Agenda of Council Meeting

File Ref: 20/322

REPORT TO: Council

MEETING DATE: Thursday 23 April 2020

FROM: Chief Executive

Nigel Bickle

SUBJECT: Chief Executive's Update

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to update the Council on;

· Chief Executive (CE) Decisions made under special delegation for the New Zealand COVID-19 Level 4-Lockdown (The Lockdown).

· Management of Council Essential Services and Business as Usual during The Lockdown.

· Progress on Hastings District Council’s Economic and Social/Community Recovery Plan.

· Deferred Capital Works Programme as a result of The Lockdown.

1.2 This report is a briefing for Council on matters relevant to the purpose of Local Government during the nationally declared Civil Defence Emergency as a result of the COVID-19 Pandemic. The recommendation is that Council receive and note the report.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives and notes the report titled Chief Executive's Update

3.0 BACKGROUND – TE HOROPAKI

3.1 The New Zealand Government Goal is to eliminate COVID-19 from New Zealand.

3.2 New Zealand was ordered into a Level 4 lockdown on Thursday 26 March 2020 for a period of at least 28 days. The Lockdown requires all citizens to remain in their place of residence, being allowed to leave the residence for shopping, exercise and medical attention. Only essential workers may attend their workplace.

3.3 At the time of writing this report, we are on the understanding the Government will make a decision on Monday 20 April 2020 regarding extending the Level 4 lockdown period or moving New Zealand to a Level 3 Lockdown with 48 hours to make arrangements to transition.

3.4 Level 3 Lockdown still imposes major restrictions with organisations required to manage physical distancing, gatherings still forbidden and people required to work from home if possible. Citizens are still required to remain in their place of residence and only have contact with others in their residence.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Chief Executive Decisions made under special delegation for the New Zealand COVID-19 Level 4-Lockdown.

4.2 In the Extraordinary Council Meeting held on Tuesday 24 March 2020 the Council delegated to the Chief Executive the power to authorise and enter into any contract or other arrangement, and to authorise any level of expenditure (budgeted or unbudgeted). This delegation could only be exercised in circumstances where Council was unable or unavailable to hold a meeting as a direct result of the 2020 COVID-19 outbreak.

4.3 The Chief Executive has made one decision under this delegation. That was the establishment of the Rapid Response Fund and the reallocation of $90,000 of previously unallocated Discretionary Grant budget for this purpose. The allocation of the Discretionary Grant budget has previously been under the authority of the Community Grants Subcommittee, now the Civic and Administration Subcommittee.

4.4 Management of Council Essential Services and Business as Usual during the Lockdown.

4.5 On 17 March 2020 the Chief Executive directed that the Council Incident Management Team (IMT) be activated to co-ordinate the Council adherence to the COVID Level 1-4 restrictions and Council support of the Hawke’s Bay Civil Defence Emergency Management Group (CDEM).

4.6 The IMT operation objectives are;

· To ensure staff and community safety and wellbeing and maintenance of Hastings District Council’s essential service delivery.

· To participate in the regional Civil Defence Emergency Management and Ministry of Health COVID-19 response and recovery.

· To participate in the regional economic and social sustainability recovery plan and delivery.

· To ensure that Hastings District Council at all times role models the strict adherence to the range of measures applying to each level in the New Zealand COVID-19 Alert Levels.

· To ensure the Hastings Welfare Response Plan activities are resourced and supported.

4.7 The IMT has identified Council Essential Services and registered these with the Ministry of Business Innovation and Employment. (MBIE).

4.8 As of 19 April 2020 the Essential Services Status is detailed in the following table. Any changes will be verbally notified at the Council Meeting.

4.9 Where possible Council Staff are working from home.

4.10 The IMT is currently planning for Council transitions from Level 4 to the lower levels of restriction. Priority is placed on deployment and utilisation of staff (who effectively have their regular jobs suspended) to Council and CDEM business as usual priorities. Over 50 staff are currently assigned to delivery of Council’s community welfare response or are working at CDEM.

4.11 Progress on Hastings District Council’s Economic and Social/Community Recovery Plan.

4.12 Hastings like the rest of New Zealand is still in the midst of the response to COVID-19.

4.13 The IMT is planning for a Council Co-ordinated Contribution to Hastings District and Hawke’s Bay Region Recovery from the Effects of the COVID-19 Pandemic.

4.14 The exact form of the national recovery structure is yet to be finalised. The Government is releasing Treasury forecasts and releasing more detail on the Level 3 restrictions for when New Zealand or parts of New Zealand are authorised to transition to Level 3.

4.15 COVID-19 presents as an extraordinary emergency and it is challenging to forecast how Recovery will work as;

· The full scale and scope of consequences won’t be realised for some time, possibly until New Zealand borders are opened and a vaccine is developed (which may be 12 to 18 months).

