Agenda of Regional Council - Thursday, 1 April 2021

Regional Council 1 April 2021

Recommendations in reports are not to be construed as Council policy until adopted by Council.

Agenda

E te Atua nui tonu, ko mātau ēnei e inoi atu nei ki a koe, kia tau mai te māramatanga ki a mātau whakarite mō tēnei rā, arahina hoki mātau, e eke ai te ōranga tonu ki ngā āhuatanga katoa a ngā tangata ki tō mātau rohe whānui tonu. Āmine.

“Almighty God we ask that you give us wisdom in the decisions we make here today and give us guidance in working with our regional communities to promote their social, economic, environmental and cultural well-being. Amen”.

1. Opening Karakia

2. Apologies

3. Public Forum

4. Items not on the Agenda

5. Order of Business

6. Declaration of Conflicts of Interest

7. Public Excluded Business to be Transferred into the Open

8. Minutes

Minutes to be Confirmed

8.1 Regional Council Minutes - 16 February 2021 1

8.2 Extraordinary Extraordinary Regional Council Minutes - 10 March 2021 1

Minutes to be Received

8.3 Regional Transport Committee Minutes - 3 December 2020 1

8.4 SmartGrowth Leadership Group - 21 October 2020 (confirmed) 1

8.5 SmartGrowth Leadership Group - 16 December 2020 (draft) 1

8.6 Civil Defence Emergency Management Group Joint Committee Minutes - 18 December 2020 1

9. Presentations

9.1 Summer Experience Programme 2021

Presented by: Summer Experience Participants will show videos for this item.

10. Reports

10.1 Chairperson's Report 1

Decisions Required

10.2 Approval of Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement 1

Attachment 1 - Draft Proposed Change 5 (Kaituna River) to the RPS 1 April 2021 Version 3.1 1

Supporting Document 1 - Section 32 Report Proposed Change 5 (Kaituna River) Version 4.0 March 2021

10.3 Komiti Maori - Maori Partnerships Lead 1

Attachment 1 - Draft Terms of Reference Komiti Maori 1

10.4 Enhancing youth engagement 1

10.5 Community Participation and Impact 1

10.6 Bay of Plenty Local Authority Shared Services (BOPLASS) Draft Statement of Intent 2021-2024 and Half Year Report 31 December 2020 1

Attachment 1 - BOPLASS Cover Letter 25 February 2021 1

Attachment 2 - BOPLASS Draft SOI 2021-2024 1

Attachment 3 - BOPLASS Half Year Report 31 December 2020 1

10.7 Local Government Funding Agency Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020 1

Attachment 1 - LGFA Cover Letter 21 February 2021 1

Attachment 2 - LGFA Draft Statement of Intent 2021/22 1

Attachment 3 - LGFA Half Year Report 31 December 2020 1

10.8 Treasury Report on LGFA Borrowings Maturing April 2021 1

Attachment 1 - Bancorp Pre-Funding Strategy 1

Attachment 2 - Bancorp Borrowing Strategy 1

10.9 Quayside Holdings Limited Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020 1

Attachment 1 - Quayside Holdings Limited Cover Letter and Response to BOPRC's Statement of Expectation 1 March 2021 - Public Excluded

Attachment 2 - Quayside Draft Statement of Intent 2021/22 1

Attachment 3 - Aqua Curo Draft Statement of Intent 2021/22 1

Attachment 4 - Lakes Commercial Developments Draft Statement of Intent 2021/22 1

Attachment 5 - Tauranga Commecial Developments Draft Statement of Intent 2021/22 1

Attachment 6 - Huakiwi Draft Statement of Intent 2021/22 1

Attachment 7 - Quayside Half Year Report 31 December 2020 1

10.10 Toi Moana Trust Draft Statement of Intent 2021/22 1

Attachment 1 - Toi Moana Trust Draft Statement of Intent 2021/22 1

11. Public Excluded Section

Resolution to exclude the public

Excludes the public from the following parts of the proceedings of this meeting as set out below:

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
10.9	Quayside Holdings Limited Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020 - Attachment 1 - Quayside Holdings Limited Cover Letter and Response to BOPRC's Statement of Expectation 1 March 2021 - Public Excluded	Withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities.	48(1)(a)(i) Section 7 (2)(h).	To remain in public excluded.
11.1	Public Excluded Regional Council Minutes - 16 February 2021	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
11.2	Public Excluded Extraordinary Extraordinary Regional Council Minutes - 10 March 2021	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.

10.9 Quayside Holdings Limited Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020

Attachment 1 - Quayside Holdings Limited Cover Letter and Response to BOPRC's Statement of Expectation 1 March 2021 - Public Excluded

Minutes to be Confirmed

11.1 Public Excluded Regional Council Minutes - 16 February 2021

11.2 Public Excluded Extraordinary Extraordinary Regional Council Minutes - 10 March 2021

12. Public Excluded Business to be Transferred into the Open

13. Readmit the Public

14. Consideration of Items not on the Agenda

15. Closing Karakia

Regional Council Minutes

16 February 2021

Regional Council

Open Minutes

Commencing: Tuesday 16 February 2021, 11.30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Norm Bruning

Cr Bill Clark

Cr Stuart Crosby

Cr Toi Kai Rākau Iti

Cr David Love

Cr Matemoana McDonald

Cr Stacey Rose

Cr Paula Thompson

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Fiona McTavish – Chief Executive, Namouta Poutasi – General Manager Strategy & Science, Chris Ingle – General Manager Integrated Catchments; Mat Taylor – General Manager Corporate, Karen Aspey - Director, People & Leadership, Debbie Hyland – Finance and Transport Operations Manager, Mark Le Comte – Principal Advisor Finance and Transport Operations, Zhivan Alach - Organisational Performance Manager, Tone Nerdrum Smith – Committee Advisor

11.30am: Chairman Leeder opened the meeting and advised that it would be adjourned and reconvened following the Strategy & Policy Committee meeting, currently in progress.

Resolved

That the Regional Council:

1 Adjourn the meeting and that it be reconvened at the conclusion of the Strategy & Policy Committee meeting.

Leeder/Love

CARRIED

12.05pm – The meeting reconvened.

1. Chairman's Introduction

Chairman Leeder reminded those present that the public section of this meeting was being recorded and would be made available on the Bay of Plenty Regional Council website following the meeting and archived for a period of three years.

2. Opening Karakia

A karakia was provided by Cr White.

3. Apologies

Nil.

4. Public Forum

4.1 Presentation: Summer Experience Programme 2021

Noted that this item was deferred until the next meeting of Council.

5. Order of Business

There were no changes to the order of business, however it was noted that agenda item 9.6: Adoption of Consultation Document and Supporting Documentation for Long Term Plan 2021-2031 would be adjourned until Thursday 18 February to allow for the Audit Repot to arrive.

6. Declaration of Conflicts of Interest

Nil

7. Minutes

Minutes to be Confirmed

7.1

Regional Council Minutes - 17 December 2020

Resolved

That the Regional Council:

Confirms the Regional Council Minutes - 17 December 2020 as a true and correct record, subject to the following amendments:

Minute Item 7.2: Insert correct report title “Funding Regional Safety and Rescue Services through Long Term Plan 2021-2031”.

Leeder/Rose

CARRIED

8. Reports

8.1

Chairperson's Report

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/Love

CARRIED

Decisions Required

8.2

Additions to Engineering Services Panel Contract - Part 2

Presented by: Chris Ingle – General Manager Integrated Catchments

Resolved

That the Regional Council:

1 Receives the report, Additions to Engineering Services Panel Contract - Part 2.

2 Approves the additions to the Engineering Services Panel Contract as recommended under section 2.2 below and delegates to the Chief Executive the authority to execute new contracts for these Suppliers.

Bruning/Rose

CARRIED

8.3

Rivers and Drainage, and Lakes 2020/21 Capital Works - Procurement Plan Change

Presented by: Chris Ingle – General Manager Integrated Catchments

Resolved

That the Regional Council:

1 Receives the report, Rivers and Drainage, and Lakes 2020/21 Capital Works - Procurement Plan Change.

2 Approves the proposed change to defer the Rangitāiki River Stopbank Upgrade ($930,000) until 2021/22 and bring forward the Thornton Floodwall to 2020/21 ($1,000,000).

von Dadelszen/Bruning

CARRIED

8.4

Toi Moana Climate Change Statement

Presentation: Toi Moana Climate Change Statement: Objective ID A3738890

Presented by: Chris Ingle – General Manager Integrated Catchments and Laverne Mason –Integrated Catchments Programme Manager

Key Points:

· Noted that there had been some changes since the initial statement, however these changes did not trigger a requirement for renewed Audit NZ approval

· The final Climate Change Statement would be formulated as part of the LTP deliberations, following the public consultation process, for adoption with the finalised LTP.

Items for Staff Follow Up:

· Add two new bullet points under “We will”:

o Act proactively and with urgency to address climate change risks

o Raise awareness of the expected impacts of climate change expected impacts and etc. based on a science approach

· Under “Transformational shift required for the Bay of Plenty, bullet point 6, add: ‘..and preserving and/or creating wetlands’.

· Resolution 3 to also be clearly reflected in the Statement.

Resolved

That the Regional Council:

1 Receives the report, Toi Moana Climate Change Statement.

2 Considers the draft Climate Change Statement in Appendix 1 for inclusion in the Consultation Document for the Long Term Plan 2021-2031.

3 Notes that the climate change statement will inform and guide how we can work in partnership with Māori and support conversations around the regional climate change.

Rose/Nees

CARRIED

8.5

Adoption of Statement of Proposal for Fees and Charges Policy

Presented by: Mark Le Comte – Principal Advisor Finance and Transport Operations

Key Points - Members:

· Queried if the air quality test frequency aligned with the Council’s desire to be pro-active and vigilant in this space.

Key Points - Staff:

· Suggested changes as provided to staff by Councillors would be included in the draft Statement of Proposal prior to public consultation, e.g. the Port of Tauranga charges

· The testing frequency regime related to risk of non-compliance and had been developed in co-operation with monitoring and compliance staff

Any non-compliance detected could result in increased the frequency of monitoring to ensure it did not reoccur.

Resolved

That the Regional Council:

1 Receives the report, Adoption of Statement of Proposal for Fees and Charges Policy.

2 Adopts the ‘Statement of Proposal: Fees and Charges’ for public consultation and the ‘Proposed Fees and Charges Policy’ using the Special Consultative Procedure under the Local Government Act, to be consulted on concurrently with the Long Term Plan 2021-2031.

3 Notes the consent holders and the Port of Tauranga will receive notifications that the consultation is taking place.

4 Delegates authority to the Chief Executive to make minor editorial and formatting amendments to the Statement of Proposal and supporting information document if required.

Leeder/Thurston

CARRIED

8.6

Adoption of Consultation Document and Supporting Documentation for Long Term Plan 2021-2031

This item was adjourned until the Thursday 18 February 2021 8.00am Zoom continued Council meeting when Audit NZ would be presenting its Audit Opinion.

Noted that minor changes could be made to the Consultation Document pre-consultation.

8.7

Arotake Tuarua 2020/21 - Performance Monitoring Report Quarter Two (October to December 2020

Presented by: Debbie Hyland – Finance and Transport Operations Manager and Zhivan Alach - Organisational Performance Manager

Key Points:

· Provided an outline of the report and noted that the target for reduction in non-compliant solid fuel burners in the Rotorua Airshed would not be met, as there were few non-compliant burners left in the airshed, and the owners of those were unlikely to take up the various funding opportunities

· The significant increase in Tauranga schools bus patronage was correlated with the fare-free trial

· Rivers and Drainage Assets were revalued as of 1 July 2020 and this was reflected in the updated draft LTP Infrastructure and Financial Strategies.

· The $92m public transport funding (contained in the briefing papers for TCC’s Commissioners) as being attributed to Regional Council over the next ten years was being queried by BOPRC staff as the figures for PT investment are materially higher.

Key Points - Members:

· Acknowledged that the changing environment in 2020 due to Covid had caused significant challenges in financial predictions and Council should be conservative in its approach, and be cognisant and prepared for sudden changes.

Key Points - Staff:

· The presentation of the Financial Strategy within the draft LTP was aimed at making it as clear and accessible as possible to the community

· All Covid-19 testing was reported in the Health & Safety component of the report.

Resolved

That the Regional Council:

1 Receives the report, Arotake Tuarua 2020/21 - Performance Monitoring Report Quarter Two (October to December 2020

2 Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachments:

(a) Arotake Q2 - Appendix 2 Bancorp - Confidential Treasury Report December 2020 under Section 48(1)(a)(i) Section 7 (2)(h) as withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities and that this attachment remain in Public Excluded.

(b) Arotake Q2 - Appendix 3 Toi Moana Trust - Quarterly Report - December 2020 under Section 48(1)(a)(i) Section 7 (2)(h) as withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities and that this attachment be released to the public on the Chief Executive’s approval.

Love/Crosby

CARRIED

1.00pm – the meeting adjourned.

1.30pm – the meeting reconvened.

9. Public Excluded Section

Resolved

Resolution to exclude the public

1 Excludes the public from the following parts of the proceedings of this meeting as set out below:

Item No.	Subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Grounds under Section 48(1) for the passing of this resolution	When the item can be released into the public
9.1	Public Excluded Regional Council Minutes - 17 December 2020	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
9.2	Groundwater monitoring site installation - new contract and capital funding arrangements	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
9.3	Ōpōtiki Harbour Development Funding Agreement	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
9.4	Arotake Tuarua 2020/21 - Performance Monitoring Report Quarter Two (October to December 2020) - Confidential Attachments only	Withholding the information is necessary to protect information where the making available of the information would be likely to unreasonably prejudice the commercial position of the person who supplied or who is the subject of the information.	48(1)(a)(i) Section 7 (2)(b)(ii).	To remain in public excluded.

Leeder/Rose

CARRIED

10. Closing Karakia

A karakia was provided by Cr Te Taru White.

2.01pm – the meeting adjourned and would be reconvened on Thursday 18 February at 8.00am via Zoom.

8.00am – the meeting reconvened on Thursday 18 February 2021 via Zoom

Regional Council

Open Minutes

Commencing: Tuesday 16 February 2021, 11.30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga and via Zoom

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Andrew von Dadelszen

Cr Matemoana McDonald

Cr David Love

Cr Norm Bruning

Cr Bill Clark

Cr Stuart Crosby

Cr Kevin Winters – via Zoom

Cr Lyall Thurston

Cr Toi Kai Rākau Iti – via Zoom

Cr Stacey Rose

Cr Paula Thompson

In Attendance: Fiona McTavish – Chief Executive, Namouta Poutasi – General Manager Strategy & Science, Chris Ingle – General Manager Integrated Catchments; Karen Aspey - Director, People & Leadership, Zhivan Alach - Organisational Performance Manager, Tone Nerdrum Smith – Committee Advisor

Audit NZ: Leon Pieterse, Matt Sarjeant and Anton Labuschagne

11. Chairman's Introduction

12. Apologies

Noted the apology tendered by Cr Te Taru White.

13. Reports - Continued

13.1	Adoption of Draft Consultation Document and Supporting Documentation for Long Term Plan 2021-2031 Presentation: Draft LTP - Post Agenda Changes: Objective ID A3738580 Tabled Document 1 - Draft LTP Consultation Document - Updated Version: Objective ID A3738725
	Noted that Leon Pieterse, Matt Sarjeant and Anton Labuschagne from Audit NZ were in attendance for this item
	Fiona McTavish – Chief Executive provided an outline of the LTP adoption process. Zhivan Alach - Organisational Performance Manager provided an outline of the development of the draft Consultation Document/Long Term Plan (LTP) and noted that an updated version of the Draft Consultation Document had been circulated to Elected Members (tabled document 1). Key Points: · Outlined the changes to the Draft LTP as follows: o Revised infographic arrows to match preferred option o Highlighted preferred option o Restored sentence on free fares for mobility needs o Revised wording to clarify existing work on climate change and public transport o Revised flood protection and control value o Revised other asset numbers to be inflated o Various typos, grammar, clarifying changes per Councillor direction o Changes to Climate Change statement per Councillor direction o Cost of Freshwater Reform added. · There had been no material changes, i.e. no fundamental changes to the underlying assumptions · Budget changes as proposed when the meeting commenced on Tuesday 16 February 2021, would be considered for inclusion in the final LTP as part of the deliberations. Key Points – Leon Pieterse - Audit NZ · Provided an outline of the Audit Opinion provided and the acceptance of the underlying assumptions · Noted that Audit NZ had provided an unqualified opinion · Recognised the significant effort of staff and Elected Members in preparing the Draft LTP.
	Resolved That the Regional Council: 1 Receives the report, Adoption of Consultation Document and Supporting Documentation for Long Term Plan 2021-2031. 2 Notes that the draft Consultation Document and supporting documents for the draft Long Term Plan 2021-2031 presented at the 17 December 2020 meeting have been subjected to an audit process, subsequent changes, and to minor editorial changes; 3 Approves the Consultation Document (Draft for Consultation) in preparation for the signing of the Audit Opinion. Nees/Thurston CARRIED Leon Pieterse – Audit NZ presented the unqualified Audit Opinion on the Draft Consultation Document and the Draft Long Term Plan 2021-2031. Following the signing of the Audit Opinion by the Audit Director: 4 Receives the Audit Report and signed opinion by the auditor pursuant to s93C(4) of the Local Government Act (2002) to be included in the Consultation Document 5 Adopts the updated supporting documents noted at Recommendation 2 to be made publicly available during the Special Consultative Procedure pursuant to section 93C(3)(c) of the Local Government Act (2002). (a) Noting the changes to the supporting documents approved by Council for audit on 17 December 2020 specified in this paper. (b) Noting thus that the documents adopted toady comprise those approved by Council for audit on 17 December 2020 with the changes specified in this paper. 6 Adopts the Consultation Document (Draft for Consultation) (including Audit Opinion) for the Long Term Plan 2021-2031 Special Consultative Procedure from 22 February to 22 March 2021 pursuant to section 93 of the Local Government Act (2002). (a) Acknowledging that the proposed budget has unbalanced budgets for years one and two, but that the overall financial position of the Council remains sustainable; and (b) Resolves that it is financially prudent to set that unbalanced budget; 7 Delegates authority to the Chief Executive to make any final editorial or post-audit amendments to the Consultation Document and draft supporting documents, if required, prior to commencement of the consultation period on 22 February 2021. 8 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance. Rose/Winters CARRIED

