Agenda of Corporate and Strategic Committee

Meeting of the Corporate and Strategic Committee

Date: Wednesday 13 April 2016

Time: 9.00 am

Venue:

Council Chamber

Hawke's Bay Regional Council

159 Dalton Street

NAPIER

Agenda

Item Subject Page

1. Welcome/Notices/Apologies

2. Conflict of Interest Declarations

3. Confirmation of Minutes of the Corporate and Strategic Committee held on 17 February 2016

4. Matters Arising from Minutes of the Corporate and Strategic Committee held on 17 February 2016

5. Follow-ups from Previous Corporate and Strategic Committee meetings 3

6. Call for any Minor Items not on the Agenda 7

Decision Items

7. Local Government Elections 2016 9

8. HBLASS Draft Statement of Intent 2016-17 13

Information or Performance Monitoring

9. Health and Safety Update Report for the Period 1 February - 31 March 2016 23

10. April 2016 Public Transport Update 29

11. Update of RWSS Regional Economic Assessment 33

12. Minor Items not on the Agenda 53

Decision Items (Public Excluded)

13. Napier-Gisborne Rail Line 55

14. HBRIC Ltd Draft Statement of Intent 2016-17 57

	Agenda Item	Follow-up / Request	Person Responsible	Status Comment
1	Report and Recommendations from the Finance Audit & Risk Sub-committee	Function of undertaking systematic reviews of Council operational activities, contained in the sub-committee’s terms of reference, is to be added to the Charter	L Hooper	Added as bullet point 5 in the External and Internal Reporting section of the Charter approved by C&S 17Feb16, and subsequently ‘published’:  Undertake systematic reviews (at least one per annum) of significant Council operational activities against Council stated performance criteria to determine efficiency/effectiveness of management and delivery of Council services
2	Draft Councillor Meeting Attendance Records Policy	Include “field trips” as Council business in 4.2	L Hooper	Included in version adopted by Council 24 February 2016, and subsequently ‘published’

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 April 2016

SUBJECT: Local Government Elections 2016

Reason for Report

1. The Local Body Elections are being held this year on Saturday 8 October 2016. There are a number of issues, outlined below, relating to these Elections that Council needs to be aware of and that require input from Council.

2016 Key Dates

2. Listed in Table 1 following, for the Council’s information, are the key dates for the 2016 Elections.

Table 1: Key Dates

13 July 2016	Public Notice of election and Call for Nominations
15 July 2016	Nominations open / Roll open for inspection
12 August 2016	Nominations close (12 noon) / Roll closes
17 August 2016	Public Notice of Day of Election and Candidate Names
By 12 September 2016	Electoral Roll Certified by Territorial Authority Electoral Officer
16 – 21 September 2016	Delivery of Voting Papers
16 September 2016	Early Processing can commence
8 October 2016	Election Day – Voting closes 12 noon. Preliminary results available as soon as practicable after closing of voting.

Appointment of Electoral Officials

3. Under section 12 of the Local Electoral Act 2001 (LEA) the Council must at all times have an Electoral Officer (EO) appointed by the Council to exercise the powers and carry out the duties conferred on the EO by the LEA. Leeanne Hooper currently holds the HBRC EO position, having been appointed by Council resolution on 27 October 2014.

4. The EO may delegate any power or duty under the LEA and must appoint a Deputy Electoral Officer (DEO). The position of HBRC DEO is held by Barbara Mear, having been appointed by Council resolution on 27 October 2014.

5. The Electoral Officer and Deputy Electoral Officer must complete a declaration relating to the 2016 Elections on or after 1 February 2016, and did so on 15 March 2016.

