MINUTES OF A meeting of the Regional Council

Date:                          Wednesday 23 February 2011

Time:                          9.00am

Venue:

Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER

Present:                     A J Dick

T Gilbertson

N Kirton

E McGregor

L Remmerswaal

K Rose

C Scott

E von Dadelszen

F Wilson  - Chairman

In Attendance:          A Newman – Chief Executive

H Codlin – Group Manager Strategic Development

M Adye – Group Manager Asset Management

M Mohi – Chairman – Maori Committee

C Gilbertson – Governance and Public Transport Manager

1. WELCOME/PRAYER/APOLOGIES/NOTICES

The Chairman welcomed everyone to the meeting and gave Council an update on the Christchurch earthquake that occurred on Tuesday, 22 February. He advised that due to travel disruptions resulting from the earthquake the Chief Executive had been unable to fly back to Napier from Wellington but would be at the meeting later in the morning. Councillor Remmerswaal then delivered the prayer in Maori.

The Chairman then requested Council consider adding a late item to the agenda under Standing Orders 3.7.5. The late item “Wastewater Discharge Consent Replacement Costs” needed to be dealt with at this meeting so the decision could be included in the draft Annual Plan document, to leave a decision on this item to the next Council meeting, being held on 16 March, would mean it would not align with the deadlines for the Draft Annual Plan adoption.

Resolution

1.      That the late item “Wastewater Discharge Consent Replacement Costs” be added, as agenda item 12.a, to the agenda under standing orders 3.7.5.

Rose/Scott

CARRIED

2. CONFLICT OF INTEREST DECLARATIONS

There were no conflict of interest declarations made.

3. CONFIRMATION OF MINUTES OF the  Regional Council Meeting held on 15 December 2010

Resolution

1.      That the minutes of the Regional Council Meeting held on Wednesday, 15 December 2010, a copy having been circulated prior to the meeting, were taken as read and confirmed.

Scott/Rose

CARRIED

4.      Matters Arising from Minutes of the Regional Council Meeting held on Wednesday 15 December 2010

Councillors' Remuneration 2010/11 (Post Election)

In response to a question about whether a response had been received from the Remuneration Authority, Mr Drury advised that no response had yet been received.

Chairman’s Accommodation

The Chairman advised that accommodation had been secured at less than the lower end of the cost that was agreed by Council.

5.	Action Items from Council Meetings
	Land Management Work Programmes In the absence of the Chief Executive and Mr Adye, Mrs Lambert and Councillor Rose said that this item would probably be discussed at the next Asset Management Biosecurity Committee Meeting. Strategic Partnerships Mrs Lambert said the next stage is for the criteria to be brought back to Council for their approval in May.
	Resolution 1.     That the Council receives the report “Action Items from Council Meetings”. McGregor/Gilbertson CARRIED

6.	Consideration of General Business Items
	1. Water Whisperers Tangaroa 2. Land and Water Forum 3. Leave of Absence 4. Cape Kidnappers Field Trip

7.

Affixing of Common Seal

		Seal No.	Date
1.1	Leasehold Land Sales 1.1.1     Lot 360           DP 11329           CT B3/1323 -     Transfer 1.1.2     Lot 25           DP 921           CT B3/1145 -     Agreement for Sale and Purchase -     Transfer 1.1.3     Lot 37           DP 12309           CT D2/504 -     Agreement for Sale and Purchase -     Transfer 1.1.4     Lot 41           DP 13039           CT E2/1224 -     Agreement for Sale and Purchase	3010 3013 3020 3014 3019 3023	13 December 2010 20 December 2010 1 February 2011 5 January 2011 1 February 2011 15 February 2011
1.2	Subvention Agreement Port of Napier Limited and Hawke’s Bay Regional Council	3011	15 December 2010
1.3                                                                                   P	Certificate of Compliance Under Section 245 of the Resource Management Act 1991 -   Reclamation of land – PONL	3012	15 December 2010
1.4	Staff Warrants 1.4.1  H. Fraser (Delegations under Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174)) 1.4.2  P. Hall (Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174)) 1.4.3  M. Letica (Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174)) 1.4.4  R.Thomas (Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91)and Local Government Act 2002 (s.174))	3015 3016 3017 3018	14 January 2011 20 January 2011 20 January 2011 20 January 2011
1.5	CLIVE RIVER STOPBANK ACQUISITION OF EASEMENT (stopbank reconstruction) 1.5.1  Deed of Grant of Easement 1.5.2  Compensation Certificate	3019 3020	8 February 2011 8 February 2011
1.6                                                                           HEAD	HEADS OF AGREEMENT Part Lot 61 Deeds 380 (construct new stopbank part Upper Tukituki Flood Control Scheme)	3024	16 February 2011