· There is a real likelihood the response will continue at some level until New Zealand is vaccinated as we face the ongoing risk of COVID-19 re-establishing itself in New Zealand.

· The Ministry of Health is the lead agency in the New Zealand National Emergency Response. In addition to health consequences, the most significant consequences will be social and economic.

4.16 It will be appropriate for Council to operate at the following levels regards particular District and Regional Strategic Actions depending on our role and function as local government (LG);

· LG Led

· LG Enabled

· LG Advocacy

· LG Assistance with particular Public, Private, Non-Government Sector actions

· LG Awareness / Endorsement of particular Public, Private, Non-Government Sector actions

4.17 Initial officer planning for Recovery is to recommend Council take a strategic project managed approach to co-ordinate our allocated resources to District and Regional Recovery actions at levels 1 to 5.

*Level of Council Engagement*	Community Recovery (1-3yrs)	Economic Recovery (1-3yrs)	LG Bespoke Investment for Economic & Community Recovery	Central Government Bespoke Investment for Economic & Community Recovery	Long Term Community & Economic Recovery (1-10yrs)
Leader
Enabler
Advocacy
Assistance
Awareness & Endorsement

4.18 Officers are preparing a draft Hastings District Recovery Plan for Council consideration. The draft plan will seek to ensure Hastings interests whilst aligning and integrating with other Hawke’s Bay Councils and CDEM. The current thinking for the Framework for the draft Recovery Plan is shown below.

Officers have already submitted applications to the Crown Infrastructure Fund and Provincial Growth Fund for funding of prioritised Capital Works.

4.19 Deferred Capital Works Programme as a result of The Lockdown

4.20 Attachment 1 includes schedules from our Assets Team re the current state of The Capital Works Programme.

4.21 Attachment 2 includes a summary of The Forward Capital Works Programme to demonstrate there is a busy pipeline of projects once restrictions allow for work to continue.

5.0 OPTIONS - NGĀ KŌWHIRINGA

5.1 This is a Briefing Report for Council to receive so there are no decision options to be considered.

Attachments:

1 ⇩	Public Spaces and Building Worksites at time of Government L4 Lockdown Measures	CG-16-2-00153
2 ⇩	Construction Summary	CG-16-2-00152

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Not Applicable

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

The Council is required to give effect to the purpose of local government as set out in section 10 of the Local Government Act 2002. That purpose is to enable democratic local decision-making and action by (and on behalf of) communities, and to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

This report is a briefing for Council on matters relevant to the purpose of Local Government during a nationally declared Civil Defence Emergency as a result of the COVID-19 Pandemic

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

Councils COVID-19 Response and Recovery activities are community centric.

Māori Impact Statement - Te Tauākī Kaupapa Māori

Councils COVID-19 Response and Recovery activities focus on working in partnership with Maori.

Sustainability - Te Toitūtanga

Council is expected to be at some level of Response for COVID-19 for at least 12 months.

Council is expected to be at some level of Recovery for COVID-19 for potentially 3 years.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

Council officers are working on budget options for Council to consider and these options are the subject of another Council report on this agenda.

Significance and Engagement - Te Hiranga me te Tūhonotanga

Not Applicable

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

Not Applicable

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

Council manages its Health and Safety Responsibilities in accordance with Government Guidelines for the response to COVID 19 under the National Declared Civil Defence Emergency.

Rural Community Board - Ngā Poari-ā-hapori

Not Applicable

File Ref: 20/292

REPORT TO: Council

MEETING DATE: Thursday 23 April 2020

FROM: Group Manager Corporate Services

Bruce Allan

Financial Controller

Aaron Wilson

SUBJECT: Quarterly Financial Report - March 2020

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to inform Council of the financial result for the nine months ended 31 March 2020, and provide a financial view on the final quarter of the 2020 financial year.

1.2 This report concludes by recommending that the report for the 9 Months ended 31 March 2020 be received.

1.3 Council has continued to face pressure in delivering increased activity levels within the parameters of the 2019/20 budget. Whilst revenue has continued to exceed budget through fees and charges, there has been increased expenditure required to meet Council obligations, whilst providing essential services to the community.

1.4 With the global pandemic COVID-19, and New Zealand moving to level four, in the last week of March 2020, the last quarter of the 2019/20 year will look very different to the previous three quarters.

1.5 With this in mind a forecast of the year end rating requirement has been completed. This shows a small overall surplus across the targeted rate and general rate areas after savings on net interest is added.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Quarterly Financial Report - March 2020

3.0 BACKGROUND – TE HOROPAKI

3.1 The accounting operating financial result is reported on quarterly during the year and at year end a report is prepared on the financial as well as the rating result. The rating result differs from the accounting result in respect of non-cash items such as depreciation, vested assets and development contributions that are not included.

