
Recommendation	This report recommends option one for addressing the matter.
Long-Term Plan / Annual Plan Implications
Significant Policy and Plan Inconsistencies

BACKGROUND

Ngā Ara Tipuna –Waipukurau Pā site interpretation project. The funding plan in the business case identified Eastern and Central Community Trust (ECCT) as a potential co-funding partner for the project.

An Expression of Interest (EOI) has been submitted to the ECCT’s Community Assets and Facilities Fund (CAFF). ECCT approved the EOI and would like to invite the Council to submit a Capital Works application. This invitation is conditional upon receiving a formal written resolution to apply to ECCT signed by two office bearers. An application will then be made in the February 2020 CAFF round.

The invitation to apply to the CAFF and any subsequent funding that results from an application will be seen as a positive sign of project co-funding by the PGF, and may result in a more favourable outcome for our application to the PGF.

SIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance because it is of interest to mana whenua and is aligned with their aspirations as determined by Project Thrive.

OPTIONS

Two possible options for consideration by Council include:

Option 1 Approve a resolution to apply for funding to the Eastern and Central Community Trust’s Community Facilities Fund for up to $250,000Financial and Resourcing Implications

a) Financial and Resourcing Implications

The application process will be managed by the Economic Development Lead as part of the Ngā Ara Tipuna Project. An estimate of between 20-40 hours work will be required to complete the application, although much of the documentation required by ECCT is also required to complete the PGF funding application.

The ECCT funding will be directed towards the Phase One capital build of the project; that is the development of the whare korero and viewing platform on Pukekaihau Pā site at Hunter Memorial Park. Therefore, it is correct that for this application Council is the applicant and, if successful, the fund recipient as Council owns and manages Hunter Park and the assets contained within.

b) Risk Analysis

c) Alignment to Project Thrive and Community Outcomes

This project is seen as a key driver and catalyst for change in Tamatea/Central Hawke’s Bay, socially, culturally, economically and environmentally. It will be part of the local education curriculum, connect places of significance, link to other activities in the district, inspire conversations and business opportunities and above all celebrate Tamatea’s unique identity through a shared understanding of the place, its people and the past.

d) Statutory Responsibilities

e) Consistency with Policies and Plans

This Project is consistent with our Non-Rateable Funding Strategy.

f) Participation by Māori

The genesis of this proposal resides with the hapū of Tamatea, who recognise and understand the need to pass on the stories of their tīpuna/ancestors to the younger and future generation.

The Māori history of Tamatea/Central Hawke’s Bay has not been told and the vision is for the rangatahi/tamariki to learn about where they are from and what their identity is in order to embrace the past, but also to pass on the stories to future generations. Mana whenua have been involved in the project from its genesis, and were closely consulted in the development of the Business case which identified this funding opportunity.

g) Community Views and Preferences

This project aligns with the aspirations of the wider community as developed through Project Thrive. It will provide a place of cultural and community interest, enhance an existing public recreation asset, and provide a catalyst for tourism product development and tourism growth in Waipukurau.

h) Advantages and Disadvantages

If a resolution for funding is approved and an application prepared, then this can be the only application to ECCT by the council in this current ECCT financial year (April 2019 - March 2020). However, there is no other projects currently underway requiring funding which aligns to ECCT outcomes.

Council was successful in the previous financial year for funding from ECCT of $110,000 for the Waipawa Pool but this will not impact negatively upon the fundability this project.

Option 2 Do not approve a resolution for funding

a) Financial and Resourcing Implications

If we are unable to apply to the ECCT for funding we may have to find alternative funding sources for Phase One project funding. This may include more community fundraising and/or rate payer funded contributions.

The application to the PGF may also be compromised if the partnership contribution via co-funding is less than identified within the Business Case funding plan.

b) Risk Analysis

By not applying for funding to ECCT the Project is at risk of not achieving PGF funding, and may stall for several years while other funding sources are identified.

c) Promotion or Achievement of Community Outcomes

This option would not promote positive social, cultural, economic, and environmental outcomes for our community.

d) Statutory Responsibilities

e) Consistency with Policies and Plans

This option is inconsistent with our Non-Rateable Funding Strategy.

f) Participation by Māori

This option would not meet the expectations and aspirations of manawhenua in developing this cultural project.

g) Community Views and Preferences

This option would not meet the aspirations of the wider community as outlined in the project Thrive consultations.

h) Advantages and Disadvantages

Apart from being able to apply to the ECCT within this current financial year for funding for a different (and as yet unidentified) project, there are no advantages for this option. The disadvantages for this option are that the PGF funding application may be at risk, and the Project set back many years.

Recommended Option

This report recommends Option One that the Finance and Planning Committee to resolve to apply for funding to the Eastern and Central Community Trust Community Facilities Fund for up to $250,000 for addressing the matter.

