Unconfirmed
MINUTES OF A meeting of the Regional Council
Date: Wednesday 29 June 2011
Time: 9.00am
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
T Gilbertson
N Kirton
E McGregor
L Remmerswaal
K Rose
C Scott
E von Dadelszen
F Wilson - Chairman
In Attendance: A Newman – Chief Executive
EA Lambert – Group Manager External Relations
P Drury – Group Manager Corporate Services
M Mohi – Chairman – Maori Committee
L Hooper – Acting Administration Manager
The Chairman welcomed everyone to the meeting and councillor von Dadelszen offered the prayer.
The Chairman gave notice that the Chief Executive wished to provide a verbal update on several issues at the end of the meeting, a verbal update from the Maori Committee would be provided by Mr Mohi following Item 11, and Councillor Dick wished to advise Council on a matter during the public excluded portion of the meeting.
RC75/11 Resolution
That Council accepts the notices.
von Dadelszen/Rose
CARRIED
2. CONFLICT OF INTEREST DECLARATIONS
There were no conflict of interest declarations.
3. CONFIRMATION OF MINUTES OF the Regional Council Meetings held on 25 May 2011, and 8, 9 and 10 June 2011
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That the minutes of the Regional Council Meeting held on Wednesday, 25 May 2011 a copy having been circulated prior to the meeting, were taken as read and confirmed. Gilbertson/von Dadelszen CARRIED That the minutes of the Regional Council Meeting held on Wednesday 8 June, Thursday 9 June and Friday 10 June 2011, a copy having been circulated prior to the meeting, were taken as read and confirmed. CARRIED |
4. Matters Arising from Minutes of the Regional Council Meetings held on Wednesday 25 May 2011 and Wednesday 8, thursday 9 and Friday 10 June 2011
There were no matters arising from the minutes of the meeting held Wednesday 25 May 2011.
Arising from the minutes of the meetings held 8, 9 and 10 June 2011 there was a query in relation to the application to carry forward funds for iwi funding within the project 874 budget, which had been declined by council. Staff have considered council’s decision and believe that there is still sufficient funding within the 2011/12 budgets for the project without carrying forward any funds.
Also arising from the minutes of the meetings held 8, 9 and 10 June 2011 concern was raised in relation to the funding for a ‘Wineries Ride’ and the safety of cyclists. Letters of support for this project had been received from the community since the meeting, and the Chairman will be discussing this project further with staff before responding to those letters, and will copy his response to Councillors.
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Action Items from Council Meetings |
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Mr Newman updated Council on the status of Actions listed. Councillors then discussed the addition of further actions to the list, those being:
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1. That Council receives the report “Action Items from Council Meetings”.
CARRIED |
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Consideration of General Business Items |
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Port of Napier Limited - Results for Six Months Ending 31 March 2011 |
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That Council excludes the public from this section of the meeting, being Agenda Item 18 Port of Napier Limited - Results for Six Months Ending 31 March 2011 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:
CARRIED |
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Ruataniwha Plains Water Storage Project |
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That the Council exclude the public from this section of the meeting being Agenda Item 20 Ruataniwha Plains Water Storage Project 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:
CARRIED |
The meeting moved into Public Excluded Session at 09.20am and out of Public Excluded at 11am
The meeting adjourned at 11am and reconvened at 11.10am.
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Affixing of Common Seal 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.
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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. CARRIED |
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Infrastructure Insurance |
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Mr Adye updated Council on the status of insurance renewals, which has been quite volatile and changing daily.
