Minutes of Strategic Planning and Finance Committee

1. WELCOME/APOLOGIES/NOTICES

The Chairman welcomed everyone to the meeting, with a special welcome to Mrs Jan Aspinall who was attending her first meeting as the Maori Committee representative.

The Chairman also welcomed the Chairman of Environment Waikato, Mr Peter Buckley and Environment Waikato Councillors Messrs Simon Fryer and Norm Barker and Mrs Laurie Burdett who is also the constituency member for Taupo.

Mr Buckley thanked Chairman Wilson for the opportunity to address the meeting and said Environment Waikato looked forward to building relationships between both Councils.

An apology was received from Councillor McGregor

von Dadelszen/Scott

CARRIED

2. CONFLICT OF INTEREST DECLARATIONS

There were no conflicts of interest declarations made.

3. CONFIRMATION OF MINUTES OF the Strategic Planning and Finance Committee held on 17 November 2010

Minutes of the Strategic Planning and Finance Committee held on Wednesday, 17 November 2010, a copy having been circulated prior to the meeting, were confirmed as a true and accurate record of the meeting following amendment.

von Dadelszen/Rose

CARRIED

4. Matters Arising from Minutes of the Strategic Planning and Finance Committee held on Wednesday 17 November 2010.

11. General Business – Te Matapuna Conference

Copies of transcripts from the Te Matapuna Conference had not been received by Council for distribution.

8. Future Scenarios Update

Councillor Remmerswaal congratulated staff on the production of the Future Scenarios document.

Councillor Dick requested that the utilisation plan for the Hawke’s Bay Futures Scenarios titled “HB2050 What’s the Story” be included in the Actions Items list.

Action Items from Strategic Planning and Finance Meetings

2. Regional Water Symposium

Concern was expressed about the external costs of the Symposium and following discussion the Committee requested further information on the internal staff costs.

Resolution:

That the Committee receives the report “Action Items from Strategic Planning and Finance Meetings”.

Gilbertson/Remmerswaal

CARRIED

6.	Consideration of General Business Items 1. Coastal Policy Statement - Waimarama 2. Xmas Cards 3. National Policy Statement – Submission on Indigenous Biodiversity

Napier Leasehold Land - Socio Economic Impact Assessment

Mr Drury stated that Council resolved at its 28 July 2010 meeting that an independent Social Impact Study addressing the financial circumstances of Regional Council leaseholders be undertaken. Mr Drury introduced Mr Sean Bevin of Economic Solutions Limited who had been contracted to undertake the study and Mr John Keenan, Financial Accountant.

Mr Bevin gave a powerpoint presentation which outlined the process he had undertaken, the findings from a survey sent to all leaseholders, suggestions for Council’s approach in the future and recommendations for the Committee to consider.

The Committee congratulated Mr Bevin on his report and discussed the survey results. The Committee noted the availability of the Accommodation Supplement which eligible leaseholders could obtain through WINZ. They also noted that the current average annual rental of lessees whose existing lease contracts expire during the next 10 years range from $970 - $1,900 but following the lease renewal the average rental range will be approx $4,380 - $8,530. The Committee also discussed the probability that following lease renewals there would be a number of new average rental levels being higher than annual average mortgage payments across NZ households which is approx $6,100.

In response to a question, Mr Keenan advised that time restraints had restricted staff from undertaking ongoing communication with leaseholders, a newsletter had not been prepared and distributed to leaseholders for some time and agreed the proposed lessee service to be offered by Council would improve the current lessee assistance operated by Council which includes the Deferred Payment option.

In response to a further question about the number of crossleased properties, Mr Keenan advised that from survey results it showed 45% of the property tenure was crosslease with current Council figures showing that there was a total of 250 crosslease properties with perhaps up to 8 units on one crosslease property. Mr Keenan also confirmed surveys were not sent to landlords –the survey was sent to the owner/occupier of the leasehold property.

Concern was expressed that the difficult financial situations being faced by leaseholders was not uncommon throughout New Zealand and why should Napier leaseholders be treated as a special case. The Committee noted that currently 59% of the leaseholders surveyed have mortgages and leasehold payments to meet.

The Committee discussed Council’s deferred Payment Scheme and the current and proposed new policies. Mr Drury confirmed that the Deferred Payment Scheme which was set up in 1990 does have an effect on Council’s cash flow, only owner occupiers are able to access the Scheme not landlords and there had been a resistance in the past to sign up to the Scheme because of equity issues. Currently there were only 5 leaseholders in the Scheme.

In response to a question, Mr Keenan confirmed that currently trading banks were not lending on leasehold properties with leases expiring before 2016 as there was concern that once the lease had been renewed property owners could be unable to meet their mortgage payments as well as the new lease payment.

Concern was expressed that if land values fell after leaseholders had renewed their lease, those leaseholders would be disadvantaged.

The Committee requested a further report be prepared by Economic Solutions Limited to clarify financial commitments of leaseholders with mortgages as compared to other property owners with only mortgage commitments.

Resolutions

That the Strategic Planning and Finance Committee agree:

1. That the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance 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 due to the nature and significance of the issue to be considered and decided.

