Agenda of Strategy and Recovery Committee Meeting

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

Graham Palmer, Climate Action Officer

Te Take:

Subject:

Council Climate Action Work Programme

1.0 Purpose and summary - Te Kaupapa Me Te Whakarāpopototanga

1.1 The purpose of this report is to provide the Strategy and Recovery Committee with an update on the progress of key aspects of the Council Climate Action Work Programme.

1.2 Council has committed funding in support of the Climate Action Work Programme for the next three years via the LTP and after that period will be inflation adjusted.

1.3 External funding is being sought in support of the work programme.

2.0 Recommendations - Ngā Tūtohunga

A. That the Strategy and Recovery Committee receive the report titled Council Climate Action Work Programme dated 1 August 2024.

B. That the Committee notes that Officers will report to the Committee on the development of Strategy and Policy regarding the Council Climate Action Work Programme.

3.0 Background – Te Horopaki

3.1 The objectives of the Council Climate Action Officer role and Work Programme are:

· Development of a comprehensive organisational Climate Action Strategy,

· Improve understanding of Council’s exposure to climate risks,

· Improve the resilience of Council assets and services,

· Improve Council’s environmental and economic sustainability,

· Seek equitable outcomes via engagement with mana whenua and other key stakeholders,

· Reduce emissions in accordance with the Climate Change Response (Zero Carbon) Amendment Act 2019,

· To act as Hastings District Council’s advisory member to the Climate Action Joint Committee.

3.2 The Climate Action Joint Committee (CAJC) is a regionwide Council committee formed in July 2023 to provide governance around the impacts and opportunities of Climate Mitigation and Adaption. The CAJC is represented by up to two elected members from the Hawke’s Bay Regional Council; being the Chair and one other elected member, and one alternate. In addition, up to two elected members from each Territorial Authority within the Hawke’s Bay region, plus each Post [Treaty] Settlement Governance Entity (PSGE) within the Hawke’s Bay region is invited to appoint one member, and one alternate. Finally, up to two members and one alternate appointed to represent the Ngāti Kahungunu Taiwhenua and Board representatives on the HBRC Māori Committee.

3.3 A Terms of Reference (TOR) for the CAJC were adopted by Hastings District Council resolution in July 2023. The objectives stated therein are to:

· Oversee and guide the development and implementation of a Regional Emissions Reduction Plan including recommending actions for partner councils to consider for inclusion in their Long-Term Plans.

· Oversee and guide the development and implementation of a spatial Regional Climate Risk Assessment to deliver on responsibilities under the National Adaptation Plan to:

- Reduce vulnerability to the impacts of climate change,

- Enhance adaptive capacity and consider climate change in decisions at all levels.

· Strengthen resilience.

· Support compliance with the statutory requirement to “have regard to” the National Emissions Reduction Plan and the National Adaptation Plan in all RMA-related plans of partner councils.

· Inform planning to drive climate-resilient development in the right locations within the Future Development Strategy required under the National Policy Statement on Urban Development, and the Regional Spatial Strategy and regional combined plan proposed under the Spatial Planning and Natural and Built Environments legislation.

· Collaborate on the delivery of key services for infrastructure impacted by climate change on respective councils.

4.0 Climate Action Work Items

Funding Opportunities

4.1 Officers are reviewing external funding opportunities for the Council Climate Action Work Programme and will apply for opportunities as appropriate.

Council’s Carbon Footprint

4.2 Establishment of Council’s carbon footprint is an important step in measuring our environmental impact. It creates a baseline against which the effectiveness of Council’s emissions reduction efforts can be measured.

4.3 Available datasets have been collated and provided to Ekos (sustainability management consultants that specialise in environmental, social and governance reporting) for compilation into a report. Once compiled, this report will undergo an assurance audit by McHugh & Shaw. The completed assurance statement is expected to be issued to Council in September 2024.

4.4 Follow up work for this project will include assessment of how internal data collection regards contractor emissions gathering can be streamlined for future reporting.

Energy Audit Trial

4.5 Optima Energy Systems have been engaged to carry out an energy audit on Councils Civic Administration Building. This audit consists of a 12-month data collection and monitoring period during which recommendations for system adjustments will be made to reduce energy bills and emissions.

4.6 The measuring equipment installed for the trial is owned by Council and will remain available for ongoing energy consumption monitoring both in the Civic Building and other Council locations.

Climate Action Stakeholder Engagement

4.7 To date three stakeholder groups are engaged in the Council Climate Action Work Programme.

· The Council Climate Action Network (CAN) is encouraging effective communication and co-operation between Council departments to improve climate outcomes.

· The Technical Advisory Group (TAG) was conceived to support the work programme of the Climate Action Joint Committee. The scope of the TAG is currently undergoing review and it is expected that this will be updated at the next CAJC meeting.

· Environment Centre Hawke's Bay (Registered charity - Sustainable Hawkes Bay Trust) is a registered charity with a focus on educating and supporting others to build resilient communities, environment restoration, plus climate change adaptation and mitigation. They are considering working with Council on proposed biodiversity projects and enhancement of resilience through community focussed adaptation initiatives.

Climate Change Risk Assessment

4.8 Officers are completing a risk assessment of Climate Change on Council Assets. This includes a desktop review of other Council’s risk assessments.

Council Solar Project Feasibility

4.9 Five Council facilities are being investigated for site suitability, power needs and potential Return on Investment (ROI) estimates. The goal of these projects would be to reduce Council energy bills, improve resilience, and reduce greenhouse gas emissions.

Biodiversity Project Feasibility

4.10 A series of potential biodiversity projects are being investigated in response to the National Policy Statement on Indigenous Biodiversity (NPSIB). This policy sets objectives to maintain indigenous biodiversity across Aotearoa New Zealand so that there is at least no overall loss in indigenous biodiversity after the commencement date (July 2023).

4.11 The NPSIB aims to achieve this through recognising the mana of tangata whenua as kaitiaki of indigenous biodiversity and by recognising people and communities, including landowners, as stewards of indigenous biodiversity. It encourages protection and restoration of indigenous biodiversity as necessary to achieve the overall maintenance of indigenous biodiversity, while providing for the social, economic, and cultural wellbeing of people and communities now and in the future.

4.12 Early engagement with tangata whenua representatives and the Rural Community Board will play a vital role in achieving the goals of these projects, which aim to:

· Measure, protect and connect existing natural areas,

· Sequester carbon,

· Reduce flood risk and erosion while improving water quality and restoring mahinga kai,

· Enhance climate resilience of indigenous biodiversity,

· Increase ecosystem service capacity.

Attachments:

There are no attachments for this report.

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

David Mackenzie, Wastewater Manager

Steve Cave, 3 Waters Manager

Te Take:

Subject:

Waipātiki Wastewater Treatment Plant - Briefing for the Committee regards Consent and Infrastructure Upgrade

1.0 Executive Summary – Te Kaupapa Me Te Whakarāpopototanga

1.1 The purpose of this Report is to update the Strategy and Recovery Committee on,

· The officers recommended solution for required infrastructure upgrades to the Waipātiki Wastewater Treatment Plant (WWTP). The WWTP ‘Long Term Solution - Alternatives Assessment Report’ is attached as Attachment 1.

· The legal agreement between Council and Hawke’s Bay Regional Council (HBRC) regarding ownership of the Waipātiki Campground (Campground). This agreement requires Council to connect the Campground to the WWTP and maintain an effective wastewater system for the Campground. The ‘Deed of Nomination’ between Council and HBRC is attached as Attachment 2.

· The WWTP reconsent process. The current WWTP Waipātiki Discharge to Air and Land Consent is attached as Attachment 3.

1.2 The WWTP discharge permit held by Council expires in May 2025. An application to replace this consent is required to be lodged with HBRC by the end of November 2024.

1.3 A discharge permit held by HBRC for the Campground WWTP, expired in May 2024. In February 2024 HBRC applied for a new, short-term consent.

1.4 The cost to complete the consent lodgement work is $400,000 and is provided for within the Long-Term Plan (LTP). The consent lodgement works involve technical assessments and investigations, cultural impact assessment, monitoring and management plans, consent lodgement and community consultation.

1.5 Confirmation from HBRC on the allocation of funding for the Campground WWTP upgrades will determine if the lodgement of the consent in November 2024 will include the Campground as part of the WWTP Long Term Solution.

1.6 HBRC is the authority responsible for the issue of consents.

2.0 Recommendations - Ngā Tūtohunga

A) That the Strategy and Recovery Committee receive the report titled Waipātiki Wastewater Update dated 1 August 2024.

B) That the Committee notes the requirement to submit an application to the Hawke’s Bay Regional Council (HBRC) for a Discharge to Air and Land Consent for the Waipātiki Wastewater Treatment Plant (WWTP) by November 2024.

C) That the Committee notes the officer’s preference is to include the Waipātiki Campground WWTP Discharge Consent in the consent application per Recommendation B, subject to the allocation of funding for the Waipātiki Campground WWTP upgrade by the HBRC.

D) That the Committee notes that Council has not allocated funding for the capital works required to upgrade the Waipātiki WWTP. This will be a matter to be considered in the 2025/26 Annual Plan.

