MINUTES OF A meeting of the corporate and strategic committee

 

 

Date:                          Wednesday 13 July 2011

 

Time:                          9.00am

 

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

 

Present:                     F Wilson - Chairman

A J Dick

N Kirton

E McGregor

L Remmerswaal

K Rose

C Scott

E von Dadelszen

 

In Attendance:          A Newman – Chief Executive

P Drury – Group Manager – Corporate Services

E Lambert – Group Manager – External Relations

G Hansen – Group Manager – Water Initiatives

M Drury – Committee Secretary

 


1.      WELCOME/APOLOGIES/NOTICES

Chairman Wilson welcomed everyone to the meeting.

C&S13/11   Resolution

1.     Apologies from Councillor Gilbertson, Mr Mohi and Mrs Aspinall were accepted.

Rose/von Dadelszen

CARRIED

Chairman Wilson requested the Committee to consider discussing Agenda item 12– Ngaruroro Pre-feasibility presentation in the public excluded section of the meeting.  Chairman Wilson outlined the reasons for this request.

The Committee discussed this request and agreed to hold this item in the Public Excluded Section.

 

2.      CONFLICT OF INTEREST DECLARATIONS

         There were no conflict of interest declarations.

 

3.      CONFIRMATION OF MINUTES OF the Strategic Planning and Finance Committee MEETING held on 15 June 2011

SPF14/11SPF15/11

Resolution

1.     That the minutes of the Strategic Planning and Finance Committee meeting held on Wednesday 15 June 2011, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and accurate record.

Rose/McGregor

CARRIED

 

4.      Matters Arising from Minutes of the Strategic Planning and Finance Committee MEETING held on Wednesday 15 June 2011

There were no matters arising from the minutes.

 

5.

Action Items from Strategic Planning and Finance Meetings

 

Mr Newman and Mr Drury updated the Committee on the status of the Action items listed.

Mr Newman advised that to date there had not been any requests for rates relief from farmers in the region who had been affected by the Easter Floods.

Mr Drury gave an update on the Regional Tourism Organisation meeting which he had attended on Tuesday 12 July. Chairman Wilson advised that Mr Drury had attended the meeting as his replacement as he was attending meetings outside the region.

SPF16/11

Resolution

1.      That the Committee receives the report.

Scott/Rose

CARRIED

 


 

6.

Call for General Business Items

 

1.      Ahuriri Estuary Booklet – 40 years

2.      Leave

 

7.

Shared Services Initiatives

 

Mrs Lambert provided an outline of a proposal to move forward on shared services initiatives and advised that the benefits of shared services were highlighted in a report presented to Council in June 2010 identifying areas where collaboration was already occurring between Councils as well as a range of potential functions that could also be shared.

Mrs Lambert gave examples of proactive attempts made by HBRC for shared services with TAs in the region and the pushback which was encountered.

Mrs Lambert explained that HBRC was continuing to explore options for advancing shared services in order to achieve cost savings for its ratepayers.

Mrs Lambert reported on a recent meeting Mr Drury and she had attended with Horizon’s Regional Council, who already have a Local Authority Shared Service (LASS), to gauge the willingness of the MWLASS to consider HBRC joining.  The proposal had received positive feedback.

The Committee discussed the benefits that would be achieved if HBRC and other TAs joined an existing LASS and is seeking clarification on how the LASS currently operates and manages its operational projects and the funding implications for Council if the proposal to join was to proceed.

The Committee requested that the Chairman send a letter to all TA Councillors in the region outlining HBRC’s proposals for shared services and the Terms of Reference be attached with the letter.

Mr Newman confirmed following agreement that McGredy Winder & Co would be engaged to provide a report on shared services and how this should be best structured and it was hoped a final report would be presented to Council at its September meeting.

In moving the recommendation, Councillor Scott congratulated staff for the moves taken in relation to shared services as it was an important step to giving value to the ratepayers.

SPF17/11

Resolutions

The Corporate and Strategic Committee recommends 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.      Engages 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 and for development with local authorities in the region.

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

 

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

Scott/McGregor

CARRIED

 

The meeting adjourned at 10.25am and reconvened at 10.45am

 

9.

Regional Economic Development StrategY

 

Mr Bassett-Foss advised the Regional Economic Development Strategy, which had been received by Council at its 25 May meeting, had now been considered by the Reference and Steering groups as requested by Council.

Mr Bassett-Foss confirmed that the Strategy had been prepared in a collaborative way with input from many organisations within the region including primary sector groups which were not represented by the Chamber of Commerce.  Mr Bassett-Foss also explained that within the Strategy there was flexibility and it was important that collaboration continued to achieve the global objectives.

The Committee discussed the Strategy document, some outstanding amendments were noted, and further amendments were suggested.  The Committee also noted that the strategy was a ‘living’ document which would be received regularly and would assist in finding the right solutions.

Following concern expressed about the purpose of the Strategy and whether it was ready for final adoption, the Committee noted that the Strategy had identified areas which required urgent focus including resilient private migration attraction and visitor growth.

SPF18/11

Resolutions

The Corporate and Strategic Committee recommends 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.    Receives and adopts the updated Regional Economic Development Strategy.

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

4.     Socialises and progresses implementation of the Strategy in collaboration with regional stakeholders, then reviews the Strategy in 12 months.

von Dadelszen/Scott

CARRIED 7/1

 

10.

Options to Maximise the Value of the Council's Investment in Napier Leasehold Land

 

Mr Drury provided the Committee with an overview about the possible options available to Council for maximising cash from its investment in Napier leasehold land.  He explained Council’s objectives, and gave the Committee an updated profile of the Council’s investment in Napier leasehold land.

