Agenda of Regional Council - Thursday, 26 October 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 26 October 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

3.1 Jodie Bruning – Physicians and Scientists for Global Responsibility New Zealand: The Effects of Fluoride in the Environment

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 - 21 September 2023 6

9. Reports

9.1 Chairperson's Report 6

Decisions Required

9.2 Adoption of the Annual Report and Annual Report Summary for the year ended 30 June 2023

This item will be distributed under a separate cover.

9.3 2023/24 Arotake Report: July - September 2023 6

Attachment 1 - Bancorp Treasury Report Sept 2023 - Public Excluded

9.4 Delegations under the Natural and Built Environment Act 6

Information Only

9.5 Local Government Funding Agency Limited Annual Report for the year ended 30 June 2023 6

Attachment 1 - LGFA Annual Report Cover Letter 6

Attachment 2 - LGFA Annual Report 2022-2023 6

9.6 BOPLASS Annual Report for the year ended 30 June 2023 6

Attachment 1 - BOPLASS Annual Report for the year ended 30 June 2023 6

9.7 11.00am Fixed Time: Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2023 6

Attachment 1 - Quayside Holdings Limited Annual Report FY June 2023 6

Attachment 2 - Toi Moana Trust Annual Financial Statements FY June 2023 6

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
9.3	2023/24 Arotake Report: July - September 2023 - Attachment 1 - Bancorp Treasury Report Sept 2023 - 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 - 21 September 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
10.2	Quayside Holdings Limited - Rangiuru Business Park on-lending	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.
10.3	Tauriko Land Sale	Withholding the information is necessary to enable any local authority holding the information to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	48(1)(a)(i) Section 7 (2)(i).	On the Chief Executive's approval.
10.4	Tauranga South On-Demand Public Transport Trial - Operator Procurement	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.

9.3 2023/24 Arotake Report: July - September 2023

Attachment 1 - Bancorp Treasury Report Sept 2023 - Public Excluded

Minutes to be Confirmed

10.1 Public Excluded Regional Council Minutes - 21 September 2023

Decisions Required

10.2 Quayside Holdings Limited - Rangiuru Business Park on-lending

10.3 Tauriko Land Sale

10.4 Tauranga South On-Demand Public Transport Trial - Operator Procurement

Attachment 1 - On-Demand Transport Procurement Plan Operations - confidential pdf

Attachment 2 - Operations for Tauranga On Demand - Evaluation Panel Recommendation - Confidential pdf

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

21 September 2023

Regional Council

Open Minutes

Commencing: Thursday 21 September 2023, 9.30 am

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

Chairperson: Chairman Doug Leeder

Deputy Chairperson: Deputy Chairperson Jane Nees

Members: Cr Malcolm Campbell

Cr Stuart Crosby

Cr Matemoana McDonald

Cr Kat Macmillan

Cr Ron Scott

Cr Ken Shirley

Cr Paula Thompson – via Zoom

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 and Science, Reuben Fraser – General Manager Regulatory Services, Chris Ingle – General Manager Integrated Catchments, Oliver Haycock – Manager Transport Planning, Monique Brooks – Legal and Commercial Manager, Rachel Boyte – Legal Counsel; Bruce Crabbe – Principal Advisor, Tone Nerdrum Smith – Senior Advisor Governance

Emma Jones – Public Forum speaker

Apologies: Cr Toi Kai Rākau Iti and Cr Lyall Thurston

Chairman Leeder advised those present in Chambers and via Zoom that the 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 (2) Council Meeting - 21 September 2023 - YouTube

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 Iti and Cr Thurston for absence tendered at the meeting.

Winters/Nees

CARRIED

3. Declaration of Conflicts of Interest

The following Councillors appointed to Proposed Change 6 (National Policy Statement on Urban Development) Hearings Panel and Proposed Plan Change 13 (Air Quality 13 (Air Quality) Appeals Subcommittee would abstain from asking questions of the Public Forum speaker.

Plan Change 6: Cr Jane Nees and Cr Paula Thompson

Plan Change 13: Cr Andrew von Dadelszen and Cr Matemoana McDonald.

4. Public Forum

4.1 Emma Jones – Re: Te Whatu Ora Health Report on Air Pollution in Mount Maunganui

Key Points:

· Attended the meeting to draw attention to the Te Whatu Ora Health Risk Assessment and its findings

· Represented the community-driven group Clear the Air who was concerned about air pollution from the Mount Maunganui industrial area

· Member of the Air Quality Working Group, which was an effective and cohesive group, focussed on outcomes

· Noted the continual changes in management and mitigation tools available to address ongoing concerns regarding pollution

· Sought direction from Council on how it would continue to work with the polluting industries and impacted communities, and encouraged Council to place some pressure on the industries in question

· Sought data regarding the release/safety impact of benzene from fuel storage tanks, as it was a known carcinogenic

· Science reports funded by the industry to protect their rights should always be seen in that context.

Key Points - Members:

· Recognised the dedication and passion of the speaker, and the importance of the work of the community groups

· Bylaws were an effective way to monitor and manage pollution in Rotorua

· Noted the additional air monitoring equipment deployed in Mount Maunganui

· Recognised the challenges of transport pollution due to the volume of traffic in Mount Maunganui (and Tauranga as a whole)

· Monitoring had identified three pollution level exceedances in the 2022/23 year; and none in 2023/2024

· Council was required to provide assistance and set its regulatory framework based on the best and current science and research available.

Key Points – Chief Executive:

· Plan Change 13 intended to place higher levels of responsibility and rules around businesses operating in the Mount Maunganui airshed

· The Mount Maunganui Industrial area was subject to the highest level of air quality monitoring in New Zealand.

5. Order of Business

Noted the 11.00 am fixed time of Public Excluded Item Papamoa Park and Ride Trial that might impact on the order of the business.

6. Minutes

Minutes to be Confirmed

6.1

Regional Council Minutes - 9 August 2023

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 9 August 2023 as a true and correct record, subject to the following amendments:

Agenda pg 18, 7.7 Electoral (Voting) System for 2025 Local Government Election, Key Points Members: amend first bullet to read “STV was a fairer system for diversity, but less likely to impact if there was a smaller pool of candidates”.

Agenda pg 19, 7.9 2023 Residents Awareness Survey Findings, Key Points – Members: add the following bullet “The conclusions within the report could be considered misleading”.

White/Macmillan

CARRIED

6.2

Extraordinary Regional Council Minutes - 23 August 2023

Resolved

That the Regional Council:

1 Confirms the Extraordinary Regional Council Minutes - 23 August 2023 as a true and correct record.

Winters/Crosby

CARRIED

6.3

Regional Council Minutes - 5 September 2023

Resolved

That the Regional Council:

1 Confirms the Regional Council Minutes - 5 September 2023 as a true and correct record.

Winters/Scott

CARRIED

7. Reports

7.1

Chairperson's Report

Key Points - Members:

· Noted the positive co-operation between Regional Council and the Bay of Plenty councils in relation to climate risk assessment work

· Acknowledged the recent passing of Tūhoe leader Paki Nikora.

Resolved

That the Regional Council:

1 Receives the report, Chairperson's Report.

Leeder/von Dadelszen

CARRIED

Decisions Required

7.2

Tauranga Public Transport Joint Committee Terms of Reference Amendment

Presented by: Oliver Haycock – Manager, Transport Planning and Mat Taylor – General Manager Corporate.

Key Points - Members:

· Noted that this was a well-functioning, co-operative committee

· An alternate appointment had been included as Waka Kotahi travelled from Waikato, which meant the primary member might not always be available.

Resolved

That the Regional Council:

1 Receives the report, Tauranga Public Transport Joint Committee Terms of Reference Amendment;

2 Approves the amendment to the Terms of Reference to allow for the appointment of a representative and alternate representative for Waka Kotahi NZ Transport Agency, as a non-voting, external member of the Tauranga Public Transport Joint Committee.

von Dadelszen/Macmillan

CARRIED

7.3

Delegations for “affected resource consents” and fast-track applications under the Natural and Built Environment Act

Presented by: Rachel Boyte – Legal Counsel and Mat Taylor – General Manager Corporate.

Key Points:

· Noted that a number of the provisions within the Act were already in effect and Council was required to amend its delegations to comply.

Resolved

That the Regional Council:

1 Receives the report, Delegations for “affected resource consents” and fast-track applications under the Natural and Built Environment Act.

2 Approves the following delegations to staff:

(a) To Consents Manager (CM), Senior Consents Planners (SCP), Consents Principal Advisors (CPA) and Consents Team Leaders (CTL):

(i) Clause 39 of Sch 12 RMA - To determine the duration of consent for an affected resource consent.

(ii) Clause 39(3) of Sch 12 RMA - To notify the applicant whether clauses 38 to 40 are relevant to their application.

(iii) Clause 40(1)(b) of Sch 12 RMA - To determine that clause 39 does not affect the duration of the consent after being satisfied that the application is primarily for an activity described in subclause cl40(3).

(b) To the General Manager Regulatory Services (GMRS):

(i) Clause 18(2) of Schedule 10 NBE Act - To provide written comments to the Environmental Protection Agency on a fast-track referral application.

3 Notes that further proposed changes to the Delegations Manual in response to the Natural and Built Environment Act and Spatial Planning Act coming into effect will be brought to Council for decisions at its next meeting.

Crosby/Scott

CARRIED

7.4

Transport Choices Package: Delegation for Funding Approval

Presented by: Oliver Haycock – Manager, Transport Planning and Mat Taylor – General Manager Corporate.

Key Points:

· The operational cost as outlined in the report was included in the Annual Plan 2023/24, which meant there was no additional/unbudgeted cost to Council

· Council was working closely with Rotorua Lakes Council regarding the installation of bus shelters, in particular along the newly developed lakefront where tangata whenua input was particularly important

· Public transport infrastructure was the responsibility of the individual councils, rather than Regional Council.

Resolved

That the Regional Council:

1 Receives the report, Transport Choices Package: Delegation for Funding Approval.

2 Notes that the $670,000 funding has no requirement for a local share contribution.

3 Approves entering into an implementation schedule for public transport infrastructure implementation in Rotorua, under the existing Transport Choices Funding Agreement with Waka Kotahi.

4 Delegates authority to the Chief Executive to finalise and execute the implementation schedule with Waka Kotahi and other documents to give effect to the above recommendations, where the value or significance would normally require execution by Council.

White/Winters

CARRIED

7.5

Waingaehe Floodway - Property Acquisition - Farnworth/Robinson Avenue, Rotorua

Presented by: Bruce Crabbe – Principal Advisor, Chris Ingle – General Manager Integrated Catchments and Monique Brooks – Legal and Commercial Manager.

Key Points:

· The land in question was surplus to Waka Kotahi’s requirement

· The land was suitable for water quality improvements and community engagement as well as equipment/material storage and nurseries for ‘soft engineering’ solutions, i.e. plantings

· The purchase opportunity had been reported to the recent Kaituna Scheme Advisory Group meeting

· With approval of Council, in principle staff could explore options with Waka Kotahi.

Key Points - Members:

· Queried the possibility of tangata whenua interest in the land and if this consideration should be further investigated.

Resolved

That the Regional Council:

1 Receives the report, Waingaehe Floodway - Property Acquisition - Farnworth/Robinson Avenue, Rotorua.

2 Approves the purchase of the property contained within RT 896655 located at 0 Farnworth Avenue, provided that the purchase price does not exceed $50,000 (plus GST, if any, and associated legal and transaction costs).

3 Delegates to the General Manager, Integrated Catchments the authority to complete the purchase of the land contained within RT 896655, located at 0 Farnworth Avenue, Rotorua including delegation to execute all documents required.

Campbell/von Dadelszen

CARRIED

7.6

Procurement Plan for Rivers and Drainage Capital Works 2023/24

Presented by: Bruce Crabbe – Principal Advisor and Chris Ingle – General Manager Integrated Catchments.

Key Points - Members:

· Noted that Council’s social procurement policy was currently being updated.

Resolved

That the Regional Council:

1 Receives the report, Procurement Plan for Rivers and Drainage Capital Works 2023/24.

2 Approves the attached Procurement Plan for Rivers and Drainage Capital Work 2023/24.

3 Delegates to the Chief Executive the financial authority to accept tenders and approve contracts, suppler selections, and payments, including contract variations and renewals for each capital project providing that the total value of all contracts are within the approved budget for Capital works as provided for in the Annual Plan 2023-2024 or an approved Long Term Plan.

Winters/Campbell

CARRIED

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	Public Excluded Regional Council Minutes - 9 August 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.2	Public Excluded Extraordinary Regional Council Minutes - 23 August 2023	As noted in the relevant Minutes.	As noted in the relevant Minutes.	To remain in public excluded.
8.3	Papamoa Park and Ride Trial	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.
8.4	Seddon Pump Station and Lawler Drain Riparian Project	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.
8.5	Bay of Plenty Regional Council as a potential drinking water supplier under the Water Services Act 2021.	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.

von Dadelszen/Winters

CARRIED

9. Closing Karakia

A karakia was provided by Cr Te Taru White.

12.11 pm – the meeting closed.

Confirmed

Chairman Doug Leeder

Chairperson, Regional Council



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Authoriser:	Doug Leeder

Chairperson's Report

Executive Summary

Since the preparation of the previous Chairperson’s Report for the Council meeting on 21 September 2023, I have attended and participated in a number of meetings and engagements as Chairperson on behalf of Bay of Plenty Regional Council (BOPRC).

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

Recommendations

That the Regional Council:

1 Receives the report, Chairperson's Report.

1. Purpose

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

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

2. Meetings and Engagements

Date	Meeting / Engagement	Comment
13 September	Te Whatu Ora 100 years celebration of Whakatāne Hospital – Whakatāne	Attended.
13 September	Relationship Meeting with John Ryan Auditor-General and Richard Harbord Sector Manager, Office of the Auditor-General (OAG) – Videoconference	An opportunity to discuss any issues and concerns BOPRC have, and an offer of support from the OAG following recent severe weather event impacts.
14 September	Te Uru Kahika Leaders Plenary – Wellington	The theme of the plenary was Te Uru Kahika United in Purpose and Action. I presented Strategic messages as Regional Sector Chair and participated in a Q&A session.
	Regional Sector Meeting – Wellington	Discussed the next steps for the Future for Local Government, Resource management reform and the Te Uru Kahika briefing to the incoming government outline.
	Te Uru Kahika Leaders Social Networking Dinner – Wellington	Attended.
16 September	Celebration of Fonterra Edgecumbe’s 100 years milestone, and 100 years of Rangitāiki Plains Dairy Co-Op milestone – Edgecumbe	Attended.
17 to 18 September	Local Government New Zealand Event: Choose Localism – your chance to drive a future by local government! – Wellington	Starting to build consensus on the Future for Local Government recommendations.
19 September	Meeting with Tauranga City Council Commissioner Chair Anne Tolley, Western Bay of Plenty District Council Mayor James Denyer and our respective Chief Executives – Tauranga	Attended.
4 October	Bay of Plenty Regional Council Annual Plan and General Update presentation to Rotorua Lakes Council (RLC) – Rotorua	Highlights from our 2023/24 Annual Plan and other updates relevant to RLC and our Long Term Plan process were covered. Councillors White, Winters, Thurston and Nees were also in attendance.
5 October	Bay of Plenty Agriculture Advisory Committee meeting – Te Puke	Attended.
12 October	Government Inquiry into the North Island Severe Weather Events, Interview by the Inquiry Panel – Tauranga	The Inquiry was established to identify lessons from the severe North Island weather events earlier this year. The Inquiry is focussed on readiness and response, and is required to make recommendations on the measures to apply in preparation for future severe weather events.
15 October	Annual Ōpōtiki/Ōhiwa Care Group Celebration Day – Ōpōtiki	An annual care group get-together to celebrate collective efforts and to share ideas.



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Writer:	Olive McVicker, Corporate Performance Team Lead; Kumaren Perumal, Chief Financial Officer and Karlo Keogh, Senior Management Accountant
Report Authoriser:	Evaleigh Rautjoki-Williams, Acting General Manager, Corporate
Purpose:	To provide elected members with an update on Regional Council’s performance in quarter one of the current financial year.

2023/24 Arotake Report: July - September 2023

Executive Summary

This Arotake report provides a high-level summary of Council’s performance for the period 1 July 2023 to 30 September 2023. This includes:

· Service delivery summary

· Financial summary

· Corporate summary

Full details will be provided through Council’s electronic interface (Insight) that goes live on 6 November 2023. Councillors will be notified by email. This will enable Councillors to compare data, follow activities of particular interest, and drill into items of particular interest. It will also enable the timely provision of information, as once information is updated electronically it will be available for review.

In addition, where non-financial results are available on a monthly basis, this will also be available.

The new system will be demonstrated to Councillors at a future Council meeting.

Recommendations

That the Regional Council:

1 Receives the report, 2023/24 Arotake Report: July - September 2023 .

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) Bancorp Treasury Report Sept 2023 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 first quarter of the 2023/24 financial year (1 July 2023 – 30 September 2023). It includes:

· Service delivery performance results

· Financial performance summary

· Corporate Summary

The full Arotake report will be available electronically in November.

1.1 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.

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

1.1.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

þ Social

¨ Economic

Through the provision of information to the public about Council’s performance, the Arotake report primarily contributes to social wellbeing through enabling a well-informed community and promoting accountability to ratepayers and the wider local electorate.

2. Service Delivery Performance

This is the first report for the 2023/24 financial year. There are a total of 45 measures monitored this financial year and results have been received for 31.

For the three months ending 30 September 2023, a total of 23 measures were on track, 5 were not on track, and 3 had no results to report, e.g. there were no plan changes approved for notification. There were 14 measures where the reporting was not due. This means that the reporting will occur later in the year.

Key achievements are:

· Total number of public transport trips, 817,836, is a 21% increase from the same period last year.

· All oil spills, whether inside or outside Tauranga Harbour, were responded to within agreed timeframes.

· 99% of non-notified consents were within the statutory timeframe.

· Visitors to Regional Parks were 29,443, a 45% increase from the same period last year.

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

3. Financial Performance

Total operating revenue for the year to 30 September 2023 is closely in line with the year-to-date budgeted revenue, at $32.2 million compared to $32.4 million.

Total operating expenditure is $5.0 million lower than year-to-date budget. The major contributing factors were reduced spending on contractors and consultants, as well as lower levels of savings from employee and other expenses.

Year-end forecasts are being finalised and will be available when the Insights tool goes live on 6 November 2023 as staff are working through the first quarter forecast alongside the 2024-2034 Long Term Plan process.

Capital expenditure to date is on track against the budgeted $30 million spend for the financial year. Additionally, staff anticipate receiving grants for capital projects of $4.6 million, which is $1.3 million lower than the budget, due to funding delays resulting from extended project milestones.

3.1 Treasury

Our total investment portfolio is $210.6 million comprising term deposits of $40 million, call accounts / working capital of $28.8 million, Toi Moana Trust of $70m (fund value $69.6 million as at 30 September), Quayside (on-lend) of $71.8 million.

Council has borrowed $223.8 million from the Local Government Funding Agency with $71.8 million on-lent to Quayside. The remaining $152 million has been borrowed to fund capital expenditure (including pre-funding of $25 million).

The Toi Moana Trust quarterly update will be included in the next Quayside quarterly update.

Confidential Attachment 1 Bancorp Monthly Treasury Report September 2023 provides further details of Council’s treasury performance.

4. Corporate Summary

At 30 September, there were 485.94 Full Time Equivalent staff (FTE) which is made up of 466.74 permanent FTE and 19.2 fixed term FTE. At the same time last year there were 467.59 (447.94 permanent FTE and 19.65 fixed term FTE). Staff turnover was 8.21% for the quarter, which is a decrease from 12.67% in September 2022.

Health and Safety recorded 12 injuries (2022, 16 injuries) for the period ending September 2023. Five required medical treatment, three required first aid and two lost time injuries. There were five near misses.

5. Considerations

5.1 Risks and Mitigations

There are no significant risks associated with this report.

5.2 Climate Change

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

5.3 Implications for Māori

There are no implications for Māori arising from this report.

5.4 Community Engagement

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

5.5 Financial Implications

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

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

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

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

6. 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 Council meeting, a demonstration of the electronic reporting tool will be provided to Councillors.

Attachments

Attachment 1 - Bancorp Treasury Report Sept 2023 (Public Excluded) ⇩



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Writer:	Rachel Boyte, Legal Counsel and Hayley Sheridan, Legal Counsel
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To delegate functions and powers under the Natural and Built Environment Act to staff

Delegations under the Natural and Built Environment Act

Executive Summary

The Natural and Built Environment Act 2023 (NBEA) received Royal Assent in August.

There is a long transition period from the Resource Management Act 1991 (RMA) to the new system. Rather than taking over from the RMA immediately, the NBEA provides for most existing RMA instruments and processes to continue in effect until replacements are developed.

However, some of the NBEA provisions are now or will shortly be in effect. These include additional enforcement and compliance tools, fast-track consenting, contaminated land, and limited duration for some water-related consents.

This paper asks Council to delegate functions and powers that may be exercised in the next 6 months. These are additional to those that the Council delegated in its September meeting. No delegations are required under the Spatial Planning Act 2023 at this time.

A paper will also be brought to the Strategy and Policy Committee meeting in October that will provide more detail on the NBE Act and Spatial Planning Act and their implications for Council.

If the legislation is repealed (or substantially amended), or if additional delegations are identified as being required, a further paper will be brought to Council.

Recommendations

That the Regional Council:

1 Receives the report, Delegations under the Natural and Built Environment Act

2 Delegates the functions and powers identified in underline in Table 1 – Delegations under the Natural and Built Environment Act

3 Notes that, if the NBEA is repealed (or substantially amended), or if additional delegations are identified as being required, a further paper will be brought to Council

1. Introduction

The Natural and Built Environment Act 2023 achieved Royal Assent and became law in August 2023.

There is a long transition period from the RMA to the new system. Rather than taking over from the RMA immediately, the NBEA provides for most existing RMA instruments and processes to continue in effect until replacements are developed. For example, a number of key provisions will come into effect on a region’s NBEA date, when its NBE plan becomes operative.

However, some of the NBEA provisions are now or will shortly be in effect. These include additional enforcement and compliance tools, fast-track consenting, and limited duration for some water-related consents (“affected resource consents”). Some of these are NBEA provisions that amend the RMA and so some new delegations under the RMA are required as a result.

While there is uncertainty over the future of the NBEA, at the time of drafting this paper it is the current law. Due to this legislative uncertainty and to the complexity of the transitional provisions, this paper only asks Council to delegate functions and powers that may be exercised in the next 6 months. No delegations are required under the Spatial Planning Act 2023 at this time.

The delegations proposed in this paper are additional to those that the Council has already delegated in its September meeting in relation to affected resource consents (under the RMA) and fast-track referral applications (under the NBEA).

1.1 Legislative Framework

Section 62 of the NBE Act and section 34A of the RMA provide local authorities with the power to delegate to an employee any functions, powers, or duties under these Acts. There are very limited exceptions to this power to delegate. The delegations sought are not exempted and so are within Council’s power to delegate.

1.2 Alignment with Strategic Framework

There are no community outcomes directly affected by the decision to delegate these functions and powers to staff.

1.2.1 Community Well-beings Assessment

There are no community well-beings that are directly affected by the decision to delegate these functions and powers to staff.

2. Delegations

The powers and functions sought to be delegated to staff at this stage relate to:

· Additional compliance and enforcement tools, including the ability to impose conditions relating to and enforce financial assurances.

