Agenda of Corporate and Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

Subject: Rocket Tourism in Wairoa

Reason for Report

1. This report updates the Corporate and Strategic Committee on the outcomes of a HBRC part-funded scoping study of rocket tourism and related-infrastructure challenges and opportunities for the region that might arise from Rocket Lab establishing a launch range at Onenui Station on the Mahia Peninsula.

Background

2. Auckland-based, and now US-controlled, start-up company Rocket Lab is proposing to launch medium sized rockets (approx 16m in length) for the delivery of low orbit satellites for both commercial and government customers from Mahia Peninsula. Low orbit satellite technology is advancing rapidly internationally and there is significant potential for this industry to generate substantial returns for NZ.

3. The East Coast is an ideal location for launching rockets due to geography and isolation. However, NZ lacks the infrastructure and capabilities to support a rapidly growing industry at this time and the growth of the industry faces constraints. Rocket Lab has been working towards a goal of capturing sizeable market-share in this industry for ten years and has significant backing from central government, which have designated the business development as a Project of National Significance, introduced special legislation and created a NZ Space Agency to enable launches to occur.

4. The Wairoa District Council has been working to leverage this opportunity for economic development in the district by seeking to attract Rocket Lab’s operations to Wairoa and support the launches in both regulatory and non-regulatory ways. Based on experience with rocket launch ranges overseas there is believed to be a strong prospect that launches will attract visitors to Northern Hawkes Bay to watch. Wairoa District Council have identified this prospect as a key driver of increased tourism-related economic development for the region and it is for this reason HBRC is assisting the District Council with exploring this opportunity.

5. In response HBRC agreed to co-ordinate and part-fund a scoping study to ascertain the nature and extent of this opportunity. A contract to undertake this work was awarded to the locally-based Giblin Group and TRC Tourism, led by national tourism expert Dave Bamford. Funding for the study was shared between the Ministry of Business Innovation and Employment ($33k), HBRC ($13k), HB Tourism ($10k), Wairoa District Council ($5k) and Gisborne District Council/Activate Tairawhiti ($5k). The providers have undertaken interviews in the district and liaised with Rocket Lab, as well as local and central government in providing their advice. The draft report is attached (Attachment 1).

Report Findings

6. In summary the report finds that observing rocket launches is likely to be attractive to some additional tourists but notes that it is difficult to quantify the extent of this interest with any precision at this point. In some cases tourists, both domestic and international, might be expected to visit the district especially to witness a launch, and in other cases tourists already visiting or passing through might be expected to stay longer or programme their activities around a launch. These visitors are likely to spend on accommodation, hospitality and other tourist attractions bringing income to the district that would not otherwise occur without rocket launch activity.

7. The report notes the limited range of accommodation and hospitality options in the district and the constraints this may have on visitor experiences. The report notes that further investment may be required in facilities and services but notes that local private sector operators are taking a “wait and see” approach rather than ramping up capacity in anticipation at this point. Wairoa District Council intends developing viewing sites with parking and toilet facilities as an initial priority, and has proposed a space visitor centre for education and tourism and a ‘space coast’ cycleway between Wairoa and Mahia.

8. The report notes the high level of uncertainty that exists around the launch activity, including the technical and commercial success of Rocket Lab, who are operating in a highly competitive industry with new technology. Launches can be plagued by technical and weather challenges that makes predicting the timing of launches difficult, especially in the early phases of development. Viewing launches at close proximity is forbidden by regulatory requirements and the extent of the viewing spectacle is unknown with the most likely closest public viewing location approximately 20km from the launch site.

9. Following an initial testing phase, expected to occur later this year once legislation has been enacted and approvals issued, Rocket Lab hope to have monthly launches during the first year or two. The timing of the first three test launches is expected to be kept confidential at the request of Rocket Lab and central government. However, requirements to establish a large exclusion zone around the launch site during the launch ‘window’ will notify those in the area of the impending launch and it is expected that word will get out and spectators will arrive. Wairoa District Council are already working with Rocket Lab, MBIE and Onenui Station to manage traffic and road closures, as well as security and the exclusion zones.

10. The report recommends taking a ‘wait and see’ approach to tourist related investment, supporting the test launches logistically to manage likely interest, and undertaking market research during the testing phase to better gauge levels of ongoing interest and likely needs and expectations of rocket inspired tourists. The report recommends the establishment of an inter-agency steering group, including HBRC, to oversee and monitor the initial activity and contract research.

Discussion

11. HBRC staff support the recommendations of the report, and the ‘wait and see’ approach while gathering more information on the nature of the opportunities. Staff do not believe that any capital investment is warranted at this time while so much uncertainty surrounds the technical and commercial success of Rocket Lab, the nature of the spectacle for visitors, how much visitor demand will eventuate and when this might occur. Staff believe there to be good prospects that rocket tourism will add to the mix of a growing number of tourism product offerings in Northern Hawkes Bay and should be part of an overall package of work to promote the Wairoa District as a destination.

