Minutes of Regional Council Meeting

1. Welcome/ Apologies/ Notices

The Chairman welcomed everyone to the meeting, and Councillor Bailey offered a karakia.

Resolution

RC1/17 That the apology for absence from Mr Mike Mohi and from Cr Kirton for lateness be accepted.

Barker/Wilson

CARRIED

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

Councillors were reminded to update their Register of Interests when changes occur.

3. Confirmation of Minutes of the Regional Council Meetings Held on 14 and 21 December January 2016

RC2/17

Minutes of the Regional Council meeting held on Wednesday 14 December 2016, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Hewitt/Beaven

CARRIED

RC3/17

Minutes of the Regional Council meeting held on Wednesday 21 December 2016, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Bailey/Graham

CARRIED

Follow-up Items from Previous Regional Council Meetings

In relation to the suggestion at the Environment and Services Committee, that all Committee meetings be recorded, it was confirmed that staff will bring funding provision required through the 2017-18 annual plan process for Council’s consideration.

An additional update was provided by Mr Newman and Cr Belford on the Ombudsman’s complaint investigation process underway regarding the request for Cr Belford’s correspondence, advising the Ombudsman had responded Council’s letter advising the resolutions of 14 December, and that Cr Belford had supplied the relevant emails to the Ombudsman.

Further updates were provided in relation to RMA matters around GMO free and Oil and Gas Exploration, the media coverage of the scale of water bottling water takes compared with orchard irrigation, Strategic Plan schedule of workshops, process for further appointments of HBRIC Ltd directors to be considered at 15 February Corporate and Strategic Committee meeting, a remuneration review for tangata whenua representatives under way, and coordination of a Heretaunga water symposium.

It was confirmed that there has been no response to Council’s correspondence with KiwiRail in relation to their request for Expressions of Interest to run tourist operations on the Wairoa to Gisborne section of the rail corridor.

RC4/17

Resolution

That Council receives the report “Follow-up Items from Previous Regional Council meetings”.

Barker/Belford

CARRIED

Call for Items of Business Not on the Agenda

Recommendations

That Council accepts the following “Minor items of Business Not on the Agenda” for discussion only as Item 15:

Topic	Councillor / Staff
Council retreat	Cr Barker
Whakaki Lagoon	Cr Wilson
CHB prosecution	Cr Belford

Affixing of Common Seal

1. The Common Seal of the Council has been affixed to the following documents and signed by the Chairman or Deputy Chairman and Chief Executive or a Group Manager.

		Seal No.	Date
1.1	Leasehold Land Sales 1.1.1 Lot 231 DP 10728 CT C1/300 - Transfer 1.1.2 Lot 1 DP 14227 CT G1/23 - Agreement for Sale and Purchase 1.1.3 Lot 181 DP 12611 CT D4/1105 - Agreement for Sale and Purchase 1.1.4 Lot 13 DP 13899 CT F4/432 - Agreement for Sale and Purchase 1.1.5 Lot 467 DP 9059 CT 752725 - Agreement for Sale and Purchase 1.1.6 Lot 233 DP 10728 CT C1/302 - Agreement for Sale and Purchase 1.1.7 Lot 1 DP 14227 CT G1/23 - Transfer 1.1.8 Lot 27 DP 10632 CT B3/797 - Agreement for Sale and Purchase - Transfer	4081 4082 4083 4084 4085 4091 4092 4093 4094	13 December 2016 13 December 2016 13 December 2016 19 December 2016 19 December 2016 21 December 2016 21 December 2016 21 December 2016 21 December 2016
1.2	Staff Warrants 1.2.1 E. Lennan B. Ronke J. Gardiner L. McPhail T. Diack (Delegations under Resource Management Act 1991; Civil Defence Act 1983 (s.60-64); Civil Defence Emergency Management Act 2002 (s.86-91) and Local Government Act 2002 (s.174)	4086 4087 4088 4089 4090	19 December 2016 19 December 2016 19 December 2016 19 December 2016 19 December 2016
1.3	Napier Port Limited Subvention Agreement	4095	17 January 2017

RC5/17

Resolutions

That Council:

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. Confirms the action to affix the Common Seal.

