Agenda of Regional Council Meeting

Meeting of the Hawke's Bay Regional Council

Date: Wednesday 22 February 2017

Time: 9.00am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Subject Page

1. Welcome/Apologies/Notices

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Regional Council Meeting held on 25 January 2017

4. Follow-up Items from Previous Regional Council Meetings 3

5. Call for Items of Business Not on the Agenda 9

Decision Items

6. Affixing of Common Seal 11

7. 2016-19 Triennial Agreement Adoption 13

8. Recommendations from the Maori Committee 27

9. Recommendations from the Corporate and Strategic Committee 29

Information or Performance Monitoring

10. Items of Business Not on the Agenda 33

11. Chairman’s Report

Public Excluded Decision Items

12. Recommendation from the Corporate & Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 22 February 2017

Subject: Call for Items of Business Not on the Agenda

Reason for Report

1. Standing order 9.12 states:

“A meeting may deal with an item of business that is not on the agenda where the meeting resolves to deal with that item and the Chairperson provides the following information during the public part of the meeting:

(a) the reason the item is not on the agenda; and

(b) the reason why the discussion of the item cannot be delayed until a subsequent meeting.

Items not on the agenda may be brought before the meeting through a report from either the Chief Executive or the Chairperson.

Please note that nothing in this standing order removes the requirement to meet the provisions of Part 6, LGA 2002 with regard to consultation and decision making.”

2. In addition, standing order 9.13 allows “A meeting may discuss an item that is not on the agenda only if it is a minor matter relating to the general business of the meeting and the Chairperson explains at the beginning of the public part of the meeting that the item will be discussed. However, the meeting may not make a resolution, decision or recommendation about the item, except to refer it to a subsequent meeting for further discussion.”

Recommendations

1. That Council accepts the following “Items of Business Not on the Agenda” for discussion as Item 10:

1.1. Urgent items of Business (supported by tabled CE or Chairpersons’s report)

Item Name

Reason not on Agenda

Reason discussion cannot be delayed

1.2. Minor items for discussion only

Item	Topic	Councillor / Staff
1.
2.
3.

Leeanne Hooper

GOVERNANCE & CORPORATE ADMINISTRATION MANAGER

Liz Lambert

GROUP MANAGER
EXTERNAL RELATIONS

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 22 February 2017

Subject: Affixing of Common Seal

Reason for Report

1. The Common Seal of the Council has been affixed to the following documents and signed by the Chairman or Deputy Chairman and Chief Executive or a Group Manager.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 223

DP 10728

CT C1/302

- Transfer

1.1.2 Lot 13

DP 13899

CT F4/432

- Transfer

1.1.3 Lot 40

DP 7201

CT B4/941

- Transfer

1.1.4 Lot 285

DP 10775

CT 211863

- Agreement for Sale and Purchase

- Transfer

1.1.5 Lot 108

DP 14449

CT G2/704

- Agreement for Sale and Purchase

1.1.6 Lot 42

DP 4488

CT 55/143

- Agreement for Sale and Purchase

4097

4098

4099

4100

4101

4102

4103

24 January 2017

31 January 2017

2 February 2017

8 February 2017

13 February 2017

1.2

Partial Surrender of Easement

Kenny Road North – Te Awa Stage 8C Subdivision

Plan 505589

CT 743853

4096

20 January 2017

Decision Making Process

2. Council is required to make every decision in accordance with the provisions of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained within these sections of the Act in relation to this item and have concluded:

2.1 Council can exercise its discretion under Section 79(1)(a) and 82(3) of the Act and make a decision on this issue without conferring directly with the community or others due to the nature and significance of the issue to be considered and decided

2.2 That the decision to apply the Common Seal reflects previous policy or other decisions of Council which (where applicable) will have been subject to the Act’s required decision making process.

Recommendations

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2. Confirms the action to affix the Common Seal.

Authored by:

Diane Wisely

Executive Assistant

Approved by:

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 22 February 2017

Subject: 2016-19 Triennial Agreement Adoption

Reason for Report

1. Council considered the previous Triennial Agreement (2013-16) at the meeting on 25 January 2017, providing feedback to the Chief Executive for taking forward to a meeting of the Mayors and Chairman to agree the final content of the Agreement for adoption.

Final Triennial Agreement

2. There have been two meetings since the January 25 Council meeting. One of these involved staff from all of the primary party Councils to consider changes to the Agreement. The proposed staff changes recognises the progress that has been made across a number of areas in the past triennium and references the formal and informal cooperation that already exists between local authorities, including Matariki – the regional economic development strategy, the HB LIFT/Intersectoral Group, and HBLASS.

3. The existing Mayoral Forum is also acknowledged as the basis for regular discussions on the Agreement, and on areas of collaboration.

4. Arising from the Inquiry into the Havelock North Drinking Water Supply it is also recognised that new priority for collaboration is in the area of water management.

5. The changes were forwarded to the political representatives from all seven councils for consideration, amendment and final agreement. The Mayors and Chair took part in a teleconference hosted by the Chair of HBRC.