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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. Notes that a commercial placement of insurance to cover 40% of Council’s infrastructure damage in the event of a disaster has been placed at a price of $92,500. 3. Delegates authority to the Chief Executive to organise a further 20% of commercial insurance to cover damage to Council’s infrastructure in the event of a disaster, at an indicative cost of $40,000. 4. Notes that staff will undertake a review over the next four months of Council’s infrastructure asset insurance, including its membership of LAPP, and report back to Council on the appropriate mix of insurance to cover damage to Council’s infrastructure assets in the event of a disaster. CARRIED |
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Adoption of the 2011/12 Annual Plan |
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Mr Drury provided explanations for financial variances between the Draft Plan and the Plan now being considered by Council for adoption. It was noted that the withdrawal of an additional $1.035M from the Sale of Land Account had been approved to provide additional funding for the Ruataniwha Water Storage Feasibility study. |
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That Council: 1. Agrees the decision is to be made under Section 95 of the Act which specifies the adoption of the Annual Plan, and also under sections 83 & 85 requiring a special consultative process which includes consideration of submissions on the Plan from members of the community, and that this process has been undertaken. 2. Agrees to fund the underlying deficit from cash operating balances which are estimated to be at a level which is sufficient to provide such funding. 3. Approves the carry forward in project 797 – Regional Land Transport Study (cost code 2395) of $200,000 from 2010/11 to 2011/12, and further carry forward $150,000 of revenue to be received from the New Zealand Transport Agency from 2010/11 to 2011/12 to fund the completion of the wider regional transportation study and the Heretaunga Plains transportation study. 4. Adopts the following resolutions pursuant to Section 12 of the Local Government Act 2002: 4.1 Council raises a loan or loans or facilitates loan funding through banks to fund the borrowing set out in the 2011/12 Annual Plan for the purposes of funding clean heat and insulation advances to householders, flood and drainage schemes, technical equipment, buildings, public good capital assets and a systems integration programme. These loans to be drawn down when required, to fund the approved capital programmes. 4.2 Council delegates to the Chief Executive, authority to negotiate and agree on the terms of the loan including: 4.2.1 Any future financing needs within the overall terms of borrowing, the interest rate payable by Council 4.2.2 The frequency of interest payments 4.2.3 The timing of drawdown 4.2.4 The institution(s) that will provide the loans 4.2.5 The number of loans which will make up the borrowing 4.2.6 All other terms and conditions of such loans and facilities as may be necessary in obtaining such loans and facilities in accordance with the Council’s Liability Management policy to execute any agreements, documents, and certificates in respect of such loans and facilities on behalf of Council. 5. Adopts the Annual Plan 2011/12, in accordance with Section 95 of the Local Government Act 2002, being the draft Annual Plan issued for public consultation and amended: 5.1 By Council at the meetings held on 8, 9 and 10 June 2011. 5.2 By Council at its meeting on 29 June 2011, including the decision to provide additional funding of $1.035M from the Sale of Land (Investment) Account to assist with costs of the Ruataniwha Water Storage Feasibility study. 6. Approves, in accordance with sections 83 and 150 of the Local Government Act 2002, the resource consent and user charges as adopted in Part 3 on pages 26-34 of the draft Annual Plan issued for public consultation and amended by Council at its meetings on 8, 9 and 10 June 2011, and today, 29 June 2011. 7. Instructs staff to make any necessary final amendments and then to issue the published Plan in its final form. 8. Instructs staff to amend the Policy Handbook, Section 1.1.2 – Annual Planning to read: “That the Council adopts the 2011/12 Annual Plan being the draft Annual Plan issued for public consultation and as amended: - By Council at the meetings held on 8, 9, and 10 June 2011. - By Council at its meeting on 29 June 2011.” CARRIED |
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Recommendations from the Environmental Management Committee |
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The paper was taken as read. |
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That Council: Proposed Onsite Wastewater Plan Change 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 because the Resource Management Act allows people to have an opportunity to submit on the proposed Change and Variation following a decision by Council to publicly notify them. 2. Adopts the “Section 32 Evaluation Summary: Change 3 - Regional Resource Management Plan: on-site wastewater/ Variation 3 – Proposed Regional Coastal Environment Plan: on-site wastewater” (Attachment 1) and make it available for public inspection. 3. Adopts Change 3 to the Regional Resource Management Plan for public notification in early July 2011. 4. Adopts Variation 3 to the proposed Regional Coastal Environment Plan for public notification in early July 2011. 5. Resolves that the proposed rules have legal effect only once the proposed change (Change 3 and Variation 3) becomes operative in accordance with clause 20 of Schedule 1 of the RMA. 6. Instructs staff to implement a communication strategy around those consent holders who are renewing their consents prior to May 2012. Withdrawal of Air Quality Rules 7. 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. 9. Withdraws Rule 18a in Change 2 to the Regional Resource Management Plan and Rule 63A in Variation 2 to the proposed Regional Coastal Environment Plan; and give notice of the withdrawal for the following principal reasons: 9.1 The rules are no longer necessary now that penalties have been revised and removed from the original National Environmental Standard for ambient PM10 air quality for ambient airshed quality non-compliance. 9.2 Withdrawing the rules will reduce potential confusion and uncertainty for assessing PM10 contaminants alongside all other contaminants in discharges to air from industrial and trade premises in the Hastings and Napier airsheds.
Navigation Safety Bylaws Review – Special Consultative Process 10. 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. 11. Commences a special consultative procedure under the Local Government Act 2002 for reviewing the Hawke’s Bay Navigation Safety Bylaws 2007, with the aim of having new bylaws produced November 2011. Dangerous Dams Policy Review – Special Consultative Process 12. 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. 13. Commences a special consultative procedure under the Local Government Act 2002 for reviewing the Dangerous Dams Policy, with the aim of having a new policy produced by the end of November 2011. CARRIED |
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Recommendations from the Strategic Planning and Finance Committee |
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Ms Lambert provided some clarification in relation to the Committee structure review implications. |
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That Council: Review of Council Committee Structure 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. Once the Regional Planning Committee has been established, dis-establishes the current separate Council committees of Environmental Management and Asset Management & Biosecurity and creates an Environment and Services Committee with the final Terms of Reference to be submitted to Council for approval. 3. Continues with the other current committees of Council, those being the Tenders Committee, the Maori Committee and the re-named Corporate and Strategic Committee. 4. Adopts the Draft Terms of Reference for the Regional Planning Committee, including amendments, as the basis for further discussion with Treaty claimant groups. Adoption of the Amended Council Meeting Planner 5. 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. 6. Adopts the amended Council Meeting Planner for June – December 2011. CARRIED |
11a. Mr Mohi provided a verbal report on the Maori Committee meeting held yesterday, 28 June. There had been some confusion or misunderstanding and concerns surrounding the establishment of the Joint Planning Committee and implications for the Maori Committee. Mr Mohi felt that the confusion and concerns had been resolved at the meeting.
