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Finance and
Performance Committee
17 April 2018
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Budget
update April 2018
File No.: CP2018/04269
Te take mō te pūrongo / Purpose of the report
1. To
approve unbudgeted expenditure in FY 2017/2018 for kauri dieback measures in
the Hunua Ranges Regional Park and the Waitākere Ranges Regional Park.
Whakarāpopototanga matua / Executive summary
2. The
Finance and Performance Committee holds delegation for establishing and
managing a structured approach to the approval of unbudgeted expenditure, which
reinforces value for money and an expectation of tight cost control.
3. This
report supports the committee in exercising that delegation by presenting the
proposed budget changes summarised below. Full details of these items have been
collected from relevant business areas of the council and provided in the later
part of the report.
Kauri dieback
4. Kauri
dieback disease is spreading across the region and there is significant
technical uncertainty around how best to control it. While the incidence and
proliferation of kauri dieback disease is most known within the Waitākere
Ranges, Auckland Council has a responsibility to stop the spread of kauri
dieback across the Auckland region. This responsibility is reflected in the
proposed Regional Pest Management Plan that prioritises preventing disease
spread to the apparently disease-free areas of Hunua Ranges Regional Park and
Hauraki Gulf islands.
5. On
10 April 2018, the Environment and Community Committee approved, amongst other
things, specific kauri dieback measures in the Hunua Ranges Regional Park and
the Waitākere Ranges Regional Park such as track and area closures. It recommended the Finance and Performance Committee
approve up to $740,000 of unbudgeted expenditure in FY 2017/2018 resulting from
that decision. The recommended amount took into consideration the risk around
contractor availability and the proximity to the end of the financial year.
6. The proposed expenditure covers a compliance and
enforcement programme, communications and engagements, two full-time equivalent
staff for the rest of the financial year, track improvements, hygiene station
upgrades, car park and track entrance barriers, and signage costs. These costs
are predominately operational in nature, except $85,000 for hygiene stations
that can be capitalised.
7. Auckland
Council’s Long-term Plan 2018-2028 (LTP) proposes to significantly
increase investment in kauri dieback management across the region. If either of the proposed LTP environmental protection
options is adopted, additional expenditure to give effect to the closures from
FY 2018/2019 onwards will be prioritised above the previously planned for
activity.
Overall budget impact
8. Overall
the financial impacts of the unbudgeted expenditure considered in this report
are summarised below:
· $740,000
increase in net borrowing for FY 2017/2018
· $662,000
impact on the group operating result for FY 2017/2018
· $76,000
additional general rates requirement for FY2018/2019.
Item ($m)
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FY18
Debt
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FY18
Result
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FY19
General Rates
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Kauri dieback measures in Hunua and Waitākere
Ranges
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$740,000
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($662,000)
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$76,000
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Ngā tūtohunga / Recommendation/s
That the Finance and
Performance Committee:
a) approve
up to $740,000 of additional expenditure in FY 2017/2018 ($655,000 in
operating expenditure and $85,000 in capital expenditure) to manage kauri
dieback, particularly relating to measures in the Hunua Ranges Regional Park
and the Waitākere Ranges Regional Park.
b) note
that two additional full-time equivalent employees and out-sourced
contractors will be required to manage the closures for the remainder of FY
2017/2018.
c) note
that if either of the proposed Long-term Plan 2018-2028 environmental
protection options is adopted, any additional expenditure to give effect to
the closures from FY 2018/2019 onwards will need to be prioritised above
previously planned activities for kauri dieback work, such as track
improvements, upgrades, landowner support, hygiene station upgrades and
washdown facilities.
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Kauri dieback
Horopaki
/ Context
9. In
April 2018, following targeted engagement and consultation, the Environment and
Community Committee approved proposals to manage kauri dieback disease in the
Waitākere Ranges and Hunua Ranges regional parks via track and area
closures.
10. For the
Hunua Ranges Regional Park, higher risk tracks as refined and agreed with mana
whenua and the Franklin Local Board, were agreed to be closed from 1 May 2018.
11. For the
Waitākere Ranges Regional Park, following agreement of the exceptions with
Te Kawerau ā Maki, the Environment and Community Committee approved the
closure of the forested areas, with exceptions, by 1 May 2018.
12. These
activities will be supported by and give effect to controlled area notices
planned to be implemented by the Ministry for Primary Industries (MPI).
13. The park
closures and enforcement actions agreed to by the Environment and Community
Committee involve unbudgeted expenditure, as described in both the December
2017 and February 2018 reports and as reflected by resolutions passed by the
Environment and Community Committee in April 2018.
Tātaritanga
me ngā tohutohu / Analysis and advice
14. The
resolutions represent $1.18 million of unbudgeted work. Given contractor
availability and the proximity to the end of the financial year, the
Environment and Community Committee recommended that the Finance and
Performance Committee approve unbudgeted expenditure of up to $740,000 for FY
2017/2018.
