Agenda of Corporate and Strategic Committee

Meeting of the Corporate and Strategic Committee

Date: Wednesday 20 September 2017

Time: 9.00am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Subject Page

1. Welcome/Notices/Apologies

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Corporate and Strategic Committee meeting held on 24 May 2017

4. Follow-ups from Previous Corporate and Strategic Committee meetings 3

5. Call for Items of Business Not on the Agenda 7

Decision Items

6. Recommendations from the Finance, Audit and Risk Sub-committee 9

7. Remuneration Authority Consultation on Elected Representatives' Remuneration Policies 11

8. Notice of Motion from Councillor Paul Bailey 29

Information or Performance Monitoring

9. 2018-28 Long Term Plan Development Process Update 33

10. HBRC Representation Review 39

11. Verbal Update on the Clifton to Tangoio Coastal Hazards Strategy Development

12. 11.00am Presentation of the Napier City Council Aquarium Expansion Business Case

13. Human Resources 2016-17 Annual Report 53

14. Community Engagement and Communications Quarterly Update 63

15. 12 noon HB Tourism Quarterly Update 65

16. Discussion of Items Not on the Agenda 79

Decision Items (Public Excluded)

17. Confirmation of the Public Excluded Minutes of the Corporate & Strategic Committee meeting held on 24 May 2017 81

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 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 the Corporate and Strategic Committee accepts the following “Items of Business Not on the Agenda” for discussion as Item 16.

1.1. Urgent items of Business

Item Name

Reason not on Agenda

Reason discussion cannot be delayed

1.2. Minor items for discussion

Item	Topic	Councillor / Staff
1.
2.
3.

Leeanne Hooper

GOVERNANCE & CORPORATE ADMINISTRATION MANAGER

Liz Lambert

GROUP MANAGER
EXTERNAL RELATIONS

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: Recommendations from the Finance, Audit and Risk Sub-committee

Reason for Report

1. The following matters will be considered by the Finance, Audit and Risk Sub-committee on 19 September 2017 for approval.

2. The Sub-committee Chairman will provide a verbal report on the meeting, including any agreed amendments to the recommendations to the Corporate and Strategic Committee as well as an update on the schedule of Internal Audits agreed for the remainder of 2017-18.

Decision Making Process

3. These items will be specifically considered by the sub-committee, and the following proposed recommendations may be amended.

Recommendations

The Finance, Audit and Risk Sub-committee recommends that the Corporate and Strategic Committee:

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.

Risk Assessment and Management

2. Advises staff of specific risks where it believes the current level of risk is unacceptable to Council, and requests that staff report back to the December Sub-committee meeting with options and associated resources required to modify the risk profile.

3. Confirms the Sub-committee’s confidence that the risk assessment process outlined in the HBRC Risk Assessment and Management Report is an appropriate process to identify and assess organisational risks.

Reports Received

4. Notes that the following reports were provided to the Finance, Audit and Risk Sub-committee meeting:

4.1. Introduction to the Internal Audit Service Provider

4.2. Internal Audit Report – Event Response Review

4.3. Resource Management Information System Implementation Update

4.4. September 2017 Update on the Sub-Committee Work Programmes

4.5. 2016-17 Annual Report - Audit NZ Discussions.

Authored by:

Leeanne Hooper

Governance Manager

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: Remuneration Authority Consultation on Elected Representatives' Remuneration Policies

Reason for Report

1. To provide the opportunity for Council to submit on the Remuneration Authority’s consultation document on future local government remuneration setting, should there be a desire to do so.

Background

2. The Remuneration Authority has released a consultation document which is seeking views on the future of local government remuneration and how it is calculated. Over the next several weeks Remuneration Authority representatives are scheduled to attend Zone meetings to discuss the review with elected members.

3. The Authority is seeking the collective view of Council and not individual elected members or staff, and any feedback needs to be lodged with the Authority by Friday 15 December 2017.

Options Assessment

4. Councillors can either agree to develop a submission with a collective view of the proposed policies, or agree that no submission will be made.