NEXT STEPS

Ngā Ara Tipuna Project. This application will be submitted on or before 10 February 2020.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

Finance and Planning Committee Meeting Agenda 15 August 2019

5.2 Remuneration Authority Determination - Childcare Allowance

File Number: COU1-1410

Author: Monique Davidson, Chief Executive

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. Local Government Authorities Remuneration Determination 2018/2019 ⇩

PURPOSE

The purpose of this report is for Council to consider its position on the optional Childcare Allowance as gazetted in the 2019 Remuneration Authority decision.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a) That Council receives the information contained in the report.

b) That Council agrees to approve, or not approve payment of a Childcare allowance as per the 2019-2020 determination

c) That Council note that if approved, the necessary provisions will be included in the Elected Members Remuneration, Allowances and Reimbursements Policy for Council adoption following the 2019 triennial election.


compliance
Significance	This matter is assessed as being of some importance
Options	This report identifies and assesses the following reasonably practicable options for addressing the matter: 1. That Council does approve payment for a Childcare Allowance 2. That Council does not approve payment for a Childcare Allowance 3. That Council defer a decision for the incoming Council
Affected persons	The persons who are affected by or interested in this matter are all members of the public that have an interest in the way they are represented. This item has a particular interest to future Elected Members.
Recommendation	This report does not make a recommendation on this matter.
Long-Term Plan / Annual Plan Implications	Option 1 has not been included in Annual Plan 2019-2020 or Long Term Plan 2018-2028.
Significant Policy and Plan Inconsistencies	If Council approved payment, Council policy would need to be updated to reflect this decision.

EXECUTIVE SUMMARY

The Local Government Members (2019/20) Determination 2019, which sets the base remuneration, allowances and expenses payable to elected members, came into force on 1 July 2019. The two key changes, from the previous determination, that have effect immediately are the revised annual remuneration figures and vehicle mile allowance rates. Also, for the first time, the Remuneration Authority (RA) has introduced the ability to pay a childcare allowance.

This report provides further information on the RA’s review of the remuneration framework and facilitates the necessary amendments to the ‘Elected Members’ Expenses and Allowances Policy’ to give effect to the new determination and council’s decision on childcare allowances.

BACKGROUND

Under the Local Government Act 2002, the Remuneration Authority (RA) must set the base remuneration, allowances and expenses payable to elected members.

Over the last two years the RA has conducted a ‘refresh’ of the remuneration framework, which can be broken down into three stages as follows:

Stage One: In 2018 the RA completed a comprehensive review of the remuneration of elected members of local government. As a result, all councils were ‘re-sized’ (to determine relativity between the various councils) and a local government pay scale was developed using parliamentary remuneration as a comparator. The first tranche of changes was included in the 2018/19 Determination.

Stage Two: The second tranche of changes to adjust remuneration has been included in the

2019/20 Determination (Attached as Appendix 1) and took effect on 1 July 2019. This includes remuneration changes for all elected members, based on the current ‘partial pool’ approach (whereby the RA determines base councillor pay and each council has a pool to ‘top up’ remuneration for councillors holding positions of responsibility).

With regard to the Central Hawke’s Bay District Council the changes in remuneration for elected members is shown in the table below (and on page 17 of the attached determination):

Central Hawke’s Bay District Council
Office	Annual Remuneration ($)
Mayor	$95,584
Deputy Mayor and Chairperson Finance and Planning Committee	$40,320
Chairperson Community Development Committee	$32,760
Chairperson Audit and Risk Committee	$32,760
Chairperson Environment and Regulatory Committee	$32,760
Councillor	$25,200

The Determination includes an update to the vehicle mileage allowance rates to reflect the new kilometre rates published by the Inland Revenue Department (page 7 of the attached determination) and also introduces the provision for childcare allowances at the discretion of each council (page 9 of the attached determination).

Stage Three: The final suite of changes take effect from the day after the date on which the official result of the 2019 election of members for the council is declared by public notice. At this time, there will be a move to a ‘full pool’ approach whereby each council is allocated a pool relating to the ranking of the council on the size index. Each council will provide a proposal to the RA on the councillor base pay and the additional pay for positions of responsibility and the whole of the pool allocated. However, the pool will not apply to the remuneration of the Mayor which will continue to have their pay set directly by the RA.

Childcare allowances

This year, for the first time, the RA has introduced a childcare allowance for members who have responsibility for caring for children under the age of 14 years. The allowance is a contribution towards expenses incurred by the member for the provision of childcare while the member is engaged in local authority business. The allowance is capped and is subject to certain conditions.

It is purely at each council’s discretion whether or not it includes a childcare allowance.

If Council elected to introduce childcare allowances this would need to be included into the Elected Members Expenses and Allowances Policy which would be done as part of the triennial review following the 2019 Local Body elections.

SIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as of some importance. In relation to section 79 of the Local Government Act 2002, this decision is considered to be of low significance when assessed against Council’s significance and Engagement policy.