· Fast track consent applications (once a referral application is accepted by the Minister).

2.1 Compliance and enforcement

New and updated compliance and enforcement powers and tools will be available while the system moves from the RMA to the NBEA. These changes will come in progressively over a two-year period from 24 August 2023.

The RMA duties which give rise to Regional Council enforcement actions continue to apply until our region’s NBEA date. This means that we will continue to monitor and enforce compliance with the RMA (not the NBEA) during the transitional period.

As we continue to police breaches of RMA duties, we will be using RMA investigative powers and enforcement tools (such as infringements, abatement notices and prosecutions) which remain in force.

During the transitional period, enforcement will continue under the RMA but some RMA provisions are expressly modified giving Regional Council some additional or more robust tools to use in the interim. For example, maximum fines for prosecution are increased, limitation periods for prosecutions and infringement offences are increased, abatement notice provisions are expanded and there is a new offence of breach of a resource consent condition.

Regional Council also has an increased ability to recover costs, by requiring a person to pay any reasonable costs incurred by the regulator in taking any action in connection with monitoring or enforcing the person’s compliance.

Further enforcement powers also come into place six months after commencement of the NBEA (February 2024) and will then apply during the remainder of the transitional period. These allow us to seek adverse publicity orders and enforceable undertakings.

A summary of the additional tools available at commencement and from February 2024 is set out below:

Delegations are proposed for all powers and responsibilities associated with these tools to the appropriate staff levels in the Regulatory Compliance team as well as, where appropriate, the Consents Manager.

Financial assurances can be in the form of a bond, insurance, or other type of assurance and will generally be imposed as conditions of resource consents. This means associated powers and responsibilities are proposed to be delegated largely to employees in the Consents Team.

2.2 Fast track consent applications

The NBE Act includes a fast-track consent process that is similar to what has been in place under the COVID-19 Recovery (Fast-track Consenting) Act 2020. Applications can be referred to the Environmental Protection Agency (EPA) and, if accepted, will be processed by the EPA and decided by an Independent Hearings Panel.

The General Manager Regulatory Services (GMRS) has delegated authority to provide comments on a referral application (21 September meeting). If a referral application is accepted the substantive resource consent application can be lodged and processed. Delegations associated with submissions and provision of further information are sought to GMRS as well as the Consent Manager and Consents Principal Advisors. The delegation for lodging of appeals in the High Court on any fast-track decision is proposed to sit with the GMRS.

2.3 Contaminated Land

The “polluter pays” principle applies from the day after Royal Assent in relation to contaminated land. This sets a presumption that polluters are to bear the costs of managing pollution to prevent damage to human health and the environment. The principle empowers the EPA and the relevant local authority to recover all actual and reasonable costs from the polluter. An associated delegation is sought to allow key Regulatory Compliance staff to take the steps required to recover costs on behalf of the Council.

3. Considerations

3.1 Risks and Mitigations

The exercise of the powers and functions by staff will be undertaken in accordance with the necessary legislative requirements. Regulatory staff implement statutory requirements on a day-to-day basis and are familiar with these processes. They also have legal support when needed.

3.2 Climate Change

The decision to delegate these functions and powers to staff has no climate change implications. Climate change considerations may be relevant to the substantive exercise of the delegated powers and functions.

3.3 Implications for Māori

The decision to delegate these functions and powers to staff has no direct implications for Māori. The substantive exercise of the delegated powers and functions may have implications for Māori.

3.4 Community Engagement

The decision to delegate these functions and powers to staff has no direct implications for community engagement.

3.5 Financial Implications

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

4. Next Steps

Decisions are sought to delegate the functions and powers identified in underline in Table 1 below – Delegations under the Natural and Built Environment Act (to be included in the Chief Executive Delegations Manual).

TABLE 1 – Delegations under the Natural and Built Environment Act

Interpretation

Throughout this document, delegation may be made to a management tier or a specific position.

The following acronyms are used to describe positions (by job title) with assigned delegations:

	Position
BM	Biosecurity Manager
BTL	Biosecurity Team Leader
BO	Biosecurity Officer
CCM	Customer Contact Manager
CE	Chief Executive
CFO	Chief Financial Officer
CM	Consents Manager
CP	Consents Planner (and any consultant instructed to undertake the work of a Consents Planner within the terms of a contract with Council)
CPA	Consents Principal Advisor
CTL	Consents Team Leader
DHM	Deputy Harbourmaster
EDG	Enforcement Decision Group
EM	Engineering Manager
FITL	Facilities and Information Team Leader
GMC	General Manager Corporate
GMIC	General Manager Integrated Catchments
GMRS	General Manager Regulatory Services
GMSS	General Manager Strategy & Science
HEO	Honorary Enforcement Officers
HM	Harbourmaster
ICM	Integrated Catchment Managers (Rotorua and Coastal)
LC	Legal Counsel (including Legal & Commercial Manager)
LMO	Land Management Officer
MO	Maritime Officers
MRO	Moorings Officer (also known as Maritime Officer II)
PAPP	Principal Advisor, Policy & Planning
PL	Planner/Policy Analyst
PPM	Policy & Planning Manager
RC	Regulatory Coordinator
RCO	Regulatory Compliance Officer (and includes any person instructed to undertake the work of a RCO within the terms of a contract with Council)
RCM	Regulatory Compliance Manager
RCPA	Regulatory Compliance Principal Advisor
RCTL	Regulatory Compliance Team Leader
ROSC	Regional On-Scene Commander
RPO	Regulatory Project Officer
SCP	Senior Consents Planner
SITL	Securities and Infrastructure Team Leader
SLMO	Senior Land Management Officer
SMO	Senior Maritime Officer
SRPO	Senior Regulatory Project Officer
SPL	Senior Planner, Senior Policy Analyst
SRCO	Senior Regulatory Compliance Officer
TLPP	Team Leader Policy and Planning (includes Team Leader Water Policy, Team Leader Environmental Policy and Planning, Team Leader Kaiwhakatinana)

Natural and Built Environment Act 2023

NOTE: These delegations are made directly from Council but are included here for ease of reference. Any amendments to these delegations require a resolution of Council pursuant to section 62 of the Natural and Built Environment Act 2023.

The powers and duties delegated are those of the Regional Council as “local authority”, “consent authority”, “public authority”, and “regional council”. The Regional Council delegates its powers directly to the officers listed in the below table.

Section	Description of function, power or duty	Delegated to	Criteria/Notes
Financial assurances
674 & 675	Require a person to provide a financial assurance; including as a condition in a resource consent. Notify person of financial assurance required.	GMRS, CM, SCP, CPA, CTL, RCM, RCTL, SRCO	May be sought for breaches of the RMA committed on or after 23 August 2023. Refer to clause 65(7)-(10) of Schedule 1 NBEA.
679	Require a person to provide an independent assessment for the purpose of determining the amount of financial assurance.	GMRS, CM, CPA , CTL, SCP, RCM, RCTL, SRCO	The person must pay any costs associated with obtaining an independent assessment.
682 & 683	Review or amend financial assurance.	GMRS, CM, CPA, CTL, RCM, RCTL, SRCO	Includes considering any submissions from the person who provided the financial assurance.
684, 685 & 686	Claim on financial assurance.	GMRS, CM, CPA, CTL, RCM, RCTL, SRCO	The procedure for making a claim is outlined in NBEA 685-686. Includes considering any submissions from the person who provided the financial assurance.
687	Issue notice to replenish financial assurance	GMRS, CM, CPA, CTL
688, 689 & 690	Release or transfer a financial assurance	GMRS, CM, CPA, CTL
691(2)	Suspend resource consent for non-compliance with financial assurance	GMRS, CM, CPA CTL, RCM, RCTL, SRCO
Compliance and enforcement
661	Apply to the Environment Court or District Court for an order revoking or suspending resource consent for non-compliance	GMRS, LC	GMRS to make the decision to apply in consultation with LC. From a procedural perspective, RCM or LC may execute any documents and carry out any steps required to complete this. See also clause 66(5) of Schedule 1 NBEA.
673	Apply to the Environment Court or District Court for an adverse publicity order of the kind specified in s673 NBEA.	GMRS	Adverse publicity orders may be sought for breaches of the RMA committed on or after 23 February 2024. Refer also to clause 67 of Schedule 1 NBEA and the delegated powers under s316 RMA. Section 673 applies as if it was included in s314(1) RMA and an application can be made pursuant to s316 RMA.
722	Require payment of costs for monitoring and enforcing compliance with RMA	GMRS, RCM, RCTL, SRCO	Applies to costs incurred on or after 23 August 2023. Refer to clause 66(6) of Schedule 1 NBEA.
Enforceable undertakings
665(1)	Accept an enforceable undertaking	GMRS, RCM	Applies to breaches or alleged breaches of the RMA committed on or after 23 February 2024. Refer to clause 67 of Schedule 1 NBEA
666(2), (3)	Give public notice of enforceable undertaking. Apply the amount collected	GMRS, CM, RCM, RCTL, SRCO, RCO
667	Give notice of decision to person seeking enforceable undertaking	GMRS, CM, RCM, RCTL, SRCO, RCO
670	Apply to the District Court for an order directing compliance with an enforceable undertaking	GMRS, LC	GMRS to make the decision to apply in consultation with LC. From a procedural perspective, RCM or LC may execute any documents and carry out any steps required to complete this.
671	Agree to withdraw or vary an enforceable undertaking. Give notice of withdrawal or variation.	GMRS, CM, RCM, RCTL, SRCO, RCO	The decision whether to withdraw or vary is to be made by GMRS, CM or RCM. It may be notified by RCTL or RCO.
Fast track consenting
Clause 26, Sch10	Lodge submissions on a fast-track application	GMRS, CM, CPA
Clause 30, Sch 10	Respond to a request for further information	GMRS, CM, CPA
Clause 34, Sch 10	Assess whether a fast-track application is for an affected resource consent and whether cl 40 Schedule 12 RMA applies.	GMRS, CM, CPA	Refer to Schedule 12 RMA.
Clause 42, Sch 10	Lodge an appeal in the High Court on a decision on a fast-track application.	GMRS	Appeals limited to High Court on points of law. GMRS to make the decision to appeal in consultation with LC. From a procedural perspective, LC may execute any documents and carry out any steps required to complete this.
Contaminated Land
413	To recover actual and reasonable costs incurred in taking action in relation to contaminated land.	GMRS, RCM, RCTL, SRCO, SRPO	Applies if the identity of a polluter of contaminated land has been confirmed through the local authority’s execution of an enforcement order. Refer to s722



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Writer:	Kumaren Perumal, Chief Financial Officer and Gillian Payne, Principal Advisor
Report Authoriser:	Fiona McTavish, Chief Executive
Purpose:	For Council to receive the Local Government Funding Agency Limited’s Annual Report for the year ended 30 June 2023

Local Government Funding Agency Limited Annual Report for the year ended 30 June 2023

Executive Summary

The purpose of this report is to present Council with the Local Government Funding Agency Limited’s (LGFA) Annual Report for the year ended 30 June 2023 and provide an overview of the company’s performance for the period. The LGFA benefits communities through delivering efficient financing for local government. Bay of Plenty Regional Council has an 8.3% percent shareholding in the LGFA.

The LGFA continued to increase the value of its loans to councils to $16.3 billion and increased shareholder equity to $105.8 million. Profit for the year was down to $2.5 million and a higher dividend of $1.7 million was declared on 28 August 2023.

The LGFA achieved 16 out of its 17 performance targets. The missed target was lower than targeted operating income of $11.6 million, compared to the target of $12.2 million.

The LGFA’s Net Operating Profit result being marginally below its Statement of Intent forecast is due to the company taking a conservative approach by borrowing longer than its term of lending and retaining a large amount of liquid assets in response to rising interest rates and a volatile economic environment.

