Agenda of Regional Council - Thursday, 23 November 2023

Table of Contents

Public Excluded Session

The table below sets out the general subject of each paper to be considered while the public is excluded from the proceedings of this workshop, the reason for excluding the public, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for excluding the public:

Item No.

Subject of each paper to be considered

Reason for excluding the public in relation to each paper

Grounds under Section 48(1) for excluding the public

When the paper can be released into the public

Quayside Holdings Limited Paper

• 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;

• 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 to prejudice the supply of similar information, or information from the same source, and it is in the public interest that such information should continue to be supplied;

• Withholding the information is necessary to enable any local authority holding the information to carry out, without prejudice or disadvantage, commercial activities;

• Withholding the information is necessary to maintain the effective conduct of public affairs through the free and frank expression of opinions by or between or to members or officers or employees of any local authority, or any persons to whom section 2(5) applies, in the course of their duty.

48(1)(a)(i) Section 7 (2)(b)(ii); 48(1)(a)(i) Section 7 (2)(c)(i); 48(1)(a)(i) Section 7 (2)(c)(ii); 48(1)(a)(i) Section 7 (2)(h); 48(1)(a)(i) Section 7 (2)(f)(i).

On the Chief Executive's approval.

1 Quayside Holdings Limited Paper - Public Excluded

Open Session

Informal Workshop Papers

2 Spatial Planning - Option 1B 1

Attachment 1 - 2023-11-8 Activity Plan Report 3

3 Regional Economic Development - Bay of Connections Option 2A 3

Attachment 1 - LTP2024 Workshop - 8 November 2023 - Regional economic development activity 3

4 Fees and Charges Policy Review 3

Attachment 1 - DRAFT 24/25 Fees & Charges policy - Part 1 with tracked changes 3

Presentations

5 Rates Remission for Māori Freehold Land Financial Information Presentation


Informal Workshop Paper
To:	Regional Council
	23 November 2023
From:	Antoine Coffin, Manager, Spatial Planning
	Namouta Poutasi, General Manager, Strategy and Science

Spatial Planning - Option 1B

1. Purpose

The purpose of this paper is to provide more detail regarding the Spatial Planning expense areas, in particular the implications of reductions in proposed cost centre areas of grants, contributions, consultancy.

2. Overview

At a Regional Council Long Term Plan workshop held on 8 November 2023, we presented three options for consideration. A diverse range of views were shared. The committee landed on an Option 1b (between option 1 and 2) and requested further detail of the programmes/projects.

During the workshop clarification was sought regarding work on the new Resource Management system (Natural Built Environment Act (NBEA) and Spatial Planning Act (SP)). We can confirm that work on the new system architecture has paused due to the uncertainty of a new coalition government. We expect amended or new legislation will be announced later in the government term.

We provided a general summary of the work programme in Spatial Planning which is focussed on subregional spatial plans, future development strategies and large scale urban development.

The three scenarios presented were:

• Scenario one: little change to current external expenses

• Scenario two: $173k reduction – reducing external expenses by 20%

• Scenario three: $865k reduction – austerity option to cease all external expenditure for SmartGrowth, Eastern Bay Spatial Plan, Rotorua FDS and consultancy.

At the 8 November 2023 workshop (report attached) staff were asked to explore a further option – Option 1B – to address a number of matters raised by councillors.

The discussion at the workshop highlighted the following:

• a diverse range of views from councillors

• the likely changes to the new Resource Management system including repeal of the NBEA and SPA

• the value of spatial planning in the region

• a need to understand the implications of reducing grants, contributions and consultancy.

3. Guidance Sought from Councillors

a. Note information provided to the 8 November 2023 Workshop discussing the Spatial Planning Activity scenarios.

b. Confirmation of preferred scenario.

4. Discussion – Option 1B

4.1 Rotorua Future Development Strategy

The Rotorua Future Development Strategy (FDS) is a requirement of Tier 2 Councils under the NPS – Urban Development – Rotorua Lakes Council and Bay of Plenty Regional Council. A joint committee with an independent chair was formed to hear and deliberate on the draft FDS. We expect that some work will be required to support the implementation of the FDS, including developing a joint implementation plan and our ongoing work in natural hazards (flood management), public transport and intensification of the existing urban areas. The significant majority of the implementation work will be lead and resourced by Rotorua Lakes Council. A modest annual grant/contribution of $50,000 has been allocated to this programme for each year between 2024-2026 where specialist assistance may be required in implementation. A 20% reduction of this budget is $10,000. This can be managed by prioritising work and drawing on staff across the organisation to assist in specific activities.

