Notice of the Ordinary meeting of

Forestry Subcommittee

Te Kōmiti Āpiti, Ngahere

 

Date:                      Tuesday 20 September 2022

Time:                      9.00a.m.

Location:                 Council Chamber
Floor 2A, Civic House
110 Trafalgar Street, Nelson

Agenda

Rārangi take

Chairperson                    Mr John Murray

Members                        Her Worship the Mayor Rachel Reese

        Councillor Kate Fulton

        Councillor Tim Skinner

        Independent Forestry Expert Peter Gorman

        and Group Manager Infrastructure Alec Louverdis

 

Quorum: 5, comprising the Chair and two elected member (decision makers), plus one Council officer and the independent forestry expert (for advice only)

Pat Dougherty

Chief Executive

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision. For enquiries call (03) 5460436.


Excerpt from Nelson City Council Delegations Register (A11833061)

Forestry Subcommittee

This is a subcommittee that reports to Council.

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.

For the Terms of Reference for the Forestry Subcommittee please refer to document A1739267.

 

 


Forestry Subcommittee

20 September 2022

 

 

Page No.

 

1.       Apologies

An apology has been received from Her Worship the Mayor R Reese

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      22 March 2022                                                                               6 - 8

Document number M19338

Recommendation

That the Forestry Subcommittee

1.    Confirms the minutes of the meeting of the Forestry Subcommittee, held on 22 March 2022, as a true and correct record.

5.2      21 June 2022                                                                                 9 - 9

Document number M19570

Recommendation

That the Forestry Subcommittee

1.    Confirms the minutes of the meeting of the Forestry Subcommittee, held on 21 June 2022, as a true and correct record.

  

6.       Chairperson's Report

7.       Forestry Update - Number 19                                     10 - 23

Document number R27034

Recommendation

That the Forestry Subcommittee

1.        Receives the report Forestry Update - Number 19  (R27034) and its attachments (A2896464, A2896757 and A2897597).

 

 

8.       Forestry Update - Number 20                                     24 - 92

Document number R26970

Recommendation

That the Forestry Subcommittee

1.        Receives the report Forestry Update - Number 20  (R26970) and its attachments (1833911234–19, 1833911234-20, 332184083–4470, 1133911234-21, and 1986768459-1897); and

2.        Notes the damage incurred to Council’s blocks following the August 2022 extreme weather event; and 

3.        Approves that approximately 24Ha of commercial forestry recently harvested in the Maitai block be retired from commercial forestry for the reasons provided in report R26970. 

 

       

 

 


Forestry Subcommittee Minutes - 22 March 2022

 

 

 

Minutes of a meeting of the

Forestry Subcommittee

Te Kōmiti Āpiti, Ngahere

Held in the via Zoom on Tuesday 22 March 2022, commencing at 1.02p.m.

 

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

In Attendance:    Councillor R Sanson, and Governance Advisers (A Fon, K McLean)

Apologies :          Nil

 

1.       Apologies

There were no apologies.

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      1 December 2021

The minutes were updated to reflect the correction to Item 9 page 7 – he reported delays in health, safety and recreational considerations, should read ‘he reported delays in resource consenting considerations’

Document number M19127, agenda pages 4 - 7 refer.

Resolved FS/2022/001

 

That the Forestry Subcommittee

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

Murray/Her Worship the Mayor                                                      Carried

6.       Chairperson's Report

There was no Chairperson’s report for this meeting.

However, the Chairperson indicated that Mr Sam Nuske would be including information on current operations and markets.

7        Forestry Update - Number 18

Document number R26482, agenda pages 7 - 22 refer.

Group Manager Infrastructure, Alec Louverdis, presented the report and answered questions on ungulate control, Marsden, Maitai and Roding harvesting, Forestry High Level Review, carbon credit potential and budgets.

PF Olsen representative, Mr Sam Nuske, presented the quarterly report and noted that although the domestic and export log market was strong that this was balanced by high fuel costs and demand for ships.

Mr Nuske answered a question regarding disposal of slash, confirming that where practical the slash was diverted to other use such as landscaping supplies or bio fuel.  If it was uneconomic to remove, then it was stockpiled away from waterways and will over time breakdown into mulch.

Landvision Limited representative, Mr Lachie Grant, updated the subcommittee on replanting alternative species.

Resolved FS/2022/002

 

That the Forestry Subcommittee

1.    Receives the report   (R26482) and its attachments (A2853830, A2853822 and A2823832).

Skinner/Fulton                                                                              Carried

 

There being no further business the meeting ended at 1.40pm.

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

 

Resolved

 

 

 

    


Forestry Subcommittee Minutes - 21 June 2022

 

 

 

Minutes of a meeting of the

Forestry Subcommittee

Te Kōmiti Āpiti, Ngahere

Held via Zoom on Tuesday 21 June 2022, commencing at 9.00a.m.

