MINUTES OF A meeting of the Regional Council
Date: Wednesday 26 April 2017
Time: 9.00am
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
P Bailey
R Barker
P Beaven
T Belford
A J Dick
D Hewitt
N Kirton
F Wilson
In Attendance: M Mohi – Chairman – Maori Committee
G Woodham – Interim Chief Executive
J Palmer – Group Manager Strategic Planning
E Lambert – Group Manager External Relations
L Hooper – Governance Manager
M Collings – Corporate Accountant
The Chairman welcomed everyone to the meeting and Mr Mohi offered a karakia.
There were no apologies, nor notices.
The Chairman advised that a Central Hawke’s Bay water storage action group has requested a meeting with councillors at 330pm tomorrow, 27 April, and invited any councillors interested in attending to do so and he will advise where the meeting is to take place once it has been confirmed.
2. Conflict of Interest Declarations
There were no conflict of interest declarations.
3. Confirmation of Minutes of the Regional Council Meeting Held on 29 March 2017
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Minutes of the Regional Council Meeting held on Wednesday, 29 March 2017, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record. CARRIED |
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Follow-ups from Previous Regional Council Meetings |
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CHB field trip is being progressed through Iain Maxwell. A request was made to include 1. Develop a policy for Council to use only contractors that pay the ‘living wage’ and 2. Develop an Ethical Investment policy - processes on the follow-ups list. Discussion around HPUDS review and progressing adoption of HPUDS 2016 given HDC’s response that they prefer to have their own workshop without HBRC or NCC elected representatives in attendance, the 2016 Strategy is the result of a very thorough public consultation process, and that Napier City Council has adopted the 2016 Strategy already. Some councillors are still keen to have a workshop with the HDC councillors to try and reach a consensus view. |
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That the Council receives the report “Follow-up Items from Previous Meetings”. CARRIED |
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Feedback on the HBRIC Ltd 2017-18 Statement of Intent |
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Mr Greg Woodham highlighted the change from the previous item Council considered, being a request for the inclusion of a note in the SoI about the Capital Structure Review including examination of Napier Port’s ownership and reporting lines. The discussion traversed the purpose of the Statement of Intent, the scope of the capital structure review, and reporting lines and accountability for Napier Port plus HBRIC’s portfolio if RWSS does not proceed and HBRIC’s borrowing facility. |
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That Council: 1. Requires HBRIC Ltd, under the authority provided by the Local Government Act, schedule 8, section 5, to modify the 2017-18 Statement of Intent to include: 1.1 A dividend level for 2017-18 of $10.5M (if the RWSS proceeds with financial close estimated at January 2018), and $9.98M (if the RWSS does not proceed or financial close is delayed until 2018-19). 1.2 The dividend levels included in the SoI for years 2018-19 and 2019-20 are to be left as “to be advised” (TBA). 1.3 That the ability for HBRIC Ltd to borrow for investment/working capital purposes at any sum greater than 5% of the value of HBRIC Ltd be subject to Council approval. Kirton/Barker Abstained: Hewitt, Beaven CARRIED 2. Requests that HBRIC Ltd notes in the 2017-18 Statement of Intent, that the HBRC Capital Structure Review will examine ownership of Napier Port and that one outcome of that review might be direct ownership of Napier Port by HBRC. Cr Belford moved an amendment, seconded by Cr Dick being: 2. Requests that HBRIC Ltd notes in the 2017-18 Statement of Intent, that the HBRC Capital Structure Review will examine ownership of Napier Port. Belford/Dick For: Dick, Barker, Wilson, Belford, Kirton, Graham Against: Bailey Abstained: Hewitt, Beaven CARRIED The amendment was CARRIED and therefor the substantive motion PUT 2. Requests that HBRIC Ltd notes in the 2017-18 Statement of Intent, that the HBRC Capital Structure Review will examine ownership of Napier Port. For: Dick, Barker, Wilson, Belford, Kirton, Graham Against: Bailey Abstained: Hewitt, Beaven CARRIED |
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HBLASS Draft Statement of Intent 2017-18 |