6. Their discussions and decisions have resulted in the appended Triennial Agreement being agreed to by the Mayors and Chair of all seven Councils for adoption. It is now put before Council for formal adoption.

Decision Making Process

7. Council is required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

7.1. The Triennial Agreement is a legislative requirement contained within the Local Government Act, so there is no option for Council to not agree a new Agreement for the 2016-19 triennium.

7.2. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

That Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2. Adopts the 2016-19 Triennial Agreement that has been prepared in accordance with the requirements contained within the Local Government Act 2002 and the Resource Management Act 1991 as agreed to by the Mayors and Chair of the seven parties to the agreement.

Authored and Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

⇩1

Final Triennial Agreement 2016-19

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 22 February 2017

SUBJECT: Recommendations from the Maori Committee

Reason for Report

1. The following matters were considered by the Māori Committee on 14 February 2017 and are now presented for consideration and approval.

Decision Making Process

2. These items have been specifically considered at the Committee level.

Recommendations:

The Māori Committee recommends that Council:

Māori Committee Charter And Terms of Reference

2. Notes that the “Māori Committee Charter and Terms of Reference” will be finalised at the Māori Committee meeting on11 April 2017, for then recommending to Council for adoption and signing.

Confirmation of Māori Committee Representation

4. That Council confirms the appointments of:

4.1. Mr Peter Eden as the Māori Committee representative for Te Taiwhenua O Te Whanganui-a- Orotū

4.2. Mr Rangi Puna as the Māori Committee representative for Mana Ahuriri Trust

4.3. Ms Charmaine Butler as an interim representative for Maungaharuru Tangitu Trust pending a permanent appointment

4.4. Mr Paora Sciascia as the Māori Committee representative for Te Taiwhenua o Tamatea.

and updates the membership list in the Māori Committee Terms of Reference accordingly.

Reports Received

5. Notes that the following reports were provided to the Maori Committee meeting.

5.1 Verbal Update on Current Issues by CE

5.2 Identification of Tangata Whenua in Resource Consent Application and Notification Decision Processes.

5.3 Lake Tutira Ecological Modelling Report

5.4 Re-release of Rabbit Calicivirus (RCD)

5.5 Statutory Advocacy Update.

Authored by:

Judy Buttery

Governance Administration Assistant

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Wednesday 22 February 2017

Subject: Recommendations from the Corporate and Strategic Committee

Reason for Report

1. The following matters were considered for approval by the Corporate and Strategic Committee meeting on 15 February 2017, and additional detail sought in relation to several items considered at that meeting and at the Finance, Audit and Risk Sub-committee meeting on 31 January 2017 is provided following.

HBRIC Ltd Director Appointment Process

2. Council’s Policy on Appointment and Remuneration of Directors (adopted by resolution on 26 March 2014) states:

2.1. The purpose of this policy is to set out, in accordance with Section 57(1) of the Local Government Act 2002 (the Act), an objective and transparent process for:

2.1.1. The identification and consideration of the skills, knowledge and experience required of directors of a Council organisation.

2.1.2. The appointment of directors to a Council organisation.

2.1.3. The remuneration of directors of a Council organisation.

2.1.4. Specifically, under the heading “HBRIC Ltd Director appointment process and Identification of required skills, knowledge and experience” the policy states:

2.2. The Council will establish a Council Appointments Committee after the triennial Council election to recommend to the Council the appointment of Council and independent Directors to HBRIC Ltd. This committee will be comprised of four members who are not seeking appointment to the HBRIC Ltd Board. Where possible the committee members will include the current chair of HBRIC Ltd, a Councillor, a recently retired Councillor and an external experienced director.

3. In order to clarify the requirements of the Policy, it is suggested that the following recommendation for amendment be included, and that the recommendation from the Corporate and Strategic Committee be confirmed as resolved.

3.1. The Council will establish a Council Appointments Committee after the triennial Council election to recommend to the Council the appointment of Council and independent Directors to HBRIC Ltd. This committee will be comprised of four members who are not seeking appointment to the HBRIC Ltd Board. Where possible the committee members will include the current Chair of HBRIC Ltd, two current councillors, and an external experienced director.

Council Chambers Upgrades

4. A breakdown of costs for the upcoming Council Chamber upgrades, including replacement of furniture, follows as requested.

Item(s)	Cost estimate / Amount Budgeted	Financial year budgeted
Tables & chairs in Ahuriri Room	$ 7851	2016-17
Replacement of furniture & drapes in Council Chamber, painting & lighting	$ 45,700	2016-17 & 2017-18
Upgrade AV in Council Chamber to wireless microphones	$ 60,000	2017-18
Carpet replacement	$ 70,000	2018-19

Recommendations from the Finance, Audit and Risk Sub-committee

Six monthly Report on Risk Assessment

5. The sub-committee has recommended that a comprehensive review of Council’s Risk Assessment and Management processes be undertaken in the period leading up to the next report to the Finance, Audit and Risk Sub-committee meeting on 19 September.

