Agenda of Kaipara Moana Remediation Joint Committee

Kaipara Moana Remediation Joint Committee item: 4.1

19 April 2021

TITLE:	Kaipara Moana Nursery Strategy Stage One
ID:	A1433891
From:	Alan Wilcox, Kaipara Uri Management Representative
Authorised by Group Manager:	Jonathan Gibbard, Group Manager - Environmental Services, on 13 April 2021

He Rāpopoto hautū / Executive summary

A team of experts has interviewed the majority of the nurseries within the Kaipara Moana catchment to identify what capacity exists to meet the plant supply requirements of the Kaipara Moana Remediation (KMR) Programme. The team has found that there is sufficient capacity within existing nurseries to expand to meet demand.

There are however specific needs to ensure there is a variation in species planted (i.e. taonga species) and to establish a seedbank of plants within the catchment. Nurseries run by Kaipara Uri entities (including affiliated marae) can be assisted to help with this, consistent with the investment objectives set out in the Kaipara Moana Remediation Memorandum of Understanding (MOU), and would support Manaaki Tangata (Human Capital) and Tātai Hononga (Social Capital) outcomes.

The Nursery Strategy does not support any centralised purchasing or underwriting of plants, but rather sees landowners and consumers ordering plants for two or three seasons in front of them. The strategy does support the KMR Programme, through the Joint Committee, determining the price it is prepared to pay for various grades of plants when supporting landowners with grants funding.

The strategy sets out high-level principles that can be further developed with an implementation plan as stage two, expected to be complete by July of this year.

Ngā tūtohu / Recommendations:

1. That the report ‘Kaipara Moana Nursery Strategy Stage One’ by Alan Wilcox, Kaipara Uri Management Representative and dated 13 April 2021, be received.

2. That the Joint Committee approve the Kaipara Moana Nursery Strategy Stage One report, included as Attachment 1 to this report, and endorse the following principles recommended in the Kaipara Moana Nursery Strategy to inform future remediation implementation outcomes:

a. Plants are grown to order from landowners and consumers (not based on requests from a centralised agency)

b. Preferred nurseries are identified by the KMR Programme and are monitored for plant quality standards for bio-security, health and safety, workforce, and eco-sourcing reasons

c. Prices are set at a level the KMR Programme is prepared to pay through grants funding for plants based on species and grades and reflecting a current market average.

d. The establishment of an intergenerational Kaipara Seedbank and database based on Mātauranga Māori and science.

e. The planting of taonga species for enrichment planting and biodiversity, along with standard remediation species.

f. Hapū and marae within the Kaipara Moana catchment are supported to develop nurseries to propagate taonga species, act as hubs for new nurseries or plant standing areas, and to provide an intergenerational seed bank.

g. Other organisations are encouraged to develop a workforce for planting activity, training provision and local marae kaitiaki, being sourced from communities residing within the Kaipara Moana catchment.

h. There is sufficient capacity within current nurseries to expand to meet KMR Programme requirements.

3. Agree to a budget of $35,000 to complete Stage Two of the Kaipara Moana Nursery Strategy, drawing on unallocated budget from Nursery Partnerships – plant propagation and supply Year 1 project (K2020-010).

Horopaki / Context

The Kaipara Moana Nursery Strategy (Nursery Strategy) recommends an approach to be taken to ensure an ongoing tree supply for the KMR programme. The Nursery Strategy is summarised in the attachments, with key findings emphasised here:

· There are 18+ nurseries operating in the Kaipara Moana catchment – including Kaipara Uri, commercial, and non-profit.

· Capacity to grow 20 million plants over 10 years for KMR Programme does exist within existing nurseries; i.e while some want to establish new nurseries, and should be free to do so, the KMR Programme should not be specifically seeking the establishment of new nurseries as existing nurseries could expand to cope with demand from KMR Programme.

· There is a general willingness by nurseries to expand and collaborate to meet KMR Programme demand.

· Strong community networks - connected through nurseries - are already undertaking revegetation work on land in the Kaipara Moana catchment.

· There is a keenness to contribute to “restoring mauri of the Kaipara” across all engaged parties.

· There are varying degrees of capacity and capability across nursery types.

· Opportunities and constraints for nurseries are often linked to workforce and training issues.

· Eco-sourcing / maramataka skills are only held by a few nurseries, although there is a general willingness to share knowledge.

As a way forward the Nursery Strategy recommends the following pathways:

1. Plants be grown to order from landowners (rather than being based on requests from a centralised agency acting on behalf of the KMR Joint Committee).

2. Plant quality production standards must be maintained and closely monitored for bio-security, health and safety, workforce and eco-sourcing reasons.

3. The KMR Programme should consider identifying preferred nurseries for supply, setting the price it is prepared to pay for plants based on species and grades and reflecting a current market average. This will enable all nurseries to compete on a fair basis and enable certainty in providing for the landowner grants scheme.

4. There is a need for an intergenerational Kaipara Seedbank that is Mātauranga Māori and science based.

5. Taonga species are needed for enrichment planting and biodiversity, and provision of these species to the planting mix could be Kaipara Uri and hapū lead.

6. Kaipara Uri and hapū nurseries can participate in a number of ways, including propagating taonga species, acting as hubs for new nurseries or plant standing areas, and providing an intergenerational seed bank.