 

In Attendance:    Team Leader Governance (R Byrne) and Governance Advise (T Kruger)

Apology:             An apology has been received from Her Worship the Mayor R Reese and a late apology from Councillor K Fulton

 

Because of the late apology from Councillor Fulton (due to COVID) quorum, which must include two Elected Members, was not met therefore the meeting lapsed.

 

Adjourn item of business

 

That the Forestry Subcommittee

1.    Adjourns the items Confirmation of Minutes 22 March 2022 and Forestry Update – Number 19 to be considered at the Forestry Subcommittee meeting to be held on 20 September 2022 at 9.00a.m. in the Council Chamber.

 

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

 

Resolved

 

   

 


 

Item 7: Forestry Update - Number 19

 

Forestry Subcommittee

20 September 2022

 

 

REPORT R27034

Forestry Update - Number 19

     

 

           This item has been deferred from the Forestry Subcommittee meeting of 21 June 2022 as quorum was not met and the meeting was not held.

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 March 2022 update.

 

2.       Recommendation

That the Forestry Subcommittee

1.    Receives the report Forestry Update - Number 19  (R27034) and its attachments (A2896464, A2896757 and A2897597).

3.       Harvesting

Bridges

3.1      Roding bridge – work commenced on site in March.   

Maitai harvesting

3.2      Harvesting in the Maitai Valley is almost complete.   

Marsden Harvesting

3.3      Harvesting of Block 42.05 (around 15Ha) is complete.     

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. PF Olsen will monitor this 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 January to March. PF Olsen continue to undertake regular internal SWOs. 

6.       Other matters

Forestry High-Level Review

6.1      All consultants have been appointed with peer reviews underway to progress the work to guide the high-level review. All work, once peer reviewed, will be presented to the Subcommittee as a package for review with that work guiding development of the next Forestry Activity Management Plan.

Carbon Credit Potential from Council Indigenous Forests

6.2      Council resolved on 17 November 2021 as follows:

           Resolved CL/2021/245

           That the Council

2. Agrees to undertake a detailed assessment of all Council land under ownership and management for eligibility in the Emissions Trading Scheme (ETS); and

           Resolved CL/2021/246

           That the Council

3. Requests that eligible Council owned and managed land (including exotic forestry) be registered into the Emissions Trading Scheme before 1 April 2022.

6.3      As noted previously, updates on this matter will be reported to both this Subcommittee and the Council. Council has engaged PF Olsen to do the detailed eligibility assessment (assisted by the 1989 aerial photography held by Council) and to manage the registration process as Council’s authorised representative.

6.4      The exotic forestry application was submitted in March, but is still to be registered by the Ministry of Primary Industries (MPI) (who has advised that applications submitted before 30 April 2022 have a reasonable chance of being registered before 31 December 2022).

6.9       With respect to the indigenous forestry application the application has not been submitted by PF Olsen yet as they are dealing with a backlog within their spatial team. Once submitted it is unlikely to get registered by 31 December 2022 due to the delays from MPI. The number of units that could be earnt from the indigenous area over the current 5-year period is not large and depends on the area that MPI accepts. Other providers are also busy submitting applications, and Council would still face MPI's backlog regardless of which provider Council used. Officers are liaising with PF Olsen to move this matter forward and to give Council priority on this matter.     

           PF Olsen contract 

6.10    PF Olsen’s initial term ends on 30 June 2022 and includes an extension term of five years. A forestry high level review is underway but irrespective of the outcome of that work, a contractor is required to manage Council’s forestry.

6.11    PF Olsen are performing well under the contract and their performance has been reviewed by the independent forestry expert and following discussion with the Chair the contract has been extended for a further 5 years.

7.       Finance

7.1      An updated summary of Council budgets to December 2021 is appended as Attachment 1 (A2896464). PF Olsen’s quarterly report January to March 2022 is appended as Attachment 2 (A2896757).

8.       Alternate Uses

8.1      Council agreed to retire approximately 140Ha of forestry and consider alternate uses and an Alternate Use Plan has been approved. Refer to Attachment 3 (A2897597) for an update. Lachie Grant (Landvision) will be in attendance to update the Subcommittee further.

  

 

 

Author:          Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1:   A2896464 - Q3 Report Budget Summary 2021-22

Attachment 2:   A2896757 - PF Olsen NCC Quarterly Report - Q3 - 2021-22

Attachment 3:   A2897957 -  Alternative Species Update 25 May 22   

 

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. 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:

o Approval of forestry and harvesting management strategy and plans

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

 


Item 7: Forestry Update - Number 19: Attachment 1

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Item 7: Forestry Update - Number 19: Attachment 2

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Item 7: Forestry Update - Number 19: Attachment 3

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Item 8: Forestry Update - Number 20

 

Forestry Subcommittee

20 September 2022

 

 

REPORT R26970

Forestry Update - Number 20

     

 

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 June 2022 update.

