Minutes of Regional Council Meeting

1. WELCOME/PRAYER/APOLOGIES/NOTICES

Chairman Wilson welcomed all present to the meeting and Councillor von Dadelszen offered the prayer.

RC4/11 Resolution

1. That the apologies from Councillors Remmerswaal and Gilbertson be accepted.

Rose/McGregor

CARRIED

Chairman Wilson approved Councillor Kirton’s request to leave the meeting at 1.30pm

Councillor Rose sought leave which was granted to move a recommendation in relation to the recent tragedy in Norway.

RC5/11

Resolution

1. That Council requests that the CEO write to the Norwegian Ambassador and express the profound sympathy of the Councillors, staff and ratepayers of the Hawke’s Bay Region to the people of the Kingdom of Norway on the loss of life and suffering inflicted on innocent citizens by criminal/terrorist action on 22 July 2011.

Rose/von Dadelszen

CARRIED

2. CONFLICT OF INTEREST DECLARATIONS

There were no conflict of interest declarations.

3. CONFIRMATION OF MINUTES OF the Regional Council Meeting held on 29 June 2011

RC6/11

Resolution

Minutes of the Regional Council Meeting held on Wednesday, 29 June 2011, a copy having been circulated prior to the meeting, were taken as read and confirmed following amendment.

McGregor/Scott

CARRIED

4. Matters Arising from Minutes of the Regional Council Meeting held on Wednesday 29 June 2011

10 Recommendations from the Environmental Management Committee

Mr Lew advised that the proposed onsite wastewater plan change (Change 3 and Variation 3) would become operative following due process, and it is estimated that this will occur in February 2012.

Action Items from Council Meetings

Mr Newman updated Council on the status of Actions from Council meeting listed and advised that a report on the recreation plan for the Waihapua Forest Park would be presented to the Asset Management and Biosecurity Committee meeting.

Mr Newman also advised that a successful meeting had been held recently with Minister of Agriculture David Carter in regard to the Ruataniwha Plains Water Storage project with confirmation of Government support to be confirmed in September.

RC7/11

Resolution

1. That Council receives the report “Action Items from Council Meetings”.

Scott/Dick

CARRIED

6.	Consideration of General Business Items
	1. Proposed Environmental Centre – A & P Show

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.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 3

DP 4268

CT G1/340

- Transfer

1.1.2 Lot 112

DP 11999

CT D1/453

- Agreement for Sale and Purchase

3054

3055

27 June 2011

1.2

Deed of Variation

Ministry for the Environment and HBRC Funding Agreement (Dynamic Water User Management Systems Project)

(CMS reference: 12534)

3053

23 June 2011

1.3 P

Esplanade Strip – Wairango Farm

(Riparian strip)

Part Lot 1 and part Lot 2

DP 11135, CTs SA44B/446. SA16D/6

3055

5 July 2011

Following a request for clarification, Mr Newman to confirm 1.2 Deed of Variation.

RC8/11

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/McGregor

CARRIED

Update on Transport Issues

Councillor Dick as Chairman of the Regional Transport Committee provided a verbal update from the last Committee meeting. This included the repair work undertaken on the Mohaka Bridge and progress to date on the High Productivity Motor Vehicles (HPMV) investigation currently underway in the region.

Councillor Dick outlined the proposed changes in subsidy rates to regional councils which would be significant for Councils. Mrs Gilbertson advised that as a result of feedback received from Councils, NZTA would enter discussions with them in order to achieve a suitable outcome.

Councillor Dick also congratulated RoadSafe staff on work undertaken in the past year, in particular the production of a DVD around a fatal road accident in the region involving young drivers. The Minister had recently viewed this DVD which was to be submitted to road safety competitions in the near future.

Mrs Gilbertson gave an update on the Draft Regional Public Transport Plan which would go out for public consultation using the special consultative process outlined in the Local Government Act following adoption by Council.. Mrs Gilbertson noted that it was hoped patronage growth would continue and extra revenue gained from growth would go back into the service.

Mrs Gilbertson also outlined the trial Ahuriri/Westshore service which would commence in early October for 6 months with passenger numbers being collected monthly and monitored on a regular basis.