OPTIONS

Given that Council must give effect to the 2019/2020 Determination the only matter at Council’s discretion is whether to include the provision to pay childcare allowance. The table below reflects the options available to Council and the advantages and disadvantages of each option:

No	Option	Advantages	Disadvantages
1	Introduce childcare allowances	· Reduces the barriers to parents entering into elected positions in local governments. · Opens opportunities for local government to access the ideas, talent, skills, insights, contacts and passion that further diversity could bring to local government. · Provides certainty to candidates prior to elections.	· Not currently budgeted. If Council opted to allow the Childcare allowance, it would require an additional $6000 per annum per child (maximum). This would not be able to be accommodated within existing budgets. · Would provide an inconsistent policy approach between council employees and elected members
2	Do not introduce childcare allowances	· No additional budget required · Provides certainty for candidates prior to election. · Maintains a consistent approach to council support for employees and elected members.	· Does not address barrier to parents entering into elected positions in local government.
3	Defer the decision on childcare allowance to the incoming council.	· Does not tie the incoming council to a decision on allowances	· Does not provide certainty for candidates prior to elections whether there will be childcare allowances which could deter parents from standing.

NEXT STEPS

If approved by Council, the Childcare allowance payments can take effect from 1 July 2019.

Management will then include the necessary provisions in the Councillors’ Allowances and Reimbursements Policy for Council adoption

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a) That Council receives the information contained in the report.

b) That Council agrees to approve, or not approve payment of a Childcare allowance as per the 2019-2020 determination

Finance and Planning Committee Meeting Agenda 15 August 2019

5.3 Finance and Planning Committee Work Programme Report

File Number: COU1-1400

Author: Monique Davidson, Chief Executive

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

Recommendation

That, having considered all matters raised in the report, the report be noted.

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

The role of the Finance and Planning Committee is to assist Council to discharge its responsibilities for:

• Preparation and promotion of key planning documents including the Long Term Plan, Annual Plan and District Plan

• Assess and progress current and future projects

• Policy review and development relevant to finance, planning and infrastructure

Specific responsibilities include:

• Discussion and preparation of the Annual Plan

• Discussion and preparation of the Long Term Plan

• Discussion and preparation of the District Plan

• Approval of appropriate draft strategies, plans and policies for public consultation

• Recommend appropriate strategies plans and policies to council for adoption

• Council owned infrastructure

• Finance policies

• Infrastructure policies

The purpose of this report is to provide a regular update on key areas of focus for the Finance and Planning Committee. Current updates are as follows:

Long Term Plan 2021-31 and Annual Plan 2019/20

The planning for the development of the Long Term Plan 2021-31 has begun with the development of a project charter and the establishment of a project team. The high-level timelines have been established and the objectives and risks identified. During the discussion around the charter, it was agreed that Annual Plan 2019/20 project would run in conjunction with the Long Term Plan Project but would have a separate plan. This is in the process of being established.

Rates Review

The first stage of the Rates Review requires Council assess the activities based on the five criteria of 101 (3) (a) that need to be considered. This has been completed for all the activities other than Properties and Buildings. A reporting will be bought to Council on 29 August to consider the options for this Activity and to adopt the outcomes of the first stage of the Rating Review. The remaining stages of the review will be completed following the local body elections

District Plan

There is a key project status report included in the Finance and Planning Agenda which provides a comprehensive update.

Given this is the last Finance and Planning Committee meeting of the 2016-2019 Triennium it is worth using this report as an opportunity to highlight and capture some of those key achievements of the committee over the last three years.

Development Contribution Policy

Council reviewed and adopted a revised Development Contributions Policy in December 2018. Following the adoption of the policy, $106k has been charged for Development Contributions.

The Big Water Story

The development and commitment to such an extensive three waters capital investment has been guided by the advice and decisions of the Finance and Planning Committee. Key projects under the umbrella of the Big Water Story progressed well through 2018/19 with several large projects moving from investigation and design phases into physical construction. Numerous procurements have occurred and Council are developing and maintaining a reputation as a preferred principle in the hot Hawke’s Bay contracting market. A full key status report on this programme is included in the meeting agenda.

Long Term Plan 2018-2028

As part of its requirement to meet the purpose of Local Government, Council prepares a Long Term Plan every three years.

The Long Term Plan (LTP) 2018-28 saw a very different approach by Council to the development and final adoption of the LTP. The year before the adoption, instead of consulting on the Annual Plan, Council used the opportunity to consult with the community on its aspirations and what was important for a thriving CHB.

The outcomes of the consultation, named Project Thrive, was the basis for the development of the LTP for 2018-28. The Finance and Planning Committee provided key feedback to the development of the projects included in the LTP, including the #bigwaterstory, Town and Community Plan, a focus on Economic Development and other key initiatives from Project Thrive.

Over 15 months the Committee reviewed all aspects of the Long Term Plan. Following the review and setting of budgets, five items were included in the Consultation Document for specific feedback. Funding of the Water and Waster Activities, Investment in the 3 Waters Infrastructure over the next 30 years, the development of Town Centre and Community Plans, the development of the Waipawa Memorial Centennial Baths and the Funding of Emergency Management for Central Hawke’s Bay. Council received 282 submissions and heard 48 verbal presentations of submissions. Council deliberated on the outcome of the Consultation on 3 May 2018 and the Long Term Plan was adopted on 31 May 2018.