 

2.       Recommendation

That the Forestry Subcommittee

1.    Receives the report Forestry Update - Number 20  (R26970) and its attachments (1833911234–19, 1833911234-20, 332184083–4470, 1133911234-21, and 1986768459-1897); and

2.    Notes the damage incurred to Council’s blocks following the August 2022 extreme weather event; and 

3.    Approves that approximately 24Ha of commercial forestry recently harvested in the Maitai block be retired from commercial forestry for the reasons provided in report R26970. 

3.       Forestry update – Report number 19

3.1     This report is to be read in conjunction with the previous report (number 19), that was earmarked for the 20 September 2022 Forestry Subcommittee. That meeting did not take place due to a lack of quorum.  

4.       August 2022 Severe Weather Event

4.1      The Top of the South experienced a severe weather event in August 2022 with substantial damage to the region and its infrastructure. This damage to NCC’s infrastructure has impacted on Council’s current and future harvesting as detailed below:

 

Block

Damage

Comment

Brook

Minor mid-slope failures

Low priority

Roding

Old slips on Smelter Road have opened up and slash trap washed out. Culvert crossing on Summit Road damaged.

Repairs underway

Marsden

Old slips on Glider Road opened up. New slip on Fincham road.

Repairs underway

Maitai

Two major internal slips.

See below

4.2      The Maitai Valley Road, the main access to the Maitai Dam and Maitai forestry blocks, has been severely damaged in multiple locations. This damage is currently being assessed by Council officers. However, 4WD access has been restored. Work is ongoing that will allow logging truck access to resume later in September. The harvesting crew has commenced clean-up work within the forest and will work to finish the Maitai harvest program as soon as is practicable.

5.       Other harvesting matters

5.1      It is anticipated that the Roding bridge will be completed in October 2022.     

5.2      5ha of windthrow was salvaged in the Marsden Valley in August.

6.       Future Harvesting

6.1      The Roding and Marsden forests both have harvest scheduled within the next two years. Whilst the Roding forest was scheduled to be undertaken before the Marsden blocks, Marsden may need to be brought forward due to higher wind risk. Work is ongoing to assess this risk.      

7.       Proposal to retire three Maitai block commercial forestry –

7.1      Three recently harvested Maitai blocks (approximately 24ha in total), as shown on Attachment 1 (1833911234–19), are recommended to not be replanted in commercial pine forest, but instead to be converted to alternate species. The reasons for this, for each area, include:

7.1.1   Area 1 (16.5 Ha) – This area of harvesting has yielded poor commercial returns, primarily due to the lack of road access and skid site infrastructure, and the work required to address its close proximity to the water pipeline, powerlines and Maitai River, which all negatively impacting productivity. The retirement of this area will create a larger buffer against the river on the West side which will reduce the environmental impact of subsequent harvesting in remaining stands.

7.1.2   Area 2 (5 Ha) – This small area is surrounded by native vegetation seed sources and retiring this area would improve connectivity of native areas.

7.1.3   Area 3 (2.5 Ha) - The proximity of this area to the water pipeline and the Maitai River make this a difficult area to harvest. Retiring this area would provide a buffer against the pipeline and river for future harvesting.

7.2      As the Subcommittee is aware, a high level review of forestry is underway (refer item 10) and whilst a proposal has been prepared for alternate species of these three blocks (refer to attachment 2) - it is proposed that any decision in this matter wait for that review as that review will consider possible alternative species for commercial blocks that may be retired.

7.3      However, as these blocks have been harvested a decision from this Subcommittee on retiring these three Maitai blocks from commercial productive forestry is deemed prudent (for the reasons provided), as the next Subcommittee (should it exist in this form) may well be some considerable time off in the new Council triennium. A decision will mean that these blocks are not planted in pine, but will be sowed in grass to reduce risk of erosion. 

7.4      In addition, the cost to replant these three blocks in alternative species is not currently included in the current 10 year LTP replanting and weed control budgets, which sit in and under the control of the Parks and Reserves operational activity. Currently $252,000 (for weed control) and $876,00 (for replanting) is provided in the LTP 2021/22 to 2030/31. Waiting on the outcome of the review will also allow those budgets to be revised/refreshed as part of the next Annual Plan/LTP.    

8.       Tasman Pine Forests Ltd and Waahi Taakaro harvesting

8.1      When Tasman Pine Forests Ltd harvests the block adjacent to the Waahi Taakaro Golf Club, the work will also include harvesting the small area planted by Tasman Pine Forests on Council land. PF Olsen will monitor this 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.