3.2 This financial report is governance focussed and allows significant variances to be highlighted with explanations provided in a way this is easy to read and understand through dashboard analytics and commentary.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Set out below is a summary of the operating financial result year to date. The financial results detailed below represent the accounting view and does not reflect the potential rating result for 2019/20:

	$’000	$’000	$’000	Full year Revised Budget*
2019/20	YTD Actual	YTD Revised Budget	YTD Variance	Full year Revised Budget*
Operating Revenue	105,059	103,053	2.006	137,044
Operating Expenditure	98,753	95,666	(3,087)	127,747
Net Surplus/(Deficit)	6,305	7,387	(1,080)	9,279

* Revised budget includes the Annual budget, Brought Forwards and surplus allocations from 18/19 financial year

Revenue

4.2 Fees and charges $2.8m have been the main driver for revenue as a whole being above budget. Strong activity economically has resulted in much higher volumes in the regulatory and landfill areas.

Below are graphical breakdowns to show the impact of that activity financially:

4.3 Development contributions are unfavourable to YTD budget by $787k. Phasing of budgets in relation to when contributions occur is difficult, and creates timing differences as it is not always known in advance in what month a payment will occur when the budget is being set. Given the financial picture to March is unfavourable to budget, it is expected that due to the impact of Covid-19 this will worsen towards the end of the financial year.

4.4 Subsidies, Grants and Donations are $428K unfavourable YTD mainly due to the timing of the roading RA1 maintenance and renewal programme.

Expenditure

4.5 Overall expenditure is tracking unfavourable to year to date budget as at 31 March 2020 by $3.08m or 3.0% of total budgeted expenditure year to date. Main drivers include:

4.6 The negative variance to budget for non-cash entries in terms of Depreciation ($1.9m) are driven by higher asset values due to prior year revaluations in Parks, along with increased spend in infrastructure projects in water and roading.

4.7 Finance costs are favourable by $1.52m which is a reflection of lower levels of debt than budgeted and lower actual interest rates compared with those assumed.

4.8 Other expenditure pressure is being felt as a result of higher volume demand in the regulatory areas, with higher contracted costs the result of meeting this demand.

4.9 In addition, there have been a number of unbudgeted items either approved or to be reimbursed. These include:

· Te Mata track remediation costs (now complete) of $194k YTD and $716k project total to date.

· Railway station fire $529k – These costs related to the removal and clean-up of asbestos from the site and surrounding area. Council is expected to be reimbursed for these costs.

· Cape Kidnappers costs $194k YTD, these are costs associated with the investigation into the safety of Cape Kidnappers along with operational costs in providing security for community health and safety concerns.

Capital

4.10 Council capital spend for the YTD to March is $56.2m, this is $22m lower than budgeted spend YTD.

Below is a graphical representation for each of the three areas:

Treasury

4.11 Council’s total gross debt position is $160.7m which includes $34m of prefunded capital expenditure and debt refinancing which is currently held on deposit. The additional debt drawn down to prefund capital expenditure and debt refinancing is providing Council with additional liquidity in these uncertain times.

4.12 Council is currently compliant with Treasury Management Policy. The Risk and Assurance Committee is responsible for reviewing Council’s treasury performance and policy with advice from Bancorp Treasury Services.

5.0 Looking Forward – Last Quarter

5.1 The COVID-19 pandemic has been described by the NZ Treasury as “a once in a century public health shock that is also having a profound impact on economic and financial systems around the world and in New Zealand”.

5.2 The economic impact from New Zealand going into level four lockdown in order to eliminate COVID-19 will be, and is being felt within the Hastings district. Officers have reworked the financial forecasts of what this will look like for the last quarter of this financial year.

5.3 There are a number of inherent difficulties in providing an accurate forecast, when many of the factors driving the final numbers are unknown and changing rapidly at the time of creating this forecast. These financial reforecasts are a snapshot view of what the year end position could be and it should be noted that due to this uncertainty, these forecasts will continue to be refined and will change.

5.4 These factors include, how long level four will be continued with, what level 3 will look like in terms of businesses able to restart, how long border quarantines will last, and in terms of this region, how badly will the community be affected and how this will impact on Council business.

5.5 There have been a number of assumptions that have been made in order to be able to provide a picture of how the various activities of Council will be affected.

5.6 In order to provide working clarity for budget managers, this forecast shows the bottom line rate requirement forecast for a wide range of activities within Council.

5.7 The rating forecast differs from the accounting result in respect of non-cash items such as depreciation, vested assets and development contributions that are not included.

5.8 In terms of local government, rating requirement is regarded as being an important indicator as it is shows how the rates that were collected have been spent.

