MINUTES OF A meeting of the Corporate and Strategic Committee
Date: Wednesday 15 February 2017
Time: 9.00am
Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
PB Bailey
R Barker
P Beaven
T Belford
A J Dick
R Graham
DH Hewitt
RM Maaka
M Paku
FW Wilson
In Attendance: A Newman – Chief Executive
L Lambert – Group Manager External Relations
P Drury – Group Manager Corporate Services
L Hooper – Governance & Corporate Administration Manager
T Kilkolly – Financial Accountant
The Chairman welcomed everyone to the meeting. There were no apologies, nor notices.
2. Conflict of Interest Declarations
There were no conflict of interest declarations.
3. Confirmation of Minutes of the Corporate and Strategic Committee Meeting held on 13 December 2016
Minutes of the Corporate and Strategic Committee held on Tuesday, 13 December 2016, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record. CARRIED |
Secretarial note: As there are no provisions under Council’s Standing Orders for discussion of the minutes other than confirmation of their correctness, “matters arising” discussions are recorded as part of item 5 Follow-ups from Previous Strategic Committee meetings.
Call for Items of Business Not on the Agenda |
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That the Corporate and Strategic Committee accepts the following “Items of Business Not on the Agenda” for discussion as Item 11: Minor items for discussion
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Follow-ups from Previous Corporate and Strategic Committee Meetings |
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It was resolved to hold workshops for development of Council’s Strategic Direction, however clarity was sought around how the items for fast tracking agreed at the ‘councillor only’ workshop on 1 February will be communicated to staff for incorporation into the annual plan process. The CE advised that staff hope to bring a process for incorporation of those councillor initiatives into the Annual Plan work programme to the 23 February workshop. It was agreed that the initiatives agreed for prioritising at the 1 February workshop will be provided to councillors and staff via email by Monday. The item was taken as read, with discussion focussing on the process of workshops for development of the Annual Plan, including input from Councillors on priorities to be brought forward to 2017-18 – ahead of the LTP process – and the Strategic Plan Refresh leading into the 2018-28 Long Term Plan. The ‘agenda’ and associated information for the 23 February workshop will be distributed to councillors on Friday 17 February, and will provide for a front end presentation by councillors of the articulation of their vision. After discussion it was agreed that, due to a conflicting commitment for some, a preliminary session covering councillors priority initiatives for inclusion in the 2017-18 annual plan process be scheduled following the Council meeting on 22 February, followed by the workshop on 23 February as scheduled. |
That the Corporate and Strategic Committee notes there are no “Follow-ups from Previous Corporate and Strategic Committee Meetings” to address at this meeting. CARRIED |
HBRIC Ltd Independent Director Recruitments and Appointments |
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The Chief Executive advised that the important point of this item is to implement the process to engage an independent HBRIC Ltd Chairman with time for an appointment to be made prior to Sam Robinson’s departure on 30 June 2017 and outlined the proposed process. Discussion and queries covered: · Currently five directors, while constitution allows for seven and process will allow for appointments in addition to a Chairman · Integration of a new Chairman into the Board of Directors during the overlapping time between the appointment and Sam Robinson’s departure. · Respresentation on and composition of the Appointments Committee suggested in the Policy on Appointment and Remuneration of Directors · Suggestion that 3 councillors, including Chairman, be on the Appointments Committee to ensure adequate representation of Council as shareholder. |
2.3 Confirms the composition of the Appointments Panel confirmed as being two elected councillors, the current Chairman of HBRIC Ltd and one independent experienced director. Bailey/Barker CARRIED
The additional resolution was carried and so became part of the substantive motion
1. That the Corporate and Strategic Committee receives and notes the “HBRIC Ltd Independent Director Recruitments and Appointments” staff 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. Commences the process for recruiting a Chairman of HBRIC Ltd with urgency using the process outlined in this paper. 2.3 Confirms the composition of the Appointments Panel confirmed as being two elected councillors, the current Chairman of HBRIC Ltd and one independent experienced director. CARRIED |
Recommendations from the Finance Audit & Risk Sub-committee |
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Councillor Kirton provided additional context from the discussions of the meeting, as Chairman of the FA&R Sub-committee, including the extent of discussions captured in the meeting minutes and confirmation that the process of release of the unconfirmed minutes will include the review by the Chair of the committee prior to release. Further discussion and queries traversed: · After extensive discussions, the sub-committee requested several amendments to the Risk Register, and also a recommendation that the Risk Assessment and Management process undergo a review · Audit NZ management report again raised the desire for Napier Port’s financial year to be aligned with HBRIC and Council’s to end 30 June. · The sub-committee’s work programme is extensive, and now includes two vital bits of work, being a review of Council’s capital structure and an efficiency review of functions being delivered. This will be reflected in the paper putting forward today’s recommendations to Council. · Material decisions and/or positions reached by the sub-committee on items within their delegations will, in future, be included in the recommendations paper to the Corporate and Strategic Committee in order to ensure that all councillors are fully aware of the work and considerations of the sub-committee. |
