Minutes of Regional Council Meeting

1. Welcome/Prayer/Apologies/Notices

The Chairman welcomed everyone present to the meeting and Councillor Belford offered the prayer.

Councillor Belford sought clarification on how agenda items in the Public excluded Section of the agenda were determined.

Responding to a question from Councillor Beaven, Mrs Lambert outlined the process used when requesting items be added to Council agendas.

An apology was received from Councillor Barker with the hope that he would attend the afternoon Council session.

RC1/14 Beaven/Graham

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 January 2014

RC2/14

Minutes of the Regional Council Meeting held on 29 January 2014, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and accurate record.

Scott/Pipe

CARRIED

4. Matters Arising From Minutes of the Regional Council Meeting Held on 29 January 2014

Responding to a question, Mrs Lambert advised that a planned meeting with Ngati Kahungunu Iwi Inc and other parties had not yet taken place, with NKII undertaking to get back to Council with a time and date.

Chairman Wilson advised that during the Councillors’ visit to Wairoa on 4/5 March, time had been allocated to visit the Wairoa offices.

There were no further matters arising from the minutes.

Follow-ups From Previous Council Meetings

Mrs Lambert provided an update on the follow-up items and confirmed that the Komar Report was still expected at the end of March or early April.

The Committee noted that the agenda for the Councillor’s visit to Wairoa currently being prepared would include a meeting with Taiwhenua where the group would be welcomed into the area.

RC3/14

Resolution:

1. That Council receives the report “Follow-ups from Previous Council Meetings”.

Scott/Beaven

CARRIED

Call for any Minor Items not on the Agenda

RC4/14

Resolution

That Council accepts the following minor items not on the agenda, for discussion as item 19:

1. DeLoitte -Councillor Belford

2. MPI -Councillor Belford

3. Maori Charter -Councillor Scott

Wilson/Dick

CARRIED

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 1 DP 11041 CT P1/826 - Agreement for Sale and Purchase 1.1.2 Lot 11 DP 13111 CT E3/553 - Transfer 1.1.3 Lot 12 DP 4488 CT 55/87 - Agreement for Sale and Purchase 1.1.4 Lot 1 DP 11779 CT C3/427 - Transfer 1.1.5 Lot 129 DP 13096 CT E3/527 - Transfer 1.1.6 Lot 41 DP 7201 CT B4/942 - Agreement for Sale and Purchase 1.1.7 Lot 318 DP 11329 CT B3/130 - Agreement for Sale and Purchase 1.1.8 Lot 71 DP 12780 CT E1/744 - Agreement for Sale and Purchase - Transfer	3750 3751 3752 3754 3755 3756 3759 3760 3761	27 January 2014 27 January 2014 28 January 2014 30 January 2014 4 February 2014 11 February 2014 18 February 2014 18 February 2014 18 February 2014
1.2	Subvention Agreement Port of Napier Limited and Hawke’s Bay Regional Council	3753	28 January 2014
1.3	Staff Warrants 1.2.1 A Hicks (Delegations under Resource Management Act 1991; Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908 and Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174) 1.2.2 A Hicks (Delegations under Soil Conservation and Rivers Control Act 1941; Resource Management Act 1991; 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))	3757 3757	12 February 2014 12 February 2014
1.4	Memorandum of Agreement Lot 1 DP6839 CT 105/84 (75m² for soil conservation and river control purposes for the cycle path)	3758	12 February 2014

Responding to a question, Mr Drury confirmed that sale of leasehold land was continuing at a good rate.

RC5/14

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.

Dick/Scott

CARRIED

2013-16 Triennial Agreement

Mrs Lambert provided background information on the Triennial Agreement which was first entered into in December 2003 under section 15 of the Local Government Act 2002 which required all local authorities to enter into a Triennial Agreement.

Mrs Lambert noted that the Agreement had to be presented to all Councils by 1 March of the year following the triennial election. Mrs Lambert outlined the key changes in the 2013 Agreement compared with previous agreements and advised it had been circulated to all other local authorities in the region.

Following discussion by Council, Mrs Lambert responded to questions and confirmed that reference to the functions of the Regional Planning Committee would be included in the Agreement.

RC6/14

Resolutions

That Council:

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, approves 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.

