Minutes of Corporate and Strategic Committee

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting.

Mrs Lambert advised that there is no meeting with Ngati Kahungunu Iwi Inc tomorrow as she had not received any confirmation from the NKII board.

Mrs Lambert also advised that emails will be sent to councillors to check availability for a meeting with Deloitte in relation to setting the terms of reference for the RWSS final business case review.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3. Confirmation of Minutes of the Corporate and Strategic Committee Meeting Held on 22 April 2015

C&S22/15

Resolution

Minutes of the Corporate and Strategic Committee meeting held on Wednesday, 22 April 2015, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Scott/Beaven

CARRIED

4. Matters Arising from Minutes of the Corporate and Strategic Committee Meeting Held on 22 April 20159

In relation to item 9 Hawke’s Bay Sports Facilities Plan, Mrs Lambert confirmed that there is no financial contribution from, or budget implications for the regional council.

There were no matters arising from the minutes.

Follow-ups From Previous Corporate and Strategic Committee Meetings

Mrs Lambert updated the committee on the status of the follow-up items.

C&S23/15

Resolution

1. That the Committee receives the report “Follow-ups from Previous Corporate and Strategic Committee Meetings”.

Wilson/Pipe

CARRIED

Call for any Minor Items Not on the Agenda

Recommendations

There were no minor items raised for discussion as Item 14.

HB Tourism 2014-15 Year-End Report and 2016-19 Proposed Key Performance Indicators

The Chairman introduced Annie Dundas, who in turn introduced Mr Neil Barber and Mr Mike Mohi (interim Board representative of Maori Tourism).

Ms Dundas expressed a collective thank you from HB Tourism and the tourism sector, for endorsement provided by additional funding, before providing an overview of comparatives with different areas and providing detail around the proposed KPIs.

Discussion traversed:

· HB Tourism ‘one stop’ web page, advertising and social media

· Visitor numbers, spend data and breakdowns

· Observable, measurable KPI for Maori tourism

· Employment statistics from the sector, including new jobs created

Discussion relating to achievements in 2014-15 and activities under way traversed:

· Promotional events held

· Jetstar proposal from HB Tourism

· Spring/summer advertising campaigns

· Representation of Maori Tourism on the Board and growing meaningful cultural offerings

C&S24/15

Resolutions

1. That the Corporate and Strategic Committee receives and takes note of the HB Tourism 2014-15 Annual Report and Key Performance Indicators, including feedback provided.

The Corporate and Strategic Committee recommends that Council:

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. Approves the key performance indicators for Hawkes Bay Tourism Ltd for 2015-16; contained in the following table.

Wilson/Graham

CARRIED

	Activity	HBRC KPIs
Consumer Marketing	Deliver an annual consumer marketing plan to ensure Hawke's Bay maximises all media opportunities both paid and unpaid.
Brand	Manage and protect the Hawke's Bay brand to ensure the brands integrity in all use by all parties	Manage and protect the Hawke's Bay brand to ensure the brands integrity
Campaign	The development and delivery of an annual media plan that is based around a Seasonal Campaign Strategy	Campaign activity will deliver Increased website traffic to www.hawkesbaynz.com by 50% annually
		Increase social channel footprint within Facebook, Twitter, Instagram. Each by 50% per annum
PR/Media	The delivery of the Hawke's Bay Tourism International and Domestic Media Programme	Host a minimum of 30 international and domestic media per annum
		Deliver stories and Hawke’s Bay content to over 100m people per annum
		Coverage received will have the equivalent EAV of $10m per annum
	Activity	HBRC KPIs
Digital	The delivery of a strong digital platform to share Hawke's Bay content and information for visitors.	The development of one visitor website for Hawke's Bay. To be completed by June 2016.
		Increased website traffic to www.hawkesbaynz.com by 50% annually
		Increase social channel footprint within Facebook, Twitter, Instagram. Each by 50% per annum
		Deliver 60,000 leads directly to member websites in year one. Grow by 50% per annum.
Collateral & Promotional Material	Deliver a series of promotional material both digital and printed to serve the needs of visitors and in line with the overall brand positioning for Hawke's Bay	Produce and deliver the annual Hawke's Bay Visitor Guide. Produce the Hawke's Bay Trails Map as well as other regional collateral as required.
Content	Deliver a consumer content strategy for all channels used by HBT	Pull together a content calendar for year round seasonal content for all cities and districts
Research	Deliver an annual research programme to monitor and measure the regions visitor performance	Provide the industry with up to date data pertaining to the visitor industry in Hawke's Bay. This will be distributed via the industry website.
Events	Deliver the Regional Events Strategy	Implement the Regional Events Strategy via joint collaboration with all Councils, Sport Hawke's Bay and other relevant agencies. Key outcomes - a regional events calendar updated, a well balanced portfolio of events year round, off-season events developed
	FAWC! Food and Wine Classic Hawke’s Bay	Deliver both Summer and Winter F.A.W.C! FAWC! to deliver at least 40-50% of participants from out of town each year. Continue to grow the event in terms of numbers -10,000 tickets available by 2018.
	The Big Easy	Deliver The Big Easy at Easter to ensure the event captures at least 40-50% of participants from out of town each year. Continue to grow the event to 2000 participants by 2017.
	Hawke’s International Bay Marathon	Deliver a world class event alongside organisers Lagadere for three years. This will involve a starting base of 2500 competitors in year one to grow to 4,000 by 2018.

	Activity	HBRC KPIs
Trade Marketing	Deliver the annual trade marketing plan to ensure Hawke's Bay is well represented within the distribution channel both offshore and in New Zealand.
International Marketing Alliances	Maintain membership of both Explore Central North Island Alliance which promotes the Pacific Coast Highway and Thermal Explorer Highway. (8 North Island regions) and Classic New Zealand Wine trail Alliance (4 regions) to ensure international presence for Hawke’s Bay.	Deliver international trade initiatives alongside other regional partners. Attend a minimum of 3 international trade shows (see below) and participate in growing the touring routes Hawke’s Bay is part of. Full international focus of activity and all directed at the travel agent community.
Trade Famils	Deliver an international trade famil programme to educate the travel industry about Hawke's Bay with the aim to sell more of the region via the Distribution Channel	Host a minimum of 50 travel agents, product managers and inbound tour operators in the region annually
Digital	Deliver and maintain a Tourism Industry Website for operators within Hawke's Bay. www.hawkesbaytourism.nz	Keep updated the industry website with relevant press releases, research, presentations and industry news.
Workshops	Conduct a Workshop Series to educate local operators	6 - 10 workshops to be held annually. Topics to include new markets, market segments, and social channels
Trade Shows	Represent Hawke's Bay and its tourisms sector at a range of leisure/FIT (free and independent travellers) trade shows throughout the year in New Zealand and overseas	HBT to attend the following trade shows annually; TRENZ and Explore. HBT to represent Pacific Coast Highway (Explore Central North Island Alliance) at Kiwi Link events in China, USA, UK.
Business Tourism Events	Represent Hawke's Bay and the Conference and Meetings sector at a range of business trade shows throughout the year in New Zealand	HBT to attend the following business trade shows annually; Meetings and Convene
Tourism Awards	Deliver the annual Hawke's Bay Tourism Industry Awards	Generate at least 20 entries per annum into the Hawke's Bay Tourism Awards (September each year)
Tourism Development	Identify key tourism development projects to encourage economic growth to the region	Begin scoping of tourism opportunities in Wairoa/Waikaremoana. Work with local iwi to understand Maori tourism product - the gaps and opportunities
Markets	Develop a clear plan for China tourism to Hawke's Bay	Develop and maintain Hawke's Bay content for the China market - to be distributed via Weibo. Build a China Marketing Group to develop join marketing opportunities

	Activity	HBRC KPIs
Membership	Manage and grow the annual membership programme of the Hawke’s Bay Tourism Industry Association
	Deliver an annual membership programme in order to generate additional funds for the organisation and develop a strong well educated and coordinated industry.	Generate a minimum of $100,000 in revenue from the annual membership programme.

Stakeholder Management	Deliver quarterly reports to the Hawke's Bay Regional Council	4 x Quarterly reports delivered as well as Financials
Financial Management	Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC	Manage all budgets and deliver monthly and quarterly financial reports to both the HBT, HBTIA Boards and to HBRC
Staff Management	Manage all staff and conduct annual reviews	Annual reviews it be conducted for all staff. Training needs worked through and planned to improve staff skills

Forestry Investments

Mr Mike Adye introduced Mr James Powrie (HBRC Land Services Advisor).

Discussions and queries traversed:

· Open spaces funding will be used for recreational forests, and investment funds where appropriate

· Species values, for eucalypts as an example, other than carbon credits

· Carbon credits and how those work

· Waihapua trial and concept plan for development

· Manuka plantings’ production life for honey and potential use as pioneer species for indigenous forest regeneration

· Options to transfer forestry investments from HBRC to HBRIC and tax implications

The meeting adjourned at 10.31am and reconvened at 10.55am

· Land value and forest value of Waipukurau and Waipawa, and expenditure associated with development for uses other than the land-based effluent discharge purpose they were purchased for

· Harvest access at Tutira

· Mountain bike park development in Waipukurau

C&S25/15

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 engagement 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 that staff should progress the development of a concept for a walking/mountain bike track network within the Waihapua property, with the potential to link through Tangoio and to Tutira, in collaboration with interested groups and neighbouring properties.

3. Agrees that HBRC enter into an Agreement with a community group for the establishment of a mountain bike park within the Waipukurau Forest for public recreation and enjoyment for the period of the current CHBDC wastewater consent (expiring 2030), and delegates authority to the Interim Chief Executive to determine the terms and conditions of such an Agreement, with the terms of the final agreement to be brought to Council for ratification.

4. Agrees to the proposed management approach for the HBRC forest estate being:

4.1. Pruning up to 50% of Pinus Radiata stands to give the option of pruned logs in the sales mix.

4.2. Manage Eucalyptus regnans and E. fastigata and E. maidenii with a low cost regime of thinning only, with some targeted pruning of extremely productive areas to provide the option of higher grade saw logs at harvest

4.3. Prune and thin between 80-100% of other species to provide high quality timber.

5. Agrees to the development of a carbon sales protocol to allow informed and timely carbon trading decisions according to an agreed risk profile, and requests staff to progress its development for Council consideration during 2016.

6. Notes the significant returns projected for harvesting the Tutira pine forest between 2019 and 2022 and that these returns have been included in HBRC LTP 2015/25 financial forecasts.

7. Notes that on average over a full rotation the estimated long term return on HBRC’s investment in the forest estate is expected to be around 6-7% for full rotations (subject to variations in prices and harvest yields). The returns from Manuka honey are expected to be greater than 6% - 7% which reflects the limited further expenditure required on these crops.

8. Notes Council’s continued direct ownership of the forest estate will provide the following benefits:

8.1. Continued integrated Council management of the open space policy on these lands together with achieving a reasonable positive return from their commercial operations

8.2. Significant financial returns over the long term; and

8.3. These financial returns will be received free of income tax whilst the forest estate continues to be directly owned by the Council.

Dick/Scott

CARRIED

10.

Implications of New Health and Safety Legislation

Mr Viv Moule introduced Mr Peter Gardiner and Mr Nigel Formosa from Worksafe, who provided a presentation on the implications for the governors, of the Health and Safety at Work Act 2015, which becomes operative 1 April 2016.

Key messages in the Act are:

· No longer “do I have responsibility?” – is now “what is my responsibility?”

· PCBU – Person conducting business or undertaking – has the primary duty of care to: ensure a safe work environment; safe plant and structures; safe systems of work; safe use, handling and storage of substances; adequate facilities; information, training, instruction and supervision; and monitor workers health to prevent injury or illness

· Overlapping and shared responsibilities

· Officer = senior governance role that exercises significant influence over the management of the business, e.g. CE, has a duty to exercise due diligence to ensure the PCBU is putting the right focus on health and safety

· Worker = employee, contractor, sub-contractor, employee of a contractor or sub-contractor, employee of a labour hire company, person on work experience, volunteer worker, apprentice or trainee

· Workers accountable, responsible for following rules and using PPE gear provided

· Mental Health and bullying now considered Health and Safety issues

· Identify and manage the risks

· Health and safety must be part of the organisation’s culture

· Get workers involved, engaged and participating

C&S26/15

Resolution

1. That the Corporate and Strategic Committee receives the “Implications of new Health and Safety Legislation” presentation by WorkSafe.

Scott/Wilson

CARRIED

11.

Human Resources 2014-15 Annual Report

Mr Viv Moule, HR Manager, highlighted key metrics from the HR report.

Discussion and queries traversed:

· Staff training budgets reduced

· Staff turnover average 8.2% over last 3 years (6% 2014-15 while turnover nationally for local government was 12.4%)

C&S27/15

Resolution

1. That the Corporate and Strategic Committee receives the “Human Resources 2014-15 Annual Report”.

Scott/Paku

CARRIED

13.

Gravel Resource Inventory and Gravel Demand

Mr Gary Clode explained the key issues in supply and demand from the reports distributed as attachments to the agenda.

Discussion and queries traversed:

· The implications of unsustainable gravel extraction on several waterways, versus the lack of extraction negatively impacting on the Upper and Middle Tukituki flood protection schemes

· Waipawa River gravel volume above grade line

· Ngaruroro River

· Sharing of information relating to river ecology

· Gravel management review will be undertaken over next couple of years, and recommendations for changes to policies will be made to Council

C&S28/15

Resolution

1. That the Corporate and Strategic Committee receives and takes note of the “Gravel Resource Inventory and Gravel Demand” report.

Beaven/Pipe

CARRIED

The meeting adjourned at 12.40pm and Councillors Beaven and Belford were excused

The meeting reconvened at 1.09pm

Recommendations from the Finance Audit & Risk Sub-committee

The report was taken as read.

C&S29/15

Resolutions

That the Corporate & Strategic Committee:

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.

HBRC Risk Management

2. Confirms the Sub-committee’s confidence that the risk assessment process outlined in the “HBRC Risk Management” report is an appropriate process to identify and assess organisational risks.

Reports Received

3. Notes that the following reports were provided to the 22 September Finance Audit & Risk Sub-committee:

3.1. Audit of Annual Report Year Ending 30 June 2015

3.2. Internal Audit Programme

3.3. Work Programme Going Forward

Wilson/Scott

CARRIED

Item 10 was considered immediately following item 8, at 11.15am.

Item 11 was considered immediately following item 10, at 11.55am

12.

September 2015 Public Transport Update

The report was taken as read.

C&S30/15

Resolution

1. That the Corporate and Strategic Committee receives the September 2015 Public Transport Update report.

Dick/Pipe

CARRIED

Item 13 was considered immediately following item 10, at 12.05pm

14.	Minor Items Not on the Agenda
	There were no Minor Items for discussion.

15. Public Excluded Recommendations from the Finance Audit & Risk Sub-committee

Resolution

That Council excludes the public from this section of the meeting, being Agenda Item 15 Public Excluded Recommendations from the Finance Audit & Risk Sub-Committee 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

Independent Representative on Finance Audit & Risk Sub-committee

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.

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.

Barker/Wilson

CARRIED

The meeting went into public excluded session at 1.15pm and out of public excluded session at 1.25pm

Closure:

There being no further business the Chairman declared the meeting closed at 1.25pm on Wednesday, 23 September 2015.

Signed as a true and correct record.

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