Agenda of Forestry Subcommittee

Forestry Subcommittee

1 December 2021

Page No.

1. Apologies

Nil

2. Confirmation of Order of Business

3. Interests

3.1 Updates to the Interests Register

3.2 Identify any conflicts of interest in the agenda

4. Public Forum

5. Confirmation of Minutes

5.1 29 September 2021 5 - 7

Document number M18974

Recommendation

That the Forestry Subcommittee

1. Confirms the minutes of the meeting of the Forestry Subcommittee, held on 29 September 2021, as a true and correct record.

6. Chairperson's Report

7. Forestry High-level Review - Costs 8 - 13

Document number R26263

Recommendation

That the Forestry Subcommittee

1. Receives the report (R26274); and

2. Endorses the recommended approach as detailed in report (R26263) to fulfil the requirements of the high-level forestry review requested by Council; and

3. Approves the next steps of appointing the suite of consultants (along with independent peer reviews), as detailed in Report (R26263), to undertake a high-level review of commercial forestry at an estimated cost of $73,500 (excluding peer reviews).

8. Forestry Activity Management Plan 2021-31 14 - 63

Document number R22592

Recommendation

That the Forestry Subcommittee

1. Receives the report Forestry Activity Management Plan 2021-31 (R22592) and its Attachment (A2072414); and

2. Approves the Forestry Activity Management Plan 2021-31 (A2072414) as the version to be forwarded to Council following approval of the Long-Term Plan 2021-31.

Recommendation to Council

That Council

1. Adopts the revised Forestry Activity Management Plan 2021-31 (A2072414).

9. Forestry Update - Number 17 64 - 82

Document number R26274

Recommendation

That the Forestry Subcommittee

1. Receives the report (R26274) and its Attachments (A2779103, A2762279, A2788214 and A2783310).

Forestry Subcommittee Minutes - 29 September 2021

Minutes of a meeting of the

Forestry Subcommittee

Te Kōmiti Āpiti, Ngahere

Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson on Wednesday 29 September 2021, commencing at 3.33p.m.

Present: Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillor T Skinner, Independent Forestry Expert P Gorman and Group Manager Infrastructure A Louverdis

In Attendance: PF Olsen representatives (S Nuske and J Tansey), LandVision Ltd representative (L Grant), Governance Advisers (J Brandt and K McLean)

Apologies: Councillor K Fulton (other Council business)

1. Apologies

Resolved FS/2021/006

That the Forestry Subcommittee

1. Receives and accepts the apology from Councillor K Fulton – on other Council business.

Murray/Her Worship the Mayor Carried

2. Confirmation of Order of Business

There was no change to the order of business.

3. Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

4. Public Forum

There was no public forum.

5. Confirmation of Minutes

5.1 23 June 2021

Document number M18743, agenda pages 5 - 7 refer.

Resolved FS/2021/007

That the Forestry Subcommittee

1. Confirms the minutes of the meeting of the Forestry Subcommittee, held on 23 June 2021, as a true and correct record.

Skinner/Her Worship the Mayor Carried

6. Chairperson's Report

Document number R26268

There was no Chairperson’s Report.

7. Forestry Update - Number 16

Document number R26006, agenda pages 8 - 66 refer.

Group Manager Infrastructure, Alec Louverdis, presented the report.

Tantragee Block harvesting. The Subcommittee expressed its thanks and appreciation to PF Olsen, Council officers and the affected residents for making the delivery of the Tantragee harvest a complete success.

Marsden Harvesting. PF Olsen representative, Sam Nuske, answered questions relating to wind damage and harvesting of this site.

LandVision representative, Lachie Grant, presented his alternative species update (attachment 6 to the report). He noted the damage to newly planted natives at the Brook site caused by high numbers of deer. Discussion took place regarding the timing of plantings and the Parks and Reserves deer reduction programme.

Resolved FS/2021/008

That the Forestry Subcommittee

1. Receives the report (R26006) and its Attachments (A2738154, A2738155, A2742664, A2719738, A2738156 and A2742185); and

2. Notes that the harvesting of blocks in the Maitai Valley will commence in October 2021; and

3. Approves the harvesting of around 15Ha of Block 42.05 (Marsden Valley) to occur in 2021/22, one year ahead of schedule.

Skinner/Her Worship the Mayor Carried

There being no further business the meeting ended at 4.17p.m.

