Minutes of Corporate and Strategic Committee

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting and Michael Paku offered a karakia.

An apology for lateness from Councillor Peter Beaven was offered.

Cr Alan Dick provided a brief comment on the status of progress on work and discussions to re-establish the Napier-Wairoa rail line in light of recent media coverage of the situation.

The Chairman noted that consideration of item 6 Recommendations from the Finance, Audit and Risk Sub-committee would be deferred until later in the day to allow time for the updated recommendations to be provided to Committee members.

2. Conflict of Interest Declarations

Councillor Belford declared a conflict of interest in item 14 Community Engagement and Communications Quarterly Update, advising that he intends to participate in discussions nevertheless.

There were no further conflict of interest declarations.

3. Confirmation of Minutes of the Corporate and Strategic Committee Meeting held on 24 May 2017

C&S10/17

Resolution

Minutes of the Corporate and Strategic Committee meeting held on Wednesday, 24 May 2017, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Belford/Dick

CARRIED

Follow-ups from Previous Corporate and Strategic Committee Meetings

The item was taken as read, noting that the HB Tourism famil has been on the list for some time and should be removed as HB Tourism is aware of the request and seeking appropriate dates in Spring/Summer to schedule this event.

C&S11/17

Resolution

That the Corporate and Strategic Committee receives and notes the “Follow-ups from Previous Corporate and Strategic Committee Meetings” report.

Bailey/Barker

CARRIED

Call for Items of Business Not on the Agenda

Recommendations

That the Corporate and Strategic Committee accepts the following “Items of Business Not on the Agenda” for discussion as Item 16.

Item	Topic	Councillor / Staff
1.	Whakaki Lake Signing	Cr F Wilson
2.	Special meeting re Maori Constituency	J Palmer
3.	Port Capital workshop	J Palmer

Remuneration Authority Consultation on Elected Representatives' Remuneration Policies

Mrs Lambert introduced the item, and sought a view of whether Council wishes to make a submission. Discussions traversed:

· Remuneration Authority will be in Napier for the Zone 3 meeting on 2 & 3 November and will discuss the policies then

· Include Maori Committee and RPC chairmen in discussions

· request for clarity from the Authority about what they view as the issue and/or what they are seeking to ‘fix’ by changing the remuneration policies

· support for the ‘status quo’

· suggestion that regional councillor role in CHB and Wairoa should be full time as the time required to represent such a large geographical area doesn’t allow for those representatives to hold down a ‘job’ in addition

· Ensure the role of regional councillors is clear

· Suggest a sub-committee consisting of councillors Barker, Wilson, Mr Mohi and staff develop a draft submission to be brought back to Council to meet the Remuneration Authority deadline of 15 December

· Suggestion that there be performance indicators/measures for councillors

C&S12/17

Resolutions

1. That the Corporate and Strategic Committee receives and notes the “Remuneration Authority Consultation on Elected Representatives' Remuneration Policies” 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. Agrees to develop a submission with a collective view of the proposed policies, for confirmation at the 13 December 2017 Regional Council meeting to meet the Remuneration Authority deadline in December.

Wilson/Barker

CARRIED

8.	Notice of Motion from Councillor Paul Bailey
C&S13/17	Recommendations 1. That the Corporate and Strategic Committee accepts the Notice of Motion from Councillor Paul Bailey for consideration; being: 1.1. That council receives the petition and acknowledges receipt of same to First Union 1.2. That staff report back to the next Corporate and Strategic Committee 1.2.1. on progress of the review of council's tendering policy 1.2.2. when the Go Bus tender is due for renewal 1.2.3. if it is possible to renegotiate the Go Bus tender to reflect any pertinent changes to council's tendering policy. Bailey/Barker CARRIED
	Mrs Lambert provided detail about the nature of the contracts for provision of public transport services and Mr James Palmer sought views about employees being paid a living wage and the extent to which Council may be able to require that contractors and/or service providers pay their employees the ‘living wage’ of $20.20/hour. Cr Bailey spoke to his notice, explaining his rationale for the Notice. Queries and discussions traversed: · Suggestion that statement of intent to make a condition of contract that contractors with Council must pay employees minimum of ‘living wage’ · Suggestion that tenders based on price drive wages down · Main funder of the bus services contracts is NZTA and Council needs to fully understand potential implications · Support for measures to uplift the social wellbeing of the community
C&S14/17	Resolutions The Corporate and Strategic Committee recommends 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. Receives the petition and acknowledges receipt of same to First Union 3. Requests that staff report back to the December Corporate and Strategic Committee 3.1 on progress of the review of council's tendering policy 3.2 when the Go Bus tender is due for renewal 3.3 if it is possible to renegotiate the Go Bus tender to reflect any pertinent changes to council's tendering policy. Bailey/Barker CARRIED