7. There is a need for flexibility in grants funding to support planting, based on different circumstances of the land and ownership matters (as this will be addressed under the Kaipara Remediation Fund it is not part of the recommendations above).

8. There is a significant network of support in the Kaipara Moana catchment that can be drawn on for a workforce for planting activity, training provision and local marae kaitiaki.

The Nursery Strategy has provided a good understanding of the current state of nurseries across the Kaipara Moana catchment and their ability to support the KMR Programme. It has also set out principles for the KMR Programme that the Joint Committee can consider. If these principles are supported, it is proposed a detailed implementation plan is developed as a ‘Stage Two’ to the Nursery Strategy, specifically the establishment of a seed bank, monitoring procedures, and detailed requirements and recommendations for taonga species to improve biodiversity and sustainability outcomes. A cost of $35,000 has been identified to undertake this work and budget approval for it is sought. It is expected that the Implementation Pan will be ready for the July Committee Meeting.

Considerations

Ngā ritenga take pūtea / Financial implications

The Nursery Strategy to date has come within approved budget of $60,000. It is proposed further work is undertaken as a “Stage Two” of the Nursery Strategy, at a further cost of $35,000. Budget could be drawn from unallocated budget in the Year 1 “Nursery Partnerships – plant propagation and supply” Year 1 project (project ID K2020-010), and later incorporated into the Year 2 Budget to be approved by this Joint Committee in June 2021.

It is also likely there will be ongoing costs identified for nursery monitoring, and seedbank and database establishment – this will be considered as part of the stage two report and those costs can be identified and approved as part of Year 2 Work Plan and budget process. It should be noted that some of these matters are also related to the Te Uri O Hau proposal (a separate agenda item) and may be progressed through that avenue dependent on Joint Committee direction and further discussions with Te Uri O Hau.

Aromātai whāinga haumi mō te oranga / Wellbeing Investment objectives and assessment

The Nursery Strategy recommendations contribute to the Tiaki taiao (Natural Capital) and Ōhanga (Physical & Financial Capital) investment objectives of the KMR Programme by ensuring there is an adequate plant supply and diverse species to mitigate against erosion. Recommendations to ensure sustainability and plant quality through monitoring standards and the establishment of a seedbank also support these objectives. These latter recommendations recognise the kaitiaki role of Kaipara Uri and will support Manaaki Tangata (Human Capital) and Tātai Hononga (Social Capital) investment objectives.

Ngā tūraru me ngā mauru / Significance, risk and mitigation

The decisions sought in this report are a key step to ensure that there are sufficient plants for the KMR Programme. These recommendations are consistent with the MOU objectives and as such look to support nurseries that will meet these objectives, particularly nurseries involving Mana Whenua. They do not favour strong interference in the marketplace but seek to enable all to participate through identifying prices and standards and developing preferred suppliers. They also seek to maintain standards and mitigate risk in plant supply and quality and ensure that a healthy bio-diverse environment develops as a result of KMR activity. Through these policies the risks of not having sufficient plants, of plants lacking in bio-diversity, the production of poor quality plants, utilisation of plants not suited to the local habitat are avoided.

Significance and Engagement

In relation to section 79 of the Local Government Act 2002, the decisions arising from this report are considered to be of low significance when assessed against Northland Regional Council’s significance and engagement policy. As many representatives of tangata whenua and/or individual communities as possible in the tight time frame were consulted. Some chose not to participate when invited and others fully shared their views. The joint committee is able to make these decisions without undertaking further consultation or engagement.

Ngā whāinga mō āmuri / Next steps

As noted, the Nursery Strategy has provided a good understanding of the current state of nurseries across the Kaipara Moana catchment and their ability to support the KMR Programme. It has also set out the high-level principles for the Joint Committees consideration. If these principles are approved, the proposed ‘Stage Two’ work will provide a detailed implementation plan for the strategic approaches set out in Stage One. It is proposed the same team who completed the Nursery Strategy is used to undertake this work and report back to the Joint Committee by July of this year.

Attachments/Ngā tapirihanga

Attachment 1: KMR Nursery Strategy (stage 1) - Final Report ⇩

Attachment 2: KMR Nursery Location Map ⇩

Attachment 3: KMR Nursery questionnaire - prompt sheet ⇩

Attachment 4: KMR Nursery Strategy presentation Puatahi Marae ⇩

Attachment 5: KMR Nursery Strategy - project summary ⇩

Kaipara Moana Remediation Joint Committee item: 4.2

19 April 2021

TITLE:	Response to Te Uri o Hau Settlement Trust
ID:	A1433476
From:	Alan Wilcox, Kaipara Uri Management Representative
Authorised by Group Manager:	Jonathan Gibbard, Group Manager - Environmental Services, on 14 April 2021

He Rāpopoto hautū / Executive summary

Representatives of the Te Uri o Hau Settlement Trust (TUOH) presented to the Joint Committee at its February meeting requesting $1.2 million for the production of 800,000 plants for KMR. There was also a request for a contract for a further $1.5 million for the Kaipara Uri Group Limited to deliver planting and sediment control plans for land-owner grants assistance, the completion of land-owner groups formation, as started under the MPI Sustainable Land Use contract, and engagement with Maori landowners so they could contribute to the remediation effort.