Key Contract Procurements

In 2018 Council took to market several key contracts for works related to activities governed by this Committee. Through these procurements Council sought to attract strategic partners that would provide excellence in delivery as well as demonstrated commitment and alignment to Councils vision and values. Through the process Council signed new agreements with:

· Recreational Services and Veolia – Community Facilities and Infrastructure Contract

· Higgins – Landfill Operations Contract

· Stantec – Land Transport Professional Services Contract

· Smart Environmental – Refuse and Recycling Contracts

Dust Suppression Policy

In April, Council adopted the Dust Suppression Policy (the Policy) and supporting Guidelines (the Guidelines). The Policy was a revision of a legacy policy that was considered restrictive and did not allow Council the option to invest in sealing unsealed roads to control dust. The new Policy allows Council to invest in sealing roads to control dust where;

1. External funding was available (this could be from NZTA, landowners or other sources)

2. Funds were available within Council (this could be through the creation of dedicated funds, through additional revenue gathering means or through the reprioritisation of existing funds/investment programmes)

The Guidelines created provide a transparent, consistent and rigorous means for Officers to consider the need to invest in sealing to control dust. The Guidelines allow Officers to determine where Council investment is appropriate based on the following criteria:

1. Frequency of dust issues

2. Intensity of the dust issue / concentration

3. Duration of exposure to dust

4. Offensive/Character – the type of dust

5. Location of issue and context

Importantly these criteria and the Guidelines also afford Officers an effective means of prioritising between potentially competing uses of funds.

Following adoption of the Policy, Council agreed to expedite its implementation through the investment in a holistic network study of unsealed roads against the Policy criteria. This work is programmed for November 2019.

Footpath Policy

In 2018 Council resolved to create a policy that would see ongoing investment in the creation of new footpaths in the district. This was on the back of ongoing requests from various communities about the need for new footpaths and was bolstered by NZTAs policy change providing new funding for footpath construction.

A weighted multi-criteria decision tool was created to enable Officers to prioritise investment. All areas of the district being considered for new footpath construction (either through customer requests or by Council network analysis and assessment) are prioritised using the tool and this approach is set out in the Policy.

Following adoption of the Policy, existing requests for new footpaths were assessed against the Policy criteria and a prioritised work programme taken to market. Construction has now begun in several areas.

Waste Water Treatment Plant Upgrade Project

The Finance and Planning Committee together with the Environment and Regulatory Committee sponsored the development and work of the community reference group. The project to upgrade Councils 3 largest and highest risk waste water treatment plants progressed significantly in 2018/19. The project has been run absolutely appropriately given its magnitude with new levels of project management formality and rigor brought to Council.

In July, Council took another step forward by confirming a land purchase in the lower reaches of the Waipawa River. The site was identified as having potential uses for land discharge, treatment and storage. Through a due diligence process, Council and independent experts confirmed the land to be useful for discharge and storage purposes. The full report into the land is attached.

Further detail is provided in the Big Water Story Key Project Status Report.

Earthquake Prone Priority Routes

In 2018 Council started a project to identify earthquake-prone buildings. This process is required under the Building (Earthquake-prone Buildings) Amendment Act 2016 and requires that Local Authorities identify priority earthquake prone buildings by 1 January 2020. We launched our consultation on priority routes in Waipukurau and Waipawa over September-October 2018 and received a small number of responses. This prompted us to reduce the areas where priority buildings could be identified in both urban centres, with Council making the decision in December 2018.

Following that decision, Council held some property owner forums to talk through the process with our local property owners. We engaged Calibre Engineering, based in Palmerston North, to attend these forums and talk through the identification process and possible building solutions to earthquake prone buildings. In June an engineer from Calibre Engineering spent a week in our office identifying priority buildings, and as of the beginning of August we have a mostly complete list of priority buildings, with six buildings awaiting further investigation. We aim to have this list fully complete by the end of September and letters sent to all property owners in the priority routes area informing them of their status. This will ensure we meet our deadline set by legislation and gives our property owners a bit of extra time to discuss this if they have further questions of our process

Non Rateable Income Strategic Framework

The Finance and Planning Committee sponsored the development of a non-rateable income strategic framework. This framework was approved by the Committee and then Council in June 2019, and provides guidance on those actions and initiatives to be prioritied to secure and ensure a financial sustainability and affordability via non-rateable income.

Financial and Resourcing Implications

There are no financial or resourcing implications highlighted in this report.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:

· Council staff have delegated authority for any decisions made;

· Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;

· Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

· Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

· Any decisions made are consistent with the Council's plans and policies; and

· No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

Next Steps

This is the final scheduled Finance and Planning Committee of the triennium.

Recommendation

That, having considered all matters raised in the report, the report be noted.

Finance and Planning Committee Meeting Agenda 15 August 2019

PROJECT NAME

PROJECT NAME

Key Benefits

Compliance with mandatory requirements in the Resource Management Act (RMA) to begin review of a District Plan every 10 years of adopting the Operative Plan.

Pre-statutory consultation provides for engagement with the community and an opportunity to discuss any issues with provisions introduced or amended in the draft prior to statutory phases of the review commencing.

Gives effect to the Hawke’s Bay Regional Resource Management Plan and Regional Policy Statement.

Gives effect to National Policy Statements and National Environmental Standards.

Builds on project Thrive.

Project Delivery Objectives

To prepare and deliver a second-generation draft Plan compliant with the principles and purposes of the Resource Management Act 1991 and amendments ready for release for public consultation in May 2019..

To undertake community engagement and consultation of the Draft Plan in accordance with associated legislation that achieves robust and effective community understanding of the plans issues and opportunities, while limiting the number of sustained legal challenges of the Draft Plan.

To undertake informal hearings of those submitters who wish to present their submission to Council to ensure full understanding of the submission issues and engage in a meaningful way with the community.

To undertake completion of outstanding bodies of work that require closure prior to notification of the Proposed Plan in 2020.

Report No.	Report Date	Report Frequency	Project Sponsor	Project Manager
3	15/08/2019	As Required	Doug Tate	Helen O’Shaughnessy

Sponsor’s Project Delivery Confidence Assessment

The District Plan Review project is a significant project for the Central Hawke’s Bay District – both in terms of spend and impact the resulting plan will have for the Central Hawke’s Bay Community.

The project is progressing well in accordance with the programme adopted by Council in August 2018, with consultation of the pre-draft now substantially complete. The range of submission areas and key topics that have resulted from consultation and now require further attention will now be the focus now of Officers, as we work through what are some complex areas.

At the time of writing the final meeting of the District Plan Subcommittee will be held to update the committee on the initial themes that are developing from consultation, with this final meeting recognising that the committee have achieved the scope of the Terms of Reference. A special note for the sub-committee’s efforts and commitment to the project should be made at this time.

Planning for the informal hearings is underway, with the Council of the new Triennium to be determine the most appropriate method of delivering hearings, whether as the full council or a new subcommittee

Budget will continue to remain an area of continuous focus, particularly as we now work through in detail the implications of the submissions on the draft plan. We will be tabling a further report to Councils meeting of 29 August, with further detail of the submissions and will be working through the cost implications to fully consider the issues raised in this draft phase through early September.

Despite challenges, particularly around budget – there are some great opporutnities that have also been iddntified. The ability to incorporate the New National Planning Standards with support from MFE is a great example of this.

As project sponsor I remain comfortable providing a project delivery confidence assessment of seems probable.

1. Overall Confidence Assessment

Project Manager’s Status Summary
Key Questions Impacting on Project Objectives		No	Yes	Explanation & Proposed Resolution to Problem
1	Are there Business Case Benefit attainment problems?	ü	☐
2	Are there Scope Control problems?		ü	Three areas of scope control occur in relation to the outstanding bodies of work to be completed before notification of the proposed District Plan The outstanding bodies of work to be addressed include; 1. Completion of the Urban Growth Strategy; and 2. Preparation of the Section 32 Report. Work is progressing on both outstanding bodies of work with a view to completion by the end of 2019. A second area of scope control relates to the integration of the Proposed District Plan into the National Planning Standards (NPS). The NPS were gazetted on 5 April 2019 and require that Proposed Plans are released in the structure and format of the standards. Council is working directly with Ministry for the Environment (MFE) to integrate the draft District Plan into the NPS format and structure. The CHB District Plan is being used as a national model by MfE to determine the cost and time taken to integrate the NPS into a district plan to provide guidance to other TAs on the resource implications of adoption of the standards. At this stage the timeline used by MfE is uncertain in relation to completion of the integration. A third area of concern relating to scope control is the need to revisit the capacity of land within the urban boundaries of Waipawa and Waipukurau currently zoned for residential growth. It appears that Council’s understanding of the implications of projected population growth and the availability of land zoned for residential development will need to rationalised in light of information received by Council suggesting land currently zoned for residential use remains not serviced (for storm water and waste water discharge) and therefore unsuitable for residential development. An investigation and assessment of why the some areas of residentially zoned land in Waipawa and Waipukurau has not been developed and the correlation of this to the provision and likely provision of services is critical to understanding the need to provide for growth nodes, expanded urban boundaries and or bespoke lifestyle zones in the Proposed Plan. We will be addressing these scope areas in more detail at Councils meeting on 29 August.
3	Will Target Dates be missed?	ü	☐	At the time of preparing this report it is proposed to present a proposed timeline to the District Plan Sub-committee in August suggesting that the informal hearings of submissions be undertaken in November/December 2019. Deliberations on the submissions to be heard by the informal panel, as well as the submissions made by people who did not wish to be heard, can then occur after the hearings in early 2020. This scheduling aligns with the timeline adopted by Council (Option B) in November 2018. At this stage it is not known what amendments elected members may wish to make to the draft District Plan based on points made in submissions. However, given a notification date of July 2020 it is considered that the project should meet this scheduled date. This notification date also aligns with the adoption of Option B by Council in November 2018 which includes a notification date of the proposed Plan in July 2020. Although the project is tracking to scheduled dates and the Proposed Plan is likely to be complete ready for notification in July 2020 some risk still exists around the timing of completion of outstanding bodies of work. The completion of the infrastructure assessment identified above will also be critical for completion of the Proposed Plan. This will need to be monitored and reported to Council when the risks are more fully understood.
4	Will Project Costs be overrun?	ü	☐	The total cost of the District Plan review will not be known until the formal notification of the Proposed Plan in July 2020 and subsequent Hearings are held. The formal notification process will provide more certainty around the agreement of key stakeholder and industry groups around resource management issues, legal challenge to the key messages in the Plan and Councils appetite to defend issues has been worked through. There is additional budget included in the first years of the 2018 – 2028 Long Term Plan. Projected budget requirements for the next phase of the review through to notification of the Proposed Plan indicate that additional budget will be required. This overspend was discussed by Council in November 2018 when an additional $110,000 was provided to cover additional expenditure required to complete the draft.
5	Are there Quality problems?	ü	☐	The final draft was edited by Katherine Knight prior to release for public consultation to ensure consistency of language, writing style and correct cross referencing. It will be necessary to carefully check the content and cross referencing of the document following the integration by MfE into the NPS to ensure that quality outputs are maintained.
6	Are there Resource problems?	☐	ü	There is a continued and considerable risk in Council not providing a dedicated iwi liaison role which is considered necessary to provide support to iwi on the district plan review. This important role is important to address Maori participation in the review, more particularly possible Mana Whakahono a Rohe partnerships and tangata whenua consultation, both required under the RMA and RLAA. Although three hui were held (at Porangahau and Waipukurau and with the Kairakau lands Trust) as part of the community consultation, there has been minimal feedback from tangata whenua on the draft District Plan. Considerable risk to the robustness of the Council’s position on projected population growth and the capacity to absorb this growth within existing urban zones remains. Completion of the infrastructure assessment referred to earlier in this report needs to be completed and the results integrated in the Proposed Plan before it can be notified. Significant risk to the project remains around illness and/or leave by the Project Management role of the Senior Planner project managing the project. Although additional resource has been provided to give support to this role, risks remain in relation to this sole project management role.
7	Are there Risk Management problems?	ü	☐	The introduction of risk management processes, including a Risk Register, is considered essential to provide more robust risk management processes for the review. Regular reporting of these risks is required to keep Council members fully informed.
8	Are there Review and Approval problems?	ü	☐
9	Are there Teamwork problems?	ü	☐
10	Are there Stakeholder problems?	ü	☐	The most significant area where stakeholder problems may arise include consultation with tangata whenua and The Treaty Settlement Group around the cultural provisions of the Plan. The additional resource of an iwi liaison officer will contribute significantly to the successful outcome of cultural consultation as Council embarks on the statutory phase of the review.
11	Are there Iwi issues?	ü	ü	The continuing support and guidance of Roger Maaka and Brian Gregory is acknowledged and recognised as a valuable contribution to the drafting of the Plan’s cultural chapters. Their involvement and contribution provides a strong and robust base for ongoing consultation and engagement with iwi, particularly the Treaty Settlement Group. The potential engagement of an iwi liaison officer, as discussed in Item 6 of this report, will also be a valuable resource in addressing cultural consultation. The timeframes of the review are however a continuing concern in regard to undertaking appropriate and meaningful consultation with tangata whenua. Effective consultation with tangata whenua is even more relevant and important during the formal statutory phases of the District Plan review.
12	Are there Communication problems?	ü	☐	Effective and robust communication has been undertaken with the wider Central Hawkes Bay community in relation to the release of the draft District Plan. This involved the release of detailed and relevant information about the review into the public arena and also media releases on several social media sites. Six public meetings and three hui were held over the month of June to communicate with the public about the draft District Plan. It appears several submissions have been made by members of the public who attended one of these events.
13	Are there Change Management problems?	ü	☐
14	Are there Health & Safety issues?	ü	☐	No health and safety issues are apparent.

Project Manager’s Progress Summary
Achievements/Activities since last status report
This is the third key project status report prepared on the draft review of the District Plan. The substantially completed draft was adopted by Council on 31 October2018. The draft District Plan was adopted by Council on 10 April 2019. Since the presentation of the second key project report to Council in August 2018 the following tasks have been undertaken: 1. Completion of the draft District Plan. Since the last Key Project Status Report the draft District Plan has been completed and adopted by Council. Completion of the draft involved finalisation of Chapter Eight, the Natural Environment, and in particular the assessment of Significant Natural Areas (SNAs) and the mapping of these areas across the District. The fully completed draft District Plan was adopted by Council at a public excluded meeting on 10 April 2019. 2. Consultation with Rural Property Owners – Significant Natural Areas , Outstanding Natural Landscapes and Features As discussed in the second Key Project Status Report, the review has involved a comprehensive assessment of the districts Significant Natural Areas (SNAs). These areas are essentially the most significant remnants of indigenous vegetation and habitats for indigenous fauna remaining in the district. Council is required to identify and protect these areas under the Resource Management Act. The SNA assessment was undertake on Council’s behalf by Gerry Kessels, Principle Ecologist from the office of Tonkin & Taylor, Hamilton. Gerry’s assessment confirmed that just over 10% of the district was covered by SNAs and that the majority of these areas were located on private property within the rural environment. In regard to this it was decided by the District Plan Sub-committee that it was a priority to consult with these rural property owners ahead of release of the draft District Plan for consultation. It was considered a courtesy by the Sub-committee to meet with and discuss the SNA provisions of the draft District Plan with land owners whose property included these SNAs as an effective way of engaging with them. To this end individual maps of properties with SNA’s were prepared and, supported by a letter to land owner, were sent to each property owner with an identified SNA on their property. The letter introduced the SNAs, explained why the Council had identified the SNAs in the draft and invited each SNA property owner to attend one of three meetings hosted by Council to discuss the SNAs in the draft District Plan. An information brochure on SNAs was also prepared and included within each letter sent out. The information brochure on SNAs was inclusive of a feedback form and a stamped addressed envelope to Council to encourage landowners to make submissions on the review. Gerry Kessels was present at each of the three property owners meetings (held in Waipukurau, Porangahau and Tikokino) to explain his methodology and discuss the individual SNAs with landowners. An important outcome of the three meetings was also to allow Council to receive feedback from property owners on the individual features of the SNAs identified on their property. The assessment undertaken by Council was a desktop exercise and the information provided by landowners regarding the nature of vegetation and the alignment of SNA boundaries was critical to ensure accuracy of the mapped SNAs. Each of the three meetings was well attended and feedback from property owners has been very helpful and informative. In addition to the identification of SNAs in the draft, Council also undertook an assessment of Outstanding Natural Landscapes (ONL) and Outstanding Natural Features (ONF) in the district. Areas of High Natural Character in the Coastal Environment were also identified. This is the first time that Council has identified these landscapes as part of a district plan review. John Hudson, Hudson & Associates, undertook this assessment on behalf of Council. Mr Hudson also attended the three property owner, referred to above, to discuss these landscape and high natural character areas with rural property owners. Many landowners were very interested in this new section of the review and a generally positive response was received to the landscape assessments. 3. Consultation with Stakeholder Groups In addition to the three meetings held for land owners with SNAs and landscape areas identified on their properties, Council also held three meetings with stakeholders ahead of the release of the draft District Plan. The stakeholder meetings were to inform key members of the Central Hawkes Bay community about the strategic direction taken with the review ahead of the draft becoming public. Stakeholder meetings were held with the following groups; Ø The development community (including lawyers, surveyors, real estate agents, 15 May) Ø Stakeholders representing rural property owners (8 May) Ø Network Utility companies (10 May) 4. Engaging with the wider Central Hawkes Bay Community. Six public community ‘Have Your Say’ meetings were held during the month of June at various locations throughout the district. Many of these community meetings were attended by members of the District Plan Sub-committee and were generally well attended by the public. The meetings were held form 4.00pm – 7.30pm and up to three power point presentations on the draft were made at the meetings by officers and consultants. The community meetings held were: Ø Tuesday 4 June 2019, Waipukurau Club, Russell Street Ø *Tuesday 11 June 2019, Otane Hall,* Higginson St Ø Wednesday 12 June 2019, Porangahau St *Hall,* Abercrombie Ø Tuesday 18 June 2019, Takapau Hall, 37 Charlotte St Ø Wednesday 19 June 2019, Tikokino Hall, Owen St Ø Tuesday 25 June 2019, CHB Municipal Theatre, Waipawa Members of the Sub-committee also meet with rural leaders on 15 July to dsicuss the new rural zones and subdivision sizes. Lachie Grant, Councils agricultural expert, attended this meeting to provide an overview of his assessment of the productive and versatile soils of the district. Supporting material on the draft District Plan was made available to members of the public at all meetings including brochures with general information on the review and how to make a submission, flyers with specific information on the key messages identified to capture the main resource management issues addressed in the review and A1 posters illustrating the key messages. Council’s Planning Consultants, Sage Planning, attended all six meetings and two hui to provide advice to those attending the meetings on the review. 5. Engaging with iwi In addition to the community meetings the sub-committee and consultants attended two hui to discuss the provisions of the draft. The details of the hui were; Ø Thursday 6 June, Rongamaraeroa Marae, Porangahau; Ø Thursday 20 June 2019, 5.30pm-7.30pm Tamatea Taiwhenua. An additional hui was held on 1 July with Mayor Alex and members of the Kairakau Land Trust to discuss specific provisions of the draft of relevance to Kairakau Lands Trust. There will be further areas of discussion to be held with iwi and local hapu over the coming months.
Activities to be started/completed or in progress over the next month