Responding to a question Mrs Gilbertson confirmed that the new service would travel over Shakespeare Road to town and return via Milton Road. Mrs Gilbertson also confirmed that she had had discussions with NCC and Go Bus regarding safety issues on both routes.

RC9/11

Resolutions

That the Council:

2. Receives the verbal update from the Regional Transport Committee Chairman.

3. Adopts the draft Regional Public Transport Plan for public consultation, noting the requirement that the special consultative process contained in the Local Government Act, be followed.

4. Agrees to the commencement of a six-month trial bus service in Ahuriri/Westshore, noting that passenger numbers will be monitored and an update provided to the Corporate and Strategic Committee.

Scott/Rose

CARRIED

Remuneration for Councillors - Amendment to the Elected members Allowances and Expenses

Mr Drury presented this agenda item and advised that Council would amend its policy on Elected Members’ Allowances and Expenses to reflect this increase in vehicle mileage rates.

Councillors expressed concern at LGA’s Determination on mileage allowance and requested that the Chairman have further discussions with the LGNZ Chairman about the unequitable issue of mileage allowance.

Councillor Dick also requested that staff use the email services to Councillors as a message system only and not as a document mover.

RC10/11

Resolution

That the Council:

1. Adopts the amended policy on Elected Members Allowances and Expenses as set out in Attachment 1 to this paper and submits this policy to the Remuneration Authority for their approval for the 2011/12 financial year.

Dick/von Dadelszen

CARRIED

10.

Haumoana Coastal Erosion

Mr Adye updated Council on the report prepared by Mr Dave Serjeant and advised that Mr Serjeant had identified a number of crucial investigations which were required to confirm the design for hard engineering protection proposed by WoW and to also gain a better understanding of the down drift effects

Mr Adye outlined the cost estimates and costs to date which had been jointly shared by HBRC and HDC. He said the extra work estimated to cost $100,000.00 with HBRC meeting 50% would include modelling to identify the downdrift effects and to determine whether there is any impact and what mitigation works would be necessary. It was noted that additional work if completed within the 2011/12 financial year would result in the coastal budget being exceeded by approximately $40,000.00 and other investigation work had already been committed.

Responding to a question Mr Lew advised that HDC had requested an indication on the direct referral of any future resource consent application (to date a resource consent application had not been received) and outlined the reasons why a future resource consent could not be referred to an EPA and had to be referred to the Environment Court.

Mr Lew clarified HBRC’s position as a regulator and confirmed that HBRC staff would still be involved with the notification process, the preparation of a officer’s report and obligations to attend the Environment Court to give evidence should direct referral take place. Mr Lew also clarified Tonkin & Taylor ‘s position in the hearing process and confirmed they would act as Council’s expert witness.

Council discussed its role as a regulator, Council’s impartiality and the processes available for consideration for preferred options in Council’s Coastal Environment Plan. Costs that Council would incur were also explained and it was noted that the Environment Court would charge its own costs to the applicant for a direct referral in order to recover costs.

Concern was expressed that Council should not participate in the process as well as being a regulator and had to be consistent and fair and limit itself to that role. It was also noted that Council had jointly commissioned the report with HDC and there was an obligation for Council to complete the work as the report outline was not as clear as first thought.

Council agreed that more information was required in order to make the best decisions and agreed that the item would lay on the table.

RC11/11

Resolution

1. Council agrees that this agenda item does lie on the table.

Kirton/McGregor

CARRIED

The meeting adjourned at 10.45am and reconvened at 10.55am

16.

Youth Environment Council

Ms Rockwell introduced members of the Hawke’s Bay Youth Environment Council - Anna Michels – Napier Girls High, Ben Roberts – Havelock North High, Christina Gray – William Colenso College, Stephanie Coleman – Taradale High and Ashlin Urieli – Taikura Rudolf Steiner School.

Christina, Ben and Anna gave Council a brief outline of the activities they had undertaken while on the Council, the enjoyment they had received from their accomplishments and the environmental knowledge they had gained.