The draft Nursery Strategy has now been developed and provides guidance for the Joint Committee’s consideration of the TUOH request. In implementing the Nursery Strategy, there may be an opportunity for Te Uri o Hau Nursery in a number of areas such as the production of a sustainable level of seed collection, propagation, planting, fencing and maintenance of plants per annum; the production of standard riparian plants based on orders; the production of Taonga species; hosting a database and seed bank for trees in the KMR effort; and acting as a hub for satellite nurseries that may want to establish.

The draft Nursery Strategy does not support the underwriting or purchase of trees, without specific orders. However to assist TUOH, it is suggested that they work with a consultant from the Nursery Strategy Team to review the stock at the TUOH Nursery to see if it is suitable for planting; and through the services of staff presently in the Integrated Kaipara Harbour Management Group (IKHMG), coordinate a number of farms who already have sedimentation management and planting plans that were funded by the 1BT contract and put in an application to the land owner grants scheme to absorb the current stock (IKHMG currently have over 612 hectares identified for planting with draft sedimentation plans). In this way TUOH can be paid for its stock and still be consistent with other landowners and the Nursery Strategy recommendations.

Regarding a contract with a future Kaipara Uri Group Limited, it is noted the Kaipara Uri entities have agreed to work through the established subsidiary of TUOH, Environs Holdings Limited, in the first instance, while the new entity is being formed. Environs will absorb the current staff of the IKHMG, which has capacity to deliver such things as: Planting and Sediment Control Plans for land-owner grants assistance and the formation of Land-owner groups (started under the MPI Sustainable Land Use contract); engagement with Māori Landowners; Mātauranga Māori advice and research; and engagement assistance to carry out the community and partners forums that were undertaken by IKHMG, and which should now be handed over to KMR Programme.

This report outlines an initial proposed way forward to develop a partnership between the KMR Programme and Kaipara Uri entities that deliver KMR outcomes as agreed in the Memorandum of Understanding. Direction and endorsement is sought from the KMR Joint Committee to progress these discussions, with further reports are anticipated to outline the detailed business case and to establish budget approval to implement the anticipated programme of work.

Ngā tūtohu / Recommendations

1. That the report ‘Response to Te Uri o Hau Settlement Trust ’ by Alan Wilcox, Kaipara Uri Management Representative and dated 12 April 2021, be received.

2. That the Joint Committee supports further discussions with Te Uri o Hau Settlement Trust to deliver the following nursery services (while noting that such discussions will need to be informed by the proposed Kaipara Nursery Strategy (Stage 2) implementation plan):

a) Production of Taonga species;

b) Hosting a database and seed bank for plants and trees for use by landowners and other groups who participating the Kaipara Moana Remediation Programme;

c) Acting as a hub to provide technical assistance, oversight and quality control for satellite nurseries that may want to establish;

3. That the Joint Committee supports further discussions with Te Uri o Hau Settlement Trust, acting on behalf of Kaipara Uri, to deliver the following potential KMR delivery services:

a) Engaging with landowners to complete Sediment Reduction Plans to facilitate provision of landowner grants assistance;

b) Completing the formation of landowner groups, as started under the MPI Sustainable Land Use contract held by the Integrated Kaipara Harbour Management Group, to coordinate uptake of KMR landowner grants funding;

c) Engagement with Māori landowners to contribute to the KMR Programme effort, including uptake of grants funding when available;

d) Mātauranga Māori advice and research as may be required, in accordance with the upcoming Mātauranga Māori Strategy; and

e) Engagement assistance to carry out community and partners forums to promote engagement with the KMR Programme and uptake of KMR grants funding.

4. That the Joint Committee requests the Interim Management Team and Group Manager Environmental Services to engage with Te Uri o Hau Settlement Trust, to develop a robust business case and financial forecast for the provision of these services, and any other services that may come up through those further discussions, and present this back to the Joint Committee for consideration and budget approval.

Horopaki / Context

At the February meeting of the Joint Committee the Chair and Chief Executive of the Te Uri o Hau Settlement Trust (TUOH) presented a case (see Appendix One) requesting consideration of:

1. Nursery services - $1.2M sought to provide 800,000 plants by Te Uri o Hau Native Nursery

2. KMR support services - $1.5M sought to provide KMR support services by the yet to be established Kaipara Uri Group Limited

This is the second request from Te Uri o Hau following an earlier letter dated 18 November 2020 in which a request for consideration for Nursery assistance was also made.

Nursery services

A summary of the current situation and request from TUOH to deliver nursery services is provided below:

· The Te Uri o Hau Native Nursery has provided hundreds of thousands of conservation plants through the IKHMG's relationships with industry and community groups associated with the Kaipara Harbour, at TUOH's expense, over a number of years.

· Te Uri o Hau Native Nursery currently has 426,000 seedlings - representing the balance of leftover seedlings that were not sold as a result of the 1BT contract not providing any plant sales.

· 374,000 new seedlings have been propagated by Te Uri o Hau Native Nursery for the KMR 2021 winter planting season.

· A total of 800,000 seedlings have been set aside by Te Uri o Hau Native Nursery for KMR planting for 2021

· It must be noted however that the KMR Programme has never requested or required TUOH to propagate seedlings on its behalf.

· TUOH requested the KMR Programme underwrites this planting outlay (at a cost of $1,200,000), to enable 800,000 plants to be provided for KMR planting in 2021, with cost-recovery to follow on plant sale.

