Council Tuesday 20 August 2019 at 10.30am
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Council Meeting
20 August 2019
Northland Regional Council Agenda
Meeting to be held in the Council Chamber
36 Water Street, Whangārei
on Tuesday 20 August 2019, commencing at 10.30am
Recommendations contained in the council agenda are NOT council decisions. Please refer to council minutes for resolutions.
Item Page
Housekeeping
1.0 apologies (ngĀ whakapahĀ)
2.0 DECLARATIONS OF CONFLICTS OF INTEREST (NGA WHAKAPUAKANGA)
3.0 Health and Safety Report 5
4.0 Council Minutes/Action Sheet/Council Working Party and Working Group Updates
4.1 Confirmation of Minutes - 16 July 2019 7
4.2 Working Party Updates and Chairpersons' Briefings 17
4.3 Council Working Group Update 19
4.4 Receipt of Action Sheet 21
5.1 Externally Managed Investment Funds: 2018/19 Performance and Proposed Allocation of Gains 24
5.2 Resource Enterprises Limited (REL) - Loan Impairment 33
5.3 Request for Approval to Carry Forward Operational Budget from the 2018/19 Financial Year into the 2019/20 Financial Year 37
5.4 Request for Approval to Carry Forward Capital Expenditure Budget from the 2018/19 Financial Year into the 2019/20 Financial Year 40
5.5 Special Reserves at 30 June 2019 47
5.6 Regional Rates Collection - 2018/19 58
5.7 Draft Financial Result to 30 June 2019 63
6.1 Update to Delegations 67
6.2 Northland Water Storage and Use Project: Council approval to progress and execute the project 74
6.3 Freshwater Quality Management Units for Northland 76
6.4 Assessing Freshwater Quantity Limits for Fully Allocated Water Bodies 81
6.5 Draft Productivity Commission Report on Local Government Funding and Financing 85
6.6 Environment Fund Over-allocation 89
6.7 Initial Restructure of Managed Funds 93
7.1 Chair's Report to Council 111
7.2 Chief Executive’s Report to Council 113
7.3 Reporting on Long Term Plan 2018-2028 Performance Measures for the Year Ended 30 June 2019 132
8.0 Business with the Public Excluded 139
8.1 Confirmation of Confidential Minutes - 16 July 2019
8.2 Human Resources Report
ACC - Accident Compensation Corporation AHB - Animal Health Board ALGIM - Association of Local Government Information Management AMA - Aquaculture Management Area AMP – Asset Management Plan/Activity Management Plan BOI - Bay of Islands BOPRC - Bay of Plenty Regional Council CAPEX - Capital Expenditure (budget to purchase assets) CBEC - Community, Business and Environment Centre CDEM - Civil Defence Emergency Management CEG - Co-ordinating Executive Group – Northland Civil Defence management team CEO - Chief Executive Officer CIMS - Co-ordinated Incident Management System (emergency management structure) CMA - Coastal Marine Area CPCA - Community Pest Control Areas CRI - Crown Research Institute DHB - District Health Board DOC - Department of Conservation DOL - Department of Labour DPMC - Department of Prime Minister and Cabinet ECA - Environmental Curriculum Award ECAN - Environment Canterbury EE - Environmental Education EECA - Energy Efficiency Conservation Authority EEZ - Exclusive Economic Zone EF - Environment Fund EMA - Employers and Manufacturers Association EMC - Environmental Management Committee EOC - Emergency Operations Centre EPA - Environmental Protection Authority FDE - Farm Dairy Effluent FNDC - Far North District Council FNHL - Far North Holdings Limited FPP - First Past the Post – voting system for NRC elections GE - Genetic Engineering GIS - Geographic Information System GMO - Genetically Modified Organism HSNO - Hazardous Substances & New Organisms Act HBRC - Hawke's Bay Regional Council HEMP - Hapū Environmental Management Plan Horizons - Brand name of Manawatu-Wanganui Regional Council HR - Human Resources HSWA - Health and Safety at Work Act 2015 IEMP - Iwi Environmental Management Plan IPPC - Invited Private Plan Change: a process to allow Aquaculture Management Areas to be established IRIS - Integrated Regional Information System KDC - Kaipara District Council KPI - Key Performance Indicator LATE - Local Authority Trading Enterprise LGA - Local Government Act 2002 LGNZ - Local Government New Zealand LGOIMA - Local Government Official Information and Meetings Act 1987 LGOL - Local Government Online LTP - Long Term Plan LTFS - Long Term Financial Strategy MCDEM - Ministry of Civil Defence & Emergency Mgmnt MFE - Ministry for the Environment MHWS - Mean High Water Springs MMH - Marsden Maritime Holdings Limited MNZ - Maritime New Zealand MOH - Ministry of Health |
MOT - Ministry of Transport MPI – Ministry for Primary Industries MSD - Ministry of Social Development NCMC - National Crisis Management Centre NES – National Environmental Standards NDHB - Northland District Health Board NZRC - New Zealand Refining Company (Marsden Point) NGO - Non-Governmental Organisation NIF - Northland Intersectoral Forum NIWA - National Institute of Water and Atmosphere NORTEG - Northland Technical Advisory Group NZCPS - New Zealand Coastal Policy Statement NZTA - New Zealand Transport Agency NZQA - New Zealand Qualifications Authority NZWWA - New Zealand Water and Wastes Association OFI - Opportunity for Improvement ORC - Otago Regional Council OSH - Occupational Safety & Health (now Ministry of Business, Innovation and Employment) PCBU – Person Conducting Business or Undertaking PDF - Portable Document Format PPE - Personal Protective Equipment RAP - Response Action Plan RAQP - Regional Air Quality Plan RCP - Regional Coastal Plan RFI - Request for Information RFP - Request for Proposal RTC - Regional Transport Committee RLTS - Regional Land Transport Strategy RMA - Resource Management Act 1991 RMG - Resource Managers Group (Regional Councils) RMZ - Riparian Management Zone ROI - Return on Investment RPMS - Regional Pest Management Strategy RPS - Regional Policy Statement RSG - Regional Sector Group RTO - Regional Tourism Organisation RWASP - Regional Water and Soil Plan SIPO – Statement of Investment Policy and Objectives SITREP - Situation Report SMF - Sustainable Management Fund SOE - State of Environment (or) State Owned Enterprise SOLGM -Society of Local Government Managers SPARC - Sport & Recreation New Zealand SRC - Southland Regional Council (Environment Southland) STV - Single Transferable Vote SWAG - Surface Water Allocation Group SWPA - Sustainable Water Programme of Action TA - Territorial Authority: City & District Councils TAG -Technical Advisory Group Tier 1 - Site level plan or response for an oil spill Tier 2 - Regional level plan or response to an oil spill Tier 3 - National level plan or response to an oil spill TLA - Territorial Local Authority – City & District Councils TMP - Treasury Management Plan TOR - Terms of Reference TPK - Te Puni Kōkiri (Ministry of Maori Development) TRAION - Te Rūnanga a Iwi o Ngāpuhi TRC - Taranaki Regional Council TROTR -Te Rūnanga o Te Rarawa TUANZ - Telecommunications Users Association of NZ WCRC - West Coast Regional Council WDC - Whangarei District Council WHHIF - Whangarei Harbour Health Improvement Fund WRC - Waikato Reginal Council WSMP – Workplace Safety Management Practices WWTP - Wastewater Treatment Plant |
Council Meeting item: 3.0
20 August 2019
TITLE: |
Health and Safety Report |
ID: |
A1224420 |
From: |
Beryl Steele, Human Resources Manager |
Executive summary/Whakarāpopototanga
This report provides an overview of health and safety activity during the month of July 2019.
The number of incidents remains low. This last month we have mainly been working on business as usual activities. Work has commenced on reviewing and updating our chemical register and our traffic management plan is ready to be submitted once ID numbers for staff have been obtained from NZTA.
That the report ‘Health and Safety Report’ by Beryl Steele, Human Resources Manager and dated 2 August 2019, be received.
Background/Tuhinga
YTD results:
Health and safety manual/policies/documentation
· Updated policies have gone to the H&S Committee for feedback. They now need to go through OMT and ELT before being adopted.
· The Health and Safety Strategy has been adopted by the Committee and has gone to ELT members who were not at the meeting for comment. The next stage in the process is to work on the detail for implementation.
· Work has commenced on reviewing and updating our chemical register.
Health and safety visits, training and other
· The Traffic Management Plan has been done but can’t yet be submitted for approval until those who have done the initial Traffic Controller course have their ID numbers from NZTA – it takes approximately 11 weeks before they get these so we should be able to submit our TMP around the 2nd week of September. As further staff complete the course they will be added to the TMP.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
12 August 2019 |
Council Meeting item: 4.1
20 August 2019
TITLE: |
Confirmation of Minutes - 16 July 2019 |
ID: |
A1221472 |
From: |
Chris Taylor, Governance Support Manager |
That the minutes of the council meeting held on 16 July 2019 be confirmed as a true and correct record.
Attachments/Ngā tapirihanga
Attachment 1: Council Minutes - 16 July 2019 ⇩
Authorised by Group Manager
Name: |
Chris Taylor |
Title: |
Governance Support Manager |
Date: |
14 August 2019 |
20 August 2019
TITLE: |
Working Party Updates and Chairpersons' Briefings |
ID: |
A1197721 |
That the report ‘Working Party Updates and Chairpersons' Briefings’ be received.
Natural Resources Working Party (Chair: Cr Justin Blaikie)
The Natural Resources Working Party met on 12 June 2019. The topics for discussion included:
· Wetland Mapping
· National Environment Standards for Plantation Forestry
· Update on Hill Country Erosion Fund Funding Projects, Aspirational Soil Conservation Programme and IBT
· Enhanced Marine Protection for Mimiwhangata
Following discussion, the Natural Resources Working Party provided advice on the following next steps:
· Develop an implementation plan that will set out the next steps for the wetland maps to be produced.
· That the Natural Resources Working Party endorses the approach put forward for Enhanced Marine Protection for Mimiwhangata and requested that a separate agenda item be put to council for consideration.
Te Taitokerau Māori and Council Working Party (Co-chairs: Pita Tipene, Cr Dimery)
The Te Taitokerau Māori and Council Working Party (TTMAC) met on 11 July 2019. The topics for discussion included:
· A report on the Tai Tokerau Māori in Local Government Symposium
· Updates on Local Elections 2019, Annual Plan 2019/20 | Mahere-a-Tau 2019/20, and winners of the Environmental Awards 2019
· The Māori Technical Advisory Group’s (MTAG) work programme, including finalising Mana Whakahono a Rohe before taking it to council, consent processing, and the review of TTMAC as part of a wider governance review to help inform the incoming council in October 2019’s local body elections
· Reports from other working parties: Pest Management Working Party’s April meeting
· Implementing the Water Quality Planning Requirements of the National Policy Statement for Freshwater Management
· Wetland Mapping
· Proposal to control Sydney Golden Wattle
· Nominations for TTMAC membership.
Following discussion, the Te Taitokerau Māori and Council Working Party provided advice on the following next steps:
· Amending MTAG’s review of TTMAC to include a recommendation for a strategic planning workshop that would then drive the working group’s agenda and work programme for the year, and increased cultural capacity training at both Te Ao Māori level and hapū-specific level (made with particular reference to consent-processing and field work).
Audit and Finance Working Party (Chair: Cr David Sinclair)
The Audit and Finance Working Party met on 7 August 2019. The topics for discussion included:
· Review of the 2018/2019 year-end financial items for the August 2019 council agenda.
Following discussion, the Audit and Finance Working Party provided advice on the following next steps:
· Email out Monthly Investment Report from Jonathan Eriksens to Audit and Finance working party Councillors.
· Operating Cost Reserve (OCR) name to be changed to Opex Funding Reserve to save confusion.
· Review Terms of Reference regarding use of reserve funds.
· Discuss with Jonathan Eriksen what the market looks like for the year ahead.
· Workshop – Council agenda best way forward MMH.
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting item: 4.3
20 August 2019
TITLE: |
Council Working Group Update |
ID: |
A1227847 |
That the report ‘Council Working Group Update’ be received.
Kaeo River-Whangaroa Catchment Working Group (Chair: Cr Blaikie)
The Kaeo River-Whangaroa Catchment Working Group met on 5 June 2019. The topics for discussion included:
· Budget 2018/2019 and 2019/2020
· Maintenance Works Update 2018/2019 and Proposed Works 2019/2020
· Long Term Plan Project
Following discussion, the Kaeo River-Whangaroa Catchment Working Group provided advice on the following next steps:
· That a line item be added to the Kaeo budget representing the Whangaroa Catchment Working Group agreement to earmark $50,000 from the surplus budget to address ongoing flooding issues at Matangirau, for a bridge upgrade if required.
· Council to provide Flood Depth Maps to assist the architect to design appropriate floor levels for the new marae.
Awanui River Working Group (Chair: Cr Finlayson)
The Awanui River Working Group met on 12 July 2019. The topics for discussion included:
· Budget 2018/2019 and 2019/2020
· Awanui Scheme Upgrade
· Flood Modelling Update
Following discussion, the Awanui River Working Group provided advice on the following next steps:
· Liaise with affected landowners and deliver correspondence for land acquisition required for scheme upgrade.
· Arrange meeting with iwi representatives regarding cultural monitoring.
·
Taumarere River Working Group (Chair: Cr Blaikie)
The Taumarere River Working Group met on 12 July 2019. The topics for discussion included:
· Revised Proposal for Scheme Works
· Next Long Term Plan 2021–2031
Following discussion, the Taumarere River Working Group provided advice on the following next steps:
· To further investigate, through modelling, alternative options for flood mitigation works on the Waiomio Stream for Kawakawa Township and to be presented at the November meeting of this working group and to include costing.
· Meet with local hapu at marae to discuss Otiria Spillway proposal, including a topic on how we can work together to better improve relationships. Marae hui will be scheduled for mid-September allowing for availability.
Authorised by Group Manager
Name: |
Bruce Howse |
Title: |
Group Manager - Environmental Services |
Date: |
14 August 2019 |
Council Meeting item: 4.4
20 August 2019
TITLE: |
Receipt of Action Sheet
|
ID: |
A1227892 |
From: |
Chris Taylor, Governance Support Manager |
Executive summary/Whakārapopototanga
The purpose of this report is to enable the meeting to receive the current action sheet.
That the action sheet be received.
Attachments/Ngā tapirihanga
Attachment 1: Council Action Sheet - August 2019 ⇩
Authorised by Manager
Name: |
Chris Taylor |
Title: |
Governance Support Manager |
Date: |
12 August 2019 |
Council Meeting item: 5.1
20 August 2019
TITLE: |
Externally Managed Investment Funds: 2018/19 Performance and Proposed Allocation of Gains |
ID: |
A1221565 |
From: |
Simon Crabb, Finance Manager |
Executive summary/Whakarāpopototanga
At 30 June 2019, council has an externally managed investment fund of $60.3M. $57.7M is invested in four externally manged funds, and $2.6M is invested in ANZ term deposits.
All four externally managed funds exceeded their one-year performance objective in 2018/19 (as per the corresponding Statement of Investment Policy and Objectives), and despite a very volatile year the overall portfolio ended up generating annual gains that were $217K greater than budget.
As a result of the economic recovery and the operational savings secured by staff throughout the financial year, it is proposed that the gains in excess of what is required for reinvestment and general funding are transferred into the newly created Operating Costs Reserve (OCR).
The recommendations in this report have been incorporated into the operating result of $0 in the draft annual accounts.
The proposed allocation of the gains generated from each fund in 2018/19 is presented over the page:
The purpose of the OCR is to have sufficient funding set aside in liquid assets should the budgeted revenue stream from council’s managed fund portfolio not eventuate as anticipated. The general funding required from council’s managed fund portfolio in 2019/20 is forecasted to be $2.1M, thus the proposed $1.13M allocation in 18/19 is a start and provides partial assurance. The allocation of additional surpluses to the OCR will be required in the future to fully cover the contribution the managed funds provide to council’s operational expenditure.
Depreciation funding collected and earmarked for future renewal capital expenditure, and the rates collected and earmarked for future debt repayments are recommended to be transferred into the Infrastructure Investment Fund. This approach is proposed to preserve and track such funding until it is required to finance any future capital renewal expenditure or repay borrowings.
1. That the report ‘Externally Managed Investment Funds: 2018/19 Performance and Proposed Allocation of Gains’ by Simon Crabb, Finance Manager and dated 30 July 2019, be received.
2. That $854,205 of Community Investment Fund gains earned in 2018/19 is reinvested into the Community Investment Fund and $34,000 of Community Investment Fund gains earned in 2018/19 is allocated to the Investment and Growth Reserve.
3. That $160,669 of Property Reinvestment Fund gains earned in 2018/19 is reinvested into the Property Reinvestment Fund, and $612,096 of Property Reinvestment Fund gains earned in 2018/19 is allocated to the Operating Costs Reserve.
4. That $519,101 of Infrastructure Investment Fund gains earned in 2018/19 is allocated to the Operating Costs Reserve, and no Infrastructure Investment Fund gains earned in 2018/19 are reinvested back into the Infrastructure Investment Fund.
5. That $66,826 of net depreciation funding and $853,499 of debt repayment funding are transferred into the Infrastructure Investment Fund.
6. That $1,131,196 of funding representing the Operating Costs Reserve is invested into NZ registered bank fixed rate term deposits with rolling maturity profiles ranging from 30 to 180 days.
7. That the Operating Costs Reserve is renamed to the Opex Reserve.
8.
Background/Tuhinga
Community Investment Fund (CIF)
The CIF generated $888,205 of gains in 2018/19, equivalent to a return of 6.3% for the year, exceeding its Statement of Investment Policy and Objectives (SIPO) objective rate of return by 0.7%.
Council’s position when preparing the 2018–28 Long Term Plan was that $34K of the CIF gains would be transferred to the Investment and Growth Reserve (IGR) to fund the inflation adjustment portion of the operational grant paid to Northland Inc., and the remaining gains would be reinvested back into the CIF.
After accounting for the $34K IGR transfer - It is proposed that the remaining actual gains for 2018/19 of $854,205 is reinvested back into the CIF.
Table One summarises the proposed CIF recommendation:
Table Two presents the closing balance of the IGR as $1,249,403, which is greater than budget by $1,013,751. This variance is predominantly due to the costs of four major projects not coming on line yet, and therefore not requiring funding from the reserve yet. It is anticipated that the unspent monies relating to the Twin Coast Cycle Trail, Te Hononga, Hundertwasser Art Centre and the Water Storage and Use project will be required from the IGR in the 2019/20 financial year.
Property Reinvestment Fund Reserve (PRF)
The PRF generated $1,115,066 of gains in 2018/19, equivalent to a return of 7.0% for the year, exceeding its SIPO objective rate of return by 0.3%.
The proposed allocation of the PRF gains is presented in Table Three:
Table Four summarises the PRF (inclusive of the proposed allocations in Table Three):
Infrastructure Investment Fund Reserve (IIF)
The IIF generated $1,216,540 of gains in 2018/19, equivalent to a return of 6.7% for the year, exceeding its SIPO objective rate of return by 1.2%.