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Mrs Lambert introduced the item, highlighting the changes from the previous Statement of Intent and advised that HB LASS has retained the services of an independent facilitator to drive implementation of initiatives. To date, achievements have been savings achieved through joint procurement. Discussion traversed knowledge sharing, opportunities for specialist legal services, independent Chairman of HB LASS Board of Directors, collaboration between councils outside of ‘cost savings’ and HBRC representation on the Board being the Chief Executive. |
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That the Hawke’s Bay Regional Council: 1. Receives and notes the draft Statement of Intent of HB LASS for 2017-18 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 2017. CARRIED |
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Recommendations from the Regional Planning Committee |
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Cr Rex Graham introduced the item as Co-Chair of the RPC. Mr Palmer advised that a meeting with the tangata whenua representatives’ advisors was held last week in an effort to obtain feedback, however there has been no additional feedback forthcoming. The deadline for submission was extended by one week, on application to the Ministry for the Environment. |
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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. Government's "Clean Water" Reform Proposals and Draft Submission 2. Contacts the Ministry for the Environment to request an extension of time for the submission, from 28 April to a date following the RPC meeting on 3 May 2017, so that the RPC can meet again to discuss and finalise the submission. 3. Requests that staff work with the Tangata Whenua representatives to incorporate their comments into the draft submission for approval by the RPC on 3 May 2017. 4. Delegates the final decision on the “Clean Water” submission, and the lodging of that submission to the Ministry for the Environment, to the RPC on 3 May 2017. Reports Received 5. Notes that the following reports were provided to the Regional Planning Committee: 5.1 April 2017 Resource Management Planning Projects Update 5.2 April 2017 Statutory Advocacy Update report. CARRIED |
The meeting adjourned at 10.35am and reconvened at 10.48am
The Chairman thanked Cr Barker for speaking on Council’s behalf at the Anzac Day ceremony in Hastings yesterday.
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Capital Structure Review Advisory Committee Appointments |
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The Chairman introduced the item, advising that recommendations for independent members of the Advisory Committee are not available for today’s meeting and suggested that the item be tabled. There was discussion traversing the process for determining the independent appointments, a formal avenue or process for councillors to put forward names to be considered for appointment as one of the two independent members of the Committee, and concerns that specifics to enable any decision have not been provided. Councillors request a formal, documented process for nominations for independent members of the Capital Structure Review Advisory Committee so that there are opportunities for nominations to be made and the integrity of the process is transparent. |
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There was a motion to leave the matter on the table pending receipt of fulsome information, and it was noted that this motion takes precedence over a motion however councillors agreed to allow the motion to make an additional Councillor appointment to the Advisory Committee to be put prior to the procedural motion. That Council: 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 this decision without conferring directly with the community and persons likely to be affected by or to have an interest in the decision. 2. Appoints Councillor Fenton Wilson as an additional member to the Capital Structure Review Advisory Committee Dick/Hewitt For: Dick, Hewitt, Barker, Wilson Against: Bailey, Beaven, Belford, Kirton, Graham LOST The motion was LOST and therefore the substantive motion put: 1. That Council leaves the matter lie on the table until sufficient supporting information is provided to enable a decision to be made. CARRIED |
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Affixing of the Common Seal 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.