E) That the Committee notes the officers preferred solution for the Waipātiki WWTP upgrade is to make best use of the existing WWTP and network by upgrading the WWTP site and discharge environment. Upgrades to the Campground WWTP are required before Campground wastewater can be discharged to the Waipātiki WWTP.

3.0 Background – Te Horopaki

Waipātiki WWTP and Campground Treated Wastewater Discharge Consents

3.1 Councils discharge permit (Attachment 3) for the discharge of treated wastewater from the Community WWTP expires in May 2025. Section 124 of the Resource Management Act (RMA) allows for a consent to continue while an application for a new consent proceeds. Consequently, officers must lodge an application for a new consent by the end of November 2024.

3.2 A discharge permit held by HBRC for the Waipātiki Campground WWTP, expired in May 2024. To remain compliant, HBRC applied for a new, short-term consent in February 2024, reliant on Section 124 of the RMA. The premise for the short-term consent is that it will be subsumed into the consent application that Council lodges in November 2024 for the WWTP.

Proposed Waipātiki Wastewater Long-Term Solution

3.3 Officers have undertaken an extensive programme of works to develop a long-term solution for wastewater management, treatment, and disposal at Waipātiki. The programme included a detailed sampling and monitoring regime and analysis of existing and potential environmental effects. Maungaharuru-Tangitū Trust (MTT) are an integral part of the project team.

3.4 The Alternatives Assessment Report (Attachment 1) details the assessment and optioneering process used to determine the preferred WWTP solution.

3.5 The preferred solution is to make best use of the existing WWTP and network by upgrading the WWTP site and discharge environment. Upgrades to the Campground WWTP are required for wastewater treatment before its discharged to the upgraded WWTP.

3.6 The treated wastewater would ultimately be discharged to the irrigation field in the adjacent Pan Pac Forest.

3.7 MTT support the preferred solution, due to the holistic approach taken for managing wastewater in Waipātiki and only having to engage with one consent holder for the discharge of treated wastewater.

3.8 The timeframe for implementation of the preferred WWTP solution is a 3-5year period, with construction commencing in 2026/2027.

3.9 The graphic below, presents the preferred solution.

3.10 Infrastructure Costs – Preferred Solution

· Community WWTP $1,600,000

o $400,000 2024/2025 – technical assessments and investigations, cultural impact assessment, monitoring and management plans, consent lodgement and community consultation.

o $200,000 2025/2026 – Detailed design, tendering, ancillary land use and building consents.

o $1,000,000 2026/27 – Construction and commissioning.

· Campground WWTP $800,000 (Responsibility of HBRC)

o $50,000 2025/2026 – Detailed design, tendering, land use and building consents.

o $750,000 2026/2027 – Construction and commissioning.

3.11 The cost to complete the consent lodgement works for the WWTP is $400,000. The LTP makes provision for this in 2024/25.

3.12 The LTP anticipates an amalgamation of the Waipātiki wastewater scheme with the urban wastewater scheme for the purposes of operational cost sharing.

3.13 The operational targeted rate for Waipātiki wastewater has been set at twice the urban wastewater rate. This reflects the higher cost of operating the scheme and the Waipātiki contribution to the project consenting costs.

3.14 Funding for the WWTP capital infrastructure costs is not provided for in the LTP and will need to be considered in the 2025/26 Annual Plan along with a funding solution and discussion with the community.

3.15 The table below provides one potential cost sharing scenario. This is signalled here for information purposes only. The projects costs are funded by a combination of direct payments from the community which benefits and uniform charges for wastewater which all Rating Units pay.

Description	Approx. Amounts
Consenting Lodgement Costs
Sewer Targeted Rate Harmonisation – Waipātiki Differential two times	$400,000
Community WWTP Infrastructure Costs
HDC Public Good (15-20%) Uniform Annual General Charge	$240,000 (20%)
Waipātiki Property Owners (Capital Contribution) $8,000 each *(NB: property owners paid circa $12,000 each for the original scheme)*	$480,000 (40%)
Sewer Targeted Rate Harmonisation – Waipātiki Differential (x two)	$480,000 (40%)
TOTAL	$1,600,000
Campground WWTP Infrastructure Costs
Regional Benefits (paid by all of Hawkes Bay) (HBRC Campground)	$800,000 HBRC Costs

3.16 Funding for the Campground WWTP infrastructure costs is not in the HBRC LTP. Council officers are awaiting confirmation from HBRC on budget availability through an Annual Plan adjustment to the HBRC LTP to fund the Campground infrastructure upgrades.

3.17 Confirmation from HBRC of the availability of funding for the Campground WWTP upgrades will determine whether the lodgement of the consent for the WWTP in November 2024 includes the Campground as part of the WWTP Long Term Solution.

Campground Deed of Nomination

3.18 The Deed of Nomination (Deed) (Attachment 2) is an agreement signed between Council and HBRC as part of the Sale and Purchase of the Campground in 2016. The Deed sets out responsibilities for Council and HBRC.

3.19 Clause 3(h) states Council’s responsibility for the WWTP.

Maintain an effective wastewater system for the Campground at all times. Hastings will connect the campground to the Waipātiki sewerage scheme owned and operated by Hastings by 30 June 2018, unless Hastings and Regional agree an alternate later date for such connection;

3.20 Officers recommend Council has met this responsibility with the installation of a sewer pipe between the Campground WWTP and the Community WWTP as part of the Waipātiki Drinking Water Treatment Plant construction works in 2021.

3.21 While the connection link was installed in 2021, the Campground WWTP and WWTP remain separate due to the upgrades required to both WWTP’s to cater for the increase in wastewater volume and variable quality of wastewater from the Campground.

4.0 Discussion – Te Matapakitanga

Campground WWTP Upgrades

4.1 Council is awaiting confirmation from HBRC regarding the allocation of funding and the timing of funding allocations for the Campground WWTP Upgrade with an estimated cost of $800,000.

4.2 The preferred solution for the WWTP discussed in 3.5, requires upgrades to the Campground WWTP for wastewater treatment before its discharged to the upgraded WWTP.

· If HBRC fund the Campground WWTP upgrade, the Campground can connect to the WWTP after the Campground WWTP has been upgraded.

· HBRC may apply for a long-term separate discharge permit and not require access to the WWTP.

· HBRC may want to connect the Campground to the WWTP in future.

4.3 The design of the WWTP upgrades will enable future connection of the Campground.

4.4 To meet project timelines, Council officers are actively pursuing feedback from HBRC to understand their commitment to funding the proposed Campground WWTP upgrades.

5.0 Next steps – Te Anga Whakamua

5.1 Completion of the detailed resource consent application for replacement of Council’s WWTP discharge permit for lodgement by 30 November 2024. Confirmation from HBRC on the availability of funding to upgrade the Campground WWTP is required to be able to include the Campground WWTP in Councils consent application.

Attachments:

1 ⇨	Waipātiki Wastewater Treatment Plant Long Term Solution - Alternatives Assessment Report V1	WAT-13-24-32	Under Separate Cover
2 ⇨	Deed of Nomination HDC and HBRC - Waipātiki Campground	50481#001#0090	Under Separate Cover
3 ⇨	Waipatiki Discharge to air and land consent - AUTH-115047-02	WAT-13-24-33	Under Separate Cover

Summary of Considerations - He Whakarāpopoto Whakaarohanga

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 wellbeing of communities in the present and for the future.

Link to the Council’s Community Outcomes – Ngā Hononga ki Ngā Putanga ā-Hapori

This Report contributes to ensuring the provision of fit for purpose wastewater infrastructure in Waipātiki that is efficient, effective, and appropriate for the environmental, cultural, social and economic wellbeing of the community.

Māori Impact Statement - Te Tauākī Kaupapa Māori

The renewal of the discharge consent in Waipātiki requires partnership, input and direction from mana whenua. Maungaharuru-Tangitū Trust are an integral part of the project team and are in support of the long term wastewater solution.

Sustainability - Te Toitūtanga

The project consents require the WWTP to address sustainability and resilience issues.

Financial considerations - Ngā Whakaarohanga Ahumoni

Discussed in the Report.

Significance and Engagement - Te Hiranga me te Tūhonotanga

This decision/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

Consultation and engagement with Waipātiki residents and the wider community is ongoing.

Rural Community Board – Te Poari Tuawhenua-ā-Hapori

The Board is briefed as appropriate.

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

Gus Charteris, Manager - Recovery & Special Projects

Te Take:

Subject:

Cyclone Gabrielle Recovery Report Q4 April - July 2024

1.0 Purpose and summary - Te Kaupapa Me Te Whakarāpopototanga

1.1 The purpose of this report is to provide the Strategy and Recovery Committee with an update on Council’s Cyclone Gabrielle Recovery work programme for the period covering April - July 2024.

1.2 This report is for information purposes only, with no decision required.

1.3 The report seeks to provide an overall picture of how Council is meeting its recovery objectives by utilising the structure of Council’s Cyclone Gabrielle Recovery Framework, adopted by this Committee in December 2023.