Barker/Bailey

CARRIED

Upgrade to Council Chambers

Councillor Kirton arrived at 1.25pm

Mr Newman outlined the proposed upgrades requested by the Chairman. Mr Drury explained the three areas of redevelopment for consideration, as detailed in the report. Budget provision for furniture and fittings for the Dalton Street building was $70,000 for 2016-17, of which $40,000 has been spent on upgrading the audio-visual and aircon/heating in the Council Chamber. Should Council decide to go ahead with all of the redevelopments proposed in the current financial year, this will require an additional $37,000 (in excess of the $70k already budgeted) – excluding carvings and paintings.

Queries and discussion traversed:

· Renewal of furniture, paint and carpets is on a Maintenance Schedule and budgeted for accordingly – proposals outlined are in addition to that, in response to the Chairman’s requests. Planned upgrades of the Council Chamber commenced in 2016 with the audio-visual upgrade prioritised.

· In response to a query, the Chairman advised that he has chosen not to use the Chairman’s Office provided on the first floor, because he prefers to be in a public space, he doesn’t intend to spend office time at the Dalton Street building, and wants to see clear separation of Governance from Management.

· Concerns were expressed, that councillors will not have access to a space to work from when they require it, or as a breakout room for Resource Consent Hearings, if the Councillors Lounge is converted to a Chairman’s Room.

· The Chairman expressed his desire for the Council spaces to project the mana of the role of Chairman, the mana of the organisation and to reflect a post amalgamation view of the world.

· Query as to why the proposal for Tipuna paintings has come from the Chairman and not from Tangata Whenua, plus why these particular proposals are being brought straight to Council rather than through the proper process allowing for double debate and consultation with other users of the spaces.

· Staff have provided costings for the proposed improvements, but have not considered alternative accommodation to replace the Councillors Lounge.

· Ms Stacey Rakiraki, Facilities and Fleet Manager, explained the audio-visual upgrade of the Council Chamber facilities to date as prioritised (new screen, projector, lapel microphones, room control and additional screen for public gallery), and that replacement of carpets, re-painting, lighting and furniture upgrades are still to be carried out.

· Suggestion that in addition to iwi cultural influences, other iconic influences such as rivers, the Bay or orcharding should be included.

· Issues councillors have are with the physical working environment for councillors attending meetings.

· Councillors expressed the need for greater clarity around financials associated with the changes proposed, and for further discussion of alternative or additional ideas in relation to how Dalton Street public areas could be enhanced.

RC6/17

Resolution

That Council leaves the matter to lie on the table.

Belford/Wilson

CARRIED

2016-19 Triennial Agreement – Process and Adoption

Mr Newman explained the purpose of the triennial agreement, and the proposed process for development and then adoption of the agreement for the 2016-19 triennium.

Queries and discussions traversed:

· The role of the Regional Planning Committee in relation to review and/or changes to the Regional Policy Statement and Regional Resource Management Plan does not impact on the Triennial Agreement

· Suggestion that provisions in relation to activities of the Joint Committee charged with development of the Coastal Hazards Strategy should be included in this

· Convey suggestions for any material additional inclusions to the CE and/or Group Manager External Relations ahead of the meeting in February where the Mayors and Chairman will consider the agreement

· Suggestions for more collaboration in relation to resource consents perhaps through a working group and that an additional principle be added to the agreement around TLA meeting resource consent condition obligations.

RC7/17

Resolutions

That Council:

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. Instructs the Chairman, or his representative, to invite the Mayors of Wairoa, Hastings and Central Hawke’s Bay districts and Napier City, or their representatives, to attend a meeting in early February; the purpose of the meeting being to review and agree proposed changes to the 2016-19 Triennial Agreement.

