Agenda of Regional Council - Thursday, 16 March 2023

Council

Membership

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

Purpose

· Enable democratic local decision-making and action by, and on behalf of, Bay of Plenty communities.

· Meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses.

· Set the overarching strategic direction for Bay of Plenty Regional Council as an organisation.

· Hold ultimate responsibility for allocating financial resources across the Council.

Role

· Address Local Electoral Act matters and Local Government Rating Act matters.

· Oversee all matters relating to identifying and contributing to community outcomes.

· Consider and agree on matters relating to significant new activities or areas of involvement such as infrastructure which are not the responsibility of a specific committee.

· Provide regional leadership on key issues that require a collaborative approach between a number of parties.

· Review and decide the Council’s electoral and representation arrangements.

· Consider issues of regional significance which are not the responsibility of any specific standing committee or that are of such regional significance/high public interest that the full Council needs to decide on them.

· Adopt Council’s Policy on Significance and Engagement Policy.

· Develop, adopt and implement the Triennial Agreement, Code of Conduct and Standing Orders.

· Consider and agree on matters relating to elected members’ remuneration.

· Appoint the Chief Executive, and review their contract, performance and remuneration at least annually.

· Approve all delegations to the Chief Executive, including the authority for further delegation to staff.

· Oversee the work of all committees and subcommittees.

· Receive and consider recommendations and matters referred to it by its committees, joint committees, subcommittees and working parties.

· Approve membership to external bodies and organisations, including Council Controlled Organisations.

· Develop, adopt and review policies for, and monitor the performance of, Council Controlled Organisations.

· Monitor and review the achievement of outcomes for the Bay of Plenty Community.

· Review and approve strategic matters relating to the sale, acquisition and development of property for the purposes of meeting Council’s organisational requirements and implement Regional Council policy.

· Address strategic corporate matters including property and accommodation.

· Consider and agree on the process to develop the Long Term Plan, Annual Plan and Annual Report.

· Adopt the Long Term Plan, Annual Plan and budgets variations, and Annual Report.

· Adopt Council policies as required by statute (for example Regional Policy Statement and Regional Land Transport Strategy) to be decided by Council or outside of committee delegations (for example infrastructure policy).

· Develop, review and approve Council’s Financial Strategy and funding and financial policies and frameworks.

· Institute any proceedings in the High Court that are not injunctive proceedings.

· Exercise the powers and duties conferred or imposed on Council by the Public Works Act 1981.

Delegations from Council to committees

· Council has a role to monitor the functioning of all committees.

· Council will consider matters not within the delegation of any one Council committee.

· Council may at any time, revoke or modify a delegation to a Council committee, either permanently, for a specified time or to address a specific matter, if it considers there is good reason to do so.

· The delegations provided to committees may be further delegated to subcommittees unless the power of further delegation is restricted by Council or by statute.

· It is accepted in making these delegations that:

· The committees, in performing their delegated functions, powers or duties, may, without confirmation by the Council, exercise or perform them in a like manner and with the same effect as the Council itself could have exercised or performed them.

· The delegated powers given shall at all times be subject to their current policies and principles or directions, as given by the Council from time to time.

· The chairperson of each committee shall have the authority to exercise their discretion, as to whether or not the delegated authority of the committee be used where, in the opinion of the chairperson, circumstances warrant it.

Powers that cannot be delegated

Under Clause 32 Schedule 7 of the Local Government Act 2002, Council must make the following decisions:

· Make a rate.

· Make a bylaw.

· Borrow money or purchase or dispose of assets, other than in accordance with the long-term plan.

· Adopt the long-term plan, annual plan, or annual report.

· Appoint a chief executive.

· Adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the long-term plan or developed for the purpose of the local governance statement.

· Adopt a remuneration and employment policy.

Livestreaming and Recording of Meetings

Please note the Public section of this meeting is being recorded and streamed live on Bay of Plenty Regional Council’s website in accordance with Council's Live Streaming and Recording of Meetings Protocols which can be viewed on Council’s website. The recording will be archived and made publicly available on Council's website within two working days after the meeting on www.boprc.govt.nz for a period of three years (or as otherwise agreed to by Council).

All care is taken to maintain your privacy; however, as a visitor in the public gallery or as a participant at the meeting, your presence may be recorded. By remaining in the public gallery, it is understood your consent is given if your image is inadvertently broadcast.

Opinions expressed or statements made by individual persons during a meeting are not the opinions or statements of the Bay of Plenty Regional Council. Council accepts no liability for any opinions or statements made during a meeting.

Regional Council 16 March 2023

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 - 14 December 2022 2

8.2 Regional Council Minutes - 9 February 2023 2

9. Reports

9.1 Chairperson's Report 2

Decisions Required

9.2 Quayside Group draft Statements of Intent for 2023-2026 and Half Yearly Reports 2

Attachment 1 - Statement of Expectations 2023-2026 Quayside Holdings Limited and Toi Moana Trust 2

Attachment 2 - Draft Quayside Group Statement of Intent 2023/24 2

Attachment 3 - Covering Letter for Draft Quayside Group Statement of Intent 2023/24 2

Attachment 4 - Quayside Group Half Yearly Report for period ending 31 December 2022 2

Attachment 5 - Toi Moana Trust - Quarterly update - December 2022 - public agenda version 2

9.3 Local Government Funding Agency Limited - draft Statement of Intent 2023-2026 and Half Yearly report 2

Attachment 1 - LGFA Cover Letter for Half Yearly Report to December 2022 2

Attachment 2 - LGFA Half Yearly Report to December 2022 2

Attachment 3 - LGFA Statement of Expectations 2023-2026 from LGFA Shareholders' Council 2

Attachment 4 - LGFA Cover Letter for Draft Statement of Intent 2023-2026 2

Attachment 5 - LGFA Draft Statement of Intent 2023-2026 2

Attachment 6 - Letter to Shareholders' Council regarding LGFA draft 2023-2026 SOI 2

9.4 Bay of Plenty Local Authority Shared Service Half Yearly Report and Draft Statement of Intent 2

Attachment 1 - Bay of Plenty Local Authority Shared Service Half Yearly Report to 31 December 2022 2

Attachment 2 - Bay of Plenty Local Authority Shared Services Draft Statement of Intent 2023-2026 2

9.5 Statement of Proposal - Fees and Charges Policy 2

Attachment 1 - Statement of Proposal: Fees and Charges Policy 2

Attachment 2 - Draft Fees and Charges Policy for Consultation 2

9.6 2023/24 Draft Annual Plan - Engagement 2

9.7 Refinancing Council Borrowing 2

Attachment 1 - Draft Bancorp Funding Strategy - Public Excluded

9.8 Appointment of Tangata Whenua Representative to the SmartGrowth Leadership Group 2

9.9 Monitoring & Responding to Central Government Reforms – Action Plans

This item will be distributed under a separate cover.

Information Only

9.10 Financial and Non Financial Performance Report - Arotake Report: Half Year Performance 2

Attachment 1 - Arotake Tuarua 2022-2023 Q2 2

Attachment 2 - CONFIDENTIAL Bancorp Report December 2022 - Public Excluded

9.11 Cycleways on BOPRC Managed Stopbanks in the Eastern Bay of Plenty 2

10. 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
9.7	Refinancing Council Borrowing - Attachment 1 - Draft Bancorp Funding Strategy - Public Excluded	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.
9.10	Financial and Non Financial Performance Report - Arotake Report: Half Year Performance - Attachment 2 - CONFIDENTIAL Bancorp Report December 2022 - Public Excluded	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.
10.1	Public Excluded Regional Council Minutes - 14 December 2022	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
10.2	Public Excluded Regional Council Minutes - 9 February 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
10.3	Climate Resilience Projects - Progression	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).	To remain in public excluded.
10.4	Guidance for Quayside Holdings Limited's Directors' Nomination Panel	Withholding the information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest.	48(1)(a)(i) Section 7 (2)(c)(ii).	On the Chief Executive's approval.

9.7 Refinancing Council Borrowing

Attachment 1 - Draft Bancorp Funding Strategy - Public Excluded

9.10 Financial and Non Financial Performance Report - Arotake Report: Half Year Performance

Attachment 2 - CONFIDENTIAL Bancorp Report December 2022 - Public Excluded

Minutes to be Confirmed

10.1 Public Excluded Regional Council Minutes - 14 December 2022

10.2 Public Excluded Regional Council Minutes - 9 February 2023

Decisions Required

10.3 Climate Resilience Projects - Progression

Attachment 1 - 2023-03-08 Notice to BOPRC_2March23Final

10.4 Guidance for Quayside Holdings Limited's Directors' Nomination Panel

11. Public Excluded Business to be Transferred into the Open

12. Readmit the Public

13. Consideration of Items not on the Agenda

14. Closing Karakia

Regional Council Minutes

22 December 2022

Regional Council

Open Minutes

Commencing: Wednesday 14 December 2022, 9.30 am

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

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Malcolm Campbell

Cr Stuart Crosby

Cr Toi Kai Rākau Iti

Cr Matemoana McDonald

Cr Kat Macmillan

Cr Ron Scott

Cr Ken Shirley

Cr Paula Thompson

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

In Attendance: Fiona McTavish – Chief Executive, Mat Taylor – General Manager Corporate, Namouta Poutasi – General Manager Strategy & Science, Reuben Fraser – General Manager Regulatory Services, Chris Ingle – General Manager Integrated Catchments; Kataraina O’Brien – General Manager Strategic Engagement (via Zoom) Karen Aspey - Director, People & Leadership, Kumaren Perumal – Chief Financial Officer; Gillian Payne – Principal Advisor; Graeme Howard – Corporate Planning Lead, Mereana Toroa – Finance Support Team Lead, Olive McVicker – Corporate Performance Team Lead; Tone Nerdrum Smith – Committee Advisor

Sir Rob McLeod - Chair, Lyndon Settle – Chief Executive and Brendon Barnes – Chief Investment Officer (all Quayside Holdings Ltd)

Apologies: Cr Lyall Thurston

Chairman Leeder reminded those present that this meeting was being livestreamed and recorded and that the recording would be made available on the Bay of Plenty Regional Council website following the meeting.