5.9 The table shows the forecasted position across all Council activities at year end against what the budgeted requirement is for the full year. The variance shows whether there is a forecasted deficit or surplus. (A positive variance represents an underspend to budgeted requirement, and a negative an overspend).

5.10 The line highlighted in blue shows the “whole of Council requirement” and shows a $789,805 surplus at the end of year compared to budget, after net interest savings have been factored in.

5.11 The second table that is in green, shows how the surplus or deficit (i.e.: $789,805) is split between what can be used as a general surplus against what needs to be applied to the targeted rate surplus or deficit.

5.12 Targeted rates surplus/deficit are ring fenced and cannot be used for other activities. Therefore, when the makeup of the $789,805 forecast surplus is split out between the general rate and the targeted rate, the general rate shows a forecasted deficit of $181,063.

Assumptions

5.13 The following assumptions and actions have been taken in modelling the end of year forecast.

· Excludes all internal charges and recoveries

· Excludes any surplus from Landfill

· All revenue lines have been reviewed and adjusted.

· All expenditure lines have been reviewed and adjusted.

· Note this forecast will continue to be refined and updated as changes occur.

5.14 Note that these financial reforecasts and their assumptions will continue to be refined and will change.

Expected Impacts

· Rates received surplus of $265k as at March 31^st has been taken back to match budget, to allow for increased potential remissions both for the last quarter of this financial year as well as the first quarter of next financial year.

· Fees and charges revenue that have been very strong over the first three quarters have been heavily affected in the forecast. Whilst this revenue stream was above budget by 14%, it is expected to fall back to just 4.7% above budget.

· Development contributions are expected to be adversely affected and will depend on how long level four continues and what the conditions are for level three.

· Expenditure has been adjusted downwards where spend is not expected or cannot occur. An example of this is other operating costs that include big ticket items such as contracted services and advice lines. Currently this is 4% over budget, but has been pulled back to 1% over budget.

· Capital spend has been adjusted downwards due to the significant delay that level four has presented.

6.0 OPTIONS - NGĀ KŌWHIRINGA

6.1 Not applicable

Attachments:

1 ⇩

Quarterly financial dashboard as at 31 March 2020

FIN-09-01-20-188

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This proposal promotes the four well-beings of communities in the present and for the future.

Māori Impact Statement - Te Tauākī Kaupapa Māori

No known impacts for Tangata Whenua

Sustainability - Te Toitūtanga

The implications and the extent of the economic downturn that will follow the Covid-19 pandemic on Council finances is currently unknown.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

This report details council’s financial position as at 31 March 2020 and provides a high level forecast to 30 June 2020.

Significance and Engagement - Te Hiranga me te Tūhonotanga

There is no decision required of Council in the report

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

No external engagement required

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

The financial risks for Council as it projects a year end financial position are exacerbated by the extraordinary times we are operating in and the unknown position we may be in as at 30 June 2020.

Rural Community Board - Ngā Poari-ā-hapori

The financial implications on Rating Area 2 have not been separately identified in this report.

File Ref: 20/320

REPORT TO: Council

MEETING DATE: Thursday 23 April 2020

FROM: Group Manager: Community Facilities & Programmes

Alison Banks

SUBJECT: Hastings District Council - Rapid Response Grants

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to seek approval to progress the Rapid Response Grants Process Plan and give delegated powers to a COVID-19 Rapid Response Grants Subcommittee who will prioritise, approve and distribute grants to support organisations to continue to operate while responding to COVID-19.

1.2 Hastings District Council has set up a one-off fund of $100,000 to support Social Services, Community Groups and organisations that are working on the ground responding to the COVID-19 Pandemic by supporting Hastings Whānau Pounamu (vulnerable families) throughout Hastings.

1.3 As a result of the COVID-19, vulnerability no longer impacts on those living in poverty, our lower economic demographic communities and those with mental and significant health issue. Vulnerability is impacting on our whole community one way or another and the Rapid Response Grant is one of a number of initiatives to support the wellbeing of our community.

1.4 This decision contributes to the purpose of local government by primarily promoting social wellbeing and more specifically through the Council’s strategic objective of Council working with others to reduce levels of social disadvantage and income gaps in our community.

1.5 To ensure an accountable and transparent governance process it is recommended that Council approves the setting up of a COVID-19 Rapid Response Grants Subcommittee with delegated powers to approve and prioritise grants from the $100,000 fund in accordance with the criteria set out in Rapid Response Grants Process Plan.

1.6 To support transparency, that the Group Manager of Community Wellbeing & Services will report monthly to Council, outcomes of the grants made pursuant to the delegation, the purpose of each, to whom they were made to, and the amount of each grant.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Hastings District Council - Rapid Response Grants.

B) That the decision of the Chief Executive made under delegated powers to approve $100,000 being set aside for rapid response grants to assist local voluntary organisations support be noted.