Decision Making Process

5. 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:

5.1. The decision does not significantly alter the service provision or affect a strategic asset.

5.2. The use of the special consultative procedure is not prescribed by legislation.

5.3. The decision does not fall within the definition of Council’s policy on significance.

5.4. The persons affected by this decision are the elected representatives.

5.5. The decision is not inconsistent with an existing policy or plan.

5.6. 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

1. That the Corporate and Strategic Committee receives and notes the “Remuneration Authority Consultation on Elected Representatives' Remuneration Policies” staff report.

2. The Corporate and Strategic Committee recommends that Council:

2.1. 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.

2.2. Agrees to develop a submission with a collective view of the proposed policies, for confirmation at the 29 November 2017 Regional Council meeting to meet the Remuneration Authority deadline in December.

Authored by:

Manton Collings

Corporate Accountant

Leeanne Hooper

Governance Manager

Approved by:

Liz Lambert

Group Manager
External Relations

James Palmer

Chief Executive

Attachment/s

⇩1

Remuneration Authority Review Document

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: Notice of Motion from Councillor Paul Bailey

Reason for Report

1. To present Councillor Paul Bailey’s Notice of Motion (attached).

Process for Considering Notice of Motion

2. If there is a seconder for Cr Bailey’s Notice of Motion, the Committee will proceed with consideration of that.

3. If there is not a seconder, then the Notice lapses.

Decision Making Process

4. 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:

4.1. The decision does not significantly alter the service provision or affect a strategic asset.

4.2. The use of the special consultative procedure is not prescribed by legislation.

4.3. The decision does not fall within the definition of Council’s policy on significance.

4.4. The decision is not inconsistent with an existing policy or plan.

4.5. 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

1. That the Corporate and Strategic Committee accepts the Notice of Motion from Councillor Paul Bailey for consideration; being:

1.1. That council receives the petition and acknowledges receipt of same to First Union

1.2. That staff report back to the next Corporate and Strategic Committee

1.2.1. on progress of the review of council's tendering policy

1.2.2. when the Go Bus tender is due for renewal

1.2.3. if it is possible to renegotiate the Go Bus tender to reflect any pertinent changes to council's tendering policy.

Bailey/_______

2. The Corporate and Strategic Committee recommends that Council:

2.1. 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 under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 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.

2.2. Receives the petition and acknowledges receipt of same to First Union

2.3.

Authored by:

Leeanne Hooper

Governance Manager

Approved by:

James Palmer

Chief Executive

Attachment/s

⇩1

Notice of Motion from Councillor Paul Bailey

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: 2018-28 Long Term Plan Development Process Update

Reason for Report

1. To provide an update on the processes under way to develop the Long Term Plan, including functional reviews being carried out in parallel processes that feed into the LTP, along with a proposed 2018 Schedule of Meetings (attached) for initial feedback to enable finalisation for adoption by Council on 25 October.

Explanations of Projects feeding into LTP

2. All of Council Project Reviews

2.1. All Council output activity areas are being reviewed for their current level of expenditure, future resource demands and opportunities for scaling back or cessation

3. Capital Structure Review was initiated in July 2017, and the scope includes review of:

3.1. Current HBRC Group Investment Performance

3.2. HBRC Funding Requirements and Financial Options

3.3. PONL Funding Requirements and Financial Options

3.4. HBRIC Ltd current mandate and role in the future

3.5. Investment Policy Decisions.

4. Functional Reviews are currently being carried out, or are intended to be carried out, for collective completion by November, and include:

4.1. Communications (complete)

4.2. Land management and policy implementation (underway)

4.3. Compliance and enforcement (being commissioned)

4.4. Legal services (underway)

4.5. Biodiversity (being commissioned)

4.6. Human resources (underway)

4.7. Climate change (underway)

4.8. ICT (being commissioned)

5. A full Rates and Revenue Review is under way, including examinations of:

5.1. Whether Council should consider using Capital Value as an option to calculate and recover General Rates

5.2. Modelling potential impact to moving towards a scenario where day to day operational activity is 100% funded by rate revenue

5.3. Timing of Rates invoicing to maximise cashflow (GST etc) as recommended by the Woodham review

5.4. Potential new UAGC or targeted rates for CDEM and Coastal hazards

5.5. User fees and charges and the current private-public benefit ratios

5.6. Comparison of HBRC rates and user charges compared to other regional councils

5.7. Third party funding / partnership opportunities

5.8. The ability to fund particular types / groups of expenditure through debt

5.9. Debt funding options; commercial banks vs LGFA.

6. Council’s Financial and Investment strategies will largely be driven by the results of the Rates/Revenue and Capital Structure reviews.