2. That Council implements a proactive approach in the future to assisting its residential lessees facing financial issues with regard to their rental payments, involving increased communication with lessees and the provision of financial support and assistance to lessees.

3. That with regard to increased communication with lessees, the Council establishes a dedicated ‘Lessee Service’ (including a total staff time allocation of 0.3 FTEs) within its organisation, providing the range of lessee services and activities indicated in Section 7.6 of Mr Bevin’s report.

4. That the ‘Lessee Service’, amongst other things, works closely with lessees facing financial hardship in the payment of their rentals, initially in preparing an application to Work and Income New Zealand for receipt of the Government’s Accommodation Supplement.

5. That the Deferred Rental Scheme remains the primary Council mechanism for providing financial support to lessees facing difficulty in making their rental payments.

6. That the following changes be made to the Deferred Rental Scheme in terms of its future application:

6.1 A minimum annual rental payment of $3,650 to be paid by all lessees using the scheme.

6.2 Interest to be charged annually on the deferred rental portion at the prevailing 90 day bank investment rate of interest, with the option of interest cost being added to the deferred annual lease principal.

6.3 The full legal costs to lessees of joining the Scheme be met by the Hawke’s Bay Regional Council.

7. That lessees who wish to join the Council’s Deferred Rental Scheme initially be requested to provide a formal indication of their current participation in the local authority Rates Rebate Scheme.

8. That the normal debt recovery process be instituted by the Council in the case of those lessees in arrears with their rental payments and who do not wish to join the Council’s Deferred Rental Scheme.

Kirton/Scott

CARRIED 8/1

The meeting adjourned at 10.30am and reconvened at 10.45am

Submission on Environmental Protection Authority Bill

Mrs Lambert advised that this item was to seek Council’s approval for staff to prepare a submission on the Environmental Protection Authority Bill which Government had recently released. As the closing date for submissions is Friday, 28 January 2011 staff requested that the Committee exercise the delegated power as set out in the Terms of Reference for Committees in July 2009 to make a decision.

Mrs Lambert outlined the rationale for the creation of a separate entity EPA which would be a stand alone Crown agency under the control of a governance board and the points staff considered should be included in Council’s submission.

The Committee discussed the draft submission, the key points of which were:

(i) The suggestion that it be named the “Environmental Regulatory Authority:

(ii) The inclusion of the criteria approved in the Cabinet Committee paper for additional functions in the legislation and

(iii) An effective review clause which would include stakeholder input.

The Committee requested that Council appear at the Select Committee meeting on this Bill or be part of a representation at the meeting.

Councillor Remmerswaal then moved a recommendation, which was seconded by Councillor Kirton.

That the name Environmental Regulatory Authority as set out in Council’s submission be renamed to the Environmental Protection Authority.

The recommendation was Lost 2/7.

Councillor Remmerswaal exited the meeting at 11.15am

Following discussion the following recommendations were moved and seconded and were carried.

Resolutions

That the Strategic Planning and Finance Committee:

1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance 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 due to the nature and significance of the issue to be considered and decided.

2. Agrees to lodge the attached submission to the Local Government and Environment Select Committee on the Environmental Protection Authority Bill, subject to any further amendments arising at the meeting.

3. That the Committee decides to exercise its delegated powers to make a decision that will have the same effect as the local authority could itself have exercised or performed and that the decision deserves urgency and the decision is carried unanimously.

4. Agrees that Council appear at the Select Committee meeting on this Bill or be part of a representation.

Scott/von Dadelszen

CARRIED

Councillor Remmerswaal returned to the meeting at 11.20am

Regional Water Strategy Reference Group

Ms Codlin advised the purpose of this item was to seek approval for the Terms of Reference for an external Reference Group for the Water Strategy which had been set up following nominations received at the recent regional water symposium.

Ms Codlin advised that all members of the Reference Group had been advised, invited to be part of the group and had also viewed the draft Terms of Reference. Dr Andrew Pearce who has served as the Chief Executive Officer of Landcare Research New Zealand Ltd., until July 27, 2005 and has extensive experience on the board of a diverse range of businesses, including technology and research-based organizations had also been approached to be part of the Group and had accepted the offer. Dr Pearce also serves as Chairman of Canterbury Strategic Water Study.

The Committee expressed concern that there was a lack of clarity in regard to Councillors’ involvement in the Reference Group, in the Council team and in the formation of a draft water strategy. Councillors represented the community and it was essential that they understand stakeholder issues and the implications as policy was being developed.

The Committee sought amendments to the TOR reflecting the involvement of 3 Councillors on an ex officio basis in both the Reference Group and the Council team.

In response to a further question, regarding the confidentiality agreement reference group members would have to sign, Ms Codlin advised that this related to the release of information to the media.

Resolutions

That the Strategic Planning and Finance Committee recommend to Council that:

1. Agree that the decisions to be made are not significant under the criteria contained in Council’s adopted policy on significance 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 due to the nature and significance of the issue to be considered and decided.

2. Approve the Terms of Reference for the External Reference Group for the development of Regional Water Strategy as amended (see attached).