6. The Electoral Officer is responsible for coordinating every election (or poll) within the Council’s area. The general duties of an EO for a Regional Council are:

6.1. The appointment of a DEO

6.2. Enter into Memoranda of Understanding (MoU) to reflect the particular arrangements for the election, including agreement on the fair allocation of costs, with each Territorial Authority in the Region

6.3. The publication of any public notice relating to elections and polls and the calling of nominations

6.4. Receive and process nominations, candidate profile statements and deposits required to be paid

6.5. Announcement of the Preliminary result, and Declaration of the Official result

6.6. Receive and publish returns of electoral expenses, and make copies available for public inspection

6.7. Investigate possible offences under the Local Electoral Act 2001, and report alleged offences to the police

6.8. Oversee payment of the costs of the election in accordance with MoU.

7. Electoral Officers exercise their power independent of the Council.

Voting Papers and Candidate Profile Statements

8. Regulation 31 of the Local Electoral Regulations 2001 (the Regulations) permits each local authority to determine, by resolution, the order each candidate’s name will appear on a voting paper, choosing between alphabetical order of surname, pseudo-random order, or random order.

8.1. Pseudo random order means that the order of the names of the candidates is determined randomly and then all voting documents use that order.

8.2. Random order means the order of the names of the candidates is determined randomly for each voting document during the printing process.

9. Council is able to resolve the order they wish to show on voting papers. Council can choose not to do so, however, in which case the candidates’ names must be arranged in alphabetical order of surname [LER reg 31(3)].

10. It is noted that in past elections, all of the Territorial Local Authorities (TLAs) within Hawke’s Bay resolved to use the alphabetical option. It is useful also to note that all candidate profile statements will be shown in alphabetical order of a candidate’s surname.

Early Processing of Votes

11. In accordance with LEA section 80 Processing before close of voting, the EOs of the Hawke’s Bay TLAs will be processing votes received during the voting period. This means that once received, the voting document will be processed in accordance with LEA sections 82 Justices of the Peace to observe processing before close of voting and 83 Scrutiny of roll, in readiness for counting immediately after the close of voting.

Other Matters

12. A meeting of all Electoral Officers and Deputy Electoral Officers from Napier, Hastings, Central Hawke’s Bay and Wairoa councils and representatives from the District Health Board was held on 8 March 2016, to ensure publicity coordination and provide support to EOs from all Hawke’s Bay councils.

13. A Memorandum of Understanding (MOU) has being drafted by the Society of Local Government Managers (SOLGM) for use by Regional Councils and TLAs to determine election costs paid to TLAs. It is not compulsory to adopt this MOU and this Council may choose to develop agreements with all the TLAs based on past arrangements, or a combination of the two.

Decision Making Process

14. Council is required to make every decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded:

14.1. The decision does not significantly alter the service provision or affect a strategic asset.

14.2. The use of the special consultative procedure is not prescribed by legislation.

14.3. The decision does not fall within the definition of Council’s policy on significance.

14.4. The persons affected by this decision are all voting members of the public, as they have a vested interest in an efficient and accurate electoral process.

14.5. The decision is not inconsistent with an existing policy or plan.

14.6. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

1. That the Corporate and Strategic Committee receives and notes the “Local Government Elections 2016” report.

2. The Corporate and Strategic Committee recommends that Council:

2.1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make decisions on these issues without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2.2. Reconfirms the appointments of Mrs Leeanne Hooper as the Hawke’s Bay Regional Council Electoral Officer and Mrs Barbara Mear as the Deputy Electoral Officer pursuant to Section 12 of the Local Electoral Act 2001.

2.3. Resolves that the order of each candidate will appear on a voting paper:

2.3.1. in alphabetical order of surname, or

2.3.2. in pseudo-random order, or

2.3.3. in random order.

Leeanne Hooper

Governance & Corporate Administration Manager

Paul Drury

Group Manager
Corporate Services

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 April 2016

SUBJECT: HBLASS Draft Statement of Intent 2016-17

Reason for Report

1. To comply with Schedule 8 of the Local Government Act 2002 the Board of Hawke’s Bay LASS Limited, a Council Controlled Organisation, must prepare and submit a draft Statement of Intent to its shareholders for adoption.

Discussion

2. In accordance with the requirements of Schedule 8 of the Local Government Act each Council must consider the draft Statement of Intent. The draft Statement of Intent, for which approval is being sought, was received by Council on 18 March 2016 and covers the period for 2016-17. The final SoI must be approved by Council by 30 June 2016.

3. The draft Statement of Intent is appended as Attachment 1.

4. Matters for Council’s consideration could particularly (but not exclusively) include further activities it wishes to see considered by the Board for investigation. As a shareholder Council can then seek the input of these activities into the final Statement of Intent.

5. The draft Statement of Intent sets out areas of focus for HBLASS in 2016-17.

6. Progress has been made on joint procurement initiatives in the current year. This will be reported on in detail in the Annual Report at the conclusion of the financial year, however it is worth noting that:

6.1. The HBLASS website was launched in September 2015 and provides up to date information on the shared services and initiatives being undertaken by HBLASS

6.2. The launch of HB Viewer in September 2015 is the first New Zealand example of multiple councils launching a data and mapping service into one online viewer

6.3. A long term Information Service Strategy is being developed to provide a single regional service delivery model across all five councils. This is an essential platform to the ability of HBLASS to deliver shares services across a range of functions.

7. Feedback is sought from all five shareholder Councils so that a final Statement of Intent can be adopted by the Councils by 30 June 2016.

Decision Making Process

8. Council is required to make a decision in accordance with the requirements of the Local Government Act 2002 (the Act). Staff have assessed the requirements contained in Part 6 Sub Part 1 of the Act in relation to this item and have concluded:

8.1. The decision does not significantly alter the service provision or affect a strategic asset.

8.2. The use of the special consultative procedure is not prescribed by legislation.

8.3. The decision does not fall within the definition of Council’s policy on significance.

8.4. The persons affected by this decision are ratepayers in the region.

8.5. The decision is not inconsistent with an existing policy or plan.

8.6. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by, or have an interest in the decisions made, Council can exercise its discretion and make a decision without consulting directly with the community or others having an interest in the decision.

Recommendations

1. That the Corporate and Strategic Committee receives and notes the draft Statement of Intent of HB LASS for 2016-17.

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 Significance and Engagement Policy, and that Council can exercise its discretion 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.

3. Undertakes to provide any comments on the Draft SOI to HB LASS Ltd by 1 May to enable delivery of the completed Statement of Intent to Council on or before 30 June 2016.

Liz Lambert

Chief Executive

Attachment/s

HBLASS Ltd Draft Statement of Intent 2016-17

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 April 2016

Subject: Health and Safety Update Report for the Period 1 February - 31 March 2016

Reason for Report

1. This report provides the Committee with an update of key health and safety information for the period 1 February through 31 March 2016.

Background

2. An updated copy of the Health and Safety Reporting Dashboard is appended as Attachment 1 for the Committee’s information.

3. The new legislation comes into force on 4 April 2016. Various information sharing re the new legislation has been undertaken with managers and staff. While there is some concern about the potential impact of the new legislation there has also been some ‘scare mongering’ about the impact from some sources including training providers.

4. WorkSafe have reinforced that if an organisation believes it has good policies and practices in place now, the transition to the new legislation should not cause too much concern.

5. A council wide list of contractors is being compiled and a consistent approach to letting contracts is being developed which incorporates the requirements for the contractor to provide appropriate information in terms of the health and safety component of the contract. This is likely to take the form of externally validated pre-qualification across several councils and possibly the health board.

Decision Making Process

6. Council is required to make every decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). As this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

Recommendation

1. That the Corporate and Strategic Committee receives and notes the “Health and Safety Update Report for the Period 1 February to 31 March 2016”.

Viv Moule

Human Resources Manager

Liz Lambert

Chief Executive

Attachment/s

April 2016 Health & Safety Reporting Dashboard

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 April 2016

Subject: April 2016 Public Transport Update

Reason for Report

1. This agenda item provides the Committee with an update on Council’s public transport operations.

General Information

2. Good progress has been made with the investigation and costing of service improvements for the commencement of the new bus contract on 1 August. These may include: a service between Bay View and Napier; an earlier morning service to meet the needs of HBDHB workers; a modified express Route 12 (Npe-Hstgs) service; and real-time and Google transit information. Any proposed changes will be brought to the Regional Council for consideration before the end of May 2016.

3. Patronage in regional centres around the country continues to decline, with decreases consistent with those seen in Hawke’s Bay. Most regional councils consider that lower petrol prices are the major reason for this. Canterbury Regional Council has commissioned some research into the factors affecting patronage in most centres and the results are expected shortly.

4. Route 12 services at peak times no longer travel via Tait Drive, due to low demand from this area and timetable issues at peak times. Buses instead run directly down Kennedy Road, and two new stops have been placed near Anderson Park. Off-peak services continue to service Tait Drive. Feedback from passengers and the bus company has been positive.

5. To cater for the start of the academic year, we have placed a number of overload services to cater for pockets of high demand and ensure that scheduled services run to time. These are likely to be temporary, as demand generally settles down from April onwards.

Bus Passenger Trips

6. Diagram 1 shows total bus passenger trips during 2012-13, 2013-14, 2014-15 and 2015-16 YTD. At the time of preparation of this report, patronage figures to the end of February were available.

Diagram 1 – Passenger Trips – 2012-13, 2013-14, 2014-15, 2015-16 YTD

7. Total patronage and monthly averages for the 8 months to February for 2012-13, 2013-14, 2014-15 and 2015-16 YTD are shown in Diagram 2.

Diagram 2 – Passenger Trips for the 8 months to February, Monthly Averages

Year	Total Passengers YTD	Monthly Average
2012-13	482,127	60,266
2013-14	514,010	64,251
2014-15	487,289	60,911
2015-16	447,964	55,996

8. As may be seen from Diagram 1, while patronage overall has declined again this year, the February numbers are encouraging, reaching almost the same level as February 2015. As February is the start of the academic year, growth in this month can often signal a change in trend, as student numbers at high schools and EIT may have increased. Once March numbers are in, this will become clearer.

9. Analysis of patronage by route for February, compared with February 2015, shows that Route 20 (Hastings-Flaxmere–Hastings) has shown significant growth. Other routes are consistent or down on last year.

Bus Service Costs

10. The following table shows the net cost (after fares and excluding GST) of operating the goBay bus service between July and December in 2012-13, 2013-14, 2014-15 and 2015-16. The costs include base contract and quarterly incentive and indexation costs, which accounts for the significant price fluctuations between months.

Diagram 3 – Net Cost of Bus Service – 2012-13, 2013-14, 2014-15 and 2015-16 YTD

(53% of this cost is met by the New Zealand Transport Agency).

Fare Recovery

11. Fare recovery is the portion of the total cost of the service that is covered by fares (including Supergold payments from central government). Diagram 4 shows fare recovery in 2012-13, 2013-14, 2014-15 and 2015-16 (YTD).

Diagram 4 – Fare Recovery – 2012-13, 2013-14, 2014-15 and 2015-16 YTD

2012-13	34.26%
2013-14	38.24%
2014-15	38.69%
2015-16 (YTD)	37.55%

Bus Stops

12. Napier City Council has commenced a programme of formalising Napier bus stops. Two new stops have been placed on Kennedy Road in the vicinity of Anderson Park to cater for direct peak services on Route 12.

SuperGold Card Scheme Update

13. Changes have been made to the funding of the SuperGold scheme which provides free off-peak bus travel for people with a SuperGold card. The Minister of Transport has announced that from 2016-17, funding for this scheme will be capped and each region will be bulk funded. Regional allocations will be adjusted annually by the Consumer Price Index but there will be no funding to accommodate growth in numbers of users of the scheme or in the number of trips taken.

14. Regional Councils from the areas where SuperGold card use is growing significantly have had some significant concerns about the possibility that this capped bulk funding approach would transfer the cost to ratepayers.

15. Therefore, the Ministry of Transport and the Transport Agency have undertaken to set up a collaborative approach with Local Government New Zealand to ensure an equitable implementation of the planned changes. Key to this will be the continuation of access to the service for SuperGold cardholders and avoiding the transfer of risk and cost to ratepayers.

16. This approach will involve:

16.1. understanding the actual cost of providing SuperGold free off-peak travel on public transport services, including the tipping point between revenue and cost, as well as the benefits of carrying SuperGold cardholders

16.2. getting value for money from services for taxpayers and users of the scheme, without transferring costs and risks to ratepayers

16.3. getting to a position where regional councils are better able to manage the costs of carrying SuperGold cardholders.