7. The 30 year Infrastructure Strategy has been reviewed in light of Audit NZ feedback on the 2015 strategies they audited, and work that’s gone into the Strategy to date includes:

7.1. re-structured the Strategy to mimic best practice with regards both structure and content

7.2. the strategy flows better now and the linkages between issues (both strategic and significant) and how we manage those is clearer

7.3. sub-sections on Economic trends and affordability, natural hazards and legislation and guidance have been added

7.4. some splitting out of the critical assets and “others” (pathways, regional parks, wetlands).

8. Approaches to Partnerships

8.1. Identification of resourcing needs for co-governance and tangata whenua engagement to provide clear line of sight around costs

8.2. Assessment of costs and benefits of dedicated resource to coordinate external funding applications, in order to improve capability for leveraging additional funding.

9. People Strategy - Review of current HR capability, capacity and practice

9.1. Current HR staff capability and capacity is being reviewed in light of increased FTE count and growing Health and Safety requirements

9.2. Staff performance and development management processes will be assessed during early 2018

9.3. Remuneration system will be reviewed in first half of 2018 ahead of mid-year remuneration reviews.

10. A full independent review of ICT will be undertaken over September-October and will provide guidance of where to focus effort including:

10.1. a review of relevant business and IT documentation

10.2. an evaluation of current services and processes

10.3. Reduce costs through consolidation of software licenses and support required

10.4. recommendation of an appropriate framework

11. Development of a Technology Strategy and roadmap through the next 10 years to future proof systems and risk of failure.

Project Timelines and Progress

Completed

12. On 23 August, LTP workshop #1 was held with councillors, where the Chief Executive gave an overview of the process including the suite of reviews and strategies underway and the LTP Project Manager outlined how the project was being run in terms of project structure, key deliverables and dates.

13. At workshop #1 council feedback was also sought on:

13.1. a shared service approach for CDEM and proposal to change the way it’s funded

13.2. progress on the Capital Structure Review and HBRIC future role options

13.3. Pre-engagement

13.4. Group of activity structure

14. On 30 August, the HBRC 2017-21 Strategic Plan was adopted by Council resolution. The priority focus areas (land, water, biodiversity, services and infrastructure) from the Strategic Plan will be given highest priority for new or more funding in the LTP (using the 2017/18 financial year as the base year).

September 2017

15. The first key deliverable are the Project Reviews undertaken by budget holders. These are a bottom-up review of existing activities to signal changes to scope, timing, FTEs, OPEX and CAPEX for the next 10 years (compared to 2017/18 as the base year). This exercise will provide the Executive Team with an enterprise view of resourcing requirements for it to interrogate and prioritise, which it plans to do on 25-26 September. The findings of this exercise will inform advice to councilors on cost pressures and opportunities for savings and/or reprioritization.

16. The Executive Team will “package” together proposals for new investment into business cases under the four strategic priority areas (land, water, biodiversity and services/infrastructure). These business cases will help to determine whether the business is doing the right things to meet the council’s desired outcomes.

17. On Friday 15September, a Napier Port Board meeting will be held, at which independent consulting firm Flagstaff will present capital review options as part of the Capital Structure Review. This meeting will provide further direction for the next full Panel meeting, scheduled Friday 29 September.

October 2017

18. On October 11, Council LTP workshop #2 will seek councillors’ feedback on:

18.1. Group of Activities structure

18.2. First draft findings of the Capital Structure Review Panel

18.3. Overview of Project Reviews

18.4. Revenue and Finance Policy, fees and charges and Revenue and Rates Review findings to gauge council’s appetite for change and agree the scope of work.