The proposed allocation of the 2018/19 IIF gains is presented in Table Five:
To preserve the component of targeted rates collected and earmarked to repay external debt, it is proposed that $853,499 is transferred into the IIF and held until the next infrastructure loan is due for repayment in August 2020. Furthermore, it is recommended that $66,826 of net infrastructure depreciation funding collected and earmarked for future renewal capital works is transferred into the IIF.
Table Six over the page summarises the IIF (inclusive of the proposed gain allocations in Table Five):
Operating Costs Reserve (OCR)
The OCR was established by council resolution to set aside funding to ensure the delivery of work programmes, employment, and ongoing day to day operations should the budgeted revenue stream from council’s Managed Fund portfolio not eventuate as anticipated in the future.
Due to operational savings and an equity market recovery late in the year it is proposed that surplus gains earnt in 2018/19 of $1,131,196 are transferred into the OCR. The split between how much of the $1,131,196 comes from the PRF and how much comes from the IIF is based on the proportion of budgeted gains that were required in the 2018/19 budget as general funding. That is, the PRF contributes 64% and the IIF 36%.
To ensure the cash holdings representing the OCR has the lowest feasible risk setting and is held in appropriate durations to ensure liquidity, it is proposed that the $1,131,196 is invested in six equal sums, as rolling term deposits at a NZ registered trading bank with maturity dates ranging from 30 days to 180 days.
Table Seven summarises the proposed OCR:
To avoid an acronym that could be confused with the Official Cash Rate (OCR), it is recommended the Operating Costs Reserve is renamed to the Opex Reserve.
Considerations
1. 1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Reinvest the gains derived from the CIF and PRF in accordance with the presented recommendations. And Allocate the surplus gains (after deducting the general funding requirement) to the Operating Costs Reserve. |
Build the capital base of the CIF and PRF to protect their future spending power. Establishing an investment representing the Operating Costs Reserve promotes assurance and stability over the delivery of council’s mission, work programmes, employment, and day to day operations. |
There are no managed fund gains available to fund additional work programmes or projects.
The returns associated with term deposits are typically lower than the returns generated if the funding remained in managed funds. |
2. |
Reinvest the gains derived from the CIF, PRF in accordance with the presented recommendations.
And
Do not allocate the surplus gains to the Operating Costs Reserve.
|
Build the capital base of the CIF and PRF to protect their future spending power.
Release funding that can be directed to fund additional work programmes or projects.
|
There are no managed fund gains available to fund additional work programmes or projects.
Remain at risk to a volatile economy and its implications on council’s managed fund returns and the detrimental impact on a funding source relied upon to fund work programmes. |
3. |
Do not reinvest any gains derived from the CIF and PRF.
And
Do not allocate the surplus gains to the Operating Costs Reserve. |
Provide potential funding for additional work programmes/or projects. |
The future spending power of the CIF and PRF is reduced and at risk of becoming eroded by inflation. Remain at risk to a volatile economy and its implications on council’s managed fund returns and detrimental impact on a funding source relied upon to fund work programmes. |
The staff’s recommended option is 1.
2. Significance and engagement
In relation to section 79 of the Local Government Act 2002, this decision is considered to be of low significance because it is part of council’s day-to-day activities and is in accordance with the approved Treasury Management Policy.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with council’s Treasury Management Policy, and the 2018–28 Long Term Plan, both of which were approved in accordance with council’s decision-making requirements of sections 76–82 of the Local Government Act 2002. The activities detailed in this report are also in accordance with council’s Operating Costs Reserve Policy.
4. Financial implications
Investment strategies carry different risk profiles and are subject to different return volatilities. The returns from managed funds can fluctuate over a given time and period and historical returns do not necessarily form the basis for forecasted returns.
Maintaining an Operating Costs Reserve that can be called upon if council’s Managed Fund portfolio does not generate its budgeted revenue stream provides financial stability by ensuring there is funding available, in liquid and relative risk-free assets, to continue the delivery of the planned work programmes.
Being a purely administrative matter, Community Views, Māori Impact Statement, and Implementation Issues are not applicable.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
08 August 2019 |
Council Meeting item: 5.2
20 August 2019
TITLE: |
Resource Enterprises Limited (REL) - Loan Impairment |
ID: |
A1221898 |
From: |
Simon Crabb, Finance Manager |
Executive summary/Whakarāpopototanga
As part of the Annual reporting process, NZ Accounting standards prescribe that council review its loan assets and make an assessment as to their collectability.
If there is evidence that the probable recoverable amount of a loan is lower than the actual loan balance, then an adjustment is required. This adjustment is called an impairment loss.
At 30 June 2019, the balance (principal and accrued interest) of the loan issued to Resource Enterprises Limited (REL) is $819,933. This amount is due for repayment on or before 5 March 2020.
When assessing the probable recoverable amount of the REL loan, the following evidence was taken into consideration at 30 June 2019:
· At the time of writing REL has not paid their last two quarterly interest payments ($14,348.81 due on 5 March 2019 and $14,348.81 due on 5 June 2019)
· The REL operation at Marsden Point has not traded since May 2017 due to, among other things, the adverse impact of a significant rise in NZ log prices.
· Council is the second secured party for the REL loan, and the current market value of the REL assets is estimated to be less than the amount owed to the first secured party.
For completeness, on 30 July 2019 REL had their lease cancelled and possession of the site returned to their landlord (Marsden Maritime Holdings Limited). Technically this development occurred outside of the 2018/19 reporting period.
The probable recoverable amount of the REL loan was assessed as NIL. Thus, it is proposed that an impairment loss of $819,933 is recorded in the 2018/19 accounts.
The impairment loss reduces the carrying amount of the REL loan to nil in council’s Balance Sheet, and reduces council’s 2018/19 surplus by $819,933.
By recognising the impairment loss in 2018/19, council will avoid having to record an unbudgeted expense in 2019/20 should REL default in repaying the loan on 5 March 2020.
Recording an impairment loss adjustment does not discharge REL of their liability to fully repay the loan. Should REL repay the loan in full and as currently scheduled, the impairment loss will be reversed in 2019/20 and the ensuing surplus will become available to council.
The recommendation in this report has been incorporated into the $0 operating result in the draft annual accounts.
1. That the report ‘Resource Enterprises Limited (REL) - Loan Impairment’ by Simon Crabb, Finance Manager and dated 30 July 2019, be received.
2. That an impairment loss of $819,933 is recorded in the 2018/19 accounts to reflect that the loan to Resource Enterprises Limited has been assessed as unrecoverable.
3.
Background/Tuhinga
In October 2014, council agreed to provide a five-year loan of $750,000 from the Investment and Growth Reserve (IGR) to REL to assist with the establishment of a sawmill operation at Marsden Point. The loan was drawn down by REL on 5 March 2015.
In the first two years, REL capitalised an agreed $69,933 of interest. This amount was added to the principal amount of $750,000 creating a loan balance of $819,933 due for repayment on or before 5 March 2020. In accounting terminology, the loan balance of $819,933 is referred to as its “carrying amount”.
Current NZ accounting standard PBE-IPSAS 29 requires council to assess, at the end of each financial year, whether there is any objective evidence that the recoverable amount of a loan is probably less than its carrying amount. If such evidence exists, then an adjustment is required to reduce the carrying amount of the loan down to the recoverable amount – this adjustment is called an impairment loss.
As the REL operation at Marsden Point has not been trading since May 2017 due to, among other things, the adverse impact of a significant rise in the price of NZ logs, along with the fact that REL have not paid their last two interest payments; and because council is only the second secured party for the REL loan (noting the current market value of REL assets is estimated to be less than the amount owed to the first secured party); and REL had their lease cancelled on 30 July 2019 (although this development occurred is outside of the 2018/19 reporting period) - the probable recoverable amount of the REL loan has been assessed as NIL.
It is proposed that an impairment loss of $819,933 is booked in the 2018/19 accounts reducing the carrying amount of the REL loan to nil in council’s Balance Sheet and reducing the operating surplus by $819,333 in this year’s profit and loss.
Booking an impairment loss adjustment does not discharge REL of their liability to fully repay the loan principal and related interest payments. Rather, it is an offsetting entry held in council’s books to ensure the carrying amount of the loan presented in the annual accounts reflects the expected recoverable amount.
Should REL repay the loan in full, the impairment loss will be reversed in 2019/20 and the ensuing operating surplus will become available to council in 2019/20. The cash received from REL will be transferred to the IGR.
NZ accounting standard PBE-IPSAS 30 requires council to disclose the impairment loss in the notes of the annual financial statements to enable readers to evaluate the nature and extent of the risks arising from its loan assets. Specifically, council is required to disclose the asset class (not the specific loan) that has been impaired, the amount of the impairment, the factors considered in determining the impairment, and a description of any collateral held for the impaired loan.
Considerations
1. 1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Recognise an impairment loss of $819,933 in the 2018/19 Financial Statements as it is anticipated that council will not recover any of the outstanding loan balance owing from Resource Enterprises Limited. |
Comply with NZ Generally Accepted Accounting Principles. Recognise the loss in 2018/19 when it can be accommodated within council’s operating surplus. Avoid an unbudgeted cost in 2019/20 should REL default on payment. |
The impairment loss reduces the surplus in the Draft Financial Statements by $819,933, thereby removing the opportunity to allocate $819,933 to other priorities.
|
2 |
Do not recognise an impairment loss of $819,933 in the 2018/19 Financial Statements. |
The impairment loss will not be booked in the year end accounts and the surplus in the Draft Financial Statements will increase by $819,933, providing an opportunity to allocate $819,933 to other priorities. |
Not recognising the impairment loss is contrary to NZ Generally Accepted Accounting Principles and as such may attract comment in the 2018/19 auditor’s report. Should REL default in repaying the loan balance next year, an unbudgeted write off expense will be recorded in the 2019/20 financial accounts.
|
The staff’s recommended option is 1.
2. Significance and engagement
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 because although it involves a transaction exceeding $750,000, it does not trigger any of the other thresholds contained in council’s Significance and Engagement Policy.
3. Policy, risk management and legislative compliance
The recommendation is consistent with council’s risk management principles as it explicitly addresses the uncertainty associated with the collectability of an outstanding loan. Furthermore, the recommendation is consistent with NZ Generally Accepted Accounting Principles in such cases
4. Financial implications
Although the recommendation reduces council’s operating surplus in the 2018/19 financial year, it avoids having to recognise an unbudgeted expense in 2019/20 should the REL loan need be written off. If the REL loan is not repaid in 2019/20 the cash balance of the IGR will be adversely affected and there may not be sufficient funds to meet already committed project expenditure, depending on the timing of various project funding claims. A separate and future council decision may need to be taken on how to manage this situation should it eventuate.
Being a purely administrative matter, Community Views, Māori Impact Statement, and Implementation Issues are not applicable.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
08 August 2019 |
Council Meeting item: 5.3
20 August 2019
TITLE: |
Request for Approval to Carry Forward Operational Budget from the 2018/19 Financial Year into the 2019/20 Financial Year |
ID: |
A1220587 |
From: |
Vincent McColl, Financial Accountant and Simon Crabb, Finance Manager |
Executive summary/Whakarāpopototanga
Unspent 2018/19 operational budget of $72,070 is proposed to be carried forward into the 2019/20 financial year to fund the completion of operational projects. The recommendations in this report have been incorporated into the draft operating result of $0.
1. That the report ‘Request for Approval to Carry Forward Operational Budget from the 2018/19 Financial Year into the 2019/20 Financial Year’ by Vincent McColl, Financial Accountant and Simon Crabb, Finance Manager and dated 31 July 2019, be received.
2. That council approves the operational expenditure carry forwards from the 2018/19 financial year into the 2019/20 financial year of:
a. $16,900 for iwi environmental management plans;
b. $10,170 for the Water Street mural;
c. $35,000 for Freshwater NPS implementation; and
d. $10,000 for the digital asset management project.
Background/Tuhinga
As with previous years, carry forwards of unspent 2018/19 operational budgets are required to enable the completion of the various operational projects in the 2019/20 financial year.
Following the 30 June 2019 year-end senior management review, four projects totalling $72,070 were identified as requiring unspent 2018/19 operational budgets to be carried forward as funding in 2019/20.
The total of $72,070 has been incorporated into the draft operating result. The projects requiring this funding are explained over the page:
Description |
2018/19 Spent $ |
2018/19 Budget $ |
2018/19 Budget Unspent $ |
Amount to Carry forward $ |
Iwi environmental management plans |
59 |
23,900 |
23,841 |
16,900 |
Water Street mural |
59,175 |
79,933 |
20,758 |
10,170 |
Freshwater NPS implementation |
4,785 |
50,000 |
45,215 |
35,000 |
Digital asset management project |
12,487 |
35,000 |
22,513 |
10,000 |
· $16,900 for iwi environmental management plans. Nga Tirairaka O Ngati Hine Trust, Roma Marae, and Te Rora Whatu Ora Trust have iwi management plans that are in various stages of milestone delivery. Delays due to resourcing in both council and grant recipients have meant that these milestone payments are delayed until 2019/20.
· $10,170 for the Water Street mural which is in progress and is estimated to take a further four to six weeks. Payments have been made upon artist engagement and the balance is to be paid on completion of mural expected late August.
· $35,000 for the Freshwater NPS implementation which was delayed due to availability of the contractor. This project includes assessment and modelling in relation to setting lake water quality objectives and limits, methods for meeting objectives, and prioritising non-regulatory initiatives in lake catchments.
· $10,000 for the digital asset management project which was set aside as an operational saving. A digital asset management solution is imperative as the volume of digital assets, photos for example, grows and presents issues both around storage and accessibility. Proposing carrying forward the 2018/19 budget to allow the project to proceed.
Considerations
1. 1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Approve carry forward of all requested unspent operational budgets |
Allows the completion of 2018/19 projects. |
Reduces retained earnings though at budgeted levels. |
2 |
Approve no unspent operational budget carry forwards |
Retains more surplus in the 2018/19 financial year. |
Projects from the 2018/19 financial year do not get finished or 2019/20 programmes must be deferred to allow for 2018/19 work already contracted. |
3 |
Approve some of the unspent operational budget carry forwards |
Some projects will go ahead. |
Some projects will not go ahead. Some of 2019/20 programmes might be deferred to allow for 2018/19 work already contracted. |
The staff’s recommended option is option 1 to maintain all contractual work programmes.
2. Significance and engagement
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 because it is part of council’s day to day activities.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with the 2018–28 Long Term Plan, which was approved in accordance with council’s decision making requirements of sections 76–82 of the Local Government Act 2002.
Other considerations
4. Financial implications
In arriving at the draft operating result of $0, $72,070 has been incorporated to represent the proposed operational carry forwards.
Being a purely administrative matter, community views, implementation issues and Māori impact statement are not applicable.
Attachments/Ngā tapirihanga
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
08 August 2019 |
Council Meeting item: 5.4
20 August 2019
TITLE: |
Request for Approval to Carry Forward Capital Expenditure Budget from the 2018/19 Financial Year into the 2019/20 Financial Year |
ID: |
A1220677 |
From: |
Vincent McColl, Financial Accountant |
Executive summary/Whakarāpopototanga
The purpose of this report is to seek council approval to carry forward $1.1M of unspent capital budget from the 2018/19 financial year into the 2019/20 financial year. Of this $550,000 is targeted rate funded and $298,082 is Property Reinvestment Fund (PRF) funded.
1. That the report ‘Request for Approval to Carry Forward Capital Expenditure Budget from the 2018/19 Financial Year into the 2019/20 Financial Year’ by Vincent McColl, Financial Accountant and dated 31 July 2019, be received.
2. That council approves the carry forward of $1.1M capital expenditure budget from the 2018/19 financial year into the 2019/20 financial year.
Background/Tuhinga
Staff have carried out a final review on any ongoing capital projects and associated Capital Expenditure (Capex) carry forwards for council consideration and approval.
As part of the budget process finance staff ensure that all Capex is adequately funded via depreciation over the expected useful life of each asset class.
Following the 30 June 2019 year-end senior management review, which was based upon the actual Capex incurred and the review of ongoing requirements, a total of $1,098,212 is proposed to be carried forward into 2019/20. This is made up of general capex of $250,130, targeted rates funded capex of $550,000, and PRF funded capex of $298,082.
2018/19 Actual and Budgeted Capital Expenditure
The revised capital expenditure budget for 2018/19 is $6,930,723. The total actual capital expenditure incurred in 2018/19 is $6,865,575, resulting in an underspend of $65,148. Of this $2,827,004 relates to unbudgeted commercial property transactions that are funded from the Property Reinvestment Fund. For a breakdown of this please refer to Attachment One.
2019/20 Budgeted Capital Expenditure and Proposed Carry Forwards
The original 2019/20 capital expenditure budget is $16,735,201, and by adding the total requested 2018/19 carry forwards of $1,098,212, this budget will increase to $17,833,413. The detail of the original 2019/20 capital expenditure programme and the proposed capital carry forwards are presented in Attachment Two.
Explanations to proposed capital carry forward expenditure for 2018/19
Land and Biodiversity: Proposed capital expenditure carry forward $580,000
Approval of $580,000 capital carry forward expenditure is sought:
· $30,000 towards the Flyger Road nursery expansion. The work is expected to be completed in the 2019/20 financial year and is being funded from money unspent in the unmanned terrain vehicle capex.
· $550,000 for the Woods Road floodwall. This is funded by the flood infrastructure targeted rate and is expected to be completed by September.
CEO and Property: Proposed capital expenditure carry forward $518,212
Approval of $518,212 capital carry forward expenditure is sought:
· $220,130 for the Water Street building reconfiguration which was delayed in order to save drawing down from the short-term fund while the externally managed funds were performing poorly. A carry forward is requested to complete the work.
· $298,082 for the Kaipara Service Centre. This work has not gone ahead in 2018/19 as initially anticipated and is requested to be added to the 2019/20 budget for this project. This is to be funded from the PRF.
$300,000 of rating software capital expenditure was opted not to be carried forward as subsequent to the carry forward being approved in prior financial years the IT environment has changed and the cost will now be recognised as operational expenditure instead.
Considerations
Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Approve carry forward of all requested capital carry forwards |
Allows the completion of the 2018/19 capital programme. |
Reduces retained earnings at budgeted levels. |
2 |
Approve none of the Capex carry forwards |
Retains more earnings for other capital projects. |
Projects underway or delayed won’t get the required funding to be completed. |
3 |
Approve some of the Capex carry forwards |
Some of the capital projects get to be completed. |
Some of the capital projects don’t get completed. |
The staff’s recommended option is Option 1. This maintains the unspent capital programme budget from 2018/19 allowing projects that are underway and delayed to be completed.
2. Significance and engagement
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 because it is part of council’s day to day activities.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with the 2018–28 Long Term Plan, which was approved in accordance with council’s decision making requirements of sections 76–82 of the Local Government Act 2002.
Other considerations
4. Financial implications
$1,098,212 of capital carried forward from the 2018/19 financial year to the 2019/20 financial year, with $550,000 of it being funded from targeted rates and $298,082 being funded from the PRF.
Being a purely administrative matter, community views, implementation issues and Māori impact statement are not applicable.