RC85/11 Resolution
1. That Council receives the report.
Rose/Gilbertson
CARRIED
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Investment Company Proposal |
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RC86/11 |
A Councillor expressed concern in relation to councillors having had an opportunity to discuss the written submissions that had been received. Mr Drury explained that the issues raised by submitters were being put forward as part of the paper being considered today, for councillors to discuss and decide upon. Ms Lambert then provided clarification around the process of consultation and decision-making requirements. The approach Council staff were proposing to take, was to get a decision in principle from Council, either to proceed or not with establishment of the Investment Company, today and then consider the required detailed decisions at future Council meetings if required. The meeting adjourned at 12.30pm and reconvened at 1.15pm with Councillor Scott and Mr Mohi absent. Resolution That apologies for lateness be accepted from Councillor Scott and Mr Mohi. von Dadelszen/Wilson CARRIED |
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Investment Company Proposal |
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Mr Drury provided Councillors with additional comment in relation to the points covered in the paper, and responded to queries. Councillor Scott re-joined the meeting at 1.25pm. Mr Newman provided responses in relation to the level of risk associated with Council’s current investments and those risks associated with investment via a company structure as proposed. Mr Mohi re-joined the meeting at 1.40pm. The merits of individual companies versus a ‘group’ of companies run by an Investment Company were discussed in relation to tax advantages and investment returns. Councillors spent considerable time and energy carefully considering the benefits and risks associated with this proposal in coming to their decision. Councillors expressed their hope that this could provide the vehicle to further Council’s strategic goals for sustainable prosperity within the region. |
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That Council: 1. Notes that a special consultative process as set out under the Local Government Act 2002 has been carried out by Council covering the proposal to establish an investment company. 2. Approves, in principle, the establishment of an investment company to improve investment performance and to further the strategic goals of Council. 3. Approves the process outlined in Section 64 of this paper for its establishment. 4. Notes that the establishment of the investment company does not need to be done on 1 July 2011 for taxation reasons or any other point of view, and that a staged approach to setting up detailed structures, protocols and accounting and management information systems is therefore appropriate. 5. Notes that the first step in the establishment of the investment company will be the submission of a further paper to Council on the matters raised, namely: 5.1 Constitution of the company and its name. 5.2 Composition of the Board of the company in terms of the number of directors, the number of councillor directors, the number of independent directors, whether the chairperson will be a councillor director or not, and the terms and conditions of their respective appointments. 5.3 Its physical location and registered office. 5.4 The assets to be transferred from the Council to the company. 5.5 The company’s funding structure. 5.6 The options around managerial oversight. 6. Instructs staff to advise each submitter of the resolutions made by Council at this meeting in relation to the proposal to establish an investment company and to provide each submitter with a copy of this Council paper which clarifies the issues considered by Council when adopting the resolutions. 8 For: Dick, McGregor, Scott, Gilbertson, Rose, von Dadelszen, Kirton, Wilson 1 Against: Remmerswaal CARRIED |
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National Policy Statement on Freshwater Management |
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Ms Lambert provided Council with an overview of the implications of the NPS on Freshwater (comes into effect 1 July 2011) for Council. The ‘regional sector’ is seeking clarity on several matters related to the implementation of the NES from the Ministry for the Environment.
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1. That Council receives the report titled “National Policy Statement on Freshwater Management”. CARRIED |
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Financial Report for 11 Months Ended 31 May 2011 |
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Mr Peacock drew councillors’ attention to the main features of the report. |
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1. That Council receives the Annual Plan Progress Report for the first eleven months of 2010/11 financial year. CARRIED |
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June 2011 Work Plan Looking Forward |
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Mr Newman provided responses to queries related to cycleways, the recently completed horseback riding trail, the CHB wastewater treatment discharges and the Council’s ‘Óur Place’ (replaces Big Picture) publication. |
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1. That Council receives the June 2011 Work Plan Looking Forward report. CARRIED |
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Chairman's Monthly Report (to be tabled) |
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The Chairman’s report was tabled, and Councillors were provided with additional details as requested. |
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1. That the report be received. CARRIED |
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General Business |
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Councillor Dick advised that an additional 4 buses purchased to service Route 12 are scheduled to arrive in Hawke’s Bay in August. |
Closure:
There being no further business the Chairman declared the meeting closed at 3.10pm on Wednesday, 30 June 2011.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................