17. A transitional approach will be put in place for 2016-17, based on SuperGold numbers carried in 2015-16.

Total Mobility

18. The Total Mobility scheme, which is funded by regional council, local councils and the NZTA, provides subsidised taxi transport for people who have an illness or disability which prevents them from using public transport.

19. The following tables compare the number of Total Mobility trips made during 2012-13, 2013-14, 2014-15 and 2015-16, and the corresponding costs (excl GST).

20. While the number of TM trips for the year to date is still slightly down on last year, February trips increased in comparison with February last year. This trend will be monitored. At present the cost of TM is 4% less than for the same period last year. This will be partly connected to the overall drop in trips, but may also relate to the types of trips, with fewer long trips undertaken.

Diagram 5 – Total Mobility Trips – 2012-13, 2013-14, 2014-15, 2015-16 (YTD)

Year	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Total
2012-13	6,753	6,839	6,471	7,256	6,925	6,447	6,022	6,320	53,033
2013-14	7,401	6,804	6,611	7,658	7,365	7,185	6,546	7,032	56,602
2014-15	8,320	7,950	7,677	8,267	7,701	7,948	6,354	6,901	61,118
2015-16	7,949	7,219	8,186	7,708	7,876	7,974	6,464	7,325	60,701

Diagram 6 – Total Mobility Cost ($ excl GST) – 2012-13, 2013-14, 2014-15, 2015-16 (YTD)

Year	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Total
2012-13	44,451	44,877	43,241	46,216	45,382	39,880	37,347	40,862	342,256
2013-14	49,274	46,153	43,965	50,189	47,744	46,968	39,581	46,567	370,441
2014-15	55,780	53,489	51,222	54,492	53,590	49,973	38,990	45,943	403,479
2015-16	50,876	46,254	52,339	48,692	51,546	50,991	40,488	46,214	387,400

(60% of this cost is met by the New Zealand Transport Agency)

Decision Making Process

21. Council is required to make every decision in accordance with Part 6 Sub-Part 1, of the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Local Government Act 2002 do not apply.

Recommendation

1. That the Corporate and Strategic Committee receives and notes the “April 2016 Public Transport Update” report.

Anne Redgrave

Transport Manager

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 April 2016

Subject: Update of RWSS Regional Economic Assessment

Reason for Report

1. As part of the information prepared for the Tukituki Catchment Proposal, and considered by the Board of Inquiry, Butcher Partners Ltd produced a report “Regional Economic Impacts and Financial Cost Benefit Analysis of the Proposed Ruataniwha Water Scheme”. The original report was prepared in October 2012.

2. At the December 2015 meeting, Council requested that the Regional Economic Impacts and Financial Cost Benefit Analysis be updated to reflect a range of factors that have changed during the intervening period. These factors include changes in construction costs, irrigable areas, land use mixes, farm profitability and rates of irrigation uptake.

3. This work has now been completed by Butcher Partners Ltd and is appended as Attachment 1.

Summary

4. Summary findings of the updated report are:

4.1. The initial impacts of the project occur during construction and continue over the entire period of farm conversion. It is estimated this phase will generate 5,400 job-years of work in the region and increase GDP by $490m.

4.2. Once the scheme is operating at full capacity the annual GDP increase is estimated at $380m with potentially an extra 3,580 ongoing jobs for the region.

4.3. The net present value of the project (70 years at a 5% discount rate) is estimated to be $732m (an increase of $324m compared to the 2012 report).

Decision Making Process

5. Council is required to make every decision in accordance with the Local Government Act 2002 (the Act). Staff have assessed the requirements in relation to this item and have concluded that, as this report is for information only and no decision is to be made, the decision making provisions of the Act do not apply.

Recommendation

1. That the Corporate and Strategic Committee receives and notes the “Update of RWSS Regional Economic Assessment” report.

Grant Pechey

PRINCIPAL Economic and Legal Advisor

Liz Lambert

Chief Executive

Attachment/s

March 2016 Butcher Partners Ltd Updated RWSS Regional Economic Analysis

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Napier-Gisborne Rail Line	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.

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 Draft Statement of Intent 2016-17	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.

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