Regional Council Meeting Recording - Part 1

Regional Council Meeting Recording - Part 2

1. Opening Karakia

A karakia was provided by Cr Te Taru White.

2. Apologies

Resolved

That the Regional Council:

1 Accepts the apology from Cr Lyall Thurston tendered at the meeting.

Leeder/Winters

CARRIED

3. Public Forum

3.1	Withdrawn: Gordon Dickson – Rates Payment and Environment / Conservation Matters
	Mr Dickson was unable to attend and would instead be rescheduled to speak at a future meeting.

4. Declaration of Conflicts of Interest

Cr Stuart Crosby declared a conflict of interest in items 9.4 Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution; 9.5 Presentation: Quayside Quarterly Update and 9.8 Quayside Holdings Limited - Statement of Expectations 2023/24 as a Quayside Board Director.

Cr Te Taru White declared a conflict of interest in items 9.4 Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution; 9.5 Presentation: Quayside Quarterly Update and 9.8 Quayside Holdings Limited - Statement of Expectations 2023/24 as a Quayside Board Director.

5. Public Excluded Business to be Transferred into the Open

Resolved

That the Regional Council:

1 Transfers into the Open the resolutions for agenda item 9.4: Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution (for resolutions, refer item 7.4 of the minutes).

Nees/Thompson

CARRIED

6. Minutes

Minutes to be Confirmed

6.1

Regional Council Minutes - 24 November 2022

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 24 November 2022 as a true and correct record.

Nees/White

CARRIED

7. Reports

7.1

Chairperson's Report

Key Points - Members:

· Sought opportunities for Councillors to provide input and feedback into the Regional Sector work priorities for the new triennium on matters where Council was asked to assume a position

· Noted that there had been no change in position from previous information circulated to Councillors.

Key Points – Chief Executive:

· A draft response from partners had been prepared to Hon Minister David Parker advising that an introduction of a targeted rate would be considered by Rotorua Lakes Council as part of its 2023-24 Annual Plan process.

Items for Staff Follow Up:

· LGNZ Regional Sector meeting papers to be circulated to Councillors prior to the meetings.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/Scott

CARRIED

Decisions Required

7.2

Acting Chief Executive

Resolved

That the Regional Council:

1 Receives the report, Acting Chief Executive.

2 Appoints Chris Ingle, General Manager Integrated Catchments, as Acting Chief Executive for the period 19 December 2022 to 18 January 2023 (inclusive), during a period of leave for the Chief Executive.

von Dadelszen/Campbell

CARRIED

7.3	WITHDRAWN Bay of Plenty Regional Council Toi Moana Code of Conduct This item was withdrawn and would be presented to a future meeting of Council.

7.4

Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution

Presented by: Sir Rob McLeod - Chair, Lyndon Settle – Chief Executive and Brendon Barnes – Chief Investment Officer (all Quayside Holdings Ltd).

Cr Crosby and Cr White declared an interest in this item and withdrew to the back of Chambers.

Resolved

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

9.4

Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution Discussion

Withholding the information is necessary to protect the privacy of natural persons

48(1)(a)(i) Section 7 (2)(a)

To remain in public excluded.

2 That Sir Rob McLeod - Chair, Lyndon Settle – Chief Executive and Brendon Barnes – Chief Investment Officer (all Quayside Holdings Ltd) be permitted to stay in the public excluded section of the meeting due to their knowledge of the matter under discussion, being the report: Quayside Holdings - Proposed Directors Remuneration and Amendments to the Constitution.

Nees/Shirley

CARRIED

Public Section (Continued)

Resolutions transferred from the Public Excluded section:

Resolved

That the Regional Council:

1 Receives the report, Quayside Holdings - Proposed Directors Remuneration and amendments to the Constitution.

2 Approves the aggregate remuneration pool for Quayside Holdings Limited’s directors for 2022/23 at $475,000 (plus GST if any), being an increase from $380,209 based on six paid directors, including remuneration paid by Quayside Holdings Limited’s subsidiaries – Quayside Securities Limited and Quayside Properties Limited;

3 Approves increasing Quayside Holdings Limited’s directors’ Fees for 2022/23, including remuneration paid by Quayside Holdings Limited’s subsidiaries – Quayside Securities Limited and Quayside Properties Limited, to:

(a) Chair $130,000;

(b) Chair of Audit Committee $75,000;

(d) Three directors at $65,000 per director;

(e) Council Chief Executive $0.

Winters/Iti

CARRIED

That the Regional Council:

4 Approves that the Quayside Constitution is amended to require a minimum of seven directors, at least four of which must be independent directors.

Thompson/Nees

CARRIED

That the Regional Council:

5 Approves that the Quayside Constitution is amended to require the Chairperson to be an independent director.

Thompson/Macmillan

Division

A division was called:

For

Cr Campbell

Cr Iti

Chairman Leeder

Cr Macmillan

Cr McDonald

Cr Nees

Cr Thompson

Against

Cr Scott

Cr Shirley

Cr von Dadelszen

Cr Winters

Abstained

Cr Crosby – Conflict of interest

Cr White – Conflict of interest

Absent (due to apology): Cr Thurston

The motion was carried

6 Delegates authority to the Chief Executive to sign the Quayside Holdings Limited shareholder resolutions and any ancillary documentation required to give effect to such resolutions.

Leeder/Thompson

CARRIED

7 Transfers resolutions 1 – 6 into the Open at the conclusion of the meeting.

Nees/Thompson

CARRIED

7.5

Presentation: Quayside Holdings Ltd Quarterly Update

Presentation by Quayside - Council 14 December 2022 pdf: Objective ID A4271799

Presented by: Sir Rob McLeod - Chair, Lyndon Settle – Chief Executive, Mel Manley - Corporate Services Manager and Brendan Chief Investment Officer (all Quayside Holdings Ltd), supported by Mat Taylor – General Manager Corporate.

Key Points:

· Generally pleased with how the portfolio had performed in a challenging market

· Investment in PF Olsen Ltd had benefitted the Rotorua district, both through job growth and regional economic growth in the forestry sector

· Noted the commercial and environmental risks relating to Rangiuru, however as a strategic development it was significant for the region and several enquiries were being made regarding future investments/tenancies

· Quayside was liaising with neighbours to the Rangiuru Business Park to ensure best practice was applied from a sustainability and environmental protection perspective

· The approach at this stage with regards to mana whenua relationships with the Port was kanohi ki te kanohi to create understanding and identify mutually beneficial co-operation opportunities

· Quayside spent significant time on risk assessment and future proofing of its investments and was well prepared for the current challenges.

11.18 am – The meeting adjourned

11.45 am – The meeting reconvened.

7.6

Financial and Non-Financial Performance Report - Arotake Report: Quarter One Performance

Presented by: Kumaren Perumal – Chief Financial Officer, Mereana Toroa – Finance Support Team Lead and Olive McVicker – Corporate Performance Team Lead, supported by Kataraina O’Brien – General Manager Strategic Engagement (via Zoom).

Key Points:

· The report covered performance for the first quarter of 2022-23, as well as forecasting for the remainder of the financial year

· Noted the successful uptake of the Environmental Enhancement Fund (EEF) with requests received for $240k of the $300k budget; the commencement of the Lake Rotorua restoration; and the adoption of the Regional Transport Plan

· Ngā Tohutohu Reference Group consisted of Māori technical experts across the region

· Noted the lower than forecasted opex deficit, with the main operation expenditure variances being in passenger transport and policy and planning

· Revenue was higher than forecasted, which was mainly due to timings of insurance payments.

Items for Staff Follow Up:

· A list of the scheduled State of the Environment reports for the 2022/23 year to be made available to the Councillors.

Resolved

That the Regional Council:

1 Receives the report, Financial and Non-Financial Performance Report - Arotake Report: Quarter One Performance;

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) Confidential Bancorp Report 30 September 2022 under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as 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 and that this attachment remain in Public Excluded.

(b) Confidential Toi Moana Trust Report as at 30 September 2022 under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as 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 and that this attachment remain in Public Excluded.

Nees/Shirley

CARRIED

7.7

Review of Policy for the Appointment and Remuneration of Directors to the Boards of Council Subsidiaries

Presented by: Mat Taylor – General Manager Corporate, Gillian Payne – Principal Advisor and Fiona McTavish – Chief Executive.

Key Points/In Response to Questions:

· The review was a joint effort between Council and Quayside Holdings Ltd

· The Policy set the framework for reviewing the effectiveness of boards on a regular basis

· The Policy did not relate to Quayside Director appointments only, rather all current and future CCO appointments and aimed to create a review framework for a Board’s efficiency

· The draft Policy specified that a Councillor could not be a Director on both Quayside and the Port of Tauranga

· The Statement of Expectation and Statement of Intent process provided the opportunity for prescriptive reporting, e.g. regarding core competencies of Board candidates (Section 2.4) rather than this being set out in detail in the overarching Policy

· Section 2.9.4 of the draft Policy specified that the nomination panel must seek Council’s view on whether Te Ao Māori skills were a requirement for each position, which differed from the wording of Section 57 of the Local Government Act (LGA)

· The inclusion of the words ‘Te Ao Māori’ in Section 2.9.4 aligned with the terminology used in Council’s Impact Statement for its engagement with Māori, but reference to Section 57 of the LGA could be added for further clarity

· Council’s impact statement regarding Māori engagement referenced Te Ao Māori, which was why it had been included in Section 2.9.4

· Section 4.4 Councillor-director selection process [Port of Tauranga and its subsidiaries]: Although Council made the nomination, Quayside Holdings had the ultimate decision making power on Quayside Board appointments, which could potentially create a difficult situation if the nomination was rejected. However, the time period between submitting the Council nomination and the Quayside Board meeting would allow for feedback regarding any discrepancies.