8.15am – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council

Regional Transport Committee Minutes

3 December 2020

Regional Transport Committee

Open Minutes

Commencing: Thursday 3 December 2020, 12:00 pm

Venue: Bay of Plenty Regional Council Chambers, Ground Floor, Regional House, 1 Elizabeth Street, Tauranga

Chairperson: Cr Lyall Thurston - Bay of Plenty Regional Council

Deputy Chairperson: Cr Jane Nees - Bay of Plenty Regional Council

Members: Cr Norm Bruning – Alternate, Bay of Plenty Regional Council, Deputy Mayor Faylene Tunui – Alternate, Kawerau District Council, Mayor Lyn Riesterer - Ōpōtiki District Council (via Zoom), Deputy Mayor David Donaldson – Alternate, Rotorua Lakes Council, Deputy Mayor Tina Salisbury – Tauranga City Council, Mayor Garry Webber - Western Bay of Plenty District Council, Deputy Mayor Andrew Iles – Alternate, Whakatāne District Council, Cole O’Keefe - Waka Kotahi NZ Transport Agency, Cr Larry Baldock – Alternate, Tauranga City Council

Councillors: Bay of Plenty Regional Council – Cr Paula Thompson, Cr Andrew von Dadelszen, Cr Stacey Rose

Tauranga City Council: Cr Kelvin Clout, Cr John Robson

Whakatāne District Council: Cr Gavin Dennis

In Attendance: Glen Crowther – Environmental Sustainability Advisor, Dan Kneebone – Port of Tauranga Advisor

Bay of Plenty Regional Council: Fiona McTavish – Chief Executive, Namouta Poutasi – General Manager, Strategy and Science, Mat Taylor – General Manager, Corporate, James Llewellyn – Transport and Urban Planning Manager, Rachel Pinn – Contractor, Andrew Williams – Transport Planner, Amanda Namana – Committee Advisor

Apologies: Inspector Brent Crowe – NZ Police, Mayor Malcolm Campbell – Kawerau District Council, Mayor Steve Chadwick – Rotorua Lakes Council, Steve Mutton – Waka Kotahi NZTA

1. Apologies

Resolved

That the Regional Transport Committee:

1 Accepts the apologies from Inspector Brent Crowe – NZ Police, Mayor Malcolm Campbell – Kawerau District Council, Mayor Steve Chadwick – Rotorua Lakes Council and Steve Mutton – Waka Kotahi NZTA tendered at the meeting.

Thurston/Webber

CARRIED

2. Declaration of Conflicts of Interest

None declared.

3. Minutes

Minutes to be Confirmed

3.1

Regional Transport Committee Minutes - 7 August 2020

Resolved

That the Regional Transport Committee:

1 Confirms the Regional Transport Committee Minutes - 7 August 2020 as a true and correct record, subject to the following amendments:

· Remove Deputy Mayor Dave Donaldson from attendance as he was not present

Webber/Nees

CARRIED

4. Reports

4.1

Chairperson's Report

Resolved

That the Regional Transport Committee:

1 Receives the report, Chairperson's Report.

Thurston/Nees

CARRIED

4.2

Waka Kotahi NZ Transport Agency Update

Presentation - Waka Kotahi Update: Objective ID A3685903

Cole O’Keefe – Lead Strategic Planner, Waka Kotahi NZTA presented this item.

Key Points:

· A separate session would be held with members via Zoom to cover a number of projects in the region, including the Takitimu North Link

· The significant impacts of Covid-19 was expected to last for several years, including travel patterns and the drop in revenue for Waka Kotahi

· Outlined the proposed changes at Pilot Bay and Marine Parade at Mount Maunganui.

Key Points - Members:

· Noted the late timing of the Waka Kotahi prioritisation framework and the need for the Regional Land Transport Plan (RLTP) to align with this

· Highlighted concerns over the road condition of State Highway 29 over the Kaimai Ranges and State Highway 36 to Rotorua

· Design work and the purchase of land would absorb a large proportion of the $933M allocated to the Takitimu North Link project

· Requested speed management outside of schools in Rotorua to be progressed at pace.

In Response to Questions:

· Was unable to comment on specific work around the maintenance programme or delays in relation to Takitimu but would respond to the committee on these matters in detail at the Waka Kotahi Zoom session to be held in December 2020

· Arataki was in place as a ten year outlook and this was a key document in assisting with forming RLTP’s, the next stage of this document would be extended to a 30 year outlook.

Items for Staff Follow Up:

· An update to come to the next meeting regarding implications of proposed legislative changes from the Strategic Planning Act and potential impacts on the RLTP process going forward.

Resolved

That the Regional Transport Committee:

1 Receives the report, Waka Kotahi NZ Transport Agency Update.

Thurston/Nees

CARRIED

Decisions Required

4.3

Appointment of an External Advisor – NZ Automobile Association

Key Points - Members:

· It was important to consider the structure, role and purpose of the Committee in appointing external advisors.

Items for Staff Follow Up:

· The Committee requested a report of options for role and function of external advisors including tangata whenua.

Resolved

That the Regional Transport Committee:

1 Receives the report, Appointment of an External Advisor;

2 Appoints a member of the New Zealand Automobile Association as an external advisor to the Regional Transport Committee

Thurston/Riesterer

CARRIED

Mayor Webber opposed the motion.

4.4

Regional Land Transport Plan Variation - Rotorua Public Transport Strategic Review

Transport and Urban Planning Manager James Llewellyn responded to questions.

In Response to Questions:

· The request was to fund undertaking an indicative business case in the current RLTP - the upcoming draft RLTP would decide whether any further business case work was required.

Resolved

That the Regional Transport Committee:

1 Receives the report, Regional Land Transport Plan Variation - Rotorua Public Transport Strategic Review;

2 Approves the proposed variation – Rotorua Public Transport Strategic Review – to be included in the Bay of Plenty Regional Land Transport Plan 2018;

3 Determines that the proposed variation is not significant for the purposes of public consultation.

Webber/Nees

CARRIED

Information Only

4.5

Regional Land Transport Plan Annual Report Card 2019/20

Presentation - RLTP Annual Report Card 2019/20: Objective ID A3698196

Transport and Urban Planning Manager James Llewellyn and Transport Planner Andrew Williams presented this item.

Key Points:

· State Highway traffic volumes continued to increase across the region

· There had been approximately 5% growth in traffic volumes per annum on all major corridors

· Almost 442,000 containers were transported within the region

· Road fatalities had increased by six from the previous year

· Nitrogen dioxide levels were a marker for exposure to traffic related emissions.

In Response to Questions:

· There had been an increase in electric vehicles, however with the overall increase in traffic it was difficult to determine the contribution this made to the lowered emissions recorded

· The Rotorua site on the nitrogen dioxide slide was located at the corner of Old Taupō Road and Pukuatua Street

· Clarified that the transport emissions stated on Page 43 of the agenda referred to nitrogen dioxide only.

Resolved

That the Regional Transport Committee:

1 Receives the report, Regional Land Transport Plan Annual Report Card 2019/20.

Thurston/Nees

CARRIED

5. Round the Table – verbal update from members and advisors

Mayor Riesterer – Ōpōtiki District Council

· Ōpōtiki District Council had completed the road to be used for trucks out to the site for the Ōpōtiki Harbour development project

· Waka Kotahi report on page 26 of the agenda correction: a future wharf was not being developed, rather harbour walls or groynes would be developed

· Expressed safety concerns over the lack of action in reducing speeds on Ōpōtiki state highways as requested.

Deputy Mayor Andrew Iles – Whakatāne District Council

· Wainui Road safety improvements were well underway

· Bay of Plenty Regional Council had offered support in principle to work together with Whakatāne District Council on cycle trail opportunities

· Whakatāne District Council were also interested in working together on the upcoming review of public transport services to the Eastern Bay of Plenty due to commence in 2021

· Met with Waka Kotahi planners to discuss the upcoming Eastern Bay of Plenty Mode Shift Plan due to commence in 2021

· Work would be commencing with Waka Kotahi on the Eastern Bay of Plenty speed management review within the next six months

· Whakatāne access project was nearing completion and would inform improvements for access into and through Whakatāne

· Requested the Waimana Gorge resilience report be reinstated in the review of Waka Kotahi projects for the Eastern Bay of Plenty.

Deputy Mayor Dave Donaldson – Rotorua Lakes Council

· Noted that drivers had not been adhering to the 30km/hr speed limit imposed at the State Highway 30 Te Ngae Road upgrade which was a concern for the safety of those working on the road.

Deputy Mayor Faylene Tunui – Kawerau District Council

· State Highway 30 speed reviews were a key issue. Provincial Growth Fund industrial development investment was an opportunity to join these programmes of work together and get them completed

· Disappointed at the lack of KiwiRail involvement in the Committee.

Glen Crowther – Environmental Sustainability Advisor

· Commended the Climate Change Action Plan released by Whakatāne District Council and noted its relevance to all Bay of Plenty councils.

Dan Kneebone – Port of Tauranga Advisor

· The Port was progressing plans for the southern berth extension at Sulphur Point

· Welcomed the prioritisation of Totara Street and Hewletts Road under the Transport System Plan (TSP).

1:33 pm – the meeting closed.

Confirmed 2 March 2021

Cr Lyall Thurston

Chairperson, Regional Transport Committee



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Authoriser:	Doug Leeder

Chairperson's Report

Executive Summary

Since the preparation of the previous Chairperson’s Report (for the 16 February 2021 Council meeting) I have attended and participated in a number of meetings and engagements as Chairperson on behalf of the Bay of Plenty Regional Council (BOPRC).

This report sets out those meetings and engagements, outside of Council, Committee and Sub-Committee meetings, and highlights key matters of interest that I wish to bring to Councillors’ attention.

Recommendations

That the Regional Council:

1 Receives the report, Chairperson's Report.

1. Purpose

The purpose of this report is to update Council on meetings and engagements, outside of Council, Committee and Sub-Committee meetings, I have attended and participated in as Chairperson. Also to highlight key matters that will be of interest to Councillors.

The following section summarises these meetings and engagements. I will provide further detail at the meeting in response to any questions you may have.

2. Meetings and Engagements

Date	Meeting / Engagement	Comment
5 February	Beef + Lamb NZ Essential Freshwater Update Bay of Plenty Meeting - Manawahe	Discussed the Government’s Essential Freshwater Policy.
10 February	Special Interest Group Convenor’s Plenary 2021 and Dinner – Wellington	An annual event, this year’s theme was ‘Strategy to Action’. Sector challenges, opportunities and reflections were discussed and an update on the SIG Network including a progress report since the 2020 SIG Plenary.
11 February	Meeting with Minister Kiritapu Allan – Wellington	Discussed several matters with Minister Allan relating to her Conservation and Emergency Management portfolios, specifically the Jobs for Nature Programme, Marine Pest Management and the Upper North Island Clean Hull Pathway Plan.
12 February	Joint Dairy NZ and Beef + Lamb Board Meeting and Allocation Workshop – Wellington	Presented a regional council perspective on challenges we face with implementing the National Policy Statement for Freshwater Management, and how they could approach implementation.
18 February	Freshwater Implementation Group Meeting – Video Conference	Attended.
22 February	Minginui Nursery visit - Minginui	A native tree nursery, formed with the aim of regenerating 640 hectares of pine plantation to native, as part of Whirinaki Forest Park.
23 February	Jobs for Nature Reference Group – Wellington	Attended.
24 February	Transit Group Tauranga Limited Meeting -Tauranga	Discussed electric vehicles.
26 February	Regional Sector Meeting – Wellington	This is covered in more detail in the following section.
3 March	National Council, Central Government and Local Government Forum – Video Conference	Attended.
10 March	Local Government New Zealand and Taituarā Meeting – Video Conference	Discussed the big proposed reform agenda for this year.
	Meeting with Mayor Steve Chadwick and Stewart Brown Manager, Arts and Culture - Tauranga	Discussed Rotorua Museum.
	Wai-Kokopu Meeting – Tauranga	Discussed the Waihī Estuary Focus Catchment and farm plans, funding for catchment projects, mana whenua, and catchment group challenges.
11 March	Rotorua Lakes Council Meeting - Rotorua	The Bay of Plenty Regional Council Long Term Plan 2021-2031 was presented in the public forum.
11 March	Whakatane District Council Meeting – Whakatāne	The Bay of Plenty Regional Council Long Term Plan 2021-2031 was presented in the public forum.
12 March	Bay of Plenty Mayoral Forum - Opotiki	The meeting was recorded and can be accessed along with the meeting agenda on our website. The forum discussed: the draft briefing for incoming ministers, and Māori wards. There were presentations on the: Waiariki Park Concept (EnviroHub), regional approach to climate change, and social equity issues across the region. The Local Government Commission also spoke about Codes of Conduct for elected members.
15 March	Tauranga City Council Meeting - Tauranga	The Bay of Plenty Regional Council Long Term Plan 2021-2031 was presented.
15 March	Meeting with University of Waikato – Tauranga	Discussed the Coastal Marine Field Station, Freshwater Institute, and the Marine Memorandum Agreement. Councillor Nees was also in attendance.
16 March	Kawerau District Council Meeting – Kawerau	The Bay of Plenty Regional Council Long Term Plan 2021-2031 was presented.
16 March	DairyNZ, Dairy Companies Association of New Zealand, and the Dairy Environment Leaders Event – Wellington	An event celebrating the success of the New Zealand Dairy sector.
18 March	Freshwater Implementation Group Meeting – Wellington	Attended.
19 March	SmartGrowth Independent Chair Interview – Tauranga	Recruitment process.
22 March	Meeting with Lakes Water Quality Society – Whakatāne	Discussed Freshwater Research.
23 March	Jobs for Nature Meeting – Video Conference	Attended.

3. Matters of Potential Interest

3.1 Regional Sector Meeting

The Regional Sector meeting for regional/unitary council Chairs/Mayors and Chief Executives, was held on 26 February in Wellington. A variety of topics were discussed including:

· Three Waters Reform – comprehensive reform with Taumata Arowai, the Water Services Bill (the Bill), and service delivery reform. The Bill is currently with the Health Select Committee, with report back expected on 8 June. If the Bill is passed, Taumata Arowai will administer the regulatory framework as set out in the Bill from the second half of 2021.

· Resource management reform – Minister for the Environment Hon David Parker attended via video conference and provided a briefing on the proposals for the Resource Management reform and timing. The proposed Natural and Built Environment Act (NBA) exposure draft is to be considered by a special select committee during May to September, the NBA and proposed Strategic Planning Act (SPA) are expected to be introduced into Parliament in late 2021 with a standard select committee process considering them in early 2022. The three new Acts (NBA, SPA and Climate Change Adaptation Act) are expected to be in effect by the end of 2022.

Minister Parker spoke about Freshwater implementation and confirmed there is agreement that freshwater allocation needs to be sorted. More information around intense winter grazing is also expected in mid-late March.

· Community resilience (DIA work programme) – last year cabinet considered proposals for flood risk management and requested further work around: identification of baseline data sets for a national flood risk model, a new template for LIMs, a national policy framework for addressing managed retreat, and increased regulatory support for councils to manage natural hazards and effects of climate change.

· The Local Government Commission also attended and spoke about their work programme, and analysis of councils’ Code of Conduct which they plan to report back to the Minister.



Pūrongo Ki: Report To:	Regional Council
Rā Hui: Meeting Date:	1 April 2021
Kaituhi Pūrongo: Report Writer:	Nassah Rolleston-Steed, Principal Advisor, Policy & Planning
Kaiwhakamana Pūrongo: Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Kaupapa: Purpose:	Council approval is sought to publicly notify Proposed Change 5 (Kaituna River) for submissions and commence the formal schedule 1 process under the Resource Management Act 1991.

Approval of Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement

Whakarāpopototanga
Executive Summary

Approval is sought to adopt Proposed Change 5 (Kaituna River) (Proposed Change 5) to the Bay of Plenty Regional Policy Statement (RPS) for public notification for submissions in accordance with Schedule 1 to the Resource Management Act 1991 (RMA).

Council has a statutory requirement to change the RPS under Section 123 of the Tapuika Claims Settlement Act 2014 to recognise and provide for the vision, objectives and desired outcomes of the Kaituna River Document.

Draft Proposed Change 5 was open for informal consultation from Monday 24 August to Friday 16 October 2020 and written comments were received from 12 parties. Most comments received generally support the draft change although concerns are raised on specific provisions.

Staff recommendations made in response to comments received were considered by the Strategy and Policy Committee on the 10 December 2020 and then by Te Maru o Kaituna (TMoK) members on the 5 February 2021. Both the Strategy and Policy Committee and TMoK members requested further changes in response to feedback received. At their 5 February 2021 meeting TMoK requested changes to Objectives 40 and 44 and Policies KR 1B and KR 5B and explanatory text for Policy KR 8B.

Those changes were endorsed by the Strategy and Policy Committee on the 23 March 2021. At that workshop staff were directed to seek Council approval to commence the Schedule 1 submissions process.

Should Council adopt Proposed Change 5 it is expected to be notified for submissions in May 2021. Public notification of Proposed Change 5 (Kaituna River) will conclude the research, development and informal consultation phase and commence the formal submissions process under Schedule 1 to the RMA.

Although this change is promulgated by the Tapuka Claims Settlement Act 2014 its contents primarily relate to freshwater and must therefore use the Freshwater Planning Process (FPP). The Chief Freshwater Commissioner has been given advance notice of Proposed Change 5. Staff will prepare a report to the next Te Maru o Kaituna meeting seeking tangata whenua nominations to the Freshwater Hearing Panel.

The Section 32 evaluation for the change is included as an attachment to this report. Council is required to have particular regard to the Section 32 evaluation report when deciding whether to proceed to publicly notify the change.