· To support the ongoing KMR objectives Te Uri o Hau Native Nursery wishes to increase its annual production capability from 800,000 plants to 2 million plants per annum by 2022

· The aim is to provide wraparound services such as site preparation, planting, maintenance and pest control, which will enable TUOH to employ whanau and those living in rural regions of its rohe.

· The Te Uri o Hau Native Nursery currently has 7 Staff. A short-term goal of the nursery is to employ 25 paid trainees within the next 12 months on a year-by-year fixed term contract in order to scale up the nursery production and provide long-term, sustainable outcomes for Maori and whanau within the rohe of Te Uri o Hau^{^[1]}.

· It is understood that the projected cost of this expansion is approximately $600,000, half of the $1.2 million sought for the guarantee of plants.

KMR delivery services

An Environmental Services Unit – “Kaipara Uri Group Ltd” – is in the process of formation, with a strong likelihood of representing all Kaipara Uri entities for environmental (and possibly other) contracting services. Kaipara Uri have since confirmed that all Kaipara Uri Treaty settlement trusts will support the progression of an interim contract with Environs Holdings (a company wholly owned by TUOH), as the vehicle to advance Kaipara Uri contractual interests, and once establish any contract will be transferred to an entity with a broader legal share base.

The intent is for Environs Holdings Ltd to immediately absorb all existing IKHMG staff. The IKHMG has a contract for $600,000 with MPI until the end of October to carry out farm sedimentation plans and otherwise assist the KMR Programme. The IKHMG is also in discussions to secure a $2,000,000 Predator Free contract.

Kaipara Uri request that the KMR Joint Committee support the progression of an output-based contract with Environs Holdings Ltd for:

· Engaging with landowners to complete Sediment Reduction Plans to facilitate provision of landowner grants assistance.

· Completing the formation of landowner groups, as started under the MPI Sustainable Land Use contract held by the IKHMG, to coordinate uptake of KMR landowner grants funding.

· Engagement with Māori landowners to contribute to the KMR Programme effort, including uptake of grants funding when available.

At this stage it is unknown what level of service could be contracted and the cost. However, it is clear the KMR Programme needs to deliver a significant level of landowner grants funding in the 2021-2022 financial year and beyond, and a major focus of the KMR Year 2 Work Plan will be to achieve this (see also 22 March 2021 report ‘Landowner Grants through Sediment Reduction Plans’).

A partnership approach for service delivery, similar in principle to that agreed under the Fonterra Tiaki Partnership project, is envisaged by Kaipara Uri.

In discussions with the TUOH CE, Environs Holdings could also provide the following additional services:

· Mātauranga Māori advice and research (as may be required in accordance with the upcoming Mātauranga Māori Strategy)

· Engagement assistance to carry out community and partners forums to promote engagement with the KMR Programme and uptake of KMR grants funding.

Tātari me ngā tūtohu / Analysis and advice

Nursery services

The Interim Management Team has delayed responding to this request, pending the outcomes of the Nursery and Workforce Strategies and direction from the Joint Committee.

The Nursery Strategy identifies the following points of relevance:

· With some expansion, there are sufficient nurseries within the catchment to meet the demand expected from KMR planting.

· While new nurseries may start up to deliver the KMR programme, the KMR programme does not need to initiate such development to meet KMR planting requirements.

· Any new nursery established should be as a satellite of an existing nursery so that expertise, equipment, scale and quality outcomes are assured.

· The TUOH nursery is in a good position to expand but it will not need to produce two million plants per annum for riparian planting as this is the total volume needed^{^[2]}.

· Plant propagation should not be based on demand/pre-order estimates but rather plants grown to order, with firm contracts from purchasers.

· There is the need to establish a seed bank for the entire catchment with one nursery acting as a recorder and possibly storehouse of this seed.

· There is a need to produce taonga species that may not be produced by some commercially driven nurseries.

One key difference between what is being proposed by TUOH and the Nursery Strategy is that the Nursery Strategy strongly recommends that plants should be produced to order, rather than the pre-order propagation model being advanced within the TUOH proposal.

The opportunity for the TUOH Nursery, based on the Nursery Strategy assessment and goals of the KMR programme, could include:

a) An expansion of staff to be able to produce a sustainable number of plants per annum, with production based on orders from landowners and other groups (i.e. the KMR Programme does not pay for the plants itself).

b) Production of Taonga species not currently commercially produced.

c) Hosting a database and seed bank for the benefit of the KMR Programme and to meet the strategic objectives of supporting biodiversity and plant quality as identified in the Nursery Strategy.

d) Acting as a hub for quality control, advice, administrative assistance and support to satellite nurseries that may want to be established to grow taonga species.

Progressing opportunity (a) does not require any direct support from the KMR programme, while opportunities (b), (c) and (d) would involve a direct contractual arrangement with the KMR programme. It is recommended that the Joint Committee support in principle the KMR programme to enter into a contract with the TUOH Nursery to deliver the opportunities identified in (b), (c) and (d) about. Should the Joint Committee support this approach, the IMT would continue to progress discussions with TUOH Chief Executive to develop a robust business case to support this and bring back budget proposals for approval through the KMR Year 2 Work Plan.