Confirmed as a correct record of proceedings by resolution on (date)

Resolved

Item 7: Forestry High-level Review - Costs

Forestry Subcommittee

1 December 2021

REPORT R26263

Forestry High-level Review - Costs

1. Purpose of Report

1.1 To provide an approach and cost estimate to undertake a high-level review of forestry, in line with the 24 June 2021 Council resolution.

1.2 To seek approval from the Forestry Subcommittee to proceed with the work.

2. Recommendation

That the Forestry Subcommittee

1. Receives the report Forestry High-level Review - Costs (R26263); and

2. Endorses the recommended approach as detailed in report (R26263) to fulfil the requirements of the high-level forestry review requested by Council; and

3. Background

3.1 Council set aside funding of $100,000 in Y1 of the 2021-31 Long-Term Plan (LTP) to consider the feasibility of alternative commercial species (other than pinus radiata).

3.2 Since then, a further issue relating to forestry was raised at the 24 June 2021 Council meeting, where it was resolved as follows:

That the Council

“Requests a report on the potential costs, scope, and high-level implications (including financial) of undertaking an independent review of Council's approach to forestry in the 21/22 financial year, including considering developing a regenerative forestry plan prioritising indigenous forest opportunities, climate leadership and innovation to inform the Forestry Activity Management Plan and Treasury Management Policy”.

3.3 Officers advised the Forestry Subcommittee in September 2021 of the plan to co-ordinate these strands of work that will enable a framework to be developed that would guide scope and costs for consideration.

3.4 It was also noted in that report (and subsequently reported to Council as part of the Status Report update) that this will all be presented, in the first instance, to the Forestry Subcommittee in 2021/22 that would allow any works to be undertaken to inform the next Forestry Activity Management Plan (FAMP) and guide potential changes (if any) to the Treasury Policy.

3.5 The approach to give effect to the Council resolution is detailed hereafter, but in summary comprises several information gathering streams of work that will develop a framework to enable informed decisions.

4. Catalyst 2016 report review

4.1 As a necessary and prudent first step to guide any high-level overview, officers commissioned The Catalyst Group to review their original 2016 report “Assessment of non-monetary values”. This report considered a range of criteria that set the basis for Council resolving in 2016 to retire around 25% of its commercial forestry.

4.2 The current work was commissioned to review and test the assumptions that underpinned the original report and to evaluate whether those recommendations are still applicable in the current environment considering Council’s LTP priorities and any new developments that have come into force since 2016 - such as the 2019 NES for Plantation Forestry and the 2020 NPS for Freshwater Management. This review will include a climate change adaptation and mitigation lens.

4.3 Work included interviews with a range of cross Council departments within Council, Chair of the Forestry Subcommittee, the independent forestry adviser, Landvision, PF Olsen and Group Manager Infrastructure.

4.4 The findings of the report, commissioned for $12,500, were not available at time of writing.

5. Other complementary works

5.1 In addition to the Catalyst report review, the following are proposed under two streams of work. All work will be again be undertaken with a climate change adaptation and mitigation lens.

Stream 1 - Alternate commercial species assessment

5.2 The first piece of work includes an assessment of alternate commercial species specific to Nelson – including the viability of species for Nelson, the economic assessment of Return on Investment of those species compared to pine, and the effect on the region’s work force and end of line product chain of those species. Species to be assessed includes eucalyptus, redwood, manuka, totara and cypress.

5.3 It is proposed to use PF Olsen to undertake this work (on the back of the extensive work they did for Gisborne on the same matter and the work they did as part of the FSC accreditation framework for NCC), but with two added inputs to demonstrate transparency and independence:

· Input #1 – Input into PF Olsen’s report by industry recognised species specialists:

o Eucalyptus – Dryland Forest Initiatives; and

o Redwood – NZ Redwood Company; and

o Manuka – Manuka Farming NZ.

· Input #2 - An independent peer review of the final report. It is recommended that Jacqui Aimers be used to undertake the peer review. Jacqui is a consultant research analyst and forestry scientist with a strong background in specialty species.

5.4 The total estimated cost for this work (excluding peer review) is $35,000.

Stream 2 - Indigenous conversion

5.5 The second piece of work includes an assessment of the cost of developing a regenerative forestry plan prioritising indigenous forest opportunities. Work will include the costs of transitioning to indigenous forestry, the ongoing maintenance costs going forward and the effect of this on the regions work force and end of line product chain.