Attachment 1: 2018/19 Actual and Budgeted Capital Expenditure ⇩
Attachment 2: 2019/20 Budgeted Capital Expenditure and Proposed Carry Forwards ⇩
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
14 August 2019 |
20 August 2019
TITLE: |
Special Reserves at 30 June 2019 |
ID: |
A1220735 |
From: |
Vincent McColl, Financial Accountant |
Executive summary/Whakarāpopototanga
At 30 June 2019, council has $30.9M of special reserves set aside to cover expenditure on specific projects and work programmes.
This report provides a breakdown of the special reserves held by council, including their purpose and balance as at 30 June 2019.
That the report ‘Special Reserves at 30 June 2019’ by Vincent McColl, Financial Accountant and dated 31 July 2019, be received.
Background/Tuhinga
The equity in council’s balance sheet represents the communities’ interest in council and is measured by the value of total assets less total liabilities. Equity is classified into a number of general and special reserves to enable a clearer identification of the specified uses for which various funds have been assigned.
A general reserve does not have a specific purpose, whereas a special reserve holds funds that are set aside to cover expenditure on specific projects. In addition, special reserves may facilitate the funding of works of an inter-generational nature, capital expenditure in particular, over the most appropriate time period.
The special reserves and their respective balances (surplus/(deficit)) in place at the end of the 2018/19 financial year are as follows:
Land Management Reserve |
267,060 |
Awanui River Reserve |
(841,807) |
Kaihu River Reserve |
32,365 |
Whangaroa Kaeo Rivers Reserve |
175,643 |
Whangārei Urban Rivers Reserve |
(9,078,138) |
Infrastructure Facilities Reserve (Marsden Point Rail Link) |
(2,532,452) |
Property Reinvestment Fund Reserve |
16,749,497 |
Equalisation Reserve |
1,463,086 |
Hātea River Reserve |
222,331 |
Investment and Growth Reserve |
1,249,404 |
Approved Carry Forwards Reserve |
72,070 |
Kerikeri-Waipapa Rivers Reserve |
455,491 |
Infrastructure Investment Fund Reserve |
20,914,957 |
Whangārei Transport Reserve |
(74,129) |
Emergency Services Reserve |
57,769 |
LIDAR Project Reserve |
366,690 |
Flood Infrastructure Reserve |
(537,068) |
Kaeo River FIR Reserve |
20,811 |
Awanui River FIR Reserve |
(133,858) |
Whangārei River FIR Reserve |
55,266 |
Far North Transport Reserve |
152,453 |
Capital Subsidy Reserve (Ticketing System) |
77,049 |
Operating Costs Reserve |
1,131,196 |
Regional Sporting Facilities Reserve |
621,192 |
Total Special Reserves |
30,886,679 |
Some special reserves earn, or are charged interest depending on their closing balance being in deficit or surplus. Our current protocol is for reserves in surplus of $50,000 or greater earn interest at 5% (as budgeted in the Long Term Plan (LTP)). Reserves in deficit are either charged at the corresponding external borrowing rate or at the internal rate of 7.0% (as budgeted in the LTP).
A description of the purpose of each reserve, the transfers from and/or to the reserve for the year, and the closing balance of each reserve as at 30 June 2019 is provided below.
Land Management Reserve
The Land Management Reserve was created to allow council to set aside unutilised Land Management rates for the purpose of funding projects in future years. In addition, the Land Management Reserve can be utilised to fund emergency events such as remedial storm expenditure on a case by case basis, thereby reducing the need for borrowing in the event of an emergency.
The operational reserve movements of ($96,954) from the Land Management Reserve constitute funding contributions towards Freshwater Improvement Fund projects. The capital reserve movement relate to funding for the Awanui Emergency Preparedness project. This produces a closing balance of $267,060.
In 2019/20 $136,802 is expected to come from this reserve for Freshwater Improvement Fund projects, leaving an estimated reserve balance at 30 June 2020 of $136,338.
Awanui River Reserve
The Awanui River Reserve was created to hold any targeted Awanui River Management rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of the Awanui River Flood Management Scheme.
In the 2018/19 financial year the Awanui River Management project had an operating surplus of $43,562. Capital expenditure of $150,000 was incurred with $95,963 of depreciation funding transferred from the Infrastructure Investment Fund (IIF) producing a closing book and cash reserve deficit of ($745,843).
Awanui Flood Infrastructure Rate (FIR) Reserve
The Awanui FIR Reserve was created to hold any targeted Awanui FIR rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of the Awanui River Flood Management Scheme. The Awanui FIR reserve incorporates 30% of any related capital works with the other 70% being attributed to the Flood Infrastructure Rate reserve.
In the 2018/19 financial year the Awanui FIR project had an operating surplus of $316,116. Capital expenditure of $449,974 was incurred producing a closing reserve deficit of ($133,858).
Whangaroa Kaeo Rivers Reserve
The Whangaroa Kaeo Rivers Reserve was created to hold any targeted Whangaroa Kaeo Rivers Management rates collected and unspent in any given year to cover any future funding shortfalls of river works required as part of the Whangaroa Kaeo Rivers Flood Management scheme.
In the 2018/19 financial year there was an operating surplus of $37,826 resulting in a closing reserve balance of $175,643. Unused accumulated depreciation of $20,755 is held in the IIF resulting in a closing cash balance of $196,398.
Kaeo Flood Infrastructure Rate (FIR) Reserve
The Kaeo FIR Reserve was created to hold any targeted Kaeo FIR rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of the Kaeo River Flood Management Scheme. The Kaeo FIR reserve incorporates 30% of any related capital works with the other 70% being attributed to the Flood Infrastructure Rate reserve.
In the 2018/19 financial year the Kaeo FIR project had an operating surplus of $20,811 producing a closing reserve surplus of $20,811.
Whangārei Urban Rivers Reserve
The Whangārei Urban Rivers Reserve was created in the 2011/12 year to hold any targeted Whangārei Urban Rivers Management rates collected and unspent in any given year to cover any future funding shortfalls of river works required as part of the Whangārei urban rivers management scheme
The operating surplus of $405,938 has been transferred to the reserve. This produces a deficit/overdrawn balance of ($9,078.138). Adding the unused accumulated depreciation held in the IIF gives a cash balance of ($8,892,300).
Whangārei FIR Reserve
The Whangārei Flood Infrastructure Rate (FIR) Reserve was created to hold any targeted Whangārei FIR rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of the Whangārei River Flood Management Scheme. The Whangārei FIR reserve incorporates 30% of any related capital works with the other 70% being attributed to the Flood Infrastructure Rate reserve.
In the 2018/19 financial year the Whangārei FIR project had an operating surplus of $60,007 and capital expenditure of $4,741 producing a closing reserve surplus of $55,266.
Infrastructure Investment Fund (IIF) Reserve
The IIF Reserve was established to stabilise the impact of irregular large infrastructure projects on council’s income and capital requirements. It will help to spread the costs of such projects. The fund is also intended to provide more flexibility around when such large capital intensive projects can commence.
The balance of the reserve reflects the balance of funds held in the IIF. During the 2018/19 year a bequest of $548,786 received by NEST was paid to council. These funds were deposited into the IIF Reserve. No gains are proposed to be reinvested this financial year. The IIF Reserve holds $206,593 of unutilised accumulated depreciation and $1,922,340 of capital repayments collected and held to repay external borrowings.
Kaihu River Reserve
The Kaihu River Reserve was created to hold any targeted Kaihu River Management rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of the Kaihu River Flood Management Scheme.
In the 2018/19 financial year there was an operating deficit of $38,500 transferred to the reserve producing a closing balance of $32,365.
Kerikeri–Waipapa Rivers Reserve
The Kerikeri–Waipapa Rivers Reserve is set up to hold any targeted Kerikeri-Waipapa rates collected and unspent in any given year to cover any future funding shortfalls of river works required as part of the flood risk reduction project for the Kerikeri-Waipapa area.
The Kerikeri–Waipapa targeted rate was discontinued in 2018/19 resulting in an operating surplus of ($2,293) which has been transferred from the reserve producing a closing balance of $455,491. This surplus reserve is planned to be utilised on the flood mitigation for the Waipapa industrial estate and Waitotara Drive stopbanking work commencing in 2019/20.
Flood Infrastructure Rate (FIR) Reserve
The FIR Reserve was created to hold any targeted regional FIR rates collected and unspent in any given year to cover any future funding shortfalls for river works required as part of Northland Flood Infrastructure Schemes. The FIR reserve incorporates 70% of any related capital works with the other 30% being attributed to the Awanui FIR, Whangārei FIR, or Kaeo FIR reserves depending on the particular project.
In the 2018/19 financial year the FIR reserve had an operating surplus of $523,933 and $1,061,001 of capital expenditure producing a closing reserve deficit of $537,068.
Infrastructure Facilities Reserve
The Infrastructure Facilities Reserve was created to set aside any targeted Regional Infrastructure rates collected and not fully utilised in any given year for the purpose of funding future infrastructure projects. This reserve consists of the cost of capital, holding costs, and council’s share of the net costs for the designation asset associated with the Marsden Point Rail Link (MPRL) Joint Venture project.
In 2018/19 $281,710 has been transferred into the reserve producing a closing balance of ($2,532,452) overdrawn.
Recreational Facilities Reserve
During the 2018/19 year council paid a grant of $27,518 towards Toll Stadium lighting upgrades to clear off the surplus recreational facilities rates received.
Property Reinvestment Fund Reserve
The Property Reinvestment Fund (PRF) Reserve was created to enable proceeds from property sales to be set aside for reinvestment at a future date. This reserve represents the balance investments held in the PRF.
During 2018/19 this reserve recognised $2,034,363 of property sale proceeds, $2,827,004 of property purchases, and $1,062,447 of commercial developments. In addition, it is proposed that $160,669 of PRF gains are reinvested generating a closing balance of $16,749,498.
Equalisation Reserve
The Equalisation Reserve was created to set aside council’s forestry net income arising in any harvesting year. This reserve is intended to provide future funding of council’s general activities by allowing council to use these funds for any council activity to smooth future rating increases. It is further intended that this fund be used to fund the cost of forestry operations in non-harvesting years.
A total of $524,689 net forestry income was transferred to the equalisation fund and funding of $15,922 was utilised for Rogan case costs. These movements resulted in a closing balance of $1,463,086.
Hātea River Reserve
The Hātea River Reserve was created to set aside a component of the council’s Services Rate ($1.50+GST) specifically levied across the Whangārei constituency to ensure funding is immediately available in the event dredging of the Hātea River is required.
This year there was an operating surplus of $46,714 transferred to the reserve producing a closing reserve balance of $222,331.
Investment and Growth Reserve
The Northland Regional Council Investment and Growth Reserve was established in 2011/12. The reserve was created to set aside investment income to fund activities and projects that contribute towards the economic well-being of Northland.
Approved Carry Forwards Reserve
The Approved Carry Forwards Reserve was set up to record operational projects for council that have not been completed during the current year and need to be carried forward to the next financial year. This is the subject of agenda Item 5.3. At 30 June 2019 the closing balance of the projects proposed to be carried forward is $72,070 (excluding LIDAR which has been carried forward into its own reserve).
Kaitāia Bus Service Reserve
The Kaitāia Bus Service Reserve was created to hold any targeted Kaitāia Transport rates collected and unspent in any given year to cover any future funding shortfalls of Kaitāia bus service. This rate has been replaced with the Far North Transport rate.
The operating deficit of $38,412 has been transferred to the reserve utilising the remaining balance of this reserve.
Whangārei Transport Reserve
The Whangārei Transport Reserve was created to hold any targeted Whangārei Transport rates collected and unspent in any given year to cover any future funding shortfalls in the Whangārei bus and total mobility programmes.
In 2018/19 Whangārei Bus made a surplus of $44,461 and Total Mobility made a surplus of $25,980. This resulted in $70,441 being transferred to the reserve making the reserve balance a deficit of $74,129. The positive reserve movement is predominately due to the Whangārei Rural Trials not going ahead in 2018/19 as planned. The remaining deficit will be taken into account when setting the 2020/21 Whangārei Transport rates.
Emergency Services Reserve
The Emergency Services Reserve was created to hold any targeted Emergency Services rates collected and unspent in any given year to ensure all collected rates go to emergency services in the future.
The closing balance of $57,769 represents targeted rates collected (and adjusted for non-collection) and not allocated to date.
Mid North Bus Reserve
The Mid North Bus Service Reserve was created to hold any targeted Mid North Transport rates collected and unspent in any given year to cover any future funding shortfalls of the Mid North bus service. This rate has been replaced with the Far North Transport rate
$87,768 was transferred from the reserve during 2018/19 fully utilising any residual reserve balance.
Far North Transport Reserve
The Far North Bus Service Reserve was created to hold any targeted Far North Transport rates collected and unspent in any given year to cover any future funding shortfalls of the Mid North Link and Far North Link projects. This rate replaces the Mid North Transport rate and Kaitāia Bus Service rate.
$152,453 was transferred to the reserve during 2018/19.
During 2018/19 two projects were not completed. Far North and Mid North Link marketing and promotion projects totalling $4,770 are expected to be completed in the 2019/20 financial year.
LIDAR Reserve
The LIDAR Reserve was created to hold any LIDAR contributions as this project is run over a number of years and includes funding from seven parties.
The reserve balance at 30 June 2019 is $366,690, consisting of $316,690 of council funding and $50,000 of Land Information New Zealand (LINZ) funding.
Regional Sporting Facilities Reserve
The Regional Sporting Facilities Reserve was established to set aside any targeted Regional Sporting Facilities rates collected and not fully utilised in any given year for the purpose of funding sporting facilities across Northland.
During the 2018/19 year $621,192 of unspent rates were transferred to reserve.
Operational Costs Reserve
The Operating Costs Reserve was established in June 2019. The purpose of the Operating Costs Reserve (and cash holdings it represents) is to ensure that the portion of annual operating costs in any financial year that is intended to be funded from managed fund gains is guaranteed and not exposed to market volatility.
Surplus gains of $1,131,196 earned on council’s externally managed fund portfolio in the 2018/19 financial year was transferred to the reserve.
Capital Subsidy Reserve
There is $77,049 of subsidy received held in this reserve to partially offset future depreciation costs associated with the Regional Integrated Ticketing Information System (RITIS).
Attachments/Ngā tapirihanga
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
14 August 2019 |
Council Meeting item: 5.6
20 August 2019
TITLE: |
Regional Rates Collection - 2018/19 |
ID: |
A1222450 |
From: |
Simon Crabb, Finance Manager |
Executive summary/Whakarāpopototanga
The three district councils administer the collection of the regional council rates on council’s behalf.
The table below summarises the level of rates collected in 2018/19, the total outstanding rate balances, and the provisions held to offset the prospect of non-collection of the outstanding rates as at 30 June 2019.
That the report ‘Regional Rates Collection - 2018/19’ by Simon Crabb, Finance Manager and dated 31 July 2019, be received.
Background/Tuhinga
Confirmation of council’s rates transactions and outstanding rate balances for 2018/19 are provided by each district council as part of the year-end Annual Report process.
As at 30 June 2019, council’s total outstanding rates in its year-end accounts is $2,877,236. This is a decrease of $144,971 from last year’s balance of $3,022,207.
Current Year Rates
In 2018/19 council received $29,650,373 of the annual rates strike, equivalent to 91.9% (2017/18: 92.2%). The three-year average current year rates collection rate has slightly reduced to 92.3% (2017/18: 92.5%).
Attachment 1 is the 2018/19 Rates Reconciliation Statement. This reconciliation summarises council’s rate strike, cash received, remissions, write-offs, penalties charged, and includes the Māori Freehold Land impairment adjustment that are all accounted for when calculating council’s annual rates revenue and the total outstanding rates in our year-end accounts.
Graph 1 presents the proportion of current year rates that has been collected by each district council over the past six years.
Rate Arrears
Outstanding rate arrears (including penalty arrears) collected in 2018/19 totalled $724,908, equivalent to a collection rate of 15.7% (2017/18: 17.3%) of the opening outstanding rate balance excluding the Māori Freehold Land impairment adjustments. The three-year average rate arrears collection rate has reduced to 17.8% (2017/18 20.70%).
Graph 2 presents the proportion of outstanding rate arrears that has been collected by each district council over the past six years.
Māori Freehold Land Rating impairment required under IPSAS 23
NZ Accounting Standard IPSAS 23 governs the recognition and measurement of rating revenue and this standard stipulates that revenue is recognised when it is probable that council is going to receive payment.
Due to the regional council’s historical experience of non-payment of rates on Māori Freehold Land, it was considered necessary (and confirmed as necessary by Deloitte) that the 2018/19 rates revenue struck on Far North Māori Freehold Land (MFL) should be reduced and a corresponding reduction made to the provision for doubtful debts expense.
The amount of the MFL adjustment for 2018/19 is $561,198, which is significantly larger in dollar terms than last year’s adjustment of $377,086 due to council’s rates strike increasing by an average of 29% in 2018/19. However, it is largely in line with last year’s collection rate of MFL current year rates of approximately 30%.
$667K of the MFL rates written off was written off against previously created provisions. The write-off of MFL rates in the Far North is administered and processed by the Far North District Council (FNDC). The large increase in write-offs this year is due to FNDC having IT issues last year that prevented the extraction of accurate bulk data from their rating software. This issue restricted the level of statute barred rates (past six years) that were written off last year. This year’s write-off has been a catch-up year with all outstanding statute barred rates now written off and up to date. Going forward this process will be performed annually.
The total rates outstanding at 30 June 2019 on Māori Freehold Land in the Far North District, disregarding cumulative impairments, is $2,660,182.
Provision for Rate Doubtful Debts
The rationale for determining the level of Provision for Rate Doubtful Debts was modified slightly in 2018/19 as more detail and precision was provided from the district councils. This enabled the provision held for outstanding rate penalties to be based on actual non-collection rates as opposed to the longstanding method of applying a 100% provision. This change is the main reason for the provision percentages dropping for the Whangarei and Kaipara Districts.
The Far North provision has the same provision percentage as last year of 87%, but may be a little on the low side considering the average three-year collection rate of Far North rate arrears is only 11%. The relevant 2019/20 and draft 2020/21 budgets have been increased in an endeavour to raise the level of the Far North provision.
Attachments/Ngā tapirihanga
Attachment 1: Rates Reconciliation 2018/19 ⇩
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
14 August 2019 |
Council Meeting item: 5.7
20 August 2019
TITLE: |
Draft Financial Result to 30 June 2019 |
ID: |
A1221361 |
From: |
Vincent McColl, Financial Accountant |
Executive summary/Whakarāpopototanga
The purpose of this report is to present the draft financial result for the year ending 30 June 2019 for councillors’ information. The draft result of $0 is provisional. There may be further adjustments and amendments as the year-end reconciliations are reviewed by senior staff and the statutory financial statements (including notes) for the draft Annual Report are prepared. There may also be amendments arising from council decisions. Deloitte is scheduled to commence their three-week on-site audit on 19 August 2019.
This result excludes $2.2M of non-cash revaluation gains to investment properties, forestry assets and other financial assets. Taking these non-cash revaluation gains into account and the movements in the special reserves, the statutory financial statements within the annual report will present a total Comprehensive Revenue and Expense of approximately $5.7M.