18.5. Preparation for pre-engagement with TAs including CDEM regional rate.

November 2017

19. Council LTP workshop #3 is scheduled 8 November and will potentially consider:

19.1. Consideration of funding business cases

19.2. Draft Financial and Investment strategies

19.3. Presentation of IT review findings

19.4. Draft Asset Management Policy, Infrastructure Strategy and Asset Management Plans

19.5. Statement of Service Performance for each activity (i.e. levels of service and performance measures).

December 2017

20. Council LTP workshops #4 and 5 are scheduled 11 December, following the Corporate & Strategic Committee meeting and 13 December, following the Regional Council meeting respectively. These workshops will seek Council’s provisional agreement to the budget strawman, consultation topics, Financial Strategies as well as other funding policies.

January – March 2018

21. At the Council meeting on 31 January council will be asked to adopt the budget estimates. At a Council workshop in February, feedback will be sought on the Consultation Document and other supporting documents.

22. In early March 2018, Council will adopt the Consultation Document to enable consultation and submissions period to run from mid March through mid April.

23. Hearings and deliberations will be held in May/June with adoption of the final LTP in late June 2018.

Decision Making Process

24. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That the Corporate and Strategic Committee receives and notes the “2018-28 Long Term Plan Development Process Update” staff report.

Authored by:

Manton Collings

Corporate Accountant

Desiree Cull

Programme Leader

Melissa des Landes

Management Accountant

Leeanne Hooper

Governance Manager

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

Liz Lambert

Group Manager
External Relations

James Palmer

Chief Executive

Attachment/s

⇩1

First Draft Proposed 2018 HBRC Meetings Schedule

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

SUBJECT: HBRC Representation Review

Reason for Report

1. To outline the representation review process required ahead of the 2019 election, and to provide Councillors with an overview of the statutory requirements and timelines.

2. In conducting the representation review the Council must finally determine by resolution:

2.1. The proposed number of constituencies

2.2. The proposed name and the proposed boundaries of each constituency

2.3. The number of members proposed to be elected by the electors of each constituency.

Background

3. The Local Electoral Act 2001 (LEA), together with the Local Government Act 2002 (LGA), specify the requirements for representation arrangements, including provisions for representation reviews which must be undertaken at least once in every period of six years. HBRC’s last review was undertaken in 2012.

4. In addition to the statutory principles and requirements, it is also beneficial to be aware of the outcome of the representation reviews completed since the Regional Council came into existence in 1989.

5. In 1989, the Local Government Commission (LGC), when carrying out the reorganisation of Local Government at that time, determined the number of members (14), the constituencies that would exist and the numbers that would represent each. For the 1992 elections, there were further LGA amendments which reduced the number of HBRC elected representatives from 14 to 9, including specifics identifying constituencies and the numbers representing each.

6. Since that time, there have been five representation reviews conducted by Council with:

6.1. prior to the 2006 review only one submission received on Council’s proposals, and no referrals to the LGC

6.2. The 2006 review received 141 submissions and was referred to the LGC for final determination. The Commission’s 2007 determination was for 9 councillors representing the four constituencies of Wairoa (1), Napier (3), Hastings (4) and Central Hawke’s Bay (1); Wairoa identified as a ‘community of interest’ requiring a separate constituency to ensure effective representation

6.3. The 2012 review received 7 submissions and 2 subsequent appeals against the final proposal with the final determination (attached) of the LGC finding in favour of those appeals and resulting in the current Representation Arrangement of HBRC with 5 constituencies being represented by 9 councillors; being Central Hawke’s Bay (1), Ngaruroro (1), Hastings (3), Napier (3) and Wairoa (1).

Statutory Requirements

7. Part 1A of the LEA (attached) contains various principles relevant to representation reviews, including the paramount consideration that local authorities, elected officers and other electoral officials must, in making decisions under the Act, adhere to ''fair and effective representation for individuals and communities''.

8. In respect to principles contained within the Local Government Act, the relevant sections are Part 2 – Purpose of Local Government, sections 10 and 14 as well as Schedule 6 (attached).

9. It is important for all Councillors to be fully conversant with these statutory requirements as they establish the underlying principles and requirements as they relate to a representation review.