Key Points - Members:

· ‘Te Ao Māori’ as set out in the Policy was a far more holistic concept than ‘Tikanga Māori’ and considered any reference made in the Policy should accordingly be to ‘Te Ao Māori’

· Section 4.2 should be amended to ensure there was at all times one Councillor Director included on the Port of Tauranga Board, rather than the current status of it potentially being two Independent Quayside Directors

· Considered that the Māori Engagement Statement stood independently and that it was not necessary to further reference it in Section 2.9.4

· The current convention was to appoint the Council Chairperson to the Port of Tauranga Board, which was the rationale behind the limitation that the Chairperson could not hold dual positions as a Director of the Port Board and Quayside Board (Section 2.6). However, there might be instances where, if the Chairperson changed to a Councillor already appointed as a Quayside Holdings Director, remaining at Quayside might be more valuable and it would be better to then appoint another Councillor instead to the Port Board . This would be prevented through the current limitations in Section 2.6.

Resolved

That the Regional Council:

1 Receives the report, Review of Policy for the Appointment and Remuneration of Directors to the Boards of Council Subsidiaries.

2 Adopts the updated policy titled “Appointment and Remuneration Policy for Directors of Council Organisations” subject to amendments (as set out below) made through this meeting, noting that it replaces the previous policy titled “Policy for the Appointment and Remuneration of Directors to the Boards of Council Subsidiaries (2014)”:

· S2.6 – Limitations on eligibility for some Boards: Delete Section 2.6 that the BOPRC Chairperson is not eligible to be a Director of Quayside Holdings Ltd and replace with ‘Any Councillor that is a Director of Port of Tauranga is not eligible to be a Director of Quayside Holdings Ltd’;

· S2.9.4 – Identifying skills, knowledge and experience: Add LGA S57 – Appointment of Directors text in its entirety ;

· S2.10.4 – Annual Performance Review: Amend to: ‘..and will be reported to the Chair of Council who will share the results with Council’;

· S4.2 – Composition of the Board [Port of Tauranga and its subsidiaries]: Remove wording ‘..or no more than two Quayside Holdings Directors..’.

3 Delegates to the General Manager, Corporate the power to make editorial changes to the Appointment and Remuneration Policy for Directors of Council Organisations, to reflect the direction provided in this meeting.

4 Delegates to the Chief Executive the authority to nominate for appointment, and vote on a resolution to appoint, a director of a partially owned council organisation to which Part 3 of the Council’s “Appointment and Remuneration Policy for Directors of Council Organisations” (or any substituted policy) (“Appointment Policy”) applies, except that this delegation shall not apply where Council has effective control of the Council Organisation.

Nees/Iti

CARRIED

7.8

Quayside Holdings Limited - Statement of Expectations 2023/24

Presented by: Mat Taylor – General Manager Corporate, Gillian Payne – Principal Advisor and Fiona McTavish – Chief Executive.

Cr Crosby and Cr White declared an interest in this item and abstained from discussion and voting.

Key Points:

· Staff would work with Quayside regarding the strategic value of the Tauriko landholding and report back to Council with its findings

· Council calculated its rates partly based on a 5% return on the Toi Moana Fund, which meant if the return was less than stipulated, Council would be required to look for other sources of income

· Any returns above 5% would be held for use by Council only at the end of the Toi Moana term of investment

· Council had a total of $70m invested in the Toi Moana Fund for a period of 5-7 years

· Noted that wording regarding climate change in the Statement of Expectations (SOE) was driven by Council’s Climate Change Impact Statement

Key Points - Members:

· It would not be appropriate for Quayside to get involved in the day-to-day management of the Port of Tauranga

· Expressed concern regarding the prescriptive nature of the Overall Themes section, e.g. for climate change

· Council’s Climate Emergency declaration should be front and centre of Council’s decision making

· The potential to use woodchip for biofuel supported the decision of Quayside to invest in PF Olsen (as noted during the Quayside presentation)

· Rangiuru’s current status as a strategic landholding might not be appropriate for the future and Council should have the opportunity to relinquish the land to the market, if it so chose

· Wāhi tapu sites on the Rangiuru site meant that any disposal consideration would include discussions with mana whenua

· If the SOE became too directive, Quayside could potentially prioritise some areas of societal wellbeing, e.g. climate change, over others which could have a detrimental impact overall

Resolved

That the Regional Council:

1 Receives the report, Quayside Holdings Limited - Statement of Expectations 2023/24.

2 Approves the Quayside Holdings Limited Statement of Expectations and notes that this will be sent to Quayside Holdings Limited to support the preparation of their draft Statement of Intent 2023/24 with the following comments:

Overall themes:

· Change second paragraph to read “.. Council wants to place emphasis on working with its partners, stakeholders and communities to identify opportunities…”;

· Council was interested in getting a report back from Quayside on its climate disclosure related reporting;

· Sought Quayside’s benchmarking on LGFA benchmark reporting and Environmental, Social and Governance (ESG) reporting;

Port of Tauranga:

· Council’s expectation is that Quayside does not get involved in day to day activities of the Port of Tauranga;

Strategic Land holdings

· Quayside would report back to Council the discussions and findings on the strategic status of the Tauriko landholding.

Leeder/Macmillan

CARRIED

7.9

Delegations Manual

Presented by: Mat Taylor – General Manager Corporate, Jessica Easton – Manager Legal and Commercial and Monique Brooks – Legal Counsel.

Key Points:

· Unlike previous iterations, the updated manual now included financial delegations

· The Chief Executive could delegate responsibilities under the Resource Management Act (RMA) to other authorities, e.g. as was done for lake monitoring that was delegated to Rotorua Lakes Council

· Staff with delegated authority were required to give regard to the significance of any decisions being made, including potential relationship implications, and act and report accordingly

· Financial delegation would only be implemented when the expenditure was accommodated and allowed for in the current Annual Plan/Long Term Plan.

Resolved

That the Regional Council:

1 Receives the report, Delegations Manual.

2 Revokes all existing delegations made by Council to the Chief Executive and council officers directly, except to the extent that any of those are not included in the Chief Executive’s Delegations Manual.

3 Delegates to the Chief Executive as set out in attachment 1.

4 Approves the Chief Executive’s sub-delegations contained in the Chief Executive’s Delegations Manual.

5 Delegates the powers contained in the Chief Executive’s Delegations Manual that are unable to be sub-delegated to the Chief Executive directly to the proposed delegates, being the specified powers in the Maritime Transport Act 1994, Resource Management Act 1991, Local Government (Rating) Act 2002 and Rating Valuations Act 1998.

6 Authorises the Chief Executive to approve updates to the Chief Executive’s Delegations Manual.

7 Delegates to the General Manager, Regulatory Services:

(a) The power to appoint enforcement officers under section 38 of the Resource Management Act 1991.

(b) The power to issue warrants to enforcement officers. This delegation is made pursuant to clause 32B of Schedule 7 of the Local Government Act 2002 and for avoidance of doubt is made having considered the matters under clause 32B(2) of Schedule 7 of the Local Government Act 2002.

(c) The authority to determine to take enforcement action and/or prosecute a person for committing an offence Council is empowered to enforce (including Bylaws).

8 Approves the Financial Delegations as set out in attachment 2, which includes:

(a) the power to commit Council to expenditure and approve all related documentation up to $500,000, and

(b) the power to enter into loans, investments and financial hedges up to $40 million in accordance with the Long Term Plan.

von Dadelszen/Shirley

CARRIED

7.10

Regional Safety Rescue Service – Surf Lifesaving New Zealand Funding Agreement

Presented by: Reuben Fraser – General Manager Regulatory Services and Graeme Howard – Corporate Planning Lead.

Key Points:

· The proposed funding did not represent a duplication of what was currently being funded by the Coast Guard service.

Resolved

That the Regional Council:

1 Receives the report, Regional Safety Rescue Service – Surf Lifesaving New Zealand Funding Agreement.

2 Notes the funding for 2022/23 and 2023/24 is included in the Long Term Plan 2021-2031 and that funding was allocated though a process managed by the Civil Defence Emergency Management Group Joint Committee following a request by Regional Council.

3 Delegates to the Chief Executive Chief Executive authority to sign and approve all appropriate contract documentation for the Regional Safety and Rescue Service funding agreement with Surf Lifesaving NZ for the 2022/23 and 2023/24 financial years.

Winters/Campbell

CARRIED

7.11	WITHDRAWN Project Future Proof Update – Whakatāne River Noted that this item had been withdrawn and would be deferred to a future meeting.

8. 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
9.6	Financial and Non-Financial Performance Report - Arotake Report: Quarter One Performance: Attachment 2 - Confidential Bancorp Report 30 September 2022; and Attachment 3 - Confidential Toi Moana Trust Report as at 30 September 2022 d	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.
8.2	Public Excluded Regional Council Minutes - 24 November 2022	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.3	Native Fishery Monitoring Contract	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).	On the Chief Executive's approval.
8.4	Bay of Connections Chairperson Reappointment	Withholding the information is necessary to protect the privacy of natural persons, including that of deceased natural persons.	48(1)(a)(i) Section 7 (2)(a).	On the Chief Executive's approval.

Leeder/White

CARRIED

9. Closing Karakia

A karakia was provided by Cr Te Taru White.

1.36 pm – the meeting closed.

Confirmed

Chairman Doug Leeder

Regional Council Minutes

9 February 2023

Regional Council

Open Minutes

Commencing: Thursday 9 February 2023, 9.30 am

Venue: Council Chambers, Regional House, 1 Elizabeth Street, Tauranga

Chairperson: Chairman Doug Leeder

Members: Cr Malcolm Campbell

Cr Stuart Crosby

Cr Toi Kai Rākau Iti

Cr Kat Macmillan

Cr Matemoana McDonald

Cr Ron Scott

Cr Ken Shirley

Cr Paula Thompson

Cr Lyall Thurston

Cr Andrew von Dadelszen

Cr Te Taru White

Cr Kevin Winters

Apologies: Cr Jane Nees

1. Chairman’s Opening Statement

2. Opening Karakia

A karakia was provided by Cr Lyall Thurston

3. Apologies

Resolved

That the Regional Council:

1 Accepts the apology from Cr Jane Nees tendered at the meeting, noting possible intermittent attendance via Zoom.

Leeder/Winters

CARRIED

4. Public Forum

4.1

Public Forum: Future Problem Solving - Tauranga Intermediate Presentation

Presentation - Future Problem Solving pdf - Council 9 February 2023: Objective ID A4305243

Tauranga Intermediate representatives Heidi Askin, Drew Kenny, Ryan Piddock, and Ryman Song, supported by teacher Carolyn Richardson, presented this item..