1.4 Officers recognise the attached report is long and hope the content has been made as digestible as possible. The length of the report is due to two factors - there is a lot of work occurring in the cyclone recovery space in Heretaunga/Hastings and the reporting period is longer than normal due to recent Strategy and Recovery Committee Meetings being rescheduled.

1.5 Officers are continuing to find ways to evolve this report to make it more engaging for Councillors and the community. In this report, we have embedded two videos for readers to watch and officers hope this is useful.

1.6 The Recovery Framework organises Council’s recovery workstreams into six main Pou:

· Resilient Infrastructure

· Whānau and Community Resilience

· Category 3 Voluntary Buy-out programme

· Environmental Resilience

· Economic Growth

· Primary Sector

1.7 These Recovery Pou are also supported by the Support Pou, consisting of finance, communications and engagement and building recovery. These support functions have been included in the report to ensure a full picture of the recovery work programme can be communicated.

1.8 Highlights in the Cyclone Gabrielle Recovery Report Q4 May – July 2024 (Attachment 1) have been summarised below:

· Significant progress has been made in providing Category 3 property owners with pathways to resettle in safer areas and remove the intolerable risk to life that resides in residential dwellings in Category 3 areas.

- Around 97% of owners actively engaging in process.

- 84% of eligible property owners have received an offer; nearly 75% have approved the offer; and 54% have settled.

- The Voluntary Buy-out Office (VBO) continues to proactively engage with remaining owners. Officers expect over 90% of owners will have reached a decision before 24 Oct 2024 (1yr since opening).

- Demolition is complete (or not needed) for 30% of properties.

- Forecasts of the full cost of the programme continue to indicate Council will come in around the $50m cap.

· The recent flooding event in Haumoana showed Council’s resourcing and investment in community resilience training, community civil defence hubs, welfare supplies and ongoing engagement with community hub leads was a key factor in a well-planned and effective response to the local State of Emergency.

· This quarter saw the release of the Regional Recovery Agency’s Te Matau-a-Maui Hawke’s Bay Regional Recovery Plan 2.0. The purpose of the plan is to set out regional level medium to longer-term recovery goals for Hawke’s Bay, together with proposed programmes and actions for achieving them.

· The Governor-General’s visit to cyclone-affected communities in Hawke’s Bay occurred this quarter, with her hosting a special event in Hastings to give recognition of members of the community for their significant input and contribution in the recovery of the region since Cyclone Gabrielle.

· The marking of the completion of the first major transport rebuild project took place this quarter, with the formal opening of the Chrystal Twin Culvert destroyed during Cyclone Gabrielle. Other key updates from the Transport Recovery work programme include:

- The establishment of the Infrastructure Recovery Supplier Panel.

- The contract for the first major package of recovery work on Taihape Road has been awarded and about to get underway.

- Rebuilds are progressing well at Puketapu, Kereru and Matapiro.

· Council’s successful funding allocation from the Lottery Hawke’s Bay Community Te Matāu a Māui Regional Recovery fund for $854,500 to support the development of additional community hubs with a focus on the Pacific Community. Council has also received a further $200,000 from the New Zealand Red Cross to support community recovery.

· Council’s Recovery Financial Update is outlined below. The key points for this quarter include:

- Significant funds were received in advance from Crown Infrastructure Partners (CIP) for the Category 3 Property Buyouts. Now that Council’s reached financial year end, and settlements to 30 June have been confirmed, the CIP funds that relate to settlements for 2024/25 have been moved into the correct financial period. The funds received in advance are no longer reflected in the revenue line for 2023/24 results.

- Total funds received in advance that relate to future settlements is $16.5m

- Total cash received to date from CIP is $36.2m, out of a total expected amount of $40m.

- Year end adjustments have also resulted in any unspent grant funds within the Whānau Community Resilience Pou being moved into 2024/25 financial period.

- Total grants received in advance that have yet to be spent amount to $2m.

- Total grant funding secured within the Whānau Community Resilience space to date is $4m.

- Infrastructure Resilience revenue includes CIP funding of $30.1m

- Other Recovery revenue includes Better Off funding received totalling $7.848m, insurance recoveries of $505k and Waste levy recoveries of $389k.

	Infrastructure Resilience	Category 3 Buyout	Whānau Community Resilience	Environmental Resilience	Other Recovery	TOTAL
Revenue	$75,161,823	$19,890,590	$2,003,372	$8,062,582	$896,935	$106,015,302
Expenditure	$42,387,771	$25,842,882	$2,592,640	$375,711	$1,552,980	$72,751,983
	$32,774,052	-$5,952,291	-$589,268	$7,686,871	-$656,045	$33,263,319
Capital Works	$46,909,955	$16,825,654	$20,162	$168,451	$35,349	$63,959,571
Net loan funding	-$14,135,903	-$22,777,945	-$609,430	$7,518,420	-$691,394	-$30,696,252
Recovery Framework	Activity	Revenue	Expenditure	Net	Note
Infrastructure Resilience	Roading	$75,161,823	$41,148,579	$34,013,244	Net proceeds go towards capital expenditure spend
	3Waters		$815,514	-$815,514	Recovery spend. Loan funded
	Building Control		$423,678	-$423,678	Recovery spend. Loan funded
Category 3 Buyout	Policy Development	$143,881	$287,761	-$143,881	Part of the $50m loan funding
	Property Costs	$19,680,802	$25,225,582	-$5,544,780	Revenue received from CIP for properties not yet settled has been moved into 24/25 financial year. Losses represent Council's share of relocation offers that needs loan funding
	Office Costs	$65,908	$329,539	-$263,631	Part of the $50m loan funding
Whānau Community Resilience	Red Cross	$370,418	$370,419	-$1	Unspent grant money moved to 24/25
	NIWE	$1,146,454	$1,126,293	$20,161	Spent on welfare trailers (Capex). Unspent grant money moved to 24/25.
	Other	$27,500	$636,928	-$609,428
	MSD	$459,000	$459,000	$0	Unspent grant money moved to 24/25
Other Recovery	Waste	$391,685	$547,494	-$155,809
	Insurance related spend	$505,250	$543,110	-$37,860
	Other	$8,062,582	$462,375	$7,600,206	Better off funding
Environmental Resilience			$375,711	-$375,711	Parks recovery spend
TOTAL		$106,015,302	$72,751,983	$33,263,319

1.9 Based on feedback from the last quarter’s Recovery Update Report, officers have included a more detailed section on the recovery work that Transport Recovery East Coast (TREC) is undertaking on the state highway network.

1.10 Recovery Pou Leads will provide a verbal update at the meeting on their areas of recovery.

2.0 Recommendations - Ngā Tūtohunga

2.1 That the Strategy and Recovery Committee receive the report titled Cyclone Gabrielle Recovery Report Q4 April - July 2024 dated 1 August 2024.

2.2 That the Committee notes key highlights outlined in the Cyclone Gabrielle Recovery Report:

a) Council’s decisions on 23 May 2024 to provide a timeframe for completion of the Voluntary Buy-out process, including timeframes relating to owner engagement, have been successful in motivating some owners to engage and/or re-engage in the process.

b) Council’s investment in community resilience training, community civil defence hubs, welfare supplies and ongoing engagement with community hub leads was a key factor in a well-planned response to the State of Emergency situation in Haumoana.

c) Council’s effective response to the recent flooding event in Haumoana was also a reflection of Council’s commitment following the Cyclone to build and improve community resilience and emergency response across all communities in Hastings.

Attachments:

1 ⇨

Final Cyclone Gabrielle Recovery Report Q4 April - July 2024

CG-17-32-00100

Document 3

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

Gus Charteris, Manager - Recovery & Special Projects

Jag Pannu, Transportation Manager

Te Take:

Subject:

Sustainable Outcomes Reporting Framework for Cyclone Gabrielle Recovery Roads Infrastructure Works Panel

1.0 Executive Summary – Te Kaupapa Me Te Whakarāpopototanga

1.1 This report responds to the discussion at the 27 June 2024 Council meeting on the awarding of the contract package of work for Taihape Road Skip remedial works where Council recorded that it had a strong focus and priority on the achievement of social procurement outcomes.

1.2 This report provides, and seeks the Committee’s adoption of, a comprehensive Sustainable Outcomes Reporting Framework (the Framework) that actively manages contractors to deliver on Council’s social procurement objectives in regard to the Cyclone Gabrielle Recovery Roads Infrastructure Works Suppliers Panel (‘Suppliers Panel’).

1.3 The Framework will inform a monthly monitoring and reporting template for each individual contractor with specific measures, indicators and evaluation criteria used to measure progress. Monthly evaluations and progress reports will be consolidated into quarterly monitoring reports to go to the Performance and Monitoring Committee for review and discussion.

1.4 The detail that sits within this Framework is still being worked through i.e. some of the measures and indicators that will be used to assess whether the relevant outcome is being met or improved are draft and/or need further testing. A balance will need to be struck between gathering appropriate data to measure progress on the one hand and reporting burden and associated cost on the other. This will then need to be tested and agreed with suppliers. This work will be completed over the next few months.