That the Corporate and Strategic Committee: 1. Agrees that the decisions to be made are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy. Six Monthly Report on Risk Assessment and Management 2. Recommends to Council that the HBRC Risk Assessment and Management process undergoes a comprehensive review to ensure major strategic risks to the public and environment are appropriately managed. Reports Received 3. Notes that the following reports were provided to the Finance Audit and Risk Sub-committee: 3.1. Health and Safety Update Report for the Period 1 June – 31 December 2016 3.2. Audit NZ Management Report for HBRC Annual Report for Year Ending 30 June 2016, including a recommendation that the financial and balance dates of Napier Port should be aligned with Council’s 3.3. 2017 Sub-committee Work Programme, including the addition of a comprehensive review of Council’s capital structure and efficiency and effectiveness reviews of Council’s activities 3.4. Internal Audit Report – Fraud Policy. CARRIED |
Wairoa-Gisborne Rail Corridor |
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Councillor Dick introduced Nikki Searancke (Chair, Gisborne Rail Collective), Steve Weatherell (Weatherell Transport Ltd & member of GRC) and Graham Carroll (Consultant). Ms Searancke provided an overview of the background to the GRC proposal and request, including iwi and hapu support and membership of the GRC. Discussions and queries traversed: · Shared interests in the Gisborne area need to come together · Key to have Gisborne District Council on side · Opportunity for Gisborne interests to take back control of the line between Wairoa/Nuhaka and Gisborne · Business case, and financial modelling required to prove whether the proposal is viable · Nick Cornwall advised that through the work he has done, he believes the biggest barrier to starting in Gisborne is the up-front costs of reinstating the line between Wairoa and Gisborne (approximately $5 million) which theoretically be underwritten by cargo · According to the Gisborne Herald, the Eastland Community Trust has invested $12M to purchase and reactivate a sawmill site and they are now seeking an operator for the site · Freight transport improvements are key to the economic development of the Region and there are initiatives in Matariki intended to support those are key to the economic development of the Region and there are initiatives in Matariki intended to support those |
1. That the Corporate and Strategic Committee receives and notes the “Wairoa – Gisborne Rail Corridor” report and the presentation from representatives of the Gisborne Rail Cooperative. 2. The Corporate and Strategic Committee recommends that Council: 2.1. Agrees that the decision to be made is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy, and that Council can exercise its discretion and make a decision without conferring directly with the community and persons likely to be affected by or to have an interest in the decision. 2.2. Continues to offer its support for the preservation and preferably restoration of rail freight options for the Wairoa to Gisborne section of the Napier-Gisborne rail line. CARRIED |
The meeting adjourned at 10.40am and reconvened at 10.58am
Council Chambers Upgrades |
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Mrs Liz Lambert clarified that the budget of $70,000 provided for improvements to Council offices and facilities for 2016-17 covered all of the council’s offices, not only the Council Chamber. Discussions and queries traversed: · Overall budgets for facilities provided through the annual plan each year in line with depreciation and maintenance schedules · Cost breakdowns for the further improvements will be provided as part of the paper of recommendations from this committee to Council · Suggestion that the cultural enhancements be discussed with Maori Committee and tangata whenua representatives to seek their views and ideas · Air conditioning still not working properly in the Council Chamber in the view of some |
1. That the Corporate and Strategic Committee receives and notes the “Council Chamber Upgrades” staff 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. 2.2. Approves the upgrades of the Ahuriri Room and Council Chamber including replacement of the chairs and tables and repainting of the Council Chamber to be carried out over the remainder of the current financial year and ensuing years as budgets allow. 2.3 Initiates discussions with tangata whenua representatives on the Maori Committee and co-Chair of the Regional Planning Committee in relation to upgrading the foyer and Council Chamber to better represent the region and its culture. CARRIED |
Item - 10. Wairoa-Gisborne Rail Corridor – was considered immediately following item 7.
HBRC – ACC: Sale of Leasehold Land Cashflows |
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Mr Paul Drury advised that this paper is intended to provide councillors with explanations about the agreement and how it works, introducing Ms Trudy Kilkolly to provide any additional explanations councillors request. Discussions and queries traversed: · Some struggling to reconcile the benefit to Council in accordance with the initial payment off-set by the net payments made to ACC and the net value of Council’s asset · Request for a comparison of what the net present value of the Council’s asset would be if the cashflows had not been sold to ACC – and that position compared to the present figures · Part of Council’s consideration when making the decision on the sale of leasehold cashflows was the low return leasehold rents provide to Council · Profits and investment interest are put into the operational budgets for HBRC’s activities · Strategic question is “where is capital best deployed to make the most of the investment?” which will be traversed through the 2017-18 Annual Plan and 2018-28 Long Term Plan development · Request for income and benefits to Council over the 50 years to be compared against inputs/outputs to ACC to enable councillors to decide for themselves whether the Agreement has been a ‘good deal’ or otherwise |
That the Corporate and Strategic Committee receives and notes the “HBRC – ACC: Sale of Leasehold Land Cashflows” report, with further discussions to be scheduled between interested councillors and the Group Manager Corporate Services. CARRIED |
Recommendations from the Finance Audit & Risk Sub-Committee |
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That the Corporate and Strategic Committee excludes the public from this section of the meeting, being Agenda Item 12 Recommendations from the Finance Audit & Risk Sub-committee, with the general subject of the item to be considered while the public is excluded; the reasons for passing the resolution and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for passing of this resolution being:
CARRIED |
The meeting went into public excluded session at 12.07 and out of public excluded session at 12.25pm
Closure:
There being no further business the Chairman declared the meeting closed at 12.25pm on 15 February 2017.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................