4.2 Eastern Bay Spatial Plan

The Eastern Bay Spatial Plan is a vision for the Whakatāne, Ōpōtiki and Kawerau Districts. Bay of Plenty Regional Council has been a partner in this project from its inception more than 12 months ago. The development of the plan will take 2-3 years. Technical work and relationship building has been the focus of work so far, with building blocks of the plan to be developed over the next period. The project is currently being restructured to be more efficient and financial arrangements are being finalised in alignment with respective Council LTP deliberations. The annual grants of $250,000/$300,00 in the two years 2024-2026 is a contribution to the administration and delivery of the spatial plan including specialist inputs in partnership with other councils and government agencies. We also support through staff time across several teams in policy, natural hazards, climate change, mapping and communications. A 20% reduction in the grant will equate to $50,000/$60,000 savings. The impact of the reduction will imply a reduction in administration and delivery of the project which can be managed by either increasing staff time in the project and/or delaying outputs by 3-6 months. This is considered a medium-to high impact, particularly due to the project being at its establishment and relationship building phase.

4.3 SmartGrowth

The SmartGrowth Strategy is a mature programme that sets out the 30 year vision for the western Bay of Plenty. The regional Council has been a partner with TCC, WBOPDC and tangata whenua since its inception some 18 years ago. Over time the spatial element of the strategy has increased with competition for urban development land, tensions between land use activity and the need to communicate complicated investments to external partners such as Government agencies. A Future Development Strategy (a requirement of the NPS-UD) is a part of the SmartGrowth Strategy.

The funding formula is set in an agreement between the partners. The BOPRC contribution is 42.5%. At present this equates to $465,000 annually, this funding the secretariat function of SmartGrowth and supporting its work programme. A reduction of this budget by 20% (scenario 2) equates to $93,000. This would have a medium to high impact on SmartGrowth requiring either prioritisation of work and/or reducing the number of people working in the programme (administering, coordination, governance, tangata whenua partnerships). We understand that there has been a desire of the Council to reduce SmartGrowth financial assistance moving forward. We are of the view that reducing the grant is one way of doing this, however a realignment of the structures and secretariat supporting SmartGrowth could also achieve a similar goal.

We recommend a 10% reduction or $46,500 together with a move for some realignment of structures supporting SmartGrowth once the strategy has been adopted in early 2024. There is a need for a political conversation at the SmartGrowth Leadership Group to discuss the implications on the reduction in financial a contribution. Another review of the Smart Growth grant can be done in 2025/2026.

4.4 Consultancy

The consultancy budget for spatial planning is $100,000 annually. Consultancy is expected to cover costs of research, assessment, mapping coordination and inputs for future development strategies, policy advice on legislation, technical assistance, expert presenters and speakers. A 20% reduction ($20,000) in this budget can be managed effectively through prioritisation of work or delaying work. It has a small to medium impact.

5. Cost Savings

The ability to offer advice, initiate or join joint projects, or build working relationships is made significantly more effective by the ability to contribute funding.

Option 1B provides an additional $126,500 in savings.

	Reductions	Proposed budget
SmartGrowth	$46,500	$418,500
Eastern Bay Spatial Plan	$50,000	$200,000
Rotorua FDS	$10,000	$40,000
Consultancy (mapping, specialist expertise)	$20,000	$80,000

Total	$126,500	$738,500

Attachments

Attachment 1 - 2023-11-8 Activity Plan Report ⇩


Informal Workshop Paper
To:	Regional Council
	23 November 2023
From:	Stephen Lamb, Environmental Strategy Manager
	Namouta Poutasi, General Manager, Strategy and Science

Regional Economic Development - Bay of Connections Option 2A

1. Overview

Bay of Connections is the significant part of Council’s Regional Economic Development activity. In relation to the Regional Economic Development Activity, three scenarios were presented:

• Scenario one: $60k reduction – little change to current operation

• Scenario two: $155k reduction – maximum efficiencies without fundamentally changing operation of the activity

• Scenario three: $500k reduction – Fundamental change to operation of the activity - BOC disestablished, little to no operational expenditure.

At the 8 November 2023 workshop (report attached) staff were asked to explore a further option – Option 2A – to address a number of matters raised by councillors.

The discussion at the workshop highlighted the following:

• A question about whether the current model had run its course

• The need to review where leadership of this area should best come from

• The need to retain the function of regional economic development

• The importance of delivery in the area of “low carbon economy”

• The ability to position as a region to connect with Central Government

• That there were a number of strengths in the current way of operating.

2. Guidance Sought from Councillors

1. Note information provided to the 8 November 2023 Workshop discussing the Regional Development Activity scenarios.

2. Note that under Scenario 2A or 3 there is a need to manage the withdrawal from the current structure and brand, with a break point of January 2024 suggested.

3. Provides direction on the preferred Scenario.

3. Discussion: Regional Economic Development - Option 2A

Option 2A has been developed based on an internally delivered economic function, with a governance structure to be determined via future Strategy and Policy Committee decisions.