Key Points:

· Had won the national Future Problem Solving competition, which meant they qualified for the international finals in the United States

· Was actively pursuing various funding opportunities for their trip

· Local secondary schools (Tauranga Boys/Girls) would provide support, as would Tga Intermediate

· The finals took place in June 2023 and the topics would be provided on 1 March 2023, enabling the teams to prepare

· Sought funding towards travel, accommodation, registration and meals

· Tauranga City Council had contributed $5,000 towards the overall funding goal of $28,000.

Key Points - Members:

· Congratulated the students on their achievements and their roles as ambassadors for Tauranga

· Suggested approaching Air NZ for flight support, e.g. with the recently established direct flight between Auckland and New York.

Items for Staff Follow Up:

· Staff to work with Councillors to consider funding opportunities.

5. Declaration of Conflicts of Interest

There were no declarations of interest.

6. Minutes

Minutes to be Confirmed

6.1

Regional Council - 22 December 2022

Resolved

That the Regional Council:

1 Confirms the minutes of the Regional Council - 22 December 2022 as a true and correct record.

von Dadelszen/Shirley

CARRIED

7. Reports

7.1

Chairperson's Report

Chairman Leeder advised of two corrections to the report and invited questions and comments from Elected Members.

Key Points:

· Had not participated in the LGNZ Leader’s Zoom on 8 December 2022;

· Waterwheel Historic Trust event on 29 January 2023 had been deferred due to adverse weather and would be rescheduled for a future date

Key Points - Members:

· Noted the good turnout at the Lake Tarawera Ratepayers Association AGM

· Recognised the significant effort of the Ratepayers Association in pursing the establishment of the Tarawera reticulation scheme.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/von Dadelszen

CARRIED

Decisions Required

7.2

Quayside Holdings Limited - Expiry of Directors' Terms of Appointment in 2023

Mat Taylor – General Manager Corporate and Gillian Payne – Principal Advisor presented this item, supported by Fiona McTavish – Chief Executive.

Key Points:

· The membership and Chair of the Appointment Panel reflected the preference of the Quayside Board Chair

· If the Chair of Council was not available, having the Deputy Chair as an alternate meant the matter would not have to be brought back to Council for a change to the composition of the Panel.

Key Points - Members:

· Suggested appointing the Council Deputy Chair as an alternate if the Council Chair was unable to sit on the Panel, e.g. due to a conflict of interest.

Resolved

That the Regional Council:

1 Receives the report, Quayside Holdings Limited - Expiry of Directors' Terms of Appointment in 2023.

2 Appoints as members of the Nomination Panel for directors of Quayside Holdings Limited, for the period ending 31 December 2024, the following:

· Chair, and as the alternate, the Deputy Chair of the Regional Council, and

· Sue Suckling (Member of the NZ Institute of Directors), and

· Chair of the Board of Quayside Holdings Limited (QHL), and as his alternate, Dr Warren Parker (independent director of QHL).

3 Appoints Sue Suckling as Chair of the Nomination Panel for directors of Quayside Holdings Limited.

von Dadelszen/Crosby

CARRIED

7.3

Bay of Plenty Mayoral Forum Triennial Agreement 2022-2025

Fiona McTavish – Chief Executive presented this item.

Key Points:

· It was a legal requirement to establish a triennial agreement following the local election that would be endorsed by each territorial authority before 1 March 2023

· The strategic direction of the Mayoral Forum for the 2022-25 triennium would be discussed by the Mayors and Chairs.

Resolved

That the Regional Council:

1 Receives the report, Bay of Plenty Mayoral Forum Triennial Agreement 2022-2025.

2 Notes that the Local Government Act 2002 requires not later than 1 March after each triennial general election of members, all local authorities within each region to enter into a triennial agreement covering the period until the next election.

3 Endorses the draft Bay of Plenty Mayoral Forum Triennial Agreement 2022-2025.

Thurston/Campbell

CARRIED

Information Only

7.4

Project Future Proof Update – Whakatāne River

Presentation - Project Future Proof Update pdf - Council 9 February 2023: Objective ID A4310828

Chris Ingle – General Manager Integrated Catchments; and Mark Townsend – Engineering Manager presented this item.

Key Points:

· The 2017 floods had accentuated the need for a more effective flood protection for Whakatāne and supported the investment and prioritisation of Future Proof Project

· Progress had been slower than preferred due to the ongoing negotiations with all affected parties

· Recognised that a 1.7m floodwall would have a visual impact, however it would primarily be visible from the riverside towards land

· There had been long-standing communication between Regional Council and Whakatāne District Council staff regarding the proposal to ensure there were no surprises as a result of today’s presentation

· Rainfall patterns were changing to ‘heavy ended rain events’, which meant the ground was saturated as the final, higher rain volume occurred

· ‘Managed retreat’ would mean a slow retreat from the most affected areas, where engineering solutions were no longer a viable option

· Rural stopbanks/bunds would provide additional protection for affected landowners during smaller flooding events.

Key Points - Members:

· The terminology ‘100 year events’ was a misnomer and created a false sense of security for the community

· There was significant concern within the Whakatāne community regarding flooding, which emphasized the need for ongoing and well considered communication

· Noted that the communication from Regional Council on this project had increased to reach the wider community.

Items for Staff Follow Up:

· Councillors to be advised when a project update was next being presented to a Whakatāne District Council meeting.

Resolved

That the Regional Council:

1 Receives the report, Project Future Proof Update – Whakatāne River.

Leeder/White

CARRIED

7.5

BOPLASS Annual Report - 30 June 2022

Mark Le Comte – Principal Advisor Finance, Kumaren Perumal – Chief Financial Officer, supported by Fiona McTavish – Chief Executive presented this item.

Key Points - Staff:

· Recognised the significant achievements of BOPLASS in the procurement space, in particular for insurance coverage

· The Bay of Plenty councils’ Chief Executives were in discussions regarding further opportunities for region wide collaboration, with findings and recommendations to be reported back to councils once ready.

Resolved

That the Regional Council:

1 Receives the report, BOPLASS Annual Report - 30 June 2022.

Crosby/von Dadelszen

CARRIED

10.35 am – The meeting adjourned.

11.00 am – The meeting reconvened.

8. 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
8.1	Waihi Estuary Catchment - Wetland Creation Opportunity	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).	On the Chief Executive's approval.

Leeder/Thurston

CARRIED

9. Closing Karakia

A karakia was provided by Cr Te Taru White.

11.42 am – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council

Date	Meeting / Engagement	Comment
16 February	Regional Sector Group Pre-meeting – Wellington	Attended.
Regional Sector Chair’s/Mayors Dinner – Wellington	Attended.
17 February	Regional Sector Meeting – Wellington	Attended.
20 February	New Zealand Dairy Industry Awards Central Plateau Finals Preparation and briefing – Edgecumbe	Attended.
21 February	Catchup with Anne Tolley Tauranga City Council Commission Chair, James Denyer Mayor of Western Bay of Plenty District Council and the respective Chief Executives – Tauranga	Discussed topical matters for Tauranga and the Western Bay.
22 February	General Catch-up with University of Waikato Senior Deputy Vice-Chancellor Professor Alister Jones – Tauranga	Attended.
23 February	Port of Tauranga Ltd Board Meeting - Auckland	Attended.
24 February	New Zealand Dairy Industry Awards for the Central Division - Rotorua and Taupō	Participated in the Judging Panel.
1 March	Catchup with Anne Tolley Tauranga City Council Commission Chair and James Denyer Mayor of Western Bay of Plenty District Council – Tauranga	Attended.
Quayside Group Board Strategy Day – Tauranga	Attended.
Bay of Plenty Regional Council meeting with Minister Hon Michael Wood – Tauranga	Discussed issues within his transport, immigration and workplace relations and safety portfolios.
2 March	Environment Select Committee presentation of submission for Te Uru Kahika – Videoconference	Verbal submission on the Natural and Built Environment Bill and Spatial Planning Bill.
3 March	Bay of Plenty Ballance Farm Environment Awards – Mount Maunganui	Attended.
New Zealand Dairy Industry Central Plateau Awards Dinner – Rotorua	Attended.



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Gillian Payne, Principal Advisor and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the draft Statements of Intent for 2023-2026 for the Quayside Group and Half Yearly Reports for Quayside Group, and Toi Moana Trust.

Quayside Group draft Statements of Intent for 2023-2026 and Half Yearly Reports

Executive Summary

Quayside Holdings Limited (QHL) has delivered a draft Statement of Intent (SOI) for the Quayside Group, for 2023-2026, incorporating QHL, Toi Moana Trust and other QHL subsidiaries. It sets out objectives, the nature and scope of activities, performance targets and financial forecasts for the next three financial years.

QHL has provided Council with Half Yearly Reports for Quayside Group, for the period ending 31 December 2022 and for Toi Moana Trust (TMT).

Ordinarily, the Chair of QHL would attend this meeting to present the draft Statements of Intent and Half Yearly Report and answer any questions, but that is not possible given his prior commitments and the Council meeting cycle this year.

Arrangements will be made for the presentation and discussion to occur at a future meeting to seek feedback from Council on the draft SOIs. Formal responses to the SOIs would be approved by the BOPRC Chair before it is sent to QHL.

Recommendations

That the Regional Council:

1 Receives the report, Quayside Group draft Statements of Intent for 2023-2026 and Half Yearly Reports.

2 Notes that Council direction will be sought at a future meeting on any Council response

3 Delegates authority to Chairman Leeder to approve any response to the draft Statements of Intent 2023-2026 for the Quayside Group, noting that this is to enable Council and Quayside Holdings Limited to meet statutory timeframes for the process.