For the Draft Operating Result for Council refer to Attachment 1.
That the report ‘Draft Financial Result to 30 June 2019’ by Vincent McColl, Financial Accountant and dated 31 July 2019, be received.
Background/Tuhinga
Financial results
The provisional Net Surplus after Transfers to and from Special Reserves and excluding non-cash items is $0 compared to a budgeted surplus of $29K.
The main variances to the revised budget presented in Attachment 1 are explained below:
Revenue
· User Fees and Sundry has a favourable variance (better than budget) of $191K or 4% which is due to higher than budgeted consent applications and transfer fees of $82K, and consent monitoring fees of $227K. This is partially offset by lower than budgeted bus fare revenue of ($177K).
· Grants and Subsidies has an unfavourable balance (worse than budget) of ($110K) or (2%). This variance is predominantly due to lower than budgeted NZTA and WDC subsidies due to delayed work (Whangārei rural trials and Whangārei terminus upgrades) of ($481K). This is partially offset by unbudgeted grants for the Hill Country Boost project of $364K.
· Interest Income has an unfavourable balance (worse than budget) of ($40K) or (6%). This variance is predominantly due to managing cashflow tightly leading to lower bank interest earned but higher Short Term Fund gains.
· Other Revenue has an unfavourable variance (worse than budget) of ($177K) or (2%) which is due to lower than budgeted Marsden Maritime Holdings Limited dividends of ($110K), lower than budgeted commercial property rent of ($43K) (2% variance of the total commercial rent budget), and lower than budgeted forestry harvest income of ($35K).
· Other gains has a favourable variance (better than budget) of $147K or 5% which is primarily due to more than budgeted gains on the externally managed funds of $217K; the details of which are the subject of agenda item 5.1. Partially offsetting this is the loss on disposal of various assets totalling ($70K).
Expense
· Personnel Costs – Salaries has a favourable variance (expenditure less than budget) of $472K or 3% due to delays in filling LTP roles and savings from holding some vacancies earlier in the year.
· Personnel Costs – Other has an unfavourable variance (expenditure exceeding budget) of ($204K) or (25%) predominantly due to an increase in annual and flexi leave balances of ($84K), unbudgeted redundancy payments of ($45K), and higher than budgeted overtime of ($28K).
· Other Expenditure has a favourable variance (expenditure less than budget) of $2.38M or 8%. This consists of many variances across all council activities including lower than budgeted Northland Inc. grants of $945K, lower than budgeted transport contracts (Whangārei rural trials and Whangārei terminus upgrade) of $863K, lower than budgeted sports facilities grants of $642K, lower than budgeted expenditure on Freshwater Improvement Fund Projects of $332K, lower than budgeted LIDAR costs of $220K, lower than budgeted lab testing contract costs of $212K, lower than budgeted stop bank and river clearance works of $50K, lower than budgeted advertising and promotions costs of $109K, lower than budgeted S17A review consultant costs of $103K, lower than budgeted natural hazards consultants of $148K, lower than budgeted forestry harvest costs of $88K, and lower than budgeted non-contestable grants of $59K.
This is offset with unbudgeted impairments of the REL loan of ($820K), more than budgeted legal fees for environmental incidents and consent applications of ($147K), unbudgeted costs for the Hill Country Boost Project of ($265K), and higher than budgeted costs for the Infrastructure as a Service contract of ($198K).
The net transfer to the Special Reserves is $2.7M greater than budget (more funds transferred into the reserves) predominantly due to the transfer of $1.13M to the operational cost reserve, lower Investment and Growth reserve movements for the Northland Inc. projects of $945K, unbudgeted transfers to the sporting facilities reserve of $621K, lower than budgeted reserve movements from the land management reserve for FIF projects of $137K, and higher than budgeted transfers to the Equalisation Reserve due to lower forestry harvest costs than anticipated of $133K. These are partially offset with lower transfers to reserves relating to externally managed funds of $407K and a transfer from rather than the budgeted transfer to the emergency services reserve due to one off payments to grant recipients to utilise the remaining three-year unspent rates. Further detail on the Special Reserves is provided in agenda item 5.5.
The draft 2018/19 Annual Report will be provided to
the Audit and Finance Working Party on 12 September 2019, with the final
Annual Report to be provided to council on 25 September 2019 for
adoption. The Annual Report will provide detailed funding impact
statements by activity group and full detailed explanations of any material
variance.
Capital Expenditure
Total capital expenditure for the year was $6.86M which is $65K less than the $6.93M revised annual budget. A detailed breakdown of capital expenditure variances and proposed carry forwards is provided in agenda item 5.4.
Attachments/Ngā tapirihanga
Attachment 1: Draft Operating Statement for Council ⇩
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
14 August 2019 |
Council Meeting item: 6.1
20 August 2019
TITLE: |
Update to Delegations |
ID: |
A1222713 |
From: |
Vincent McColl, Financial Accountant and Anan Thiru, Accounts Assistant - Treasury and Projects |
Executive summary/Whakarāpopototanga
This report seeks council approval for amendments to the delegations manual, which has not been sub-delegated and may only be approved by a council resolution.
These amendments are an update to the bank and cheque signatory delegations.
1. That the report ‘Update to Delegations’ by Vincent McColl, Financial Accountant and Anan Thiru, Accounts Assistant - Treasury and Projects and dated 1 August 2019, be received.
2. That council approve the updated bank and cheque signatory delegations, as outlined in Attachment 1 (pertaining to Item 6.2 of the 20 August 2019 council meeting agenda).
Background/Tuhinga
For administrative efficiency and expediency when conducting day-to-day business, the council and its Chief Executive delegates certain statutory duties, responsibility and powers to committees, members or staff.
Council’s delegation manual records delegations given to council officers in relation to administrative and financial matters, and in relation to statutory duties, responsibilities and powers. This is a living document that is reviewed periodically and is updated as necessary in response to legislative or staff changes.
The Chief Executive may authorise changes and updates to any delegations or matters to which he has been sub-delegated, however delegations made under the Resource Management Act 1991 and the Local Government (Ratings) Act 2002 are not able to be sub-delegated and may only be approved by a council resolution.
Bank and cheque signatory delegations
The delegation for authorising payment vouchers, signing cheques and authorising electronic payments on the council’s ASB Bank, Bank of New Zealand and investment accounts was last amended in June 2019. Updates are now proposed to entrench current practices around uploading and authorising payments.
The amendments proposed by this report are:
1. Remove the Management Accountant, Finance Manager, and GM Corporate Excellence from being able to upload or initiate a payment.
2. Extend the process to separate the person who enters or uploads an electronic transaction from the people who authorise them to include payroll transactions.
3. Some minor wording changes to improve clarity.
An excerpt from the delegations manual for creating and authorising payments, including changes, is provided in Attachment 1.
Considerations
1. 1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Approve updates to delegations as recommended for separation of initiator and authoriser, as included in Attachment 1 to this report. |
Delegations will entrench current practice and extend formal separation of duties. |
May lead to not being able to make payments during periods of time where staff often take leave (Christmas, Easter, etc.). |
2 |
Do not approve updates to delegations. |
Being more able to quickly process payments during some holiday times when staff levels can be lower. |
Less formal separation of duties between those uploading and authorising payments. |
The staff’s recommended option is Option 1
2. Significance and engagement
Section 76AA of the LGA directs that council must adopt a policy setting out how significance will be determined, and the level of engagement that will be triggered. This policy assists council in determining how to achieve compliance with the LGA requirements in relation to decisions.
This decision is considered to be of low significance when assessed against council’s Significance and Engagement Policy because it is part of council’s day to day activities. Council is able to make decisions relating to this matter without undertaking further consultation or engagement.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with the council's Treasury Management Policy which was adopted in compliance with the decision making requirements of sections 76–82 of the Local Government Act 2002.
Further considerations
Being a purely administrative matter Community Views, Māori Impact Statement, Financial Implications, and Implementation Issues are not applicable.
Attachments/Ngā tapirihanga
Attachment 1: Bank Delegations update ⇩
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
08 August 2019 |
20 August 2019
TITLE: |
Northland Water Storage and Use Project: Council approval to progress and execute the project |
ID: |
A1225761 |
From: |
Darryl Jones, Economist |
Executive summary/Whakarāpopototanga
On 8 July 2019 a funding agreement between council and the Ministry of Business, Innovation and Employment (MBIE) was finalised for the Northland Water Storage and Use Project. This agreement provides funding from the Provincial Growth Fund (PGF) to carry out further investigative work (pre-construction) into water storage and use options in three command areas near Kaikohe and Dargaville. A Pre-feasibility Phase report is due to be completed by 31 March 2020.
Under the agreement council will procure and contract services to undertake the investigation works. Council allocated $100,000 from its Investment and Growth Reserve (IGR) at its meeting on 16 April 2019 to the meet the co-funding requirements of the Pre-feasibility Phase. The majority of the costs for the delivery of these services will be recovered through a monthly application to MBIE. While there is no net cost to council, other than its co-funding commitment, it will create liabilities that are not included in either the 2018–2028 Long Term Plan or the Annual Plan 2019/20 that may be considered unbudgeted expenditure.
Council approval is therefore sought to provide the Chief Executive Officer delegated authority to undertake unbudgeted expenditure and full authority to progress and execute the Northland Water Storage and Use Project.
1. That the report ‘Northland Water Storage and Use Project: Council approval to progress and execute the project’ by Darryl Jones, Economist and dated 2 August 2019, be received.
2. That council provides delegated authority to the Chief Executive Officer to progress and execute the Northland Water Storage and Use Project (in accordance with the funding agreement signed between council and MBIE).
Considerations
1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Delegation to the CEO to progress and execute the Northland Water Storage and Use Project. |
Gives the Chief Executive Officer authority to act expediently to ensure the project meets timeframes. |
None |
2 |
Maintain status quo |
None |
Increases the risk of the project not meeting timeframes. |
The staff’s recommended option is Option 1. The Chief Executive Officer will ensure that councillors are kept well informed of how the project is progressing through regular updates either via council workshops or formal meetings.
2. Significance and engagement
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 because while it potentially involves operational expenditure with a value greater than $750,000, the other thresholds are not triggered.
This does not mean that this matter is not of significance to tangata whenua and/or individual communities, but that council is able to make decisions relating to this matter without undertaking further consultation or engagement.
3. Policy, risk management and legislative compliance
The activities detailed in this report are compliant with the requirements of the Local Government Act 2002. The Northland Water Storage and Use Project is being conducted in conformity with council’s Procurement Policy and Procedures.
Further considerations
Being purely an administrative matter, community views, Māori impact statement, financial implications and implementation issues are not relevant.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting item: 6.3
20 August 2019
TITLE: |
Freshwater Quality Management Units for Northland |
ID: |
A1226903 |
From: |
Ben Tait, Policy Specialist - Water |
Executive summary/Whakarāpopototanga
The purpose of this report is to present recommended freshwater quality management units for Northland and seek council’s agreement to progress them as the basis for developing a plan change to give effect to the water quality planning requirements of the National Policy Statement for Freshwater Management 2017.
1. That the report ‘Freshwater Quality Management Units for Northland’ by Ben Tait, Policy Specialist - Water and dated 6 August 2019, be received.
2. That council approves the recommended (interim) freshwater quality management units, as presented in this report, for the purpose of developing a plan change to give effect to the water quality planning requirements of the National Policy Statement for Freshwater Management 2017 (NPS-FM).
Background/Tuhinga
On Tuesday, 18 June 2019, council approved the following timetable for preparing a plan change to give effect to the NPS-FM water quality planning requirements:
a. Define freshwater management units (May – June 2019).
b. Assess and decide on appropriate modelling tool(s) for:
i. predicting water quality in the freshwater management units; and
ii. determining what catchment interventions (and costs) are needed to achieve aspirational water quality objectives (June – October 2019).
c. Provide the evidence base to underpin the plan change and any accompanying new non-regulatory initiatives (November 2019 – March 2021).
d. Engage with iwi and hapū, key stakeholders and the wider community throughout the process.
e. Draft the plan change and a RMA section 32 evaluation report (July 2020 – July 2021).
f. Notify the proposed water quality plan change (by 31 December 2021).
Regarding step one (defining freshwater management units), the NPS-FM directs regional councils to identify freshwater management units that include all freshwater bodies within its region. A freshwater management unit (FMU) is defined as a “water body, multiple water bodies or any part of a water body determined by the regional council as the appropriate spatial scale for setting freshwater objectives[1] and limits[2] and for freshwater [quality] accounting and management purposes”.
While having no official status and not constituting legal advice, the Ministry for the Environment’s Guide to Identifying Freshwater Management Units states:[3]
The concept of FMUs was added to the NPS-FM [in 2014] following recommendations by the Land and Water Forum to:
· encourage a pragmatic approach to freshwater management by allowing water bodies to be grouped together where appropriate
· allow a single objective to apply to freshwater bodies that are not connected
· establish a spatial scale at which management activities are undertaken, including freshwater accounting and setting freshwater objectives and limits.
The definition of FMUs is intentionally flexible so councils can determine the spatial scale best suited to managing fresh water in the specific circumstances of their region. Management includes setting values, objectives, limits, and undertaking freshwater accounting and monitoring. The use of spatial units in land and water planning is not a new concept for councils, as this approach is already used by councils for water allocation. Incorporating FMUs into the NPS-FM formalises the concept, and attaches specific obligations to it.
The NPS gives regional councils discretion over the spatial scale of FMUs. Regional councils must define FMUs at an appropriate management scale for which to undertake freshwater accounting and set freshwater objectives and limits. An FMU may be made up of a group of water bodies that are similar, both physically and/or socially (e.g., who uses them and for what). Similar freshwater bodies can be grouped (e.g., all first order streams originating from a mountain range) and be effectively managed as one FMU. Alternatively, an individual freshwater body or a part of a freshwater body (e.g., a reach or sections of a river) could be set as an FMU.
Policy CA2 of the NPS-FM[4] requires regional councils, through discussion with communities, including tangata whenua, to develop freshwater objectives for all freshwater management units using a specified process.
Council staff have defined preliminary freshwater quality management units largely based on major harbour/estuaries (the receiving environments for most of Northland’s rivers) and communities of interest. The recommended freshwater quality management units are attached to this report.
It is important to note though that we are mindful of the direction in the Ministry for the Environment’s Guide to Identifying Freshwater Management Units that:
It is likely that, whichever approach is chosen, the process will be iterative and initial decisions will need to be revisited during the planning process (e.g., as values are identified for a water body). For example, it may become apparent that a number of separate FMUs share the same values and would require the same freshwater objectives and limits. It may therefore be appropriate to group these as a single FMU. Alternatively, it may become apparent that an area initially set as a single FMU has distinct parts with completely different sets of values and management approaches. In this case, it may be appropriate to manage these parts as separate FMUs. [my emphasis]
Therefore, it is likely that the recommended FMU boundaries may be further refined as the project progresses.
Considerations
1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
To endorse the recommended freshwater quality management units. |
Provides certainty to start preparing the plan change, including developing and undertaking an iwi, hapū, key stakeholder and wider community engagement plan and addressing important information and research gaps. |
There are no obvious disadvantages. |
2 |
To endorse alternative freshwater quality management units. |
While there are any number of possible combinations of freshwater management units with different advantages, there is no clear alternative that has significant advantages over what is recommended. |
There are no obvious disadvantages, although there could be a delay in progressing the development of a plan change. |
3 |
To not endorse alternative freshwater quality management units (at this time). |
There are no obvious advantages. |
A delay in progressing the development of a plan change and impact on council’s ability to implement the NPS Freshwater within the statutory timeframes. |
The staff’s recommended option is Option 1.
2. Significance and engagement
In relation to section 70 of the Local Government Act 2002, the decision is considered to be of low significance when assessed against council’s Significance and Engagement Policy.
3. Policy, risk management and legislative compliance
The National Policy Statement for Freshwater Management requires regional councils to identify freshwater management units that include all freshwater bodies within its region (Policy CA1). There are no other policy, risk management and legislative compliance implications arising from the recommendations in this paper.
Further considerations
4. Community views
Water management is of significant public interest and community and stakeholder engagement and participation in this project will be critical to its success.
5. Māori impact statement
Māori are particularly interested in the management of water and Māori engagement and participation in this project will be critical. Staff will engage with and seek advice from Te Taitokerau Māori and Council Working Party as staff develop the project plan and engagement approach.
6. Financial implications
Staff will report back to council during the Annual Plan 2021/22 process on the need for additional resources to deliver the project (i.e., preparing a plan change to give effect to the freshwater quality planning requirements of the NPS-FM).
7. Implementation issues
This could be a challenging project given the competing stakeholder expectations and perspectives on how council should manage water quality. To ensure these issues are given the necessary priority within council, a dedicated project steering group has been established, consisting of senior council staff from across the organisation. Progress will be reported to full council workshops and formal council meetings, as a means of ensuring council is kept well informed and aligned as the project progresses
Attachments/Ngā tapirihanga
Attachment 1: Proposed Freshwater Quality Management Units for Northland ⇩
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting item: 6.4
20 August 2019
TITLE: |
Assessing Freshwater Quantity Limits for Fully Allocated Water Bodies |
ID: |
A1227408 |
From: |
Ben Tait, Policy Specialist - Water and Susie Osbaldiston, Groundwater Management Specialist |
Executive summary/Whakarāpopototanga
The purpose of this report is to:
a) provide council with an update on work being progressed to assess the freshwater quantity allocation limits in the Proposed Regional Plan for water bodies that are fully allocated; and
b) seek council’s support on the initial key steps and proposed timetable of the project.
1. That the report ‘Assessing Freshwater Quantity Limits for Fully Allocated Water Bodies’ by Ben Tait, Policy Specialist - Water and Susie Osbaldiston, Groundwater Management Specialist and dated 7 August 2019, be received.
2. That council supports this project and endorses the initial project milestones and timetable for assessing alternative freshwater quantity limits for fully allocated water bodies identified as (a) likely being under reasonably foreseeable significant future demand pressure, or (b) showing significant adverse effects resulting from current allocation.
Background/Tuhinga
In 2017, the council notified the Proposed Regional Plan for Northland (the Plan). The Plan was drafted and notified to, among other things, give effect to the freshwater quantity planning requirements of the National Policy Statement for Freshwater Management (NPS-FM). The Plan contains freshwater quantity objectives, freshwater quantity limits (minimum flows and levels, and allocation limits), and methods to avoid over-allocation. It also contains provisions to improve and maximise the efficient allocation and efficient use of water.
In April 2019, council accepted and adopted the recommendations of the independent hearing panel on changes to the Plan. There were no appeals to the Environment Court against the freshwater quantity limits, and therefore they can be considered operative.[5]
The Proposed Regional Plan groups Northland’s water bodies into freshwater quantity management units based on their similar values and sensitivities to water abstraction. The freshwater quantity limits set for the freshwater quantity management units (aside from the Aupouri Aquifer) are based on (a) a ‘regional’ assessment of trade-offs between reliability and availability of supply of water for use, and (b) protection of ecological values (and preventing saline intrusion in aquifers). As such, the limits (aside from the Aupouri Aquifer) are not specifically tailored to individual water bodies. They should be considered ‘default limits’.