15. The
proposed expenditure of $740,000 represents a more achievable amount for the
remainder of the financial year. As outlined in the table under the financial
implications section, it covers a compliance and enforcement programme,
communications and engagements, two full-time equivalent staff for the rest of
the financial year, track improvements, hygiene station upgrades, car park and
track entrance barriers, and signage costs. These costs are predominately
operational in nature, except $85,000 for hygiene stations that can be
capitalised. These are the costs council incurs through its closures as a
landowner.
16. The
Ministry for Primary Industries is responsible for the implementation of the
controlled area notices. It will fund the legal aspects relating to the
development of the controlled area notices, a media campaign, signage relating
to the controlled area notices, training of compliance officers and the
effectiveness monitoring of the controlled area notices. The amount MPI will
contribute to signage and media campaigns is yet to be determined, but the
recommended amount for unbudgeted expenditure of $740,000 relates only to the
costs the council would incur.
17. This
expenditure cannot be accommodated within the existing parks or biosecurity
budget, nor can it be prioritised over other expenses without adversely
impacting agreed levels of service. Decisions agreed to by the Environment
& Community Committee in relation the kauri dieback could not be
implemented in this financial year, should the Finance and Performance
Committee decide not to approve the unbudgeted expenditure.
Ngā
whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe / Local
impacts and local board views
18. 10 local
boards provided formal feedback on kauri dieback disease through consultation
during the drafting of the proposed Regional Pest Management Plan. Nine local
boards indicated support for the proposed approach of prioritising prevention
of spread to the apparently disease-free areas of Hunua and Hauraki Gulf
Islands. The Waitākere Ranges Local Board requested a
Waitākere-specific approach with enhanced efforts to halt disease spread.
Hunua Proposal –
Franklin Local Board
19. On 27
March 2018, the Franklin Local Board formally considered the Hunua Kauri
Dieback Protection proposal at its monthly meeting. In summary, the board
supported the intent of the proposed temporary closures of the amended track
list to prevent the spread of kauri dieback disease. In addition the board
requested:
· closures
be used to manage access in the first instance, with monitoring for inform any
full closure discussions
· track
closures align to or cater for the proposed Hunua Trail
· council
staff work with key user groups
· that
when considering investment of funds as proposed in the Long-term Plan that
priority be given to prevent the introduction of kauri dieback in the Hunua
Ranges (Resolution number FR/2018/1).
Waitākere
Ranges Proposal – Waitākere Ranges Local Board
20. At the 22
March 2018 Waitākere Ranges Local Board meeting, the board provided formal
feedback on the proposed kauri dieback management approach for the
Waitākere Ranges. The board noted:
· urgent
action was required to save kauri
· that
all tracks in the forested area of the Waitākere Ranges needed to be
closed, with only coastal beaches, coastal walks without kauri, and service
roads remaining open
· concern
around certain tracks remaining open as they will degrade faster due to
increased visitor numbers, and this added pressure will make it more
challenging to stop the spread of kauri dieback
· the
need for a comprehensive long-term plan for the future of the Waitākere
Ranges Regional Park to determine where public access can be provided, while
still protecting kauri
· a
process needed to be developed around when tracks can be reopened, and Te
Kawerau ā Maki and the community needed to be involved in this process
(WTK/2018/14)
Tauākī
whakaaweawe Māori / Māori impact statement
Tāmaki Makaurau
21. Kauri is
a keystone species which supports a distinct New Zealand forest ecosystem,
sustaining indigenous flora and fauna. Kauri is a taonga species and
Auckland Council, in partnership with Māori, have a responsibility for the
protection of the spiritual, economic and ecological values associated with
this taonga and the ecosystems it supports.
22. Tāmaki
Makaurau mana whenua kaitiaki kaimahi representatives have stressed the
importance of the kauri species and a desire to work more closely with the council
and the Department of Conservation on this kaupapa. Staff will work with mana
whenua on the regional approach to kauri dieback management on a site by site
basis.
Hunua Ranges Regional Park
23. The Hunua
Ranges are of historical, customary, cultural and spiritual significance to
Ngāi Tai ki Tāmaki, Ngāti Koheriki, Ngāti Tamaoho,
Ngāti Pāoa, and Ngaati Whanaunga. Three tribal authorities also have
kaitiakitanga status; Ngāti Maru Rūnanga, Ngāti Te Ata Waiohua
and Tainui – Waikato.
24. As part
of the Healthy Hunua pest control programme from 2015 the council has worked
with mana whenua within the Hunua Ranges rohe (Ngāi Tai ki Tāmaki,
Ngāti Whanaunga, Ngāti Pāoa and Ngāti Tamaoho). Discussions
on how to address the kauri dieback challenge in the Hunua Ranges Regional Park
are in progress and mana whenua representatives provided feedback on the
proposal.