The students hoped that in future there would be a closer liaison between Councillors and the Youth Environment Council and they were keen to help youth understand the 10 year plan and to participate in preparing submissions.

Mrs Lambert advised Council that Ms Rockwell was leaving Council and acknowledged the outstanding work that she had achieved with the Youth Council. Mr Newman and Councillors also acknowledged the initiative shown by Ms Rockwell and the outstanding work she had undertaken in her time at Council and wished her well for the future.

Chairman Wilson commended the students for the work they were doing and noted it was great to see passion and pride amongst the students.

RC12/11

Resolution

1. That Council receives the report.

Rose/von Dadelszen

CARRIED

11.	Recommendations from the Corporate and Strategic Committee Meeting
	Mr Drury clarified issues that were raised at the Corporate and Strategic meeting on 13 July which included the legal opinion on consultation requirements, further detail on the calculation of the discount, discounts on freeholding leasehold land owned by investors and clarification of the impact of the proposals on lessees that do not freehold. Council discussed the options to maximise the value of Council’s investment in Napier leasehold land, the impact these options could have on current leaseholders and their ability to be able to freehold, the preparation of an investment strategy, the legal opinion prepared by Sainsbury Logan & Williams, and the consultation process which had taken place to date. It was noted that if Council did not make a move on this portfolio at this time there would be a large number of people trapped by a regime that is old and out of date. It was also necessary to take into account the perception there may be investors with leasehold properties who have made an investment decision. Concern was expressed that there was an equity issue, that the methodology was unfair, a pragmatic solution could not be worked out on that basis, that the tiered system was a stop gap and it was not a win for everyone when 50% of the people would have to continue with leasehold properties. Council also discussed the sale of the income stream, whether leaseholders would be disadvantaged if the cashflows were sold to an external investor. The proposed discount amount was also discussed and the importance of an ongoing relationship with leaseholders. Mr Newman confirmed Council would have a clear understanding of the position Council would be in at 9-10 months and a report updating Council would be prepared at that time.
RC13/11	Options to Maximise the Value of the Council’s Investment in Napier Leasehold Land Resolutions That Council: 1. Agrees that there is no requirement to consult on the decision to offer a discount to lessees on freeholding, however the proposal to sell the cash flows from the leasehold portfolio and the purposes for which the sale of proceeds might be used needs to be covered in Council’s Long Term Plan 2012-22. Kirton/Dick CARRIED 2. Agrees that to achieve the objectives of maximising value from the Napier leasehold land portfolio, and consequently having funds available to invest in alternative higher yielding assets within the Hawkes Bay Region the following steps are to be taken: 2.1. Agrees to encourage existing leaseholders to freehold their properties by granting a discount of 17.5% where lessees are not considered to be holding a property for the purposes of investment, and a discount of 10% to those lessees not occupying the leasehold property and renting the property as an investor for the purposes of operating and/or capital gain. These discounts are to apply to the lessor’s interest in determining a purchase price for each freeholding, such discounting to apply to all sale and purchase agreements made and settled between the Council and leaseholders by 30 June 2012. Kirton/Dick CARRIED 5/2 For Councillors Dick, Kirton, Rose, von Dadelszen, Wilson Against Councillors Scott/McGregor 2.2. Agrees to meet the legal costs of all cross leaseholders of up to $1,000 per property, where an agreement for sale and purchase of a cross lease property has been reached and settled by 30 June 2012. This contribution to legal costs is in recognition of the additional special and unique difficulties cross leaseholders have in freeholding their properties. Kirton/Dick CARRIED 2.3. Instructs the Chief Executive to research the level of payment that external investors could pay for the cash flows generated from the remaining portfolio of leasehold properties – i.e. those, not freeholded by lessees by 30 June 2012, and report this information back to Council for consideration. Kirton/Dick CARRIED 5/2
	Shared Services Initiative Councillors discussed the initiatives to local government reorganisation of the opportunity for shared services in the region and noted that it was not an alternative but a way forward and it was complementing the work being undertaken in the region.