3. Requests that the Chairman, or his representative, brings back for approval the agreed version of the Triennial Agreement to the 22 February meeting of Council.

Wilson/Kirton

CARRIED

2017 Local Governance Statement

The paper was taken as read.

RC8/17

Resolutions

That Council:

2. Provides agreed amendments for incorporation into a final version of the 2017 Local Governance Statement for adoption by Council by 26 April 2017.

Dick/Beaven

CARRIED

10.

RWSS Moratorium

Mr Palmer explained that the purpose for requesting this decision from Council to specify the timeframe for the RWSS moratorium is to allow HBRIC Ltd directors to meet their fiduciary responsibilities to the company as directors, with the 31 May date being the date of the Regional Council meeting following receipt of the RWSS Review Findings.

RC9/17

Resolutions

That Council:

2. Requests that HBRIC Ltd maintain the moratorium on the Ruataniwha Water Storage Scheme project agreed by Council on 14 December 2016 from that date until 31 May 2017.

Barker/Belford

For: Dick, Belford, Bailey, Beaven, Barker, Kirton, Graham

Against: Hewitt, Wilson

CARRIED

11.

HBRIC Ltd Councillor Remuneration

Councillors Hewitt and Beaven declared an interest in the item and left the room at 2.20pm

The paper was taken as read, with discussion traversing:

· Increment of $10,000 per year is the same as the extra responsibility increment paid to the Chair of a Committee set by the Remuneration Authority

· Constitution is legally binding

· Remuneration of councillor directors is at Council’s discretion but must be stated in the HBRIC Ltd Constitution - hence requires amendment because it currently states that Councillor Directors will not be remunerated

RC10/17

Resolutions

That Council:

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. That the HBRIC Ltd Constitution be amended to enable payment of an annual honorarium of $10,000 per annum to Councillor appointed directors as follows:

2.1. “12.1 Authorisation of payment or other benefit: The remuneration of Independent Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve) on the recommendation of the Board based on market rates. The remuneration of Councillor Directors will be set by the Council triennially (or such other times as the Council may, in its absolute discretion, resolve).”

Dick/Barker

CARRIED

Councillors Hewitt and Beaven re-joined the meeting at 2.30pm

12.

Update on Havelock North Water Contamination Inquiry Expenditure

Mr Maxwell provided an outline and update on the HBRC investigations, advising that the HBRC investigation was initially launched 15 August following discussions with HDC staff where the view was put forward that contamination of the aquifer was the cause of the widespread campylobacter outbreak. Results have determined that there is no widespread contamination of the aquifer. Further:

· Costs are higher than first estimated, but not without justification due to the significant science work required and within ‘expectations’

· The work has been expensive, but no-one else has the capacity, capability and expertise to carry out the work required; and the information gathered by the investigation will be critical to the Inquiry deliberations to determine the cause of the outbreak and recommend measures to insure against it happening again

· Cumulative costs to date – for the HBRC investigation and Government Inquiry – are already just over $1 million

· The HBRC investigation was embarked upon to determine the source of the contamination, including work to determine whether the aquifer itself was contaminated and the flow of contaminants through the surface and groundwater.

· Valuable scientific information will be worthwhile for providing input to the TANK process as well

· Staff are awaiting Inquiry direction of what the scope and terms of reference for stage 2 requires and Mr Newman advised that until there is clarity about the Inquiry’s requirements staff resource is not available to act on the Council resolutions of 9 November requesting answers to the specific questions arising from RRMP Chapter 4.3 around processes, documentation, systems and protocols to ensure HBRC is meeting its statutory responsibilities.

Mr Palmer provided an update on the costs, nature and form of the Inquiry, advising that he anticipates that stage 2 will be simpler given the extensive information requirements through stage 1 and that the Inquiry Panel communicates how, when and from whom they are provided with information. The appropriate time for staff to start drafting a Stage 2 submission will be once the Panel has issued its minute from Stage 1 advising what is required.