On paper, based on these ‘default limits’, 11 mapped aquifers and 26 surface water catchments (small to large) are fully allocated (see Indicative Surface Water Allocation Map and Indicative Groundwater Allocation Map). The council cannot allocate any more water to be taken from fully allocated water bodies and must not make a decision that will likely result in future over-allocation.
Council staff have started a project to prioritise fully allocated water bodies for evaluation of their allocation limits, and if appropriate, making a recommendation to council on whether to develop a plan change with alternative, waterbody-specific limits and associated planning provisions for prioritised catchments. The prioritisation will be based, primarily, on two matters: (a) the significance of reasonably foreseeable demand pressures, and (b) the significance of adverse environmental effects resulting from the current water allocation.
Further, evaluation of these priority water bodies will include an assessment of all management options available. This could, for example, identify that a more appropriate approach is to review existing conditions of water take consent(s) to provide additional water instream for other extractive use or to protect environmental values.
The two principal areas of work to deliver the project are:
1. Providing the evidence base – This involves:
a. obtaining the technical evidence to prioritise water bodies based on the criteria;
b. working with water users (district councils, industry and sector groups, companies, relevant government agencies, and Māori) to determine the significance of reasonably foreseeable (10-15 years) pressures for water in the catchments of highly and/or fully allocated water bodies; and
c. determining and applying methodologies to assess the likely consequences of alternative, waterbody-specific limits.
2. Developing a plan change (if appropriate) – This involves, drafting a plan change and the accompanying RMA section 32 evaluation report.
The purpose of the project is to determine if alternative limits are required to address (a) any significant adverse environmental effects resulting from the current allocations, or (b) reasonably foreseeable future demand pressures.
Some of the work will be undertaken within existing budgets. However, there are some significant funding uncertainties associated with the potential need for more monitoring and research to identify and assess alternative limits. Staff are currently working to quantify what additional resourcing will be required and will present it to council for consideration for inclusion in the 2021/2022 Annual Plan.
The proposed project timetable is:
· Prioritise fully allocated water bodies for the assessment of alternative freshwater quantity limits, including by engagement with stakeholders (August 2019 – February 2020).
· Identify any additional resourcing requirements needed to support benefit-cost analyses of alternative limits and other policy options (August 2019 – February 2020).
· Assess the benefits and costs of alternative limits and other policy options (March 2020 onwards, noting that it could take several years depending on the water body).
Should council support progressing this project, details of additional resource requirements will be presented to council during the Annual Plan 2020/21 process, and a more detailed project plan and community engagement plan will be brought to council in early 2020 for adoption.
Considerations
1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
To assess the limits for fully allocated water bodies. |
Provides certainty to start reviewing the allocation framework for fully allocated catchments. |
There are no obvious disadvantages. |
2 |
To not assess the limits for fully allocated water bodies. |
There are no obvious advantages. |
Will delay the start of assessing fully allocated water bodies, which may impact on future use and development. |
The staff’s recommended option is Option 1.
2. Significance and engagement
This decision is considered to be of low significance when assessed against the council’s Significance and Engagement Policy because it is part of council’s day-to-day activities. Decisions about funding to undertake additional science will be done through the annual plan process.
3. Policy, risk management and legislative compliance
There are no policy, risk management or legislative compliance implications resulting from the recommendation in this report.
Further considerations
4. Community views
Water management is of significant public interest and community and stakeholder engagement and participation in this project will be critical to its success.
5. Māori impact statement
Māori are particularly interested in the management of water and Māori engagement and participation in this project will be critical. Staff will engage with and seek advice from Te Taitokerau Māori and Council Working Party as staff develop the project plan and engagement approach.
6. Financial implications
Staff will report back to Council during the Annual Plan 2021/22 process on the need for additional resources to deliver the project.
7. Implementation issues
This could be a challenging project given the competing stakeholder expectations and perspectives on how council should manage water quantity. To ensure these issues are given the necessary priority within council, a dedicated project steering group has been established, consisting of senior council staff from across the organisation. Progress will be reported to full council workshops and formal council meetings, as a means of ensuring council is kept well informed and aligned as the project progresses.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting item: 6.5
20 August 2019
TITLE: |
Draft Productivity Commission Report on Local Government Funding and Financing |
ID: |
A1226950 |
From: |
Justin Murfitt, Strategic Policy Specialist |
Executive summary/Whakarāpopototanga
The Productivity Commission has progressed with the inquiry into local government funding and financing with a draft report setting out its findings and recommendations on whether the current system is suitable for current and future cost pressures. This follows on from consultation on an issues paper in late 2018. The draft report indicates the current system, based largely on property rates is generally sound, economically efficient and that change to a dramatically different model would be expensive and disruptive with uncertain benefits. It also found there is no evidence that rates have become less affordable over time. The commission therefore recommends the current system be retained, but suggests new tools are needed to address specific cost pressures. A draft submission was not able to be developed prior to the agenda deadline and approval is therefore sought to approve the draft under delegated authority. Submissions on the draft report close on 29 August 2019.
1. That the report ‘Draft Productivity Commission Report on Local Government Funding and Financing’ by Justin Murfitt, Strategic Policy Specialist and dated 6 August 2019, be received.
2. That council authorise staff to draft a submission based on key submission points outlined in this report.
3. That the submission be approved, under delegated authority by the Chief Executive Officer, and lodged with the Productivity Commission by 29 August 2019.
Background/Tuhinga
The government asked the Productivity Commission to undertake an inquiry into whether local government funding and financing arrangements were ‘fit for purpose’ to meet current and future cost pressures. The inquiry began with an issues paper which examined the issues as the Commission saw them and invited feedback (council submitted on the issues paper in December 2018). The Commission released its draft report in July 2019 which includes 67 findings, 30 recommendations and poses eight questions. It concludes that the current system is generally sound and provides flexibility to local government to apply a range of funding tools. It also found that there is generally no evidence that rates have become less affordable over time. The Commission therefore does not recommend a dramatic change, but makes a number of suggestions to address key cost pressures.
A high level summary of key findings is provided below:
· Many councils could make better use of existing tools available.
· Council decision making and performance should be more transparent.
· All councils should have an independently chaired assurance (audit and risk) committee.
· Long Term Plan requirements should be clarified and simplified and reporting requirements should be reviewed at a ’first principles’ basis, especially those elements relating to financial and non-financial disclosures.
· The Commission recommends funding decisions should be based on the principle that the beneficiary pays with ability to pay being a secondary consideration – it recommends changes to rating powers to emphasise the ‘benefit’ principle.
· Central government should contribute funding where local services benefit national interests.
· There should be a strong preference for user charges and / or targeted rates to fund services where it is efficient to do so.
· Replacing the rates rebate scheme with a national rates postponement scheme.
· Identifies four areas where new funding tools are needed: infrastructure to support growth; adapting to climate change; tourism growth and the accumulation of responsibilities devolved from central to local government.
· In relation to infrastructure and growth recommended tools include:
i. Value capture, whereby gains in property value due to infrastructure improvement would be subject to a charge.
ii. User charges / levies for road congestion and volumetric wastewater.
iii. Special purpose vehicles (a financing option for new development) for councils approaching debt limits.
iv. Potentially: a funding stream from central government to councils based on the amount of new building work and a tax on vacant land (to act as incentives to facilitate growth and improve housing supply).
· Central government should take the lead on climate change adaptation by providing science / data, develop and set standards and legal guidance. Legal frameworks should also shift from response and recovery to reducing risks.
· The role of the NZ transport Agency should expand to co-funding local roading to address climate change effects.
· The government create a climate change resilience agency and associated fund to assist at-risk councils manage at-risk infrastructure.
· Amend the law to enable councils to implement accommodation levies in tourist hotspots and allocate funds from the international visitor levy to smaller councils where user charges or levies are not viable.
· To address the accumulation of unfunded central government mandates / responsibilities, central and local government jointly develop a ‘partners in regulation’ protocol (to ensure proposals that rely on local government are workable, efficient and effective).
· A new regulatory regime for the three waters including a central regulator.
Staff are still assessing the draft report and hope to have a draft submission by the date of the council meeting. A summary of suggested submission points is provided below:
· Agree with the findings that the current rating based system has been generally fit for purpose given rates have been kept affordable (for the most part). In our view this is largely due to prudence at a governance level but future pressures (especially climate change, infrastructure, tourism and increasing central government expectations) require new tools.
· Strongly agree that unfunded central government mandates / responsibilities allocated to local government are a significant cost pressure – this includes responsibilities arising through poorly resourced treaty settlement arrangements, higher standards and new regulatory requirements being imposed. Council supports the proposal for better central government resourcing for these devolved responsibilities and the suggested ‘partners in regulation’ protocol.
· Support for simplification of LTP reporting requirements, but oppose a change to a five year LTP cycle given the poor fit with the triennial election cycle.
· While we understand the desire for greater emphasis on ‘beneficiary pays’ principle in funding decisions, there is potential for this to disadvantage fixed / low income ratepayers if ability to pay is not also afforded significant weight, especially in areas of deprivation with a real need for new / upgraded infrastructure – however ‘affordability / inability to pay’ should not be seen as justification for inaction on such work.
· Oppose removal of the cap on general charges on the basis this could be over-used in some areas and disadvantage those on low / fixed incomes. We also note the report states most councils are below the current 30% cap.
· Oppose the removal of rating differentials and UAGC given the dramatic impact this could have for some councils and that targeted rates are not necessarily an appropriate alternative.
· Support new tools for funding tourism related impacts.
· Support for replacing the rates rebate scheme with a nationally administered rates postponement scheme (provided benefits for recipients and efficiency improves).
· Support for central government and NZ Transport Agency funding climate change adaptation and provision consistent data / science and guidance.
The above is not exhaustive and additional points are likely to emerge as staff investigate the report in more detail. It is hoped that a draft submission can be circulated to councillors prior to the council meeting.
It is recommended that the draft submission be approved by the Chief Executive under delegated authority given the tight timeframes.
Considerations
1. 1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Council does not lodge a submission on the report |
No demand on staff or councillors’ time. |
The Commission does not have access to the council’s concerns / suggestions and Northland perspectives are not considered in the final report. |
2 |
Council lodges a submission on the report |
The Commission does not have access to the council’s concerns / suggestions and Northland perspectives are not considered in the final report. |
Demand on staff or councillors’ time. |
The staff’s recommended option is Option 2.
2. Significance and engagement
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 because it is part of council’s day to day activities. This does not mean that this matter is not of significance to tangata whenua and/or individual communities, but that council is able to make decisions relating to this matter without undertaking further consultation or engagement. In addition, lodging a submission does not commit council to any resourcing or particular course of action.
3. Policy, risk management and legislative compliance
The decision does not trigger any policy or legislative requirements being a submission on a draft report with no regulatory implications or risks.
Further considerations
Being a purely administrative matter relating to a submission on a draft Productivity Commission report, Community Views, Māori Impact Statement, Financial Implications and Implementation Issues are not considered applicable.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting item: 6.6
20 August 2019
TITLE: |
Environment Fund Over-allocation |
ID: |
A1227954 |
From: |
Lorna Douglas, Eastern Coast Manager |
Executive summary/Whakarāpopototanga
This report requests approval of an over allocation of 20% of the Environment Fund budget to ensure withdrawals and underspends are accounted for to enable full use of available budget and provide delegated authority for the council chairperson to approve up to 100% Environment Fund grants for Top 150 wetlands and dune lakes.
1. That the report ‘Environment Fund Over-allocation’ by Lorna Douglas, Eastern Coast Land Manager and dated 8 August 2019, be received.
2. That for 2019/20 council approves an over-allocation of the Land/Biodiversity component of the Environment Fund budget ($941.4 K) by up to 20% ($188.3 K).
3. That council amends the current Environment Fund criteria to allow the council chairperson to approve up to 100% funding for Top 150 wetlands and dune lakes projects.
Background/Tuhinga
Landowner awareness of new regional plan rules and the availability of the Environment Fund is growing. Environment Fund processes are being streamlined in the 2019/20 financial year to ensure more consistent and fair allocation of resources. New ranking criteria have been developed, with approval based on ranking scores.
The land/biodiversity budget for the Environment Fund is $941.4K in the 2019/20 financial year and this is likely to be over-subscribed. The final reconciliation of the 2018/19 Environment Fund showed underspends and withdrawals of $210,557.00 which equated to 25% of the total 2018/19 budget.
Withdrawals and underspends happen for a variety of reasons (for example weather issues, individual personal circumstances changing, lack of fencing contractors, changing farming priorities during the year) and are difficult to manage.
An analysis of reasons for the 2018/19 year withdrawals shows approximately half were because of a lack of commitment to the project (see table below).
Reason |
% |
Lack of commitment / communication |
52 |
Other farming priorities (e.g. M. bovis, forestry harvest, lack of $, farm ownership problems) |
24 |
Death/illness/family issues |
10 |
Sold the property |
8 |
Mechanical breakdown |
6 |
The land team is working to address the lack of landowner commitment by streamlining our processes. In future:
1. Grant applications won’t be started until FEPs are completed and discussed with landowners and priority actions agreed.
2. There will be improved communication with landowners about the processes, including a “2-strike” rule of limiting future applications for landowners who have previously withdrawn without good cause.
3. Allowing more applications by previous recipients with a good completion track record should also reduce withdrawals and enable more environmental improvement work to be completed.
However, these efforts won’t affect situations where withdrawals and underspends are the result of situations beyond the control of landowners. There is a reasonably high transaction cost of incomplete grants which the measures above will help to mitigate.
Accordingly, this paper requests an Environment Fund over-allocation of 20% ($188.3 K) of the 2019/20 Environment Fund land/biodiversity budget. A 20% over-allocation represents a five-year average of underspends and withdrawals (the financial considerations section in this report describe why a 20% over-allocation is considered preferable to 25%).
A 20% over-allocation would raise the amount of the land and biodiversity component of the Environment Fund available to allocate from $941.4K to a total of $1,129.7M. In addition to this, processes, as described above, will be implemented to attempt to reduce the number of landowners withdrawing and underspending their allotted Environment Fund applications.
Amending delegated authority criteria
Focus on improving protection of Top 150 wetlands and dune lakes has increased over the past few years. Recently it has become obvious that staff working with landowners and relevant catchment groups sometimes need more flexibility to help fund key projects for those valuable ecological situations than the current Environment Fund criteria allow.
Current criteria:
It would remove unnecessary time constraints and streamline funding processes if grant approval for up to 100% for dune lakes and Top 150 wetlands were included within the delegated authority processes via the council chairperson and Eastern Coast Land Manager.
Considerations
1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Provide an over allocation based on 20 % of total 2019/2020 land/biodiversity Environment Fund budget. Authorise decision making for up to 100% funding of Top 150 wetland and dunes lakes to the delegated authority process. |
Ensures greater utilisation of the Environment Fund budget by reducing the impact of withdrawals and underspends and ensures more work is done to improve water quality and biodiversity outcomes. |
If withdrawals and underspends are less than 20 % then there will be an unfavourable variation to year end budget. Decision making for up to 100% funding of Top 150 wetlands and dune lakes is not made by full council. |
2 |
Decline the 20% over allocation and decision making for up to 100% funding of Top 150 wetland and dunes lakes to the delegated authority process. |
None in terms of allocation. Full council decision making for up to 100% funding. |
The withdrawals and underspends mean that the total Environment Fund budget is not utilised at the end of the financial year and less work is done to improve water quality and biodiversity outcomes. |
The staff’s recommended option is Option 1.
2. Significance and engagement
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 because it has previously been consulted on and provided for in council’s Long Term Plan and/or is part of council’s day to day activities. This does not mean that this matter is not of significance to tangata whenua and/or individual communities, but that council is able to make decisions relating to this matter without undertaking further consultation or engagement.
3. Policy, risk management and legislative compliance
The activities detailed in this report are in accordance with council’s 2018–28 Long Term Plan which was approved in accordance with council’s decision-making requirements of sections 76–82 of the Local Government Act 2002.
The primary risk that we aim to mitigate is the underutilisation of the Environment Fund budget caused by underspends and withdrawals. There is also a financial risk, and this is outlined under consideration 6 below.
Further considerations
4. Community views
Being a purely administrative matter, community views are not applicable.
5. Māori impact statement
Being a purely administrative matter, Māori impact statement is not applicable.
6. Financial implications
There is the potential of an unfavourable variation to year end budget if withdrawn or underspent projects are less than the recommended over-allocation of 20%.
The following table demonstrates different scenarios and their financial implications.
No. |
Scenario |
Situation |
Financial implication |
1 |
Current scenario |
No additional over-allocation of budget is authorised. |
The Environment Fund budget is underspent due to withdrawals and underspends. If this were 20% of the land/biodiversity Environment Fund budget, this would result in a favourable variation of $188.3K. |
2 |
Worst case |
20% additional budget is allocated to account for withdrawals or underspends, but no withdrawals or underspends occur. |
$188.3K unfavourable variation to land/biodiversity Environment Fund budget. |
3 |
Most likely scenario |
Based on the five-year average of 20% of underspends and withdrawals, it is likely that close to 20% of the total budget will be withdrawn or underspent. |
Limited variation to budget. For example, a 5% variance to the land/biodiversity Environment Fund budget would be $47K. |
If an unfavourable variance to budget occurs, then this would need to be serviced from any potential year end surplus or subsequent years’ Environment Fund (that is any overspend will go against an Environment Fund reserve to be repaid in the following year from the Environment Fund budget). However, the 20 % five-year average for underspends and withdrawals indicates that a substantial unfavourable variance to budget is unlikely.
7. Implementation issues
Being a purely administrative matter implementation issues are not applicable.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Bruce Howse |
Title: |
Group Manager - Environmental Services |
Date: |
08 August 2019 |
Council Meeting item: 6.7
20 August 2019
TITLE: |
Initial Restructure of Managed Funds |
ID: |
A1228715 |
From: |
Dave Tams, Group Manager, Corporate Excellence |
Executive summary/Whakarāpopototanga
This paper sets out the proposal to restructure the managed funds into the long term and the short term fund.
1. That the report ‘Initial Restructure of Managed Funds’ by Dave Tams, Group Manager, Corporate Excellence and dated 12 August 2019, be received.
2. That the managed funds be restructured into the Long Term fund and Short Term fund as per the advice from Eriksen and Associates.
3. That council, post the 2019 elections, workshop with Eriksen and Associates the fund manager choices.
Background/Tuhinga
The Investment Subcommittee has been evaluating the performance of the managed funds portfolio. It is recommended that the four funds, Community Investment fund, Property Reinvestment fund, Infrastructure fund, and Short term investment fund be combined into two funds, the Long Term fund and the Short Term fund. This should have the effect of reducing fees.
Attachment one is a single Statement of Investment Policy & Objectives (SIPO) outlining the structure of the funds.
Attachment two provides a detailed breakdown of the funds by fund manager, proposed by Eriksen and Associates. This is the initial structure, and post the 2019 elections the new council are to workshop the funds structure and fund managers in line with their risk/reward framework.
Considerations
1. Options
No. |
Option |
Advantages |
Disadvantages |
1 |
Do not restructure funds |
· Funds structure constant. |
· Will not benefit from reduced fees. · Certain funds duplicated across the portfolio. |
2 |
Restructure funds as proposed |
· Funds structure simpler. · Potentially reduces fees. |
· None. |
The staff’s recommended option is 2.