Scott/Pipe

CARRIED

Draft Annual Plan 2014-15 Update

Following a request from the Council workshop held on 11 February, Mr Drury provided an update on work undertaken to reduce the proposed rate level to be included in the draft Annual Plan 2014-15 document. The Draft Annual Plan would be presented to Council at 26 March meeting. Mr Drury also explained the effect of additional funding requests presented at the workshop were approved,

Mr Drury confirmed that costs were deferred last year to achieve a 2.4% rate increase and it was now necessary for those costs to be recovered this year in order to accommodate present levels of service across existing activities in line with the Long Term Plan.

Council discussed the implications of the proposed rate increase, the options available to achieve a lower rate and the possibility of deferring activities into another year. Requests were made that staff consider an easier format be presented at future discussions on rates along with further supporting information that could be more easily understood.

Council noted that following approval of the Draft Annual Plan on 26 March, the Plan would be open for public submission and following the hearings of submissions, there was still an opportunity for further discussion prior to the final approval of the Plan in June.

RC7/14

Resolutions

That Council:

2. Agrees that the Draft Annual Plan 2014-15 to be presented to Council on 26 March 2014 will reflect an increase in rates of 5.86% from Council’s current rating levels.

3. Agrees that Hawke’s Bay Tourism funding be extended for a further year to 30 June 2015 at the current assistance level of $850k per annum, noting that the timing of any revisions in funding levels and an extension of the term of assistance will be considered in line with the 2015-25 Long Term Plan planning cycle.

Scott/Beaven

CARRIED

5/3

12.

Maori Committee Chairman's Verbal Report on the Meeting Held 25 February 2014

Mr Mohi gave a verbal update from the Māori Committee meeting held on Tuesday, 25 February.

Mr Mohi advised that there was widespread support from the Māori Committee for Council’s draft submission to be lodged with the Local Government Commission in particular the Council’s stance on environmental and natural resource issues.

The Māori Committee would also forward their own submission to the Local Government Commission and they encouraged Taiwhenua/Exec to do the same.

RC8/14

Resolutions

That Council:

1. Receives the verbal update from the Chairman of the Māori Committee

Submission to the Local Government Commission on the Draft proposal for HB Local Government Re-Organisation

2. 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.

3. Endorses the submission being prepared by Hawke’s Bay Regional Council for lodging with the Local Government Commission.

Wilson/Scott

CARRIED

The meeting adjourned at 10.30am and reconvened at 10.45am

10.

Recommendations from the Environment and Services Committee Meeting Held 12 February 2014

Mrs Lambert updated Council on the latest amendments to the Draft proposal for HB Local Government Reorganisation following its presentation at the Regional Planning Committee meeting and the Māori Committee meeting.

Concern was expressed that natural resource management, RMA guardianship and the region’s investment funds would be jeopardised under the proposed unitary authority.

Responding to a question, Mrs Lambert outlined the reasons why the establishment of an elected Natural Resource Board had been included in the draft Proposal.

Councillor Graham moved an amendment, seconded by Councillor Beaven

insert prior to the last sentence of the submission “as the Council representing all the communities within the affected areas, HBRC remains neutral on the substantial matter but given the concern we have raised”.................

This amendment was lost 3/5

Councillor Belford moved an amendment but this lapsed as there was no seconder.

Councillor Dick then moved an amendment, seconded by Councillor Hewitt; being:

That the following wording be inserted as the recommendation for this section “A Stand Alone Regional Council “Hawke’s Bay Regional Council recommends that the Local Government Commission seriously considers the retention of the regional council in any final reorganisation scheme; .................................”

This amendment was carried 5/3 and became the substantiative motion.

Resolutions

That Council:

Central Hawke’s Bay Pathways

2. Notes that HBRC staff are working with the Rotary Rivers Pathway Trust to complete the construction of 2 pathways in Central Hawke’s Bay by the commencement of the 2014/15 summer, and will utilise $100,000 committed by HBRC to fund a portion of the project.

3. Authorises the use of the forestry block off Mangatarata Road for a mountain bike park/track subject to satisfactory arrangements for that use being agreed between the Trust and the Chief Executive of HBRC.

Scott/Pipe

CARRIED

Submission to the Local Government Commission on the Draft Proposal for HB Local Government Reorganisation

4. Approves the submission for lodging with the Local Government Commission, as updated in accordance with feedback offered at the meeting of the Environment and Services Committee.