25. In these
discussions mana whenua representatives expressed concern about the potential
cumulative impact of kauri dieback, myrtle rust and other pests and the threat
they present to the health of the forest.
26. In
discussing the proposal to close tracks for kauri dieback protection, mana
whenua representatives supported, in principle, the closure of tracks for kauri
protection, but mana whenua would like a joined up discussion on managing
forest health and the role of tikanga Māori (traditional cultural protocols,
such as rāhui).
27. A
partnership discussion will be progressed by working towards an updated Hunua
Ranges management plan that would include the management of all public lands.
Council staff will work towards this with mana whenua and external partners,
including the Department of Conservation.
Waitākere
Ranges Regional Park
28. The
Waitākere Ranges Regional Park lies within the rohe of Te Kawerau ā
Maki and Ngāti Whātua, which is acknowledged in the Waitākere
Ranges Heritage Area Act 2008. It forms part of Te Waonui a Tiriwa, which
is the heartland of Te Kawerau ā Maki.
Te Kawerau ā
Maki
29. Te
Kawerau ā Maki view kauri in very high regards as ‘both living
tupuna and as raNgātira of the forest’. Te Kawerau
mātauranga also records that kauri support the growth of at least 17 plant
species in addition to fungi and animals and are integral to a healthy forest
where food and medicine are collected. Their connection to the health of the
forest is such that decline in kauri is an indicator that the mauri of the
forest is at stake, and that ultimately ‘if Te Waonui a Tiriwa
perishes so too does the iwi.’
30. Te
Kawerau ā Maki have stated that kauri dieback and the declining health of
Waitākere forest are existential threats to the iwi. Te Kawerau ā
Maki have also stated they have a sacred obligation to protect the forest as
kaitiaki.
31. In early
December 2017, Te Kawerau ā Maki placed a rāhui over the
‘Waitākere forest itself (the ‘ecological catchment’) to
quarantine or prevent human access. They have described that ‘as a matter
of tikanga the purpose of the rāhui is to enable the environment to
recuperate and regenerate without the presence and impacts of humans. Its
purpose is both physical and spiritual protection.’
32. Council
staff have been in ongoing discussions with Te Kawerau ā Maki about how to
address the kauri dieback challenge in the Waitākere Ranges. Council staff
will continue discussions with Te Kawerau ā Maki on the implementation of
the kauri dieback protection programme for the Waitākere Ranges including
tikanga and agreed communications around any rolling openings.
Ngāti Whātua
33. The
council has been in correspondence with the three Ngāti Whātua
authorities: Ngāti Whatua Ōrākei, Ngāti Whātua o
Kaipara and Te Rūnanga o Ngāti Whātua.
34. Ngāti
Whātua Ōrākei has reiterated that it ‘supports in full the
position of [their] whanaunga of Te Kawerau ā Maki’. Nga Maunga
Whakahii o Kaipara Development Trust has confirmed that Ngāti Whātua
have a close association with Waitākere and the extensive Kauri Ngahere
across Kaipara and that they are interested in maintaining close communication
on this matter. In addition, the Nga Maunga Whakahii o Kaipara Development
Trust has written in support of the Te Kawerau ā Maki rāhui.
Ngā
ritenga ā-pūtea / Financial implications
35. The
unbudgeted expenditure of $740,000 for FY 2017/2018 is broken down in the table
below, consisting of $655,000 of operating expenditure and $85,000 of capital
expenditure.
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$m
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FY18
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FY19
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FY20
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10-year impact
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Additional operating expenditure
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655,000
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0
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0
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655,000
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Kauri dieback online
survey and engagement costs (targeted consultation)
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15,000
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0
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0
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15,000
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Additional ambassadors
at track entrances (fixed contract staff)
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15,000
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0
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0
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15,000
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Compliance and
enforcement programme (contractors to undertake patrols)
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230,000
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0
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0
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230,000
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Potential loss of
revenue from concessionaires
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40,000
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0
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0
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40,000
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Communications and
engagement regarding closures (council’s costs, separate to MPI costs)
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100,000
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0
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0
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100,000
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Extra supplies for
hygiene stations
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5,000
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0
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0
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5,000
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Track improvements
prior to May 1st (extra aggregate)
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130,000
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0
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0
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130,000
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Car park closures
(materials and installation of barriers)
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30,000
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0
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0
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30,000
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Track entrance closures
(materials and installation of barriers)
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50,000
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0
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0
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50,000
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Signage costs (updating
direction signage and closed track signage). MPI covering controlled
area notice signage).