2018-28 Long Term Plan Development Process Update

Mr James Palmer introduced the item, outlining work under way by staff on development of the LTP. Mrs Jessica Ellerm added detail about the Rates and Revenue & Financing policy reviews including investigating the date of issue of Rates notices and private-public funding ratios for council activities. Queries and discussions covered:

· Rates levied and potential to change basis to capital value for general rate portion

· Options for leveraging third party funding

· Burden of cost on beneficiaries of service delivery

· Feedback on frequency of Council and committee meetings and scheduling fieldtrips during 2018

· prioritising delivery of work streams

· suggestion to limit Council agenda to consideration of Decision items only and information items to be ‘taken as read’ to make more efficient use of Council meeting time

· substantial efforts over the next three months to bring all the strands of work and change together

C&S15/17

Resolution

That the Corporate and Strategic Committee receives and notes the “2018-28 Long Term Plan Development Process Update” staff report.

Kirton/Waaka

CARRIED

10.

HBRC Representation Review

Mrs Liz Lambert introduced the item, which outlines the requirements and timelines proposed for the upcoming review of Council’s representation arrangements including consideration of whether or not Māori constituencies are established which is a question being discussed at Hui-a-Iwi over the next few weeks. A poll can be demanded by 5% or more of electors – on either the Electoral System or Māori Constituencies decisions.

Councillor Peter Beaven arrived at 10.30am

Queries and discussions traversed:

· options for the arrangements to be workshopped with councillors

· feedback from Maori taiwhenua hui will be provided to Council for a decision on whether or not to establish Māori constituencies and options for Council are to 1. resolve to establish Māori constituencies, 2. resolve to hold a poll, 3. resolve to not establish Māori constituencies

· a resolution to go ahead with the status quo pre-empts the Representation Review, which is must be carried out in accordance with legislation and the LGC guidelines

· community consultation is required through the review processes

· keep things simple by starting from the status quo and adding Māori Constituencies to that if that’s Council’s decision

· Communities of Interest for Napier, Central Hawke’s Bay and Wairoa have been justified and agreed by the LGC three times in the past

· Concern that the CHB and Wairoa constituencies are retained

C&S16/17

Resolutions

That the Corporate and Strategic Committee:

1. Receives and notes the “2018-19 Representation Review” staff report.

Dick/Hewitt

CARRIED

2. The Corporate and Strategic Committee recommends that, in principle, Council retains current Representation Arrangements; being five constituencies represented by 9 elected representatives as the basis for the Representation Review process.

Dick/Hewitt

For: Beaven, Dick, Hewitt, Wilson

Against: Graham, Bailey, Barker, Waaka, Paku, Kirton

LOST

2. The Corporate and Strategic Committee recommends that, in principle, Council retains the current Representation Arrangements; being five constituencies represented by 9 elected representatives as the basis for the Representation Review process subject to further advice from the Māori Committee on behalf of the Māori Community on the subject of Māori Constituencies.

Paku/Belford

CARRIED

The meeting adjourned at 11.05am and reconvened at 11.20am

12.	Presentation of the Napier City Council Aquarium Expansion Business Case
	Mr Wayne Jack and Ms Sally Jackson provided a presentation outlining the Napier City Council National Aquarium Expansion project, including requesting that HBRC considers contributing $5M to the expansion. Focus of aquarium to be on conservation and educating the public on the effects that land based activities have on the marine environment.

15.

HB Tourism Quarterly Update

Annie Dundas, General Manager, introduced Ben Hutton, the new HB Tourism Events Manager before presenting an update on HB Tourism results and activities. Highlights included:

· Growth of visitor spend 8% over last 12 months

· Seasonal campaign focus on Spring Fling and Summer F.A.W.C! August through November

· New website launched

· Tourism Awards and conference and seeking feedback at the Conference about what Tourism in HB might look like in 2030

· Discussion of survey to assess visitor nights for WINZ clients

· Managing future growth and the visitor experience

· Maori tourism inclusion in the Strategic Vision

· Match visitor numbers to specific events

· Financial pressures Council’s facing and consider options in relation to HB Tourism funding

C&S17/17

Resolution

That the Corporate and Strategic Committee receives and notes the “HB Tourism Quarterly Update” report.

Barker/Graham

Abstained: Bailey

CARRIED

The meeting adjourned at 12.45pm and reconvened at 1.20pm

Recommendations from the Finance, Audit and Risk Sub-Committee

The Chairman introduced the item. It was noted that Audit requested that Governors attest to whether they have knowledge of any fraud and that the request in relation to Napier Port balance date should be referred to HBRIC Ltd.