KMR delivery services

The Chief Executive of TUOH has confirmed that IKHMG staff will be absorbed into Environs Holdings and, at a later date, these staff and contractors will move to the anticipated Kaipara Uri environmental services entity, Kaipara Uri Group Limited. This gives Environs immediate capacity to deliver services to KMR Programme, including with funding support through an existing MPI contract that can cover existing staff costs until October 2021.

The following opportunities have been identified where the proposed Kaipara Uri Group, Environs in the interim, could provide KMR delivery services:

· There will need to be contractors to carry out investigations and make recommendations for the landowner grant scheme through Sediment Reduction Plans. IKHMG currently have over 612 hectares identified for planting with draft sedimentation plans. These could be reviewed by IKHMG staff, with guidance from the KMR Programme team, for consistency with the grants funding criteria (established by the Joint Committee at its March meeting), and amended to fit the anticipated Sediment Reduction Plan template (once developed).

· There is an anticipated need to resource the Mātauranga Māori Strategy and assist Kaipara Uri representatives with advice until an Iwi Liaison Advisor is appointed. One of the IKHMG staff has been contracted in the Workforce Team and has been identified as a key writer for the Mātauranga Māori Strategy. This work could continue under a broader contract.

· There is a need to accelerate the communications aspects of KMR Programme, consistent with the Engagement and Communications Strategy (once communications aspect of that strategy is approved). The IKHMG has long established practices of holding partner and community forums. Guided by the direction adopted in the Engagement and Communications Strategy, these skills and practices could be brought to the KMR Programme, effectively as a hand over between IKHMG and the KMR Programme. Communications budget has been set aside under the Year 1 Work Plan which is currently unallocated and may be reallocated under the upcoming Year 2 Work Plan. Funding would not be needed in the immediate future as IKHMG have finance for this.

It is anticipated that the above approach may also assist TUOH Nursery to distribute its current excess stock. Through the services of staff in IKHMG (as outlined above), TUOH could coordinate a number of farms who already have sedimentation management and planting plans, as well as considering their own farm and Māori land owners they have been working with in Pouto, to put applications to the KMR Programme through the anticipated KMR landowner grants funding. In this way TUOH might be paid for its existing stock in a way that is consistent with the Nursery Strategy recommendations and the anticipated KMR grants funding programme.

Considerations

Aromātai whāinga haumi mō te oranga / Wellbeing Investment objectives and assessment

An approach of the nature proposed above will assist the KMR Programme achieve a range of investment objectives, as it:

· Directly focuses on the main aim of the Kaipara Moana Remediation Programme, by providing plants to reduce the high level of sediment and contaminants flowing into the Kaipara Moana, thereby contributing to a healthy and productive harbour;

· Provides the ability for Kaipara Uri as Ahi Ka and Kaitiaki for Kaipara Moana to develop capability and employment associated with the remediation of Kaipara Moana;

· Expedites remediation work by immediate engagement of a workforce to work with some landowners, and provide plants to assist with remediation efforts;

· Helps fulfill the aspiration of the members of the Joint Committee to initiate the land-owner grants scheme as soon as possible

· Will help meet the social and human capital objectives of the KMR Programme to Mana Whenua.

The proposed approach with TUOH will make significant steps towards meeting MOU objectives. It will contribute to the first objective of Tiaki taiao (Natural Capital) (assisting to restore mauri to Kaipara Moana and enable it to be healthy, self-sustaining and naturally productive) through the provision of more trees for remediation planting; landowner advice and planting plans to undertake remediation work; the production of specific taonga plants to meet riparian planting requirements; hosting a seed back; keeping records of species planted; and providing a hub for satellite nurseries.

The proposed contracts will also contribute to the second objective of Manaaki Tangata (Human Capital) by supporting Kaipara Uri with local skills and capability in the nursery, and contribute to the material lift of capability and capacity to address environmental challenges and utilising local skills and local enterprise to contribute to sustainable outcomes. The development of the Te Uri o Hau Nursery as a hub for ongoing advice will assist with this objective.

It will also contribute to the third objective of Tātai Hononga (Social Capital) (enabling kotahitanga by empowering Kaipara Uri and local community participation in local solutions, leveraging opportunities through mobilising local participation and delivery and line of sight between local initiatives and governance) by ensuring local activities are aligned with wider needs; and enable customary practice to be prioritised with the provision of taonga species and Mātauranga Māori perspectives.

Ngā ritenga take pūtea / Financial implications

Nursery services

The Year 1 Work Plan project ‘Nursery Partnerships – plant propagation and supply’ had an indicative budget of $2.0 million, comprised of $1.0 million of Crown grant funding, and an anticipated $1.0 million of landowner contributions, with further confirmation required by the Joint Committee to progress the project. When originally proposed, the assumption was made that nurseries might be contracted by the KMR Programme to supply plants, with the programme underwriting nursery costs, and later recovering cost through landowner contributions as they were planted.

However, this approach is not recommended by the Kaipara Nursery Strategy, which supports plants being grown to order. It is therefore anticipated that the ‘Nursery Partnerships – plant propagation and supply’ project should be cancelled under the Year 2 Work Plan and budget, with budget being reassigned to a new project better aligned to the recommendations of the Kaipara Nursery Strategy.

