MINUTES OF A meeting of the Corporate and Strategic Committee

Date:                          Wednesday 11 December 2013

Time:                          1.00 pm

Venue:

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

Present:                     TB Belford

A J Dick

R Graham

S Haraki

D Hewitt (Chairman)

D Pipe

C Scott

F Wilson

In Attendance:          E Lambert – Chief Executive

P Drury – Group Manager Corporate Services

H Codlin – Group Manager Strategic Development

M Adye – Group Manager Asset Management

L Hooper – Governance & Corporate Administration Manager

G Ide – Team Leader Policy

T Skerman – Economic Development Manager

C Gilbertson – Transport Manager

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting, this being the first meeting of the Corporate and Strategic Committee in the new Triennium.

Resolution

C&S39/13       That the apologies for absence be received from Crs Rick Barker and Peter Beaven and Mr Piri Prentice.

Pipe/Scott

CARRIED

Cr Wilson advised that to date no replies have been received from the Mayors that were invited to attend the 18 December Regional Council meeting to receive an update on the Ruataniwha Water Storage Scheme.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3.	Follow-ups From Previous Corporate and Strategic Committee Meetings
	Mrs Lambert advised that the status updates in relation to items raised at the 4 September 2013 Corporate and Strategic Committee meetings were noted on the list with detail appended.
C&S40/13	Resolution 1.      That the Committee receives the report “Follow-ups from Previous Corporate and Strategic Committee Meetings”. Wilson/Scott CARRIED

4.	Call For Any Minor Items Not on the Agenda
C&S41/13	Resolution That Corporate and Strategic Committee accepts the following minor items not on the agenda, for discussion as item 12: 1. Gravel Extraction (Belford) 2. Floods in CHB (Hewitt) 3. Update from Mangaroa Hui (Pipe) 4. Update on Napier-Gisborne Rail (Dick) Scott/Dick CARRIED

5.	HBRIC Ltd Board of Directors Membership
	Mr Heath Caldwell introduced himself, and Mrs Lambert provided an overview of the Company processes relating to the Transition Board of Directors and the timelines of when a Permanent Board is to be established. Mrs Lambert advised that the two options presented for Councillors to consider today involved the removal of councillor directors from the Transition Board of Directors for the period to 30 June 2014; either to be replaced by two subject matter experts or for the Board to continue operating with only the three independent directors and Managing Director for that period. Councillor Scott left the meeting at 1.20pm Discussion ranged from the implications on the quorum of the Board, to the automatic appointment of the HBRC Chief Executive as Managing Director of HBRIC Ltd and to possible conflicts of interest of the expert advisors and director workloads. It was suggested that the company’s constitution would need to be amended in relation to the quorum in addition to the changes already put forward. Mr Stuart Webster responded to queries relating to changes to the Constitution and when those changes would take effect, as well as explaining that the Constitution provides the mechanics of how the Company operates. Cr Rex Graham stated that he wanted the constitution to include a statement “that the directors can not at any time sell any HBRIC Ltd shares without the permission of Council”. Mr Webster clarified that any changes made to the Constitution would take effect immediately unless otherwise resolved by Council.
C&S42/13	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.      Confirms that it has considered the potential solutions for the perceived conflict of interest and: 2.1.      Resolves to appoint Danelle Dinsdale and David Faulkner as Directors to replace the three Councillor Directors on the Transition Board of Hawke’s Bay Regional Investment Company Limited for the period to 30 June 2014, noting that the number of Directors will be reduced from seven to six. Dick/Wilson For: Dick, Wilson, Pipe, Haraki, Hewitt Against: Belford, Graham CARRIED 3.      Agrees that Clauses 8.1 and 8.3(a) of the Constitution be amended to: “8.1   Minimum and maximum numbers: The minimum number of Directors shall be three (3) and the maximum number of Directors shall be seven (7). 8.3     Appointment of Directors and Chairperson: a.    HBRC shall appoint at least three (3) and up to seven (7) Directors to the Board of the company (including the right to appoint and remove and nominate alternates) in accordance with HBRC’s Policy concerning Director appointments of existing Council Members (Councillor Directors), and Directors who are independent of the Council (Independent Directors). HBRC shall appoint a Chairperson from amongst the Directors so appointed;” 4.      Agrees that Clause 2.4 of Schedule 2 of the Constitution be amended to: “2.4   Chairperson:  In accordance with clause 8.3 of the Constitution, HBRC shall appoint a Chairperson of the Board from amongst the Directors.” 5.      Notes that a policy on the appointment and remuneration of Directors is to be developed and presented to the next (12 March 2014) Corporate and Strategic Committee meeting. Pipe/Wilson CARRIED

6.	HBRC Staff Accommodation - Guppy Road Operations and Wairoa
	Mr Adye explained that the land on which the Guppy Road operations is sited is reserve land and therefore not saleable. In response to a query, Mr Adye explained that the buildings were no longer Code compliant in terms of updated Building Code and Health & Safety requirements. Discussion covered possible implications of the Region’s local authorities being amalgamated; both on staff and facility requirements and expertise. The possibility of relocating the Wairoa office was also discussed, as was the accommodation of Department of Conservation staff at the Wairoa office and Council’s strategic relationship with DoC.
C&S43/13	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.      Agrees to proceed with refurbishments to the office accommodation building at HBRC’s Guppy Road site as outlined in Option 2 of this briefing paper at an estimated cost of $410,000 plus GST. 3.      Does not proceed with improvements of the HBRC Wairoa office. Pipe/Graham CARRIED