5. That the following wording be inserted as the recommendation for this section “A Stand Alone Regional Council “Hawke’s Bay Regional Council recommends that the Local Government Commission seriously considers the retention of the regional council in any final reorganisation scheme; .................................”

Dick/Hewitt

CARRIED

6.. Notes that the following reports were received at the Environment and Services Committee Meeting on Wednesday 12 February:

5.1. Follow-ups from previous Environment and Services Committee meetings

5.2. On-Farm Water Storage

5.3. Council Flood and Drainage Scheme Riparian Enhancement.

Scott/Pipe

CARRIED

11.

Recommendation from the Regional Planning Committee

In moving the recommendation, Councillor Scott requested that any reports tabled at Committee meetings be included as part of the recommendation going forward to Council.

RC9/14

Resolutions

That Council:

Submission to the Local Government Commission on the Draft proposal for HB Local Government Reorganisation

2. Approves the submission as updated to include amendments agreed at the Regional Planning Committee meeting, for lodging with the Local Government Commission.

3. Agrees that for consistency that all reports tabled at Committee meetings be included in the recommendations going forward to Council.

Scott/Pipe

CARRIED

13.

HB LASS Draft Statement of Intent 2014-15

Mrs Lambert advised that under the requirements of Schedule 8 of the Local Government Act the Board of Hawke’s Bay LASS (HB Local Authorities Shared Services) must prepare and submit a draft Statement of Intent to its shareholders for adoption. Following consideration by Council, Council could seek further activities may be included for Board consideration and the activities could be included in the final Statement of Intent.

Responding to a question, Mrs Lambert advised that LASS had been operating for over 12 months and there was an undertaking to send reports to contributing Councils every 6 months.

RC10/14

Resolutions

That Council:

2. Receives the draft Statement of Intent of HB LASS for 2014-15.

3. Undertakes to provide any comments on the Draft SOI to HB LASS Ltd within two months of 1 March (by 1 May) (LGA Sch8 cl3) to enable delivery of the completed Statement of Intent to Council on or before 30 June 2014.

Scott/Hewitt

CARRIED

14.

Amended Terms of Reference for the Regional Planning Committee

Mrs Lambert provided an overview of the agenda item which gave background information in regard to the interim Terms of Reference for the Regional Planning Committee which Council approved in December 2011.

Mrs Lambert advised that the Regional Planning Committee Bill to establish the Committee permanently would be placed before the Legislative Committee on March 2014 with the Crown wishing to see an agreed Terms of Reference accompany the draft Bill as part of an overall package.

Following an explanation of the proposed revision of the TORs, Council discussed the implications of m) costs of administering and operating the Committee. which stated that those costs would be met by Council. Concern was expressed why costs could not be equally divided and the impacts this could have in Council’s Annual Plan.

Concern was also expressed that the Quorum for the Committee was set at 75% and the voting entitlement which was set at 80% agreement of the Committee members in attendance.

RC11/14

Resolutions

That Council:

2. Resolves to approve the revised Terms of Reference for the Regional Planning Committee for consideration alongside the Regional Planning Committee Bill;

3. Continues to negotiate with Office of Treaty Settlements that support for remuneration of the Treaty Settlement members be recognised as a cost to the Crown rather than ratepayers.

Scott/Pipe

CARRIED

18.

Chairman's Monthly Report

The Chairman tabled his report, covering the January-February period and acknowledged the attendees on the recent South Island trip.

RC12/14

Resolution

That the Chairman’s monthly report for February 2014 be received.

Hewitt/Pipe

CARRIED

The meeting adjourned at 12.25pm and reconvened at 12.55pm

Councillor Barker joined the meeting at 12.55pm

15.

Annual Plan Progress Report for the First Seven Months of the 2013-14 Financial Year

Mr Drury and Mr Collings presented the Annual Plan Progress report which covered the first seven months of the 2013/14 financial year.

Mr Collings advised that currently there is a surplus of $691,000 in the Council’s general funded operations compared to the pro-rata budget deficit of $494,000. The final reforecasting exercise will be completed for the nine months ending 31 March 2014 and will be present to Council at 30 April meeting.

Mr Collings then answered questions from Council.

In response to a question, Mr Maxwell advised that a meeting would be held in the near future with representatives from the Napier Mussel Farm Company to determine the future of that operation.

Council complimented staff on the improved format of the financial reports.

RC13/14

Resolution

1. That Council receives the Annual Plan Progress Report for the First Seven Months of the 2013/14 Financial Year.

Dick/Graham

CARRIED

17.

Monthly Work Plan Looking Forward Through March 2014

Mrs Lambert presented the Monthly Work Plan Looking Forward.

In response to a question, Mr Maxwell gave an update on a global consent trial which was underway with Twyford irrigators.

Responding to a question, Mr Adye advised that the development of a Strategy following the release of the Komar report would have a 2-3 year timeframe with a large amount of staff input from TAs as well as Council.

RC14/14

Resolution

1. That Council receives the Monthly Work Plan Looking Forward Through March 2014 report.

Graham/Belford

CARRIED

16.

HBRIC Ltd and Ruataniwha Water Storage Scheme Monthly Update

Messrs Newman and Hansen and Dr Pearce were in attendance for this item.

Mr Newman, HBRIC Managing Director, presented HBRIC’s monthly report for the period December 2013 through 15 February 2014.

Mr Hansen outlined the design and construction phases to date.

Dr Pearce also presented to Council a background of the RWSS, the difficulties and advantages provided by PC6 to the RWSS, the EPA process and the Board was now awaiting the decision from the Board of Inquiry.

Messrs Newman and Hansen and Dr Pearce then responded to questions from Council.

In moving the recommendation, Councillor Scott thanked HBRIC representatives for a very good over view of PC6 and consent applications.

RC15/14

Resolution

1. That Council receives the “HBRIC Ltd and RWSS February 2014 Update” report.

Scott/Pipe

CARRIED

19.

Minor Items Not on the Agenda

Item	Topic	Councillor / Staff
1.	De Loittes Queried whether the Business case assessment would be a public document	Councillor Belford
2.	MPI A Request for an MPI report had been declined and LGOIMA request was now before the Ombudsman. Sought Council endorsement.	Councillor Belford
3.	Māori Charter Requested that all Councillors be familiar with the Māori Charter particularly as it relates to the Māori Committee	Councillor Scott

Agenda Item 22 - with the exception of pages 21, 22 and 23 - was discussed in Open Session.

22.

Hawke's Bay Regional Investment Company Draft 2014-15 Statement of Intent

Dr Pearce updated Council on the Regional Investment Company’s Draft Statement of Intent prepared for Council (as shareholder) for receipt by 1 March 2014 Comments received from Council would be required by 31 May and would be incorporated into the SOI which would be presented to Council by 30 June for final approval.

Following discussion Council agreed to receive the information and further consideration would take place at the next available Corporate and Services Committee.

Resolutions

2. Receives the HBRIC Ltd Draft Statement of Intent

3. Undertakes to provide any comments on the Draft SOI to HBRIC Ltd within two months of 1 March (by 1 May) (LGA Sch8 cl3) to enable delivery of the completed Statement of Intent to Council on or before 30 June 2014.

Dick/Belford

CARRIED

22.

Hawke's Bay Regional Investment Company Draft 2014-15 Statement of Intent

1. That Council excludes the public from this section of the meeting, being Agenda Item 22 Hawke's Bay Regional Investment Company Draft 2014-15 Statement of Intent 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
Hawke's Bay Regional Investment Company Draft 2014-15 Statement of Intent	7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to 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.

2. That Dr Andy Pearce, HBRIC Ltd Chairman be present for this item as the representative of the Board of Directors subject to the item.

20. Confirmation of the Public Excluded Minutes of the Regional Council Meeting Held on 29 January 2014

1. That Council excludes the public from this section of the meeting, being Agenda Item 20 Confirmation of the Public Excluded Minutes of the Regional Council Meeting Held on 29 January 2014 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
HBRIC Ltd Staff Remuneration Request	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to 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.
Independent Assessment of the Ruataniwha Water Storage Scheme for Council	7(2)(i) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to 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.

Dick/Scott

CARRIED

The meeting went into public excluded session at 3.23pm and out of public excluded session at 4.15pm

Closure:

There being no further business the Chairman declared the meeting closed at 4.16pm on Wednesday, 26 February 2014.

Signed as a true and correct record.

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