Next Steps

12. It is proposed that HBRC economic development staff remain involved in the project through participation in the proposed steering group and up to $20,000 in funding be made available to support further market research. Further research will ensure that any proposals from Wairoa District Council for funding support are based on sound analysis and evidence of demand and financial sustainability.

Financial and Resource Implications

13. It is proposed that up to $20,000 be contributed to the funding of further market research which can be accommodated within the Economic Development consultancy budget and staff time of between 20 and 40 hours, including travel time, is likely to be required for HBRC to be involved over the next 6 months.

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 Wairoa District Council and Hawkes Bay Tourism.

14.5. Options that have been considered include ceasing participation in any further work on rocket tourism related opportunities. Staff believe that such a decision would be premature and that given the reasonable prospects for regular rocket launch activity to eventuate there is merit in continuing to support investigations.

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

14.7. 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 “Rocket Tourism in Wairoa” 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 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.

2.2. Endorses the Group Manager Strategic Development contributing up to $20,000 to fund further market research on the rocket tourism and related-infrastructure challenges and opportunities, from the Economic Development consultancy budget.

Authored by: Approved by:

James Palmer

Group Manager
Strategic Development

Liz Lambert

Chief Executive

Attachment/s

Rocket Tourism in Wairoa

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

Subject: Elected Representatives Register of Interests Policy

Reason for Report

1. Having received advice from Audit NZ about their expectations of Council’s “Elected Members’ Register of Interests” as part of their annual audit, and further to the questions raised by councillors as to what should or should not be included in the register of interests, staff are providing this report to clarify requirements for elected representatives about minimum expectations when recording interests for HBRC.

2. It is proposed that those expectations and requirements be reflected in an appropriate Policy, which will be appended to the Code of Conduct for Elected Representatives.

Findings and Recommendations from Audit New Zealand

3. In its management letter to HBRC for its audit of the 2014-15 Annual Report Audit New Zealand noted:

“The interest register should be enhanced by documenting how any identified conflicts will be managed or mitigated.

We noted that the interest register does not include mitigating actions for potential conflict identified. This creates a risk that conflicts identified are not addressed appropriately.

Due to the nature of the public sector there will always be a level of inherent risk related to conflicts of interest. In a small country such as ours it is quite common for people to have multiple interests. However in the public sector, where high standards of ethical conduct are expected, these interests need careful management if they come into conflict.”

4. We note that the majority of the interests registered by Councillors and key management personnel (KMP) are shareholdings and directorships. Council’s procurement policy mitigates significant contracts being awarded without proper consideration of conflicts of interest.

5. Further, Audit New Zealand noted:

“We look at Councillor interests for both related parties and conflict of interest so there is no threshold for those. Best practice would be to list everything and then note why it is not something that would create a conflict or what mitigation is in place if there is a potential conflict. Also Council should have monitoring in place for Members Interests declared so $25k is not inadvertently breached in relation to contracts with members providing services to Council.

How Elected Members’ Interests are Administered at Present

6. At its meeting on 30 July 2014 HBRC adopted its amended Code of Conduct for Elected Representatives (CoC). Section 3.8 of the CoC sets out the requirements for members to make an annual declaration of interests.

7. The Register of Interests is designed to achieve two things:

7.1. Provide transparency in the governance of the Council, to increase public confidence and to enhance the democratic process

7.2. Protect elected members on the event of scrutiny and public criticism.

8. The Register of Interests does not imply that a conflict of interest exists. It is a public record of the interests held by the elected member in property, legal entities and organisations within the region.

Local Authorities (Members’ Interests) Act 1968

9. The Local Authorities (Members Interests) Act (1968) (LAMIA) applies to the pecuniary interests of members of local authorities. It controls the making of contracts worth more than $25,000 in a financial year between members and their authority; and it prohibits members from participating in matters before the authority in which they have a pecuniary interest, other than an interest in common with the public.

10. Section 6 of LAMIA sets out where a pecuniary interest is deemed to exist and these are:

10.1. The member (or spouse or partner) singly or between them own, directly or through a nominee, 10% of more of the issued capital of the company, or of any other company controlling that company

10.2. The member (or spouse or partner) is a member of the company and either of them is the managing director of the general manager of the company

10.3. The member (or spouse or partner) is a member of a company controlling the company having a pecuniary interest in the matter before the governing body of the local authority and either the member or their spouse/partner is the managing director or the general manager of that controlling company

10.4. The member (or spouse or partner) is the managing director or general manager of the company having a pecuniary interest in the matter before the governing body of the local authority and either of them is a member of the company controlling that company.