C) That the Council approves the setting up of a COVID-19 Rapid Response Grants Subcommittee with delegated powers to approve and prioritise grants from the $100,000 budget agreed at B) above and in accordance with the criteria set out in Attachment 1.

D) That the membership of the Subcommittee comprise the following membership: Councillors Dixon (Chair), Barber, Lawson, Travers and Ms T Eden (Heretaunga Takoto Noa Māori Standing Committee representative).

E) That a weekly Subcommittee meeting be included in the schedule of meetings commencing from Tuesday 5 May 2020 at 10.00am until the quantum of the budget is allocated.

3.0 BACKGROUND – TE HOROPAKI

3.1 On 26 March 2020 the country entered a Level 4 Alert to combat the COVID-19 pandemic outbreak. To ensure there was a lens over the wellbeing of the Hastings community the Hastings Welfare Response Plan (HWRP) was developed and approved by Councils HDC Incident Management Team (IMT) Controller and Hawke’s Bay Civil Defence Emergency Management Group (CDEM) on the 1^st April 2020.

3.2 Priority highlighted is the Welfare Plan, attached under separate cover Attachment 1, as a goal was “to ensure that every Whānau Pounamu (WP) (all whānau are precious and cherished treasures) community members of the Hastings District are provided with the opportunity to receive assistance as maybe needed under the HWRP”.

3.3 There are six key work streams identified in the plan:

1. Community Mental Health – via Safer Hastings, partner with key agencies and support where we can

2. Outreach response – Contacting as many Whānau Pounamu in Hastings

3. Homeless Response – Rough Sleepers and Freedom Campers

4. Rapid Response Grant – support social services, community groups and organisations that are working on the ground responding to the COVID-19 Pandemic by supporting the Hastings community and Whānau Pounamu.

5. Rural – Partner with key agencies and support where we can

6. Youth – Reach out, listen and support to respond

3.4 Work streams 1., 2. and 3. are well underway and well resourced. Work stream 4. is the setting up and the delivery of a Rapid Response Grant and the process that has been approved by the HDC IMT Controller.

3.5 The objective of the Rapid Response Grant is to support organisations to continue to operate while on the ground responding to COVID-19.

3.6 Local communities will need strong community organisations during the recovery phase. The grant will eliminate the risk that organisations will utilise their own cash reserves in the response phase of the pandemic and then not be available to support the recovery phase.

3.7 The Chief Executive gave approval to $100,000 being set aside for the Rapid Response Grant under powers granted on the 24^th of March 2020, at an Extraordinary Council meeting. The CEO has the powers to authorise and enter into any contract or other arrangement, and to authorise any level of expenditure (budget or unbudgeted). The delegation was subject to a number of conditions which included documenting expenditure and reporting to the next ordinary meeting of Council or at the first available opportunity.

3.8 The purpose of this report is:

· To note the decision the Chief Executive made under delegated powers listed above; and

· To give approval to the setting up of a governance structure to approve grant applications which meets the objectives of the project as set out in the Rapid Response Grant Process Plan, as attached as Attachment 2.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Officers have identified $90,000 of unallocated Discretionary Grants budget in 2019/20 and recommend to the Chief Executive that it be reallocated to the Rapid Response Fund to support community groups that are actively supporting the community in the response to the COVID-19 pandemic.

4.2 A further $10,000 has been identified in the Community Facilities Group budgets to be contributed to the fund to bring the total to $100,000.

4.3 Expediency of process is recommended for the allocation of monies set aside in this fund and as such a process has been developed that ensures appropriate controls are put in place (Attachment 2) but allows for applications to be assessed with haste and recommendations made for approval.

4.4 In order to ensure sufficient governance oversight, it is recommended that a task and finish subcommittee of five councillors be formed to and delegated the necessary authority to make decisions on the allocation of the Rapid Response Grant. The COVID-19 Rapid Response Grants Subcommittee.

4.5 In order to receive funding it is proposed that eligible organisations will be prioritised as detailed below and will include:

· Those organisations that are well known to Council and already receive funding through Council’s community grants scheme.

· Those organisations known to Council and previously supported by Council.

· Organisations not previously supported by Council, however acknowledged for the work they are doing to support the community:

4.6 Organisations requesting a Rapid Response Grant will be required to complete a short online application form including the following details:

· Organisation details

· Response Activities to COVID-19

· Estimated numbers of people they are supporting

· What additional work they have been doing

· What additional cost have been incurred

· Has the organisation received funding from a central government agency for the work they are doing

· Total amount of support they are asking for – (there is no guarantee that the full amount will be granted and will depend on the number of requests)

4.7 The online application will be reviewed and assessed by the Community Grants Advisor daily. The application and its assessment will be reviewed by the GM Community Wellbeing & Services and GM Corporate who will make recommendations to the COVID-19 Rapid Response Grants Subcommittee.