1. Introduction

Quayside Holdings Limited (QHL) is the ‘investment arm’ of Bay of Plenty Regional Council and is a wholly-owned Council subsidiary. QHL manages Council’s 54% shareholding in the Port of Tauranga, other commercial ventures and manages the Toi Moana Trust (TMT), an investment fund, on behalf of Council.

QHL 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 the SOI. Every Council Controlled Organisation (CCO) must prepare and adopt a SOI, noting that a SOI may include and apply to two or more related CCOs, as provided in LGA s64(3)(b).

In addition to the SOI, 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. Council approved a Statement of Expectations at its meeting on 14 December 2022.

As a brief summary, the process set in LGA Schedule 8 involves:

1. CCO Board delivers a draft SOI by 1 March. (completed)

2. The shareholders to deliver any comments by 1 May

3. The CCO Board considers comments

4. The CCO Board delivers the completed Final SOI 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 SOI. 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 resolution from their shareholders.

1.2 Alignment with Strategic Framework

A Vibrant Region	We work with and connect the right people to create a prosperous region and economy.
	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We look to partnerships for best outcomes.
	We deliver value to our ratepayers and our customers.

QHL provides Council with arms-length commercial and financial expertise to optimise the value of its investments. It also promotes regional benefit through some of its investments and through the dividend to Council that provides non-rate revenue to fund its activities.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Medium - Positive

The dividend from QHL enables rates to be reduced. The dividend and capital growth of the investment portfolio helps provide intergeneration equity i.e. providing current revenue while preserving the ability of the investment portfolio to provide income in the future.

2. Reports and Draft Statements of Intent

2.1 Draft Statements of Intent 2023-2026 and interim reports

In December 2022 Council approved a Statement of Expectations for QHL and TMT (Attachment 1) which was sent to QHL in late December 2022.

In response, QHL has delivered to Council:

· a cover letter and draft Statement of Intent for the Quayside Group, Attachments 2 and 3

· Quayside Group Half Yearly Report for the period ending 31 December 2022, Attachment 4

· TMT Quarterly Report dated 31 December 2022. Attachment 5 is the report, excluding the portfolio details, which are commercially sensitive.

Quayside Group reported an operating profit of $25.4 million after tax for the first half of the year, which excludes distributions from the Port of Tauranga Group. Net dividends paid to Council during the half year were $21.2 million, in line with the current Statement of Intent.

TMT’s market value on 31 December 2022 was $71.7 million and the portfolio’s return on market value was 4.68%. Council’s investments in TMT totals $70 million.

2.2 Process for Council’s consideration

Arrangements have been made for the QHL Chair’s presentation and discussion to occur at a future meeting. Prior to the meeting, staff will compare Council’s SOE to the draft SOI and report on any material differences.

Based on the discussion and Council’s subsequent direction, staff will draft a response to QHL for final approval by the Chair. This will enable a response to be sent to QHL by 1 May 2023.

3. Considerations

3.1 Risks and Mitigations

The major risk is potential misalignment between the final SOI for QHL and the Council’s budget, which is currently under development. Council can exercise its influence to mitigate this risk, through providing a Statement of Expectations in December 2022, and feedback on the draft SOI.

As a last resort, Council can also require changes to the final SOI as described in the legislative framework part of this report.

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 implications for Māori are the same as for the public.

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.

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.

Final budget implications will be refined and discussed as part of the Council’s Annual Plan 2023/24 deliberations, and financial briefings with QHL.

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.

QHL’s Half Year Report for the period ending 31 December 2022 has been published on QHL’s website and will also be published on Council’s website.

Following the Council discussion and direction, staff will liaise with QHL and seek the Chair’s approval for any required feedback on QHL’s Draft Statement of Intent 2022/23. This will be sent by 1 May 2023.

Attachments

Attachment 1 - Statement of Expectations 2023-2026 Quayside Holdings Limited and Toi Moana Trust ⇩

Attachment 2 - Draft Quayside Group Statement of Intent 2023/24 ⇩

Attachment 3 - Covering Letter for Draft Quaysude Group Statement of Intent 2023/24 ⇩

Attachment 4 - Quayside Group Half Yearly Report for period ending 31 December 2022 ⇩

Attachment 5 - Toi Moana Trust - Quarterly update - December 2022 - public agenda version ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Gillian Payne, Principal Advisor and Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive the Local Government Funding Agency Limited’s draft Statement of Intent 2023-2026 and Half Yearly report.

Local Government Funding Agency Limited - draft Statement of Intent 2023-2026 and Half Yearly report

Executive Summary

The Local Government Funding Agency Limited (LGFA) has delivered its draft Statement of Intent 2023-2026 (SOI) which sets out the company’s objectives, the nature and scope of its activities, performance targets and financial forecasts for the next three financial years.

The LGFA has also delivered its Half Yearly Report for the period ended 31 December 2022.

Recommendations

That the Regional Council:

1 Receives the report, Local Government Funding Agency Limited - draft Statement of Intent 2023-2026 and Half Yearly report for the period ended 31 December 2022.

2 Agrees that no formal feedback is required on the Local Government Funding Agency Limited’s draft Statement of Intent 2023-2026.

1. Introduction

The LGFA has delivered its draft SOI to shareholders, in response to the Statement of Expectation 2023 (SOE) which was compiled and approved by the LGFA Shareholders’ Council in November 2022. Council influenced the SOE through its membership of the Shareholders’ Council.

Council now has the option to provide comments for the LGFA Board to consider as part of preparing the final SOI. The LGFA Half-yearly Report is provided for information.

1.1 Legislative Framework

The planning and reporting requirements for Council Controlled Organisations (CCOs) are set in the Local Government Act.

Each CCO must deliver a Half Yearly report to its shareholders and this report must be published on an internet site maintained by or on behalf of the council.

Each CCO must deliver a draft SOI to its shareholders on or before 1 March in the year preceding the financial year to which the draft Statement of Intent relates. Council may provide feedback on the draft SOI to the CCO on or before 1 May and the final Statement of Intent must be delivered before 30 June. The shareholders may, by written notice, extend these timeframes by up to one month.

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.

The LGFA provides access to low-cost debt financing and manages market debt issuance for councils.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

Low - Positive

The lower cost of borrowing available through the LGFA provides savings for Council, compared to other arrangements. This helps manage the level of rates, particularly for activities with higher reliance on debt, for example drainage schemes.

2. Half Yearly report for the period ended 31 December 2022

LGFA has delivered a covering letter and its Half Yearly report for the period ended 31 December 2022 (Attachments 1 and 2). Key points from the Half Yearly report include:

• LGFA made a Net Operating Profit for the six-month period of $1.1 million. LGFA has $18.14 billion of assets and Shareholder Equity of $104.45 million as at 31 December 2022.

• The company met 16 out of its 17 performance targets for the period ending 31 December 2022, missing its target for carbon reduction.

• Climate Action Loans were launched in December 2022. These loans provide a discounted loan rate to councils with a Greenhouse Gas Emission Reduction Plan in place and who are meeting their targets.

Draft Statement of Intent 2023-2026

In November 2022 the LGFA Shareholders’ Council approved a Statement of Expectations 2023-26 (SOE) to guide the LGFA Board (Attachment 3). In response, LGFA has provided a covering letter and draft SOI (Attachments 4 and 5 respectively). In a letter to the Shareholders’ Council, LGFA has highlighted aspects of the draft SOI that respond to the direction given in the SOE (Attachment 6).

Key assumptions underpinning the draft SOI include:

• a modest narrowing in lending margins as more councils and CCOs take up the Climate Action Loan (CAL) product and LGFA undertakes more Green, Social and Sustainability (GSS) lending to councils and CCOs.

• no further improvement in the credit quality of the sector given the high starting point with an average credit rating of “AA” on the council lending book.

• no implications for LGFA from the Three Waters Reform Programme. LGFA is awaiting further information relating to the establishment of the Water Services Entities (WSEs). The final SOI in June 2023 will be updated from this draft to incorporate any future announcements/legislation relating to the Three Waters Reform Programme and will include a statement if there have been any material changes to our forecast assumptions.

Projected Net Operating Gain is expected to be $9.5 million, $8.3 million and $7.6 million for the next three years.

3. Considerations

3.1 Risks and Mitigations

There are no significant risks associated with this matter/subject/project/initiative. Council is a guarantor of LGFA loans, however, the risk of default by other councils is minimal.

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. The LGFA provides Green, Social and Sustainable Loans and is developing reporting frameworks to meet its wider environmental obligations.

3.3 Implications for Māori

Impacts for Māori are the same as impacts for 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.

The LGFA Half Yearly report and final Statement of Intent 2023-26 are required to be published on Council’s website. This is done through a link to the LGFA webpage which holds the information.

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.

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

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 continue to work with the LGFA Shareholders’ Council to promote its interests and manage any risks related to its shareholding in LGFA.

Attachments

Attachment 1 - LGFA Cover Letter for Half Yearly Report to December 2022 ⇩

Attachment 2 - LGFA Half Yearly Report to December 2022 ⇩

Attachment 3 - LGFA Statement of Expectations 2023-2026 from LGFA Shareholders' Council ⇩

Attachment 4 - LGFA Cover Letter for Draft Statement of Intent 2023-2026 ⇩

Attachment 5 - LGFA Draft Statement of Intent 2023-2026 ⇩

Attachment 6 - Letter to Shareholders' Council regarding LGFA draft 2023-2026 SOI ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance; Gillian Payne, Principal Advisor and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to receive Bay of Plenty Local Authority Shared Services Limited’s draft Statement of Intent 2023-2026 and Half Yearly report.

Bay of Plenty Local Authority Shared Service Half Yearly Report and Draft Statement of Intent

Executive Summary

Bay of Plenty Local Authority Shared Services Limited (BOPLASS) has delivered its draft Statement of Intent 2023-2026 (SOI) which sets out the company’s objectives, the nature and scope of its activities, performance targets and financial forecasts for the next three financial years.

BOPLASS has also delivered its Half Yearly Report for the period ended 31 December 2022.