Clarification of Matters Raised

11. Councillors have raised questions regarding the content of the Register of Interests.

Benchmark for inclusion in Register

12. One question has been whether or not there is a benchmark below which an interest does not need to be included in the Register.

13. As noted above the LAMIA 1968 specifies a “trigger” of 10% or more issued capital in a company for assessing whether or not a conflict of interest exists. However, as previously stated the Register of Interests is not a record of conflict of interest – it is a matter of public record of interests that the elected members has, and therefore there is no minimum threshold for inclusion.

Discretionary Beneficiary

14. Audit New Zealand advises that if an elected member is classed as a “discretionary beneficiary” to a Trust there remains the ability for that member to benefit from the Trust and therefore it should be included in the Register of Interests.

Membership of Organisations

15. Membership of community organisations is unlikely to give rise to a pecuniary interest in matters involving those organisations because of their “not for profit” nature. However in a situation where membership of an organisation entitles an elected member to a share of the organisation’s assets if the organisation is wound up a prospective pecuniary conflict of interest may arise.

16. In respect of a non-pecuniary conflict of interest, the risk of a Council decision being challenged based on an elected member’s membership of an organisation is likely to be very low if the elected member participates and:

16.1. They are a passive or ordinary member of the club and the organisation is relatively large; or

16.2. The matter affects the organisation only indirectly – such as a broad public policy issue in which the organisation has chosen to take an interest.

17. In the interests of transparency, however, it is recommended that the Register should reflect any and all interests of the elected member on the Companies Register – even if a member considers there is little or no risk of a conflict.

18. Audit New Zealand noted:

Companies Check

Audit’s expectation is that the client (HBRC) should have done their check against the companies office register for both KMP and Councillors for both directors/shareholdings and checked against their system for any transactions as part of their year end review. If this check is documented the audit team will recheck.”

Mitigation of Pecuniary Conflicts of Interest

19. The management letter from Audit New Zealand states:

We noted that the interest register does not include mitigating actions for potential conflict identified. This creates a risk that conflicts identified are not addressed appropriately.

20. For most of the inclusions in the Register Council’s procurement policy mitigates significant contracts being awarded without proper consideration of conflicts of interest.

21. Other mitigation measures could include, but are not limited to:

21.1. taking no action (transparency through noting the interest in the Register is sufficient)

21.2. seeking a formal exemption to allow participation (if such a legal power applies)

21.3. withdrawing from discussing or voting on a particular item of business at a meeting;

21.4. relinquishing the private interest

21.5. resignation from one or other position or entity.

22. It is proposed that the Council’s Register of Interests includes provision for members to identify mitigation actions.

Conclusion

23. The Register of Interests for Elected Members is a tool for helping Council to conduct it business in an open, transparent and democratically accountable manner.

24. The Register of Interests is intended to be a publicly available document that identifies all the interests an elected member has within Hawke’s Bay.

25. The addressing of a conflict of interest, either perceived or real, and either pecuniary or non-pecuniary, sits within several pieces of legislation. At the suggestion of Audit New Zealand the Register of Interests should identify courses of action that a member may take to avoid such conflicts.

26. The Draft Policy attached for the Committees consideration is based upon the current content within the Code of Conduct and it is proposed that the policy be appended to the Code of Conduct upon its adoption.

Decision Making Process

27. 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:

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

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

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

27.4. The persons affected directly by this decision are elected representatives on the Hawke’s Bay Regional Council and ratepayers, and indirectly the ratepayers of the region.

27.5. Options that have been considered include not preparing a policy but continuing to rely on content of Code for Conduct.

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

27.7. 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. The Corporate and Strategic Committee receives and notes the “Elected Representatives Register of Interests Policy” report.

2. The Corporate and Strategic Committee recommends that Council:

2.2. Adopts the Policy on Register of Interests for Elected Members, including any amendments agreed at the Committee meeting.

Authored and Approved by:

Liz Lambert

Chief Executive

Attachment/s

Draft Register of Interests Policy for Elected Members

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

SUBJECT: Code of Conduct for Elected Representatives Review

Reason for Report

1. Under Schedule 7 Part 15 of the Local Government Act 2002, councils are required to adopt a Code of Conduct for members of the Council at the beginning of each triennium. Clause 4.3 of Council’s Code of Conduct requires Council to formally review the Code prior to the end of each three year term. Any suggestions for improvement and recommended amendments will be noted and referred to the new Council.

Background

2. Schedule 7 Part 15 of the Local Government Act 2002 states:

‘15. Code of conduct—

(1) A local authority must adopt a code of conduct for members of the local authority as soon as practicable after the commencement of this Act.