Community Engagement and Consultation

10. The process for consultation is outlined as part of the Project Plan (attached). Councillors need to be aware that depending on the nature of any changes proposed in Council’s “Initial Proposal” there may be a low level of interest and input on the matter, although this view is based solely on historical indications and may not reflect current community interest.

11. Therefore, staff have not made a specific recommendation as to the consultation that could occur before a formal proposal is put forward because to a substantial degree it will be determined by the extent of any changes proposed.

Indicative Timelines

12. The timelines proposed by staff in the Project Plan have been developed to meet statutory requirements while taking into account the workloads associated with development of the 2018-28 Long Term Plan.

Decision Making Process

13. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision-making provisions do not apply.

Recommendations

That the Corporate and Strategic Committee:

1. Receives and notes the “2018-19 Representation Review” staff report.

2. Considers the matters raised in this item, provides feedback to staff identifying any specific proposals for alternatives to the current representation arrangements to be developed for Council’s consideration and agrees to the indicative timeframes for the Review as per the Project Plan.

Authored by:

Leeanne Hooper

Governance Manager

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

⇩1	Local Government Committee 2013 Determination of Representation Arrangements for the Hawke's Bay Regional Council
⇩2	Proposed Representation Review Project Plan
⇨3	Extract of Relevant Information - Local Government Commission Guidelines for Representation Reviews	Under Separate Cover
⇨4	Local Electoral Act Pt1A Representation Review Requirements	Under Separate Cover
⇨5	Local Government Act Representation Review Requirements	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: Human Resources 2016-17 Annual Report

Reason for Report

1. To provide Councillors with an overview of the key human resource metrics recorded for the year 1 July 2016 to 1 July 2017, along with an update of key health and safety information for the same period. A copy of the HR Highlights document is attached.

Key Metrics

Staff Numbers (Previous year in brackets)

2. As at 1 July 2017 200.5 FTE (187.3 FTE).

2.1. Dalton Street (including Waipukurau and Wairoa): 171.24 FTE (159.3)

2.2. Works Group (Taradale and Waipukurau): 29 FTE (28)

3. Turnover for the year ending 30 June 2017 was 8% (5% in 2016). 16 staff left and 10 staff members were internally promoted to a new position during the year.

4. The Lawson Williams – HRINZ New Zealand Staff Turnover Survey indicated an average turnover of 18.8% for contributing organisations in 2016, and 12.3% for contributing local government organisations.

5. Extensive exit interviews are held with all departing staff to get feedback on a range of issues related to their work while with Council and the reasons for leaving. For this past year that feedback has not indicated any concerning trends related to the reason for leaving.

6. Council employed 15 (19) students during the 2016-17 summer period over a range of activities.

Staff Leave Usage

7. The average number of sick days used was 5.5, down on the 2016 total of 6.8 days. There was also a decrease in the total number of sick days used, 986 days compared to 1035 in 2016. The number of staff taking more than the annual allocation of 10 days decreased from 22% last year to 11% - this is only possible where staff have accumulated sick leave over the term of their employment to use.

8. A recent Business NZ/Southern Cross report indicated that 4.4 days is the national average for sick leave days taken, but that the public sector generally takes 2 to 2.5 days more than the private sector.

9. Annual leave usage remained constant at an average of 19.4 days per staff.

Average Age/Tenure/Workforce Composition

10. The average age of Dalton street staff was 45 and the average tenure 10 years.

11. For Works Group staff the average age was 49 with an average tenure of 12.5 years.

12. In relation to gender, while the overall gender numbers are comparable the number of female staff in manager/team leader roles is significantly below their male counterparts. This is not an ideal situation and something we are conscious of when employing. For a number of roles we have significant difficulty attracting suitably experienced and qualified applicants. Our underpinning value is to appoint the best person for the role.

Health and Safety

13. The loss of Michael Taylor in a tragic work accident is an event that had a profound impact on the organisation.

14. While it seems that protocols and procedures were effective and well carried out, it is still a traumatic event to deal with. We have received no indication from WorkSafe of any further action they intend to take.

15. Because of the accident, a full review of lone worker device suitability has been carried out by an external agency specialising in emergency response devices. Their report indicated that what we have in place is effective but gave us some options to consider, particularly in terms of monitoring.