5.6 It is recommended that Dr Adam Forbes (Forbes Ecology) be engaged to undertake this work. Refer to the following link https://www.forbesecology.co.nz/ for Dr Forbes’ bio and profile. Dr Forbes is highly respected in his field and is considered a national expert and works through Ministry of Primary Industries (MPI) as well as the Canterbury University School of Forestry. He is also involved in MPI funded Hill Country Erosion work and the MBIE Envirolink Grant on Transition Guidelines for Landowners from plantation forest to native forest working across the three top of the South Island Councils.

5.7 It is recommended that this work be independently peer reviewed by Wildland Consultants (Wildlands). Wildlands is an ecological consultancy committed to providing high quality ecological information with a very strong focus on the planning and implementation of ecological restoration. Refer to the following link https://www.wildlands.co.nz/.

5.8 The estimated cost for this work (excluding peer review) is $26,000.

6. Financial

6.1 The estimated cost of the total proposed works is summarised below:

Workstream	Delivery By	Cost
2016 Catalyst report review	The Catalyst Group	$12,500
Stream 1 - Alternate commercial species	PF Olsen with targeted input from species experts (with peer review)	$35,000
Stream 2 - Indigenous conversion	Forbes Ecology (with peer review)	$26,000
	TOTAL COST	$73,500 *

* excluding peer reviews

7. Conclusion

7.1 Officers have done extensive work on developing a proposal (and cost estimate) to address the high-level review requested by Council. That includes a multi-pronged approach with several work streams using different consultants with all work stages independently reviewed to remove any perceived bias and to ensure transparency.

8. Next Steps

8.1 Should the Subcommittee approve the proposed approach by officers, the next steps would be to appoint the consultants that will allow work to proceed with the findings reported back to the Subcommittee.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Nil

Important considerations for decision making

1. Fit with Purpose of Local Government

The regular updates support the effective and efficient management of Council’s productive forests and through best practices and sustainability contributes to Local Government well-beings of social, economic, environmental, and cultural.

2. Consistency with Community Outcomes and Council Policy

The Group aligns with the following outcome: “Our Council provides leadership and is supported by an innovative and sustainable economy”.

3. Risk

The Subcommittee has been set up to specifically have an oversight on all things relating to forestry to reduce the risk to Council. The risk of this high-level review includes several checks and balances to ensure transparency and accountability.

4. Financial impact

The Subcommittee has been set up to monitor forestry activity and to manage income and expenses accordingly. Any expenditure recommended in this report is in line with this oversight. Adequate funding exists in the LTP for this work

5. Degree of significance and level of engagement

The proposed approach is not significant but commercial forestry has a high degree of interest form some sectors of the community. The proposal has several checks and balances in place to ensure transparency.

6. Climate Impact

Climate change is included in all proposed works under this review.

7. Inclusion of Māori in the decision-making process

Iwi have not been consulted in the preparation of this report.

8. Delegations

The Forestry Subcommittee’s areas of responsibility include:

Areas of Responsibility:

· All matters relating to the commercial forestry operational portfolio including environmental and recreational issues

Powers to Decide:

· In accordance with Council’s Annual Plan and Long-Term Plan:

o Approval of forestry and harvesting management strategy and plans

o Approval of the engagement of contractors/consultants and forestry tenders

Item 8: Forestry Activity Management Plan 2021-31

Forestry Subcommittee

1 December 2021

REPORT R22592

Forestry Activity Management Plan 2021-31

1. Purpose of Report

1.1 To approve the Forestry Asset Management Plan 2021-31 (FAMP), following approval of the Long-Term Plan 2021-31 (LTP), to be forwarded to Council for adoption.

2. Recommendation

That the Forestry Subcommittee

1. Receives the report Forestry Activity Management Plan 2021-31 (R22592) and its Attachment (A2072414); and

2. Approves the Forestry Activity Management Plan 2021-31 (A2072414) as the version to be forwarded to Council following approval of the Long-Term Plan 2021-31.

Recommendation to Council

That Council

1. Adopts the revised Forestry Activity Management Plan 2021-31 (A2072414).

3. Background

3.1 Draft Activity Management Plans (AMPs) are prepared for the approval of the Committee to inform development of the LTPs and include areas of focus for the activity during 2021-31; Levels of Service and the activity budgets for operations and maintenance, renewals and capital expenditure.