(2) The code of conduct must set out—

(a) understandings and expectations adopted by the local authority about the manner in which members may conduct themselves while acting in their capacity as members, including—

(i) behaviour toward one another, staff, and the public; and

(ii) disclosure of information, including (but not limited to) the provision of any document, to elected members that—

(A) is received by, or is in the possession of, an elected member in his or her capacity as an elected member; and

(B) relates to the ability of the local authority to give effect to any provision of this Act; and

(b) a general explanation of—

(i) the Local Government Official Information and Meetings Act 1987; and

(ii) any other enactment or rule of law applicable to members.

(3) A local authority may amend or replace its code of conduct, but may not revoke it without replacement.

(4) A member of a local authority must comply with the code of conduct of that local authority.

(5) A local authority must, when adopting a code of conduct, consider whether it must require a member or newly elected member to declare whether or not the member or newly elected member is an undischarged bankrupt.

(6) After the adoption of the first code of conduct, an amendment of the code of conduct or the adoption of a new code of conduct requires, in every case, a vote in support of the amendment of not less than 75% of the members present.

(7) To avoid doubt, a breach of the code of conduct does not constitute an offence under this Act.’

Discussion

3. The current Code of Conduct was adopted by Council on 30 July 2014, and a copy is attached.

4. In the Chairman’s view the Code of Conduct is at present of little value because when it is required to be used there are no sanctions to back up any possible action. The Chairman requests that the incoming Council closely considers the effectiveness of the Code as currently adopted.

Decision Making Process

5. 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 contained in the Act in relation to this item and have concluded:

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

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

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

5.4. The persons affected by this decision are the elected representatives.

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

5.6. 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 “Code of Conduct for Elected Representatives Review” 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 this issue without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2.2. Recommends the adoption of the attached Code of Conduct by the incoming Council for the 2016-19 triennium, subject to any changes made to enhance the effectiveness of the Code through the development of effective sanctions for breaches.

Authored and Approved by:

Liz Lambert

Chief Executive

Attachment/s

Code of Conduct for Recommendation to Incoming 2016-19 Regional Council

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

Subject: Proposed Governance Structure Recommendation to the Incoming Council for the 2016-19 Triennium

Reason for Report

1. At the end of a triennium, Council traditionally recommends a Committee structure to the incoming Council. This structure needs to enable Council to effectively discharge its responsibilities over the next three years. This paper proposes a structure and associated delegations for Council to consider for recommendation.

Background

2. Appropriate governance structures are vital to enable Council to function effectively as an organisation. As part of the ongoing process of working to improve the overall effectiveness and efficiency of Council there has been discussion around appropriate Committee arrangements for the next triennium.

3. Council’s current structure has been operating since 2015, with the establishment of the Finance, Audit and Risk Sub-committee. Prior to that there had been no significant changes to the Committee structure since 2012.

4. The current structure operates as follows.

5. Council is required by statute to have a Regional Transport Committee and a Regional Planning Committee. The Civil Defence Emergency Joint Committee is required under section 12 (1) of the Civil Defence Emergency Management Act (2002).

6. The Environment and Services Committee and the Corporate and Strategic Committee consider and make recommendations to Council on wide-ranging matters related to the undertaking of Council’s business.

7. Other committees cover specific issues, such as selection of tenders (Tenders Committee) in excess of staff financial delegations, and resource consent hearings. These committees both meet when required.

8. The Māori Committee is made up of representatives of four taiwhenua within Hawke’s Bay, as well as three councillors, and makes recommendations to the Council on matters of relevance affecting the tangata whenua of the region.

Comments on Specific Committees

Environment and Services Committee

9. This Standing Committee covers many of the operational activities of Council, especially those of the Asset Management and Resource Management groups. Over the current triennium 14 Environment and Services Committee meetings have been held and no meeting has extended beyond six hours duration. This suggests that the meeting frequency and the meeting agendas are pitched about right. It is proposed that the Environment and Services Committee be retained with its current Terms of Reference and that 4-5 meetings are scheduled in any calendar year.

Corporate and Strategic Committee

10. This Standing Committee is responsible for considering and recommending to Council strategic planning initiatives including development of the Council’s Strategic Plan and other strategic initiatives with external stakeholders. It also deals with a number of operational issues outside of the Asset Management and Resource Management Group remits.

11. Over the current triennium the Corporate and Strategic Committee has met 15 times, of which two meetings were for specific single items (Napier-Gisborne Rail, and the Deloitte Peer Review).

12. With the establishment of the Finance, Audit and Risk Sub-committee in 2015 some of the Corporate and Strategic Committee workload has been diverted, and generally speaking, the Corporate and Strategic Committee agendas have dealt with fewer items and been of shorter duration.

13. The Corporate and Strategic Committee remains an important vehicle for dealing with a range of Council’s business. However it is recommended that the Chair of this committee also be appointed as chair of Finance, Audit and Risk to prove a comparable workload to the Environment and Services Committee Chair role.