4.8 It is proposed that the membership of the subcommittee comprise of the following membership:-

· Cr Dixon (Chair), Chair Civic and Administration Subcommittee

· Cr Barber, Chair Strategy and Policy Committee

· Cr Travers, Chair Operations and Monitoring Committee

· Cr Lawson, Chair Great Communities Subcommittee and

· Ms T Eden (Heretaunga Takoto Noa Māori Standing Committee representative)

and that a weekly Subcommittee meeting be included in the schedule of meetings commencing from Tuesday 5 May 2020 at 10.00am until the quantum of the budget is allocated to local voluntary organisations.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 That a subcommittee is formed (COVID-19) with delegated authority to approve grants up to the limit of the $100,000 for the purpose of supporting community organisations, working on the ground in response to the COVID-19 pandemic.

5.2 Advantages - An accountable and transparent governance process for the allocation of public funds.

5.3 Disadvantages - Legislative requirements for public meetings under the Local Government Act 2002 could slow the grant allocation process and make it less agile however, if a weekly subcommittee meeting is included in the schedule of meetings and advertised it will allow for regular meetings until the full amount of funding is distributed.

5.4 The Rapid Response Grant Process Plan notes that claims against the Rapid Response Grant Fund will be processed within 5 working days of receipt, it is expected that this can still be achieved under this option.

5.5 Option One is the recommended option.

Option Two – Status Quo - Te Kōwhiringa Tuarua – Te Āhuatanga o nāianei

5.6 That the Chief Executive is given delegation to approve grants up to the limit of the $100,000 for the purpose of supporting community organisations, workin on the ground in response to COVID-19 taking advice from the COVID-19 Rapid Response Grants Subcommittee.

5.7 Advantages - The approval process is more streamlined and responsive.

5.8 Distadvantages - Less transparency and public accountability.

6.0 NEXT STEPS - TE ANGA WHAKAMUA

6.1 Implement the Rapid Response process as outlined in the approved Process Plan.

6.2 Include the COVID-19 Rapid Response Grant Subcommittee weekly meetings into the schedule of meetings commencing from Tuesday 5 May 2020 at 10.00am until the quantum of the budget is allocated.

6.3 That the Group Manager of Community Wellbeing & Services report outcomes to a full Council meeting monthly about grants made pursuant to the delegation, the purpose of each, to whom they were made to, and the amount of each grant.

Attachments:

1 ⇨	HDC Welfare Respose Plan	EMG-01-14-3-20-68	Under Separate Cover
2 ⇩	HDC COVID-19 Rapid Response Grant Process Plan	EMG-01-14-3-20-67

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This decision contributes to the purpose of local government by primarily promoting social wellbeing and more specifically through the Council’s strategic objective of Council working with others to reduce levels of social disadvantage and income gaps in our community.

Māori Impact Statement - Te Tauākī Kaupapa Māori

Hastings District Council has set up a one off fund of $100,000 to support Social Services, Community Groups and organisations that are working on the ground responding to the COVID-19 Pandemic by supporting Hastings Whānau Pounamu throughout Hastings.

It is proposed that the membership of the subcommittee comprise of the following membership: Councillors Dixon (Chair), Barber, Lawson, Travers and Ms T Eden (Heretaunga Takoto Noa Maori Standing Committee representative)

Sustainability - Te Toitūtanga

There are no implications for sustainability.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

Officers have identified $90,000 of unallocated Discretionary Grants budget in

2019/20 and recommend that it be reallocated to the Rapid Response Fund to

support community groups that are actively supporting the community in the

response to the COVID-19 pandemic. A further $10,000 has been identified in the Community Facilities Group budgets to be contributed to the fund to bring the total to $100,000.

Under the powers granted to the CEO on the 24th of March 2020 the Chief

Executive gave approval to $100,000 being set aside for the Rapid Response

Grant.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This report has been assessed under the Council's Significance and Engagement Policy as being of low significance.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

There has been no external consultation.

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

The recommendation being proposed is the best option to ensure an accountable

and transparent governance process. Using the established and approved HDC

Community Grants processes ensures security of applicants data, supports a fair

review process and established monitoring and reporting process.

Rural Community Board - Ngā Poari-ā-hapori

There is no impact on the Rural Community Board.

File Ref: 20/167

REPORT TO: Council

MEETING DATE: Thursday 23 April 2020

FROM: Environmental Policy Manager

Rowan Wallis

SUBJECT: Variation 7 Recommendations and process

1.0 EXECUTIVE SUMMARY - TE KAUPAPA ME TE WHAKARĀPOPOTOTANGA

1.1 The purpose of this report is to obtain a decision from the Council on the Hearings Committee’s recommendations on submissions to Variation 7 Seasonal Workers Accommodation and to give formal notice of the decisions. It is the Council’s responsibility to make the final decisions on submissions to Variation 7.