Audit NZ Management Report on the 2015-16 Annual Report

6. Audit NZ has asked that consideration be given to the alignment of the Napier Port financial year balance date with the Group’s financial year balance date, being 30 June.

Sub-committee Work Programme

7. The work programme for the Finance, Audit and Risk Sub-committee was provided for agreement and, through discussions, added to as follows.

Task	Item	Scheduled / Status
Internal Audits	Fraud Detection and Prevention Review Report	completed
	Event Response Review	May 2017 FA&R meeting
	Taxation Review	May 2-17 FA&R meeting
	Decide on Internal Audit Programme for 2017-18	September 2017FA&R meeting
Risk Assessment & Management	Reporting on risks (6-monthly) affecting Council	January & September FA&R meetings
Risk Assessment & Management	Review previous 6-month Risk Assessment to note changes / improvements / areas that require attention
	Sub-committee to carry out detailed review of individual Group’s Risk Management (as part of the programmed reviews of activities)
Insurance	Council’s proposed 2017-18 Insurance programme	May 2017 FA&R meeting
Annual Report	Discussion on the major issues (if any) in the audit report.	Auditor scheduled to attend 19 September 2017 FA&R meeting
Annual Report	Discussion on Audit Management Letter	Auditor scheduled to attend 4 December 2017 FA&R meeting

8. It was agreed that a comprehensive review of the Council’s capital structure be undertaken given the significant value that investment can and could make to Hawke’s Bay’s long term prosperity and resilience, taking into account the values of dividends in supporting Council operations.

9. Also, the sub-committee will embark on an overall review of Council expenditure on delivery of functions with a view to ensuring and or enhancing efficiency.

Decision Making Process

10. These items were specifically considered at the Committee level, and the following proposed recommendations from the Committee have been amended in line with the additional information sought from the Chief Executive

Recommendations

The Corporate and Strategic Committee recommends that Council:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy and that Council can exercise its discretion and make decisions on these issues without conferring directly with the community.

HBRIC Ltd Independent Director Recruitments and Appointments

2. Commences the process for recruiting a Chairman of HBRIC Ltd with urgency using the process, coordinated through the HBRC Chief Executive, of:

2.1. The HBRC CE meets with the Appointments Committee to establish an agreed position on the key criteria (required skills, knowledge and experience necessary for an effective board) for the role the HBRIC Ltd Chairman

2.2. Upon agreement of those criteria, expressions of interest in the role of the HBRIC Ltd Chairman are sought by way of advertisements in both local and potentially national media

2.3. On receipt of expressions of interest a short list of candidates is compiled

2.4. Shortlisted candidates are interviewed by the Appointments Committee with the preferred candidate being recommended to the full Council for ratification

2.5. Given the significance of the role it may be that the preferred candidate meets with the full Council prior to finalisation of the process

2.6. Councilors may have possible candidates in mind for this role and if this is the case, they should draw the Appointments Committee’s attention to potential candidates and encourage the person(s) to express interest through the process.

3. Amends the Policy on Appointment and Remuneration of Directors to reflect the composition following; being:

3.1. The Council will establish a Council Appointments Committee after the triennial Council election to recommend to the Council the appointment of Council and independent Directors to HBRIC Ltd. This committee will be comprised of four members who are not seeking appointment to the HBRIC Ltd Board. Where possible the committee members will include the current Chair of HBRIC Ltd, two current councillors, and an external experienced director.

4. Confirms the composition of the Appointments Panel being two elected councilors, the current Chairman of HBRIC Ltd and one independent experienced director, being:

4.1. Mr Sam Robinson (current HBRIC Ltd Chairman)

4.2. Cr x

4.3. Cr y

4.4. Independent external experienced director to be confirmed.

Recommendations from the Finance, Audit & Risk Sub-committee

Six Monthly Report on Risk Assessment Management

5. Undertakes a comprehensive review of the HBRC Risk Assessment and Management process to ensure major strategic risks to the public and environment are appropriately managed.

Wairoa-Gisborne Rail Corridor

6. Continues to offer its support for the preservation and preferably restoration of rail freight options for the Wairoa to Gisborne section of the Napier-Gisborne rail line.

Council Chambers Upgrades

7. Approves the upgrades of the Ahuriri Room and Council Chamber including replacement of the chairs and tables and repainting of the Council Chamber to be carried out over the remainder of the current financial year and ensuing years as budgeted.

8. Initiates discussions with tangata whenua representatives on the Maori Committee and Co-Chair of the Regional Planning Committee in relation to upgrading the foyer and Council Chamber to better represent the region and its culture.

Reports Received

9. Notes that the following reports were provided to the Corporate and Strategic Committee meeting:

9.1. HBRC – ACC: Sale of Leasehold Land Cashflows

Authored by:

Leeanne Hooper

Governance Manager

Approved by:

Liz Lambert

Group Manager
External Relations

Andrew Newman

Chief Executive

Attachment/s

There are no attachments for this report.