RC14/11

Resolutions

That Council:

2. Engage McGredy Winder & Co to prepare a report on the advantages of shared services and how best this should be structured with reference to advantages, if any, in joining another LASS, specifically the Manawatu/Wanganui LASS or with joining a Hawke’s Bay LASS should one be formed.

3. Allocate the sum of $10,000 from Project 840 001 (cost code 2380) for the preparation of McGredy Winder & Co report.

4. Investigates efficiency gains that can be made from investigating shared services with neighbouring regional councils.

Scott/von Dadelszen

CARRIED

RC15/11

The meeting adjourned at 12.35pm and reconvened at 1.10pm.

Regional Economic Development Strategy

Councillors discussed the draft Regional Economic Development Strategy and agreed it was important the Council’s role was defined. Confirmation was received that any major changes in the Strategy would have to be considered by the steering group.

Resolutions

That Council:

2. Receive and adopt the updated Regional Economic Development Strategy.

3. Instruct staff to further progress adoption of the Strategy by Hawke’s Bay Councils together with the Steering Group.

4. Socialise and progress implementation of the Strategy in collaboration with regional stakeholders then review the Strategy in 12 months.

Scott/Rose

CARRIED

Share Services Integration Project

That Council:

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. Approve the funding of $1,295,000 over the three years 2011/12 – 2013/14 to enable the remaining software solutions of Council’s systems integration project to be completed, noting that these remaining solutions include the upgrading of Council’s Website, Intranet, document management system and also provides for the roll out of some of these solutions to Central Hawke’s Bay District Council. It is further noted that the software solutions to be implemented are those proposed by Intergen in response to a request for proposal sent out by this Council.

7. Note that $165,000 of the funding for the Council’s systems integration project is related to the roll out of the document management SharePoint solution to Central Hawke’s Bay District Council.

8. Note that the funding required for the implementation of the remaining software solutions for the systems integration project is consistent with the financial provisions as set out for these projects in the 10 Year Plan 2009-19 with a small increase required to fund shared service initiatives in relation to the software.

9. Note that funding for these projects is to be through loan funding as set out in the 10 Year Plan.

Rose/Kirton

CARRIED

Councillor Kirton left the meeting at 1.25pm

12.

Recommendation from Maori Committee

Mr Moule presented this agenda item and answered questions from Council.

Referring to 6.3 in the draft Charter agreement, Mr Mohi explained the reasons why meetings were no longer held on marae.

Mr Mohi also advised that at the next meeting of the Maori Committee on Tuesday 30 August, representatives from the groups to be part of the Regional Planning Committee would be present. Mr Mohi extended an invitation for all Councillors to attend that section of the meeting.

RC16/11

Resolutions

That Council:

2. Adopts the revised Charter between Regional Council and the Maori Committee.

Scott/McGregor

CARRIED

13.

Heretaunga Plains Urban Development Strategy (HPUDS) - Memorandum of Understanding (MOA) and Terms of Reference (TOR) Approval

Councillor von Dadelszen updated Council on a recent meeting held by Heretaunga Plains Urban Development Strategy (HPUDs) working party where the memorandum of Understanding (MOI) and the Terms of Reference (TORs) were discussed with a number of amendments accepted.

RC17/11

Resolutions

That Council:

2. Endorses the Terms of Reference and Memorandum of Agreement for the Heretaunga Plains Urban Development Strategy Implementation Committee.

von Dadelszen/Dick

CARRIED

14.

Central Hawke’s Bay District Council WasteWater Project

Mr Adye advised that Council had received a request from CHBDC for an interest free loan of $800,000.00 from HBRC reserve fund available for waste water projects so that the implementation of the land treatment scheme could be undertaken sooner.

Mr Adye also advised that HBRC staff are currently working with CHBDC to progress the project however progress is in advance of CHBDC’s original plans and budgetary requirements.

Councillors discussed the request, whether the resource consent would be in place before the commencement of the project and would the consent application be fully notified.

Concern was expressed that Council had set aside funds to assist small communities to replace individual septic tanks with community reticulation and it was not the intention for TAs to access the funds for existing community schemes.

Councillors requested more information on the funding criteria for the project before further discussion could take place.