3.2 The Draft FAMP was approved by the Subcommittee on 1 December 2020 and forwarded to Council to guide the 2021-31 LTP. The Subcommittee resolved as follows:

That the Forestry Subcommittee

2. Approves the amended Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to be forwarded to Council as the version to inform the Long Term Plan 2021-31.

That the Council

1. Approves the amended Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to inform the Long Term Plan 2021-31; and

2. Notes that the amended Draft Forestry Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

3.3 That draft FAMP presented to Council included the following revised Goal – The Goal of the Forestry Activity in relation to its production forests are to manage its forest estate on a sustainable basis and to maximise net present value, and to implement best practice forest industry standards while protecting environmental and recreational values.

3.4 Council resolved on 17 December 2020 as follows:

That the Council

1. Approves the amended Draft Forestry Activity Management Plan 2021-31 (A2072414) as the version to inform the Long Term Plan 2021-31; and

2. Notes that the amended Draft Forestry Activity Management Plan 2021-31 will be updated and, the final Activity Management Plan approved, after the adoption of the Long Term Plan 2021-2031.

3.5 Council resolved on 24 June 2021 as follows:

That the Council

Requests a report on the potential costs, scope, and high level implications (including financial) of undertaking an independent review of Council's approach to forestry in the 21/22 financial year, including considering developing a regenerative forestry plan prioritising indigenous forest opportunities, climate leadership and innovation to inform the Forestry Activity Management Plan and Treasury Management Policy.

4. Discussion

4.1 The final FAMP (refer Attachment 1) has been updated. For ease of reading updates are highlighted yellow in the attachment. Significant additions include:

4.1.1 A section on Climate Change and Greenhouse Gas Emissions recognising Council’s priority in this matter.

4.1.2 A section addressing Council’s June 2021 resolution for an independent review of Council’s approach to forestry in 2021/22. The cost of undertaking this work will be presented to, in the first instance, the Forestry Subcommittee and will inform the next 2024-34 FAMP.

5. Options

5.1 The Subcommittee has two options – either to approve or not approve recommending the final FAMP to Council for adoption. Officers support option 1.

Option 1: Approve the FAMP 2021-31 to be forwarded to Council for adoption. Recommended option.
Advantages	· Meets the requirements of the Local Government Act 2002 · Supports delivery of the recently adopted LTP 2021-31.
Risks and Disadvantages	· Nil
Option 2: Not approve the FAMP 2021-31 to be forwarded to Council
Advantages	· Nil
Risks and Disadvantages	· Not adopting the AMP would leave Council without a clear plan to mitigate risks and achieve levels of service · Fail to meet requirements of the Local Government Act 2002

6. Conclusion

6.1 The FAMP has been updated following Council’s approval of the LTP and the subsequent Council June resolution and is ready to be recommended to Council for adoption.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2072414 - Draft 2021-31 Forestry Activity Management Plan - 24Nov2021 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The Forestry AMP support the effective and efficient management of Council’s productive forests and through best practices and sustainability contributes to Local Government well-beings of social, economic, environmental and cultural.

2. Consistency with Community Outcomes and Council Policy

Forestry support the following community outcomes:

“Our infrastructure is efficient, cost effective and meets current and future needs” and “Our communities are healthy, safe, inclusive and resilient.”

The FAMP has been prepared in line with Council’s Treasury and Investment Policy.

3. Risk

Adopting the FAMP is a low risk as it has been through the development process and reflects all the relevant LTP decisions.

4. Financial impact

There are no direct funding implications from the recommendation. The final AMP includes all work required by Council following the approval of the LTP. Any additional cost to fulfil the requirements of the 24 June 2021 Council meeting will be addressed via the Forestry Subcommittee.

5. Degree of significance and level of engagement

The LTP has been consulted on and Council has approved the LTP. The FAMP has been updated accordingly.

6. Climate Impact

The draft FAMP considers the potential impacts and risks climate change presents to the City as commercial pine forestry and harvesting is a sustainable practice.

7. Inclusion of Māori in the decision-making process

Iwi were engaged in preparing the draft FAMP.

8. Delegations

The Forestry Subcommittee is a subordinate decision-making body that reports to Council. The Group does not have the delegated authority to approve AMPs and for the Draft FAMP this is the responsibility of Council. The Group does however have the powers to consider all matters relating to continuing commercial forestry operations and that includes the FAMP.

The Forestry Subcommittee’s areas of responsibility include:

Areas of Responsibility:

· All matters relating to the commercial forestry operational portfolio including environmental and recreational issues.