11.	Public Transport Update
	Mrs Gilbertson provided an overview of the report and further detail relating to Public Transport funding, the current service provider and the trend of increasing patronage as well as the Bikes on Buses initiative and the Total Mobility programme. Councillor Scott re-joined the meeting at 2.43pm.
C&S44/13	Resolution 1.      That the Corporate and Strategic Committee receives the Public Transport Update. Hewitt/Scott CARRIED

7.	Hawke's Bay Local Government Reorganisation Draft Proposal
	Mrs Lambert provided a brief overview of the history of the reorganisation proposal for Hawke’s Bay, and the rationale of the Council’s submission last year of an alternative proposal to the Local Government Commission; being the long term commitment of any future local authority to the particular environmental regulation functions of regional councils. It was suggested that Council’s submission seek that investments be ring-fenced for the preservation and enhancement of the natural resources in the region.
C&S45/13	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.      Decides to lodge a submission to the Local Government Commission on its Draft proposal for the reorganisation of local government in Hawke’s Bay, based upon  reinforcing the need for any local government structure within Hawke’s Bay to have a specific focus on the management of natural resources in recognition of the region’s strong linkages to its primary production sector. 3.      Requests that a draft submission is brought to the 12 February 2014 Environment & Services Committee and the 25 February 2014 Maori Committee meetings for consideration prior to the final submission for lodging with the LGC at the Council meeting for adoption at the Regional Council meeting on 26 February 2014. Scott/Wilson CARRIED

The meeting adjourned at 3.05pm and reconvened at 3.20pm

9.	Oil and Gas Exploration Policy Development
	Jonathan Gibbard (Manager Regional Relationships – Stakeholder Engagement) and Pieri Munro (Chief Advisor Maori) – NZ Petroleum and Minerals (NZP&M) (previously Crown Minerals) introduced themselves before Mrs Lambert provided a brief overview of the discussions to date on stakeholder and community engagement related to potential oil and gas exploration in the Region. NZ Petroleum and Minerals has a section of the organisation with a role in promotion, which is separate from the role that Mr Gibbard and Mr Munro’s team performs involving community engagement and consultation and also separate from the NZP&M regulatory section. The symposium held in Hastings in October could be considered a ‘lead in’ to the process being considered. NZP&M (as a Joint Partner) may be able to provide facilitation services for meetings, staff resource to develop documents.
C&S46/13	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.      Endorses, in-principle, the draft public engagement proposal for oil, gas and energy policy development set out in Attachment 1, including any amendments arising at the Committee meeting. 3.      Notes that staff will present a further report to the Corporate and Strategic Committee meeting in March 2014 (including a revised memorandum of understanding; revised terms of reference for multi-stakeholder group; stakeholder group composition; and details of resourcing and budget implications) about a public engagement proposal for oil, gas and energy policy development in Hawke’s Bay. Councillor Belford proposed an amendment, seconded by Councillor Graham; being: 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 staff will present a further report to the Corporate and Strategic Committee meeting in March 2014 (including a terms of reference for a multi-stakeholder group; stakeholder group composition; and details of resourcing and budget implications) about a public engagement proposal for oil, gas and energy policy development in Hawke’s Bay. Belford/Graham LOST The amendment was LOST and so the original motion became the substantive motion. 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.      Endorses, in-principle, the draft public engagement proposal for oil, gas and energy policy development set out in Attachment 1, including any amendments arising at the Committee meeting. 3.      Notes that staff will present a further report to the Corporate and Strategic Committee meeting in March 2014 (including a revised memorandum of understanding; revised terms of reference for multi-stakeholder group; stakeholder group composition; and details of resourcing and budget implications) about a public engagement proposal for oil, gas and energy policy development in Hawke’s Bay. Wilson/Scott CARRIED

8.	Appointment to the HB Tourism Board
	Mrs Lambert provided a brief introduction to the item and overview of the rationale for the Council appointment. Councillor Wilson provided detail as to the role of the Councillor representative on the Board in his view and experience, and some insight into the role of HB Tourism and industry related issues. Councillor Wilson nominated Councillor Pipe, seconded by Councillor Dick. Councillor Pipe accepted the nomination and was appointed to the position.
C&S47/13	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.      Appoints a representative to the Board of Hawke’s Bay Tourism; being Councillor Councillor Dave Pipe. Wilson/Dick CARRIED

10.	Approach/Timelines for Annual Plan 2014/15
	Mr Drury provided an explanation of the process of developing Council’s Annual Plan, using the 2014-15 budget forecasts from the 2012-22 Long Term Plan.
C&S48/13	Resolution 1.      The Corporate and Strategic Committee receives this Approach/Timelines for Annual Plan 2014/15 report and notes the relevant Council meeting dates for the Annual Plan 2014/15 process. Dick/Belford CARRIED

12.

Minor Items Not on the Agenda

Item	Topic	Councillor / Staff
1.	Gravel Extraction Seeking information about the Awatoto gravel extraction resource consent process.	Cr Belford
2.	Floods in CHB Recent flooding in Onga Onga. Mr Adye explained that the Tukipo had flooded and damage was being assessed. A report will be provided to the February E&S meeting, and in the meantime Mr Adye will provide Councillor Hewitt with up to date information relating to the event.	Cr Hewitt
3.	Update from Mangaroa Hui Felt the meeting was excellent and good progress being made on resolving water related issues.	Cr Pipe

Closure:

There being no further business the Chairman declared the meeting closed at 4.35pm on Wednesday, 11 December 2013.

Signed as a true and correct record.

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