Finance, Audit and Risk Sub-committee

14. The Finance Audit and Risk Sub-committee is responsible for examining the robustness of Council’s risk management systems, of appropriate controls to safeguard the Council’s financial and non-financial assets, and the independence and adequacy of internal and external audit functions.

15. It meets four times each calendar year. At present the Sub-committee reports to Council via the Corporate and Strategic Committee. This reporting line was set up as the sub-committee was developed when there was a level of uncertainty about how it would operate in relation to the C & S Committee.

16. It is now recommended that the sub-committee be re-named as a committee, retains the membership of four councillors and one independent member, and reports directly to Council, and that the Terms of Reference be amended accordingly. This has the advantage of allowing scheduling of this committee to alternate with the C & S Committee rather than being dependent on it.

Emergence of the Hawke’s Bay Regional Planning Committee Act 2015

17. In August 2015 the Hawke’s Bay Regional Planning Committee Act came into effect.

18. The purpose of the Act is to improve Tāngata Whenua involvement in the development and review of documents prepared in accordance with the Resource Management Act 1991 for the Hawke’s Bay region.

19. That Act also establishes the Hawke’s Bay Regional Planning Committee (RPC) as a joint committee of the Hawke’s Bay Regional Council.

20. Given the workload expected to be undertaken by the Regional Planning Committee staff will be giving serious consideration to increased meeting frequency for this committee as part of the drafting of the Meeting Schedule for 2017.

21. Enactment of the RPC Act prompts at least two matters which both require further consideration by the incoming Council:

21.1. the future respective roles of the RPC and the HBRC Maori Committee; and

21.2. appointment of an additional member to retain equal numbers with Tāngata Whenua RPC membership.

Appointment of an Additional Council member to RPC

22. The RPC Act provides for an equal number of Tāngata Whenua members and Council members. With the trustees of Tūhoe Te Uru Taumatua likely to soon appoint their member, there will be ten Tāngata Whenua RPC members. Section 11(1)(j) of the RPC Act anticipates ten council members appointed by the Council. Given there are only nine councillors, the tenth position will require an appointment in accordance with clause 31(3) of Schedule 7 of the Local Government Act 2002. That clause requires Council to be satisfied that the person appointed “has the skills, attributes, or knowledge that will assist the work of the committee.”

23. There are a number of options how the Council might approach the task of appointing a tenth member to the RPC. Staff intend presenting a range of options for the incoming Council to consider in November.

Maori Committee

24. The Māori Committee is made up of representatives of Ngati Kahungunu Iwi Incorporated’s four taiwhenua within Hawke’s Bay, as well as three councillors, and makes recommendations to the Council on matters of relevance affecting the tangata whenua of the region. It meets up to five times per year.

Discussions within Tāngata Whenua about Role of Maori Committee and Regional Planning Committee

25. Within the RPC Tāngata Whenua membership, discussions occurred regarding the role and purpose of the Māori Committee. To further explore this, a joint meeting was called by both the Chairs of the respective committees, Mike Mohi (Māori Committee) and Toro Waaka (Co-Chair RPC).

26. Following the meeting on the 4 July in Napier, key items emerged that looked to the functionality of both committees and the needs of Māori externally and servicing the Council and its staff.

27. It was recommended that a further discussion occur with Council staff to draft an options paper going forward.

28. Staff believe there is a need to explore the ongoing relevance of the Māori Committee particularly as it relates to engagement with Tāngata Whenua. The key issues that staff believe relate to this discussion include the following:

28.1. HBRC needs to fulfil statutory responsibilities to engage in planning, resource consents and with its operational activities

28.2. The Pātaka tool (an online resource of Tāngata Whenua information in Hawke's Bay) provides the connection with key contacts and staff within their daily work programmes have established strong relationships with Tāngata Whenua which includes local marae and whanau groupings.

28.3. With the majority of the Treaty settlement groups having now settled with the Crown HBRC has a larger number, and depth, of relationships with tāngata whenua that needs proactive management

28.4. HBRC needs to develop greater cultural competency and staff awareness of obligations and expectations. This was the background for the Māori Committee’s LTP request in 2015 for an Executive-level appointment to operate in this space.

28.5. Recent Māori Committee hui in Wairoa and Tamatea have highlighted the benefits of reaching out to the community. Greater structure and regularity to this would be desirable

28.6. For the effective functioning of the Regional Planning Committee HBRC needs to look at greater support for the RPC and at the involvement of RPC in Council matters that affect tāngata whenua, including engagements on significant matters.

Next Steps

29. In relation to the future role of the Māori Committee a report will be submitted for consideration at the 28 September Council meeting. This report will be guided by the discussion held at the August Corporate and Strategic Committee meeting, and particularly the response of committee members to the matters raised in paragraph 27, and any other matters raised at the meeting.