2. Significance and engagement
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 because it is part of council’s day to day activities.
3. Policy, risk management and legislative compliance
Being a purely administrative matter, Community Views, Māori Impact Statement, Financial Implications and Implementation Issues are not applicable.
Attachments/Ngā tapirihanga
Attachment 1: Statement of Investment Policy and Objectives (SIPO) draft ⇩
Attachment 2: Eriksen - NRC Investment Strategy Review ⇩
Authorised by Group Manager
Name: |
Dave Tams |
Title: |
Group Manager, Corporate Excellence |
Date: |
14 August 2019 |
Council Meeting item: 7.1
20 August 2019
TITLE: |
Chair's Report to Council |
ID: |
A1228589 |
From: |
Bill Shepherd, Chairman |
Purpose of Report
This report is to receive information from the Chair on meetings/events attended, and correspondence sent for the month of July 2019.
That the report ‘Chair's Report to Council’ by Bill Shepherd, Chairman and dated 12 August 2019, be received.
Meetings/events attended
During this period, I attended the following meetings/events/functions:
· Meetings attended with the council’s CEO, Malcolm Nicolson:
o Murray Jagger, Chair, Marsden Maritime Holdings – MMH director appointments.
o Regional Sector Group tour. Our partners and Councillor Paul Dimery also participated in the RSG tour.
o LGNZ Conference – Councillors Paul Dimery and Mike Finlayson also attended the conference.
o Attended The New Zealand – Aotearoa Government Tourism Strategy Guidelines for Destination Management and Planning.
o Visit by Hon Eugenie Sage, Minister of Conservation at Ngatiwai Trust office - Mimiwhangata Marine Protection.
o Attended signing of Memorandum of Understanding with Auckland University of Technology to formalise relationship with Bream Head Conservation Trust. Hon Eugenie Sage, Minister of Conservation, was also in attendance.
o Preparation hui for visit from Hon Nanaia Mahuta, Minister of Local Government, with Mayors and CEOs from Whangarei District Council, Far North District Council, and Kaipara District Council.
o Meeting with Mike Fuge, CEO, and Greg McNeill, Communications and External Affairs Manager, Refining NZ – update on refinery activities.
· Regular Northland Mayoral Forum conference call.
· Public meeting with Hon Kelvin Davis and Hon Grant Robertson – budget outcomes for the Te Tai Tokerau Electorate.
· Enable Northland Networking Event organised by Northpower.
· Meeting with Steve MacMillan, Public Affairs Manager, Northpower.
· Extension 350 update meeting with Vaughan Cooper and Luke Beehre, Northland Inc.
Correspondence
During July I sent out the following correspondence:
Date |
Addressed To |
Subject |
24.07.19 |
Mike Howard Mangawhai Golf Club |
Letter of support – Application to the Provincial Growth Fund |
25.07.19 |
Sarah Petersen Chair Northland Inc. Ltd |
Northland Inc. Ltd Statement of Intent 2019–2022 |
Attachments/Ngā tapirihanga
Council Meeting item: 7.2
20 August 2019
TITLE: |
Chief Executive’s Report to Council |
ID: |
A1221518 |
From: |
Malcolm Nicolson, Chief Executive Officer |
That the report ‘Chief Executive’s Report to Council’ by Malcolm Nicolson, Chief Executive Officer and dated 31 July 2019, be received.
7.2.1 Highlights
Planting Days
Numerous planting days were held in school communities throughout Northland in July and formed part of council’s planting campaign. Some include: Mangakahia Area School planted on Pamu’s Titoki Station and Riverview School on Kapiro Station (Kerikeri).
|
|
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Students from Kokopu School take part in a planting day |
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Council staff planting the Waiarohia awa as part of the Matariki Tu Rakau planting |
These days also included water quality education provided by council’s monitoring staff. Kokopu, Poroti and Maungatapere schools planted on a Mangere catchment property and Ruawai College planted up a local wetland in conjunction with council’s Land Management staff. Council staff joined Whangārei Intermediate’s planting of the Waiarohia awa.
Northland LiDAR Capture
We are extremely pleased to report that the LiDAR capture phase is now 100% complete – this includes the mainland and all outlying islands. Processing is well underway. RPS has provided a newly formatted progress report for processing of deliverables, which currently stands at around 34%. Council is liaising with Land Information New Zealand to finalise dates for the QA/QC workshop (key contract hold-point). The date for final deliverables is late September.
Climate Change Response
An internal steering group has been set up to coordinate activities relating to climate change, both adaptation and mitigation. The group’s work will include identifying opportunities and aligning existing projects that help the region adapt to the predicted impacts of climate change; and developing resourcing, funding and research priorities to inform funding proposals for the 2021-31 LTP. The group will also consider how council can reduce its organisational carbon footprint as well as support actions in Northland to reduce carbon emissions.
Northland Regional Council is a lead contributor to the Te Taitokerau Council’s Climate Change Adaptation Group. The group is currently developing a regional adaptation strategy framework and associated risk and vulnerability assessments, which will help identify at risk elements and areas across Northland and common approaches for risk management. The strategy will feed directly into LTP planning to ensure funding for adaptation work programmes is prioritised to the highest climate-risks across the region. The group is also developing a communications and Māori and community engagement plan.
Sea level rise due to climate change will impact communities across Northland and having accurate coastal hazards mapping is vital. Once the new LiDAR data has been delivered, we will undertake new coastal hazard mapping, and this will likely include a defining new extreme sea level rise scenario as per the 2017 MfE guidance. We are currently engaging with stakeholders across the region to get feedback on this process and are developing the RFP for this work with the aim of delivery mid-2020.
7.2.2 CEO’s Office
Council Property Update
A Sale and Purchase Agreement to purchase a Waipapa property has settled.
The Tender Committee considering tenders for the Head Contractor for the redevelopment at 8 Kensington Avenue has met.
Current Legal Proceedings
Department |
Description |
Status |
Consent decision appeal |
Seventeen groundwater takes for horticultural irrigation at Houhora, Motutangi, and Waiharara |
Awaiting the Court to make a final decision or provide further directions. |
Consent decision appeal |
Replacement consents for, and new consents for an expansion of, Doug’s Opua Boat Yard in Walls Bay, Ōpua. |
The Court has issued an interim decision stating that it can grant consents once conditions have been agreed to. A timetable has been set down for the exchange of conditions, with the applicant to provide a draft set to all parties for comment within 30 working days. |
7.2.3 Corporate Excellence
Enterprise System
A consultant has been engaged to assist with the preparation of the detailed business case and evaluation of options and is scheduled for completion in mid-November.
Cyber Security
Council recently engaged Deloitte to undertake a cyber governance maturity assessment. The draft report has been provided for review and indicated some areas where work is requried to increase council’s level of cyber governance.
Fraud Declaration
I am not aware of any fraud nor am I investigating any incidence or suspected incidence of fraud at this time.
7.2.4 Regulatory Services
CONSENTS IN PROCESS
During July 2019, a total of 56 decisions were issued. These decisions comprised:
• Moorings |
1 |
• Coastal Permits |
12 |
• Air Discharge Permits |
0 |
• Land Discharge Permits |
7 |
• Water Discharge Permits |
5 |
• Land Use Consents |
24 |
• Water Permits |
2 |
• Bore Consents |
5 |
The processing timeframes for the July 2019 consents ranged from:
• 126 to 4 calendar days, with the median time being 28 days;
• 83 to 2 working days, with the median time being 20 days.
Thirty applications were received in July 2019.
Of the 102 applications in progress at the end of July 2019:
• 39 were received more than 12 months ago (most awaiting further information);
• 24 were received between 6 and 12 months ago (most awaiting further information);
• 39 less than 6 months.
Appointment of Hearing Commissioners
No commissioners were appointed in July 2019.
Consents Decisions and Progress on Notified Applications in Process, Objections and Appeals
The current level of notified application processing activities at the end of July 2019 is (by number):
• Applications Publicly/Limited Notified During Previous Month |
0 |
• Progress on Applications Previously Notified |
3 |
• Hearings and Decisions |
4 |
• Appeals/Objections |
2 |
7.2.5 Environmental Services
Land Management
Environment Fund Update
Twenty-two projects (totalling $119,325) were approved by delegated authority in July, for Hātea, Coastcare and Poutō catchment group projects.
Farm Environment Plans (FEP’s)
Nineteen farm plans were completed in July, covering 1,143 ha across Northland.
Hātea Project
Seventeen new Environmental Fund (eFund) grants were approved for the Hātea project, including 3.2km fencing and 12,400 plants. This allocates $25,700 from council and $101,000 from the Ministry for Environment (MfE) fund. Four large planting projects are underway or completed. Further fencing projects (approximately 5km) are currently being scoped.
Ngunguru Catchment Group Meeting
A meeting was held 25 July, with three community/farm representatives attending.
Mangere Catchment Group
Two planting days with local schools (Kokopu and Maungatapere) were held in late July, with 1,300 plants planted.
BIODIVERSITY
CoastCare
Two dune planting days were held at Pataua North with Tahi and Queen Elizabeth II National Trust. These dunes contain the threatened plant Pimelea villosa which is in decline. Over the last few years Ficinia nodosa (wīwī) has been planted in the mid-dune area to gradually replace the exotic grasses, restoring a more natural dune system and providing some protection to the pimelea.
A working bee was held with Ruakaka Primary and Bream Bay Coastal Care Trust in the Ruakaka wildlife refuge. Exotic species encroaching into the dune area were dug out and replaced with native dune plants wīwī and pīngao.
CoastCare staff attended a Matariki event at Tauranga Bay, organised by Whangaroa Papa Hapῡ During the day pingao were planted on the sandspit to help protect the shorebird nesting area.
Other CoastCare dune planting took place at Otamure and Paraparea, both north of Whananaki.
FIF Dune Lakes Project
The Annual report for Year 2 (FY 2018/19) has been submitted to MfE and the Year 3 Plan has been signed off.
The main output this year are herbicide weed eradication programmes at Lakes Ngatu, Waipārera and Ngakeketo South. The Environmental Protection Authority approved the application for permission to apply Aquathol K over each entire lake, rather than requiring quarter lake treatments. This is the first time that this has been approved in New Zealand and opens the door to more rationalised use of this herbicide.
The community from Ngatu and Waipārera were consulted about the proposed herbicide weed control during an open day at Lake Ngatu. Approximately 25 people attended from the local communities around both lakes and all appeared to be supportive.
Poutō Catchment Group meeting
The Poutō Catchment Group held a meeting on 22 July. Actions included:
• In principle approval of the catchment group funding for this financial year. Projects include support for a community nursery, fencing and plants for lake sides. Working group members to bring back cost estimates to the next meeting for confirmation.
• Two forestry representatives attended the meeting and will provide information on harvest times in order for the catchment group to establish relationships with foresters and discuss set back when any replanting commences. Alan Panckhurst from PF Olsen advised that Te Uri O Hau and the Ministry of Primary Industries have agreed on a 100 m buffer around lakes when replanting occurs, ie. Kahuparere.
Wetland and Biodiversity Advice
Advice was given on four wetland projects, relating to restoration and wetland rules including the Ruakaka Dune Lake, the Ngawha Geothermal Ltd Peer Review Panel, and on Geothermal section of the National Policy Statement for Indigenous Biodiversity (NPSIB).
Biosecurity
Biosecurity Highlights
• NETS Conference (Tauranga)
• Four presentations showcasing Northland biosecurity activities were delivered by staff at the NETS conference in Tauranga on 24 - 26 July. The presentations included:
• Behaviour change in boating communities on marine pests in Northland.
• Towards inter-regional pathway management – Top of the North Marine Biosecurity Partnership.
• Unwanted feral deer – time for a national collaboration.
• Working together to eradicate Manchurian wild rice.
• Tiakina Whangārei – Communities, Kaitiakitanga, Conservation
• Tiakina Whangārei is a community led urban initiative helping people connect with their environment through conservation activities, while supporting existing work, to protect and enhance Whāngārei’s native biodiversity. |
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• The project was launched during Biosecurity Week (22 – 28 July) and aims to: a) increase community cohesiveness, ecological knowledge, and social wellbeing. b) encourage kaitiakitanga/guardianship of the environment. c) protect and enhance native biodiversity. • The initial focus of the project will start with backyard trapping and urban pest control. Tiakina will provide a platform for other initiatives such as urban plant pest control, stream restoration, and other environmental activities. |
Biosecurity Threats / Incursions
• Auckland Fruit Fly Incursions
• The Ministry for Primary Industries (MPI) led Queensland Fruit Fly Response is ongoing, with an additional single male fruit fly confirmed on 15 July. This latest find was discovered in a surveillance trap in Northcote and brings the total number of Queensland fruit flies found in the immediate Northcote area to eight. Legal controls on the movement of fruit and vegetables remain in place for Northcote. Following the latest find, there have been no requests from MPI for council staff to assist with the response.
• Mycoplasma Bovis
• The Ministry for Primary Industries led Mycoplasma bovis response continues to target risk properties and animals within Northland. There remain a number of Northland farms under notices of direction and restricted place notices. No council staff are currently involved with the M. bovis response.
Biosecurity Partnerships
• Kiwi Coast / NRC Partnership – Northland Pest Control Workshop
• The Northland Pest Control Wānanga/ Workshop held at Akerama Marae was attended by over 200 keen pest controllers, forest savers, and kiwi kaitiaki. The workshop brought together 73 community and hapū led projects, agencies, and organisations from across Northland. The day was used to learn about new trapping technologies and pest control tools coming on to the market, share skills and knowledge, and network with one another.
• New pest control technologies featured included:
• Automated bait station developed by Northlander Shane Hyde.
• Econode Biosecurity Monitoring Tool.
• Self-resetting AT220 multispecies trap being developed by NZ Autotraps.
• Kiwi Coast, key industries, and council’s biosecurity team had information stalls at the workshop, featuring a wide range of pest control products to suit everyone from backyard trappers to projects covering thousands of hectares. More information on the workshop is available at https://kiwicoast.org.nz/2019-northland-pest-control-wananga-workshop/
• Tutukaka High Value Area
• Predator Control: The monthly monitoring of trap lines continues. A stoat was caught at the Tutukaka Lighthouse Island reserve – this was very timely given that several grey-faced petrels are currently on their nests in the reserve.
• Kiwi Monitoring: Kiwi calls were low in the first listening period, but the numbers increased in the second. Anecdotal reports have been received of kiwi calls from a wide area throughout July. The average hourly call count from 2 stations this year is approximately 12 calls per hour.
• Kauri Dieback: Re-routing of the Te Araroa trail to avoid a vulnerable grove of kauri is almost complete with the new track line established, earthworks completed (terracing and steps), and the posts, gates and rails installed. Signage for directing walkers along the new route will now be requested from the Te Araraoa Trust, thereby allowing the new track to be opened and the existing one closed.
• Weed Control: Site led surveys were completed in Pacific Bay, Snell Point Reserve and Woolley’s Bay. A pest plant identification workshop was followed with a field trip with 60 students from year 7 and 8 at Ngunguru School. Tobacco weed, wild ginger, moth plant and other plant pests were removed during the field trip that followed the workshop. >60 community volunteer hours were done in the month with a 1:3.5 paid:volunteer ratio.
• Species Enhancement: All four tagged kiwi have been monitored and none are nesting. Pateke are becoming widespread and ducklings have been observed. Grey-faced petrel burrows have been observed in the Tutukaka Lighthouse Island Reserve.
• Whangārei Heads High Value Area
• Kiwi Monitoring: Monitored kiwi at Whangārei Heads have started nesting with three of the males sitting.
• Dog Kill Kiwi: A kiwi killed by a dog was recovered from a lifestyle block around Kerr Road. All dog owners in the area have been visited by the Backyard Kiwi project manager to raise awareness about the threat’s dogs pose to their local kiwi.
• Kiwi Movement: One of the tagged kiwis from the recent translocation has moved east, all the way out to the Pataua North Landcare area – making use of the “Kiwi Corridor”.
• Piroa-Brynderwyn High Value Area
• Possum Control: Possum control was conducted on 200ha at Lang’s Beach Estate and a further 400 ha adjacent to the Estate. The control was organised by Waipū Kiwis and carried out by professional trappers. The impact of well organised professional toxin placement on forest health will be assessed and the lessons learned applied to similar programs carried out by volunteers in regenerating native forest. • Feral Pig Control: Two new traps targeting feral pigs were purchased and deployed. One is a new modular design allowing deployment in places with difficult access. • Predator Monitoring: New trail cameras to monitor feral pigs and behaviour of other pest animals were purchased. |
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A New Celium Hub installed on Bream Tail Farm to monitor the predator traps there and in the Piroa-Brynderwyn High Value area. • Weed Control: A moth plant campaign has been very successful in Waipū and Mangawhai. Over 14 bags of seed pods were collected at drop-off bins in both towns, and locals have helped to identify particularly bad areas of infestation. One of the worst areas of moth plant was discovered in a Waipū subdivision, where the plant has been ploughed into the ground and will be tackled by a volunteer event. |
• Kai Iwi High Value Area
• Predator Control: Stoat traps have been flown into remote areas of Wekaweka ready for deployment. Forty stoat traps currently being placed on private land adjoining the Taharoa Domain. The bait station network at Kai Iwi is being upgraded ready for the Spring pest control.
• Pest plants: Team Vegetation have done a great job this month working on wilding pines and acacia control around Lake Waikare.
• Mid-North High Value Area
• Predator Control: Following the well-attended Pest Control Wānanga at Akerama Marae, the Mid-North High Value Area has been busy supplying traps into different groups including Doubtless Bay Sea Scouts, Iwi Kiwi Waitangi, Retreat Rd Trappers, Purerua Pest Area, Taronui Pest Area, Kerikeri Peninsula CPCA, Ōkaihau Farmers, Waihou Valley, Waipapa West Trap Library and Moekau Native Forest Restoration Trust. Ferrets have been sighted at Waipapa West and Puketōtara and extra traps have been deployed.
• Te Waka Kaitiaki Whenua: The education program for schools and marae is nearing 30 school visits with the conservation message. A film crew from Princess Cruises visited Kāretu School with Te Waka to film the presentation for engagement with their cruise passengers.
Kauri DieBack
Northland Rugby Union
Council have supported the Northland Rugby Union with a three-year campaign to raise awareness about kauri dieback in Northland. Influential players are engaged to help promote behaviour change and improve forest hygiene awareness around key recreational activities such as hunting and bush walking. Filming of three short videos using well-known, high-profile players have been completed and a shortened version of the first of these was presented on TV One news recently. |
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Local film crew from Big Fish Creative working with Northland Rugby players to shoot a video about forest hygiene when hunting. |
Kauri Protection Fencing Fund
Another fencing project was signed off at Maunganui Bluff. This large project (2,300 m) will help protect a significant old growth Kauri stand on Maunganui Bluff.
Management Plans
Kauri dieback management plans continue to be developed for all positive sites as well as those that are identified as medium – high risk sites. All site occupiers receive advice and a basic management plan about how to best protect their kauri and forest from kauri dieback and other diseases.