As proposed in the report ‘Kaipara Moana Nursery Strategy’ in this 19 April agenda, further work is required to provide implementation details for the recommendations of the Nursery Strategy, to be reported back to the Joint Committee at its July meeting. Planning for the Year 2 Work Plan, also to be considered by this Joint Committee, can identify provisional budget to meet these objectives, while also underpinning a service delivery contract of the kind proposed above.

KMR delivery services

The IKHMG is already funded by MPI to carry out much of the proposed work until October of 2021. That funding covers IKHMG staff to continue with applications processing that were started under the 1BT project and which may be adapted to the benefit of the KMR Programme. The IKHMG is funded for these services at approximately $600,000 per annum, one third of which can effectively cover existing staff costs to October 2021. The proposal for Environs to provide initial communications and engagement, Mātauranga Māori and research advice can also be funded from within the MPI budget up until October 2021.

If negotiations towards a service agreement proceed in a timely manner, budget approval could be sought at the May 2021 meeting of this Joint Committee, with the ability to draw on unspent Year 1 budget up to 31 June 2021 (specifically the ‘Catchment Group Project Support’ budget), and then under a Year 2 Work Plan project from 1 July 2021 anticipated to support landowner engagement to drive the uptake of grants.

Ngā tūraru me ngā mauru / Risks and mitigation

There are a number of risks associated the proposed contracts:

RISK	MITIGATION MEASURE
Some may suggest that funds for the nursery give an unfair commercial advantage to Te Uri o Hau.	Communications need to be clear that the proposed contract is for unique services, specifically the provision of taonga species and a seed bank, as well as enhanced capacity consistent with the objectives of the Memorandum of Understanding.
There is a need to ensure Sediment Reduction Plans previously developed by IKHMG staff through the 1BT programme meet appropriate KMR Programme standards.	Additional KMR Programme staff will likely be needed to review these plans to provide assurance.
Sediment Reduction Plans would need to fit standards and follow systems and processes currently being adapted by the NRC to meet KMR Programme criteria.	Additional KMR Programme staff will likely be needed to develop the forms and processes.

Ngāhiranga me ngāhononga/Significance and engagement

In relation to section 79 of the Local Government Act 2002, the decisions arising from this report are considered to be of low significance when assessed against Northland Regional Council’s significance and engagement policy. Because of the specific nature of the proposal from one Uri Group, broader consultation amongst many representatives of tangata whenua and/or individual communities is not possible. The joint committee is able to make these decisions without undertaking further consultation or engagement.^{^[3]}

Ngā whāinga mō āmuri / Next steps

If supported, members of the Interim Management Team and Group Manager Environmental Services of the Northland Regional Council can enter into further discussions with the Chief Executive of the Te Uri O Hau Settlement Trust to further develop these proposals and bring this back for Joint Committee budget approval.

These proposals will need to have regard to activity within the current financial year and look to the out-years so that a sustainable, ongoing and affordable contribution can be made by the Settlement Trust and the proposed Environmental Entity to the Kaipara Moana Remediation. Budgetary approval can be sought at the May meeting of this Joint Committee, with potential also to set aside budget through an appropriate KMR Year 2 Work Plan project.

Attachments/Ngā tapirihanga

Attachment 1: Te Uri o Hau presentation to Kaipara Moana Remedation Joint Committee 22/02/2021 ⇩

Kaipara Moana Remediation Joint Committee item: 4.3

19 April 2021

TITLE:	Operations Vehicle Establishment Update
ID:	A1430311
From:	Penny Pirrit, Northland Regional Council Management Representative
Authorised by Group Manager:	Jonathan Gibbard, Group Manager - Environmental Services, on 13 April 2021

He Rāpopoto hautū / Executive summary

On 22 February the Joint Committee resolved to endorse in principle the option that the operations vehicle for the Kaipara Moana Remediation Programme (the KMR Programme) be a business unit within the Northland Regional Council. The Joint Committee also decided to progress the establishment of that unit through a subcommittee and Senior Officers Oversight Group.

This report provides an update on the work of both these groups and provides indicative costs for the establishment and ongoing operation of the operations unit (to be called Kaipara Maurikura).

It is considered there is now sufficient information available to enable the Joint Committee to recommend to the Member Parties to the Kaipara Moana Remediation Programme that they approve the operations vehicle being a business unit with the Northland Regional Council, until such time as the statutory Kaipara Moana Body is established through Te Titiriti o Waitangi Settlement processes.

Ngā tūtohu /Recommendations

1. That the report ‘Operations Vehicle Establishment Update’ by Penny Pirrit, Northland Regional Council Management Representative and dated 31 March 2021, be received.

2. That it is recommended to Member Parties of the Kaipara Moana Remediation Programme (Ngā Maunga Whakahi o Kaipara Development Trust, Te Rūnanga o Ngāti Whātua, and Te Uri o Hau Settlement Trust, Northland Regional Council, and Auckland Council) that, they approve an operations vehicle being a business unit within the Northland Regional Council, until such time as the statutory Kaipara Moana Body is established through the Te Titiriti o Waitangi Settlement process.

3. That the presentation, tabled at this meeting, outlining the options considered and the reasoning behind the recommended option be made available for each Member Party meeting at which the above recommendation is discussed.