On behalf of the taiwhenua in the CHB area, Mr Mohi acknowledged Council’s assistance in planting 12,000 trees.

RC18/11

Resolution

That Council:

1. Agrees that this item does lie on the table.

Rose/Scott

CARRIED

15.

July 2011 Work Plan Looking Forward

Mr Newman updated Council about significant work activities currently under way in each area of Council.

Responding to a question Mr Newman advised that there are difficulties with the Craggy Range ride which include access across private land and there is quite a variable grade on the ride which does not meet the standards required.

Council requested further information be provided on this ride and what alternative provisions are being made for the crossing of the hill and for the main ride to be completed.

RC19/11

Resolution

1. That Council receives the July 2011 Work Plan Looking Forward report.

Rose/McGregor

CARRIED

17.

Chairman's Monthly Report

Chairman Wilson tabled his report and updated Councillors on meetings he had attended during the last month.

In response to a question concerning budgets for Councillor training and conferences, Mr Drury advised that these were increased two years ago. Councillors requested that Mr Drury provide updated information to the Chairman for further discussion with Councillors.

RC20/11

Resolution

1. That Council receives the report.

Rose/McGregor

CARRIED

18.

Quarterly Significant Initiatives Update for Council

Mr Newman provided comment on this agenda item and advised that the Afforestation Grants Scheme(AGS) was finishing due to a reallocation of MAF funds.

A request was made for further information in relation to water meter statistics contained in the Water section of the report.

Following discussion on the revised National Environmental Standard for Air Quality and the status of Council’s air quality plan change, Mrs Lambert will forward information to Councillors regarding implications of the Standards revisions for NCC’s appeal against the Plan Change.

RC21/11

Resolution

1. That Council receives the report titled ‘Quarterly Significant Initiatives Update for Council’.

Rose/von Dadelszen

CARRIED

19.

General Business

Proposed Environment Centre – A&P Show

Councillor McGregor outlined a proposal to set up an Environment Centre at the A & P Show to be held in October. There is an empty building at the showgrounds which could accommodate this idea.

Councillor McGregor suggested that Council be the anchor and other organisations such as Fish & Game, Forest & Bird, QE2 Trust, Farm Forestry Association also be involved.

20.

Confirmation of the Public Excluded Minutes for the Meetings held on Wednesday, 25 May 2011 and 29 June 2011

RC22/11

Resolution

That Council excludes the public from this section of the meeting, being Agenda Item 20 Confirmation of the Public Excluded Minutes for the Meetings held on Wednesday, 25 May 2011 and 29 June 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:

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 the Public Excluded Minutes for the Meetings held on Wednesday, 25 May 2011 and 29 June 2011

Open Spaces Investment Update

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.

Confirmation of the Public Excluded Minutes for the Meetings held on Wednesday, 25 May 2011 and 29 June 2011

Port of Napier Limited Results for 6 months ending 31 March 2011

Ruataniwha Plains Water Storage Project

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.

7(2)(c)(ii) To protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide and would be likely otherwise to damage the public interest

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.

Rose/Dick

CARRIED

22.

Recommendation from the Corporate and Strategic Committee

RC23/11

Resolution

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Recommendation from the Corporate and Strategic Committee	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.

Rose/Dick

CARRIED

23.

Business Hawke's Bay Support and Hawke's Bay Regional Council Contribution

RC24/11

Resolution

That Council excludes the public from this section of the meeting, being Agenda Item 23 Business Hawke's Bay Support and Hawke's Bay Regional Council Contribution 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
Business Hawke's Bay Support and Hawke's Bay Regional Council Contribution	7(2)(a) 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.

That Mr Murray Douglas, CEO Chamber of Commerce and Mr Stuart McLauchlan, President of Chamber of Commerce be granted permission to join the Public excluded session for this agenda item.

Rose/Dick

CARRIED

5/1 Councillor Scott against

The meeting went into public excluded session at 2.35pm and out of public excluded session at 3.45pm.

Closure:

There being no further business the Chairman declared the meeting closed at 3.46pm on Wednesday 27 July 2011.

Signed as a true and correct record.

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