Ground Truthing Sampling Results
Sampling has been suspended during winter and will resume when weather and ground conditions improve. All samples taken by both kauri dieback staff and contractors have now been analysed and the results are detailed in Tables 1 and 2.
Table 1: Kauri Dieback Staff Sampling Results - October 2018 to June 2019
Month |
Number of Sites Surveyed |
Tree Sample Results |
|||
Surveyed |
Positive |
No. Trees Sampled |
Positive |
Negative |
|
October |
5 |
3 |
17 |
6 |
11 |
November |
11 |
1 |
38 |
2 |
36 |
December |
11 |
4 |
44 |
10 |
34 |
January |
15 |
2 |
40 |
6 |
33 |
February |
1 |
0 |
2 |
0 |
2 |
March |
8 |
1 |
15 |
1 |
14 |
April |
2 |
0 |
4 |
0 |
4 |
May |
4 |
0 |
7 |
0 |
7 |
June |
2 |
0 |
5 |
0 |
5 |
Year Total |
59 |
11 |
172 |
25 |
146 |
Table 2: Contractor Sampling Results - April to June 2019
Number of Sites Surveyed |
Tree Sample Results |
||||
Surveyed |
Positive |
No Trees Sampled |
Positive |
Negative |
|
124 |
10 |
264 |
19 |
245 |
|
Northland Pig Hunters
Kauri dieback staff continue to attend pig hunting events in the region to raise awareness about kauri dieback. The aim of council’s involvement in these competitions is to establish a positive ongoing relationship with pig hunters (a potential kauri dieback vector) and enable better uptake of hygiene practices and wild pig eradication. Events attended during the month included:
• Opononi pig hunting competition: Hygiene kits were handed out to hunters at this competition on 20 July.
• Northland Pig Hunting Club’s Les Jenkins Memorial competition: Held on 28 July at Ruakaka, council created and sponsored two extra divisions to include a heaviest sow division, and a hygiene division with a 1st 2nd and 3rd prize in each.
Takou Bay Kauri Sanctuary
Landowners in the Takou Bay catchment area were given basic kauri dieback hygiene supplies and information at a hui hosted by Ngāti Rēhia on 3 July. Ngāti Rēhia then hosted a hui for Minister Shane Jones to officially open their kauri sanctuary in Takou Bay on 12 July, where the Minister announced further funding for the kauri sanctuary project. Council staff attended the hui. Scion have tested the soil where the trees are to be planted and it has tested disease free. Council staff are supporting the project sharing advice on biosecurity hygiene measures, pest management, and biodiversity with Ngāti Rēhia and surrounding landowners. |
|
Minister Shane Jones planting one of the first kauri in Ngāti Rēhia’s kauri sanctuary with local kaitiaki. |
MARINE BIOSECURITY
Ōpua Sabella Incursion
Following an incursion of Sabella in Ōpua in 2018, an eradication response has been underway. The decision to proceed with another round of diving (made during an expert workshop held at council on 7 June 2019) was reported to councillors at a workshop on 17 July. It is expected that we will have adequate data following this next phase of diving to be able to create an appropriate decision-tree for continuing the eradication attempt or changing focus to a long-term management programme. Council will continue working with stakeholders and local mooring owners with response updates, media releases, and encourage boaties in the area to be vigilant and limit any further spread. A ‘See it? Report it!’ Facebook post on fanworm was also included as part of Biosecurity Week (22─28 July).
Tutukaka Sabella surveillance
Following an incursion of Sabella at Tutukaka Marina in 2015, annual (with the exception of 2016) surveillance has been conducted. No Sabella has been found during these surveys to date, with the 2019 diving completed in the second week of July. Next year (2020) will be the fifth survey and if no Sabella is found then, eradication will be deemed successful.
Whangaroa Sabella surveillance
In 2017, a vessel was found with mature Sabella on its hull in the Bay of Islands that had also previously spent several months in Whangaroa Harbour. The Ministry of Primary Industries and council initiated a surveillance programme to ensure no Sabella was introduced into Whangaroa Harbour. The 2019 round of diving was completed on the 23 July with no Sabella found.
Inter-Regional Marine Pest Pathway
The final report on the Inter-Regional Marine Pathway Plan (IRMPP) consultation was reviewed and agreed on by the Top of the North Marine Biosecurity Partnership on 27 June. On 16 July, the report and recommendations for the next steps were presented to council and approved. The remaining Top of the North regions are currently providing the results to their councils. The next steps will involve progressing with an option analysis to identify a preferred option for managing marine pests inter-regionally, and presenting this option, along with supporting evidence, to council for consideration in early 2020.
In-water Cleaning Workshop
On 15 July, members of the marine biosecurity team attended a workshop discussion on the barriers to the uptake of in-water cleaning for vessel biofouling management, and potential solutions to better uptake. The workshop was run by Tonkin & Taylor Ltd on behalf of the Ministry of Primary Industries. Industry, science, regulatory, and policy stakeholders were present and it was a good opportunity to gather different perspectives and viewpoints on this issue. There was clear support from those present for the requirement of clean hulls, but at the same time the request for practical solutions to enable this – for example approved technologies, national standards, availability of infrastructure, and the ability to clean within the 12 nm zone.
PEST PLANTS
Eradication Plants
Eradication control work has focused on completing the biannual ochna control program. Ochna, which is one of our three largest programmes by infestation site number, is now 95% complete with 19 central Whangarei sites remaining.
Officers have also been following up on a large infestation of batwing found by students at Hurupaki School, outside our current known range. Searches around the initial seedling site located seven well established adult plants in a small bush remnant on the school field. Due to its proximity to Pukenui Forest, officers have begun planning for delimitation surveillance, and a programme to raise community awareness and reporting in the potential infestation zone around this site. |
|
Large adult batwing vines removed from the newly identified batwing infestation at Hurapaki School – originally identified by school students working with the Enviroschools program. |
Weed Workshops
The first two weed workshops of our annual programme have been held in:
• Council chambers – 24 participants
• Paparoa – 11 participants
These workshops focus on identification of the more common pest plants in Northland, the risks they represent to our environment, and on practical control methods. As always, these workshops are extremely well received, with very positive feedback from keen weed warriors. Three more workshops are scheduled for around Northland with a further request for a one to be held at Kāretu Marae near Russell Forest.
Biosecurity Week 2019
|
Biosecurity Week is an annual initiative from the New Zealand Biosecurity Institute where those working in the industry highlight the work each organisation is doing to protect their community and New Zealand. Biosecurity Week 2019 (22 – 28 July) was promoted through council’s social media channels with regular posts and a competition. The promotion was well received through Facebook with a total reach of 22,716 and 1,459 engagements on our posts over the week. One day each was dedicated to different Biosecurity work-streams. The most popular post featured Tiakina Whangārei and their $10 rat trap starter kit for local residents which had a total reach of 3,211 and 267 engagements. Craig Gordon, winner of the Facebook Bioweek 2019 competition, with his Community Prize Pack. |
RIVERS
LTP Projects
Rivers |
Comments |
Awanui |
The team has prioritised work on the final design, to allow identification of affected landowners. Letters with the scheme details and implications for landowners will be delivered in August. |
Matangirau |
An archaeology assessment has commenced with the Archaeologist meeting with members of the community to identify sites of significance. |
Kawakawa - Taumārere |
The Taumārere River Working Group meeting was held on 22 July. The team will proceed with more modelling and report back to the committee in September. |
Whāngārei |
Work on Woods Road Flood wall is progressing, with rip-rap placed and the retaining wall nearing completion. The contract completion date is 31 August. |
Panguru |
Work is progressing with the archaeology assessment and resource consent. We are expecting to lodge for resource consent by mid August. |
NATURAL HAZARDS
Work Streams |
Status |
Comments |
Awanui Flood Model |
90% |
Calibration of the hydrological model is nearing completion. Once this is completed the full catchment model will be used to produce flood maps incorporating the scheme design. |
7.2.6 STRATEGY, Governance And Engagement
PROPOSED REGIONAL PLAN
The council’s decisions (excluding GE/GMOs) were notified on 4 May 2019. There was a 30 working day appeal period for submitters to lodge appeals to the Environment Court. A total of 23 appeals were received. These appeals canvas many parts of the Proposed Plan (rules, objectives, policies and maps), but there are a number of provisions that are not subject to appeal. Council has developed an ‘Appeals Version’ of the Proposed Regional Plan, which is available to view on our public website.
In addition to the 23 appeals, council has received notices from 40 separate submitters wishing to become a ‘party’ to the Environment Court proceedings (under s274 RMA). These 40 submitters served approximatley 180 separate notices across the various appeals. The Environment Court will be conducting an initial callover conference on 14 August 2019.
Council also released its decision (at the July Council Meeting) in relation to matters raised in submissions on the addition of provisions for genetically modified organisms. This was publically notified on 3 August 2019. There is a 30 working day period for submitters to appeal the decision to the Environment Court.
NATIONAL INITIATIVES
Changes to the Resource Management Act 1991 (RMA)
The government has announced it intends to amend the RMA in two stages – the first being to address issues with resource consenting, enforcement and Environment Court provisions and to reverse a number of changes by the previous government. Stage two will be a more comprehensive review of the system as a whole and in particular interactions with other law such as the Local Government, Land Transport and Climate Change Response Acts.
Emissions Trading Scheme
The government has announced changes to the Emissions Trading Scheme (ETS), which include:
• Phase down rates for allocation to industrial activity (a gradual reduction in the free allocation) of 1% annually from 2021-2030 growing to 2% from 2031-2040 and to 3% for 2041-50.
• Changes to the forestry settings in the ETS including requiring all forests registered from 1 January 2021 to use the averaging accounting system, the ability to offset liabilities by planting elsewhere, and foresters not being liable for adverse events (such as storm damage).
A discussion document setting out proposals for agriculture sector to enter the ETS has also been released.
Productivity Commission
The Productivity Commission has release its draft report on local government funding and financing. This is the subject of an item to the August council meeting.
DISTRICT PLANNING
Council lodged a submission on Whangārei District Council’s suite of ‘Urban and Services’ Plan Changes on 3 July.
ECONOMIC DEVELOPMENT
Investment and Growth Reserve – Projects Report
Project |
July update |
Future developments/ reporting |
Resources Enterprise Limited (REL) |
Letter sent from CEO requesting immediate payment of interest owning and update on investor. |
Work with REL to protect council investment. |
Hundertwasser Art Centre (Whangārei) |
Monthly progress report for June received. |
Awaiting invoice for second payment of $500,000 (due at 50% completion). |
Manea Footprints of Kupe |
Letter sent to Trust reaffirming councillors position on ownership, followed up with proposed solution. |
Work with Trust/FNHL to agree resolution to finalise funding agreement. |
Northland Water Storage and Use |
Signed funding agreement received from MBIE. Submissions for tender to undertake pre-feasibility demand assessment and design study closed 15 July. |
Appointment of consultants to undertake pre-feasibility work and meetings of project governance groups. |
Te Hononga / Kawakawa Hundertwasser Park Centre |
Project status report to 27 June received. |
Awaiting receipt of next progress report and third invoice. |
Extension 350 |
Progress report for quarter 4 2018/19 received. |
Continue receiving progress reporting and invoicing as per funding agreement. |
Extended Regional Promotion |
Nothing to report. |
Next report due August 2019 for second six-months 2018/19. |
Twin Coast Cycle Trail (TCCT) |
Nothing to report. |
Awaiting further progress report on remaining four easements to complete funding commitment. |
Other Activities
• Letter sent to Northland Inc informing of council agreement to Statement of Intent 2019-2021.
ONLINE CHANNELS
Highlights
The new online magazine section of the website went live on 12 July: www.nrc.govt.nz/ournorthland
This section will be used to publish stories about the work that the council is doing with the community and around Northland.
Most popular post on Facebook – Announcement of the new Bream Bay Link bus service starting 1 August. The Bream Bay Link will run every Thursday from Kaiwaka, through Mangawhai, Waipū and Ruakaka to Whangārei. The post was seen by over 17,000 people.
Key Performance Indicators |
Mar-19 |
Apl-19 |
May-19 |
Jun-19 |
Jul-19 |
WEB |
|
|
|
|
|
# Visits to the NRC website |
28,000 |
26,100 |
25,200 |
23,100 |
23,200 |
E-payments made |
6 |
4 |
5 |
2 |
24 |
# subscription customers (cumulative) |
1,179 |
1,191 |
1,176 |
1,184 |
1,202 |
SOCIAL MEDIA (cumulative) |
|
|
|
|
|
# Twitter followers |
1,430 |
1,439 |
1,444 |
1,448 |
1,460 |
# NRC Facebook fans |
7,968 |
8,130 |
8,515 |
8,641 |
8,756 |
# NRC Overall Facebook Reach |
219,300 |
189,900 |
267,900 |
138,600 |
167,300 |
# NRC Engaged Daily Users |
27,000 |
8,314 |
16,200 |
4,753 |
9,264 |
# CDEM Facebook fans |
16,600 |
16,700 |
16,700 |
16,900 |
17,000 |
# CDEM Overall Facebook Reach |
31,900 |
45,400 |
15,400 |
49,800 |
66,400 |
# CDEM Engaged Daily Users |
2,132 |
2,710 |
1,172 |
6,514 |
6,317 |
# Instagram followers |
712 |
736 |
755 |
802 |
853 |
MĀORI ENGAGEMENT
Attendees at Roma Marae, Ahipara - 19 July 2019 |
Te Oneroa-a-Tōhē Board Public consultation and hui have begun with good attendance at events for the development of the Beach Management Plan. The website has gone live with positive media coverage featuring NRC staff and Iwi representatives by Te Hiku Media. https://tehiku.nz/te-hiku-tv/haukainga/10556/beach-plan-back-on-board |
TTMAC
Report by Māori Technical Advisory Group (MTAG) to review Te Taitokerau Māori and Council Working Party 2016 – 2019 presented at TTMAC formal July meeting for further feedback and recommendations.
Pōwhiri – Kaiārahi Tikanga Māori
He mihi nunui tēnei ki te Kaiārahi Tikanga Māori hou o Te Kaunihera ā Rohe o Te Taitokerau, ko Arama Morunga. We were proud to conduct the pōwhiri for our new Kaiārahi Tikanga Māori: Māori Cultural Advisor, Arama Morunga with support from local hapū Te Parawhau and Iwi Relationships Managers/staff from FNDC, WDC and KDC. NDHB staff and whanau to support pōwhiri and handover – Kaiarahi Tikanga Māori |
|
Otaika River work celebrated
On 26 July, council’s Enviroschools team and Whitebait Connection led the celebration of years of work on the Otaika awa by Otaika Valley and Portland school students, partly funded by the Whangārei Harbour Catchment Group. The celebration included kaumatua unveiling two signs designed by students – one showing people how to care for inanga / whitebait and another sharing the history of the planting, pest control and water quality testing mahi.
Far North Project Pest Control skills course
On 31 July and 1 August, the final Project Pest Control skills course for 2019 was held at Lonsdale Park, near Kāeo. Over 50 senior students from Abundant Life School (Kaitāia), Kaitāia College, Northland College, Ōkaihau College and Opononi Area School gained skills in animal pest trapping, possum skinning and machine-plucking, laying trap lines and health and safety. DOC Livestock and NDHB staff joined council’s Biosecurity team members in delivering tuition.
MARKETING AND ENGAGEMENT
Environmental Leaders Fund
Thirty applications were made from schools to the 2019 Environmental Leaders Fund. Twenty-six of these applications were successful, either being fully funded or receiving a contribuiton of their application. A total of $2,804 was granted for Biosecurity trapping hardware and the full $20,000 for environmental projects was apportioned to projects that included several native plant nurseries, SCHMAK kits for Water Quality monitoring, and a number of native restoration and riparian planting projects.
Weed Workshops
The Wise Up To Weeds FREE Workshops were held at locations around Northland from Thursday 18 July – Friday 2 August. The Biosecurity Pest Plants team offered advice on identifying some of the worst weeds and how to deal with them.
LOCAL GOVERNMENT OFFICIAL INFORMATION (LGOIMA) REQUESTS
Month |
LGOIMA requests |
LGOIMA
requests |
July |
15 |
15 |
August |
20 |
|
September |
7 |
|
October |
5 |
|
November |
10 |
|
December |
9 |
|
January |
11 |
|
February |
15 |
|
March |
9 |
|
April |
12 |
|
May |
19 |
|
June |
11 |
|
TOTAL LGOIMA REQUESTS RECEIVED |
143 |
|
Total LGOIMA requests not responded to within 20 working days* |
1 |
1 |
* In July REQ. 595751 requesting all documentation for resource consent 40748 held by Taumata Plantations Ltd was not responded to within 20 working days, due to a technical error.
7.2.7 Customer Service – Community Resilience
CUSTOMER SERVICES
Telephone Inbound Call Statistic & Enquiries
|
July 2019 |
Target |
Call volume via Customer Services |
2608 |
|
Conversion rate |
97.8% |
>95% |
Average wait time |
6 sec |
|
Calls answered in under 30 sec |
96.4% |
>90% |
Inbound call volumes for July were up on June and were comparable to the same period last year. Over 20% of new enquiries were for district council activities and a large proportion of those enquiries were related to rates.
The second largest group of enquiries was for the biosecurity team, with over 150 animal and plant pest enquiries accounting for most of the activity.
Satisfaction Monitoring
• 2019 Resident Survey
We are waiting for the final version following some questions to the survey company about the weighting targets they have applied for the various demographics. The finalised report will be released and published on our website.
In the 2019 survey, the council has continued to show improvement in the way we interact with our customers and respond to their enquiries.
2019 |
2018 |
2017 |
Two-year difference |
|
Staff took time to understand your needs |
59% |
56% |
48% |
11% |
Staff responded to you quickly |
63% |
56% |
48% |
15% |
You received the information you needed |
56% |
49% |
36% |
20% |
Staff kept you informed |
56% |
48% |
40% |
16% |
You were treated fairly |
62% |
58% |
55% |
7% |
Staff did what they said they would do |
61% |
54% |
50% |
11% |
Staff gave accurate and professional advice |
58% |
58% |
52% |
6% |
Staff know what they're doing and apply laws and policies in good faith |
67% |
59% |
47% |
20% |
In addition to the main survey, in which participants are selected randomly from the electoral rolls, this year for the first time we publically advertised a link to allow residents to self-select participation.
The results for this cohort have been reported separately, and generally they have expressed less satisfaction and different communication preferences than the randomly selected survey group. As this second group is more digitally focused, we will continue to develop solutions to better meet their needs.
• Feedback Cards, Compliments and Complaints
Feedback cards have been included with compliments and complaints, as appropriate.
Compliments received |
Total |
Service provided by a specific person · K McGuire - Consents · S Morgan, V Harwood, C Nyberg - CDEM |
2
|
Total compliments recorded |
2 |
Complaints received |
Total |
Standard of service provided |
2 |
Staff or contractor behaviour / attitude |
1 |
Lack of information or communication |
1 |
Total complaints recorded |
4 |
Three of the complaints related to bus services; bus early, service cancelled and the driving. All complaints have been resolved. The communication complaint has resulted in improvements to our processes to avoid similar issues arising in the future.