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That Council: 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 this decision 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. CARRIED |
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Appointment of Independent Directors to the HBRIC Ltd Board of Directors |
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The Chairman introduced the item, advising that the Appointments Committee is recommending that the HBRIC constitution be amended to allow the appointment of 3 independent directors to bring the total number of directors to 8. Discussion traversed the current level of remuneration of directors due to workload associated with RWSS, term of appointments and retirements occurring 30 June 2018, concerns that appointing 3 directors now pre-empts issues to be resolved through the Capital Structure Review and decision on whether RWSS proceeds, plus giving HBRIC Ltd a fresh start with new directors with new ideas and fresh views. The specific appointments will be considered in Public Excluded session once the remaining items on the Agenda for today’s meeting have been concluded. |
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RC53/17 |
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 these decisions without conferring directly with the community and persons likely to be affected by or to have an interest in the decisions. 2. Amends the HBRIC Ltd Constitution to enable the appointment of three additional Independent Directors as follows: 2.1. “8.1 Minimum and maximum numbers: The minimum number of Directors shall be three (3), and the maximum number of Directors shall be eight (8) 2.2. 8.3a HBRC shall appoint at least three (3) and up to eight (8) Directors to the Board of the Company (including the right to appoint and remove and nominate alternates) in accordance with HBRC’s Policy concerning Director appointments of existing Council Members (“Councillor Directors”), and Directors who are independent of the Council (“Independent Directors”). HBRC shall appoint a Chairperson from amongst the Directors so appointed. Graham/Bailey For: Barker, Bailey, Beaven, Belford, Kirton, Graham Against Dick, Hewitt, Wilson CARRIED |
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Maori Committee Chairman's Report on the Meeting Held 11 April 2017 |
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Mr Mike Mohi introduced the item, highlighting discussions relating to the committee’s Charter and workshops seeking taiwhenua input and contributions from marae and hapu, and Council’s consideration and relevance of iwi/hapu management plans. Mr Mohi sought formal advice on whether it is acceptable for a tangata whenua representative to serve on the Maori Committee as an employee of the Wairoa District Council in the role of Maori Liaison Officer. Further discussions also covered a Waihapua community day held recently, and advising the next Maori Committee meeting on Tuesday 20 June will be held in Mahia. A request was made, for a written report from each Maori Committee meeting to Council even in the absence of any recommendations to Council. |
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That Council receives and notes the Māori Committee Chairman’s Report on the Meeting held 11 April 2017. CARRIED |
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Annual Plan Progress Report for Nine Months to 31 March 2017 and Reforecasting Exercise for Financial Year Ending 30 June 2017 |
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As an aside, Mr Collings provided some information relating to payment of taxes to the Councillors. Mr Manton Collings introduced the item, which is a snapshot of where Council’s finances sat at 31 March as well as a reforecast of where it is expected that Council’s finances will be at 30 June 2017. Queries and discussions traversed HBRIC Ltd dividends paid to Council and the timing of those payments, cost overruns attributable to the Government Inquiry into the Havelock North water contamination event and HBRC compliance investigation, Council’s contribution to Matatini factored into the 2016-17 budgets Cr Barker left the meeting at 11.55am Further discussions covered financial impacts of resource consent appeals, objections and Greenpeace judicial review, returns on investment, unspent Regional Landcare Scheme grants, future reports through Long Term Plan to be more outcome focussed, qualified resource to provide Farm Environment Management Plans is not sufficient to achieve the level required by 30 June 2018, and pest control of rooks. |
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RC55/17 |
That Council receives and notes the “Annual Plan progress report for the first nine months of the 2016-17 financial year” to 31 March 2017, and the results of the reforecasting exercise up to 30 June 2017. Kirton/Bailey CARRIED |
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Chairman's Monthly Report – Tabled (following) |