Ngā tūtohutanga
Recommendations

That the Regional Council:

1 Receives the report, Approval of Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement.

2 Confirms it is satisfied the requirements of Section 32 of the Resource Management Act 1991 have been met and adopts the Section 32 Report for Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement.

3 Confirms it is satisfied the requirements of the Resource Management Act 1991, in particular sections 60, 61 and 62 and Schedule 1, relating to the preparation of a change to the Bay of Plenty Regional Policy Statement up to public notification stage, have been met.

4 Approves Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement pursuant to Clause 5 of Schedule 1 to the Resource Management Act 1991, and makes the Section 32 Report publicly available at the time of that public notification.

5 Approves the public notification of the Proposed Bay of Plenty Regional Policy Statement pursuant to the requirements of Clauses 5 and 7 of Schedule 1 to the Resource Management Act 1991.

6 Delegates authority to the Group Manager Strategy and Science to make any minor amendments, including grammatical and formatting, to Proposed Change 5 (Kaituna River) to the Bay of Plenty Regional Policy Statement and the Section 32 Evaluation Report prior to public notification.

7 Notes Proposed Change 5 will be subject to the Freshwater Planning Process. Notes the Freshwater Hearings Panel will normally be made up of two freshwater commissioners, two council nominees and one tangata whenua nominee. Tangata whenua nominations will be sought at the next Te Maru o Kaituna meeting.

8 Confirms that the significance of the decision has been assessed as LOW, and under Section 79 of the Local Government Act 2002 (LGA) confirms that in light of the level of significance of the decision it does not require: (a) Further identification and assessment of different options under section 77 LGA; (b) Further investigation or consideration of community views under section 78 LGA; (c) Any further written record of the manner in which section 77 and section 78 matters have been addressed.

1. He Whakamārama
Background

At the 11 August 2020 Strategy and Policy Committee meeting approval was given to make Draft Proposed Change 5 (Kaituna River) to the Regional Policy Statement (Proposed Change 5) available for broader community, iwi/hapū and stakeholder consultation. Draft Change 5 was open for informal consultation from Monday 24 August to Friday 16 October and written comments were received from 12 parties.

Staff recommendations made in response to comments received were considered by the Strategy and Policy Committee on the 10 December 2020 and then by Te Maru o Kaituna members on the 5 February 2021. Both the Strategy and Policy Committee and Te Maru o Kaituna members requested further changes in response to feedback received. At their most recent 23 March 2021 workshop the Strategy and Policy Committee members endorsed:

1. Final amendments sought by Te Maru o Kaituna members; and

2. Staff seeking Council approval to commence the Schedule 1 process.

Proposed Change 5 seeks to fulfil Regional Council’s responsibilities under the Tapuika Claims Settlement Act 2014 which requires the RPS recognise and provide for the vision, objectives and desired outcomes of ‘He Taonga Tuku Iho – a treasure handed down’ (the Kaituna River Document). Section 123(4) of the Tapuika Act contains two conditions to this obligation being that:

1. They apply only to the extent that the contents relate to the resource management issues of the region; and

2. Recognising and providing for these is the most appropriate way to achieve the purpose of the RMA in relation to the Kaituna River.

Proposed Change 5 introduces a new Kaituna River section into the Treaty Co-Governance section 2.12 of the RPS. PC5 includes:

· six significant resource management issues for the Kaituna River

· seven Kaituna River objectives

· nine Kaituna River policies

· six Kaituna River methods of implementation; and

· five existing Rangitāiki River methods of implementation expanded to also apply to the Kaituna River.

Proposed Change 5 was first reported to Te Maru o Kaituna River Authority (TMoK) on 19 October 2018 and then the Regional Direction and Delivery Committee on the 30 October 2018. Although the project was given the go ahead it was then placed on hold as TMoK sought time to develop the Kaituna River Action Plan.

During late 2019, and in anticipation of TMoK approving the Kaituna River Action Plan in early 2020, staff commenced internal consultation.
The first version of Draft Proposed Change 5 a communication and engagement plan and project plan were developed and approved by senior management.

Draft Proposed Change 5 was first presented to the 18 February 2020 Strategy and Policy Committee meeting. At that meeting the Strategy and Policy Committee resolved to schedule a workshop which eventually occurred via zoom on the 5 May 2020. Councillors’ feedback resulted in some changes to the draft policy framework.

The first time TMoK members formally considered Draft Proposed Change 5 provisions was at their 29 May 2020 hui. At that hui TMoK resolved to appoint David Marshall to provide independent advice which was subsequently reported to a TMoK workshop on Friday 26 June 2020. Some amendments were requested to the then draft version and these were considered by the Strategy and Policy Committee on the 11 August 2020.

The Strategy and Policy Committee, at their 11 August meeting, considered feedback from, and endorsed some changes in response to, TMoK members and approved commencing broader community, iwi/hapū and stakeholder consultation.

From Monday 18 August to Friday 16 October 2020 Draft PC5 was open for comment. Notice was sent to all iwi and hapu contacts for the Kaituna River catchment and to persons/organisations who made comment on the Kaituna River document inviting their comment on Draft PC5.

Key steps involved in developing Draft Proposed Change 5 since February 2020 are summarised as follows:

2. Purpose

To seek approval for the formal notification of Proposed Change 5 for public submissions in accordance with Schedule 1 of the Resource Management Act 1991.

3. NPS Freshwater Management

The National Policy Statement for Freshwater Management 2020 (NPSFM) came into effect on 3 September 2020 along with other freshwater regulations. The implications of the NPSFM have been considered by the Strategy and Policy Committee meetings and workshops held on the 3 November 2020, 10 November 2020 and 17 December 2020. The decision is to progress one RPS and Regional Natural Resources Plan (RNRP) change to give effect to the NPSFM in July 2024.

The RPS NPSFM Change scope includes a full review of the operative Water Quality and Land Use and Water Quantity chapters plus any consequential amendments to other RPS chapters.

Elements of the Proposed Change 5 policy framework have been reframed using terminology aligned to the NPSFM 2020 while continuing to meet the legislative requirements of the Tapuika Claims Settlement Act 2014.

As previously reported, given Draft Proposed Change 5 ‘relates to freshwater’ the hearing process will be subject to the new Freshwater Planning Process (FPP). The public notification and further submission process follows the standard RMA Schedule 1 procedure. The Chief Freshwater Commissioner has been given advance notice of Proposed Change 5.

The Freshwater Hearings Panel will normally be made up of two freshwater commissioners, two council nominees and one tangata whenua nominee. Staff will prepare a report to the next Te Maru o Kaituna meeting seeking tangata whenua nominations to the Freshwater Hearing Panel. A similar report will also be presented to the Strategy and Policy Committee seeking direction on the two Council Hearing Panel nominees. Further detail about the FPP hearing process is available here.

4. Relevant Statutory Provisions

Clause 21(4) of Schedule 1 to the Resource Management Act 1991 states that, for a change to a policy statement, the procedure in Part 1 of Schedule 1 applies. Clause 5(1) in Part 1 requires the Council to prepare a Section 32 evaluation report and to have particular regard to that report when deciding whether to proceed. If the Council decides to proceed, it must publicly notify the change.

5. Section 32 Evaluation Report

Proposed Change 5 has been assessed in accordance with section 32 which requires an evaluation of options to the change and their costs and benefits. The section 32 evaluation sets out the background to preparing Proposed Change 5.

It is this report that Council must have particular regard to when deciding whether to proceed with the change. Council is required by Clause 5 of Schedule 1 to the RMA to approve the Section 32 evaluation and make the report publicly available when Proposed Change 5 is publicly notified. The section 32 evaluation report is included as Attachment 2.

Clause 21(4) of Schedule 1 to the RMA states that, for a change to a policy statement, the procedure in Part 1 of Schedule 1 applies. Clause 5(1) in Part 1 requires Council to prepare a section 32 evaluation report and to have particular regard to that report when deciding whether to proceed. If the Council decides to proceed, it must publicly notify the change.

6. Ngā Whakaarohanga
Considerations

6.1 Ngā Mōrea me Ngā Whakangāwaritanga
Risks and Mitigations

There are no significant risks associated with Proposed Change 5. Regional Council must progress the change to meet its obligations under the Tapuika Claims Settlement Act 2014. There is an expectation Council will act in accordance with the Treaty of Waitangi principles of ‘good faith’ and ‘partnership’ by continuing to progress Proposed Change 5 without delay. Legal due diligence has been undertaken to ensure the contents are legally sound and defensible. Some amendments have been made to policy content in response to comments received and feedback from Te Maru o Kaituna members and the Strategy and Policy Committee. Other changes have been made to better align with the NPSFM intent. Proposed Change 5 is tracking behind schedule. Council’s Long-Term Plan committed funding to progress this change in the 2017/18 and 2018/19 financial years. The project timeframes approved on 30 October 2018 foreshadowed the schedule 1 submission process commencing in October 2019. Te Maru o Kaituna requested time to develop Kaituna He Taonga Tuku Iho (Kaituna River Document) which came into effect on 1 August 2018 and then Te Tini a Tuna (Kaituna River Action Plan) which was approved in February 2020. Te Maru o Kaituna prioritised the action plan before progressing development of Proposed Change 5.

Staff acknowledge that while the Proposed Change 5 purpose is to implement the Tapuika Claims Settlement Act 2014 Council is simultaneously implementing the Essential Freshwater Policy Programme (EFPP) to give effect to the NPSFM 2020. While care has been taken to ensure Proposed Change 5 aligns with and gives effect to the NPSFM the EFPP team will be engaging on visions, outcomes and values whilst Proposed Change 5 is proceeding through the Schedule 1 process. It is possible Council’s decisions on Proposed Change 5 will be notified before the RPS change to give effect to the NPSFM is notified in July 2024 and care will need to be taken to ensure the objectives are aligned or alternatively these may need to be progressed via the later process which carries with it a potential level of duplication of effort and resources and confusion for the public, iwi/hapū and stakeholders.

6.2 Huringa Āhuarangi
Climate Change

Proposed Change 5 seeks to recognise and provide for the vision, objectives and desired outcomes of Kaituna, he taonga tuku iho. Its contents and scope are constrained by the Kaituna River Document which identifies the ‘pressure on the Kaituna River due to land use intensification, urban growth and climate change’ as a key issue to respond to. Regardless, the existing RPS provisions, in addition to those in Proposed Change 5, will continue to apply to the Kaituna River Catchment. To that end, RPS Policy NH 11B ‘Providing for climate change’ and Policy IR 2B ‘Having regard to the likely effects of climate change’ will continue to apply to the Kaituna River and its tributaries.

6.3 Ngā Pānga ki te Māori
Implications for Māori

Proposed Change 5 is the second RPS treaty co-governance change. It has significant implications for Tapuika iwi in particular as it gives effect to their treaty settlement legislation and strategic cultural aspirations. It also has cultural significance to other Te Maru o Kaituna iwi members namely Ngāti Pikiao, Ngāti Whakaue, Waitaha and Ngāti Rangiwewehi.

Kaituna is considered a tupuna and is revered as a living entity. Statutory acknowledgements exist along the Kaituna River and its tributaries that recognises the mana of and particularly the cultural, spiritual, historical and traditional associations Waitaha, Tapuika and Ngāti Rangiwewehi have in relation to these specified areas. There are also numerous sites of significance to Māori within and adjacent the Kaituna River and its tributaries many of which are described in rich detail in iwi and hapū resource management plans and the aforementioned statutory acknowledgements.

Proposed Change 5 is intended to enshrine the vision, objectives and desired outcomes of the Kaituna River Document within the RPS. Iwi and hapū have high aspirations in terms of the practical effect of Proposed Change 5. District and regional plans will need to give effect to, and resource consents decision making processes will need to have regard to, the resulting RPS policy framework.

6.4 Whakawhitiwhiti ā-Hapori
Community Engagement

As a co-governance entity, Te Maru o Kaituna members have been kept abreast of project progress and staff have remained open to consultation with interested parties at all steps of the process.

Community engagement and consultation has been carried out in accordance with the Communications and Engagement Plan (Nov 2019 – October 2020).

Consultation is also guided by relevant RPS policies and methods namely Policy IR 4B and Method 41 repeated as follows:

Policy IR 4B: Using consultation in the identification and resolution of resource management issues

Encourage the timely exchange, consideration of, and response to, relevant information by all parties with an interest in the resolution of a resource management issue by:

(d) Consulting as widely as practicable in the preparation, implementation and review of policy statements and plans;

(e) Consulting all potentially affected parties and interest groups in the planning, implementation and review of councils’ own operational activities in relation to the use, development and protection of natural and physical resources; and

(f) Encouraging all parties undertaking resource use, development and protection activities to consult with others who may be affected.

Method 41: Promote consultation with potentially affected tangata whenua

Promote consultation with tangata whenua and any other parties affected:

(a) Early in a proposal development and, as appropriate, to continue this consultation during the implementation of any consented activity; and

(b) As the occasion may dictate, in accordance with tikanga Māori (consultation may be through tribal federations or runanga, iwi authorities, hapū or whānau, depending on the issue).

Implementation responsibility: Regional council and city and district councils.

Proposed Change 5 was open for comment between Monday 24 August and Friday 16 October. Persons/organisations who provided comment on the Kaituna River Document were invited to comment on Proposed Change 5. All iwi and hapū contacts within the Katiuna River catchment were notified either by email or post and invited to comment. As earlier mentioned, no comments/responses were received from iwi or hapū.

The approach for RPS related changes has always been an open door policy. Staff are genuinely open to consulting any interested iwi/hapū, persons, groups and organisations, at a time and place of their choosing. Consultation involves a genuine invitation to exchange information about Proposed Change 5 and its effects with those who may be affected or interested. It involves receiving information and a genuine consideration of that feedback. Sufficient information and time should be provided for the consulted party to be adequately informed, to appraise the information and make useful responses. Staff remain open minded, being ready to change if such is considered warranted.

Consultation in its true sense can only occur during the informal policy drafting phase which has come to a close. Once the Schedule 1 process commences Council is constrained by the scope of changes it can make to the RPS by submissions.

6.5 Te Hāngai ki te Pou Tarāwaho Rautaki
Alignment with Strategic Framework

A Healthy Environment	We develop and implement regional plans and policy to protect our natural environment.
Freshwater for Life	We collaborate with others to maintain and improve our water resource for future generations.
Safe and Resilient Communities	We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.
A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
The Way We Work	We honour our obligations to Māori.

Proposed Change 5 directly contributes to the Healthy Environment, Freshwater for Life and Vibrant Region Community Outcomes in the Council’s Long Term Plan 2018-2028.

6.6 Ngā Pānga ā-Pūtea
Financial Implications

Proposed Change 5 has no material unbudgeted financial implications and fits within the allocated budget. The cost of developing Proposed Change 5 is budgeted in the Long Term Plan 2018-2028 within the Regional Planning activity. Work to date has involved staff time preparing the project plan and communications/engagement plan and draft policy framework, carrying out internal staff consultation, reporting to and workshopping with the Strategy and Policy Committee and Te Maru o Kaituna members. The 2020/21 budget for the overall RPS programme is $221,301. There are no external costs associated with legal due diligence as this is being undertaken by Regional Council’s legal staff. Printing and publication costs associated with notifying Proposed Change 5 in May 2021 is estimated to cost around $1,500.

7. Ngā Mahi Whai Ake
Next Steps

If having had particular regard to the section 32 evaluation report Council decides to proceed, it must publicly notify Proposed Change 5 to the operative RPS.

As previously reported, given Proposed Change 5 ‘relates to freshwater’ the hearing process will be subject to the new Freshwater Planning Process (FPP). The public notification and further submission process follows the standard RMA Schedule 1 procedure. Further detail about the FPP hearing process is available here.

The requirements for public notification are set out in Schedule 1 to the RMA. Once notified Council has two years to make its decisions on submissions. The next steps and indicative timeframes are as follows:

Timeframe	Action
3 May – 9 July 2021	Formal notification of Proposed Change 5. Submissions period is 20 working days from 3 – 28 May. Staff must prepare a summary of decisions requested by submitters and publicly notify this to enable certain persons to make further submissions in support of opposition. The further submission period is 10 working days from 28 June – 9 July 2021.
3 May – 9 July 2021	During the submissions period staff will seek direction from the Strategy and Policy Committee and Te Maru o Kaituna members on nominations for Council and iwi members of the Freshwater Hearing Panel (FHP). Nominations will then be provided to the Chief Freshwater Commissioner (CFC) along with relevant the Proposed Change 5 documentation.
August - September	Staff prepare recommendations in response to submissions received. Meetings may occur with submitters to clarify relief sought. The CFC will convene a FHP who will scheduled and hold hearings followed by deliberations. The FHP will make its recommendations to Council.
October 2021	Council to consider whether to adopt FHP recommendations as Council’s decisions. If Council adopts FHP recommendations they will then become Council’s decisions which must be publicly notified.
November 2021	Appeals process underway. Submitters have 30 working days to lodge an appeal against Council’s decisions. Avenues for appeal are limited under the FPP and may include a judicial right of review. Appeal resolved through mediation, Environment Court hearing or High Court process.

Attachments

Attachment 1 - Draft Proposed Change 5 (Kaituna River) to the RPS 1 April 2021 Version 3.1 ⇩

Supporting Document 1 - Section 32 Report Proposed Change 5 (Kaituna River) Version 4.0 March 2021 ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Kataraina O'Brien, Kotahitanga and Stephen Lamb, Environmental Strategy Manager
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	This paper proposes a renewed role for Komiti Māori, as Council’s lead on ‘partnership and shared decision making with Māori’.

Komiti Maori - Maori Partnerships Lead

Executive Summary

Discussions have been occurring around the role of Komiti Māori and where this role sits within Council’s strategic priority of “Partnerships with Māori”. Komiti Māori Councillors and staff, supported by PWC consultants, have met to discuss this topic and this proposed approach comes from that discussion and from conversations around the LTP.