Recommendations

That the Regional Council:

1 Receives the report, Bay of Plenty Local Authority Shared Service Half Yearly Report and Draft Statement of Intent.

2 Agrees that no formal feedback is required on Bay of Plenty Local Authority Shared Services Limited’s draft Statement of Intent 2023-2026.

1. Introduction

BOPLASS has delivered its draft SOI to shareholders. Council influenced the SOI through its membership of the Board.

Council now has the option to provide comments for the BOPLASS Board to consider as part of preparing the final SOI. The BOPLASS Half-yearly Report is provided for information.

1.1 Legislative Framework

The planning and reporting requirements for Council Controlled Organisations (CCOs) are set in the Local Government Act.

Each CCO must deliver a Half Yearly report to its shareholders and this report must be published on an internet site maintained by or on behalf of the council.

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.

BOPLASS provides shared services across multiple Councils.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

Low - Positive

BOPLASS provides access to economies of scale and cost savings.

2. Half Yearly report for the period ended 31 December 2022

BOPLASS has delivered its Half Yearly report for the period ended 31 December 2022 (Attachments 1). Key points from the Half Yearly report include:

• The Board believes that it is on track to achieve all six SOI targets.

• BOPLASS is tracking slightly ahead of budget.

3. Draft Statement of Intent 2023-2026

BOPLASS has provided its draft SOI (Attachment 2 and 5). The Chair of the BOPLASS Board will present at the workshop via video conference.

BOPLASS has proposed retaining the current six performance targets. BOPLASS does not intend to make a profit and operates on a cost recovery basis for joint projects.

4. Considerations

4.1 Risks and Mitigations

There are no significant risks associated with this matter.

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

Impacts for Māori are the same as impacts for 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].

The BOPLASS Half Yearly report and final Statement of Intent 2023-26 are required to be published on Council’s website. This is done through a link to the BOPLASS webpage which holds the information.

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.

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.

Staff will continue to work with BOPLASS on areas for potential efficiency gains.

Attachments

Attachment 1 - Bay of Plenty Local Authority Shared Service Half Yearly Report to 31 December 2022 ⇩

Attachment 2 - Bay of Plenty Local Authority Shared Services Draft Statement of Intent 2023-2026 ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance; Gillian Payne, Principal Advisor and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To adopt the Statement of Proposal for changes to the Fees and Charges Policy for public consultation.

Statement of Proposal - Fees and Charges Policy

Executive Summary

As part of developing the Annual Plan 2023/24, assumptions around budgets and revenue targets have been updated. Cost pressures on activities that are part funded by fees and charges has resulted in a requirement to increase most fees and charges by 8.1%. Fees and charges are used to partially recover the cost of services that have a private benefit and the appropriate funding ratios are specified in the Revenue and Financing Policy.

Amendments to the Fees and Charges Policy require a Special Consultative Procedure including being publicly available for submissions and the chance for submitters to present their views verbally or via sign language.

Submitters who wish to be heard by Councillors will attend the Hearings on 9 May 2023, and Councillors will consider submissions as part of their overall Annual Plan Deliberations on 25 May 2023 before adopting the final Fees and Charges Policy on 29 June 2023.

Recommendations

That the Regional Council:

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

2 Adopts the Statement of Proposal for Changes to the Fees and Charges Policy and Draft Fees and Charges Policy for public consultation.

3 Delegates to the Chief Executive to make any minor editorial changes required to the Statement of Proposal.

1. Introduction

The Fees and Charges Policy has no specific requirement to be updated annually. Most charges are for Resource Management Act s36 administrative charges which a local authority may set “from time to time” after following the Local Government Act Special Consultative Procedure. The draft Annual Plan 2023/24 financial estimates includes fees and charges revenue in accordance with Council’s Revenue and Financing Policy.

1.1 Legislative Framework

Charges set under the Resource Management Act s36 may only be set after using the Special Consultative Procedure set out in the Local Government Act (2002) s83.

1.2 Alignment with Strategic Framework

A Healthy Environment	We manage our natural resources effectively through regulation, education and action.
Freshwater for Life	Good decision making is supported through improving knowledge of our water resources.
Safe and Resilient Communities
A Vibrant Region
The Way We Work

The Fees and Charges Policy contributes indirectly to A Healthy Environment and Freshwater for Life outcomes, by setting fees that partly pay for the cost of activities that deliver these outcomes.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

þ Environmental

Low - Positive

¨ Cultural

¨ Social

¨ Economic

The Fees and Charges Policy contributes indirectly to Environmental well-being by setting fees that partly pay for the cost of activities that deliver this well-being.

2. Fees and Charges Policy

Cost pressures on activities that are part funded by Fees and Charges has resulted in a requirement to increase most Fees and Charges by 8.1%. This increase is required to maintain the funding ratios specified in the Revenue and Financing Policy. Council’s Fees and Charges recover part of Council’s costs of providing services, and do not result in a profit.

The items that remain unchanged from last year are deposits and Port Charges, as projected shipping volumes are expected to generate sufficient revenue to cover the costs recovery share of the Maritime Activity, as specified in the Revenue and Financing Policy.

The alternative to increasing fees is to cover a greater share of costs from general funds.

A Statement of Proposal for the proposed amendment has been prepared (attachment 1) as well as a full draft Fees and Charges Policy (attachment 2).

3. Considerations

3.1 Risks and Mitigations

The current cost of living pressure means that any increase in fees or rates could be met with criticism. The Revenue and Financing Policy specifies how each activity is to be funded with fees and charges used to recover service delivery costs that provide private benefit and rates used to fund services that provide wider public benefit. However, the increased Fees and Charges are the result of maintaining the same proportion of costs between individuals (through fees and charges) and the wider community (through rates).

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

Implications for Māori are the same as the general community.

3.4 Community Engagement

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and /or proposed decisions.

Final versions of the Statement of Proposal and Draft Fees and Charges Policy will be uploaded to Council’s Participate website. Letters will be sent to all consent holders as changes to fees and charges will directly affect them.

The intended consultation period is from 20 March 2023 to 20 April 23, with hearings on 9 May 2023.

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.

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

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 commence the Special Consultative Procedure including communication with all consent holders. Council will be requested to hear any submitters that choose to present their view verbally or by sign language on 9 May 2023 before deliberating on all submissions on 25 May 2023 and adopting the final Fees and Charges Policy on 29 June 2023.

Attachments

Attachment 1 - Statement of Proposal: Fees and Charges Policy ⇩

Attachment 2 - Draft Fees and Charges Policy for Consultation ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Kumaren Perumal, Chief Financial Officer and Angela Foster, Communications & Engagement Manager
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To confirm Council will not formally consult on the 2023/24 Draft Annual Plan but engage with the community regarding the impact of higher than expected costs.

2023/24 Draft Annual Plan - Engagement

Executive Summary

Council is asked to confirm the direction given at recent Annual Plan workshops that consultation on the 2023/24 Draft Annual Plan (draft Annual Plan) is not necessary as there are no matters that would benefit from consultation.

Costs in the Annual Plan are higher than expected in the 2021 – 2031 Long Term Plan (LTP) due to higher inflation and interest rates. However, the work programme is consistent with year three of the LTP, and the budgeted variances are within the thresholds identified in the Council’s Significance and Engagement Policy.

It is proposed that Council engage with the community regarding the Annual Plan and rating impacts. A communications plan has been developed that will provide engagement opportunities for Council with the community.

Recommendations

That the Regional Council:

1 Receives the report, 2023/24 Draft Annual Plan - Engagement.

2 Confirms that consultation is not required on the 2023/24 Draft Annual Plan.

3 Directs that public and targeted engagement be undertaken to communicate the impacts of the 2023/24 Annual Plan, and inform the community of the start of the upcoming review of the Long Term Plan.

1. Introduction

The draft Annual Plan is based on year three of Council’s LTP. The draft work programme is consistent with the LTP and costs have been updated to reflect the increase in inflation and interest rates.

At the draft Annual Plan workshop on 23 February 2023, Council indicated that there were no significant items that would trigger the need for consultation in accordance with the Significance and Engagement Policy. There are likely to be some material changes for some targeted rate ratepayers. Council indicated the desire to engage with these ratepayers.

1.1 Legislative Framework

The Local Government Act sections 76AA requires Council to adopt a Significance and Engagement Policy, the purpose being to identify the degree of significance attached to decisions and the extent of public engagement required.

The implications of the draft Annual Plan do not exceed the thresholds identified in the Significance and Engagement Policy adopted by Council in the LTP. As a result, section 95(2A) of the Local Government Act 2002 applies, which means Council is not required to formally consult.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region
The Way We Work	We deliver value to our ratepayers and our customers.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

Low - Positive

¨ Economic

By deciding not to consult on the draft Annual Plan, Council is acting within the thresholds of the Significance and Engagement Policy and the LTP. In taking a communication approach targeted to those most affected, Council can act appropriately.

2. Annual Plan Engagement

2.1 Consultation vs Engagement

The option to consider consultation on the draft Annual Plan was considered at the Council workshop held 23 February 2023. The thresholds for consultation were not triggered as:

- The work programme is consistent with year three of the 2021 – 2031 LTP

- Budget variances are not significant in terms of the Significance and Engagement Policy

- Council has not identified any alternative options for consultation.

It is important that the community and all stakeholders are kept informed and know that communication lines are open with elected members. To address this, an Annual Plan Communications and Engagement Plan has been developed to identify the engagement approach and will be implemented once the decision not to consult is confirmed.

This approach includes a variety of communication tools including:

· Social media posts

· General campaign – newsletters, Around the Rohe (monthly Council news update in local papers)

· Information resources at events – information available to elected members and staff at events to enable conversations about the Annual Plan

· Direct outreach to most affected targeted ratepayers.

3. Considerations

3.1 Risks and Mitigations

There are no direct risk implications arising from this report.

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

There are no implications for Māori arising from this report.

3.4 Community Engagement

INFORM

Whakamōhio

To provide affected communities with balanced and objective information to assist them in understanding the problems, alternatives and/or solutions.

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.