RC11/17

Resolution

That Council receives and notes the “Update on Havelock North Water Contamination Inquiry Expenditure” report.

Kirton/Wilson

CARRIED

The meeting adjourned at 3.00pm and reconvened at 3.20pm, with Cr Alan Dick having been excused

13.

Annual Plan Progress Report for Six Months to 31 December 2016

Manton Collings introduced the item, addressing the variances from budgets in Science projects, largely internal staff time based, relating to the investigation and inquiry of the Havelock North water contamination event.

There was discussion around the leasehold land cashflows arrangement and how it works, and the Chief Executive advised a paper on the subject will be provided to the Corporate & Strategic Committee meeting on 15 February to enable councillors to examine the figures and fully understand how the transactions are processed.

Further discussion traversed the non-financial narratives provided, updating the status of progress on various projects to achieve LTP and Annual Plan targets as well as suggestions around a thorough strategic review of council’s activities, balance sheet and funding policies being undertaken alongside the Strategic Plan Refresh process under way.

RC12/17

Resolution

That Council receives and notes of the “Annual Plan Progress Report for the first six months of the 2016-17 financial year, to 31 December 2016“.

Barker/Bailey

CARRIED

14.

HBRC Staff Work Programme over February 2017

Queries and discussions traversed representation on the Rocket Launch Steering Committee, decisions on environment court appeals for Pan Pac and CPM Asphalt in HBRC’s favour, Plantation Forestry NES, Te Mata Mushrooms resource consent application, new Whakaki trustees to meet with Council reps 11 March, and the appointment of the Matariki Project Manager, Dr Alister King.

RC13/17

Resolution

That Council receives the HBRC Staff Work Programme over February 2017 report.

Barker/Bailey

CARRIED

17.

Chairman's Report for 12 December 2016 to 24 January 2017

The report was taken as read, with additional commentary on a recent visit to Wairoa with Henare O’Keefe and Cr Bailey added by the Chairman.

RC14/17

Resolution

That Council receives the Chairman’s report for 12 December 2016 to 24 January 2017.

Beaven/Hewitt

CARRIED

15.

Items of Business Not on the Agenda

Topic	Councillor / Staff
Council retreat Suggests Councillors have a retreat to meet away from the Council table to work out how to move forward to achieve its strategic vision over the coming years; and requests that the Chairman organises for this to occur	Cr Barker
Whakaki lagoon and lake HBRC staff and councillors met with Whenua Rahui and new trustees in relation to the flooding of farmland and working together to resolve issues.	Cr Wilson
CHB prosecution First call (defendant enters plea) was scheduled 16 January, now deferred to 13 February and venue likely to be in Central Hawke’s Bay.	Cr Belford

16.

Confirmation of Public Excluded Minutes of the Regional Council Meeting Held on 14 December 2016

RC15/17

Resolution

That the Council excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 17 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:

GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED	REASON FOR PASSING THIS RESOLUTION	GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION
Confirmation of Public Excluded Meeting held on 30 November 2016	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
HBRIC Ltd Director Appointments	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.
Discussion on Chairman’s Letters to the Chief Executive dated 7 and 23 November 2016	7(2)(a) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of the information is necessary to protect the privacy of natural persons	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Beaven/Wilson

CARRIED

16. Confirmation of Public Excluded Minutes of the Regional Council Meeting Held on 14 December 2016

Resolution

RC16/17 Public Excluded Minutes of the Regional Council Meeting held on Wednesday, 14 December 2016, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Barker/Beaven

CARRIED

Resolution

RC17/17 That the meeting moves out of Public Excluded session.

Barker/Wilson

CARRIED

The meeting went into public excluded session at 4.10pm and out of public excluded session at 4.15pm

Closure:

There being no further business the Chairman declared the meeting closed at 4.16pm on Wednesday 25 January 2017.

Signed as a true and correct record.

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