A key aspect of addressing this strategic priority is enhancing shared decision making. It is therefore considered that a simple but significant change can be made to Komiti Maori Terms of Reference (TOR) to provide a role specific to this.

Shared decision making is not the mandate of any committee but if the Regional Council approves this proposed TOR change it would be a clear signal that there is an expectation that this kaupapa is progressed. This may have implications for all parts of Council and for Council’s planning and operational activities. A work programme and prioritisation framework will be needed by Komiti Māori to implement this kaupapa.

In tandem with discussion around the Komiti’s role there has been discussion on membership. A number of options have been explored and a preferred option identified. Once the role of Komiti Māori is confirmed developing a prioritised work programme will be an important initial step.

Recommendations

That the Regional Council:

1 Receives the report, Komiti Maori - Maori Partnerships Lead.

2 Amends Komiti Māori Terms of Reference as specified in Appendix 1.

3 Agrees that matters of ‘partnership and shared decision-making with Māori’ be progressed by Komiti Maori.

1. Introduction

1.1 Legislative Framework

Council’s operational framework incorporates a number of Māori outcomes, underpinned by specific statutory obligations to Māori. Specifically, the Local Government Act 2002 requires Council to:

- Take appropriate account of the principles of the Treaty of Waitangi and to maintain and improve opportunities for Māori to contribute to Local Government decision-making processes

- Establish and maintain processes to provide opportunities for Māori to contribute to the decision-making processes of the local authority; and

- Consider ways in which it may foster the development of Māori capacity to contribute to the decision-making processes of the local authority.

Similarly the Resource Management Act 1991 recognises the Treaty partnership and principles, and includes a myriad of obligations which shape Councils relationship with tangata whenua.

Jointly and severally these statutes broadly aim to facilitate recognition and provision for Māori, as Treaty partners, within the machinery of local government. Council strives to support that outcome and meet its corresponding obligations through a range of operational initiatives, policies and procedures. The current proposal provides a further step towards that.

1.2 Alignment with Strategic Framework

The Way We Work

We honour our obligations to Māori.

Council’s proposed Long Term Plan 2021-2031 identifies “Partnerships with Māori”, as one of eight strategic priorities. Specifically Council has committed to “working effectively with Māori in partnership to deliver outcomes for the region”.

This proposal provides Council with a dedicated framework towards meeting that priority.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

þ Cultural

Medium - Positive

þ Social

Medium - Positive

¨ Economic

Increasing support and opportunities for Māori to partner and share decision making with Council on specified matters will potentially yield more considered social and cultural outcomes for tangata whenua and the wider community. The proposal also aligns Council with current directives in national level policy that reflect this growing trend.

2. Context

One of Council’s eight strategic priorities is “Partnerships with Māori”, specifically “working effectively with Māori in partnership to deliver outcomes for the region”.

A working definition[1] of partnership between Council and Maori, in practice captures matters where we:

• Plan together

• Share decision-making

• Value contributions and knowledge

• Deliver meaningful outcomes to both parties.

Shared decision–making is perhaps the key aspect of this definition. By enhancing our shared decision making with Māori, Council will be progressing our strategic priority of working effectively in partnership to deliver outcomes for the Bay of Plenty.

This priority is very much in-line with Central Government’s position on Māori rights and interests, which we are seeing reflected within recent government reforms and decisions. It is also a key aspect of Council’s Māori Responsiveness Framework.

2.1 Operating environment

Our operating environment is changing, with Central Government reforms and policy changes directly impacting our work now and in the near future.

Central Government through their latest series of reforms (i.e. Essential Freshwater, Three Waters, and Resource Management), indicate a focus on the rights and interests of Māori, increased engagement and collaboration with Māori and building iwi capacity and capability to partner and engage with reform requirements (i.e. NPS Freshwater). There are more reforms to come (i.e. NPS for Indigenous Biodiversity).

The reforms are progressing at pace through an ambitious timetable and with significant impact expected for local government. The reforms appear to demand a stronger role for regions which will put pressure on resources.

The recent Department of Internal Affairs webinar on an “Overview of Rights and Interests in the Three Waters Reform Programme” gives us some insight and direction into what central government are taking into consideration when carrying out policy reforms. Such as:

• The importance of Māori as a Treaty partner, being involved in these discussions on reform and their calls for: stronger partnership; the ability to participate and engage; protection of their rights, roles and responsibilities as tangata whenua; recognition of their cultural values - their Mātauranga-a-iwi incorporated; and the use of mana enhancing processes.

• Rights and Interests Analysis is now a formal policy process and Cabinet Office requirement following their approval in October 2019 of the Guidelines for policy-makers to consider the Treaty of Waitangi in policy development and implementation.

• The importance of Te Mana o te Wai, being embedded into Taumata Arowai, the water services regulator to administer the new regulatory regime.

There has also been legislative developments such as the Te Ture Whenua Māori (Succession, Dispute Resolution, and Related Matters) Amendment Act 2020, Local Electoral (Māori Wards and Māori Constituencies) Amendment Act 2021, and the Local Government (Rating of Whenua Māori) Amendment Bill.

These developments at the Central Government level, will undoubtedly filter through to what will be required at the regional/local level to implement the reforms.

Council are already taking ad-hoc action in this space by implementing in-house initiatives that support a pathway to shared decision making, such as Te Hononga and the Toi Tangata Plan.

2.2 Value proposition

As a preliminary acknowledgement, while there are pragmatic reasons for advancing this kaupapa, the Treaty of Waitangi provides a separate constitutional foundation for this conversation. Its principles and the partnership upon which it is founded are an established part of the local government framework. Accordingly, the current proposal can be considered in its own right, a local level expression of the Treaty partnership in practice, rather than being part of the value proposition per se.

Given the context and changing operating environment, there is value in Council putting a framework in place now so that we are prepared and in a position to address these changes as they filter down to the regional sector. The key value proposition is that given the changing operating environment, efforts made now towards shared decision making will better position Council for the significant challenges that are on the horizon.

While there are currently informal/ad-hoc systems for shared decision making in place, formalising a structure by making a simple but significant change to the Komiti Māori’s TOR is a clear sign of intention, expectation and progression for both parties and our region. This change will empower the Komiti to provide leadership for where and how Council might take deliberate steps towards this aspect of partnership. Furthermore, it will demonstrate internal shared decision making processes in practice and will help with navigating what comes. This will further the maturity of aspects of Council’s Māori Responsiveness Framework.

2.3 Current examples of shared decision making

There are existing examples of shared decision making already across Council. Although largely of individual origin rather than a cohesive strategy or structured approach (this matter is addressed below), they are indicative of existing opportunities and future potential that exists within the organisation.

Current examples illustrate a broad spectrum, a variety of subject matter, of differing nature and scale, across multiple levels of Council. These include:

- Co-governance (statutory forums) - Te Maru o Kaituna, Rangitāiki River Forum, Rotorua Te Arawa Lakes Strategy Group

- Co-governance (non-statutory forums) - Ōhiwa Harbour Implementation Forum and Tauranga Moana Advisory Group

- Co-management arrangements (non-statutory) - Onekawa Te Mawhai Regional Park

- Operational level partnerships - contracting iwi delegates into localised roles (eg. Te Whānau a Apanui East Coast based compliance officer).

Additionally Council supports a large number of targeted initiatives (iwi management plans, Hearing Commissioner Certification, iwi RMA workshops, Māori education scholarships etc) towards improving Māori capability to participate in local government. Though distinguishable in terms of any direct or immediate element of shared decision making, they are a critical component in supporting tangata whenua towards a pathway of shared decision making at a future point.

3. Potential role of Komiti Māori

Council’s current operating environment is trending towards an increased focus on partnership with Māori. Whilst this may be interpreted and approached in many ways, the crucial element here is shared decision making.

In keeping with that trend, it is proposed that Council implement a more structured approach to shared decision making. It is a perceived natural fit for Komiti Māori in this space, to have oversight and provide leadership as to where/how Council might take deliberate steps towards this.

Komiti Māori is in a sense an internal partnership reflecting the need to involve Māori in decision-making. The content of this report is focusses on how Council might move towards partnerships in an external sense.

3.1 Terms of reference

This proposed role for Komiti Māori can be simply achieved through an amendment to its existing TOR. Proposed amendments are attached in Appendix 1.

3.2 Scope of shared decision making

Shared decision making operates across a spectrum from governance through to operational. There would be no limitation on Komiti Māori ability to review or prompt shared decision making across this spectrum. Initiatives may occur in a general sense (such as a policy) or in a specific sense (for example endorsing a pilot project localised to one part of the Bay of Plenty).

It is also recognised that there will be initiatives that are on a pathway to shared decision making – such as capacity and capability building towards that outcome. This would also be part of the “leadership” mandate.

It is considered unhelpful to seek to define in fixed terms, the scope of Komiti Maori shared decision making function. Rather, Komiti Māori is better served by having the freedom to interpret shared decision making and identify such opportunities organically, with reference to the ‘spirit of partnership’ as its yardstick and noting the above paragraphs.

3.3 How it may operate

As the designated lead, Komiti Māori would cast a strategic lens across Council to identify shared decision making opportunities. This may entail Komiti Māori initiating reviews into potential opportunities of its own volition, or it may lend its support to matters raised by tangata whenua, other council committees, or through its own involvement in other processes of Council.

Komiti Māori would have the leadership mandate but it would be recommended that a collaborative approach is used where its mandate will influence the landscape of other committees. Komiti Māori would where necessary report up to full Council to initiate change in the strategic direction of Council. Where required, working collaboratively on the shared decision making matters that Komiti Māori identifies will ensure robust implementation.

Some potential areas of leadership initiatives may include:

*Co-governance arrangements*	· New fora, new roles for existing fora · Measures to support greater cohesiveness and collaboration between co-governance fora and Council
*Co-management arrangements*	· Measures to support a review of existing co-management agreements · Identification of value-add opportunities
*Joint management agreements*	· Measures to operationalise JMAs. For example, the existing mechanism for the Horomanga Wash (Ngāti Manawa) and those being proposed via Treaty claims yet to be settled (eg Te Whakatōhea)
*Site specific joint planning*	· Policy that supports and resources hapū/iwi to develop and implement site specific management plans
*Operations*	· Identification of potential partnership opportunities (such as operational areas where better support for tangata whenua participation could be explored. For example, resource consent processes) · Leveraging governance support and resourcing

Consideration will need to be given to the logistics of Komiti Maori meetings. Tentatively meetings could alternate between Council chambers and marae – depending on the nature of each meeting agenda. Meetings held on marae may continue the more informal approach by suspending Standing Orders, and focus on matters relevant to the iwi/hapū while those held in the chambers may align with Council related matters. Some marae may have difficulty in accommodating a full contingency of Councillors within a formal meeting style set up however this can be worked through.

3.4 Resourcing

Komiti Māori would be supported in this space through a dedicated work programme yet to be determined. A framework to guide prioritisation of shared decision making opportunities will be an important aspect of this.

Currently the work of Komiti Māori is resourced from within the existing budgets of the various functions that report to Komiti Māori on various relevant matters. However it is anticipated that Komiti Māori will require an increased level of staff support on an ongoing basis, to assist in casting its lens across Council, and to explore and progress identified opportunities.

The LTP 2021 includes a proposed increase to the baseline budget for Māori Outcomes by approximately $175k per annum, part of which could be directed towards dedicated support for Komiti Māori as part of the Māori Partnerships initiative. No further additional resourcing is being sought specifically for this kaupapa. Other funding, such as for Freshwater engagement is separate.

Further assessment and development of an appropriate support structure should be progressed following decisions on the substantive proposal.

4. Komiti Māori membership options

In association with amendments to the TOR there are options to alter the membership of Komiti Māori to widen the experience and expertise available to the Komiti. The kaupapa of enhancing shared decision-making may benefit from input from a wider membership. A key difference in the options below for consideration is whether the Komiti should encompass all Councillors.

Option A - Status quo

Structure

· 7 members

Advantages

· Focussed discussions because of smaller number of members

· Marae based meetings enable Komiti to directly connect with iwi/hapū/marae community

· More easily managed logistics

Disadvantages

· Less opportunity for collective Councillor exposure and responsibility to kaupapa Māori

· Responsiveness and obligations to Māori delegated to sub-set of Council

Option B - Committee of the whole

Structure

· 14 members

· All councillors part of kaupapa

Advantages

· All Councillors collectively exposed to kaupapa Māori

· Collective responsibility in meeting obligations to Māori

· All Councillors part of discussions around enhancing partnerships with Māori

Disadvantages

· Logistical challenges for marae-based meetings

Option C - Committee plus external membership

Structure

· 7 Councillors plus additional members to suit kaupapa

· External membership could be drawn from co-governance entities, sub-regional representation or specialist knowledge areas.

Advantages

· As for “status quo” plus...

· Discussion and decision making enriched by external perspectives/expertise

· Shared decision making

Disadvantages

· As for “status quo” plus...

· Logistical challenges for marae-based meetings

· Appointees may not share the same depth of ‘internal’ council-centric knowledge and awareness as Councillors

· Choosing representation may be politically complex

Option D- Committee of the whole plus external membership

Structure

· All councillors plus additional members to suit kaupapa

· External membership could be drawn from co-governance entities, sub-regional representation or specialist knowledge areas.

Advantages

· As for “Committee of the whole”…

· Discussion and decision making enriched by external perspectives/expertise

· Localised knowledge added to the mix in support of decision-making

Disadvantages

· As for “Committee of the whole”…

· Significant logistical and operational challenges

· Appointees may not share the same depth of ‘internal’ knowledge and awareness as Councillors

· Choosing representation may be politically complex

Given the advantages and disadvantages the preferred option has been identified as Option B: Committee of the whole.

The key rationale is that all Councillors are part of and share the collective responsibility of the kaupapa, have the opportunity to enrich their understanding of Te Ao Māori and matters of importance to Māori, and have the ability to discuss in depth shared decision-making initiatives and options.

5. Considerations

5.1 Risks and Mitigations

a) Delving into operations

Blurring of lines between governance and operations is a collateral risk as many of the potential partnership opportunities occur at an operational level. It may be impractical or difficult to define limits of review/scope at this stage. Acknowledged it will occur from time to time, but we won’t know what’s too far until we are there, and will need to consider appropriate mitigation measures at that time.

b) Resourcing

Resourcing demands will increase, both in respect of supporting the additional functions of Komiti Māori and operationalising the potential partnership opportunities identified. There will be a need for additional expertise to support Komiti Māori. Initially this may be via additional staff but over time resourcing of Māori entities is likely to be required.

c) Non-collaboration

Komiti Māori will need to work collaboratively at a governance level with other Council committees where shared decision making – at operational or policy level – interacts with the work of other committees. There is a risk of non-collaboration if not joined up internally, with a further risk of political intrusion. This risk would be mitigated by having all councillors on Komiti Māori.

d) Non-collaborative decisions on partnership

There are increasing tangata whenua demands for greater and more meaningful recognition of the Treaty partnership at a local government level. Komiti Māori will need to ensure they work with tangata whenua in identifying and progressing shared decision making opportunities, to avoid potential perceptions of paternalism.

e) Tribal politics/relationship dynamics

Inter and intra-tribal politics are a reality of the hapū/iwi landscape. It is important to be apprised of these and where possible avoid being drawn on such matters, where seeking to partner with tangata whenua. To do otherwise may impact the support or progression of potential partnership opportunities.

5.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. Climate change is an issue of significance to Māori and the Komiti’s TOR allow climate change in this context to be a matter for the agenda.

5.3 Implications for Māori

Increasing support and opportunities for Māori to partner and share decision making with Council on specified matters will potentially yield more considered social and cultural outcomes for the tangata whenua and the wider community. The proposal also aligns Council with current directives in national level policy that reflect this growing trend.

5.4 Community Engagement

Whilst Council has not directly engaged with tangata whenua on the specifics of the current proposal, a reasonable level of confidence exists that it generally aligns with tangata whenua aspirations. Increasing opportunities for shared decision making in local government, particularly in respect of natural resource management, is a theme regularly expressed through Council engagement with tangata whenua on other matters. Central government policy directives are similarly trending towards that outcome, reflecting a commonality of tangata whenua aspirations nationally.

5.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

LTP 2021 includes a proposed increase to the baseline budget for Māori Outcomes by approximately $175,000 per annum. Primarily this will be directed towards Māori Partnerships initiatives across the organisation.

6. Next Steps

Following decisions on the Terms of Reference for Komiti Māori and the Komiti’s membership the Council’s Governance Structure and Terms of Reference document will be updated and Governance processes amended to implement the new approach.

Attachments

Attachment 1 - Draft Terms of Reference Komiti Maori ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Troy Brown, Community Engagement Advisor
Report Authoriser:	Namouta Poutasi, General Manager, Strategy & Science
Purpose:	The purpose of this paper is to seek approval to progress a youth engagement plan based on recent rangatahi engagement.

Enhancing youth engagement

Executive Summary

The purpose of this paper is to update councillors on the Bay of Plenty Regional Council (BOPRC) youth engagement work and to seek approval for a proposed youth engagement plan.

Recommendations

That the Regional Council:

1 Receives the report.

2 Agrees that a youth engagement plan is developed, including

(a) An assessment of the viability of developing a Youth Design Group.

(b) Communications tools to inform young people of what the Regional Council does.

(c) Delivery of an innovative youth project – Hackathon for a priority project

(d) Scoping potential to deliver work experience opportunities for young people

3 Notes the withdrawal of Bay of Plenty Regional Council from the Enviroschools Programme

4 Considers an additional budget of $45,000 to implement the above recommendations through the Long Term Plan deliberations.

5 Confirms the decision has a medium level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

1. Introduction

Following a Councillor Workshop in November 2019, councillors requested the review existing youth engagement and provide alternative options to increase breadth and depth of engagement, focusing on engaging hard-to-reach young people, young people beyond the school-age bracket, and larger numbers.

As a result of the review and establishing a councillor working party in June 2020, existing youth engagement events such as Youth Jam and Hands-on Water were discontinued. The Waiora water monitoring workshop for teachers and community leaders continued, and a decision on the Regional Council’s role in supporting the Enviroschools programme was put on hold.