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27 March Attended Staff Meeting Met with Hastings District Mayor 28 March Met with Patrick Parsons Attended Andrew Newman’s Farewell 29 March Regional Council Attended HB Primary Producers Round Table 30 March Ken Apatu’s Tangi 31 March Attended Michael Taylor’s funeral Attended HB Rescue Helicopter Trust meeting 1 April Attended Havelock North Village Green opening 2 April Met with Sir Graeme Avery 3 April Met with Ngati Kahungunu Iwi Chair, Ngahiwi Tomoana 4 April Met with Shayne Walker and Cr Paul Bailey re Tutira Spoke to Stud Leaders Group 5 April Regional Planning Committee Met with Mana Ahuriri re Estuary Statutory Authority Board and funds application partnership with Hawke’s Bay Regional Council 6 April Hawke’s Bay Regional Investment Company (HBRIC Ltd) Director interviews Attended Primary Sector Awards Dinner 7 April Attended Hastings Boxing Academy meeting Met with HB Rescue Helicopter Trust Trustee 10 April Visited Whangawehi Catchment Group in Mahia, hosted in the Tuahuru Marae, Cr Paul Bailey also attended 11 April Maori Committee 12 April Met with proposed HBRIC Ltd Director and potential Chair Met with Mana Ahuriri and Iain Maxwell re funding strategy 13 April Met with HB Rescue Helicopter Trust Trustee Lunch with Treasury CEO and staff at Tomoana House Met with Wayne Jack (NCC CEO) and Shayne Walker (General Manager Maungaharuru-Tangitu Trust) re Matariki/REDs proposal 14 April Easter break 18 April Attended meeting at Te Aranga Marae Attended meeting with Bostock, Manual, Gary Clode and Graeme Hansen re drainage proposition in Wairoa 19 April Ruataniwha Council Workshop 20 April Visited ECO co-housing project in Auckland 21 April Met with HBRIC Ltd Interim Chair |
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The Chairman tabled his report, highlighting work he’s involved in with the Helicopter Trust and the HBRIC directors appointment process. Discussions covered a suggestion that councillors would like to hear about upcoming events they might wish to participate in, the meeting with Mana Ahuriri in relation to applying for funding from the Freshwater fund, attendance at a lunch with the Treasury CE and a meeting with Wayne Jack and Shayne Walker in relation to the Matariki economic development strategy, Council’s role in implementing the strategy and steering group membership. Councillor Barker re-joined the meeting at 12.36pm Further discussion related to a meeting about a proposal for upgrades to a Wairoa drainage scheme with several private horticulture interests. |
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That the Council receives the Chairman’s Monthly report as tabled. CARRIED |
The meeting adjourned at 12.38pm and reconvened at 1.20pm
The Chairman raised a suggestion that councillor-only workshops be considered prior to the monthly Council meetings, maybe at 9am with the Council meeting starting at 10am.
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HBRC Staff Work Programme through May 2017 |
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Discussions traversed a Health & Safety update report to go to the Corporate & Strategic Committee, preliminary matters relating to petroleum regulation plan change including provisions in other regions’ plans, the scale and accuracy of soil mapping done by Council, very high level agenda has been drafted for a Water Symposium and Liz Lambert is taking this forward, and stocktake of Council’s activities that relate to adaptation and mitigation of the effects of climate change, plus the joint drinking water group. Mr Palmer advised that HDC has expressed the preference for holding their own workshop on HPUDS, rather than a joint HBRC, NCC and HDC workshop with discussions following traversed views that the Strategy does not offer sufficient protection for valuable production land against development, councils’ may be making decisions outside the bounds of HPUDS and the suggestion that a workshop with HDC and NCC elected representatives be sought. |
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That Council receives the HBRC Staff Work Programme through May 2017 report. CARRIED |
Item - 15. Chairman's Monthly Report was considered immediately following item 13.
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Items of Business Not on the Agenda |
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Minor items for discussion only
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Independent Director Candidates |
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That Council excludes the public from this section of the meeting, being Agenda Item 17 Independent Director Candidates 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:
CARRIED |
The meeting went into public excluded session at 1.55pm and out of public excluded session at 2.33pm
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Appointment of Independent Directors to the HBRIC Ltd Board of Directors |
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The candidates for appointment to the HBRIC Ltd Board of Directors were considered and resolved in Public Excluded session. |
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That Council makes the appointments of Independent Directors to the HBRIC Ltd Board public through a media release by the Chairman. CARRIED |
Closure:
There being no further business the Chairman declared the meeting closed at 2.35pm on Wednesday 26 April 2017.
Signed as a true and correct record.
DATE: ................................................ CHAIRMAN: ...............................................