8.2      Tasman Pine Forests has advised that it does not intend to harvest this stand of trees in the foreseeable future. This matter will be removed from future reporting.

9.       Health and Safety

9.1      No Safe Work Observations (SWOs) were conducted by NCC between June and September. PF Olsen continues to undertake regular internal SWOs. 

10.     Forestry High-Level Review

10.1    All consultants have been appointed with peer reviews still to be finalised. A separate workshop will be scheduled with the new Council to consider those reports with a view to guiding the direction and development of the next Forestry Activity Management Plan.

11.     Carbon Credit Potential from Council Indigenous Forests

11.1    The 17 November 2021 Council meeting resolved:

Resolved CL/2021/245

That the Council:

2. Agrees to undertake a detailed assessment of all Council land under ownership and management for eligibility in the Emissions Trading Scheme (ETS); and

           Resolved CL/2021/246

That the Council:

3. Requests that eligible Council owned and managed land (including exotic forestry) be registered into the Emissions Trading Scheme before 1 April 2022.

11.2    Council has engaged PF Olsen to do the detailed eligibility assessment (assisted by the 1989 aerial photography held by Council) and to manage the registration process as Council’s authorised representative.

11.3    The exotic forestry application was submitted in March. The application is still to be registered by the Ministry of Primary Industries (MPI), which has advised that applications submitted before 30 April 2022 have a reasonable chance of being registered before 31 December 2022. MPI is experiencing issues with processing a large amount of applications and has advised via its website as below:

“Te Uru Rākau – New Zealand Forest Service has received an unprecedented volume of applications to register post-1989 forest land. This is driven by the high price of New Zealand Units (NZUs), the upcoming introduction of averaging accounting and the current mandatory emissions return (MER) period ending on 31 December 2022. In our March newsletter, we advised that we are aiming to finalise processing of all complete applications received by 30 April 2022 before the end of the MER period. Particularly given that we received applications for some 67,000 hectares in April alone, processing of many of these applications may not be completed until towards the end of the year. We will endeavour to also process applications submitted after 30 April 2022 before the end of the year. However, given the volume of applications already received, it is more likely these applications will be processed in 2023”.

11.4    With respect to the indigenous forestry application – work on ageing of the native trees is complete, showing that the native blocks investigated (a total of 26.5 hectares) would likely be eligible for ETS registration. The application submission is imminent. However, as Te Uru Rākau is currently processing the ETS application for NCC’s post-1989 exotic forest blocks they have advised that they cannot process more than one application at a time for the same participant. NCC is dependent on MPI timelines in addressing all applications, but it is unlikely that the native forest application, once submitted will be registered by 31 December 2022.     

12.     Finance

12.1    An updated summary of Council budgets to June 2022 is appended as Attachment 3 (332184083 – 4470)

12.2    PF Olsen’s Annual report to end of September 2022 is appended as Attachment 4 (1833911234-21).

13.     Valuation

13.1    The annual valuation is appended as Attachment 5 (1986768459 – 1897). As at 30 June 2022, PF Olsen assessed the market value of the standing trees owned by NCC for the financial reporting purposes at $5.846 Million plus GST (if any), down by 20.2% from $7.326 Million at 30 June 2021. The decrease in value is mainly due to the significant area harvested in the 2021-22 year. The valuation methodology applied meets New Zealand Accounting Standard NZ IAS 41 and PBE IPSAS 27, Agriculture, and was prepared following the New Zealand Institute of Forestry Forest Valuation Standards. 

14.     Alternate Uses

14.1    Council has approved an Alternate Use Plan for approximately 140ha of land it has agreed to retire. The Parks and Reserves team, at their request, will be undertaking the planting and management of blocks going from production forestry to alternative species (excluding the first weed spray after harvesting) going forward. 

Author:          Alec Louverdis, Group Manager Infrastructure

Attachments

Attachment 1:   1833911234-19 - Maitai Map

Attachment 2:   1833911234-20 - Alternative Species Update June-Aug 22

Attachment 3:   332184083-4470 - Forestry Actuals vs Budget Operating Income

Attachment 4:   1833911234-21 - PF Olsen NCC Forestry Annual Report

Attachment 5:   1986768459-1897 - NCC Forestry Tree Crop Valuation   

 

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. 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:

o Approval of forestry and harvesting management strategy and plans

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

 


Item 8: Forestry Update - Number 20: Attachment 1

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Item 8: Forestry Update - Number 20: Attachment 2

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Item 8: Forestry Update - Number 20: Attachment 3

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Item 8: Forestry Update - Number 20: Attachment 5

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