There appears to be general agreement that the Bay of Connections brand should be retired or at least placed in abeyance for the time being. This would provide the freedom to explore alternatives with strategic partners to find the next iteration of a “regional economic development” structure.

As identified in the preceding paper, there is a natural break point in January 2024 that would allow a managed withdrawal from the current structure and branding.

Option 2A would also see the re-cast Activity cover:

• Connectivity with Central Government (day-to-day, programme basis)

• Analysis of the incoming Government’s policy positions on regional economic investment/impact

• Connection to regional economic development forums – including facilitation/coordination of forums

• Initiation/leadership of low carbon economy projects, in alignment with the climate change programme

• Regional economic data/information provision

• Regional economic advice to Council (policy) and council functions – for example, spatial planning, climate change.

A range of views were expressed by councillors about the Activity’s future governance. Option 2A would include exploratory work that would culminate in recommendations to Council about the way forward. Once Central Government direction is confirmed, it is likely that discussions with strategic partners - such as tangata whenua, EDAs, local authorities, Central Government departments and other economic development entities – will assist in defining the strategic future for the function.

3.1 Resourcing

A key question is around the level of resourcing. The ability to offer streams of advice, initiate or join joint projects, or build working relationships is made significantly more effective by the ability to contribute funding.

The existing operational budget (total less recoveries) is $520,000. As shown in the table below, option 2A would see the budget saving increase from $155,000 (in Scenario 2) to $200,000.

Attachments

Attachment 1 - LTP2024 Workshop - 8 November 2023 - Regional economic development activity ⇩


Informal Workshop Paper
To:	Regional Council
	23 November 2023
From:	Mark Le Comte, Principal Advisor, Finance; Alicia Burningham, Corporate Planner and Kumaren Perumal, Chief Financial Officer
	Mat Taylor, General Manager, Corporate

Fees and Charges Policy Review

1. Purpose

The Fees & Charges (F&C) policy outlines the fees and charges associated with a range of services provided by the Bay of Plenty Regional Council. Council uses these fees and charges to recover the costs of undertaking certain activities, to ensure the individuals and organisations responsible meet the cost for benefitting from those activities. This principle is directly provided for through Section 36(1)(c) of the Resource Management Act 1991, alongside other legislation specific to the activities.

Amending the Fees and Charges Policy requires a Special Consultative Procedure, and this will run in parallel with the consultation & hearings for the 2024-34 Long Term Plan.

2. Guidance Sought from Councillors

It is proposed that the Fees & Charges Policy be updated for the following activities or charges and request guidance on the following:

· Inclusion of Navigation Safety Bylaw charges

· Inclusion of gravel management charges

· Updates resulting from regulatory reform.

A draft of the proposed Fees & Charges policy 2024/25 with tracked changes (Attachment 1) has been attached to show all proposed changes to the Fees and Charges policy – Part 1.

Part 2 - the Fees and Charges schedules will be reviewed prior to adoption for audit to ensure that the fees are set appropriately to meet the revenue targets as per the guidance received on the Revenue & Finance Policy which is currently under review.

3. Discussion

3.1 Inclusion of Navigation Safety bylaw fees in the fees and charges policy

It is proposed to include the Schedule 7 Fees from the Navigation & Safety Bylaw 2017 into the Fees & Charges policy. This will enable the fees to be reviewed in cycle with the Fees and Charges policy rather than the 5 yearly cycle of the Navigation Safety Bylaw review. These fees include, Mooring licences, Commercial Navigation & Safety licences, public notices and other duties, powers, functions or services.

Proposed wording for inclusion in the policy is shown below:

(8.1.1) Maritime fees

The Bay of Plenty Regional Navigation Safety Bylaw is developed under section 33M of the Maritime Transport Act and in accordance with section 150 of the Local Government Act (2002). The authority to set fees for these Bylaws falls under section 33R of the Maritime Transport Act and in accordance with section 150(3) to (6) of the Local Government Act. Section 150 (1)(b) of the Local Government Act allows fees to be prescribed outside of the Bylaw. Council has elected to use this separate process to allow for fees to be updated without a full review of the Bylaw.

Table 15 Maritime fees

Maritime charge		Current fee		Proposed Fee (excl GST)
	Mooring Licence · Annual fee · Administration fee for process new applications, processing mooring vessel changes, processing changes of mooring ownership		$210 $125		$250.00 $150.00
	Commercial Navigation Safety Licence per operation/per annum		$103		$103.00 plus actual and reasonable costs of audits and inspections.
	Aquatic Event (Special event) Administration fee		N/A		$150.00 plus actual and reasonable costs of a audits and inspections.
	Public Notices		Actual cost of advertisements plus actual and reasonable administration costs.
	Navigation Aid maintenance/ inspection for third parties		Actual staff charges* plus actual and reasonable administration costs.