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40,000
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0
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0
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40,000
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Additional capital expenditure
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85,000
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0
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0
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85,000
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Hygiene station
upgrades in Waitākere and Hunua Ranges
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85,000
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0
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0
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85,000
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Any other funding sources
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0
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0
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0
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0
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Total requested additional funding
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740,000
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0
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0
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740,000
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36. A key cost
relates to the compliance and enforcement programme. It is based on the
targeted patrols compliance approach and would involve an up-front
‘blitz’, at a number of track entrances at both the Hunua and Waitākere
Ranges Regional Parks ensuring compliance with the controlled area notice
requirements and enforcing the closures. The delivery of the programme would
involve two full-time equivalent staff and out-sourced contractors for the rest
of FY 2017/2018.
37. It
should be noted that the additional funding of $740,000 relates to the current
financial year only, where it would have to be funded from additional
borrowing. Decisions and budget implications for future kauri dieback
management are being considered within the broader environmental protection
proposal as part of the LTP process. Environmental protection is proposed to be
funded from the Natural Environment Targeted Rate.
38. If
neither of the proposed LTP environmental protection options is adopted, it is
likely that funding for any additional kauri dieback measures from 2018/2019
onwards would need to be considered inFY 2018/2019. It is important to
note that managing compliance with controlled area notices and significant
closures were not anticipated at the time the Natural Environment Targeted Rate
proposals were drafted.
39. If either
of the proposed LTP environmental protection options is adopted, any additional
expenditure to give effect to these closures from FY 2018/2019 onwards will be
prioritised above track improvements, upgrades and other aspects of the kauri
dieback programme such as landowner support, hygiene station upgrades and
washdown facilities.
40. In
addition, the unbudgeted expenditure, if approved, would have a flow-on effect
on key focus areas within the Chief Executive’s performance objectives.
These impacts are outlined below.
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$m
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FY18
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FY19
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FY20
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10-year impact
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FTEs requested
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2
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0
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0
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Salaries and wages
expense
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35,000
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0
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0
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35,000
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Professional and
consultancy expense
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0
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0
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0
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0
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Travel expense
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0
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0
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0
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0
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Ngā
raru tūpono / Risks
41. Risks
exist in the potential unintended spread of the disease to uninfected areas. By
focusing biosecurity activity in the Waitākere Ranges there is the
potential to cause increased human activity within apparently disease-free
areas such as the Hunua Ranges. As protection of these disease-free sites is
the top regional priority for kauri dieback management, decisions in relation
to Waitākere need to be cognisant of mitigating perverse effects in
disease-free areas.
42. Technical
risks relate to a number of uncertainties within the kauri dieback programme. A
key issue is the unknown lag time between disease spread and observable
symptoms, which limits our understanding of how effective various management
options are.
43. A
significant investment may not stop the spread of the disease. Factors such as
natural waterborne movement of the disease within catchments are poorly
understood and not addressed by any of the current investment options.
44. Risks
also exist in relation to dependence on external agencies to progress this
programme, notably a National Pest Management Plan and controlled area notice.
This risk can, to some extent, be mitigated by continuing to progress the
adoption of an operative Regional Pest Management Plan.
45. There are
potential risks to other recreation areas through the displacement of visitors
from closed kauri areas. This may place pressure on parks infrastructure
including ongoing maintenance costs. In addition, it may also impact on visitor
experience.
Ngā
koringa ā-muri / Next steps
46. Pending
approval for this unbudgeted expenditure staff will work in partnership with
the Ministry of Primary Industries to implement the controlled area notices.
Staff have been working at pace to prepare for potential 1 May 2018 options,
although it may be that not all hard track entrances are closed off by this
date. Nonetheless, the messages will be clearer and council staff are working
closely with the Ministry for Primary Industries on both closing the forested
areas of the Waitākere Ranges Regional Parks and higher risk tracks in the
Hunua Ranges Regional Park, and rolling out the controlled area notices.
47. Post
confirmation of funding options for the next 10 years, staff will work to
prioritise, agree and communicate the timeline for any rolling openings, as
resources, consents and contractors.
48. Council
staff will continue to work with the Ministry for Primary Industries and other
members of the national programme to develop a National Pest Management Plan
and other outputs agreed to by the national governance group.
49. As there
are significant technical risks relating to the understanding of kauri dieback
disease and the scale of the closures, the use of a controlled area notice to
manage a disease such as kauri dieback is untested. Council staff will be
monitoring the effectiveness of the closures and working with the Ministry of
Primary Industries to monitor compliance with the controlled area notice. Staff
will report back to the Environment and Community Committee to ensure that the
actions that were taken achieved the desired outcomes.
Ngā
tāpirihanga / Attachments
There are no attachments for this report.
Ngā kaihaina / Signatories
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Authors
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Neil Huang - Principal Advisor
Susan Jiang Su – Finance Graduate
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Authorisers
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Ross Tucker - Acting General Manager, Financial
Strategy and Planning
Matthew Walker - Acting Group Chief Financial Officer
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