Recommendations

That the Regional Council:

1 Receives the report, Local Government Funding Agency Limited Annual Report for the year ended 30 June 2023.

1. Introduction

The purpose of this report is to present Council with the LGFA’s Annual Report for the year ended 30 June 2023 and provide an overview of the company’s performance for the period.

1.1 Legislative Framework

Bay of Plenty Regional Council has an 8.3% percent shareholding in the LGFA. The LGFA is a Council Controlled Organisation (CCO).

Section 67 of the Local Government Act 2002 requires Council Controlled Organisations to send its shareholders an annual report by 30 September each year.

1.2 Alignment with Strategic Framework

A Healthy Environment
Freshwater for Life
Safe and Resilient Communities
A Vibrant Region	We invest appropriately in infrastructure to support sustainable development.
The Way We Work	We deliver value to our ratepayers and our customers.

The LGFA enables Bay of Plenty Regional Council to borrow funds for capital projects and for on-lending to Quayside Holdings Limited at lower rates than are available elsewhere. This promotes affordable project funding for the community and delivers cost effective financing across the wider Council Group.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

þ Economic

Low - Positive

The low interest rates on funds borrowed assists with keeping rates affordable. Council also receives a dividend for its shareholding in the LGFA.

2. Annual Report for the year ended 30 June 2023

The LGFA has provided a covering letter to shareholders (Attachment 1) and Annual Report for the year ended 30 June 2023 (Attachment 2).

The Annual Report provides specific commentary on the operation of the LGFA, and the significant positive impact it has had on the sector in reducing the cost of borrowing to rate payers.

LGFA has continued to work with Central Government and council members as they work through the Affordable Waters Reform Programme. This remains an area of uncertainty and LGFA is considering its potential role under the proposed Affordable Waters Reform programme, in consultation with stakeholders.

Highlights for the 2022/23 financial year include:

· Launching a Climate Action Loan (CAL) product for councils and CCOs, which together with the Green, Social and Sustainable Loans (GSS) portfolio comprise the assets which were notionally allocated against a $1.1 billion Sustainable Financing Bond issued in April 2023.

· Increasing membership to 77 out of the 78 Councils in New Zealand and three Council Controlled Organisations.

LGFA continues to increase the value of its loans to councils and shareholders’ equity. A summary of LGFA’s financial performance is in the table below.

	30 June 2022 $000	30 June 2023 $000
Loans to Councils	14,041,908	16,313,562
Shareholder Equity	104,560	105,847
Net Operating Profit	10,673	2,505
Dividend to Shareholders (paid in following September)	1,218	1,712

The LGFA achieved 16 of its 17 performance targets as shown below (refer Annual Report page 15).

The LGFA’s Net Operating Profit result was marginally below its Statement of Intent forecast, due to the company taking a conservative approach by borrowing longer than its term of lending and retaining a large amount of liquid assets in response to rising interest rates and a volatile economic environment.

Governance, capability and business practice

Optimising financing services for local government

Effective management of loans

Environmental and social responsibility

3. Considerations

3.1 Risks and Mitigations

Council and LGFA manage interest rate risk within their respective policies. Ongoing implications of Affordable Waters Reform on the LGFA will continue to be monitored through Council’s representative on the Shareholder’s Council.

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 has commenced providing green, social and sustainable financing options for councils.

3.3 Implications for Māori

The matters addressed in this report are of a procedural nature and there is no need to consider implications for Māori.

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.

The LGFA Annual Report for the year ended 30 June 2023 will be available to the public via Council’s and LGFA’s websites. The shareholding and borrowing from the LGFA is disclosed in Council’s Long Term Plan and Annual Reports.

3.5 Financial Implications

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

4. Next Steps

The LGFA Annual Report will be made available via Council’s website.

Attachments

Attachment 1 - LGFA Annual Report Cover Letter ⇩

Attachment 2 - LGFA Annual Report 2022-2023 ⇩



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Fiona McTavish, Chief Executive
Purpose:	To present Council with the BOPLASS Annual Report for the year ended 30 June 2023

BOPLASS Annual Report for the year ended 30 June 2023

Executive Summary

The purpose of this report is to present Council with the Bay of Plenty Local Authority Shared Services (BOPLASS) Annual Report for the year ended 30 June 2023 (Attachment 1).

BOPLASS report that they achieved all six of their performance targets for the year and had an operating deficit of $23,549 which reduced their total equity to $28,520.

Recommendations

That the Regional Council:

1 Receives the report, BOPLASS Annual Report for the year ended 30 June 2023.

1. Introduction

The purpose of this report is to present Council with the BOPLASS Annual Report for the year ended 30 June 2023 and provide an overview of the company’s performance for the period.

1.1 Legislative Framework

Bay of Plenty Regional Council has an 16.13% percent shareholding in BOPLASS. BOPLASS is a Council Controlled Organisation (CCO) owned by Bay of Plenty Regional Council and eight other councils.

Section 67 of the Local Government Act 2002 requires Council Controlled Organisations to send its shareholders an annual report by 30 September each year.

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 and procurement opportunities for Councils in the Bay of Plenty region and Taupō District and Gisborne District Councils.

1.2.1 Community Well-beings Assessment

Dominant Well-Beings Affected

¨ Environmental

¨ Cultural

¨ Social

¨ Economic

Low - Positive

Shared services provide for efficient delivery of services.

2. BOPLASS Annual Report for the year ended 30 June 2023

2.1 Financial results

BOPLASS reported an operating deficit of $23,549 for the year, which reduced their total equity to $28,520.

The analysis in note 26 on page 45 of Attachment 1 shows that all projects made a neutral or positive contribution to the net operating position but core expenditure exceeded revenue by a greater amount.

2.2 Non-financial performance

BOPLASS report that they achieved all six of their performance targets for the year (refer pages 8-15 of Attachment 1).

BOPLASS noted in particular that several of their projects contributed to improved community safety, and that the region had received $1 million co-funding from Ministry of Social Development to support the projects.

In renewing contract arrangements, BOPLASS report that significant financial and technology benefits were gained from aggregating council volumes. For printing and photocopier services, community organisations were also able to benefit.