Resolutions

That Council:

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.      Confirms the action to affix the Common Seal.

Rose/von Dadelszen

CARRIED

8.	Terms of Reference - Hearings Committee
	Mr Lew advised that on 18 November 2010 all Hearings Committee members participated in a workshop to review a Draft Terms of Reference; discuss the Hearings Panel composition and Key Performance Indicators to make recommendations to Council. This item was now a summary of those recommendations. In discussion about the draft Terms of Reference it was noted that there needed to be differentiation between the Hearings Committee and the Hearings Panel and the terms of reference were redrafted to take this into account. There was also discussion on financial accountability and ensuring that efficiency was taken into account. Mr Lew advised that the financial position was reported to Council via the normal Council reporting processes. Mr Drury further advised that these reports could be enhanced if they are currently not providing the level of detail that the Council would like to see. It was also noted that this Committee was not responsible for deciding on financial appeals. It was also noted that the Committee’s performance was judged through the outcome of any hearing decisions.
	Resolutions That Council: 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.    Adopts the Terms of Reference for the Hearings Committee. McGregor/Rose
	Councillor Kirton then moved an amendment to Recommendation 2, which was seconded by Councillor Dick:
	Amendment: Resolution 2.    Adopts the Terms of Reference for the Hearings Committee with an additional Term of Reference to be added that the Hearings Committee will propose KPIs to measure Hearing Panels’ performance on an annual basis. Kirton/Dick CARRIED
	The amendment when put was CARRIED and hence became the substantive motion.
	Resolution 3.    Elects Councillor von Dadelszen as Deputy Chair of the Hearings Committee. Scott/Wilson CARRIED
	Resolution 4.    Delegates to the Hearings Committee Chair or Council Chairman, the ability to appoint independent commissioners to Consent Hearing Panels or Pre-hearings as required. Gilbertson/Rose CARRIED 6/3

9.	Triennial Agreement
	Mrs Lambert advised that under section 15 of the Local Government Act 2002 (the Act) all local authorities are required to enter into a triennial agreement no later than 1 March in the year following a triennial election. The Regional Council prepared the proposed Triennial Agreement and it is being presented to all Councils who are parties to the agreement, these being the Hawke’s Bay Regional Council, Hastings District Council, Napier City Council, and the Wairoa, Hastings, Central Hawke’s Bay, Rangitikei and Taupo District councils. In discussion about section 7 – “Significant New Activities Proposed by Hawke’s Bay Regional Council” it was clarified that this section would apply if Council chose to carry out a new activity it had not previously done and it set out the process of how the Regional Council would engage with the other councils in such an instance to ensure a “no surprises” approach. This represents best practice and means that councils would talk to each other about issues that are best for the region.
	Resolutions That the Council: 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.      Considers the Triennial Agreement that has been prepared in accordance with the requirements contained within the Local Government Act 2002 and the Resource Management Act 1991 and after making amendments, if any, approve signing of the Agreement by the Chairman and Chief Executive on behalf of Council. 3.     Grants the Chief Executive delegated authority to approve changes to the draft Triennial Agreement that may be proposed by other local authorities in the Hawke’s Bay Region which will not materially affect the contents of the Agreement, as approved by Council at this meeting. von Dadelszen/Scott CARRIED

10.