1.5 The Sustainable Outcomes Reporting Framework has been attached to this report as Attachment 1 and is made up of the following:

· Four key sustainable outcomes (or ‘attributes’) – Social, Environmental, Cultural, and Economic.

· A number of ‘sub-attributes’ that sit under the four key sustainable outcomes/attributes. These are accompanied by a broad outcome statement or measure where possible. For example, the ‘Social’ attribute includes the ‘sub-attributes’ - upskilling staff and expanding employment.

· Each sub-attribute has a number of either measures or indicators that will be used to assess whether the outcome statement for the sub-attribute is being met or not. These are currently a work in progress.

· Evaluation criteria which help to assess, and provide a rating for, how well (or not) the outcome statement for the sub-attribute is being met or not. The evaluation criteria are also a work in progress.

1.6 Council is not starting from scratch. In 2021 Council developed a regional ‘Progressive Procurement Toolkit’ and ‘Progressive Procurement Supplier Guide’ in collaboration with Napier City Council, Central Hawke’s Bay District Council, Wairoa District Council, and Hawke’s Bay Regional Council. The Councils recognised that to achieve sustainable outcomes, a framework based on a collaborative and standardised approach was needed, and that there needed to be accessible collateral to assist and facilitate application.

1.7 Our suppliers are also not starting from scratch and are largely meeting key expectations e.g. the use of local suppliers, building robust induction, training, and development systems; the use of trades academies and apprenticeships; and increasing Māori, Pasifika, and Women in trades. There is an opportunity to work with our suppliers to build on this solid base overtime. We recognise there is no one-size-fits-all to engaging stakeholders to deliver social value, each interaction needs to be tailored, and that the context (in particular, the funding context and requirements set by external funders) changes over time.

1.8 The wider operating context has changed significantly over the last 6-12 months. We have moved beyond the COVID funding period, where funding was often attached to a core set of employment and training outcomes, and there is now a much greater scrutiny of the timeliness and effectiveness of Central Government spending. This has led to NZTA setting clear expectations that funding will be assessed primarily on timeliness and delivery, and ‘claw-back’ will be considered where funding is not focussed strictly on roading rebuild outcomes.

1.9 The current economic downturn and decisions Central Government has made in relation to funding Transport Rebuilt East Coast (TREC) (a focus on restoring state highways to pre-cyclone conditions, with further rebuild funding needing to be approved through NZTA’s National Land Transport Fund (NLTF)), have also significantly changed the dynamics of the local civil construction market. We have moved from a context where there was greater room to consider additionality of spend to a situation where success looks more like business health and survivability and the retention of people and existing firm-level initiatives that support progressive procurement outcomes. This changed context requires a pragmatic view of what success looks like in relation to progressive procurement outcomes at this point of the infrastructure rebuild programme. This does not mean Council should not seek broader sustainable outcomes from suppliers, but we need to be mindful of what is possible within the economic and funding constraints we are operating within.

1.10 Council’s Progressive Procurement Guidelines encourage sustainable growth that is suitable and scalable to the contract work being done. In practice, this means translating ‘Contractor Promises’ from the tender process into practical initial KPIs and measures, building a better baseline understanding of what might be possible over say the first year of the contract, and then building additionality into the contract relationship overtime. Council can also look to utilise existing external funding support and mechanisms that might support broader outcomes e.g. Ministry of Social Development (MSD) funding and mechanisms and initiatives like the Jobs and Skills Hub.

1.11 This process can be summarised as follows:

· Translate ‘Contractor Promises’ from the successful tenderers into practical initial measures and indicators.

· Build a better baseline understanding of what might be possible through delivery of the contract and look to build additionality, if possible, into future contracts/packets of work overtime.

· Utilise existing external funding support and mechanisms that can help to support broader outcomes e.g. MSD and training initiatives provided by the private and public sectors.

1.12 A key issue that has been identified at the regional level is that there is limited visibility on the use and monitoring of the progressive procurement approach, and what is being achieved due to a lack of public facing reporting. This Framework will help to fill this gap and officers will work with the Regional Recovery Agency (RRA) and the Regional Economic Development Agency (REDA) to build a picture of progress at the regional level.

2.0 Recommendations - Ngā Tūtohunga

A) That the Strategy and Recovery Committee receive the report titled Sustainable Outcomes Reporting Framework for Cyclone Gabrielle Recovery Roads Infrastructure Works Panel dated 1 August 2024.

B) That the Committee adopts the Sustainable Outcomes Reporting Framework for the Cyclone Gabrielle Recovery Roads Infrastructure Works Panel, to deliver on Council’s sustainable outcomes (social procurement objectives).

C) That the Committee note the Sustainable Outcomes Reporting Framework will be used to develop a monthly reporting template for each supplier, with quarterly progress reports to go to the Performance and Monitoring Committee, and that the specific measures and indicators are a work in progress at this stage and will need to be tested and agreed with suppliers.

3.0 Background – Te Horopaki

Recovery infrastructure programme and wider operating context

3.1 The Cyclone Gabrielle weather event of 14 February 2023 resulted in widespread damage across Councils’ transport network with associated disruption to communities.

3.2 Council has a considerable infrastructure programme of work to prioritise and deliver in order to restore the capacity of the network to pre-Cyclone levels, including:

· Roading & Slips - approximately 30km of pavements need to be rebuilt and approximately 210 Geotechnical / Slip Repairs, (with individual costs ranging from $300k - $5m).

· Small/Minor Culvert - approximately 4000 small culverts are blocked and damaged.

· Major Culverts & Bridges - 16 bridges and 5 large culverts are destroyed or damaged.

3.3 The programme of works is envisaged to run for 5-7 years with initial rebuild estimates ranging from $700m-$800m, with two of the more significant bridges estimated to cost $70m each.

3.4 The wider operating context has changed significantly over the last 6-12 months. We have moved beyond the COVID funding period, where funding was often attached to a core set of employment and training outcomes, and there is now a much greater scrutiny of the timeliness and effectiveness of Central Government spending. This has led to NZTA setting clear expectations that funding will be assessed primarily on timeliness and delivery, and ‘claw-back’ will be considered where funding is not focussed strictly on roading rebuild outcomes.

3.5 The current economic downturn and decisions Central Government has made in relation to funding Transport Rebuilt East Coast (TREC) (a focus on restoring state highways to pre-cyclone conditions, with further rebuild funding needing to be approved through NZTA’s National Land Transport Fund (NLTF)), have also significantly changed the dynamics of the local civil construction market. We have moved from a context where there was greater room to consider additionality of spend to a situation where success looks more like business health and survivability and the retention of people and existing firm-level initiatives that support progressive procurement outcomes. This changed context requires a pragmatic view of what success looks like in relation to progressive procurement outcomes at this point of the infrastructure rebuild programme. This does not mean Council should not seek broader sustainable outcomes from suppliers, but we need to be mindful of what is possible within the economic and funding constraints we are operating within.

3.6 Council’s Progressive Procurement Guidelines encourage sustainable growth that is suitable and scalable to the contract work being done. In practice, this means translating ‘Contractor Promises’ from the tender process into practical initial KPIs and measures, building a better baseline understanding of what might be possible over say the first year of the contract, and then building additionality into the contract relationship overtime. Council can also look to utilise existing external funding support and mechanisms that might support broader outcomes e.g. Ministry of Social Development (MSD) funding and mechanisms and initiatives like the Jobs and Skills Hub.

3.7 This process can be summarised as follows:

· Translate ‘Contractor Promises’ from the successful tenderers into practical initial KPIs and measures.

· Build a better baseline understanding of what might be possible through delivery of the contract and look to build additionality, if possible, into future contracts/packets of work overtime.

· Utilise existing external funding support and mechanisms that can help to support broader outcomes e.g. MSD and training initiatives provided by the private and public sectors.

Progressive Procurement

3.8 Progressive Procurement provides a pathway to achieving positive sustainable economic, social, environmental, and cultural outcomes. Central and local government organisations have the ability to deliver these additional benefits to the community and/or meet other strategic objectives through our supply chains, while ensuring competitive pricing and maintaining quality standards. By embedding these outcomes through our procurements, we further enhance the wellbeing of our communities.

3.9 This is not a new space for Council and like most organisations we are on a journey. We recognise there is no one-size-fits-all to engaging stakeholders to deliver social value, each interaction needs to be tailored, and that the context (in particular, the funding context and requirements set by external funders) changes over time. In 2021 Council developed a regional ‘Progressive Procurement Toolkit’ and ‘Progressive Procurement Supplier Guide’ in collaboration with Napier City Council, Central Hawke’s Bay District Council, Wairoa District Council, and Hawke’s Bay Regional Council. The Councils recognised that to achieve sustainable outcomes, a framework based on a collaborative and standardised approach was needed, and that there needed to be accessible collateral to assist and facilitate application. This work sets out procurement guidance across four focus area:

· Social Wellbeing: providing equal opportunities so prosperity is shared across our community.

· Cultural Wellbeing: Genuinely partner with Mana whenua.

· Economic Wellbeing: building a diverse and prosperous economy.

· Environment Wellbeing: preventing and reversing environmental degradation.

3.10 In relation to the Council’s Cyclone Gabrielle Recovery infrastructure programme, Council has adopted a ‘Cyclone Gabrielle Recovery Procurement Strategy’ with five key objectives for the procurement of physical works:

1. To enable rapid delivery of recovery programme, to recover from fragile networks and reconnect communities.

2. To accelerate procurement and reduce tendering costs and effort and enable quicker design to delivery timeframes.

3. To maintain enduring contractor capacity and capability in for HDC (while large programmes of work are in progress within adjacent councils and TREC Alliance).

4. Deliver broader outcomes in line with our commitments to Hawke’s Bay regional progressive procurement initiatives.

5. Create a healthy competitive market that upholds good procurement practices and public value outcomes through appropriate packaging of works to that aligns with the market capability.

3.11 In relation to the “broader outcomes” objective and consistent with Council’s progressive procurement objectives, Council’s infrastructure recovery programme will focus on four sustainable outcomes to ensure the broader benefits of the rebuild programme are circulating back into the local community. These include:

· Social Wellbeing: Providing equal opportunities so prosperity is shared across our community.

· Cultural Wellbeing: Genuinely partnering with mana whenua.

· Economic Wellbeing: Building a diverse and prosperous economy.

· Environmental Wellbeing: Preventing and reversing environmental degradation.

3.12 These sustainable outcomes are aligned with the progressive procurement framework approach being developed by the Regional Recovery Agency (RRA) for the wider regional infrastructure recovery work programme.

Regional Recovery Agency’s Progressive Procurement Framework Approach

The RRA’s progressive procurement framework approach focuses on the areas outlined below:

Employment

3.13 The scale of the rebuild programme provides opportunities to grow the workforce within Hawke’s Bay and targeted planning, initiatives and engagement with priority groups will keep our people in employment.

3.14 Through working with key stakeholders, additional resources can be unlocked to support this broader outcome, such as working closely with the Ministry of Social Development in employment training and employer support.

Upskilling and Training

3.15 The upskilling of the local workforce, both at entry levels and by the development of the existing workforce. This will create a stronger and more productive workforce.

3.16 The region’s infrastructure programme of work will create opportunities for local suppliers to bring on new employees with a focus on graduate engineering programmes, cadetship engineering programmes and construction workforce development programmes.

Local Supply-Chain

3.17 Buying local can deliver financial, logistical, and environmental outcomes along with increased flexibility and control. Local suppliers re-invest back into their communities (through their spend and employment) – therefore improving the local economy.

Engagement

3.18 Upholding mana whenua rangatiratanga (leadership), kaitiakitanga (guardianship) and interests can support collaborative approaches and achieve broader mutually beneficial outcomes.

3.19 Engaging with marae, hapu and PSGE groups on the infrastructure programme of work will ensure additional value can be added.

4.0 Discussion – Te Matapakitanga

4.1 Council’s Sustainable Outcomes Reporting Framework will report on how Council’s Taihape Road Skip remedial works programme is delivering broader wellbeing outcomes as outlined above.

4.2 The detail that sits within this Framework is still being worked through i.e. some of the measures and indicators that will be used to assess whether the relevant outcome is being met or improved are draft and/or need further testing. A balance will need to be struck between gathering appropriate data to measure progress on the one hand and reporting burden and associated cost on the other. This will then need to be tested and agreed with suppliers. This work will be completed over the next few weeks.

4.3 The Sustainable Outcomes Reporting Framework has been attached to this report as Attachment 1 and is made up of the following:

· Four key sustainable outcomes (or ‘attributes’) – Social, Environmental, Cultural, and Economic.

· A number of ‘sub-attributes’ that sit under the four key sustainable outcomes/attributes. These are accompanied by a broad outcome statement or measure where possible. For example, the ‘Social’ attribute includes the ‘sub-attributes’ - upskilling staff and expanding employment.

Unacceptable	Training could be described as bare minimum to meet legislation. No training records kept. No well-being initiatives in place. No plan for training.
Needs improvement	Training in place. Some evidence of record keeping. Improvement plan in place. Training needs identified and Improvement plan in place to develop and initiate a programme
Acceptable	Training in place and open to all qualifying employees. Records up to date. Current employees on existing work package. Robust programmes in place and staff working on this contract are part of it.
Very good	Initiatives well beyond standard expected. Initiatives offered to subcontractors and suppliers. Programmes offered to wider supplier and subcontractor community.

4.4 It should be noted that the Framework will form one part of the reporting from contractors working in the infrastructure recovery programme, with other tangible components of each contract being monitored and managed by Council’s standard contract management process.

Procurement and Tender Process

4.5 Strategy and Recovery Committee adopted the Cyclone Gabrielle Recovery Procurement Strategy for the procurement of physical infrastructure works on 5 December 2023.

4.6 The adopted Strategy outlined a delivery structure for phases of works with associated work packages to be allocated to approved contractors on the Cyclone Gabrielle Recovery Road Infrastructure Works Suppliers Panel.

4.7 At its meeting on 27 June 2024, Council approved the appointment of four contractors for the Infrastructure Works Suppliers Panel:

· TW Civil and Infrastructure

· Downer New Zealand LTD

· Hick Bros Civil Construction Limited

· Tupore Infrastructure Limited.

4.8 To be appointed to Council’s Suppliers Panel, contractors needed to submit comprehensive tender responses including evidence of a detailed track record of relevant work, a full understanding of the requirements of the contract, and a commitment to providing experienced, skilled, and dynamic teams.

4.9 They also needed to demonstrate in their tender response a strong focus on delivering on Council’s required sustainable outcomes as stipulated in the ‘Request for Tender’. These outcomes are summarised below:

Community Wellbeing	Outcomes
Social Wellbeing	Employment Diversity
	Community Engagement
	Health, Safety and Wellbeing Initiatives for employees
	Upskilling staff and wider workforce
	Expanding employment for long term growth across the programme
Cultural Wellbeing	Building partnerships with mana whenua
Cultural Wellbeing	Wellbeing initiatives for employees
Economic Wellbeing	Use of local resources and local workforce
	Create a healthy competitive market that upholds good procurement practices
	Commitment to regional growth
Environmental Wellbeing	Compliance
	Sustainability
	Reduction of emissions

Tender Responses

4.10 Based on the details and examples given in the tender responses, each contractor was scored on how they were going to deliver on the sustainable outcomes.

4.11 The below table summarises the key commitments given by the approved contractors in the tender process.

Wellbeing	Summary of Tender Responses
Social Wellbeing	Breakdowns provided to show employment diversity in workforce
	Comprehensive health, safety and wellbeing plans outlined
	Internal resourcing available (such as pastoral care workers) to provide mental health and wellbeing support to workforce
	Partnerships outlined with social organisations such as Mayors Taskforce for Jobs, Ministry for Social Development (Mana in Mahi), Corrections, LIFT Social Enterprise, Mahi for Youth, Pursuit
	Training and upskilling of staff outlined, including workforce development plans and outline of cadet and graduate programmes
Cultural Wellbeing	Evidence of established partnerships with local marae and hapu
Cultural Wellbeing	Practices outlined to promote Tikanga Māori
Economic Wellbeing	All contractors have a local base
	All subcontractors will be locally based
	Recruitment programmes outlined to employ local workforce
Environmental Wellbeing	Maximise opportunity to recycle existing materials on site
Environmental Wellbeing	Conditions of resource consents held by contractor have been met

4.12 Officers are in the process of translating these tender responses into specific measures, indicators, and evaluation criteria that will be used to measure and monitor progress on delivering Council’s social procurement objectives. This will be monitored and tracked on the monthly basis, alongside the standard contract management process (which evaluates and scores each contractor on their delivery and effectiveness). These monthly evaluations will be consolidated into reports which will go to the Performance and Monitoring Committee for discussion every quarter.

4.13 It should be noted that most of the panel contractors are already meeting some or all of the community wellbeing objectives and outcomes based on their tender responses. There is an opportunity to work with our suppliers to build on this solid base overtime. The Council Sustainable Outcomes Reporting Framework recognises there is no one-size-fits-all to engaging stakeholders to deliver social value, each interaction needs to be tailored, and that the context (in particular, the funding context and requirements set by external funders) changes over time.

5.0 Options – Ngā Kōwhiringa

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

5.1 Adopt the Sustainable Outcomes Reporting Framework for the Cyclone Gabrielle Recovery Infrastructure Works.

Advantages

· Aligns with the progressive procurement framework approach being developed by the Regional Recovery Agency for the wider transport work programme taking place in Hawke’s Bay.

· Provides robust and regular reporting to the community on Council’s progressive procurement objectives.

· Will provide clear measures and indicators for suppliers to report on broader social outcomes.

· Holds contractors and suppliers to account for what is being promised.

Disadvantages

· Requires more resourcing from Council to monitor additional contract management requirements.

· Council investment may be required to integrate the Sustainable Outcomes Reporting Framework into the existing contract management system. NB: The alternative will be to have a relatively manual reporting system for the Sustainable Outcomes Reporting Framework.

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

5.2 Not adopt the Sustainable Outcomes Reporting Framework for the Cyclone Gabrielle Recovery Infrastructure Works.

Advantages

· Contract management process is simpler, and less resource is needed.

Disadvantages

· No monitoring of contractors and suppliers on how they are supporting the local community through sustainable outcomes.

· Council is unable to show how the significant investment in the infrastructure recovery work is achieving broad social procurement outcomes.

6.0 Next steps – Te Anga Whakamua

6.1 Officers will continue to refine the measures, indicates, and evaluation criteria that sit within the Sustainable Outcomes Reporting Framework.

6.2 Test the Sustainable Outcomes Reporting Framework with Supplier Panel and project team, integrate any feedback, and finalise templates for monthly and quarterly reporting.

6.3 Integrate finalised framework into standard contract management practices for project team to use for next Performance and Monitoring meeting.

Attachments:

1 ⇩

DRAFT HDC Sustainable Outcomes Reporting Framework_29072024

CG-17-32-00103

Summary of Considerations - He Whakarāpopoto Whakaarohanga

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

Link to the Council’s Community Outcomes – Ngā Hononga ki Ngā Putanga ā-Hapori

This proposal promotes the social, cultural, economic and environmental wellbeing of communities in the present and for the future.

Māori Impact Statement - Te Tauākī Kaupapa Māori

The Sustainable Outcomes Reporting Framework ensures the transport recovery work programme in Hastings delivers on sustainable outcomes which are focused on the improving the wellbeing and broader social procurement outcomes for priority groups, including Māori.

A robust reporting framework for delivering community wellbeing outcomes is a good opportunity to show how the significant investment in the infrastructure programme of work will provide long term prosperity across the community and can be focused to address issues of inequity and inequality which disproportionately affect Māori and Pasifika.

Sustainability - Te Toitūtanga

The Sustainable Outcomes Reporting Framework ensures the procurement for the transport recovery work programme in Hastings focuses on key objectives, being:

· To enable rapid delivery of recovery programme, to recover from fragile networks and reconnect communities.

· To accelerate procurement and reduce tendering costs and effort and enable quicker design to delivery timeframes.

· To maintain enduring contractor capacity and capability in for HDC (while large programmes of work are in progress within adjacent councils and TREC Alliance).

· Deliver broader outcomes in line with our commitments to Hawke’s Bay regional progressive procurement initiatives.

· Create a healthy competitive market that upholds good procurement practices and public value outcomes through appropriate packaging of works to that aligns with the market capability.

Financial considerations - Ngā Whakaarohanga Ahumoni

If adopted, the Sustainable Outcomes Reporting Framework has no significant financial implications at this stage. However, it should be noted that investment might be required by Council at a later date to develop an effective and efficient reporting programme for the Framework.

The potential construction value for the Panel is estimated to be approximately $40-60m per year with a total value of $120-180m for the three-year contract period. This cost forms part of budgeted project costs through the approved Long-Term Plan.

These Council works are funded by the Crown under the ‘National Resilience Plan for Regional Transport’.

Significance and Engagement - Te Hiranga me te Tūhonotanga

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

Councils’ capital works programme has been consulted on with the Community under the Special Consultative Procedure for the 2024-2034 Long Term Plan.

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

There will be continual consultation and discussion with the Cyclone Gabrielle Recovery Road Infrastructure Works Suppliers Panel to ensure effective and efficient reporting is achieved using the Framework and KPIs. The project team have also been consulted on the use of the Framework across all infrastructure work packages.

Risks

Opportunity: Adopt the Sustainable Outcomes Reporting Framework for the Cyclone Gabrielle Recovery Infrastructure Works

REWARD – Te Utu

RISK – Te Tūraru

· Aligns Council’s outcomes with the progressive procurement framework approach being developed by the Regional Recovery Agency for the wider transport work programme taking place in Hawke’s Bay.

· Provides robust and regular reporting to the community on Council’s progressive procurement objectives.

· Provides clear KPIs for contractors and suppliers to report on broader social outcomes.

· Holds contractors and suppliers to account for what is being promised.

· Creates additional workload on staff to monitor contractors and report on further KPIs.

· Financial investment may be required at a later date to create efficient reporting tool for the Framework.

Rural Community Board – Te Poari Tuawhenua-ā-Hapori

Rural Community Board is updated regularly on Council’s infrastructure programme of work.

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

Rebecca Sutton, Programme Manager: Local Area Plans

Te Take:

Subject:

Local Area Plan Programme Update

1.0 Executive Summary – Te Kaupapa Me Te Whakarāpopototanga

1.1 The purpose of this report is to update the Committee regarding progress on the Local Area Plans Programme.

2.0 Recommendations - Ngā Tūtohunga

A) That the Strategy and Recovery Committee receive the report titled Local Area Plan Programme Update dated 1 August 2024.

B) That the Committee notes that community engagement on the first four Local Area Plans will commence in September 2024.

3.0 Background – Te Horopaki

3.1 The Local Area Plans Programme (LAPP) was introduced into Council’s overall growth workstream as a result of the 2022 Review of the Medium Density Housing Strategy undertaken by Cogito Consulting. This review highlighted that the existing District Plan zonings and associated provisions ‘stand alone as a delivery tool and are not clearly supported by broader spatial planning of the neighbourhood in terms of location, infrastructure, and connectivity’. The LAPP programme was designed to address this identified gap by providing neighbourhood-scale spatial plans for identified medium density housing areas.

3.2 As reported back to the Strategy and Policy Committee in July 2022, the Review of the Medium Density Housing Strategy resulted in the following six key recommendations. Of these recommendations, three have directly informed the development of the LAPP, and a further two are influenced by the work of the LAPP.

Original Recommendation from 2022 Review Report.

Applicable to the Local Area Plans Programme

Other Work Programme

- Identify and define expanded Medium Density Residential Development Areas for Hastings with locational attributes that will support a well-functioning urban environment, focussing on centres, open space and public transport.

Yes – Phase 1 of the LAPP

- Develop Place Based Plans for Medium Density Residential Development Areas, addressing land use and network level infrastructure requirements in collaboration with the community/stakeholders.

Yes – Phase 1 of the LAPP

- Implement changes to planning policy documents, plans and guidelines as identified.

In part – Phase 1 of the LAPP has influenced initial extent of the Medium Density Residential zone.

Plan Change 5 – Right Homes, Right Place to the District Plan

- Plan and allocate infrastructure investment to support the delivery of development within Medium Density Residential Development Areas.

In part – Phase 1 of the LAPP will inform planning for infrastructure investment

Essential Services Development Plan

- Amend the Development Contributions Policy as necessitated.

Separate Work Programme

- Continue with initiatives to partner with the development sector on housing projects, including pilot projects that clearly demonstrate alignment with housing strategy principles.

Yes – Phase 2 of the LAPP

3.3 This report follows previous presentations made to the Committee in July and November 2023 and provides a summary of the LAPP development.

3.4 The objectives of the LAPP seek to ensure that:

- Clearly defined areas where medium density housing is encouraged, and anticipated, adopting a place-based approach.

- Identified areas are suitably supported by all essential infrastructure, including open space provision.

- The uptake and implementation of quality, medium-density developments within these areas are facilitated by the Operative District Plan provisions and encouraged at a strategic level.

The intent is to ensure that medium density neighbourhoods are actively planned and suitably supported, resulting in well-functioning intensification-focused local growth areas. In contrast, unplanned and/or ad-hoc residential intensification across urban areas can lead to infrastructure inefficiencies and uncertainty for developers and communities.

4.0 Discussion – Te Matapakitanga

4.1 PROGRAMME CONTEXT

4.1.1 The LAPP is tasked with preparing neighbourhood-scale spatial plans to facilitate residential intensification. This approach ensures a clear methodology for determining the location of medium-density housing within the urban environment of Hastings, supported by the necessary infrastructure.

4.1.2 A neighbourhood-scale work programme must be both responsive and directive to maintain consistency across relevant strategies. Specifically, the LAPP responds to higher-order strategies (such as the Heretaunga Plains Urban Development Strategy) and directs/informs changes to the District Plan (such as that of Plan Change 5 – Right Homes, Right Place) to accommodate necessary land use changes that become evident.

4.1.3 As a result, the LAPP operates within a dynamic context, influenced by national growth directives and the ongoing development of the Future Development Strategy across Hastings and Napier and directive to existing District Plan changes to ensure that a consistent approach to growth is provided. The LAPP remains adaptable to this changing environment while upholding its core objectives.

4.1.4 The over-arching goal of the LAPP is to realise, at-scale, residential intensification within the identified Local Areas, to provide for choice in the housing market and to support growth within the existing urban environment in a planned and efficient manner.

4.2 PROGRAMME DESIGN

The LAPP is structured in two phases: Planning and Implementation.

4.2.1 Phase 1 – Planning

This first phase has involved development of the programme itself, as detailed in the Local Area Plans Programme Overview and Supporting Information Document (refer Attachment 1). This document essentially serves as the ‘Blueprint’ for the development of the programme and establishes the vision and objectives of the LAPP. Most importantly, this phase of work has developed the methodology used to identify and determine the extent of the first four Medium Density neighbourhoods relative to Hastings Central – West, East, North and Hospital – refer Figure 1 and directly relates to Recommendation 1 from the 2022 MDHS Review.

Figure 1 – LAP extents relative to Hastings Central

Drafting of each of the first four Local Area Plans has commenced, with each LAP comprising two documents – a ‘public-facing’ engagement draft and a more substantive, ‘supporting information’ report. This structure ensures a concise, informative and user-friendly document. It is anticipated that LAP’s applicable to Flaxmere and Havelock North will be prepared subsequent to completion of the first four Local Area Plans.

The engagement drafts inform the community of what a Local Area Plan is, its scope, and seeks feedback on features of local identity and betterment opportunities. A final communications and marketing plan for this phase of the programme is in development, with commencement of engagement activities to commence either in late August or early September 2024.

The community feedback will inform the final LAP’s, which will replace the engagement drafts and will be brought to Council for formal adoption. The preparation of these plans is directly aligned with Recommendation 2 from the 2022 MDHS Review.

4.1.2 Phase 2 – Implementation

The second phase of the LAPP will commence following the adoption of the first four Local Area Plans.

Noting that this phase of the programme is still in its infancy, this phase will explore both regulatory and non-regulatory mechanisms to facilitate medium density housing development and includes consideration of partner initiatives as detailed in Recommendation 6 of the 2022 MDHS Review.

4.1.2.1 Regulatory Approach/ Plan Change 5 – Right Homes, Right Place

In terms of successful implementation of the LAPP and development of medium density housing, it is necessary to ensure that the District Plan provides for medium density housing in appropriate areas, as identified in Recommendation 3 of the 2022 MDHS Review.

As mentioned earlier in this report, the preparation of the LAPP has occurred concurrently with the development of Plan Change 5 – Right Homes, Right Place to the District Plan, which was prepared as ‘the first step in the process of aligning the District Plan with Policy 5 of the National Policy Statement on Urban Development.’ As such, this plan change expressly seeks to amend existing plan provisions to provide for a more enabling rule framework for residential intensification, in locations already identified as suitable for greater housing density and anticipated significant change to the existing urban form, to provide for a greater diversity of housing typologies.

As such, this Plan Change represents the regulatory mechanism by which development of medium density housing can occur, with a site-specific focus. The methodology prepared by the LAPP has informed the location and extent of the Medium Density Residential zone proposed under PC 5, to ensure that these documents are aligned and consistent in terms of overall approach.

This Plan Change is well advanced through the formal public consultation requirements detailed within the Resource Management Act, with the Hearings of Submissions completed on the 11 April 2024 and final decisions with regard to zone extents and relevant performance standards anticipated in August 2024. Therefore, it is acknowledged that until such time as the Hearings Panel issue their decisions, this aspect of the implementation relative to the LAPP remains subject to change, however will directly impact upon the development of Phase 2 of the programme, being the implementation of medium density housing.

4.1.2.2 Non-Regulatory Opportunities

As an extension to the existing Medium Density Housing Strategy 2014, the LAPP’s success depends on ‘on-the-ground’ realisation of medium density housing, presenting a risk if the private market does not respond as anticipated. However, this also offer opportunities for innovation and proactive approaches from the Council perspective. Further work will explore:

- Conducting a threshold analysis within each LAP area, to determine the required uptake of residential intensification to trigger the identified betterment projects within local areas;

- The establishment of public/private partnerships (as recommended by the 2022 MDHS Review);

- Prioritisation/ weighting of the identified betterment opportunities across each of the four areas, and where possible, incorporate these works into existing renewals schedules/ within existing budgets;

- The proposed timing of future Plan Changes to the District Plan that are identified as necessary within the Local Area Plan preparation. This will be linked with monitoring of the uptake of intensification opportunities and population growth measures to ensure that Housing Bottom Lines under the NPS: UD continue to be met.

- Alignment with and input to the proposed Development Contributions Policy review to ensure fair and equitable cost recovery from the implementation of growth, acknowledging the inherent benefits associated with providing for growth through intensification.

- Determine whether Council has a role to play in the aggregation of land to facilitate uptake of Medium Density Housing opportunities.

5.0 Next steps – Te Anga Whakamua

5.1 The next step for the LAPP is to complete Phase 1 of the Programme, consisting of:

- Completion of each of the engagement drafts and supporting information reports for the first four LAP areas.

- Finalise the communications and marketing plan and commence the community engagement process.

- Upon completion of the community engagement process, proceed to finalise each Local Area Plan and present to Council for formal adoption.

Attachments:

1 ⇩

Local Area Plans Programme Overview and Supporting Information Document

STR-05-01-04-0002

Summary of Considerations - He Whakarāpopoto Whakaarohanga

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

Link to the Council’s Community Outcomes – Ngā Hononga ki Ngā Putanga ā-Hapori

This proposal promotes the social, cultural, and environmental wellbeing of communities in the present and for the future. It does this by seeking to improve the uptake of medium density housing opportunities within identified areas of the Hastings Urban Environments through an integrated approach, ensuring all necessary above and below ground infrastructure is available and operating at an appropriate level of service within areas identified as suitable to support increased residential intensity.

Māori Impact Statement - Te Tauākī Kaupapa Māori

Hastings District Council positively upholds Te Tiriti o Waitangi | The Treaty of Waitangi as the founding document of Aotearoa New Zealand, with particular regard to the Bunbury Sheet signed by Ngāti Kahungunu Rangatira in June 1840 at Waipureku.

Council recognises and respects the Crown’s responsibility to take appropriate account of the principles of Te Tiriti o Waitangi | The Treaty of Waitangi: Partnership, Participation and Protection. These principles guide an evolving relationship with mana whenua as Council works towards effective and meaningful partnerships in Council business and decision-making processes.

The preparation of each of the Local Area Plans will involve input and collaboration from the mana whenua and the Pou Ahurea team.

Sustainability - Te Toitūtanga

Sustainability is at the centre of the Local Area Plan Programme, with the purpose of the programme to increase the share of residential intensification within the overall growth planned for Hastings, through an integrated, place-based approach. The LAPP will provide for a more efficient use of land, thereby protecting the Heretaunga Plains from unplanned urban sprawl.

Financial considerations - Ngā Whakaarohanga Ahumoni

The planning phase of the LAPP has been included within the existing growth budget. In terms of phase 2 of the programme, including implementation of identified local betterment projects is anticipated to fall across a number of infrastructure-based budgets. Any unbudgeted capital improvements will be recommended for inclusion in future reviews of the Long Term Plan, for consideration against other Council wide priorities.

Significance and Engagement - Te Hiranga me te Tūhonotanga

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

Risks

REWARD – Te Utu

RISK – Te Tūraru

- To provide a planned approach to the uptake of medium density housing developments in a planned, cohesive manner rather than the current ad-hoc, reactive manner.

- To demonstrate that increased residential intensification does not diminish amenity, and in the case of Local Area Plans, can result in area ‘betterment’ /an increased degree of amenity.

That uptake of the opportunity for medium density housing remains limited within the identified areas within Hastings Central.

Thursday, 1 August 2024

Te Hui o Te Kaunihera ā-Rohe o Heretaunga

Hastings District Council: Strategy and Recovery Committee Meeting

Te Rārangi Take
Report to Strategy and Recovery Committee

Nā:

From:

Rebekah Dinwoodie, Group Manager: Community Wellbeing & Services

Te Take:

Subject:

Community Wellbeing Subcommittee Chair's report

1.0 Purpose and summary - Te Kaupapa Me Te Whakarāpopototanga

1.1 The Chair of the Community Wellbeing Subcommittee; Councillor Ana Apatu wishes to provide the Committee an update on recent activities considered by the Subcommittee in line with their ‘Fields of Interest’. An overview of matters considered at informal meetings of the Subcommittee since May 2023 are included in this report for the Committee’s information.

2.0 Background – Te Horopaki

2.1 The Community Wellbeing Subcommittee is responsible for making delegated decisions and advising the Strategy and Recovery Committee by:

· Providing guidance to Council officers in respect of the drafting of Council’s Community Strategies and providing oversight of any relevant Special Consultative Procedures.

· Providing oversight of the implementation of Council’s Community Strategies.

· Providing oversight of the implementation of Council’s Community Plans, Fabulous Flaxmere, Safer Hastings, Civic Pride and Events, Youth Pathways, Keep Hastings Beautiful Strategies, Health, Cultural, Education, Sports, Arts and Heritage Strategies.

2.2 Informal Meeting Dates and Agenda Items:

DATE

AGENDA ITEMS

Tuesday 21^st May 2024

1. Community Emergency Hubs update.

2. Cyclone External Funding Update.

3. Ka Ora Ka Ako Healthy School Lunches Arts and Culture Update.

4. Multicultural Advisory Group.

5. Youth Development: work experience in secondary schools, rangatahi conference and youth programmes in FCC/CCC.

6. Fabulous Flaxmere / Camberley Updates.

7. National Community Wellbeing Committee.

3.0 Discussion – Te Matapakitanga

3.1 Summary of Community Wellbeing Subcommittee Meeting Tuesday 21 May 2024.

3.1.1 Community Emergency Hubs update

An overview of the Community Emergency Hubs activities including locations, equipment, training and progress was given to the Subcommittee. Specifically updates were given on Pasifika and Māori (marae based) hubs.

Additional funding to support the ongoing upgrade and development of Community Hubs across the District has been granted from the Department of Internal Affairs (DIA) totalling $650,000.

The ongoing effective implementation, support and monitoring of Community Emergency Hubs is a priority for Council. As such, the Subcommittee will continue to receive updates on the progress of this work.

3.1.2 Cyclone External Funding Update

Further to the above an external funding update was provided to the Subcommittee. As well as to resource the Emergency Hubs, external funding has been granted for other initiatives.

This includes receiving a further $17,000 from the DIA specifically to support the development of a disability resilience plan in conjunction with the Disability Reference Group and other key stakeholders. This will aim to better support the needs of our disabled community during times of emergency response. The DIA has also funded a Community Connector to have a specifically Pasifika focus for 12 months.

In addition, further funding of $200,00 from the Red Cross has enabled another Community Connector to be retained for 12 months, as well as the additional resourcing of Pasifika and Rural Hubs.

External funding has been crucial to enable the development of the Hubs through physical resources and also Community Connectors. Progress on spending will continue to be reported to the Subcommittee.

The Project Plan for the Disability Resilience Plan will be shared with the Subcommittee at the August meeting.

3.1.3 Ka Ora Ka Ako Healthy School Lunches Programme

A presentation was given from Nourishing Hawke’s Bay which included ways Council can support local, sustainable food systems, possibly by developing a Regional Food Strategy.

Councillor Apatu is to discuss with the Mayor and wider Council what further support and possibly resource can be allocated to this.

3.1.4 Multicultural Advisory Group (Hastings Multicultural Strategy Working Group)

The draft Multicultural Advisory Group Terms of Reference (ToR) was presented to the Subcommittee.

The Subcommittee requested the ToR be reviewed by the Group Manager: Strategy & Development and his advice be sought on appropriate next steps.

Feedback is currently being incorporated and will be discussed at the August Subcommittee meeting.

3.1.5 Youth Development: work experience in secondary schools, rangatahi conference and youth programmes in Advisory Group (Hastings Multicultural Strategy Working Group)

Two memoranda were tabled for consideration. The first was in relation to the use of work experience at Mahi for Youth and was in response to a Councillor query. No further action was deemed necessary. The second was in relation to the planned 2024 Rangatahi Conference. The Subcommittee supported the postponement of the event for this year to allow time for further planning.

A verbal update was provided on youth activities and programmes at the Flaxmere Community Centres. This was requested by Councillors after a reduction of ‘HDC employed youth co-ordination’ resource at the Community Centre. Councillors were comfortable that the programmes put in place, utilising partner organisations, offered good, varied options for rangatahi.

The Subcommittee will be kept abreast of engagement in the programmes and their progress.

3.1.6 Fabulous Flaxmere / Camberley Updates

Councillors Jessup and Heke gave verbal updates on Camberley and Flaxmere respectively.

Camberley updates included the work of the Camberley Community Planning Committee and the Camberley Investment Plan (being developed to support a funding application to ECCT).

Once the draft Investment Plan is received it will be shared with the Subcommittee for feedback.

3.1.7 National Community Wellbeing Committee

A Presentation was given to update the Subcommittee on the scope, and work in progress of the Taituarā National Community Wellbeing Committee as per request from the Mayor.

Since this Subcommittee meeting the National Community Wellbeing Committee received an email from CE Suzanne Boyd advising that due to structural changes at Taituarā the Committee will be put “into abeyance for the next six months” whilst they continue their review. In the meantime members have agreed to continue to connect and share valuable insights and learnings with each other.

4.0 Recommendations - Ngā Tūtohunga

That the Strategy and Recovery Committee receive the report titled Community Wellbeing Subcommittee Chair's report dated 1 August 2024.

Attachments:

There are no attachments for this report.

Te Rā Hui: Meeting date:	Thursday, 1 August 2024
Te Wā: Time:	9.00am
Te Wāhi: Venue:	Council Chamber Ground Floor Civic Administration Building Lyndon Road East Hastings
Te Hoapā: Contact:	Democracy and Governance Services P: 06 871 5000 \| E: democracy@hdc.govt.nz
Te Āpiha Matua: Responsible Officer:	Group Manager: Strategy & Development - Craig Cameron

Mematanga: Membership:	Koromatua Chair: Councillor Wendy Schollum Ngā KaiKaunihera Councillors: Ana Apatu, Marcus Buddo, Alwyn Corban, Malcolm Dixon, Michael Fowler, Damon Harvey, Henry Heke, Kellie Jessup, Eileen Lawson (Deputy Chair), Tania Kerr, Hana Montaperto-Hendry, Simon Nixon, Heather Te Au-Skipworth and Kevin Watkins Mayor Sandra Hazlehurst Hastings District Rural Community Board Appointees: Jonathan Stockley (RCB Chair); Izzy Crawshaw (RCB Deputy Chair) OR Vicki Scoular (Alternate) 2 Heretaunga Takoto Noa Māori Standing Committee Appointees: Ngaio Tiuka and 1 x Vacancy as well as 1 x Vacancy (for an Alternate)
Tokamatua: Quorum:	11 members
Apiha Matua Officers Responsible:	Group Manager: Strategy & Development – Craig Cameron Deputy Chief Executive – Bruce Allan Strategy Manager – Lex Verhoeven Principal Advisor: District Development – Mark Clews Program Manager Growth Infrastructure – Brett Chapman Strategic Project Manager (Portfolio Lead) – Dean Ferguson Manager - Recovery & Special Projects – Gus Charteris
Te Rōpū Manapori me te Kāwanatanga Democracy & Governance Services:	Lynne Cox (Extn 5632)

1.0	Apologies – Ngā Whakapāhatanga An apology from Councillor Jessup has been received. At the close of the agenda no requests for leave of absence had been received.
2.0	Conflict of Interest – He Ngākau Kōnatunatu Members need to be vigilant to stand aside from decision-making when a conflict arises between their role as a Member of the Council and any private or other external interest they might have. This note is provided as a reminder to Members to scan the agenda and assess their own private interests and identify where they may have a pecuniary or other conflict of interest, or where there may be perceptions of conflict of interest. If a Member feels they do have a conflict of interest, they should publicly declare that at the start of the relevant item of business and withdraw from participating in the meeting. If a Member thinks they may have a conflict of interest, they can seek advice from the General Counsel or the Manager: Democracy and Governance (preferably before the meeting). It is noted that while Members can seek advice and discuss these matters, the final decision as to whether a conflict exists rests with the member.
3.0	Confirmation of Minutes – Te Whakamana i Ngā Miniti Minutes of the Strategy and Recovery Committee Meeting held Thursday 2 May 2024. (Previously circulated)
4.0	Council Climate Action Work Programme	9
5.0	Waipātiki Wastewater Treatment Plant - Briefing for the Committee regards Consent and Infrastructure Upgrade	13
6.0	Cyclone Gabrielle Recovery Report Q4 April - July 2024	19
7.0	Sustainable Outcomes Reporting Framework for Cyclone Gabrielle Recovery Roads Infrastructure Works Panel	23
8.0	Local Area Plan Programme Update	37
9.0	Community Wellbeing Subcommittee Chair's report	69
10.0	District Development Subcommittee Chair's Report	73
11.0	Minor Items – Ngā Take Iti
12.0	Urgent Items – Ngā Take Whakahihiri
13.0	Recommendation to Exclude the Public from Items 14 and 15	77
14.0	Commercial Transactions
15.0	Update on Council Planning and Investments to enable Residential and Industrial Growth

Date	Agenda Items
9 May 2023	· Housing Supply Update o General Housing Supply o Flaxmere Housing o Structure Planning · Urban Housing Market Indicators Snapshot / Market · Industrial Land Availability · Foodeast-haumako Progress Update
1 August 2023	· Residential Growth Programme Update for the Long Term Plan · City Centre Strategy – 10 Year Review Update · Report on Orders in Council · Structure Plan Update
5 October 2023	· Transforming the DD Strategy from a what we are doing to what we want achieve and how to get there. Open discussion o What’s in scope o What needs to feed in and when o What’s our horizon o What’s our process o What resources to do we need · Our Strategy for Medium Density Housing a Recap and Progress · FDS Programme Briefing · Rural Resources Scoping Study Briefing
30 May 2024	· Housing market indicators · FDS – Next Steps · Rural Strategy Scoping · Centres Update · General update on activity (residential, industrial, commercial)

Item 7 Sustainable Outcomes Reporting Framework for Cyclone Gabrielle Recovery Roads Infrastructure Works Panel
DRAFT HDC Sustainable Outcomes Reporting Framework_29072024	Attachment 1

Item 8 Local Area Plan Programme Update
Local Area Plans Programme Overview and Supporting Information Document	Attachment 1

Strategy and Recovery Committee – Terms of Reference