3. Considerations

3.1 Risks and Mitigations

There are no material risks related to the BOPLASS Annual Report. BOPLASS has identified that infrastructure insurance will continue to become more challenging to secure.

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 direct implications for Māori 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.

The BOPLASS Annual Report for the year ended 30 June 2023 will be published on the Council website for public information as required by the Local Government Act.

3.5 Financial Implications

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

4. Next Steps

The BOPLASS Annual Report for the year ended 30 June 2023 will be published on Council’s website.

Attachments

Attachment 1 - BOPLASS Annual Report for the year ended 30 June 2023 ⇩



Report To:	Regional Council
Meeting Date:	26 October 2023
Report Writer:	Mark Le Comte, Principal Advisor, Finance
Report Authoriser:	Mat Taylor, General Manager, Corporate
Purpose:	To receive Annual Reports for the year ended 30 June 2023 for the Quayside Holdings Limited Group and Toi Moana Trust.

Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2023

Executive Summary

The purpose of this report is to provide an overview of the performance of Quayside Holdings Limited Group (Quayside) and the Toi Moana Trust (TMT) for the year ended 30 June 2023, and for Council to receive the Annual Reports for the year ended 30 June 2023.

Quayside has met all 10 of its performance targets for the 2022/2023 financial year and fully paid the budgeted dividends to Council and Perpetual Preference Shareholders. Quayside has also provided copies of Annual Reports for its subsidiaries. Quayside’s financial summary includes:

· Total assets $3.3 billion ($3.2 billion 2022) comprised of $2.8 billion for the Port of Tauranga and $502.7 million non-port investments.

• Net assets of $2.5 billion ($2.5 billion 2022).

• Net profit $120.9 million ($125.9 million 2022) comprised of $117.1 million for the Port of Tauranga and $3.7 million non-port investments.

Toi Moana Trust met all five of its performance targets for the 2022/2023 financial year including paying the budgeted dividend of $3.5 million. The net asset value of the fund has increased from $43m as at 30 June 2022 to $71.6m as at 30 June 2023. Of this, $25m was due to new units issued, and the remainder reflects positive market performance.

Recommendations

That the Regional Council:

1 Receives the report, Quayside Group and Toi Moana Trust Annual Reports for year ending 30 June 2023.

1. Introduction

The Annual Reports for Quayside Holding Limited (Quayside) and the Toi Moana Trust (TMT) for the year ended 30 June 2023 are presented to Council for information. Council adopted the Statements of Intent for the two Council Controlled Organisations (CCOs) in November 2022.

1.1 Legislative Framework

Quayside is required to provide annual reporting information to shareholders within three months of the end of the financial year as set out in the Local Government Act 2002. There is no requirement for Council to approve these annual reports.

Each annual report must include:

· A comparison of the performance of the organisation and its subsidiaries with the Statement of Intent

· An explanation of any material variances

· The dividend to be paid

· Audited consolidated financial statements

· Auditors report on those financial statements.

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

Medium - Positive

¨ Cultural

Medium - Positive

¨ Social

Medium - Positive

¨ Economic

Medium - Positive

The dividend from Quayside Holdings Limited is applied to general funded Council activities to reduce the general rates requirement, which supports the delivery of all four Community Outcomes and the Way We Work.

2. Quayside Group and Toi Moana Trust Annual Reports for the year ended 30 June 2023

2.1 Quayside Holdings Limited Annual Report

The Annual Report for the Quayside for the year ended 30 June 2023 is included as Attachment 1.

Quayside delivered the budgeted dividends in full to the Council and Perpetual Preference Shareholders (PPS). Council received a dividend of $42.5 million and PPS holders received total gross distributions of $7.0 million over the year, following a rate reset on 13 March 2023 to 6.64%.

Quayside achieved a net profit after tax of $120.9 million ($125.9 million 2022) and achieved all 10 of its performance targets.

Quayside’s financial summary includes:

· Total assets $3.3 billion ($3.2 billion 2022) comprised of $2.8 billion for the Port of Tauranga and $502.7 million non-port investments.

· Net assets of $2.5 billion ($2.5 billion 2022).

· Net profit after tax of $120.9 million comprised of $117.1 million for the Port of Tauranga and $3.7 million non-port investments.

· 5.2% increase in Port of Tauranga Group net profit after tax.

· 14.06% return on Investment on listed equities (last 12 months)

Quayside’s performance highlights include:

· Five year rolling gross return of 9.78% for the Quayside consolidated group (target 7.0%)

· The Port of Tauranga group recorded a decrease in greenhouse gas emissions (Scope 1, 2, and 3) by 7.3% in the year ending June 2023. Which reflects lower cargo volumes and to a lesser extent, several emission reduction programmes.

· Rangiuru Development of the business park is well advanced with two seasons of earthworks and the interchange works underway.

· Development of a new enterprise risk register and redefinition of key strategic risks.

· Progress towards mandatory climate disclosure reporting in 2024.

2.2 Toi Moana Trust Annual Report

The Annual Report for TMT for the year ended 30 June 2023 is included as Attachment 2.

Council has invested $70 million in total in TMT. Investments are designed to be held for five years or more and provide a return and capital preservation over that timeframe.

TMT met all five of its performance targets for the 2022/2023 financial year including paying the budgeted dividend of $3.5 million. The net asset value of the fund has increased from $43m on 30 June 2022 to $71.6m on 30 June 2023. Of this, $25m was due to new units issued, and the remainder reflects positive market performance.

3. Considerations

3.1 Climate Change

The matters addressed in this report are of a procedural nature and there is no need to consider climate change impacts. Quayside’s investments include consideration of socially responsible investment principles including emissions and climate change impacts.

3.2 Implications for Māori

Quayside holds some investments in partnership with Māori including Huakiwi which is a joint venture with Te Tumu Paeroa (the Māori Trustee) and is focused on whenua Māori and long-term employment for the community.

Quayside report that over the last 24 months, a workplace-designed programme was run for staff, to facilitate a journey of knowledge and insight into Te Ao Māori.

3.3 Community Engagement