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

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.

Following this meeting the community engagement approach will be implemented.



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance and Kumaren Perumal, Chief Financial Officer
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	For Council to authorise the Chief Executive to execute refinancing for $45 million of borrowing that matures on 15 April 2023.

Refinancing Council Borrowing

Executive Summary

Council has $45 million of borrowing from the Local Government Funding Agency Limited (LGFA) that matures on 15 April 2023. The total amount is required to be refinanced and Council’s external Treasury Advisor has provided a draft Funding Strategy in support of this transaction.

The Chief Executive’s daily transaction limit is $40 million. It is recommended that Council authorises the Chief Executive to execute the refinancing transaction.

Recommendations

That the Regional Council:

1 Receives the report, Refinancing Council Borrowing.

2 Authorises the Chief Executive to refinance $45 million of borrowing that matures on 15 April 2023 and complete any funds transfers associated with this transaction, in the general course of business.

3 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) Draft Bancorp Funding Strategy under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as 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 and that this attachment remain in Public Excluded.

1. Introduction

Council has $45 million of borrowing from the LGFA that matures on 15 April 2023. The total amount is required to be refinanced and it exceeds the Chief Executive’s delegation.

1.1 Alignment with Strategic Framework

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

Borrowing is used to finance capital projects which indirectly supports all community outcomes.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Borrowing is used to finance capital projects which indirectly supports all well-beings.

2. Refinancing borrowing maturing on 15 April 2023

Council has $45 million of borrowing from the LGFA that matures on 15 April 2023. The total amount is required to be refinanced.

Bancorp, Council’s Treasury Advisor has prepared a draft Funding Strategy in support of the refinancing transaction (attachment 1). Interest rates have been very volatile and the final terms will be confirmed closer to the date of the transaction. At this stage, consideration is being given to:

· The portion of the $45 million to be placed on the recommended one and two year terms. At least $11 million will be placed on a one-year term to enable future refinancing in April 2024 to remain compliant with the interest rate risk management limits set in the Treasury Policy.

· Available fixed interest rates compared to projected floating interest rates and implied forward interest rates.

Council’s core borrowing will remain at $137.4 million following this refinancing, which is less than budgeted in Long Term Plan 2021-2031. Based on current estimates, the average cost of Council’s borrowing is expected to increase from 2.1% to approximately 3.25%. This is offset by higher returns on Council’s investments and cash holdings. All of Council’s other core borrowings are on fixed rates that mature between 2024 and 2029 which mitigates the impacts of interest rate changes.

The Chief Executive’s daily transaction limit is $40 million. It is recommended that Council authorise the Chief Executive to execute the refinancing transaction.

There have been recent instances where borrowing rates from the Local Government Funding Agency were lower than bank term deposit rates for the same term. Staff are actively monitoring opportunities to pre-fund future capital expenditure that are advantageous and comply with the Treasury Policy.

3. Considerations

3.1 Risks and Mitigations

Council has had increased interest costs and revenue from rising interest rates. Overall Council makes a net gain from its treasury operations.

Council’s Treasury Policy sets prudential limits and interest rate hedging requirements to manage financial 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 implications for Māori are the same as for the general community.

3.4 Community Engagement

Engagement with the community is not required as the recommended proposal / decision

Any impacts that affect ratepayers will be communicated along with related information in Annual Plan 2023/24 and Rates Assessment/Invoices.

3.5 Financial Implications

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

Council has had increased interest costs and revenue from increasing interest rates. Overall Council makes a net gain from its treasury operations.

4. Next Steps

Bancorp will prepare final funding advice closer to the date of the refinancing transaction. The Chief Executive will approve the preferred transaction and execute all required legal documents.

Staff will consider pre-funding opportunities and will execute applicable financing arrangements in accordance with the Treasury Policy and Delegations Manual.

Attachments

Attachment 1 - Draft Bancorp Funding Strategy (Public Excluded) ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Karlo Keogh, Senior Management Accountant and Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To provide financial and non-financial results for the six months ended 31 December 2022.

Financial and Non Financial Performance Report - Arotake Report: Half Year Performance

Executive Summary

The Arotake report summarises council’s performance for the period 1 July 2022 to 31 December 2022. The report includes:

· Service delivery summary

· Financial summary

· Corporate summary

Recommendations

That the Regional Council:

1 Receives the report, Financial and Non Financial Performance Report - Arotake Report: Half Year Performance.

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 attachment:

(a) CONFIDENTIAL Bancorp Report December 2022 under Section 48(1)(a)(i) Section 7 (2)(b)(ii) as 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 and that this attachment remain in Public Excluded.

1. Introduction

This report provides an overview of Council’s performance for the six months ended 31 December 2022.

The report has been included as Attachment 1 to this report and includes the following:

· Highlights for the quarter, including progress against our three impact areas of climate change, partnerships with Māori, and community engagement.

· Service delivery performance results

· Financial performance, including operating and capital expenditure, key budget variance analysis, forecast reserves and an update on Treasury performance, including investments and borrowings

· Staff headcount, full time employee (FTE) information

· Health and safety information

1.1 Alignment with Strategic Framework

The Way We Work

We deliver value to our ratepayers and our customers.

The Arotake report ensures Council’s accountability, and thus the delivery of value to ratepayers and customers.

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

¨ Economic

In providing information to the public about Council’s performance, the Arotake report primarily contributes to social wellbeing in creating a well-informed local electorate.

2. Highlights

2.1 Climate Change

Bay of Plenty (BOP) Community Carbon Footprint – BOPRC commissioned AECOM NZ Ltd to assist in the development of community-scale greenhouse gas footprints for the Bay of Plenty for the three years 2018/19 to 2020/21. The total gross emissions in the BOP have increased 12% between 2015/16 and 2020/21. During this same period the region’s population has increased by 17%. This means the per capita gross emissions have decreased by 5%

Tourism Bay of Plenty Low Carbon Programme focuses on assisting tourism operators move to a more sustainable tourism sector. The second tranche of local tourism operators graduated from the 12-week ‘Green Room’ programme.

An interactive climate change mapping tool has been developed by BOPRC. This online mapping tool displays climate change projections for the Bay of Plenty for 2040 and 2090. The tool shows climate change projections for the Bay of Plenty and how these changes are affected by efforts to reduce carbon emissions.

Wetland carbon sequestration study mapping has been completed. This is part of a Climate Change Action Plan project to explore the potential of Blue Carbon in the region and will support future work to validate local carbon sequestration rates of saltmarsh.

2.2 Partnerships with Māori

He Toka tū moana mō Maketū (Maketū Climate Change Adaption Plan) this was developed by Maketū Iwi Collective and the Maketū community. This plan will ensure the Maketū community is prepared for, can adapt to, and will be resilient to a changing climate.

The Tarawera Awa Restoration Strategy Group held an informal whakawhanaungatanga hui in December 2022 for a high-level discussion on roles and responsibilities. This group has recently been established to support, coordinate, and promote the integrated restoration of the mauri of the Tarawera River catchment.

2.3 Community Participation

Flaxroots Forum hosted Open Day events in October and November. These events were to acknowledge the work volunteers do across the rohe and to encourage volunteers to network, showcase their own work, share ideas and learn from one another.

The Youth Engagement Plan was adopted in June 2022 to increase opportunities for youth. One of the key deliverables was to identify career pathways for young people. As a result, Council attended the Canvas Careers Expo in Tauranga and Edgecumbe Careers evening to highlight the work of Toi Moana to approximately 3000 rangatahi.

Participatory budgeting is a funding approach where community groups propose projects which are screened by staff and funding is allocated by the public. There were a total of 18 Participatory budgeting funding recipients, of which 14 have completed their projects as planned. The four remaining projects are to be completed early in 2023, as they have been impacted by delays due to supply chain issues, weather, or situations outside the projects control.

2.4 Service Delivery Highlights

· Customer satisfaction with the Resource Consent process is 88%. This exceeds the target of 84%.

· All urgent complaints made to the pollution hotline responded to within 12 hours.

3. Financial Performance

For the six months ending 31 December 2022, Council is forecasting a year end operating deficit of $11.74 million, which is $3.09 million lower than budgeted. The reduction is due to forecast operating revenue being $0.69 million higher than originally budgeted and forecast operating expenditure being $2.4m lower than planned.

Council is forecasting capital expenditure of $34.6 million. This is $0.26 million higher than originally budgeted due to capital projects being carried forward from 2021/22 and anticipated for completion during this financial year.

Further deliverability assessments have been undertaken for each of the significant capital projects for 2022/23, with a reduced capital expenditure profile expected to be reported at your next detailed financial briefing.

3.1 Treasury

Our total investment portfolio is $228.9 million comprising term deposits $15 million, call accounts / working capital $88.8 million, Toi Moana Trust $70 million, Quayside (on-lend) $55.1 million.

Council has borrowed $192.5 million from Local Government Funding Agency Limited with $55.1 million on-lent to Quayside. The remaining $137.4 million has been borrowed to fund capital expenditure.

Confidential Attachment 2 Bancorp Monthly Treasury Report December 2022 provides further details of Council’s treasury performance.

4. Considerations

4.1 Risks and Mitigations

There are no direct risk implications arising from this report.

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 implications for Māori arising from this report.

4.4 Community Engagement

Engagement with the community is not required.

4.5 Financial Implications

Staff are updating the draft financial estimates for the 2023/24 financial year as part of the development of the Draft Annual Plan 2023/24. This will incorporate anticipated impacts of high inflation, the outcome of a deliverability review of the capital works programme and the impact of 2022/23 financial forecasts on reserve balances.

5. Next Steps

Following this Council meeting, the Arotake report will be published on Council’s website.

Attachments

Attachment 1 - Arotake Tuarua 2022-2023 Q2 ⇩

Attachment 2 - CONFIDENTIAL Bancorp Report December 2022 (Public Excluded) ⇩



Report To:	Regional Council
Meeting Date:	16 March 2023
Report Writer:	Hemi Barsdell, Asset Management Specialist
Report Authoriser:	Chris Ingle, General Manager, Integrated Catchments
Purpose:	To inform Council about cycleway proposals on BOPRC managed stopbanks

Cycleways on BOPRC Managed Stopbanks in the Eastern Bay of Plenty

Executive Summary

Whakatane District Council (WDC) has a long-term vision to establish a connected cycleway network across the eastern Bay of Plenty and has recently received Government funding to commence cycleway construction.