Decision Making Process

30. 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:

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

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

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

30.4. The persons affected by this decision are incoming councillors and those members of staff and the public participating in and contributing to Council and Committee meetings.

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

30.6. 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 “Proposed Governance Structure Recommendation to the Incoming Council for the 2016-19 Triennium” report.

2. The Corporate and Strategic Committee recommends that Council:

2.2. Notes to the incoming Council that the Regional Planning Committee, the Regional Transport Committee and the Civil Defence Emergency Joint Committee are all required by statute and their establishment is not subject to a decision of Council.

2.3. Requests staff provide a report with recommendations on the future role of the Māori Committee for consideration at the 28 September 2016 Council meeting.

2.4. Recommends to the incoming Council that the current Committee Structure be retained with the following exceptions:

2.4.1. The Finance, Audit and Risk sub-committee be established as a committee reporting directly to Council

2.4.2. The Corporate and Strategic Committee and the Finance, Audit and Risk Committee be chaired by the same elected representative

2.4.3. Final recommendations on the Māori Committee will be made at the 28 September Council meeting..

2.5. Agrees that the Council’s appointment of an additional member to the Regional Planning Committee will be a matter for the incoming Council to decide at its 9 November 2016 meeting, as part of its process of adopting the 2016-19 Governance structure.

Authored by:

Leeanne Hooper

Governance & Corporate Administration Manager

Gavin Ide

Manager, Strategy and Policy

Joyce-Anne Raihania

Senior Planner
Maori Policy Advisor

Approved by:

James Palmer

Group Manager
Strategic Development

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

Subject: August 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. Preparations are well underway for the implementation of bus improvements in conjunction with the start of the new bus contract, which was on 1 August 2016. As outlined in paragraph 12, service and timetable alterations are due to be introduced from Monday 26 September.

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.

Bus Passenger Trips

4. Diagram 1 shows monthly bus passenger trips during 2012-13, 2013-14, 2014-15 and 2015-16 for the year to 30 June.

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

	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun
2012-13	59,275	74,493	61,847	60,530	64,913	46,029	47,577	67,463	76,119	63,430	76,924	62,792
2013-14	64,869	78,729	69,564	63,807	67,784	50,219	48,391	70,647	82,265	63,285	74,988	65,297
2014-15	64,349	73,204	68,927	62,049	64,088	48,558	43,049	63,065	74,992	53,197	67,101	62,113
2015-16	59,690	67,216	62,415	56,548	58,647	44,812	35,631	62,897	67,018	53,679	66,159	59,537

5. Diagram 2 shows the annual passenger numbers for the same years with the year-on-year percentage change.

Diagram 2 – Annual Passenger Numbers

Year	Total Passengers	% change
2012-13	761,392
2013-14	799,845	5.1
2014-15	744,692	-6.9
2015-16	694,357	-6.8

6. The average monthly and daily patronage for the year to 30 June for 2012-13, 2013-14, 2014-15 and 2015-16 is shown in Diagram 3.

Diagram 3 – Monthly and Daily Average Passenger Trips for the year to 30 June.

	Monthly	Daily
Year	Average passengers	Average passengers
2012-13	63,449	2,884
2013-14	66,654	3,030
2014-15	62,058	2,821
2015-16	57,863	2,630

7. Analysis of patronage by route for 2015-16 shows that about 52% of passengers are carried on the Route 12 (Napier to Hastings and return). A further 16% is carried on the next most popular service – the Route 20 between Hastings and Flaxmere.

8. Diagram 4 shows the breakdown of patronage by user groups.

Diagram 4 – GoBay bus patronage by user group (2015-16)

User Group	% of Passengers
Adults	17.5
Children	25.1
Community Service Card	16.8
SuperGold	18.5
Tertiary Students	12.2
Other ( DHB travel, promotions etc)	9.9

Bus Service Costs

9. The following diagram shows the annual net cost (after fares and excluding GST) of operating the goBay bus service for the years to 30 June in 2012-13, 2013-14, 2014-15 and 2015-16.

10. The diagram also shows the average cost per passenger and cost per passenger-kilometre. Passenger–kilometres is a measure widely used for reporting public transport results, as it reflects the distance that passengers have travelled, rather than just a head count of boardings.

Diagram 5 – Annual net cost, cost per passenger and cost per passenger-kilometre (excl GST)

Year	Annual net cost	Annual net cost per passenger	Annual net cost per passenger km
2012-13	$ 2,702,740.93	$ 3.55	$ 0.33
2013-14	$ 2,464,876.09	$ 3.08	$ 0.30
2014-15	$ 2,243,606.69	$ 3.01	$ 0.30
2015-16	$ 2,233,500.67	$ 3.22	$ 0.31

(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 5 shows fare recovery in 2012-13, 2013-14, 2014-15 and 2015-16.