Some suggested alternatives for youth engagement were provided and resourcing was reprioritised and dedicated support (recruited with a specific youth focus) joined BOPRC in November 2020.

In December 2020, a Roadmap was developed to provide direction for youth engagement over the next twelve months focusing on 12-25 year olds. This was shared with the Councillor working party with a commitment to seek input from rangatahi themselves and provide an update in time for consideration through the Long Term Plan.

Figure One: Youth Engagement Roadmap towards a Youth Engagement Plan

The Roadmap is a phased approach to develop and deliver an evidence-based Youth Engagement Plan for BOPRC. This plan will guide a consistent and coherent effort toward improving and maintaining effective and impactful engagement strategies with youth across the Bay of Plenty region. The plan's outcome aims to achieve meaningful youth participation in council decision-making and action, recognising that capacity and capability building may well be required first. The Youth Engagement Plan will guide youth participation over the next three years.

Phase one has already been completed, and results are reported below.

1.1 Alignment with Strategic Framework

A Healthy Environment	We work cohesively with volunteers and others, to sustainably manage and improve our natural resources.
Freshwater for Life	We deliver solutions to local problems to improve water quality and manage quantity.
Safe and Resilient Communities	We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We continually seek opportunities to innovate and improve.

The recommendations put forward have the ability to provide an impact on each of these aspects of the Council’s strategic framework. The Youth Engagement plan will relate to all key strategic frameworks. Enhancing youth engagement allows young people to provide solutions, decisions, and whakaaro on these kaupapa moving forward.

This work will directly support the council priority areas to enhance “Community Participation and Constructive Relationships” and indirectly support Partnerships for Māori and Climate Change.

An overarching Youth Engagement plan would effectively guide youth contribution to BOPPRC, successfully delivering on our strategic frameworks and allowing youth to contribute at all levels.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

Medium - Positive

¨ Cultural

Medium - Positive

¨ Social

Medium - Positive

¨ Economic

Medium - Positive

https://objective.envbop.net/id:A3542587/document/versions/latest

Youth engagement can occur across the council's responsibilities and priorities, aligning with young people's priorities, capability, and capacity. These projects' potential may have a medium impact on all four community well-beings through ongoing youth participation.

When implementing any of the above recommendations for young people, BOPRC should consider a holistic viewpoint to well-being for the betterment of the region and nation.

2. Significance

The recommended proposal/decision has been assessed against the criteria and thresholds in Council’s Significance and Engagement Policy, and can be considered:

Medium

The decision is not within existing budgets and does not implement the current long term plan or annual plan.

The financial costs and implications of the decision are not yet known or provided for.

3. Youth Design

Youth design enables young people as the end-users to inform the creation of potential prototypes to improve a product or service. This section outlines the engagement undertaken to date to inform the recommendations above, including how and who was engaged, the findings of the engagement, identification of the key priorities to integrate into an overarching Youth Engagement plan for BOPRC.

3.1 Phase One: Engagement Method

In January 2021, BOPRC started implementing the actions within the Roadmap. By March 2021, phase 1 was completed.

Phase 1 included the development of Regional Profiles/Environmental scans to provide an overview of each Territorial authority to target engagement. BOPRC engaged over 300 young people through both face-to-face and online mechanisms. The purpose of the engagement was to:

- Understand the barriers and challenges for young people to engage with BOPRC.

- Identify youth-inspired solutions that can improve BOPRC engagement with young people.

The work undertaken in Phase One is already clarifying key sections and foci of the potential BOPRC Youth Engagement Plan. This paper seeks to explain those areas that have been clarified further below.

3.2 Baseline data

With any engagement programme, it is important to recognise the feedback council has already received, including:

· Tauranga Vital Update (Youth) June 2020: the top three priorities identified by Tauranga youth in this survey of 691 young people were preserving green spaces/the environment, protecting our waterways, and reducing traffic/improving public transport, all aligning closely with core council work.

· Instep Young Leaders Feedback 2020: Following a BOPRC-led workshop, the feedback was received from more than 30 Western Bay student leaders that they had had no idea how varied and wide-ranging Regional Council’s work is. Their top 3 priority areas of interest were Environmental Protection, Climate Change, and Pollution Prevention. They identified their preferred engagement methods via video or face-to-face and avoided written newsletters.

· 2019 Youth Jam participant feedback: Youth Jam welcomed more than 50 y11-12 students from ten schools across the region in 2019, including Kura kaupapa and special needs students, for a 3 days summit focused on Climate Change. Feedback was uniformly positive, citing things like learning from experts, networking with other youth, and the multi-day format as key advantages of this way of engaging and learning. Students prioritised their actions for Climate Change and presented them back to the full council for consideration in the BOPRC Climate Change Action Plan.

Following the council's direction in late 2020, and more in-depth engagement programme was carried out with young people across the region to fill gaps in knowledge and seek out a more diverse range of youth perspectives. Once the regional profiles were complete, we identified target areas/districts for impactful engagement within this first phase.

Through a planned approach, key contacts were identified across the targeted districts. Through these contacts, engagement events were set up, and youth participants were able to be easily confirmed.

3.2.1 Kanohi ki te kanohi

Both face-face and online engagement methods were used.

The face-face methods were purposefully undertaken in the targeted districts to supplement prior knowledge. This involved interactive workshops and engagement stations where, through fun, iterative, and facilitated discussions, participants identified barriers to youth engagement with BOPRC and then potential solutions for improving that engagement. There were three in-depth workshops based in Tauranga, Rotorua & Kawerau and no more than twenty youth at each workshop. These workshops allowed youth to explore different barriers and solutions to engage with BOPRC.

We then hosted engagement stations at Ōpōtiki High School, Whakatāne High School, Rangatahi X (Tauranga), and Te Wharekura o Rūātoki. These stations allowed youth to voice information gathered from the workshops.

A breakdown of those youth engaged in the face-face methods is represented in Table one and Figure two. A total of 335 youth engaged face to face.

Table One: Participants in Youth Engagement Activities (January-March 2021)

Event	Location	Date	Activity	Participants
	Tauranga, BOPRC Chambers	14 Jan 2021	Youth Workshop	16 participants who were BOPRC Summer Students
	Rotorua, BOPRC Office	16 Jan 2021	Youth Workshop	18 youth participated from Te Arawa Lakes Trust Rangatahi Summit
	Kawerau, District Council Chambers	26 Jan 2021	Youth Workshop	11 youth participated in this community workshop
	Ōpōtiki, High School	10 Feb 2021	Roadshow: Engagement Station	33 youth participated in this engagement method.
	Whakatāne, High School	12 Feb 2021	Roadshow: Engagement Station	117 youth participated in this engagement method.
	Tauranga, Ngāi Te Rangi	27 Feb 2021	Roadshow: Engagement Station	59 youth participated in this engagement method.
	Rūātoki, Te Wharekua o Rūātoki	11 March 2021	Roadshow: Engagement Station	81 youth participated in this engagement method.

Figure Two: Face-face participants engaged through workshops and Pop up events (January-March 2021)

3.2.2 Online Engagement

All face-face engagement findings informed the design of an online survey and additional activities. The key themes found through the face-face engagements were then tested with a wider youth audience to verify the youth-identified priorities.

· The first method used to do this was an online activity where the key youth-identified solutions were tested on other youth to prioritise.

· The second method was a survey that further tested youth understanding of BOPRC and the importance of BOPRC engaging with youth and community.

· The areas of greatest interest by rangatahi participating online were Climate Change, Freshwater, and Community Funding.

· Overall, 198 youth engaged through our online method (20 March 2021).

4. Engagement Findings

Four areas were explored with youth through the phase 1 engagement; youth understanding of BOPRC; youth desire to engage with BOPRC; youth identified barriers to engagement; youth identified solutions to engagement.

An analysis of the findings from both the workshops and online engagement found four key current challenges needing to be addressed to improve and create effective engagement avenues for youth with BOPRC. The issues are:

- Lack of Visibility – all youth engaged felt that BOPRC had no visible presence in their areas. 72.9% of online respondents had not interacted with the Bay of Plenty Regional Council before.

- Lack of Awareness – the majority of youth engaged were not aware of who BOPRC was and what they did. 51.1% of online youth respondents did not know what BOPRC stood for. 59.9% of online respondents did not know what kind of work BOPRC does.

- Limited Youth Engagement – youth perceived that due to the lack of presence from BOPRC, they could not see how engagement with youth could occur effectively. Acknowledging that it must occur somewhere but latently identifying that it was ineffective.

- Lack of Trust – understandably, the above three issues led to an overall lack of trust in BOPRC. With a lack of understanding, awareness, and connection to who we are, there is currently no trust in BOPRC as a community-driven, youth-friendly, youth-empowering organisation. 51.1% of online respondents were undecided about if they wanted to engage or participate with BOPRC.

Figure Three: Online Survey of 198 youth; “Do you want to engage or participate with Bay of Plenty Regional Council?”

4.1.1 Youth preferences for engagement solutions

Building on the youth-identified solutions captured through workshops, youth were asked to prioritise what they would be most likely to participate in. 257 youth each had three votes to cast against the 6 proposed solutions.

Figure Four: Preferred Youth–identified solutions to improve engagement with the council

The three key solution areas and then the identified recommended actions related to each area, which are being proposed to sit inside an overarching 3 year Youth Engagement Plan, are defined below.

Diagram 2 Youth Inspired Solutions (Key Areas, key priorities)

5. Comparative Regional Council Youth Engagement

Phase one of the Roadmap also included exploring what other councils were doing within youth engagement. Two comparable regional councils worked with youth, each taking slightly different paths, Waikato Regional Council (WRC) and Environment Canterbury (ECAN). The staff has established strong working relationships with both WRC and ECAN.

5.1 Waikato Regional Council

WRC has been in the process of developing a youth council over the last 12 months. The youth council is being designed by youth for youth through monthly meetings and noho marae. WRC has allocated an annual budget of $60,000 towards youth engagement plus 0.5FTEs. This includes $30,000 towards designing this group, which will also cover this group's operational cost this year.

WRC is working on three other initiatives;

- Creating innovative youth projects

- Providing work experience for youth in addition to the Summer Assistant programme

- Supporting secondary Schools with environmental studies (accredited programmes)

5.2 Environment Canterbury Regional Council

ECAN has been working in this space for some time, and they have more than three FTES who are all dedicated towards youth engagement plus an annual operational budget of approximately $35,000. ECRC has designed a youth rōpū that provides insights and solutions towards environmental issues.

Having these relationships will be beneficial when implementing the above recommendations. Each of our recommendations can relate to what these councils are already doing. With these established connections, we can continue to share learnings throughout implementation for circular benefit.

6. Recommended Actions

Post-analysis of all findings for more than 300 Bay of Plenty rangatahi, this paper recommends:

Recommendation	Description
A. Online Translation Tools	Bespoke content created by youth, for youth that uses a language/vernacular and platforms that youth more easily relate to on appropriate social media channels in alignment with the Communications team This product is estimated to cost $10,000.
B. Youth Tab on BOPRC website	Explore options with the Communications team for a dedicated space for youth, where the content is tailored to target this demographic and address the issues identified above through the engagement. Environment Canterbury has added this solution to their website. This can be done internally without additional budget implications.
C. Work Experience/Day Trips	BOPRC facilitate work experience days/time with youth to improve visibility, connections, and potential career pathways into BOPRC and increase the capability to shape decision-making. This product is estimated to cost $15,000 per year.
D. Establish Youth Design Group	A youth forum with representation from across our region is co-designed by youth and council to meet both' specific needs. An initial noho marae hui followed by regular online hui, with potential regular face-to-face hui throughout the year. This product is estimated to cost $30,000 per year based on operational data shared by other Regional Councils that are implementing a similar solution.
E. Youth Hackathon Competitions	Youth problem-solves real-world environmental issues we face in our local region with access to experts, resources, and an opportunity to affect action. Funding will be awarded to implement the best solution. i.e. Wellington City Council and Te Herenga Waka—Victoria University of Wellington have co-hosted Climathon, a 24 hour event since 2015 to generate solutions for a changing climate This product is estimated to cost $15,000 per year.
F. Establish a Youth work plan	Youth Design Group assists in designing a work plan to support implementing the overarching Youth Engagement Plan proposed. The product is estimated to cost $5,000 per year.

From the solutions that were voted on, School and Kura visits were a recommended solution from youth. This solution has not been left out; it will form part of delivering the other solutions recommended, i.e., Work experience/day trips and youth Hackathon. The School and Kura visits will be a vehicle to implement the solutions.

6.1 Ongoing participation in the Enviroschools Programme

Bay of Plenty Regional Council has been the coordinator for the Enviroschools programme in the region for over a decade, supporting schools and ECE centres to understand and utilise the programme’s resources to improve their sustainability practice. When it began, Enviroschools was one of the few programmes offering broad sustainability education resources in New Zealand and filled a significant gap for educators. The programme’s number of participating schools has fluctuated over the years and currently sits at 80 schools. However, less than half of registered schools and Kura are active within the programme, citing reasons such as lack of school leadership support, time poverty, and competing programmes available as reasons they no longer engage with Enviroschools.

The Enviroschools programme, while offering benefits such as a holistic programme aimed at creating sustainability-conscious young citizens and encouraging a student and community-led approach, has significant limitations in terms of being fit-for-purpose and aligning with Regional Council’s current stated community outcomes. The Enviroschools programme is broad and non-prescriptive, offering activities across a range of themes. While many of the themes are relevant to council’s work (e.g. Freshwater for Life), other themes such as waste minimisation and ecological buildings are beyond the specific scope of our mahi. The programme is also heavily focused on exploration and discovery with less of a focus on measurable outcomes, which makes it difficult to gauge the level of both engagement/participation with the programme, as well as direct benefits. While ‘Māori Perspectives’ is a stated theme of the programme, feedback we have received from kura kaupapa makes it clear that the programme is not closely enough aligned with their curriculum to be beneficial.

The staff recommendation is that Regional Council withdraws from its current role as Enviroschools supporting body for the region and focuses its time, energy, and budget on the more meaningful youth engagement outlined in this paper aligns more closely with our stated community outcomes.

7. Considerations

7.1 Risks and Mitigations

The very public nature of youth engagement to initiate this work will have raised community and partner organisation expectations of future youth engagement by the council. We can manage this by clear and consistent communications about what the council is committed to and demonstrating a genuine intent to engage meaningfully by taking on board recommendations from young people where we can.

7.2 Climate Change

The matters addressed in this report are of a procedural nature, and there is no need to consider climate change impacts.

Mitigation			Adaptation
Reduce GHG emissions	Produce GHG emissions	Sequester carbon	Anticipate climate change impacts	Respond to climate change impacts
☒	☐	☐	☒	☒

· This initiative will provide youth with space/resources to directly contribute to addressing climate change. Implementing the Youth Engagement plan will make a positive contribution to adaptation and the priority 'ensuring the region is adapting to a changing climate' through stimulus projects such as the Hackathon.

· The initiative also provides the potential for contributing to the priority 'sequester carbon' by allowing young people to co-design potential solutions to mitigate climate change impacts.

· Young people’s stated high interest/prioritisation of climate change as a generation-defining issue aligns with the Council’s current focus on this area as priority work.

· Where appropriate, staff will seek to work with young people in ways that reduce Green House Gas Emissions, such as reducing travel through online meetings where appropriate.

7.3 Implications for Māori

· This initiative has positive effects on Māori socially and culturally through how the initiative will be delivered. A Māori lens will be put across the initiatives and proposed overarching youth engagement plan.

· Staff specifically targeted engagement by using the regional profiles where the large population of Māori youth were.

· Staff engaged with over 200 Māori young people.

· This initiative will recognise the ‘He Korowai Mātauranga’ framework when implementing recommendations.

7.4 Community Engagement

INVOLVE

Whakaura

To work directly with affected communities throughout the process to ensure that their issues and concerns are consistently understood and fully considered in Council’s decision making.

· This initiative has been built from the community's views (young people), and every recommendation put forward has come from direct youth engagement.

· Young people have been involved in the design stage, and BOPRC must keep them connected throughout the process. Initiatives outside of the current recommendations are being implemented to keep young people connected throughout the proposed Youth Engagement plan.

· The views of young people were recorded through workshops, online platforms and also engagement stations set up at events and youth locations across the region.

7.5 Financial Implications

Please refer to the relevant analysis in the options paper attached.

7.5.1 Current Budget Implications

The combined operational budgets for Youth, Schools and the discounted Pollution Busters budgets are $28,579. The recommended actions are estimated to cost $75,000 p/a. or an additional $45,000 to be considered as part of Long Term Plan deliberations.

	Budget	Actual	Forecast	Variance
Activity	$28,579 (Youth, schools and Pollution Busters budgets combined)		$73,579	$45,000

7.5.2 Future Budget Implications

Financial Impact
	Current $000	2020/21 $000	2021/22 $000	2022/23 $000	2023/24 $000	2024/25 $000	2025/26 $000	2026/27 $000	2027/28 $000
Operating Revenue
[insert revenue by class]
Total Operating Revenue
Operating Expenditure
[insert opex by class]	45	47	48	49	50	51	53	54	54
Total Operating Expenditure	45	47	48	49	50	51	53	54	54
Additional Funding Sources
[insert revenue by class]
[insert revenue by class]
Rates Impact
Targeted Rates % and $	0	0	0	0	0	0	0	0	0
General Rates % and $	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%
Capital Revenue
[insert revenue by class]
Total Capital Revenue
Capital Expenditure
[insert capex by project]
Total Capital Expenditure
Operating Costs

8. Next Steps

· If the council endorses the proposed actions, staff would commence work on the youth Engagement plan, including preparation to establish the Youth design group for launch in July

· The additional budget request could be allocated through the upcoming Long Term Plan deliberations.

· Staff would advise Toimata of BOPRC’s intentions to withdraw from the Enviroschools Programme and agree on shared communications with schools.

Products & Activities	Timeframes
· Develop a document that guides the establishment of a Youth design group: - Meeting with Waikato Regional Council and Environment Canterbury Regional Council on the 24^th of May 2021 to discuss key learnings from their process. -	April-May
· Recruitment process of Youth: - Meeting with Waikato Regional Council and Environment Canterbury Regional Council on the 24th of May 2021 to discuss key learnings from their process.	May-June
· First meeting – Noho Marae	July School holidays
· Ongoing meetings with the youth design group	July - December
· Developing Translation Tool	July – August
· Development of the Youth Engagement Plan for the next three year	June - November
· Youth Conference to Launch Plan	December
· Implementing Youth Engagement Plan	Jan 2022 – Jan 2025



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Zhivan Alach, Organisational Performance Manager
Report Authoriser:	Karen Aspey, Director, People & Leadership
Purpose:	To provide Councillors with information on proposed approaches to achieve greater strategic impact through focusing resources.

Community Participation and Impact

Executive Summary

Council recently revised its Strategic Framework and identified eight Strategic Priorities. Further analysis has identified that three of these – (1) climate change, (2) Māori partnerships, and (3) community participation and constructive relationships – are areas where Regional Council can implement transformational change and demonstrate leadership, meeting Councillor expectations. This focus would lead to increased effort, with a goal of increasing public benefit (impact).

Impact assessment is a method whereby the external benefit from the delivery of Council services is evaluated. Staff are seeking direction as to whether impact in the three areas of focus noted above can be given a greater weighting than impact in other areas. A decision is required now by Council in regards to impact weighting, for the Community Initiatives Fund evaluation criteria.

Council receives applications for funding via the Community Initiatives Fund. This paper summarises the method whereby said applications are evaluated (impact assessment) and what advice from staff Councillors can expect to receive during Long Term Plan deliberations. The same evaluation process will be utilised for other community projects to ensure rigour and equitability.

Recommendations

That the Regional Council:

1 Receives the report, Community Participation and Impact.

2 Notes that three Strategic Priorities have been identified as potentially benefiting from greater attention in the near future, namely (1) climate change, (2) Māori partnerships, and (3) community engagement and constructive relationships.

3 Notes the use of impact assessment as a tool to evaluate proposals and allocate discretionary funding

4 Provides direction on the weighting of impact assessment in three specific priority areas, (1) climate change, (2) Māori partnerships, and (3) community engagement and constructive relationships:

(a) Option One: Provide a greater weighting to impacts in these three specific priority areas;

(b) Option Two: Provide equal weighting to impacts across all Strategic Priorities and outcome areas;

(c) Option Three: Provide a zero weighting to impacts outside these three priority areas.

5 Notes that Councillors will make decisions on Community Initiatives Fund applications during Long Term Plan deliberations on 12 May 2021.

6 Notes that formal impact assessment will be used for the evaluation of both other community projects and Community Initiatives Fund applications to ensure equity of treatment

1. Introduction

Council revised its Strategic Framework in 2020, identifying eight Strategic Priorities to focus its work over the Long Term Plan period:

1. Regulatory reform;

2. Regional recovery;

3. Climate change;

4. Land use and transport;

5. Partnerships with Māori;

6. Making best use of our resources;

7. Sub-regional/regional view; and

8. Community participation and constructive relationships.

Three of these – (1) climate change, (2) partnerships with Māori, and (3) community participation and constructive relationships – have in turn been identified as areas where Councillors are seeking transformational change and the demonstration of regional leadership, and as such requiring additional intervention in the near term. A focus of this will be identifying how best to achieve the greatest level of community benefit through a process called impact assessment.

In relation to this, the evaluation approach for assessing Community Initiatives Fund applications will focus more directly on the impact of said applications. Councillors will still retain final decision-making authority about funding or not funding applications. Direction is required from Councillors as to whether they wish to assign a higher weighting to applications that fit within the three areas noted above, namely (1) climate change, (2) partnerships with Māori, and (3) community participation and constructive relationships.

At its November 2020 workshop, Councillors directed an additional $500,000 in funding for community-led action. Staff intend to allocate this funding to other community projects that will be evaluated under the same criteria as Community Initiatives Fund applications, and which will be considered at the LTP Deliberations meeting of 12 May 2021

1.1 Legislative Framework

Not relevant

1.2 Alignment with Strategic Framework

A Healthy Environment	We work cohesively with volunteers and others, to sustainably manage and improve our natural resources.
Freshwater for Life	We collaborate with others to maintain and improve our water resource for future generations.
Safe and Resilient Communities	We work with communities and others to consider long term views of natural hazard risks through our regional plans and policies.
A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
The Way We Work	We continually seek opportunities to innovate and improve.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

þ Cultural

Low - Positive

þ Social

Low - Positive

þ Economic

Low - Positive

An enhanced approach to impact assessment, and thus the selection of policy proposals, will not contribute directly to community well-beings. However, by improving the quality of decisions made, and thus interventions delivered, it would have a positive effect across all wellbeing domains

2. Strategic Framework – Three Areas for Transformation

During a series of workshops in early 2020, Councillors revised Regional Council’s existing Strategic Framework as a key input into its upcoming Long Term Plan. The revised Strategic Framework identified eight areas as Strategic Priorities:

1. Regulatory reform: Ensuring we deliver on natural resource regulatory reform and our work programme that deliver results on the ground.

2. Regional recovery: Assisting the region to recover from COVID-19 while delivering lasting well-being for the community.

3. Climate change: Ensuring the region is adapting to a changing climate and helping to facilitate a transition to a low carbon economy.

4. Land use and transport: Integrating land-use and transport planning in the region, including the intersection with natural hazards, climate change, and natural resource limits;

5. Partnerships with Māori: Working effectively with Māori in partnerships to deliver outcomes for the region;

6. Making best use of our resources: Making the best use of BOPRC’s resources to deliver on all of our Community Outcomes, including supporting others to deliver;

7. Sub-regional/regional view: Taking a regional view while recognising important sub-regional variations and ensuring constructive relationships nationally, regionally, and sub-regionally; and

8. Community participation and constructive relationships: Ensuring effective community participation in decision making and in the delivery of our roles.

Further analysis and conversations with Councillors has indicated that three of these priorities – (1) climate change, (2) Māori partnerships, and (3) community participation and constructive relationships - may be deserving of greater attention in the immediate future. The rationale for this includes that the other five priority areas are already well-provided for in the draft Long Term 2021-2031. More specific reasons for an increased focus on these three priorities are summarised below:

Climate Change: Councillors have referred to this as our second highest priority behind Regulatory Reform. Councillors directed the inclusion of a Climate Change Statement in our Long Term Plan Consultation Document, which noted that Regional Council recognised the significant implications that climate change would have for the Bay of Plenty, and the need for mitigation and adaptation actions locally and regionally. This statement also noted Regional Council’s declaration of a Climate Change Emergency in June 2019, and subsequent commitment to working with the community on transition to a low-carbon future.

The current level of climate-change related activity in the draft Long Term Plan 2021-2031 may not fully reflect the ambitions of Councillors that Regional Council take a leadership role in this area. As such, increased focus on this priority, and thus greater activity, may be justified, particularly given the increased national level of attention on the topic, and the normalisation of concepts such as carbon emissions.

Māori Partnerships: This priority talks to “working effectively with Māori in partnership to deliver outcomes for the region.” The Bay of Plenty has almost forty iwi, over 200 hapū, and Māori make up the largest ethnic minority by far. Partnerships with Māori have been described as relationships where the two parties plan together, share decision-making, value contributions and knowledge, and deliver meaningful outcomes to both parties. Such partnerships are strongly aligned to recent Central Government initiatives on Māori rights and interests, such as the removal of the ability for a public referendum to prevent the establishment of Māori wards.

Councillors have indicated a desire to implement significant change in this area, and strengthen Regional Council’s partnerships with Māori. There is significant work underway already, including the Māori Responsiveness Framework and the paper presented today on governance and the role of Komiti Māori. Given this appetite, the current level of Māori-partnerships activity in the draft Long Term Plan 2021-2031 may not fully reflect the ambitions of Councillors, and as such an increased focus may be justified.

Community Participation and Constructive Relationships: Engagement with the community can result in better outcomes than if Regional Council acted alone. There is a spectrum of potential community engagement, from informing through to empowering, with empowering involving a significant investment of community time, accompanied by a significant acceptance of community influence by the council. The community may participate by volunteering, decision-making, changing their behaviour, or using governmental funding and grants to deliver their own projects.

Figure 1 - IAP2 Contemporary Engagement Model

Funding of community groups can be a key lever for increased community participation, as financial barriers are often significant, and the difference between will and action. Increased Regional Council funding, leading to greater community engagement and participation, thus has the potential for transformational change. In particular, community participation is central to achieving significant impact for (1) climate change and (2) Māori partnerships, due to their very nature. A focused approach to investment for engagement and volunteers might in turn lead to a significant “movement of the dial.”

Given this appetite, the current level of participation and engagement activity in the draft Long Term Plan 2021-2031 may not fully reflect the ambitions of Councillors, and as such an increased focus may be justified.

2.1 Ensuring Success Against Focus Strategic Priorities

In each of these three areas, staff have identified that it would be valuable to more closely evaluate the likely benefits of various interventions through a process of impact assessment.

3. Impact Assessment

3.1 Outcomes Framework

Public sector agencies deliver benefits (outcomes) through the delivery of specific services (outputs). The table below shows an outcomes framework and the various levels.

Outcomes	Ultimate benefits to the outside environment (social, cultural, economic, environmental)
Impacts	Immediate benefits to the outside environments (social, cultural, economic, environmental)
Outputs	Services we provide
Processes	Internal activities
Inputs	Our resources – people, funding, equipment, property

3.2 Impact Assessment

Impact assessment is how we judge whether a service we deliver will actually achieve stated benefits – in simple terms, “does it work?” Impact assessment enables us to better focus our time and money on those activities that will achieve the greatest impact.

Staff will use impact assessment for the evaluation of Community Initiatives Fund requests, and staff-generated proposals relating to the additional $500,000 allocated to engagement and volunteers.

3.3 Specific Weighting for Focus Areas

Impact assessment is usually agnostic to the type of activity assessed, and merely aims to identify the degree of impact achieved. However, Councillor direction is requested as to whether impact in the three areas noted above – (1) climate change, (2) Māori partnerships, and (3) community participation and constructive relationships – should receive a greater weighting in assessment. The intent of this would be to give effect to Councillor ambition around transformational change and regional leadership in those areas.

For example, under an agnostic approach, a CIF application that delivers a benefit for Land Use and Transport that is greater than the benefit from another application focused on Māori Partnerships would receive a higher score. However, with a weighted approach, a lower overall benefit for Māori Partnerships might lead to a higher score overall.

As such, Councillors are asked to provide direction on the inclusion of weighting of impacts for activities in the three focus areas:

· Weighting Option One: Impacts in the areas of (a) climate change, (b) community participation and constructive relationships, and/or (c) Māori partnerships will receive a higher weighting.

o Benefits: Greater focus on a smaller number of areas; would enable more rapid triage of community applications

o Costs: Would potentially mean high-impact proposals in different areas rejected; prioritising these areas has not been communicated to public so might be seen as moving goal-posts

· Weighting Option Two: Impacts across all areas would receive equal weighting. They would still be evaluated for impact against Regional Council’s Strategic Framework.

o Benefits: Would allow for selection of the highest-impact proposals; would give strong signal to community that all “good” is valued

o Costs: Would mean all applications need assessment; would potentially result in investment against non-focus priorities.

· Weighting Option Three: Impacts outside these three areas would be zero-weighted, not merely given a relatively lower score. This would eliminate them from consideration.

o Benefits: Greatest focus of options; would reduce staff workload by not requiring assessment of all applications.

o Costs: Would mean high-impact proposals in different areas are automatically rejected; could be significant equity issues as guidance to public did not note that only certain applications would be accepted.

Staff advice is that Options One and Three would likely better enable progress in the three focus priority areas, but that Option Two would potentially result in greater overall impact. There is also a significant public reputation risk if Option Three is selected, as applicants falling outside the three areas may consider Regional Council not proactively publishing this criteria as inequitable.

4. Funding for Engagement and Volunteers

Currently, Regional Council maintains two primary competitive funds whereby volunteer groups can apply for funding. The Environmental Enhancement Fund totals $300,000 per annum, has a $25,000 per annum per project maximum, is delegated to staff for decision-making, and has a narrow focus on environmental projects on public-accessible land. The Community Initiatives Fund totals $200,000 per annum, has no per project maximum, has a broad focus, and is delegated to Councillors for final decision-making. The total amount of the two funds is thus $500,000.

At their LTP workshop of November 2020, Councillors directed an additional $500,000 be allocated for community participation, including engagement and volunteers. Staff advice on the use this funding will come to Council as part of the deliberations process.

5. Impact Assessment Process

The following formal process will be used to identify the probable impact (benefits to the community) of CIF applications as well as other community projects utilising the additional $500,000 in funding.

5.1 Evaluation Approach

Applications are evaluated through five sequential phases:

1. Legislative Alignment;

2. Claimed Impact;

3. Impact Likelihood;

4. Project Feasibility;

5. Project Value for Money.

5.2 Legislative Alignment

Applications are first assessed for compliance with legislation and/or any alignment with Bay of Plenty Regional Council statutory obligations. This includes consideration of the Resource Management Act, Local Government Act, Biosecurity Act, and Maritime Transport Act, amongst a multitude of others.

5.3 Claimed Impact

The claimed impact of the application is assessed against Bay of Plenty Regional Council’s performance goals and community outcomes. This identifies what the potential benefit for the Bay of Plenty is, and how aligned this is with Regional Council’s strategic focus. Depending on the options selected by Councillors above, proposals in the three focus areas of (1) climate change, (2) Māori partnerships, and (3) community engagement and constructive relationships may receive a higher score.

5.4 Impact Likelihood

The likelihood that the proposal will achieve its claimed impact is evaluated. This involves consideration of the evidence provided by the proposer (such as examples where a similar project has delivered the stated benefits). Where appropriate, Council subject matter experts will be involved in this assessment. Specific criteria to evaluate the likelihood of a benefit being delivered in the three focus areas of (1) climate change, (2) Māori partnerships, and (3) community engagement and constructive relationships, have been developed.

5.5 Project Feasibility

At this stage, the likelihood that the applicant will deliver the activities stated in the application is evaluated. This phase includes assessment of the provided project plan, its budget, risks and mitigation, the applicant’s capacity and capability, as well as consideration of any prior projects undertaken by the applicant.

5.6 Project Value for Money

At this stage, the cost of the proposal is considered. This involves comparing the likely benefit and cost to the likely costs were the proposal delivered directly by Council staff.

5.7 Overall Process

The five stages can be considered as answering the following questions.

1. Is the proposal aligned to key legislation?

2. How much relevant impact does the proposal claim it will achieve?

3. How likely is it that the actions in the proposal will achieve the claimed impact?

4. How likely is it that the proposer will be able to deliver the actions stated?

5. How cost effective is the proposal?

5.8 Guidance to Councillors

At deliberations, Councillors will be provided the evaluation results for Community Initiatives Fund requests and other community proposals. These will be provided in qualitative terms (i.e. this proposal has strong evidence that it will achieve its claimed benefits, which are strongly aligned to Council’s goals), rather than quantitative terms. This is to avoid any distortionary effect from the assignment of numeric scales, which could differ dramatically in magnitude.

6. Considerations

6.1 Risks and Mitigations

The primary risk is the timeliness of providing Councillors with full evaluation of Community Initiatives Fund requests and other community proposals. Mitigation will involve a hard cut-off of applications on 22 March (aligned with the end of the formal consultation process) to ensure sufficient time is available prior to deliberations for comprehensive evaluation.

A final risk is that Council has not publicly communicated a desire to prioritise the three focus areas. As such, funding applications may not target these areas, which may lead to public perceptions of a lack of transparency

6.2 Climate Change

Community Initiatives Fund relating to climate change may be considered under the special impact assessment criteria noted above and given greater weighting.

6.3 Implications for Māori

Community Initiatives Fund requests relating to Māori partnerships may be considered under the special impact assessment criteria noted above and given greater weighting

6.4 Community Engagement

Community Initiatives Fund requests will be received as part of the formal consultation period, which has been publicised via a multi-channel communications campaign

6.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

7. Next Steps

Council receives the list of Community Initiatives Fund requests and proposals and staff evaluations of said requests and proposals at their deliberations meeting on 12 May 2021



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Debbie Hyland, Finance & Transport Operations Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the Draft SOI 2021-2024 and Half Year Report 2020/21 for BOPLASS

Bay of Plenty Local Authority Shared Services (BOPLASS) Draft Statement of Intent 2021-2024 and Half Year Report 31 December 2020

Executive Summary

BOPLASS is a Council Controlled Organisation (CCO). Schedule 8 of the Local Government Act 2002 requires Council Controlled Organisations to deliver to shareholders a draft Statement of Intent for the coming financial year, by 1 March in the preceding financial year.

The cover letter and draft Statement of Intent 2021 - 2024 sets out objectives, and the nature and scope of activities, and the performance targets, and financial forecasts for the next three financial years.

BOPLASS has also delivered its Half Yearly Report 2020/21.

Recommendations

That the Regional Council:

1 Receives the report, Bay of Plenty Local Authority Shared Services (BOPLASS) Draft Statement of Intent 2021-2024 and Half Year Report 31 December 2020.

2 Notes the BOPLASS Draft Statement of Intent for 2021-2024 and Half Year Report 31 December 2020.

3 Agrees that no formal feedback is required on the Draft BOPLASS Statement of Intent for 2021-2024.

1. Introduction

BOPLASS has delivered its Draft Statement of Intent for 2021-2024 (draft SOI). Council, as a shareholder, has the option to provide comments for the BOPLASS Board to consider as part of preparing the final SOI.

1.1 Legislative Framework

BOPLASS is a Council Controlled Organisation (CCO). Schedule 8 of the Local Government Act (LGA) 2002 requires Council Controlled Organisations to deliver to shareholders a draft Statement of Intent for the coming financial year, by 1 March in the preceding financial year. The Bay of Plenty Regional Council, as a shareholder, then has up to two months to make comments on the draft.

CCOs are required to produce and deliver a half yearly report to shareholder by LGA s 66.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We look to partnerships for best outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Low - Positive

2. Draft Statement of Intent

The covering letter, Attachment 1 provided with the Draft SOI 2021-2024 states:

The primary document setting out the company’s strategic direction is the Statement of Intent which is required to be consulted on and approved by Directors each year. Schedule 8 (9) of the Local Government Act 2002 sets out the content of the document which must cover the next three financial years.

A formal draft document has been approved by the Board for circulation to Shareholders by

1 March 2021. The Directors must consider any comments made by Shareholders and approve a final document by 30 June 2021.

The approved draft is attached and is now circulated for Shareholder comment. Council’s Chief Executive Fiona McTavish is the Shareholder representative and will be responsible for representing the views of the Council to the Board in writing prior to 30 April 2021.

Staff (of BOPLASS) believe that the document realistically deals with the challenges facing the company, identifies ways in which it can contribute value to its constituent councils and reflects an awareness of the challenges facing Local Government.

The draft Statement of Intent 2021-2024, Attachment 2, includes:

· Vision

· Objectives

· Nature and Scope of Activities,

· Governance

· Future developments,

· Stakeholder engagement

· Performance targets, and

· Financial forecasts for 2021/22, 2022/23, and 2023/24.

Council continues to be committed to shared service opportunities across the Bay of Plenty where they make sense from an economic and/or an increased customer experience.

Performance targets set out for the draft SOI are intended to provide targets and measures to ensure on-going reporting and monitoring of organisational effectiveness.

The draft SOI continues to represent maintaining the current practice of making strong financial savings from joint procurement initiatives, although not realising the full potential for shared services opportunities.

3. Half Year Report 2020/21 Highlights

The BOPLASS Half Year Report 31 December 2020 is included as Attachment 3. This report outlines the initiatives that are under consideration or in operation. BOPLASS considers that these initiatives show that they are on track to achieving their performance targets.

Staff note that BOPLASS has a year to date deficit of $18,067 compared to a planned year to date surplus of $15,667. This is reflected in the total equity of BOPLASS reducing to $11,789.

4. Considerations

4.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

There are no specific implications for Māori over and above the general population. The Bay of Plenty Regional Council may wish to share its recent work on a Modern Procurement Framework with BOPLASS and other Councils.

4.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

4.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

If the answer is ‘yes’ to either question please select “Budget Implications” in the building block below and liaise with your Management Accountant in order to complete the Financial Impact table.

There are no material unbudgeted financial implications and this fits within the allocated budget.

5. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Council direction is requested on any specific areas they may wish to provide comments to BOPLASS. If there are comments to be made, Council will need to delegate authority to approve the final comments in order to meet the statutory timeframe.

The Half Year Report 31 December 2020 will be published on the BOPLASS website and Council’s website.

Attachments

Attachment 1 - BOPLASS Cover Letter 25 February 2021 ⇩

Attachment 2 - BOPLASS Draft SOI 2021-2024 ⇩

Attachment 3 - BOPLASS Half Year Report 31 December 2020 ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Debbie Hyland, Finance & Transport Operations Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the Draft Statement of Intent 2021/22 and Half Year Report 2020/21 for the LGFA

Local Government Funding Agency Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020

Executive Summary

The Bay of Plenty Regional Council participates in the Local Government Funding Agency (LGFA) scheme as a principal, and currently as a borrowing shareholder.

Statement of Intent 2021/22

The LGFA’s Draft Statement of Intent 2021/22 (draft SOI) has been received following extensive discussions with the Shareholders Council, it covers the information that is required to be provided to all shareholders and presents the LGFA’s proposed borrowing and lending expectations on behalf of councils in New Zealand.

The draft SOI performance targets are the same as the targets in the previous SOI except the LGFA have included to assist councils with the proposed Three Waters Reform Programme.

Half Year Report 2020/21

The Half Year Report 31 December 2020 provides the following notable highlights:

· The LGFA responded to the financial pressures of COVID-19 by increased the Net Debt/Total Revenue limit for councils with long-term credit ratings of A or higher.

· The LGFA has issued a record $1.90 billion of bonds so far in 2020/21.

· The total loans to councils at 31 December 2020 were $12.289 billion.

· Standard and Poor’s and Fitch provided a credit rating of AA+, which is the same as the New Zealand Government.

Recommendations

That the Regional Council:

1 Receives the report, Local Government Funding Agency Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020.

2 Notes the LGFA Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020.

3 Agrees that no formal feedback is required on the LGFA’s Draft Statement of Intent 2021/22.

1. Introduction

The LGFA was established in 2011 as a Council Controlled Organisation (CCO) by the Crown and nine ‘founding’ Councils, of which the Bay of Plenty Regional Council is one. Whilst our Council at the time had no immediate need for a debt facility, the significant benefit that the LGFA would bring to the Territorial Authorities within our region was seen as of strategic importance to this Council.

The Bay of Plenty Regional Council currently participates in the Local Government Funding Agency scheme as a principal and borrowing shareholder.

Council’s interests as a shareholder are represented by the Shareholders’ Council. This body is made up of five to ten appointees of shareholders (including an appointee from the Crown). Council have consistently had an appointee on the Shareholders Council, and currently this position is filled by Mat Taylor General Manager, Corporate.

1.1 Legislative Framework

The LGFA is a Council Controlled Organisation (CCO). Schedule 8 of the Local Government Act (LGA) 2002 requires Council Controlled Organisations to deliver to shareholders a draft Statement of Intent for the coming financial year, by 1 March in the preceding financial year. The Bay of Plenty Regional Council, as a shareholder, then has up to two months to make comments on the draft.

CCOs are required to produce and deliver a half yearly report to shareholders by LGA s 66.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We look to partnerships for best outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Low - Positive

The LGFA enables Council to borrow at very low interest rates which provides a net saving for the region compared to other funding sources.

2. Draft Statement of Intent 2021/22

The LGFA’s Draft Statement of Intent 2021/22 has been received following extensive discussions with the Shareholders Council, it covers the information that is required to be provided to all shareholders and presents the LGFA’s proposed borrowing and lending expectations on behalf of councils in New Zealand.

The draft SOI recognises the on-going maturity of the LGFA as the significant lender to the local government sector, with a growing number of council’s joining the LGFA and borrowing funds. As in previous years it is consistent with the longer term direction and objectives of the LGFA and provides clear future direction. LGFA has, and continues, to plan for the longer term, also adapting to the changing economic climate based on a lower interest rate outlook in the short and medium term.

The draft SOI undergoes a process, on behalf of all Councils, led by the Shareholder’s Council.

The cover letter from the LGFA in relation to the draft SOI is at Appendix 1, and the draft SOI 2021/22 is at Appendix 2.

SOI Objectives and Content

There are no changes to the main objectives, with one change to additional objectives to include supporting three waters reform. Some specific highlights from the draft SOI are:

Profitability is forecast to remain strong with projections for Net Operating Gain of $11.1 million, $16.3 million, and $19.9 million for the next three years, which is an improvement to actual results from previous years.

Uncertainty exists in these forecasts due to an estimated $6.4 billion of our LGFA bonds and $6.1 billion of council loans maturing in the next three years. Assumptions regarding timing of refinancing, interest rates and margins have a meaningful impact on financial projections.

3. Half Year Report 2020/21 Highlights

The Half Year Report 31 December 2020 is attached as Appendix 3. The LGFA’s half year report provides the following notable highlights:

· The LGFA responded to the financial pressures of COVID-19 by increased the Net Debt/Total Revenue limit for Councils with long-term credit ratings of A or higher.

· The LGFA has issued a record $1.90 billion of bonds so far in 2020/21.

· The total loans to councils at the end of December 2020 were $12.289 billion.

· Standard and Poor’s and Fitch provided a credit rating of AA+, which is the same as the Government.

The LGFA continues to grow and is the most significant lender to local government in New Zealand as intended when it was established. The financial performance of the LGFA is recognised by the continued strong credit rating and the participation in each of the bond issuances.

Key performance indicators continue to show satisfactory results so far for the year, especially in the current financial markets. The period also reported compliance with all covenants and treasury limits. The following two performance measures were not met:

· 85% market share of all council borrowing – 81.8% actual

· Meet with all participating councils at least annually - 22 council visits but behind plan due to COVID travel difficulties

4. Considerations

4.1 Risks and Mitigations

There is a risk associated with being a shareholder in that there is a joint liability (based on rates income) to pay debt costs in the event of a council defaulting on debt repayments. This risk has been assessed and valued, and the basis for the calculation agreed with Audit New Zealand. To date the value of that risk has been too small and immaterial to be included within the Council’s financial statements as a contingent liability. However, it is a risk that will continue to exist while the Council is a shareholder in the LGFA.

4.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

4.3 Implications for Māori

There are no specific implications for Māori over and above the general community.

4.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

4.5 Financial Implications

There are no material unbudgeted financial implications and this fits within the allocated budget.

5. Next Steps

Staff consider that there is no feedback required on the LGFA’s Draft Statement of Intent 2021/22. If Council would like to make comments, authority will need to be delegated to approve the final comments in order to meet the statutory timeframe.

The Half Year Report 31 December 2020 will be published on the LGFA website and Council’s website.

Attachments

Attachment 1 - LGFA Cover Letter 21 February 2021 ⇩

Attachment 2 - LGFA Draft Statement of Intent 2021/22 ⇩

Attachment 3 - LGFA Half Year Report 31 December 2020 ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Debbie Hyland, Finance & Transport Operations Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To seek Council approval for treasury transactions exceeding the Chief Executive’s daily limit in relation to LGFA debt retirement and refinancing for borrowings maturing 15 April 2021

Treasury Report on LGFA Borrowings Maturing April 2021

Executive Summary

Bay of Plenty Regional Council has taken advantage of favourable interest rates available since 1 July 2018 to finance forecast capital expenditure via borrowings from the Local Government Funding Agency. Capital expenditure was pre-funded two years in advance to ensure Council’s liquidity, and invested in term deposits that matched forecast cash-flows. This tactic has returned a positive side benefit which has helped to reduce Council’s general rates requirements in the Long Term Plan 2018-2028.

As part of the Council’s Financial Framework Review for the development of the draft Long Term Plan 2021-2031, treasury projections noted that these advantageous interest rates would not continue and that Council had sufficient cash reserves to fund its capital expenditure and to start to repay borrowings. More recent treasury advice has confirmed this situation, and staff recommend that Council repays $50.5 million of LGFA borrowings that are maturing on 15 April 2021.

In addition, Council has borrowed and on-lent to Quayside $50 million from the LGFA to replace more expensive commercial borrowing. $25 million of this debt will mature on 15 April 2021 and Quayside have requested this is refinanced on a six month term under the facility agreement between Council and Quayside.

In total, these transactions involve $75.9 million of borrowings and $1.208 million of borrower’s notes. This exceeds the Chief Executive’s daily transaction limit of $40 million and Council approval is requested for these transactions.

This report also asks Council to consider directing staff to establish a facility arrangement or short-term loan arrangements with the LGFA to ensure Council continues to meet its obligations as they fall due, in the event of any unforeseen circumstances.

Recommendations

That the Regional Council:

1 Receives the report, Treasury Report on LGFA Borrowings Maturing April 2021.

2 Approves repayment of $50.5 million of Council borrowing from the Local Government Funding Agency on 15 April 2021.

3 Approves refinancing of $25 million and the associated borrowers note for on-lending to Quayside on 15 April 2021.

4 Delegates to the Chief Executive to execute the financial and legal documents for recommendations 2 and 3.

5 Consider delegating to the Chair, Chair of Risk and Assurance, and Chief Executive the authority to take out a facility with the LGFA or short term loans as summarised in Section 3 of this report.

6 Confirms the decision has a high level of significance as determined by the Council’s Significance and Engagement Policy. Council has identified and assessed different options and considered community views as part of making the decision, in proportion to the level of significance.

1. Introduction

As part of the Financial Framework Review for the development of the draft Long Term Plan 2021-2031, treasury projections noted that these advantageous interest rates would not continue and that Council had sufficient cash reserves to fund its capital expenditure and start to repay borrowings.

Council has $50.5 million of borrowing that matures on 15 April 2021. There are borrowers notes of $808,000 associated with this borrowing, i.e. the net borrowing is $49.7 million.

In addition, Council has borrowed and on-lent to Quayside $50 million from the Local Government Funding Agency to replace more expensive commercial borrowings. $25 million of this matures on 15 April 2021 and there is a further $400,000 million of borrowing and $406,400 borrowers note associated with this, i.e. the total borrowing is $25.4 million and the net borrowing is $25 million.

In total, the maturing amounts are $75.9 million of borrowings and $1.208 million of borrower’s notes. This exceeds the Chief Executive’s daily transaction limit of $40 million and Council approval is requested for these transactions.

1.1 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work

This report is purely focussed on efficient financial management arrangements and contributes indirectly to Community Outcomes.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

This report is purely focussed on efficient financial management arrangements and contributes indirectly to Wellbeing.

1. Significance

The recommended proposal/decision has been assessed against the criteria and thresholds in Council’s Significance and Engagement Policy, and can be considered:

High

The decision will involve unbudgeted expenditure exceeding 10% of Council's total expenditure for the year.

2. LGFA Borrowings

LGFA borrower’s notes are largely immaterial relative to the principal loan and interest amounts however are included in the discussion for completeness and to ensure financial amounts in Council resolutions are not inadvertently breached.

LGFA borrowing involve borrower’s notes so that the LGFA can maintain its required capital adequacy ratio. Borrower’s notes are an investment in the LGFA that pay a fixed return on maturity. Currently the LGFA requires borrower’s notes equal to 1.6% of the borrowing with the same maturity date.

Most councils, including BOPRC, borrow for a net amount i.e. borrow for the required amount and the borrowers note. The borrowers notes generally pay 0.1% less interest that the borrowing. For example:

· $10 million of borrowing would require a borrowers note of $160,000 i.e. total borrowing of $10.16 million

· Net interest cost of the extra $160,000 borrowing and borrowers note would be approximately $160 per annum

2.1 Council Borrowing

Council has received two pieces of advice from its Treasury Advisor, Bancorp. These are the draft Pre-Funding Strategy (Attachment 1), and Borrowing Strategy (Attachment 2).

The pre-funding strategy considers the ability for Council to improve liquidity, and to gain a positive carry by borrowing in advance of requirements then investing at a higher interest rate. The below figure from the Bancorp report shows that, as anticipated by the Council’s Financial Framework Review carried out by PWC, there is no current opportunity for a positive carry via term deposits.

Figure 1 – Term deposit carry

While there may be opportunity to invest in higher risk/higher return products than term deposits, pre-funding is a short-term strategy and this would expose Council to risk of losses and is not an appropriate use for borrowed money. Therefore it is preferable to use available funds to pay down borrowing.

The Bancorp Borrowing Strategy for Council considers the upcoming maturing borrowings and available cash reserves. This paper concludes that Council can repay the $50.5 million maturing on 15 April using available call accounts and maturing term deposits.

Staff have completed an updated cash-flow which confirms that this repayment is possible based on current revenue and expenditure forecasts, and available liquid funds. This is discussed further in the risk section.

Staff agree with Bancorp’s recommendation to repay $50.5 million of LGFA borrowing on 15 April 2021 and request Council approval for this, noting the transaction exceeds the Chief Executive daily transaction limit.

2.2 Quayside on-lending

Quayside’s $50 million on-lend is structured in two $25 million tranches. In order to maintain compliance with the LGFA’s concentration limit (maximum $100 million maturing in any 12 month period), these amounts had been separated by 12 months to leave flexibility for Council’s borrowing. In practice, this meant that Quayside had to borrow on 2 year maturities. Repaying Council’s $50 million borrowing leaves more of the concentration limit available for Quayside.

In general, shorter maturities have lower interest rates than longer terms as they expose the borrower to more risk. Quayside has requested to refinance the maturing $25 million for a six month term to take advantage of this lower rate. This is a commercial decision of Quayside. Council has no direct risk as it passes on interest costs to Quayside.

It is recommended to refinance the $25 million on-lend for six months as requested by Quayside. There is a borrower note of $406,040 funded through another $400,000 of borrowing that is associated with the on-lend that would need to be refinance on the same terms.

2.3 Policy Compliance

Bancorp have confirmed that Council will remain within policy compliance limits after these transactions, and including forecast requirements as set out in the draft Long Term Plan 2021-2031, as shown in the figures below.

In addition, paying down borrowing will generally be viewed favourably by credit ratings agencies.

Figure 2 – Interest rate hedging profile

Figure 3 – LGFA concentration limit

3. Considerations

3.1 Risks and Mitigations

The main risk associated with repaying borrowings is managing cash-flow requirements. Staff have updated cash-flow projections and consider that Council will not run into cash-flow issues unless rates revenue collected by the territorial local authorities (TLAs) on our behalf is not paid on time.

Staff have been contacting the TLAs to confirm the timing and amount of rate revenue and do not currently expect difficulties. However, as a further mitigation, Council could consider delegating authority to take out a facility or short term loan with the LGFA in the event of unforeseen cash-flow issues.

This approach would be classed as new borrowing and would therefore require a Council resolution which would be impracticable in a short time-frame. Council could consider delegating authority to take out a short-term facility in the event of unforeseen cash-flow issues.

A suggested limit for this delegation is:

· Approval required by the Chair, Chair of Risk and Assurance Committee, and Chief Executive.

· A total limit of $10 million (i.e. roughly one month of expenditure).

· A maximum term of six weeks (i.e. the time between Council meetings).

· A time limit of 15 August 2021 (i.e. six weeks after the 2020/21 financial year is completed).

· Any borrowing to be reported to all Councillors.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

The matters addressed in this report are of a procedural nature and there is no specific impact on Māori.

3.4 Community Engagement

Engagement with the community is not required as the decision relates to internal Council matters only.

This report is rated as highly significant because the repayment of $50.5 million of borrowings is unbudgeted and involves more than 10% of Council’s total expenditure. However this does not involve physical assets or services for the public and is a matter of efficient and prudent financial management. Staff consider that the general public expect that Council will manage its finances to minimise net borrowing costs.