 

Mr Drury also outlined the situation in regard to cross leases and advised that because of the additional special and unique difficulties cross leaseholders would have in freeholding their properties, Council proposed to contribute up to $1,000 per property to the legal costs by all parties to successfully conclude the purchase of their cross leased property from the Council.

The Committee discussed the options to maximise value from the portfolio, sought clarification around the yield expectations, the proposed discount of 15-20% and the timeline around the process of 12-18 months.  It was noted that this was an opportunity to give Council more flexibility in their investments and to move in a different direction.

Mr Newman confirmed that Council was looking for a significantly better yield than the current one and the driver was to align investments in the region which would in turn contribute to economic growth with reinvestment around regional equity.

Concern was expressed that individuals caught up with cross leases could find themselves in a difficult situation and other lessees already facing economic distress may be unable to take part in a discounted sales scheme.  There were equity issues and Council was attempting to provide solutions to the many problems.

Following further discussion about the proposed discounted rate, it was agreed that the rate be amended to 17.5% which was a fair value and could be an incentive for leaseholders to consider freeholding.

There was also concern expressed about the level of discount to be provided to lessees who are investors.

SPF19/11

Resolutions

The Corporate and Strategic Committee recommends 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 Ten Year Plan 2012-22.

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 Hawke’s Bay region the following steps are to be taken:

2.1.   Council encourages existing leaseholders to freehold their properties by granting a discount of between 17.5% from the lessor’s interest in determining a purchase price for each freeholding, such discount to apply for all sale and purchase agreements made and settled between the Council and leaseholders by 30 June 2012.

2.2.   Council 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 leased property has been reached and settled by 30 June 2012 in recognition of the additional special and unique difficulties cross leaseholders have in freeholding their properties.

2.3.   Council approves the sale of residual cash flows generated from freeholds not sold by 30 June 2012 to investors on terms and conditions to be approved by the Council.

 

 

 

 

3.      Agrees that a target for completion of these processes to maximise value from the Napier leasehold land portfolio be set at 31 December 2012.

Kirton/Dick

5 For: Kirton, Dick, Rose, von Dadelszen, Wilson

3 Against: Scott, McGregor, Remmerswaal

CARRIED

The meeting adjourned at 1.20pm and reconvened at 1.45pm, with Councillor Scott not in attendance.

8.

Shared Systems Integration Project

 

Mr Drury introduced Mr Kahl Olsen and Mr Dave Fulton, who then gave a presentation which highlighted the remaining solutions that Council needed to undertake to complete the Systems Integration Project that was included in the 10 Year Plan.

Mr Olsen explained the objectives that the remaining implementation would achieve which included ensuring Council operated within a modern, robust and adaptable framework and also delivers a customer focussed, single-view platform that would make information transparent and accessible to all users via Website, Intranet and Extranet services.

Mr Olsen also outlined the properties of Microsoft SharePoint 2010 which would provide a toolset that allows all Council staff and stakeholders to collect, manage and share data and information.

Councillor Scott returned at 1.55pm

The Committee discussed the proposal that TAs could utilise the system and expressed concern about the recovery of costs and noted that Council would probably take a leadership role in this project.

The Committee agreed that $165,000 set aside for the roll out Sharing of Solution project with Central Hawke’s Bay over 2012/13 and 2013/14 would provide efficiencies and savings in staff time and therefore the funds would be quickly recovered.

SPF20/11

Resolutions

The Corporate and Strategic Committee recommends 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 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.

3.      Notes 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.

4.      Notes 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.

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

Scott/von Dadelszen

CARRIED

 

11.

Public Transport Update

 

Mrs Gilbertson updated the Committee on public transport services including trends since the previous update in March 2011. Mrs Gilbertson advised that patronage was continuing to rise which matched to an increased fare revenue.

Mrs Gilbertson also advised that following a request from Ahuriri business owners for a bus service, discussions were being held with Go Bus and if there is agreement, a trial would take place during the summer months.

Mrs Gilbertson confirmed that Design Line in Christchurch from whom Go Bus had ordered four new buses had been placed into receivership but there were no cost implications to Council.

Responding to a question regarding the Sunday bus service from Hastings Mrs Gilbertson advised that it runs every day apart from public holidays but she would investigate the possibility of those days also being covered in future.

The Committee agreed that with the upward trend in the use of bus service, it was timely that a media release be prepared.

SPF21/11

Resolution

1.      That the Corporate and Strategic Committee receives the Public Transport Update.

Rose/Kirton

CARRIED

 

13.

General Business

 

Ahuriri Estuary Book – 40 years

Councillor Remmerswaal advised a copy of the booklet would be placed in the Councillor’s lounge.  The booklet was a “good read” and highlighted the outstanding work that had been completed around the estuary which was a real asset for the future.

Leave

Councillor Remmerswaal advised she would be absent from the 27 July Council meeting.

 

12.

Ngaruroro Pre-feasibility Presentation

C&S22/11

Resolution

That the Committee excludes the public from this section of the meeting, being Agenda Item 12 Ngaruroro Pre-Feasibility Presentation 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

Ngaruroro Pre-Feasibility Presentation

7(2)(j)  Prevent the disclosure or use of official information for improper gain or improper advantage.

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

 

von Dadelszen/Scott

carried

 

14.

Purchase of Property

SPF23/11

Resolution

That the Committee excludes the public from this section of the meeting, being Agenda Item 14 Purchase of Property 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

Purchase of Property

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.

 

McGregor/Scott

CARRIED

 

 

The meeting went into public excluded session at 2.50pm 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 13 July 2011.

 

Signed as a true and correct record.

 

 

 

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