*See Schedule A

NOTE: Port charges (Harbour dues) will also be reviewed to ensure that they are set appropriately to meet the revenue targets as per the guidance received on the Revenue & Finance policy.

3.2 Inclusion of gravel management charges in the Fees & Charges Policy

It is proposed to include the Gravel management charge into the Fees & Charges policy. Inclusion of the fee will provide transparency, the opportunity for consultation and regular review. The gravel management fee is currently 90 cents per cubic metre and has previously not been included in the Fees and Charges policy.

Gravel is being extracted under BOPRC consents, individual operator consents, and under permitted activity rules with Council approval. This charge can be set under Section 36(1)(c) of the Resource Management Act 1991.

The work undertaken by various staff across council includes:

· Surveying riverbed cross sections, field work, drone flights, Natural Environment Regional Monitoring Network (NERMN) reporting, allocation assessments & review

· Engineering - site inspections, administration, management, relationships & reporting

Which equates to approx. 1700 hours of staff time per annum.

Guidance is also requested on the possible options below regarding the rate at which this fee is set:

Option 1 – increase the fee to $1.42/m3, cost recovery based on current hourly rates*

Option 2 – increase the fee to $2.34/m3, cost recovery based on charge out rates. Note, this rate will be reviewed following the review of Schedule A – staff charge out rates

Option 3 – increase the fee to $1.27/m3, apply CPI inflation

*Staff recommended option

Option 1 is recommended (cost recovery based on hourly rates). It is considered that this option reflects the inflationary increase since the 90 cents per cubic metre was set and provides for the increased resource needed to sustainably manage the resource.

3.3 Updates resulting from regulatory reforms

With the uncertainty around the regulatory reform with the incoming government, we will note in the statement of proposal that we have included reference to charges under the Natural and Built Environment Act 2023 (NBEA) and that these will be removed from the policy if the relevant provisions are repealed.

3.3.1 Permitted activities under Natural and Built Environment Act (NBEA)

We are seeking the ability to recover costs for responding to and addressing non-compliance with the Resource Management Act (RMA) or permitted activities. This is provided for under s150 of the Local Government Act and s722 of the Natural and Built Environment Act 2023. It will allow Council to recover costs from those parties identified responsible for the breach. In the past these costs have been born by the ratepayer.

Proposed wording for inclusion in the policy is shown below:

(2.4.2) Compliance monitoring charges

Compliance monitoring charges are based on the actual and reasonable costs of carrying out compliance monitoring of consents. Fixed and variable charges are made up of the staff time to carry out an inspection (if required), audit any monitoring information provided by consent holders, investigate and follow up any non-compliance and report back to consent holders (if required).

Charges for monitoring activities under the National Environmental Standards for Commercial Forestry (NESCF) and the National Environmental Standards for Freshwater (NESFW) as outlined in Schedule 3A are based on actual and reasonable costs.

Charges authorized under the transitional provisions of the Natural and Built Environment Act 2023 (NBEA), which apply as if they were included in the RMA, are based on actual and reasonable costs.

Table 7 Compliance monitoring charges (proposed additions)

Compliance monitoring charge

Charge basis

Charges for monitoring permitted activities other than those listed in Schedule 3A.⁷

Actual and reasonable

Charges for taking action in connection with monitoring or enforcing compliance with the RMA or NBEA ⁸

Actual and reasonable

Footnote 7: Authority to set this fee arises from s722 NBEA which applies as if it was included in the RMA in accordance with Schedule 1, clause 66(6) NBEA

Footnote 8: Authority to set this fee arises from s722 NBEA which applies as if it was included in the RMA in accordance with Schedule 1, clause 66(6) NBEA

3.3.2 Charges to recover costs under the National Environmental Standards Commercial Forestry

We have amended our charges to recover costs under the National Environmental Standards (NES) Commercial Forestry to reflect the wording in the NES and enable us to recover costs for a broader scope of compliance monitoring activities in the definition in Schedule 3A below.

4. Further work

The remaining Fees and Charges schedules will be reviewed to ensure that they are set appropriately to meet the revenue targets as per the guidance received on the Revenue & Finance Policy which is currently under review.

Charges	Review
Port charges (Harbour dues)	Rate
A - Charges for staff, consultants and contractors	Categories/ hourly rates
Compliance monitoring charges Schedule 1A – Consents subject to fixed fee compliance monitoring charges Schedule 2A - Consents subject to variable compliance monitoring charges	Annual charges Definitions/categories
Science charges (Schedules 1B - 12B)	Charges

5. Next Steps

Based on the guidance received from this workshop a draft Fees and Charges Policy and draft Statement of Proposal will be prepared to be adopted for audit on 14^th December.

Attachments

Attachment 1 - DRAFT 24/25 Fees & Charges policy - Part 1 with tracked changes ⇩