The funding relates to construction of three cycleways:

1. Rangitāiki Awa Trail from Edgecumbe to Thornton (10 km length),

2. Whakatane Urban Cycleway from the Awatapu Lagoon to Trident High School (2 km length),

3. Kope Canal Cycleway from the Shaw Road subdivision to Keepa Road (2km length)

WDC proposes that the cycleways are situated largely on BOPRC managed stopbanks. BOPRC staff are supportive in principle of WDC’s proposals and are developing an agreement to account for BOPRC interests that will enable the cycleways to operate in an appropriate manner that recognises the primary purpose of the stopbank structures.

WDC are in the early stages of stakeholder engagement and hope to commence construction of the three funded cycleways in September 2023.

Recommendations

That the Regional Council:

1 Receives the report, Cycleways on BOPRC Managed Stopbanks in the Eastern Bay of Plenty.

1. Introduction

Rivers and Drainage staff were recently advised by Whakatāne District Council (WDC) that they received central government funding to establish three cycleways in the eastern Bay of Plenty.

1. The Rangitāiki Awa Trail will connect Edgecumbe township with Thornton, enabling safer passage for residents and visitors to the coast.

2. The Whakatāne Urban Cycleway will begin at the Awatapu Lagoon outlet and end adjacent to Trident High School, providing further off road opportunity for cyclists in Whakatane.

3. The Kope Canal Cycleway will provide safer commuter and recreational access between the Shaw Road subdivision and Whakatāne township.

WDC staff continue to work through a number of key factors prior to track construction, including; consultation with iwi/hapu, land owners, neighbours and stakeholders; detailed track design and route; Flood Protection and Drainage Bylaw application; communication planning.

Rivers and Drainage staff support the WDC cycleway proposals in principle and recognise the social and economic opportunities for our communities. An agreement between WDC and BOPRC is proposed that will account for BOPRC interests as Rivers and Drainage scheme managers while enabling the cycleways in an agreed manner that ensures the primary purpose of the stopbanks is recognised and provided for and stopbank maintenance and upgrade activity is given priority.

The three funded tracks are part of a longer-term WDC vision for a comprehensive cycleway network across the eastern Bay of Plenty. WDC intend to continue seeking funding and working with iwi/hapū and all interested parties to enable further cycleway options.

1.1 Legislative Framework

Soil Conservation and Rivers Control Act 1941 and Reserves Act 1977

The cycleway route is likely to traverse land set aside as reserve. Some of this land is held by BOPRC as administering body under the Reserves Act 1977 and the Soil Conservation and Rivers Control Act 1941. Where land is held as reserve, BOPRC has obligations to manage the land in accordance with the purpose for which it is held (soil conservation & river control) and in accord with the relevant legislation.

Hosting cycleways on these reserves is not inconsistent with the purpose for which the land is held, provided we have formal agreements with WDC (refer 2.4 below) that prioritise the importance of the asset’s flood protection function; and reserve our rights to act in the best interest of that purpose/function.

Flood Protection and Drainage Bylaws 2020

The purpose of the Bylaws is to provide a regulatory framework to protect and control flood protection and drainage assets managed by, or under the control of BOPRC. The Bylaws apply to flood protection and drainage assets irrespective of land tenure.

WDC will need to apply for a Bylaw authority to construct the cycleways. A formal application has not been received but staff have recently been in consultation about track routes and design.

Bylaw authority is not a substitute for landowner agreement, and WDC will need to seek that approval independent of the Bylaw authority process.

1.2 Alignment with Strategic Framework

A Vibrant Region

We work with and connect the right people to create a prosperous region and economy.

Safe and Resilient Communities

We support community safety through flood protection and navigation safety.

We provide systems and information to increase understanding of natural hazard risks and climate change impacts.

Working with and connecting the right people to create a prosperous region and economy

Eastern Bay of Plenty community groups have previously lobbied WDC, BOPRC and government agencies to establish cycleways in the eastern Bay of Plenty. The current WDC proposals have arisen from this continued community effort and seek to encourage social and economic wellbeing in our communities.

Improved ability to inspect stopbanks

Stopbanks can become inaccessible to vehicles during wet periods. This can make stopbank assessments, particularly in flood situations, more difficult and time consuming. The establishment of cycleways can enable all weather vehicle access.

Enhanced surveillance of flood protection asset condition

Increased public access to stopbanks will assist BOPRC with the surveillance of flood protection asset condition. Issues with stopbank integrity can develop quickly from matters such as flooding, people’s activities, rabbit infestations and large trees being uprooted. Increased surveillance from the public will mean issues such as these are rectified quicker.

Opportunity for engagement about flood protection

The Rangitāiki River Scheme Review recommended increased public awareness of flood risk management, including residual risks such as over design events and the need for evacuation preparedness. Strategic signage near Cycleways on flood protection assets provide an opportunity to remind the public of the critical role of flood protection assets.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Social

Medium - Positive

¨ Economic

Medium - Positive

Economic and social benefits

The economic and social benefits of cycleways are recognised regionally and nationally.

For instance, Waka Kotahi’s (New Zealand Transport Agency) public website states the following as benefits of investing in cycling infrastructure:

· More liveable towns and cities

· Improved conditions for travelling within towns and cities

· Stronger local economies

· Reduced costs for councils

· Less impact on the environment, and

· Healthier and more productive people.

At a regional level, Bay of Connections states the following benefits of improving the cycleway network across the Bay of Plenty:

· Reduced carbon emissions

· Improved health outcomes through greater mobility and road safety separation of cyclists and vehicles

· Job creation through new tourism products and the establishment of businesses such as cafes, bike rentals, shuttle services, and guided tours.

The likely economic and social benefits for eastern Bay of Plenty communities are a key driver of WDC’s cycleway proposals. Quantifying the likely benefits is difficult, but the opportunity is there and BOPRC are a key enabler given our role in managing significant land areas within the proposed cycleway routes.

2. WDC’s cycleway proposals

2.1 Rangitāiki Awa Trail

The ‘Rangitāiki Awa Trail’ (Figure 1 below) is proposed to traverse sections of the Rangitāiki River stopbanks to the coast at Thornton.

Figure 1 Approximate location of proposed Rangitāiki Awa Trail
(app. 10 km’s - blue dotted line)

WDC received funding from the Government’s ‘Better Off Fund’ which has aims to manage financial implications for territorial authorities of the Three Water’s reform. Of note, there is flexibility to rebalance Better Off Funds across other approved or substitute projects. WDC proposes a cycle trail from the Whakatāne Board Mills to Awakeri School as a substitute project (Figure 2). This substitute route would utilise Whakatāne River and Te Rahu Canal stopbanks.

Figure 2 Approximate location of Whakatāne to Awakeri substitute route
(app. 9 km – blue dotted line)

2.2 Whakatāne Urban Cycleway

This cycleway (Figure 3 below) will begin at the Awatapu Lagoon outlet and traverse the existing stopbank to Trident High School. The cycleway is funded from Waka Kotahi’s Transport Choices programme which comes from the Government’s emissions reduction plan.

Figure 3 Approximate location of proposed Whakatāne Urban Cycleway
(app. 2 km’s - blue dotted line)

2.3 Kope Canal Cycleway

This cycleway will enable safer passage of residents from the Shaw Road subdivision into Whakatāne, linking with Keepa Road and an existing cycleway. This cycleway is also funded by Waka Kotahi’s Transport Choices programme.

Figure 4 Approximate location of proposed Kope Canal Cycleway
(app. 2 km’s - blue dotted line)

2.4 Agreement

BOPRC staff are preparing an agreement to record the arrangement with WDC. The agreement will give priority to the management of flood protection assets while also enabling the operation of the cycleways. The agreement will canvas other operational matters such as respective roles and responsibilities, health and safety, track maintenance planning and communications (including signage).

2.5 Future Trails

WDC’s long term vision is to create a connected cycleway across the district eventually linking with neighbouring districts. BOPRC staff will work with WDC as future trails are proposed to work through matters of interest, including Flood Protection and Drainage Bylaws authority and inclusion of new trails in the agreement described above (2.4) where appropriate.

3. Considerations

3.1 Risks and Mitigations

The agreement referenced above (point 2.4) is a primary risk mitigation tool.

Risks to the integrity of flood protection assets will be managed by the Flood Protection and Drainage Bylaw authorisation process through imposing technical and construction requirements. BOPRC staff will ensure all concerns are appropriately accounted for prior to providing written authority.

3.2 Climate Change

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

WDC cycleways have the potential to incrementally reduce carbon emissions by enabling cycling as a viable substitute for motorised transport. This is reflected in funding for two of the trails coming from the Government’s emissions reduction plan.

3.3 Implications for Māori

The opportunity for tangata whenua to express their culture and commemorate historical places will be enabled through their involvement in WDC’s proposals. Similarly, opportunity exists to create new, or complement existing business, by leveraging the cycling opportunity.

3.4 Community Engagement

CONSULT

Whakauiuia

To obtain input or feedback from affected communities about our analysis, alternatives, and/or proposed decisions.

WDC is the project owner/lead and will continue to undertake community consultation with affected parties. BOPRC staff will support this as appropriate and will contribute to the development of WDC’s communication plan.

BOPRC has completed initial consultation with our grazing licence holders where WDC’s cycleways are likely to traverse. Licence variations will be agreed as appropriate.

3.5 Financial Implications

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

4. Next Steps

BOPRC staff will continue to collaborate with WDC to finalise the agreement (2.4 above), confirm track design, process WDC’s Bylaw application and inform the development of WDC’s communication plan.

WDC anticipates that cycleway construction will begin in September 2023. Construction will be supervised by BOPRC Bylaws Engineers to ensure construction is in accordance with the Bylaws authority.