Therefore, despite the high significance of the decision, staff consider that public consultation is not required under the Local Government Act Principles of Consultation s82 due to the financial management nature of the decision, lack of net community impacts, known public interest in financial efficiency and costs of consultation.

3.5 Financial Implications

The repayment of $50.5 million of borrowings is unbudgeted. Council has sufficient reserves to repay this and meet cash-flow requirements. There will be reductions from budgeted external interest cost and external interest revenue that approximately net out to $0. The major impact is on the balance sheet which will show $50.5 million less assets and liabilities; and additional debt capacity.

4. Next Steps

It is proposed that approval to execute the required legal and financial documents is delegated to the Chief Executive. Staff will work with the LGFA and Russel McVeigh to prepare the documentation.

Work for the finalisation of the draft Long Term Plan 2021-2031 will include an updated Treasury Strategy for Council consideration as part of the LTP Deliberations in May 2021.

Staff will continue to work with TLAs on rates revenue due to be received and other parties, and to ensure Council continues to meet its obligations as they fall due.

Attachments

Attachment 1 - Bancorp Pre-Funding Strategy ⇩

Attachment 2 - Bancorp Borrowing Strategy ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Debbie Hyland, Finance & Transport Operations Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the Draft Statement of Intent 2021/22 and Half Year Report 2020/21 for Quayside Holdings Limited

Quayside Holdings Limited Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020

Executive Summary

Quayside Holdings Limited (Quayside) has delivered its draft Statement of Intent 2021/22 (draft SOI) and Half Year Report 31 December 2020.

Draft Statement of Intent

Finalising Quayside’s Statement of Intent 2021/22 and alignment with the Council’s Long Term Plan 2021-2031 is of critical importance. Staff have identified key themes for feedback, and propose working with Quayside, and with the authors of the Financial Framework Review (PWC), along with delegated Councillors, to complete feedback on the draft SOI by the statutory date of 1 May 2021.

Half-yearly report

Key highlights include:

· Port of Tauranga net Profit after Tax for the first six months of the 2021 financial year was $49.4 million, which was 2.3% higher than the same period the previous year.

· The Port has applied for the Covid-19 recovery fast-track resource consenting process for its proposed berth extension at the Tauranga Container Terminal. The $68.5 million project will create an estimated 368 jobs through the construction phase and more than 81 permanent jobs after completion.

· Net Profit after Tax for the Quayside Group (excluding the Port) was of $31.2 million, compared to $17.4 million for the same period in 2019.

· The Quayside equity portfolio delivered a return of 18% for the six months (2019: 10%) reflecting the strong performance of the NZX in the second half of the year.

Overall, Quayside and the Port of Tauranga have shown strong results, particularly in light of COVID-19 and its impacts on trade volumes and the wider economy.

Recommendations

That the Regional Council:

1 Receives the report, Quayside Holdings Limited Draft Statement of Intent 2021/22 and Half Year Report 31 December 2020.

2 Notes Quayside’s draft Statement of Intent 2021/22 and Half Year Report 31 December 2020.

3 Notes the Statement of Intent process outlined in section 1.1 of this report.

4 Agrees the key themes for feedback to Quayside as:

(a) Delineation between normal and special dividends, and alignment of dividend requirements with the Long Term Plan 2021-2031.

(b) Group Policy requirements, such as a dividend and reserving policies and consideration of the extent to which dividends should be based on actual or budgeted performance.

(c) Greater transparency of the amounts invested in, and projected returns from, the various investment categories including non-financial returns from Regional Benefit assets.

(d) Metrics to support consideration of intergenerational equity.

(e) Which Quayside subsidiaries would benefit from a separate SOI.

5 Delegates to the Chief Executive, Chair, Deputy Chair, Chair of Risk and Assurance Committee, and Chair of Strategy and Policy Committee to finalise feedback to Quayside by 1 May 2021.

6 Notes that the final feedback to Quayside will be distributed to all Councillors.

7 Confirms the public be excluded on the grounds set out in the Local Government Official Information and Meetings Act 1987 from consideration of the following report attachment:

(a) Quayside Holdings Limited Cover Letter and Response to BOPRC's Statement of Expectation 1 March 2021 under Section 48(1)(a)(i) Section 7 (2)(h) as withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities and that this attachment remain in Public Excluded.

1. Introduction

Quayside is the ‘investment arm’ of Council and is 100% owned by the Bay of Plenty Regional Council. Quayside manages the Council’s 54% shareholding in the Port of Tauranga and other commercial ventures.

Quayside returns an annual dividend to Council that is used to benefit regional ratepayers from across the Bay of Plenty region by reducing their general rates requirement.

1.1 Legislative Framework

The Local Government Act (2002) (LGA) sets the requirements, timeframes and general process for Statements of Intent. Every Council Controlled Organisation must prepare and adopt a Statement of Intent, noting that a Statement of Intent may include and apply to 2 or more related Council Controlled Organisations per LGA s64 (3) (b)As a brief summary of the process set in LGA Schedule 8:

1. CCO Board delivers a draft Statement of Intent by 1 March. (completed)

2. The shareholders can delivery comments by 1 May

3. The CCO Board considers comments

4. The CCO Board delivers the completed Final Statement of Intent to the shareholders before 1 July

5. The shareholders may, by written notice, extend the deadlines by up to one month.

The shareholders do not have legislative mandate to approve the Statement of Intent. However, the shareholders may, by written resolution, require the CCO Board to modify the Statement of Intent, provided that the modifications are:

1. Consistent with the objectives of the CCO’s constitution, and

2. Lawful

The CCO Board must be consulted on the proposed content of the resolution before it is made. The Board must prepare and adopt a modified Statement of Intent as soon as practicable after receiving a compliant resolution from their shareholders.

In addition to the Statement of Intent, Council may choose to set a Statement of Expectations under LGA s64B and/or require additional plans such as an asset management plan or thematic plan under LGA s64A.

As part of Long Term Plan 2021-2031, Council delivered its first Statement of Expectations to Quayside, which has been used as the basis for assessing the draft Statement of Intent. Quayside have formally responded to Council’s Statement of Expectations.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
The Way We Work	We look to partnerships for best outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Medium - Positive

Further guidelines available here.

2. Draft Statement of Intent 2021/2022 – Quayside Holdings

Quayside has responded to Council’s Statement of Expectation (Attachment 1 – public excluded) and provided a draft Statement of Intent for 2021/22 (Attachment 2).

Alignment between the final Quayside Statement of Intent 2021/22 and Council’s Long Term Plan 2021-2031 is very important because of the significant dividend. The Quayside’s dividend to Council provides for intergenerational equity, financial resilience and there is regional benefit provided by Quayside’s projects such as the future development of the Rangiuru Business Park.

Staff consider that the draft SOI 2021/22 requires formal feedback to ensure that Council direction is clearly articulated. Staff note the key themes that are likely to be articulated include:

· Delineation between normal and special dividends, and alignment of dividend requirements with the Long Term Plan 2021-2031.

· Group Policy requirements, such as a dividend and reserving policies and consideration of the extent to which dividends should be based on actual or budgeted performance.

· Greater transparency of the amounts invested in, and projected returns from, the various investment categories including non-financial returns from Regional Benefit assets.

· Metrics to support consideration of intergenerational equity.

Council is required to provide feedback by 1 May 2021. Staff intend to work through detailed feedback taking into account discussions and direction on the Long Term Plan 2021-2031, and advice from PWC in relation to the Financial Framework Review. This feedback will be discussed with Quayside to work towards a mutually satisfactory and achievable result.

In order to complete and send this feedback within the statutory timeframe, staff request delegated authority from Council to finalise this feedback. Considering the significance and high level of materiality of this feedback, staff recommend that the appropriate delegation for approval is the Chief Executive, Chair, Deputy Chair, Chair of Risk and Assurance Committee, and Chair of Strategy and Policy Committee.

3. Draft Statement of Intents 2021/2022 – Quayside Subsidiaries

In addition, draft Statements of Intent 2021/22 have been received for several Quayside subsidiaries. These include:

· Aqua Curo (Attachment 3)

· Lakes Commercial Developments (Attachment 4)

· Tauranga Commercial Developments (Attachment 5).

· Huakiwi (Attachment 6)

Each of these statements of intent means that there will be reporting and compliance requirements to be met. The Local Government Act s64 (3) (a) allows for a statement of intent to apply to 2 or more related council controlled organisations.

Staff intend the feedback on the Quayside Statement of Intent to include consideration of which Quayside Subsidiaries would benefit from a separate Statement of Intent and which should be incorporated into the Quayside Statement of Intent.

4. Half Year Report 2020/21 Highlights

Quayside has provided its Half Year Report 31 December 2020 as required by the Local Government Act s66 (Attachment 7). Key highlights from the report include:

Port of Tauranga

· Net Profit after Tax for the first six months of the 2021 financial year was $49.4 million, which was 2.3% higher than the same period the previous year.

· The acquisition of Kotahi Logistics’ 50% shareholding in Timaru Container Terminal has been completed.

· The Port has applied for the Covid-19 recovery fast-track resource consenting process for its proposed berth extension at the Tauranga Container Terminal. The fourth berth will be created by converting 220 metres of cargo storage land to the south of the existing wharves. The $68.5 million project will create an estimated 368 jobs through the construction phase and more than 81 permanent jobs after completion.

Quayside Group

· Net Profit after Tax for the Quayside Group (excluding the Port) was of $31.2 million, compared to $17.4 million for the same period in 2019.

· The Quayside equity portfolio delivered a return of 18% for the six months (2019: 10%) reflecting the strong performance of the NZX in the second half of the year.

· The 5-year rolling return form the equity portfolio remains strong at 15%.

Overall, Quayside and the Port of Tauranga have shown strong results, particularly in light of COVID-19 and its impacts on trade volumes and the wider economy.

5. Considerations

5.1 Risks and Mitigations

The major risk is potential misalignment between the final statements of intent for Quayside Holdings Limited and the Council’s Long Term Plan 2021-2031. Feedback on the statements of intent, and the ability to direct changes mitigates this.

5.2 Climate Change

Crtl + click for guideline material.

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

5.3 Implications for Māori

Crtl + click for Guideline material.

The Statement of Expectation requested Quayside to include Maori Economic Development. Huakiwi Services Limited was established to pursue opportunities in the horticulture sector with a focus on the development and betterment of Maori land. More information on Quayside’s contribution to Maori Economic Development could be beneficial.

5.4 Community Engagement

Consider identifying in the report:

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

5.5 Financial Implications

Final budget implications will be refined and discussed as part of the Council’s Long Term Plan 2021-2031 deliberations and financial briefings.

6. Next Steps

The Quayside Half Year Report 31 December 2020 has been published on Quaysides website and will also be published on Council’s website.

Staff will work with Quayside, delegated Councillors and the external advisors for the Financial Framework Review (PWC) to prepare feedback on Quaysides Draft Statement of Intent 2021/22 and this will be sent by 1 May 2021.

All Councillors will be given a copy of this feedback for information.

Attachments

Attachment 1 - Quayside Holdings Limited Cover Letter and Response to BOPRC's Statement of Expectation 1 March 2021 (Public Excluded) ⇩

Attachment 2 - Quayside Draft Statement of Intent 2021/22 ⇩

Attachment 3 - Aqua Curo Draft Statement of Intent 2021/22 ⇩

Attachment 4 - Lakes Commercial Developments Draft Statement of Intent 2021/22 ⇩

Attachment 5 - Tauranga Commecial Developments Draft Statement of Intent 2021/22 ⇩

Attachment 6 - Huakiwi Draft Statement of Intent 2021/22 ⇩

Attachment 7 - Quayside Half Year Report 31 December 2020 ⇩



Report To:	Regional Council
Meeting Date:	1 April 2021
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Debbie Hyland, Finance & Transport Operations Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the Draft Statement of Intent 2021/22 for the Toi Moana Trust.

Toi Moana Trust Draft Statement of Intent 2021/22

Executive Summary

Council has received the Toi Moana Trust’s Draft Statement of Intent for 2021/22. Quayside Holdings, who manage the $45 million fund on behalf of Council, advise that the targeted annual cash distribution of 5% should be reduced to 3.5% in the current environment.

It is important that the final Statement of Intent 2021/22 for the Toi Moana Trust and Council’s Long Term Plan 2021-2031 are aligned. As feedback on the draft SOI 2021/22 is required by 1 May 2021, it is proposed to delegate approval for this feedback to the Chair and Chief Executive.

Recommendations

That the Regional Council:

1 Receives the report, Toi Moana Trust Draft Statement of Intent 2021/22.

2 Agrees the key themes for feedback to the Toi Moana Trust as:

(a) Alignment of dividend and performance expectations between the Statement of Intent and the Long Term Plan 2021-2031, including catch up dividends.

(b) Group Policy requirements, such as a dividend and reserving policies and consideration of the extent to which dividends should be based on actual or budgeted performance.

(c) Flexibility in the SIPO for the Manager to develop asset allocations that best fit the objectives and risk tolerances of the fund.

3 Delegates to the Chair and Chief Executive to finalise feedback to the Toi Moana Trust by 1 May 2021.

4 Notes that the final feedback to Quayside will be distributed to all Councillors.

1. Introduction

The Toi Moana Trust is a Council Controlled Organisation that manages an investment of $45 million on behalf of Council. Returns from this investment, originally targeted at 5% per annum, are intended to be returned to Council and are used to reduce the general rates requirement.

The Toi Moana Trust is majority owned by Council, approximately 45 million units, with a minority holding by Quayside of 1 unit. Quayside is the appointed fund manager. The Toi Moana Trust is a Portfolio Investment Entity (PIE) under the Quayside Investment Trusts, Trust Deed.

1.1 Legislative Framework

The Toi Moana Trust is a Council Controlled Organisation (CCO). Schedule 8 of the Local Government Act (LGA) 2002 requires Council Controlled Organisations to deliver to shareholders a draft Statement of Intent for the coming financial year, by 1 March in the preceding financial year. The Bay of Plenty Regional Council, as a shareholder, then has up to two months to make comments on the draft.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We look to partnerships for best outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Low - Positive

2. Draft Statement of Intent 2021/22

Quayside’s response to Council’s Statement of Expectations included the following in relation to the Toi Moana Trust:

Quayside has considered Council’s request that it look at the performance objectives of this fund as part of the SOI process. Quayside believe that to remain with the same risk profile prescribed by Council, the return expectation would be 3.5% per annum from year one of the LTP. These amendments have been reflected in detail in the Toi Moana Trust SOI.

It is important the dividend expectations are aligned between the final Statement of Intent for the Toi Moana Trust and the Council’s Long Term Plan 2021-2031. The draft SOI 2021/22 includes a reduced dividend target and makes no mention of the catch up dividend payment relating to the year ended 30 June 2020. These matters need to be resolved as part of the finalisation process.

Staff note that the Statement of Investment Policy and Objectives for the Toi Moana Trust enables the Manager to “develop asset allocations that best fit the objectives and risk tolerances of the fund” and there may be potential for Council to reconsider the balance between risk and return with advice from the Manager.

Council is required to provide feedback by 1 May 2021. Staff intend to work through detailed feedback taking into account discussions and direction on the Long Term Plan 2021-2031 and further external advice in relation to Council’s Financial Framework Review.

Feedback will be discussed with Quayside to work towards a mutually satisfactory and achievable result for the Toi Moana Trust. It is proposed that approval for feedback is delegated to the Chair and Chief Executive. Staff note the key themes for feedback are likely to include:

· Alignment of dividend and performance expectations between the Statement of Intent and the Long Term Plan 2021-2031, including catch up dividends.

· Group Policy requirements, such as a dividend and reserving policies and consideration of the extent to which dividends should be based on actual or budgeted performance.

· Flexibility in the SIPO for the Manager to develop asset allocations that best fit the objectives and risk tolerances of the fund.

3. Considerations

3.1 Risks and Mitigations

The major risk is potential misalignment between the Toi Moana Trust’s final Statement of Intent 2021/22 and the Council’s Long Term Plan 2021-2031. Feedback from Council on the draft SOI, and the ability to direct changes mitigates this risk.

3.2 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts.

3.3 Implications for Māori

The matters addressed in this report are of a financial management nature and there is no implications for Māori that differ from the general community.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision [relates to internal Council matters only].

3.5 Financial Implications

If the recommendation is adopted by Council, will it result in:

If the answer is ‘no’ to both questions please select the dropdown option 1 and complete appropriately.

Council’s draft Long Term Plan 2021-2031 includes budgeted dividend from the Toi Moana Trust in 2021/22 of $4.5 million. This assumes a 5% annual dividend from the $45 million fund of $2.25 million, and a further $2.25 million catchup dividend in 2021/22 due to the fund not paying a dividend to Council in the year ended 30 June 2020. The draft SOI 2021/22 from the Toi Moana Trust forecasts revenue of $1.57 million in 2021/22. Staff intend to work through detailed feedback taking into account discussions and direction on the draft Long Term Plan 2021-2031 and further external advice in relation to Council’s Financial Framework Review to ensure alignment.

4. Next Steps

Next Steps: What next? What resources are needed? Further analysis? Timeframes ahead. Any consultation planned. Remind Council of the process ahead. Next update to Council?

Conclusion: Short concluding remarks. Referring back to recommendations. No new content.

Staff will work with PWC, Quayside and delegated Councillors to prepare feedback to the Toi Moana Trust on its Draft Statement of Intent and this will be sent by 1 May 2021. All Councillors will be given a copy of this feedback for information.

Attachments

Attachment 1 - Toi Moana Trust Draft Statement of Intent 2021/22 ⇩

[1] Adapted from Te Arawhiti’s “Building closer partnerships with Māori” principles.

Chairperson	Chairman Doug Leeder
Deputy Chairperson	Cr Jane Nees
Members	All Councillors
Quorum	Seven members, consisting of half the number of members
Meeting frequency	Six weekly or as required for Annual Plan, Long Term Plan and other relevant legislative requirements