3. Note the membership, to date, of the External Reference Group for the development of Regional Water Strategy as set out in the table.

4. Agree that 3 Hawke’s Bay Regional Councillors be part of the External Reference Group acting in an ex officio capacity.

Stakeholder Group	Name
Iwi	Marei Apatu, Heretaunga o Te Taiwhenua, Community Development Unit
	Dale Moffatt, Heretaunga o Te Taiwhenua, Community Development Unit
	Dr Adele Whyte, Director of Fisheries, Ngati Kahungunu Iwi Incorporated

Primary Producers	Ru Collins, Horticulture NZ – horticultural sector, Twyford Water User Group, LAWF involvement
	Hugh Ritchie, Drumpeel Land Company – sheep/beef/cropping sector, Irrigation NZ Board (stand in for Kevin Mitchell Federated Farmers)
	Mike Glazebrook, Te Tua and Washpool Station, Chair Ngaruroro Water User Group
	Paul Franklin, Springhill Dairies, dairy sector, Dairy Liaison Group
	Brett Gilmore, Pan Pac, HB Forestry Owners – forestry sector
	Evert Nijzinc,- viticultural sector

Industry / Business	Murray Douglas, Hawke’s Bay Chamber of Commerce
	Nikola Bass, Heinz Watties

Territorial Authorities	Mark Clews, Hastings District Council
	John Freeman, Central Hawke’s Bay District Council
	Johan Ehlers, Napier City Council
	Neil Cook, Wairoa District Council

Environmental	Jan Hania, Department of Conservation
	Peter McIntosh, Fish and Game HB
	Alastair Bramley, ECOED
	Lloyd Beech

Other	Dan Bloomer, Centre for Land and Water – irrigation expertise Dr Andrew Pearce – Natural Resource management/business expertise

Gilbertson/Rose

CARRIED

10.

Proposed Regional Tourism Organisation (RTO)

Mr Drury introduced Annie Dundas, Interim General Manager Regional Tourism Organisation and Heath Caldwell, Management Accountant to the Committee and gave an outline of the operating budget for the proposed RTO operations. Mr Drury noted that the forecast budgets are consistent with the Annual Plan. Mr Drury also confirmed that $45,000 grant to cover interim staffing costs had been provided for in the Annual Plan. Mr Drury also explained the budget variances between Venture Hawke’s Bay Annual Plan 2010/11 and the proposed budget.

In response to a question about the allocation of funding between the Economic Development and Tourism activities, Mr Newman confirmed that the larger amount had been moved into the tourism area. He noted that these allocations were consistent with Council approved Annual Plan 2010/11.

Ms Dundas described the process to be undertaken with regard to future budgets and also outlined the KPIs which had been set through to June 2011.

In response to a question about the Rugby World Cup, Ms Dundas confirmed that the RWC has its own management team with the budgets sitting under the RTO.

Following further discussion on the operating budget, the original budget figures forecast and KPIs, the Committee requested that for future reporting to Council that original Annual Plan budgets be included..

Resolution

That the Strategic Planning and Finance Committee recommend to Council that:

1. The Committee receive the information set out in this paper and specifically approve HBRC’s contribution to the financial budget to 30 June 2011 for the proposed Regional Tourism Organisation.

Gilbertson/Rose

CARRIED

11.

Council Meeting Timetable

The Committee discussed the proposed meeting dates for Council’s Committees until the end of June 2011 only and the suggestion that consideration be given to holding some workshops in the evening.

Councillor Dick advised that he had received late notification of a Local Government Transport Congress to be held on 10/11 February which clashed with the proposed Annual Plan Workshop.

Following discussion. the Committee agreed that the Annual Plan meeting set down for 10 February would now be held on Wednesday, 9 February with the Environmental Management Committee date to be confirmed.

Resolution

That the Strategic Planning and Finance Committee recommend to Council that:

1. The proposed Committee dates until June 2011 be confirmed following amendment.

Rose/von Dadelszen

CARRIED 8/1

12.

General Business

Coastal Policy Statement – Waimarama

Following a request for clarification from Councillor Remmerswaal, Mrs Lambert said she would clarify the relationship of the NZCPS and the Hastings District Plan with Councillor Remmerswaal.

Christmas Cards

Councillor Remmerswaal congratulated staff on Council’s Christmas card for 2010.

National Policy Statement – Submission on Indigenous Biodiversity

Councillor Kirton advised that submissions for the National Policy Statement on Indigenous Biodiversity close on 2 May 2011.

13.

Confirmation of Public Excluded Minutes of Meeting Held on 17 November 2010

Resolution:

That the Council exclude the public from this section of the meeting being Agenda Item 13 Confirmation of Public Excluded Minutes of Meeting 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 as follows:

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	7(2)(h) Enable the local authority holding the information to carry out, without prejudice or disadvantage, commercial activities	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Gilbertson/Scott

CARRIED

The meeting went into public excluded session at 12.45pm and out of public excluded session at 12.47pm

Closure:

There being no further business the Chairman declared the meeting closed at 12.48pm on Wednesday, 26 January 2011.

Signed as a true and correct record.

DATE: ................................................ CHAIRMAN: ...............................................