Horopaki/Context

The Kaipara Moana Remediation Programme Memorandum of Understanding indicates that one of the functions of the Joint Committee is to consider options for an operations vehicle to be responsible for the day-to-day delivery of the Kaipara Moana Remediation Programme (the KMR Programme). On identifying a preferred option, the Joint Committee is required to recommend that option to the Member Parties for approval.

At its February 2021 meeting the Joint Committee resolved to endorse in principle the option of the operations vehicle being a business unit within the Northland Regional Council to enable more detailed work to occur on that option. The Joint Committee also:

(a) agreed the recruitment process for the manager of the operations business unit should commence.

(b) established a subcommittee to develop the job description and interview process for the business unit manager; and to draft a Statement of Service Requirements and a Chief Executive Responsibilities Agreement.

(c) approved the establishment of a Senior Officers Oversight Group, made up of senior officers from the Member Parties, to collaborate with the Chief Executive of the Northland Regional Council (NRC) on management and operational establishment processes.

(d) requested an update on the progress of the work of both the subcommittee and the Senior Officers Oversight Group for its April 2021 meeting.

Tātari me ngā tūtohu /Analysis and advice

Subcommittee Update

The subcommittee has had two meetings and email discussions since February. An early action was to ask the Chair of the Joint Committee to provide appropriate names for the business unit and the business unit manager. “Kaipara Maurikura” is the name identified for the business unit and “Pou Tātaki” for the manager.

Using these titles, the subcommittee has drafted and approved the job description for the Pou Tātaki. The job description has been sized by Strategic Pay and the role recently advertised through a number of channels including the NRC website, Member Parties, Mana Recruitment, Seek and Trademe Jobs. Applications close on 30 April.

The subcommittee has also commenced drafting the Statement of Service Requirements and the Chief Executives Responsibilities Agreement. Both documents will continue to be in a draft form until such time as the Members Parties approve the setting up of Kaipara Maurikura as a business unit within the NRC, and as more information is received on the Year Two Work Plan and from the Senior Officers Group. It is intended that the Joint Committee approve the final documents in June.

The Statement of Service Requirements

The purpose of the Statement of Service Requirements (the Statement) is to formally document the Joint Committee’s expectations of the Kaipara Maurikura so that all parties are clear on what those expectations are and how achievement of them is to be measured and reported on.

The Statement indicates the activities that the Kaipara Moana Joint Committee requires the Kaipara Maurikura, under the leadership of the Pou Tātaki, to undertake over the next three years; and the objectives that those activities contribute to.

The Statement also reinforces the importance of the KMR Programme Memorandum of Understanding and the Deed of Funding as the foundation documents that guide the KMR Programme and gives details on the vision, the tikanga/principles and investment objectives of the KMR Programme.

The draft Statement requires the Kaipara Maurikura to

· manage the day-to-day operations of the Kaipara Moana Remediation Programme and implement decisions of the Joint Committee.

· manage the finances of the KMR Programme in a transparent and robust manner and in accordance with the agreed funding model.

· undertake or contract out actions that lead to the delivery of the Annual Work Plan as approved by the Joint Committee.

· undertake monitoring and reporting of programme activities to support the Joint Committee meetings its Deed of Funding obligations with the Crown (Ministry for the Environment).

· develop innovative practices and processes that reflect the unique co-governance partnership arrangement of the Kaipara Moana Remediation Programme and which can be transferred as required to the governance of a future statutory Kaipara Moana Body.

To ensure Kaipara Maurikura’s accountability the Statement includes performance measures and targets based on the investment objectives as well as financial and engagement outcomes. Kaipara Maurikura is required to report quarterly on progress against those objectives and to provide a more detailed report (the Annual Report required by the Deed of Funding) within four months of the year end.

It is proposed the Statement is a living document and will be reviewed every two years to ensure it is current and relevant to the work and outcomes of the KMR Programme.

Chief Executives Responsibilities Agreement

As a business unit within the NRC the staff of the Kaipara Maurikura are, under Local Government Act law, the responsibility of the NRC’s Chief Executive Officer (the CEO). This means the management oversight responsibility of the unit sits with the CEO and the governance oversight sits with the Joint Committee.

Such an arrangement is the normal process within a council. However, the partnership arrangement of the Joint Committee is uniquely different to that of a committee within a council as under the Memorandum of Understanding the Joint Committee can develop its own policies and processes and practices for the Kaipara Maurikura which differ from NRC’s own policies and processes. This could lead to uncertainty or confusion over the different roles of the Joint Committee and the CEO.

To address this, the Chief Executives Responsibilities agreement between the Joint Committee and the CEO sets out clearly what obligations the CEO must fulfil under Local Government law and the demarcation between the governance and management. The agreement would be signed by the Chair of the Joint Committee and the NRC CEO.

Senior Officers Oversight Group

The Senior Officers Oversight Group membership is Malcolm Nicolson (NRC), Jonathan Rishworth (Te Uri o Hau); Alan Riwaka (Te Rūnanga o Ngāti Whātua); Helen Woods (Ngā Maunga Whakahii o Kaipara Development Trust); Taoho Tane (Te Roroa) and Craig Mcilroy (Auckland Council). The group has met twice since February with the initial meeting providing context information to ensure everybody was up to date with the KMR Programme and its progress.

As a priority the group discussed the Joint Committee’s preferred option of the Kaipara Maurikura being a business unit within the NRC. The group supports that option as the most appropriate until such time as the statutory Kaipara Moana Body is established. The group is now focussed on the management matters it was delegated to discuss and resolve.