Recommendations from the Strategic Planning and Finance Committee

Napier Leasehold Land - Socio Economic Impact Assessment

At the Strategic Planning and Finance Committee meeting further information was requested on the comparison between annual rentals and mortgage payments. Mr Sean Bevin provided this information and it was presented as part of this item.

Resolutions

That Council:

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.      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.

9.      That Council notes the further advice from ESL Consultants still pending.

Kirton/Dick

CARRIED

Resolution

Proposed Regional Tourism Organisation (RTO)

1. That Council receives the information set out in this paper and specifically approves HBRC’s contribution to the financial budget to 30 June 2011 for the proposed Regional Tourism Organisation.

von Dadelszen/Dick

CARRIED

Resolution

Council Meeting Timetable

1. That Council confirms the proposed amended Committee dates until June 2011

von Dadelszen/Dick

CARRIED

The meeting adjourned at 10.30am and reconvened at 10.45am

10.

Recommendations from the Strategic Planning and Finance Committee continued

Regional Water Strategy Reference Group

The amended Terms of Reference was presented by Ms Helen Codlin who outlined changes to the document.

It was agreed that the appointment of Councillors to this group would be made by the Council; these Councillors were Councillor Scott, Remmerswaal and Wilson. Other Councillors are welcome to attend the meetings, in an ex-officio capacity, but having three Councillors appointed to the group would provide consistency.

It was noted that the Strategy would be Council’s Strategy. The reference group is part of the process to get to the Strategy.

The Chief Executive arrived at 10.48am

Ms Codlin confirmed that four meetings are proposed for the development of the strategy after which the Council would review the purpose and effectiveness of the Group

It was noted the Group needed to obtain community views from the people they represent to be included in the Strategy.

It was requested that a budget be provided for this project and the costs presented to Council on an ongoing basis.

Resolutions

That Council:

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

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

4.      Agrees that 3 Hawke’s Bay Regional Councillors be part of the External Reference Group on a participatory basis, and appoint Councillors Scott, Remmerswaal and Wilson; and any other Councillor may attend on ex officio capacity.

5.     Agrees that the function of the group is to make recommendations on the Regional Water Strategy to the Regional Council.

6.      Requires staff to produce a budget of expenditure for all reference group activities that is reported to Council on a regular basis.

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
von Dadelszen/Rose CARRIED

11.

Recommendations from Environmental Management Committee

Resolutions Opoutama Wastewater Discharge Consent Appeal Mediation That Council: 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. Provides delegation to Council staff to engage in the mediation process with appellants, and to settle these appeals prior to an Environment Court hearing if this can be achieved in a manner that upholds the intent of the Hearing Panel’s decision. von Dadelszen/McGregor CARRIED

12.	Recommendations from the Regional Transport Committee
	Chairman of the Regional Transport Committee, Alan Dick, advised that at the Transport Meeting the committee was informed that a classification of state highways project was underway. He said he was very pleased to say that this region has been accorded a strategic route of national significance on State Highway 2, from Napier to Levin. The reason for the allocation to this area is the significance of the Port of Napier in terms of traffic volumes and it because it services a main New Zealand centre which is recognised by the combined population numbers of both Napier and Hastings.
	Resolutions Draft Regional Land Transport Strategy – Discussion Document That Council: 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.      Adopts the document titled Draft Regional Land Transport Strategy for Hawke’s Bay – Discussion Document as amended following feedback from the Committee and approves its release into the public arena for the purpose of pre consultation on the Regional Land Transport Strategy. Confirmation of 2011 Regional Transport Committee Meeting Dates That Council: 3.     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. 4.     Approves the proposed Regional Transport Committee meeting dates for 2011 following amendment and includes those dates on the Council’s 2011 meeting schedule. Dick/Gilbertson CARRIED