Diagram 5 – Fare Recovery – 2012-13, 2013-14, 2014-15 and 2015-16

2012-13	34.26%
2013-14	38.24%
2014-15	38.69%
2015-16	37.77%

Service Changes

12. Significant service changes are planned to commence on Monday 26 September 2016. These are:

Route 10	New commuter express service linking Napier and Hastings via the HB Expressway.	Specifically timed to meet the needs of shift workers at the HB Hospital.
Route 15	An extension of the service from Westshore out as far as Bay View.	The trial extension will run 4 times a day, 6 days a week.
Route 17 Hastings Urban	Minor re-routing at Karamu High School / Windsor Park as well as an increase in frequency from 3 to 7 services per day.	Timed to meet the needs of students at the High school and residents at the retirement village.
Route 20 Flaxmere	An additional early service and Sunday services on the Hastings – Flaxmere run.	Offering increased flexibility for passengers from Flaxmere.
Route 21 Havelock North	Route extension to Arataki Rd; re-routing at Lipscombe Cres, additional early services and a Sunday service to Havelock North.	These services are being developed with groups such as shift workers and residents of the retirement village in mind.
Fares	There are to be no fare increases, but fare reductions apply for adults who make the 2-zone journey (Napier-Hastings) and for a 1-zone fare and concessions on the Route 10 and 11 express services.

Bus Stops

13. Hastings District Council has decided to relocate the main bus stop at Eastbourne St to a position one block further south east, in front of the Library. HBRC staff are working with staff from HDC to ensure that the new stops are suitable for their purpose and location; that services are not affected and that disruption during the transfer is minimised.

14. In order to deliver the service changes described above, new bus stops have been installed at Bay View, Meeanee Rd, Karamu High School, Havelock North and central Hastings. This work is in co-operation with NCC and HDC and follows consultation with affected residents and service users.

SuperGold Card Scheme Update

15. As outlined at earlier meetings, changes to the way SuperGold card scheme funding is to be allocated will have a slight effect on the amount received by Hawke’s Bay Regional Council. A transitional approach is in place for 2016-17, based on SuperGold numbers carried in 2015-16.We have received notification of our target allocation for 2016-17, which is $247,260 (ex GST). This is approximately $2,000 more than was received in 2015-16 but planned service improvements could increase SuperGold patronage and therefore this allocation could be exceeded. NZTA will closely monitor the forecast spend for each region in order to work out how to allocate limited funds into the future.

Total Mobility

16. The following tables compare the number of Total Mobility trips made during 2012-13, 2013-14, 2014-15 and 2015-16 to 30 April, and the corresponding costs (excl GST).

17. The number of TM trips for the year is only slightly higher than in 2014-15; it appears that growth in use is slowing. Overall expenditure was less than in 2014-15. The number of Total Mobility users registered with the Council at 30 June was 3,290, down from 3,460 the previous year.

Diagram 6 – Total Mobility Trips – 2012-13, 2013-14, 2014-15, 2015-16

Year	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	June	Total
2012-13	6,753	6,839	6,471	7,256	6,925	6,447	6,022	6,320	6,614	6,850	7,106	6,382	79,985
2013-14	7,401	6,804	6,611	7,658	7,365	7,185	6,546	7,032	7,605	7,745	7,707	7,188	86,847
2014-15	8,320	7,950	7,677	8,267	7,701	7,948	6,354	6,901	8,245	7,328	7,737	7,852	92,280
2015-16	7,949	7,219	8,186	7,708	7,876	7,974	6,464	7,325	8,064	7,806	8,190	8,044	92,805

Diagram 7 – Total Mobility Cost ($ excl GST) – 2012-13, 2013-14, 2014-15, 2015-16

Year	Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	June	Total
2012-13	44,451	44,877	43,241	46,217	45,383	39,881	37,347	40,682	44,382	43,927	47,612	43,394	521,394
2013-14	49,274	46,153	43,965	50,189	47,744	46,968	39,581	46,567	52,047	50,715	51,078	49,349	573,630
2014-15	55,780	53,489	51,223	54,492	53,591	49,973	38,990	45,943	52,581	46,747	50,971	51,422	605,202
2015-16	50,877	46,255	52,340	48,692	51,546	50,992	40,488	46,215	52,418	50,688	53,458	51,945	595,914

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

Decision Making Process

18. 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 “August 2016 Public Transport Update” report.

Authored by:

Anne Redgrave

Transport Manager

Approved by:

Liz Lambert

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 17 August 2016

Subject: Human Resources 2015-16 Annual Report

Reason for Report

1. This agenda item is to provide Council with an overview of the key human resource metrics recorded for the year 1 July 2015 to 1 July 2016. A copy of the HR Highlights document is appended as Attachment 1.