CIVIL DEFENCE EMERGENCY MANAGEMENT
Warnings and Activations
A MetService severe weather warning for heavy rain was issued on Wednesday 3 July. This resulted in a fairly even spread of 30-60mm of rain throughout the region, providing some relief to rivers and dry ground conditions.
National Tsunami Warning
Debriefs and learnings are continuing at a national level following the Kermadec Islands earthquake of Sunday 16 June and the subsequent advisories and warnings issued by the Ministry of Civil Defence and Emergency Management (MCDEM).
CDEM Group and Coordinating Executive Group (CEG)
The Northland CDEM Group and Coordinating Executive Group will next meet for their quarterly meetings on Wednesday 4 September.
Emergency Management System Reforms
The recently-appointed Minister of Civil Defence, Hon Peeni Henare, gave his first public address to the Emergency Media and Public Affairs (EMPA) conference in Wellington in early August but did not elaborate beyond what had already been announced about emergency management system reforms and the establishment of a new National Emergency Management Agency to replace the existing ministry, MCDEM.
Possible LGNZ Training for Mayors
The Mayor of Tasman District during February’s Pigeon Valley fires, Richard Kempthorne, has approached LGNZ with his thoughts on relevant training for mayors on their CDEM responsibilities. He has also offered to play a part in that training. If this goes ahead, it would be well worthwhile as Mayor Kempthorne’s performance through that time would provide an extremely strong example.
Meetings and Workshops with Partner Agencies
Meetings and workshops – either led by the CDEM team or the partner agency – were held with EQC (EQC’s role after an event [earthquake, flood, landslip, eruption, tsunami] and what damage is covered to what level), MBIE (temporary shelter and accommodation) and Northland DHB (hospital evacuation plans) and a Whangarei Airport review of security arrangements in response to a range of potential incidents.
Far North Tsunami Sirens
A longstanding difference between Far North District Council and its electricity supplier regarding the cost of operating tsunami sirens has now been resolved, allowing further sirens to be installed. Tsunami information boards are also being installed in both the Far North and Kaipara (Mangawhai).
TRANSPORT
Regional Land Transport Planning
• Road to Zero – National Road Safety Strategy 2020/2030
On 17 July 2019, the Ministry of Transport released the draft National Road Safety Strategy for the period 2020 to 2030 under the title “Road to Zero”.
The content of this draft strategy and the feedback received from the Regional Road safety Action workshop held on 12 June 2019 will be analysed to identify areas of commonality and areas of difference that will be used in the Regional Transport Committee’ s submission on the draft strategy.
PASSENGER TRANSPORT ADMINISTRATION
Total Mobility
Total Mobility (TM) figures are reported one month in arrears, due to the required information being unavailable at the time of the agenda deadline.
|
Total Clients |
Monthly Actual Expend |
Monthly Budget Expend |
Variance |
Year/Date Actual Expend |
Year/Date Budgeted Expend |
Variance |
June 2019 |
1,504 |
$17,593 |
$25,000 |
-$7,407 |
$215,502 |
$300,000 |
-$84,499 |
Total Mobility End of Year Figures
Actual spend for the 2018/19 financial year was $215,502 as against $179,164 for the 2017/18 financial year. The increase of $36,338 can be attributed to the new transport operator being on the scheme for a full financial year, and increased promotion of the Scheme.
Total Mobility Awareness Campaign
During the month, the Total Mobility Scheme was advertised on the local radio station. The goal was to reach the target market through a new media channel. It will take time to ascertain the impact these advertisements will have on the scheme.
Operational Statistics
June 2019 |
Actual |
Budget |
Variance |
Year/Date Actual |
Year/Date Budgeted |
City Link Passengers |
29,382 |
25,897 |
+3,485 |
329,242 |
309,414 |
CityLink Revenue |
$43,056 |
$48,829 |
-$5,774 |
$573,096 |
$612,014 |
Mid North Link Passengers (revised 1 May 2019) |
160 |
240 |
-80 |
2,114 |
4,660 |
Mid North Link Revenue |
$583 |
$1,067 |
-$483 |
$7,656 |
$28,666 |
Hokianga Link Passengers |
47 |
78 |
-31 |
427 |
534 |
Hokianga Link Revenue |
$530 |
$1,017 |
-$487 |
$5,299 |
$6,806 |
Far North Link Passengers |
447 |
593 |
-146 |
6,660 |
7,549 |
Far North Link Revenue |
$1,063 |
$1,483 |
-$420 |
$15,852 |
$18,871 |
In regards to the year-end financial outcomes of the CityLink Bus Service, it should be noted that: -
• The operational deficit was reduced by $92,000 due to the Whangarei Trials not proceeding in 18/19;
• Additional subsidy brought in (due to claiming labour at charge out rate - unbudgeted) has assisted in offsetting the negative impact of the reduced CityLink fares (farebox revenue loss); and
• The Transport Department overall had a budgeted nett cost to council of approximately $180,000 for 18/19. The actual nett cost to Council was approximately $40,000 for 19/20. The additional subsidy brought in (by the labour being claimed at charge out) has seen that budgeted deficit reduce by approximately $140,000.
Maritime
Twenty incidents were recorded for July, including three oil spills of minor nature, and the usual speeding, light failures, and mooring issues.
Staff were also involved in some difficult incidents and following a serious accident with an individual and a number of vessels it then required assistance from police.
Staff had meetings in Whangārei and the Bay of Islands with Tuia 250 organisers. Planning is well in hand for the Northland part of the event.
The council vessel Waikare is now off the slip in Whangārei, with most work complete. The last engine is still being refurbished.
A number of staff have attended training, including management, Microsoft and CIMS training.
Rolling maintenance of aids-to-navigation (ATON) is on-going. The maritime team provided on water monitoring services to other departments. Work is progressing to make the data from the wave-rider buoy available.
The General Manager, Harbourmaster and Deputy attended the Port and Harbour Safety Code Forum and Harbourmaster Special Interest Group meeting in Auckland. A wide range of the latest thinking in risk prevention was the theme. Harbourmasters have created some subgroups to work on coordinating and matching bylaw rules and boating education around the country.
Attachments/Ngā tapirihanga
Council Meeting item: 7.3
20 August 2019
TITLE: |
Reporting on Long Term Plan 2018-2028 Performance Measures for the Year Ended 30 June 2019 |
ID: |
A1227484 |
From: |
Kyla Carlier, Corporate Planning Manager |
Executive summary/Whakarāpopototanga
This report presents the results of council’s key performance indicators, as set and adopted in the Long Term Plan 2018–2028, for the financial year 1 June 2018 to 31 July 2019.
That the report ‘Reporting on Long Term Plan 2018-2028 Performance Measures for the Year Ended 30 June 2019’ by Kyla Carlier, Corporate Planning Manager and dated 7 August 2019, be received.
Background/Tuhinga
The Long Term Plan 2018-2028 comprises 51 key performance indicators that measure aspects of council’s service provision across five activity groupings:
· Governance and engagement
· Regulatory services
· Environmental services
· River management
· Customer services and community resilience
Each performance measure provides a snapshot of the activity’s performance.
At the time of writing this report two measures were still outstanding while data analysis is completed. One of these outstanding measures is establishing baseline data during this first year of reporting, and so will be recorded as ‘achieved’ once analysis is completed.
Of the remaining 49 measures, 38 have been achieved, and 11 have not been achieved. A summary of all measures is set out in the table below. The full results will be in the final annual report which is scheduled to be presented to council for adoption next month.
Governance and engagement | Ratonga whakahaere whakauru
1.1 Governance |
|
1.1.1 Maintain effective, open and transparent democratic processes. |
|
100% of official information requests that are responded to within 20 working days. |
Not achieved End result 98%. All requests that were not responded to within the 20 working days were reported to council in the Chief Executive’s report. |
Council receives a favourable ("unqualified") audit opinion on its Long Term Plan, Annual Plan, and Annual Report 100% of the time. |
Achieved |
Elected members attend council meetings 90% of the time. |
Achieved |
The percentage of the community surveyed that is satisfied with the way council involves the public in the decisions it makes is improved. |
Achieved |
1.2 Māori relationships |
|
1.2.1 Establish enduring and robust governance relationships between council and Māori of Taitokerau |
|
Ten meetings of the Te Taitokerau Māori and Council Working Party are held each calendar year. |
Achieved |
1.2.2 Provide opportunities for Māori to participate in council processes |
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Percentage of time council meets all relevant requirements of Treaty of Waitangi settlement legislation. |
Not achieved 99.8% of requirements were met. This was not achieved in full due to three bore consent applications failing to be circulated to Treaty settlement groups. |
Targeted pre-consultation engagement is undertaken with Māori during council's statutory Resource Management Act planning processes 100% of the time |
Achieved |
1.3 Communication and engagement |
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1.3.1 Support and deliver environmental education initiatives |
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Percentage of schools and kindergartens participating in the Enviroschools programme is maintained or increased. |
Achieved |
1.3.2 Promote effective community engagement |
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Number of subscribers to online and social media channels increases by 25% annually |
Achieved |
Annual engagement with 100% of council's Collaborative Community Engagement Groups |
Not achieved Engagement was achieved with 128 out of 133 active groups. Where engagement was not achieved this was because either email contact was sufficient, no work was required during the year, or contact could not be made with the group. |
1.4 Economic development |
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1.4.1 Invest in economic development projects and ventures within Northland to improve Northland's economic performance |
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Northland Inc's achieves compliance with Local Government Act requirements relating to its Statement of Intent 100% of the time(SOI) |
Achieved |
100% of Northland Inc's SOI key performance indicators are achieved by 30 June each year. |
Not achieved 14 of 17 key performance indicators achieved. The two that were not achieved related to the facilitation of NZ Trade and Enterprise and Callaghan Innovation grant funding. |
Regulatory services |Ratonga a ture
2.1 Planning and policy |
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2.1.1 Develop and maintain regional planning documents for the management of Northland's natural and physical resources |
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Develop a new Regional Plan - hold hearings and release council decisions on the proposed Regional Plan in 2018/19. |
Not achieved Decisions on GE/GMO provisions not yet released - expected to be released early 2019/20. |
Make changes to the new Regional Plan and Regional Policy Statement (RPS) as necessary to implement national direction and to respond to resource management issues. |
Achieved |
2.2 Consents |
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2.2.1 Provide efficient and effective processing and administering of resource consents |
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98% of all resource consent applications are processed within the statutory timeframes. |
Achieved |
2.3 Monitoring (compliance monitoring) |
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2.3.1 Provide efficient and effective compliance monitoring of resource consents |
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90% of monitored resource consents are not graded as significantly non-compliant. |
Achieved |
90% of monitored permitted farm dairy effluent activities are not graded as significantly non-compliant. |
Not achieved 44 of 212 activities (20%) were significantly non-compliant. Compliance is dependent on landowner behaviour which is influenced by factors outside of council's control. |
100% of consents for industrial, municipal sewage and farm discharges, and major water takes requiring monitoring, are monitored as per the council's consent monitoring programme. |
Not achieved 92.8% of consents were monitored in accordance with the programme. This is attributed to high staff turnover. |
2.3.2 Efficient and effective response to and resolution of reported environmental incidents |
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80% of environmental incidents with more than minor effects reported to the Environmental Hotline are resolved within 30 working days. |
Achieved |
2.4 Monitoring (State of the environment monitoring) |
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2.4.1 Gather and make available information on the suitability of water bodies for swimming and shellfish collection |
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Monitor at least 50 popular swimming sites weekly during the summer for faecal indicator bacteria and publish the results. |
Achieved |
Monitor at least 15 popular shellfish collection sites weekly during the summer and publish the results. |
Achieved |
2.4.2 Monitor the life-supporting capacity of water (fresh and marine), uses and values |
|
At least 90% of sites monitored for macroinvertebrates showing improved or maintained trend in their Macroinvertebrate Community Indices (MCI). |
Not achieved 83% of sites showed maintained or improved trend. |
At least 90% of fish monitoring sites showing improved or maintained trend in their Index of Biotic Integrity (IBI). |
Reporting pending |
At least 90% of lake sites monitored for ecological status showing improved or maintained trend in their Submerged Plant Indices (SPI). |
Achieved |
At least 90% of lake sites monitored for level of nutrient enrichment showing improved or maintained trend in their Trophic Level Indices (TLI). |
Not achieved 75% of monitored lakes showed improved trend |
Comprehensively monitor at least 40 coastal sites monthly for general water quality. |
Achieved |
2.4.3 Monitor the standard of ambient air quality in Northland |
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100% of air sheds meet the national air quality environmental standards. |
Achieved |
Environmental services | Ratonga i te taiao
3.1 Natural Hazard Management |
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3.1.1 Identify and make available information on areas potentially affected by natural hazards through mapping |
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28 (21.7%) of river catchments flood-mapped to identify river flooding hazards. |
Achieved |
3.2 Hydrology |
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3.2.1 Provide information on water resources including rainfall, flood levels and ground water |
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Flood level monitoring is accurate to enable flood warnings to be developed 100% of the time |
Achieved |
3.3 Biosecurity |
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3.3.1 Promote community involvement in pest management |
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Increase in hectares of land under Community Pest Control Area Plans (CPCAs) by 5000 ha per annum. |
Achieved |
Increase in kiwi populations within council supported programmes by 2% annually |
Reporting pending |
3.3.2 Implement measures to slow the introduction and spread of new and established marine pests |
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Survey at least 2000 vessel hulls for marine pests each year as part of the Marine Pathway Management Plan |
Achieved |
3.4 Biodiversity |
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3.4.1 Maintain and enhance indigenous biodiversity and eco-systems around our rivers, lakes, wetlands and coastal margins |
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13 wetland enhancement and protection projects funded via Efund for 2018/19 |
Achieved |
11,000 plants provided through CoastCare programme for 2018/19 |
Achieved |
100% of objectives that are set out in annual work plan for Freshwater Improvement are met |
Not achieved Six out of ten objectives achieved across two projects. Two are delayed, but all are on track for delivery within two to five years. |
3.5 Land and water |
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3.5.1 Promote improved water quality by providing advice and funding on sustainable land management, soil conservation, and biodiversity through farm management and catchment management initiatives |
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Area hectares (ha) of land being actively managed under a sustainable farm environment plan is increased by 25,000 ha annually |
Achieved |
Area (ha) of highly erodible land being actively managed under a farm environment plan is maintained or increased. |
Achieved |
6,000 subsidised poplar poles are provided for erosion-prone land by the Flyger Road nursery in 20185/19 |
Not achieved 5,000 poles were provided. Expansion of the nursery impacted pole delivery. |
Kilometres of waterway margins protected to reduce sediment, nutrient run-off and general contamination of water, funded by the Environment Fund, is increased. |
Achieved |
River management | Ratonga whakahaere a awa
4.1 River management |
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4.1.1 Build, monitor and maintain flood protection schemes to protect life and property |
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Zero flood events occurring as a result of failures of flood protection systems for the Awanui, Whangārei, and Kāeo schemes below specified design levels. |
Achieved |
Customer services and community resilience | Ratonga manawaroa a hapori
5.1 Customer services |
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5.1.1 Providing meaningful customer service |
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Percentage of customers surveyed that are satisfied with the quality of service received following an interaction with council is maintained or increased |
Achieved |
5.2 Civil defence emergency management |
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5.2.1 Provide accurate and timely flood warnings to enable communities to take precautionary measures to protect life and property |
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Accurate flood warnings are issued in accordance with the council's flood warnings procedures 100% of the time |
Achieved |
5.2.2 Maintain an effective civil defence emergency management system |
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Emergencies are debriefed within one month, and noted improvements are incorporated into the appropriate emergency operating procedures and response plans, 100% of the time |
Achieved |
5.3 Oil pollution response |
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5.3.1 Maintain an efficient and responsive oil pollution response |
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A regional oil spill response plan, including a minimum of 30 up-to-date trained responders, is maintained |
Achieved |
5.4 Harbour safety and navigation |
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5.4.1 Provide regional navigational safety control of shipping and small craft, provide aids to navigation to ensure the region's navigable waters are safe for people to use, and manage the region's moorings. |
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Operational safety management system for the pilotage areas of Whangārei and Bay of Islands complies with the Port and Harbour Safety Code 100% of the time |
Achieved |
Pilotage in the Bay of Islands is provided in accordance with the safety management system 100% of the time |
Achieved |
Reported aids to navigation faults are responded to within five working days, 100% of the time |
Achieved |
95% of moorings are either serviced within the past three years or booked to be serviced. |
Achieved |
5.5 Transport |
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5.5.1 Provide an efficient and effective public bus service |
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Number of passengers for the Whangārei urban bus service is maintained at 310,000 per annum. |
Achieved |
95% of passengers are satisfied with overall Whangārei bus service. |
Not achieved 92% of passengers were satisfied. Lower satisfaction due to service delays from traffic congestion, road works, and passengers not being informed of delays in time. |
5.5.2 Plan for the future transport needs of the region |
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Statutory transport planning documents including the Regional Land Transport Plan (RLTP) and Regional Public Transport Plan (RPTP) are developed and maintained |
Achieved |
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
Name: |
Jonathan Gibbard |
Title: |
Group Manager - Strategy, Governance and Engagement |
Date: |
14 August 2019 |
Council Meeting ITEM: 8.0
20 August 2019
TITLE: |
Executive Summary
The purpose of this report is to recommend that the public be excluded from the proceedings of this meeting to consider the confidential matters detailed below for the reasons given.
1. That the public be excluded from the proceedings of this meeting to consider confidential matters.
2. That the general subject of the matters to be considered whilst the public is excluded, the reasons for passing this resolution in relation to this matter, and the specific grounds under the Local Government Official Information and Meetings Act 1987 for the passing of this resolution, are as follows:
Item No. |
Item Issue |
Reasons/Grounds |
8.1 |
Confirmation of Confidential Minutes - 16 July 2019 |
The public conduct of the proceedings would be likely to result in disclosure of information, as stated in the open section of the meeting. |
8.2 |
Human Resources Report |
The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(a). |
3. That the Independent Financial Advisor be permitted to stay during business with the public excluded.
Considerations
1. Options
Not applicable. This is an administrative procedure.
2. Significance and Engagement
This is a procedural matter required by law. Hence when assessed against council policy is deemed to be of low significance.
3. Policy and Legislative Compliance
The report complies with the provisions to exclude the public from the whole or any part of the proceedings of any meeting as detailed in sections 47 and 48 of the Local Government Official Information Act 1987.
4. Other Considerations
Being a purely administrative matter; Community Views, Māori Impact Statement, Financial Implications, and Implementation Issues are not applicable.
[1] An intended environment outcome in a freshwater management unit (Interpretation, NPS-FM)
[2] The maximum amount of resource use available, which allows freshwater objectives (Interpretation, NPS-FM).
[3] Ministry for the Environment. 2016. A Guide to Identifying Freshwater Management Units Under the national Policy Statement for Freshwater Management 2014. Wellington: Ministry for the Environment.
[4] https://www.mfe.govt.nz/sites/default/files/media/Fresh%20water/nps-freshwater-ameneded-2017_0.pdf
[5] However, Horticulture New Zealand has appealed against the advice notes under the limits which set out how the allocation limits will be determined and applied.