16. Council retained tertiary level in ACC’s Workplace Safety Management Practices programme. This is effective for two years to June 2018 when the programme will be discontinued by ACC.

17. Dalton Street staff had 27 work related ‘incidents’ reported through the year. 13 were ‘near miss’ incidents (no injury), the rest were slips, falls, cuts, strains but with no resulting time off work.

18. Works Group reported 16 work related accidents this year, with 3 requiring a total of 25.5 days off work.

19. This Council has joined with the other four TLAs to implement a contractor ‘pre approval’ process to ensure that our many contractors are assessed against a common criteria and that the process is done effectively by an organisation purely focused on this task. We have chosen to work with Sitewise as the provider of this service. A large number of contractors have commented on the value of the process particularly the smaller operators, and we have actively worked with a number to assist them achieve the required level of compliance.

20. There is little doubt that the requirements of the Health and Safety at Work Act has had a positive impact on health and safety awareness in the work place. It has also meant that there is an increased need to monitor a whole range of work practices to ensure there is good compliance and that supervisors are taking the messages ‘on board’ and ensuring staff are kept safe and not exposed to unnecessary risk. It is not about what is written; it is what is done that needs effective monitoring.

21. A significant number of employers have now appointed health and safety staff to ensure compliance and due diligence is effectively targeted. At present, Council engages a consultant to provide ‘extra’ assistance in the health and safety area, but a dedicated resource, provided internally, would provide further assurance of effective management of health and safety and has become the norm for many organisations under the new legislation.

Staff Training and Qualifications

22. The training budget was 1.7% of the total salary budget which is a decrease on last year’s 2.4%.

23. The main focus for training has remained on leadership development and we have continued to identify appropriate staff to undertake the training programme developed for this purpose. Those that attend have indicated that the content and relevance has had a significant positive impact on their work activities. A number of those staff that have attended this training have moved into leadership roles in the Council or were new to leadership roles.

24. This year we also undertook a comprehensive, focused training programme for all managers and team leaders that encompasses on line tutorials and one on one coaching over a 12 month period.

25. The overall staff qualifications can be seen in the attached HR Highlights. Over 100 staff have a degree or above qualification, including 8 with PhDs. This reflects the need for experienced and well qualified staff to undertake the variety and range of work required of Council.

26. It also reinforces the need to source and retain skilled and qualified staff who are appropriate to undertake the complex requirements of the Council’s work. There is further comment on this below.

Industrial

27. All supervising staff are employed under individual employment agreements.

28. There are two current collective employment agreements, both are three year agreements and have recently been renegotiated to expire in 2020. The Dalton Street Collective Agreement covers under half the staff whose work is covered by this agreement; a majority have chosen individual agreements.

Further Commentary

29. Several issues face Council in the coming years related to the need for skilled and experienced staff in a range of professions. This includes our ability to attract and retain skilled staff and how to deal with an ‘aging workforce’ that holds considerable institutional knowledge.

30. We presently have significant difficulty finding suitable candidates to interview for a design engineer, a principal ground water scientist and a senior planner. While we will eventually find the best candidate with external assistance, there is invariably ‘down time’ while searching, which affects others’ workloads and delivery deadlines.

31. Frequently we find that regional councils recruit from one and other, thereby creating a flow on effect and in the long run creating a bigger problem.

32. Looking to the future, some roles that are presently held by staff considering retirement may become harder to fill as the number of younger people taking up the specific career is diminishing, e.g. river engineering and ground water science. This is a national issue for all regional councils and unitary authorities and something we are collectively looking to address with a range of measures including internships, scholarships and improved awareness of career opportunities through career advisors at high schools.

33. New work streams can also cause a shortage of potential candidates, e.g. fresh water scientists, senior land management advisors and biodiversity advisors.

34. As with any market shortage, this can impact adversely on pay ranges. The ability to pay the ‘market rate’ is important in order to get experienced staff and to retain them.

35. A number of employers, including local government, pay ‘across the board’ increases that do not always recognise the ‘market rate’ and then they find themselves having to make significant adjustments to attract new staff.