1.2 The Council is required to give effect to the purpose of local government as set out in section 10 of the Local Government Act 2002. That purpose is to enable democratic local decision-making and action by (and on behalf of) communities, and to promote the social, economic, environmental and cultural well-being of communities in the present and for the future.

1.3 The objective of this decision relevant to the purpose of local government is the performance of a regulatory function through the provision of a district plan which will help to create an attractive and healthy environment for people, which promotes the best use of natural resources and which is responsive to community needs.

1.4 This decision will contribute to the purpose of local government by primarily promoting the economic wellbeing of the community and environmental protection and more specifically through the Council’s strategic objective of ensuring a range of housing options are available to meet the needs of a changing community whilst protecting our valuable soils.

1.5 The report concludes by recommending that the Council adopt the recommendations of the Hearings Committee on the submissions received to Variation 7 (Seasonal Workers Accommodation) and that it formally notifies its decision on the submissions.

2.0 RECOMMENDATIONS - NGĀ TŪTOHUNGA

A) That the Council receives the report titled Variation 7 Recommendations and process from the Environmental Policy Manager.

B) That pursuant to Clause 10, Schedule 1 of the Resource Management Act 1991, the Hearing Committee’s recommendations on submissions to Variation 7 (Seasonal Workers Accommodation) as set out in Attachment A to this report, are adopted and publicly notified.

3.0 BACKGROUND – TE HOROPAKI

3.1 The number of seasonal workers that are required to service land based primary production within the district is increasing at a rapid rate and placing considerable pressure on accommodation facilities. The purpose of Proposed Variation 7 (Seasonal Workers Accommodation) is to better provide for seasonal workers accommodation within the Proposed District Plan to ensure that the environmental effects of seasonal workers accommodation are appropriately considered and to give a greater level of certainty to seasonal worker employers. It will also have the added benefit of reducing pressure on the rental housing market.

3.2 The key provisions of Variation 7 that differ from those in the Proposed District Plan are as follows:

· Provision for seasonal workers accommodation for up to 80 workers in the Plains Production zone as a restricted discretionary activity, subject to compliance with standards.

· A specific performance standard in the Plains Production zone that requires the land holding to be 12ha or more in area for seasonal workers accommodation.

· Provision for seasonal workers accommodation in the Omahu and Irongate General Industrial zones as a restricted discretionary activity subject to compliance with standards.

· A general performance standard for the maximum wastewater discharge in the Irongate General Industrial zone of 0.04 litres per second per hectare of site.

· A set of specific performance standards for seasonal workers accommodation in the General Industrial Zone, that includes standards for outdoor open space, acoustic insulation, and a requirement that accommodation be relocatable.

4.0 DISCUSSION - TE MATAPAKITANGA

4.1 Variation 7 was publicly notified at the end of August 2019 in accordance with the statutory requirements of the Resource Management Act 1991 and received seventeen submissions to the variation with the majority of submissions supporting the variation in principle but seeking amendments to the provisions. Two of the submissions were received out of time.

4.2 There were a total of 6 further submissions on the original submissions.

4.3 The hearings report (Section 42A RMA report) was prepared and circulated to all submitters. The report evaluated the issues raised in submissions.

4.4 The hearing of submissions was held on 18^th February 2020 and where amendments are recommended as a result of submissions each amendment has been considered in respect of section 32AA of the Resource Management Act 1991 (Attachment B).

4.5 The Hearings Committee deliberated on the submissions and made its recommendations (Attachment A) at a reconvened hearing on 12^th March 2020 where it made the following decision. “That the Hearings Committee endorse the recommendations from the Variation 7 Seasonal Workers Accommodation hearing and that these recommendations be forwarded to the Council for ratification and notification”.

4.6 The process now requires a decision from the Council on the adoption of the Hearing Committee’s recommendation on submissions to Variation 7 and the Section 32AA Evaluation Report, and to give notice of the Council’s decisions.

5.0 OPTIONS - NGĀ KŌWHIRINGA

Option One - Recommended Option - Te Kōwhiringa Tuatahi – Te Kōwhiringa Tūtohunga

5.1 Accept the recommendations of the Hearings Committee and amend the District Plan accordingly to include Variation 7.

Advantages

· This option will ensure that the decision on the submissions raised is based upon the most complete information, including written submissions and those points raised through the course of the hearing.

· The submissions have been heard by RMA trained and accredited commissioners.

· That the approval will allow the provision for seasonal worker accommodation to proceed in a timely manner.