2. This report also provides the Committee with an update of key health and safety information for the same period.

Key Metrics

Staff Numbers (Previous year in brackets)

3. As at 1 July 2016 187.3 FTE (180.8 FTE).

3.1. Dalton Street (including Waipukurau and Wairoa): 159.3 FTE (152.8)

3.2. Works Group (Taradale and Waipukurau): 28 FTE (28)

4. Turnover for the year ending 30 June 2016 was 5 % (2015 – 6%). 10 staff left during the year. 4 staff members were internally promoted to a new position during the year.

5. The Lawson Williams – HRINZ New Zealand Staff Turnover Survey indicated an average turnover of 18.4 % for contributing organisations in 2015. For contributing local government organisations the average turnover was 13.2 %.

6. Extensive exit interviews are held with all departing staff to get feedback on a range of issues related to their work while with Council and the reasons for leaving. For this past year that feedback has not indicated any issues of concern related to the reason for leaving.

Staff Leave Usage

7. The average number of sick days used was 6.8, marginally up on last year (6 days). There was an increase in the total sick days used, 1035 days compared to 931 in 2015. The number of staff taking more than the annual allocation (10 days) increased to 22% from 15% last year. This is only possible where they have accumulated sick leave to use.

8. While there has been an increase in staff numbers that accounts for some of the increased average use of sick leave, it is interesting to note that the average has increased from around 4 days in 2000-2005 period, increasing to 4.5 days in the 2005-2008 period, increasing to an average of 6 days in the last few years.

9. Annual leave usage remained constant at an average of 19.3 days per staff.

Average Age/Tenure/Workforce Composition

10. The average age of Dalton street staff was 46 and the average tenure 9 years.

11. For Works Group staff the average age was 50 with an average tenure of 11.5 years.

12. This year the report also proves details of the gender and Maori composition of the workforce. While the overall gender numbers are comparable the number of female staff in manager/team leader roles is significantly below their male counterparts.

13. While there has been an increase in the number of Maori staff very few are in senior or supervisory roles.

Health and Safety

14. Council retained tertiary level in ACC’s Workplace Safety Management Practices programme. This is effective for two years to June 2018.

15. While this achievement does mean we receive a significant saving on Council’s ACC levies, more importantly it provides a ‘level of confidence’ that our policies and procedures are appropriate for promoting a safe workplace with safe work practices.

16. It is understandable that workplaces focus strongly on safety but it is also important to also consider the health aspects of the workplace. Council has a number of initiatives in this area, e.g. assistance with regular medical and melanoma checks, flu injections, provision of information on healthy eating and exercise, regular workplace support and a variety of health promotions and activities to promote a balanced and healthy lifestyle.

17. There were no ‘serious harm’ (‘notifiable event’ in the new Health and Safety at Work Act) during the year that required notification to WorkSafe.

18. Dalton Street staff had 25 work related ‘incidents’ reported through the year. 10 were ‘near miss’ incidents (no injury), the rest were slips, falls, cuts, strains resulting in 51 days off work. However, two work related accidents accounted for 41 days of that total, the rest were either no time off or only a day or two off.

19. Works Group achieved another excellent year in terms of their safety record. There were 8 reported work related accidents with only one requiring any time off (4 days- strained ankle).

20. Use of the workplace support service has provided council with an independent insight into the ‘general mood’ of the workplace over the past year. The overall feedback is that of a positive workplace but staff have found the continued negative press coverage, particularly around the RWSS, a distraction which has overshadowed a lot of the good work carried out by Council.

Staff Training and Qualifications

21. The training budget was 2.4% of the salary budget which is an increase on last year’s 2%.

22. The main focus for training has remained on leadership development and we have continued to identify appropriate staff to undertake the training programme developed for this purpose. Those that attend have indicated that the content and relevance has had a significant positive impact on their work activities.

23. With the change in health and safety legislation a concerted effort has been made to provide relevant information about the changes to relevant staff to ensure the implications are well understood.

24. The overall staff qualifications can be seen in the attached HR Highlights. Over 100 staff have a degree or above qualification, including 8 with PhDs.

25. This also reinforces the need to source and retain skilled and qualified staff who are appropriate to undertake the complex requirements of the Council’s work.

Industrial

26. All supervising staff are employed under individual employment agreements.

27. There are two current collective employment agreements, both are three year agreements and expire in 2017. The Dalton Street Collective Agreement covers about half the staff whose work is covered by this agreement; the other half have chosen individual agreements.

Decision Making Process

28. 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 “Human Resources 2015-16 Annual Report.

Authored by:

Viv Moule

Human Resources Manager

Approved by:

Liz Lambert

Chief Executive

Attachment/s

2015-16 Human Resources Report

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Regional Economic Development Strategy and Action Plan	7(2)(c)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide and would be likely otherwise to damage the public interest.	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.