36. While paying the ‘market rate’ can put pressure on salary budgets, in the longer term it is more effective in attracting new staff and satisfying the salary expectations of existing staff. It also moderates the need for a significant movement in salaries if they have not kept up with market rates which can happen when ‘across the board’ increases are applied to all roles.

37. The ‘living wage’ has been raised in Council in previous discussions. At present, all staff are paid above the ‘living wage’.

Decision Making Process

38. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That the Corporate and Strategic Committee receives and notes the “Human Resources 2016-17 Annual Report”.

Authored by:

Viv Moule

Human Resources Manager

Approved by:

James Palmer

Chief Executive

Attachment/s

⇩1

HR Annual Report Highlights 2016-2017

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

Subject: Community Engagement and Communications Quarterly Update

Reason for Report

1. This report provides an update on Council’s communications activities focused on the fourth quarter (Q4) of 2016-17, including July-August due to the timing of this item.

Background

2. Communications during Q4 have been consistent with the annual plan set by the Communications team, giving attention to the Annual Plan 2017-18, the Regional Pest Management Strategy and Coastal Hazards projects.

3. Continuing support was also given to the Tukituki Plan, TANK Plan Change, Biodiversity, Transport and Open Spaces projects.

4. Issues in the media spotlight during Q4 were the Ruataniwha scheme (39 articles in print/ online), water quality (24), various Council matters (19), the Havelock North water inquiry (13) and the Water Conservation Order (6 in August).

Summary: April – August 2017

5. Media ran 192 articles on HBRC activities from April to August.

6. The main media were Hawke’s Bay Today (127), Wairoa Star (30), Stuff/ DomPost (9), TVNZ (4), RadioNZ (4), NewstalkZB (4), NBR (4), NewsCollective (3), Newshub (2) and miscellaneous (5).

7. The majority of media reporting is typically neutral. A burst of negative items during May and June related to ‘secret meetings’ (2), the Ruataniwha scheme (2), the Havelock North water issue (2) and an OIA email issue (2).

April

May

June

July

August

7 releases

25 media articles

1 video

6 e-newsletters

47 social posts

120,000 impressions

10 releases

45 media articles

2 videos

6 e-newsletters

60 social posts
59,738 impressions

14 releases

37 media articles
1 video

5 e-newsletters

66 social posts

73,482 impressions

10 releases

44 articles

1 video

5 e-newsletters
66 social posts

61,459 impressions

8 releases

41 media articles

6 e-newsletters

85 social posts

151,382 impressions

Looking Ahead – the next three months

8. The focus for the coming months is to significantly expand the Council’s use of video. The aim is to raise public awareness of environmental science activities related to the Council’s state of the environment (SOE) programme and to increase the visibility of the TANK Plan Change.

9. Staff will further promote community engagement in the Coastal Hazards project and increase momentum for Farm Plan uptake in the Tukituki catchment.

10. Communications staff continuously review emerging issues in dialogue with members of the Executive and Councillors.

11. Staff will give support to Council’s lead of the Cape to City transforming Biodiversity conference (14-16 November) and sponsorship of the Hydrological conference (28 November - 1 December). Staff will also support Council’s profile at the region’s A&P shows in Hastings (19-20 October), Central HB (9-11 November) and Wairoa (18-20 January)

12. Staff will support changes to the Council’s mission, vision and values during October.

Decision Making Process

13. Staff have assessed the requirements of the Local Government Act 2002 in relation to this item and have concluded that, as this report is for information only, the decision making provisions do not apply.

Recommendation

That the Corporate and Strategic Committee receives the “Community Engagement & Communications Quarterly Update” staff report.

Authored by:

Drew Broadley

Community Engagement and Communications Manager

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 20 September 2017

SUBJECT: Confirmation of Public Excluded Minutes

That the Council excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 17 with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48 (1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution being:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Confirmation of Public Excluded Minutes of the Corporate and Strategic Committee Meeting held on 15 February 2017	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Capital Structure Review Advisory Committee - Appointment of Independent Members	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Authored by:

Leeanne Hooper

Governance Manager

Approved by:

Liz Lambert

Group Manager
External Relations