C&S18/17

Resolutions

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 and that Council can exercise its discretion and make decisions on these issues without conferring directly with the community.

2016-17 Annual Report - Audit NZ Discussions

2. Requests that HBRIC Ltd recommends to the Napier Port that it amends its balance date to 30 June in line with Council and HBRIC Ltd dates.

Risk Assessment and Management

3. Confirms the Sub-committee’s confidence that the risk assessment process outlined in the HBRC Risk Assessment and Management Report is an appropriate process to identify and assess organisational risks.

Reports Received

4. Notes that the following reports were provided to the Finance, Audit and Risk Sub-committee meeting:

4.1. Introduction to the Internal Audit Service Provider (Resolved: Agrees to the schedule of Internal Audits to be carried out during the 2017-18 year, being: Data Analytics, Procurement & Purchasing and Water Supply/Wastewater Management/Stormwater)

4.2. Internal Audit Report – Event Response Review

4.3. Resource Management Information System Implementation Update

4.4. September 2017 Update on the Sub-Committee Work Programmes

4.5. 2016-17 Annual Report - Audit NZ Discussions (Resolved: Receives and notes the issues raised by Stephen Lucy, Director Audit NZ, for discussion on HBRC’s Annual Report for Year Ending 30 June 2017 and the 2018-28 Long Term Plan.)

Kirton/Barker

CARRIED

11.

Verbal Update on the Clifton to Tangoio Coastal Hazards Strategy Development

Mr Graeme Hansen provided an update on the current status of the development of the Coastal Hazards Strategy, with a workshop to discuss affordability and funding options for the preferred pathways from the Panel assessment processes is scheduled on 25 September.

Project is proposed to become one large region-wide project including Wairoa and Central Hawke’s Bay in future.

Councillor Beaven, as Chair of the Joint Committee, provided further detail in relation to the process the community panels went through to consider issues, possible options and pathways to achieving the outcomes sought through the Strategy across the short, medium and long term.

13.

Human Resources 2016-17 Annual Report

HR Manager Viv Moule introduced the item, which was taken as read, highlighting employee retention and health and safety. Discussions traversed:

· Organisational and personal impacts of Michael Taylor’s death, while still awaiting Worksafe’s report on the accident

· HB councils’ Contractors all on SiteWise database

· Ageing workforce and institutional knowledge, staff recruitment including gender balance and pay rates, and training budgets

C&S19/17

Resolution

That the Corporate and Strategic Committee receives and notes the “Human Resources 2016-17 Annual Report”.

Dick/Beaven

CARRIED

14.

Community Engagement and Communications Quarterly Update

Councillor Belford declared a conflict of interest in relation to this item.

Mr Drew Broadley introduced the item, highlighting statistics for articles in the media and social media activities, the intention to make more use of video in future as well as seasonal focus.

C&S20/17

Resolution

That the Corporate and Strategic Committee receives the “Community Engagement & Communications Quarterly Update” staff report.

Graham/Bailey

CARRIED

16.

Discussion of Items Not on the Agenda

Item	Topic	Councillor / Staff
1.	Whakaki Lake Signing signing Friday of a relationship agreement between the CEO of the Ministry for the Environment, Vicky Robertson, and the trustees of Tatau Tatau o Te Wairoa (the Treaty Settlement entity for Wairoa)	Cr F Wilson
2.	Port Capital Raising A workshop with financial advisors to Napier Port around financing options for capital raising will preceed the 27 September Council meeting, starting at 8am. A workshop with LGNZ following the Council meeting will start at 3pm.	J Palmer
3.	Special meeting re Maori Constituencies decision Proposed to hold a Council meeting at 9am prior to the E&S meeting on 15 November in order to provide iwi with sufficient time to seek the views of their communities in relation to Maori representation on the Regional Council	J Palmer

17.

Confirmation of the Public Excluded Minutes of the Corporate & Strategic Committee Meeting held on 24 May 2017

C&S21/17

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 Minutes of the Corporate and Strategic Committee Meeting held on 15 February 2017	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.
Capital Structure Review Advisory Committee - Appointment of Independent Members	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.

Bailey/Wilson

CARRIED

Resolution

C&S22/17 Public Excluded Minutes of the Corporate and Strategic Committee meeting held on Wednesday, 24 May 2017, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Wilson/Graham

CARRIED

Resolution

C&S23/17 That the meeting moves out of Public Excluded session.

Graham/Wilson

CARRIED

The meeting went into public excluded session at 2.30pm and out of public excluded session at 2.31pm

Closure:

There being no further business the Chairman declared the meeting closed at 2.31pm on Wednesday 20 September 2017.

Signed as a true and correct record.

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