Option Two – Status Quo - Te Kōwhiringa Tuarua – Te Āhuatanga o nāianei

5.2 Reconsider the recommendations on one or more specifically identified issues (this would as a minimum require Council to give consideration to all of the documents relevant to the hearing of the issues in question before making any changes, but may require a rehearing of these submissions to ensure that there is no breach of the principles of natural justice).

Advantages

· Would allow any contentious issues to be revisited.

Disadvantages

· Continues the uncertainty for seasonal employers.

· Pressure remains on accommodation facilities throughout the district

· There may be insufficient time to progress the plan changes ahead of next seasons demand for workers.

6.0 NEXT STEPS - TE ANGA WHAKAMUA

6.1 The next steps in the process are set out in the first Schedule of the Resource Management Act 1991:

· Public Notification of the decisions and notification to all submitters.

· Posting of the decision on the Council website and availability of a copy of the decision at the Council offices and all public libraries.

· The ability for submitters to Appeal Council’s decision to the Environment Court within 30 working days of being served the notice of decision.

Attachments:

1 ⇨	Recommendations - Hearings Committee 18/19/ and 13/3/2020	CG-16-8-00040	Under Separate Cover
2 ⇨	Variation 7 Seasonal Worker Accommodation - Section 32AA Report	ENV-9-19-9-20-125	Under Separate Cover

SUMMARY OF CONSIDERATIONS - HE WHAKARĀPOPOTO WHAIWHAKAARO

Fit with purpose of Local Government - E noho hāngai pū ai ki te Rangatōpū-ā-rohe

Link to the Council’s Community Outcomes - E noho hāngai pū ai ki te rautaki matua

This proposal promotes regulatory functions which help to prevent harm and help to create a safe and healthy environment for people, which promote the best use of natural resources and which are responsive to community needs. The specific council objectives that will be met are, diversity in housing types, infrastructure supporting economic growth and sustainable use of land and water resources.

Māori Impact Statement - Te Tauākī Kaupapa Māori

Variation 7 was discussed with staff of Ngati Kahungunu Iwi Incorporated and Te Taiwhenua o Heretaunga and their concern was the effects of accommodation on the water resources of the region, both in terms of the potential effects on the groundwater and the resource available. They sought that suitable safeguards be put in place to protect the water resource. While discharges to groundwater is a regional council responsibility, Variation 7 has put in place a number of assessment criteria around groundwater effects.

Sustainability - Te Toitūtanga

Accommodating seasonal workers provides for the sustainable management of the versatile land resource on the Heretaunga Plains. Without this resource the economic sustainability of many of the properties would be severely compromised.

While the provision for seasonal workers accommodation is not seen as a long term requirement with technology expected to reduce demand for seasonal workers within 15 years, there is the potential to affect natural resources in the long term. This is why Variation 7 places a limit on the scale of development in the Plains Production zone with the larger scale developments being directed to Industrial areas where they can be appropriately serviced.

Financial considerations - Ngā Whaiwhakaaro Ahumoni

If the recommendation was not adopted there would be financial implications around the re-hearing of the submissions. These costs would be incurred by both Council and submitters with time delays also creating additional financial costs.

A further financial consideration for Council is the potential cost associated with an appeal of the Council’s decision. This cost would be met through the District Plan budget.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision has been assessed under the Council's Significance and Engagement Policy as being of high significance as the issue of making better provisions for seasonal workers accommodation is of considerable community interest as it impacts a large number of primary produce growers on the Heretaunga Plains and it also affects all of the grower support industries. It also has a large impact on rental housing in the community which is of particular significance given the large numbers in temporary accommodation within the district and region.

The level of engagement with seasonal employers has been high in the drafting of the variation and it has been publicly notified following the process set down under the Resource Management Act 1991.

Consultation – internal and/or external - Whakawhiti Whakaaro-ā-roto, ā-waho

Consultation has taken place internally with the Environmental Consents Team and the Three Waters Manager. Externally there was considerable consultation ahead of the Variation being drafted with the seasonal employers as well as Hawke’s Bay Fruitgrowers and Ngati Kahungunu Iwi Inc and Te Tai Whenua O Heretaunga:

Risks: Legal/ Health and Safety - Ngā Tūraru: Ngā Ture / Hauora me te Haumaru

The risk of this decision not being adopted is the need to provide for the ever increasing need for seasonal worker accommodation and not being able to meet that need in the next season. This will exacerbate the pressure on the private residential rental market and perpetuate the situation of families being forced to live in temporary accommodation throughout the district.

If the recommendations of the Hearings Committee were not adopted this would require Council to rehear the submissions to ensure that there is no breach of the principles of natural justice. This would result in additional time and cost for the Council as well as issues for process and reputational risk.

Rural Community Board - Ngā Poari-ā-hapori

Community boards may field complaints from landowners who are unable to obtain the increased number of seasonal workers that they require.

Hastings District Council

Lyndon Road East, Hastings