12.a	Wastewater Discharge Consent Replacement Costs
	This late item was presented by Mr Darryl Lew who advised that the reason for this paper was to outline a simplified and reduced cost consenting process for replacement on-site wastewater consents. The current consenting process has resulted in inequities between those whose discharges of on-site wastewater are authorised by consents, and those whose discharge of on-site wastewater are not consented. In discussion it was noted that Council will get the plan change in place soon to finally address this issue. It was unfortunate that Council had failed to do the plan change for the last 10 years and this is a pragmatic solution to make progress, but there is a level of frustration that this has taken so long.
	Resolution That the Council: 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 the proposed approach for processing applications for replacement on-site wastewater consent, which will reduce inequity between consented and non-consented onsite wastewater discharges. 3.      Agrees to the use of two consent application categories, and: 3.1.      For Category 1 applications: a fixed fee of $260.00 (excl GST) 3.2.      For Category 2 applications: a deposit fee of $260.00 (excl GST) plus any additional actual and reasonable charges. Rose/Scott CARRIED 8/1

13.	Verbal Report from Maori Committee Meeting held on 22 February 2011
	Mr Mike Mohi gave a verbal update from the Maori committee meeting held on Tuesday, 22 February 2011 on key items including: - Verbal update from the Chairman (who was standing in for the Chief Executive) on Regional Tourism Organisation; Draft Annual Plan and Water Feasibility Study - Kahungunu Wai Symposium]
	Resolution 1.      That Council receives the verbal report. Rose/Gilbertson CARRIED

14.	Annual Plan Progress Report to 31 January 2011
	Mr John Peacock presented the Annual Plan progress report for the first seven months of the 2010/11 financial year and highlighted key areas of his report. He noted that the reason for the positive position in the healthy homes project was that not as much borrowing has been required as was originally anticipated. Mr Peacock advised that rates penalties have now been struck and it is pleasing to see this figure is less than the 2009/10 year, this is the first time that this figure has gone down. Mr Drury summarised the report and reminded Councillors that because this is a seven month update it is too early to make year-end assumptions.
	Resolution 1. That the Council receives the Annual Plan progress report for the first seven months of the 2010/11 financial year. Dick/Scott CARRIED

15.	Monthly Work Plan Looking Forward
	The Chief Executive highlighted key areas from his report.
	Resolution 1.      That Council receives the Monthly Work Plan Looking Forward report. Gilbertson/Rose CARRIED

16.	Chairman's Monthly Report
	The Chairman advised that due to other priorities resulting from the earthquake in Christchurch he had not finalised his monthly report. This would be sent to Councillors by email on Friday, 25 February 2011.
	Resolution 1.     That the matter be left to lie on the table. Rose/von Dadelszen CARRIED

17.

General Business

Water Whisperers Tangaroa Councillor Remmerswaal advised that this film was due to be shown for the first time in Hawke’s Bay on Monday, 28 February at Lindisfarne College. Land and Water Forum Councillor Remmerswaal advised that this forum was being held on Tuesday, 1 March at 7pm in the Hastings Opera House. Leave of Absence Councillor Gilbertson requested leave of absence from all Council and Committee meetings being held in July. Cape Kidnappers Field Trip Councillor McGregor said the field trip to Cape Kidnappers was at 1pm on Friday, 25 February but was weather dependant.

18.

Confirmation of Public Excluded Meeting held on 15 December 2010

Resolution

That the Council exclude the public from this section of the meeting being Agenda Item 18 Confirmation of Public Excluded Meeting held on 15 December 2010 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
Additional Paper Covering Statement of Corporate Intent (SI) 2011-2013 for Port of Napier Limited (PONL)	7(2)(b)(ii) To protect information which otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Scott/von Dadelszen

CARRIED

19.

Clarification for the Extension to Contracts

Resolution

That the Council exclude the public from this section of the meeting being Agenda Item 20 Clarification for the Extension to Contracts 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
Clarification for the Extension to Contracts	7(2)(i) Enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Scott/von Dadelszen

CARRIED

The meeting went into public excluded session at 12.35pm and out of public excluded session at 12.50pm

Closure:

There being no further business the Chairman declared the meeting closed at 12.50pm on Wednesday, 23 February 2011.

Signed as a true and correct record.

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