Description	Planned Completion	Forecast Completion	Comments
Complete review of the content of the submissions made on the draft.	It is proposed that officers and consultants will have a sound understanding of the points raised in each submission and have prepared a spreadsheet of submission points by the end of August.	Work is on schedule to meet this milestone.	To date 96 submissions have been received by Council. Many of the submissions cover multiple points and are considered to be substernal in content. It is essential that officers and councils planning consultants have a sound understanding of the content of the submissions and the amendments sought to be able to provide advice to elected members when deliberating on the submissions.
Preparation for the informal hearings in November 2019	A total of 55 submitters have requested to be heard at the informal hearings. This represents a significant volume of work in regard to scheduling the appearance and timing of submitters at the hearings and ensuring accurate timetabling to enable to the process to run as smoothly as possible.	Work is on schedule to meet this milestone.	The opportunity for individual submitters to appear before the Informal Hearings Panel is an important and significant part of the pre-statutory consultation of the draft Plan. Careful scheduling and timetabling of the 55 submitters is critical to ensure each submitter feels they have had the opportunity to be heard and members of the panel have an opportunity to seek clarification of points made in each submissions as appropriate.
Preparation of recommendation reports to assist members of the Informal Hearings Panel in their deliberations on the submissions that are not represented by submitters at the hearings. It should be noted that officers will also prepare recommendation reports on the submissions that are presented to the Panel but that this will occur after the informal hearings to allow for consideration of the discussion at the informal hearings.	It is proposed that the recommendation reports on submissions not represented at the informal hearings can commence mid/late August.	At the time of writing this report work has yet to commence on the recommendation reports.	The purpose of these reports is simply to provide advice from an RMA perspective to the members of the Informal Hearings Panel to assist with the deliberations of submissions. Should it be required input from Council’s technical experts will also be included in these reports.
Completion of outstanding bodies of work required to be completed before the Proposed Plan can be notified.	This work is ongoing.	Ongoing.	The remaining bodies of work include; - Section 32A report - Completion of the Urban Growth Strategy - Update of designations schedule
Feedback to property owners who have made submissions on the SNA, ONL and ONF provisions of the draft District Plan.	This work is reliant on the availability of Gerry Kessels, Councils Ecologist. It is hoped that over the next six weeks contact will be made with property owners who require and/or have requested ground truthing to progress this part of the review prior to finalising the SNA areas for inclusion in the Proposed Plan.	Ongoing	A schedule has been complied of the property owners who would like further discussion or ground truthing of the SNAs on their property. While contact has generally been made with these landowners the next step is to arrange a site inspection of their SNAs before Gerry Kessels can make a final decision re the inclusion/exclusion of these SNAs in the Proposed Plan.
General Comments
Preparation for the Informal Hearings is now a key focus of the review. Ensuring that the timing and scheduling of each submitter provides an opportunity for the Hearings Panel to fully understand the points raised in each submission presented is critical. This is critical to meeting the timeline for release of the Proposed Plan in July 2020. Work is progressing on the outstanding bodies of work and the integration of the draft Plan into the National Planning Standards. The upload of the draft to the Isovist eplan platform is also underway and scheduled for completion to ensure the Proposed Plan will be Notified as an eplan. An immediate review of the likelihood of the provision of infrastructure to currently un-serviced residential zoned land is necessary to enable Council to be confident with regard to projected population growth and where this growth can and should be directed to.

Key Milestones	Planned Completion Date	Status	Comments
Non-Statutory Draft Plan Hearings	30/11/2019	Yet to start
Summary of submissions and high level recommendations	16/12/2019	Yet to start
Ratify Changes	29/03/2020	Yet to start
Council resolution to Notify proposed Plan	01/04/2020	Yet to start
Public Notification of Proposed Plan	01/06/2020	Yet to start

Project Lifecycle Progress

2016

Early 2017

1 August 2017 - 2020

2020

2021

Project Financial Update

Project Statistics 2017/18	Expenditure		Schedule
Project Statistics 2017/18	Whole Life ($)	Current Year ($)	Total Weeks	Effort (Staff Hrs)
Approved Project Budget (Baseline)	-	$420,600	-	-
Actual Spent to Date (30 June 2019)	-	$467,539	-	-
Estimate to Complete Reminder of Project (ETC)	-	$1,810,544	-	-
Forecast at Completion (EAC)	-	$1,810,544	-	-

General Comments

The following table identifies the estimated financial budget for Option B over the current and next three financial reporting periods.

	18/19	19/20	20/21	21/22	Total
Option B	$530, 894	$335,250	$779,400	$165,000	$1,810,544

Project Delivery Confidence Assessment Key

Key	Attention Required	Issues/Risks	Delivery
	Minimal	None	On Time
	Constant	Potential	Delays Probable
	Manage	Exist but resolvable	Delays Likely
	Urgent	Major	Delays
	Critical	Critical	Major delays. Re-scope/Re-assess