Costs of Establishing Kaipara Maurikura

Work has been undertaken to provide indicative costs of establishing and operating the Kaipara Maurikura. These include costs for the recruitment and salaries of the Pou Tātaki and other dedicated staff; the cost of accommodation, computers and phones; and a discretionary budget for the Pou Tātaki to use if additional resourcing is required. These costs will continue to be refined and final costs will be included in the Year Two Work Plan that is to be approved by the Joint Committee in June 2021.

Indicative establishment Cost to set up Kaipara Maurikura in Year Two = $ 2.0M

Indicative operational cost of Kaipara Maurikura for future years = $1.8M

These costs cover salaries for dedicated staff within Kaipara Maurikura, IT equipment, set up and operation (including access to software such as GIS), leasing accommodation, HR recruitment and training costs. The establishment year (ie Year Two of the KMR Programme) costs are higher due to set up requirements for IT access and equipment.

While good progress has been made towards the establishment of the Kaipara Maurikura it is important that before too much else is progressed (e.g. interviews for the Pou Tātaki role) a decision is made by the Member Parties on the form of the operations unit.

To support the Member Parties in making that decision a presentation will be developed and provided to the Joint Committee members which includes the following information (which has been provided to the Joint Committee either in this report or previous reports) :

· The requirements of the Kaipara Moana Remediation Programme Memorandum of Understanding relating to the setting up of an operations vehicle

· The operations vehicle options that were discussed by the Joint Committee and the pros and cons of each

· The preferred operations vehicle, a business unit with NRC, and why

· How the Joint Committee will ensure the business unit will deliver the outcomes of the programme - through the Statement of Service Requirements expectations and performance measures

· The role of the NRC Chief Executive with the business unit and the Joint Committee – through the Chief Executive Responsibilities Agreement

· Costs of establishing the business unit and timeframes

It is intended a draft of that presentation will be available at the Joint Committee meeting and that it is finalised in time for Member Parties’ board and council meeting in late April and early May.

Considerations

1. Aromātai whāinga haumi mō te oranga / Wellbeing Investment objectives and assessment

The KMR Programme Memorandum of Understanding indicates an operations vehicle is required to scale up the delivery of innovative actions to reduce sediment into the Kaipara Moana. The actions of the operations vehicle, Kaipara Maurikura, will be measured on how they contribute to the attainment of the four investment objectives.

2. Ngā ritenga take pūtea / Financial implications

The cost of establishing and running the Kaipara Maurikura in its first year (at this stage indications are the costs will be in the vicinity of $2.0M will be indicated in the Year Two Work Plan and be funded from contributions from the Crown and Councils. The annual running costs of the unit will be included in future Annual Work Plans.

3. Ngāhiranga me ngāhononga/Significance and Engagement

In relation to section 79 of the Local Government Act 2002, the decision to recommend to the Member Parties a preferred option for the Kaipara Moana Remediation Porgramme is considered to be of low significance when assessed against Northland Regional Council’s significance and engagement policy. This does not mean that these matters are not of significance to tangata whenua and/or individual communities, but that the Joint Committee is able to make these decisions without undertaking further consultation or engagement.

4. Ngā tūraru me ngā mauru / Risks and mitigation

A final decision on the form of the KMR Programme operations vehicle is required if the programme is to lift to the scale and pace envisaged in the KMR Programme MOU and Deed of Funding. A key risk is if the Member Parties do not support the Joint Committee’s preferred option of a business unit of the Northland Regional Council until such time as the statutory Kaipara Moana Body is established. Mitigation of that risk can occur in two key ways:

· Providing of information to Member Parties on the options already considered and the reasoning behind the preferred options.

· Support of the recommended option by both the Joint Committee and the Senior Officers Oversight Group.

5. Ngā whāinga mō āmuri / Next steps

Once the Members parties have approved the Kaipara Maurikura being a business unit within the NRC, interviews of candidates for the Pou Tātaki can be progressed as can the development of job descriptions for other priority roles within the unit.

Attachments/Ngā tapirihanga

Nil

[1] It is understood these staff will also be seed collecting, maintaining plants, carrying out clearing and spraying activities and fencing to give 12 month per annum work.

[2] TUOH may however want to produce up to 2,000,000 pants for a combination of riparian planting, hill side stabilization and for other purposes.

[3] This joint committee operating under the Local Government Act which requires a significance and engagement policy (which identifies when matters require special consultation with tangata whenua and the community) and to have regard to that policy when making decisions. As the administrative support for the joint committee is provided by the Northland Regional Council, it’s that councils Significant and Engagement Policy that will apply to joint committee decision making.

Te Rūnanga o Ngāti Whātua Tame Te Rangi	NRC Chair Penny Smart	NRC Councillor Amy Macdonald
Auckland Council Councillor Daniel Newman	Ngā Maunga Whakahī o Kaipara, Cherie Povey	Auckland Council, Rodney Local Board Chair Phelan Pirrie
Auckland Council Greg Sayers	Ngā Maunga Whakahī o Kaipara, Jane Sherard	Te Rūnanga o Ngāti Whātua Virginia Warriner
Te Uri o Hau Malcolm Welsh	Te Uri o Hau Willie Wright	NRC Councillor Joce Yeoman