Powers to Decide:

· In accordance with Council’s Annual Plan and Long Term Plan:

o Approval of forestry and harvesting management strategy and plans

o Approval of the engagement of contractors/consultants and forestry tenders

Powers to Recommend to Council:

· Any actions relating to the oversight of all matters relating to the commercial forestry portfolio, falling outside the powers to decide, including:

o Approval of forestry related budgets; and

o Any other matters relating to continuing commercial forestry operations.

Council’s delegations in this matter include:

• Developing, approving, monitoring and reviewing policies and plans, including activity management plans and the Financial Strategy

Item 8: Forestry Activity Management Plan 2021-31: Attachment 1

PDF Creator

Item 9: Forestry Update - Number 17

Forestry Subcommittee

1 December 2021

REPORT R26274

Forestry Update - Number 17

1. Purpose of Report

1.1 To provide an update to the Forestry Subcommittee on forestry activities undertaken since Council adopted the Forestry Review recommendations in September 2016, and since the September 2021 update.

2. Recommendation

That the Forestry Subcommittee

1. Receives the report Forestry Update - Number 17 (R26274) and its Attachments (A2779103, A2762279, A2788214 and A2783310).

3. Harvesting

Bridges

3.1 Progress on the bridges is shown below.

Maitai	Work is complete
Roding	Work will commence once consents have been secured.

Brook/Tantragee harvesting

3.2 Harvesting along with native planting and remediation of the Dun Mountain track is complete.

Maitai harvesting

3.3 Harvesting in the Maitai Valley has commenced.

Marsden Harvesting

3.4 Harvesting of Block 42.05 (around 15Ha) has commenced and includes remediation to the slips.

4. Tasman Pine Forests and Waahi Taakaro harvesting

4.1 When Tasman Pine Forests Ltd harvest the block adjacent to the Waahi Taakaro Golf Club, the work will also include harvesting the small area planted by them on Council land. When this work is undertaken, PF Olsen will monitor the work to ensure that the trees on Council owned land are harvested to the required standards. The small area will be replanted with indigenous species. No date has been provided by Tasman Pine Forests for the harvesting.

5. Health and Safety

5.1 No Safe Work Observations (SWOs) were conducted by NCC between September and December. PF Olsen continue to undertake regular internal SWOs.

6. Finance

6.1 An updated summary of Council budgets to September 2021 is appended as Attachment 1 (A2779103). PF Olsen’s Annual Report (1 July 2020 to 30 June 2021) is appended as Attachment 2 (A2762279) and PF Olsen’s quarterly report July – September 2021 is appended as Attachment 3 (A2788214).

7. Alternate Uses

7.1 Council agreed to retire approximately 140Ha of forestry and consider alternate uses and an Alternate Use Plan has been approved. Refer to Attachment 4 (A2783310) for an update. Lachie Grant (Landvision) will be in attendance to update the Subcommittee further.

Author: Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1: A2779103 - NCC Forestry Accounts Summary at 30 Sep 2021 ⇩

Attachment 2: A2762279 - NCC Forestry Annual Report 2020-21 ⇩

Attachment 3: A2788214 - NCC Quarterly Report - Q1 - 2021 - 22 ⇩

Attachment 4: A2783310 - Alternative Species Update 5 November ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

2. Consistency with Community Outcomes and Council Policy

The Group aligns with the following outcome: “Our Council provides leadership and is supported by an innovative and sustainable economy”.

3. Risk

The Subcommittee has been set up to specifically have an oversight on all things relating to forestry to reduce the risk to Council. Key risks identified in this report relate to harvesting in the Brook and Maitai, which are adequately mitigated by planned safety measures.

4. Financial impact

The Subcommittee has been set up to monitor forestry activity and to manage income and expenses accordingly. Any expenditure recommended in this report is in line with this oversight.

5. Degree of significance and level of engagement

The report deals with several matters that have required individual engagement with individuals/groups.

6. Climate Impact

Commercial pine forestry and harvesting is a sustainable practice and contributes positively to climate change mitigation.

7. Inclusion of Māori in the decision-making process

Iwi have not been consulted in the preparation of this report.

8. Delegations

The Forestry Subcommittee’s areas of responsibility include:

Areas of Responsibility:

· All matters relating to the commercial forestry operational portfolio including environmental and recreational issues

Powers to Decide:

· In accordance with Council’s Annual Plan and Long-Term Plan: