Agenda of Corporate and Strategic Committee

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 June 2018

Subject: Recommendations from the Finance Audit & Risk Sub-Committee

Reason for Report

1. The following matters were considered by the Finance Audit & Risk Sub-committee meeting on 6 June 2018 and are now presented for the Committee’s consideration and approval.

Agenda Items

2. Procurement and Contract Management Internal Audit (attached) - presented the internal audit report for Procurement and Contract Management, including management commentary against each of the report’s recommendations. The Sub-committee resolved to refer the report to this Committee for endorsement.

3. Living Wage Implications Memorandum (attached) – provided the Sub-committee with the Crowe Horwath Living Wage memorandum for review and consideration, and sought feedback about the potential inclusion of ‘living wage’ considerations in Council’s procurement policy. The Sub-committee resolved that the Corporate and Strategic Committee make further recommendations to Council, and requested that staff provide additional context for the Committee’s consideration, as included following.

3.1. As highlighted in the memorandum, there are potential benefits to paying a worker a living wage. Intended benefits for the employee include recognition of the dignity and importance of work, and for some families this extends to no longer having to work multiple jobs and being able to provide for and spend time with their family. Intended benefits for the employer are noted as reduced employee turnover, attraction of more highly skilled job applicants, lower rates of sickness and absence, and reputational gain.

4. Water Management Internal Audit (attached) – provided the Crowe Horwath Water Management internal audit findings report, including management commentary against each of the report’s recommendations. The Sub-committee requested that staff present the report to this meeting, with a high level view of the collaboration between Council’s teams required to address the recommendations and further, recommended that the Corporate and Strategic Committee request a comprehensive report to the October 2018 Corporate and Strategic Committee meeting on progress responding to the report’s recommendations.

5. Proposed 2018-19 Internal Audit Programme – proposed an internal audit programme for the 2018-19 financial year.

6. HBRIC Ltd and Napier Port Valuations – sought the Sub-committee’s recommendation of an approach for the triennial valuation of the Hawke’s Bay Regional Investment Company Ltd (HBRIC Ltd) for the year ended 30 June 2018.

7. Local Government Act Section 17a Reviews – provided an update on progress with s17a activities reviews to meet Council’s obligations under s17a of the Local Government Act (2002).

8. Resource Management Information System Implementation Update – provided an updat on progress with the implementation of the new Resource Management Information System software.

9. David Benham Resignation – provided to enable the sub-committee to formally accept Mr Benham’s resignation.

10. June 2018 Update on the Sub-Committee Work Programmes – provided an overall update on the sub-committee’s work programme

11. Proposed 2018-19 Council Insurance Programme – in public excluded session, provided details covering the annual renewal of Council’s current insurance policies and the terms and conditions of renewal.

Decision Making Process

12. These matters have all been specifically considered at the Sub-committee level, and relevant reports are attached for the Committee’s consideration of further recommendations to Council.

Recommendations

The Finance Audit & Risk Sub-Committee recommends 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 and persons likely to be affected by or to have an interest in the decision.

Procurement and Contract Management Internal Audit

2. Endorses the Procurement and Contract Management Internal Audit Report, including the commentary, and any follow-up actions, provided against each of the report’s recommendations by HBRC Executive staff.

Living Wage Implications Memorandum

3. Receives and notes the “Living Wage Implications Memorandum” and accompanying staff report.

4. Recommends that Council:

4.1. Participates in and continually monitors results of the Public Transport Operating Model review and/or any central government policy changes that necessitate the reassessment of the GoBus contract to align with legislation and its own internal policies accordingly.

4.2. Requests that staff amend Council’s procurement policy to give weighting to contractors who are paying the living wage, alongside other important factors such as environmentally friendly business practices and overall affordability, in Tender evaluation processes.

4.3. Requests that Council’s procurement policy is published on the HBRC website (in line with the Procurement Review recommendations from Crowe Horwath).

4.4. Undertakes an exercise to determine a Hawke’s Bay living wage.

Water Management Internal Audit

5. Requests that staff provide a comprehensive report on progress responding to the Crowe Horwath Water Management Internal Audit report findings and recommendations to the 3 October 2018 Corporate and Strategic Committee meeting.

HBRIC Ltd and Napier Port Valuations

6. Recommends that Council:

6.1. Uses the Napier Port valuation provided by HBRIC Ltd as the basis for the valuation of HBRIC Ltd

6.2. Considers undertaking a further valuation of HBRIC Ltd and Napier Port in the 2019-20 financial year.

Reports Received

7. Notes that the following reports were provided to the Finance Audit & Risk Sub-committee.

7.1. Proposed 2018-19 Internal Audit Programme (added Water Management re-run q4 of 2018-19 and delayed Treasury to 2019-20)

7.2. Local Government Act Section 17a Reviews (agreed the proposed work programme)

7.3. Resource Management Information System Implementation Update

7.4. David Benham Resignation

7.5. June 2018 Update on the Sub-Committee Work Programmes

7.6. Proposed 2018-19 Council Insurance Programme.

Authored by:

Melissa des Landes

Management Accountant

Leeanne Hooper

PRINCIPAL Governance ADVISOr

Approved by:

Jessica Ellerm

Group Manager Corporate Services

Attachment/s

⇨1	Procurement and Contract Management Internal Audit Report	Under Separate Cover
⇨2	Living Wage Implications Memorandum	Under Separate Cover
⇨3	6 June 2018 Finance, Audit & Risk Sub-committee Living Wage agenda item	Under Separate Cover
⇨4	Water Management Internal Audit Report	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 June 2018

Subject: Appointment of an Independent Member to the Finance, Audit and Risk Sub-committee

Reason for Report

1. To enable the initiation of a process to appoint an independent member of the Finance, Audit and Risk Sub-committee (FA&R) to replace David Benham, who has tendered his resignation.

Background

2. The Terms of Reference for the FA&R, adopted by Council on 9 November 2016, state that membership of the sub-committee is:

2.1. Four members of Council, being: Councillors Alan Dick, Neil Kirton, Paul Bailey and Rick Barker

2.2. An external appointee, being: David Benham.

3. At the time (November 2016) Council adopted its governance structure, including committees’ Terms of Reference and membership, there were discussions around:

3.1. The necessity (or otherwise) for an external, independent member of the FA&R

3.2. Whether the FA&R should be a ‘standing committee of the whole’ with delegations to make recommendations directly to Council rather than through the Corporate & Strategic Committee as a sub-committee of that body.

Options Assessment

4. Council could amend the FA&R Terms of Reference to remove the membership requirement for an external (independent) appointee on the sub-committee. However, as this would be contrary to best practice guidelines, staff do not recommend this option.

5. The Committee can agree the process to replace the Independent Appointee on the FA&R, and recommend to Council that the process be initiated.

6. If it is of a mind to, the Committee might base the process to appoint a new independent member on the one previously undertaken, being:

6.1. Requests that the Chief Executive seeks Expressions of Interest from suitably qualified applicants for the role of independent member of the Finance, Audit and Risk Sub-committee

6.2. Determines the process for the appointment of the independent member of the sub-committee; being:

6.2.1. Candidates short-listed for interview by the Sub-committee

6.2.2. Sub-committee interviews shortlisted candidates

6.2.3. Sub-committee recommends appointment of preferred candidate to the Corporate and Strategic Committee.

Financial and Resource Implications

7. The remuneration, including expenses, for the independent member has been included in Council’s governance budgets, currently set at $8,000 per annum.

Decision Making Process

8. 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:

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

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

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

8.4. The persons affected by this decision are councillor members of the Finance, Audit and Risk Sub-committee and potential candidates for independent member of that body.

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

8.6. 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 “Appointment of an Independent Member to the Finance, Audit and Risk Sub-committee” 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. Initiates the process following for the appointment of an Independent member of the Finance, Audit and Risk Sub-committee to replace David Benham.

2.2.1. Chief Executive to seek expressions of interest from suitably qualified candidates

2.2.2. Sub-committee to assess EoIs received and determine a shortlist of candidates for interview

2.2.3. Sub-committee undertakes interview of the shortlisted candidates, after which the Sub-committee recommends the appointment of the preferred appointee to Council

Authored by:

Leeanne Hooper

PRINCIPAL Governance ADVISOr

Approved by:

James Palmer

Chief Executive

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 June 2018

Subject: Draft Statement of Investment Policy Objectives and Treasury Policies

Reason for Report

1. To provide Council with a draft Statement of Investment Policy and Objectives (SIPO) and draft amendments to the Treasury Policies (Investment and Liability Management Policies) for discussion.

Background and Discussion

2. The 2018-25 LTP proposed to set aside the remaining $50 million cash funds from the RWSS to be invested and provide a return of 4.5% for the first year of the LTP and then a 5% return for the rest of the LTP.

3. In the Council workshop on 9^th May 2018, Bancorp Treasury Services Ltd provided a commercial investments overview setting out various investment options, return estimates and risk levels. From this information Council chose to peruse a balanced diversified investment portfolio and commissioned staff to start the process of drafting a SIPO and progressing a request for proposal (RFP).

4. PwC Treasury services were engaged to evaluate the current HBRC Treasury Policies, provide a comprehensive SIPO and help with the documentation and process for the RFP.

5. Attached are the following documents from PwC:

5.1 Covering letter Treasury Policy Recommendations

5.2 Draft Treasury Policies (Amended)*

5.3 Draft Treasury (Amended with tracked changes)*

5.4 Covering letter SIPO

5.5 Draft SIPO*

*please note that the role titles used in these documents reflect the new reorganisation which will take effect on the 1^st July 2018.

6. The Investment and Liability Management Policies have been amended to reflect treasury best practice and provide more detail to incorporate the use of a diversified investment portfolio, investment manager and LGFA borrowing.

7. These amendments are not seen as significant as they do not change the essence of the financial strategy consulted in the LTP. Changes to these two policies do not trigger a requirement to consult.

8. One change which needs to be discussed is that PwC have suggested that the borrowing limits that were set out in the Liability Management Policy and Financial Strategy should be aligned with the LGFA lending policy requirements.

8.1 Previous limits :

	HBRC
Total interest expense / total operating expenditure	<25%
Debt to Debt Equity Ratio	<28%

8.2 Suggested new limits:

	HBRC	LGFA
Net external debt as a percentage of total revenue	<150%	<175%
Net interest on external debt as a percentage of total revenue	<15%	<20%
Net interest on external debt as a percentage of annual rates income	<20%	<25%
Liquidity (liquid assets, term debt and committed debt facilities as a percentage of existing total external debt)	>110%	>110%

RFP

9. Once Council are comfortable with the Treasury Policies and the SIPO the RFP can be advanced. PwC have started drafting the RFP and will finalise the draft document promptly once the following areas are confirmed by Council:

* Potential timeframes for the RFP process will be provided at the meeting.

Competitive Procurement Process

10. The HBRC procurement policy states that procurement over $50,000 requires a competitive procurement process such as a RFP and this should be an open process that is available to all parties allowing for as many high quality participants as possible.

11. However the procurement policy does allow for the ability to proceed with a closed procurement process with a select number of participants but this would need approval from the Tenders Committee and there would need to be justification for this and a set criteria for short listing so that this could not be challenged by a party that was not invited to take part in the process.

12. Advice received from both Bancorp and PwC preferred a closed tender due to the timeframe, complexity and expense of a large open RFP process and given that the increased returns for the LTP are expected from 1 July 2018.

Criteria

13. If a closed RFP is preferred there needs to be some set criteria to determine how those were selected. Suggested list includes:

13.1 Qualifications

13.2 Track Record

13.3 Service

13.4 Compliance

13.5 Governance

13.6 Fees

13.7 Investment Philosophy and Process

13.8 Expense ratios/fees

13.9 Stability of the Organisation

Selection Process

14. Whichever competitive procurement process is chosen Council need to decide if the selection process will be driven by the whole of Council or through the Tenders Committee or other appropriate panel.

Decision Making Process

15. 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:

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

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

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

15.4. The persons affected by this decision are all ratepayers in the region.

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

15.6. 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 “Draft Statement of Investment Policy Objectives and Treasury Policies” staff report.

2. The Corporate and Strategic Committee recommends that Council:

2.2. Agrees to the new borrowing limits to align them to the LGFA lending policy requirements.

2.3. Agrees to the Statement of Investment Policy Objectives as amended at the Corporate and Strategic Committee meeting on 13 June 2018 for adoption at the Council meeting on 27June 2018.

2.4. Agrees to the Investment and Liability Management Policies as amended at the Corporate and Strategic Committee meeting on 13 June 2018 for adoption at the Council meeting on 27 June 2018.

2.5. Agrees to progress the RFP process after confirming:

2.5.1 Either an Open or Closed competitive procurement process

2.5.2 Either the selection panel composition of all of Council, the Tenders Committee or some other selection panel.

Authored by:

Manton Collings

Corporate Accountant

Melissa des Landes

Management Accountant

Approved by:

Jessica Ellerm

Group Manager
Corporate Services

Attachment/s

⇨1	Covering letter Treasury Policy recommendations	Under Separate Cover
⇨2	Draft Treasury Policies (Amended)	Under Separate Cover
⇨3	Draft Treasury Policies - PwC marked up version	Under Separate Cover
⇨4	SIPO Covering letter	Under Separate Cover
⇨5	HBRC Long Term Investment Fund (Statement of Investment Policy and Objectives)	Under Separate Cover

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 June 2018

SUBJECT: HBRC Representation Review

Reason for Report

1. To provide the Committee with the proposed representation arrangements review process and timelines for agreement, and to seek feedback on any alternatives to the status quo that members would like staff to develop for Council’s consideration.

Background

2. The Local Electoral Act (LEA) and Local Government Act (LGA) require Council to review its Representation Arrangements at least once every six years – 2018 to take effect for the 2019 elections, as the last review was carried out in 2012 for the 2013 elections.

3. At the Corporate and Strategic Committee meeting on 20 September 2017, the Committee was advised of the need for a representation review prior to the 2019 local body elections and asked to note the proposed timeline to undertake this review. That meeting resolved:

3.1. 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.

4. Subsequent to the September Committee and Council meetings, the Council considered the establishment of one or more Māori constituencies at a meeting on 15 November 2017, which resolved:

4.1. In accordance with s.19Z of the Local Electoral Act 2001, to not establish Māori constituencies for the Hawke’s Bay Region for the 2019 local body elections.

5. Having resolved both the Electoral System to be used for the 2019 and 2022 Elections (30 August 2017) and the decision to not establish one or more Māori constituencies, it is now incumbent upon Council to review its Representation Arrangements.

Considerations for Council

6. The Local Electoral Act 2001 (LEA), together with the Local Government Act 2002 (LGA), specify the requirements for representation arrangements, including:

6.1. Part 1A of the LEA contains various principles relevant to representation reviews, including the paramount consideration that local authorities, elected officers and other electoral officials must, in making decisions under the Act, adhere to ''fair and effective representation for individuals and communities''.

7. In conducting the representation review the Council must determine by resolution:

7.1. The proposed number of constituencies

7.2. The proposed name and the proposed boundaries of each constituency

7.3. The number of members proposed to be elected by the electors of each constituency.

8. The term ''community of interest'' is not defined by Statute. It is a term that can mean different things to different people depending on a perspective from time to time. Common features of a community of interest are geography and social, economic and cultural connections, all of which contribute to the development of a shared identity.

9. The Commission’s ‘Guidelines to assist local authorities in undertaking representation reviews’ provides three dimensions for recognising communities of interest, being:

9.1. perceptual: a sense of belonging to an area or locality

9.2. functional: the ability to meet the community’s requirements for services

9.3. political: the ability to represent the interests and reconcile conflicts of the community.

10. Councillors have an option of having anywhere between 6 and 14 Councillors representing the identified communities of interest in whatever proportion is decided. The principles identified by the Commission, for Councils considering this issue are:

10.1. A recognised community of interest should not be split between electoral subdivisions

10.2. Avoid grouping together two or more communities of interest that share few commonalities of interest

10.3. Consider the accessibility, size and configuration of an area – with the population having reasonable access to its elected members and vice versa, for example would elected members be able to attend public meetings throughout their area and provide reasonable opportunities for their constituents to have face-to-face meetings?

10.4. Would elected members be able to effectively represent the views of their electoral subdivision?

11. The key requirement for Fair Representation is to comply with the basic principle of population equality unless there are good reasons not to. A Regional Council can decide to not comply with Section 19(v)(ii) if it considers that effective representation of communities of interest so requires. Such a decision then requires referral of the proposal to the LGC for determination specifically stating the reasons for that decision.

Options Assessment

12. The 2013 LGC determination agreed the need for Wairoa, Central Hawke’s Bay and Napier constituencies despite not meeting the +/-10% requirement due to:

12.1. “we agree that a separate Wairoa Constituency is necessary to ensure effective representation of this community of interest. In summary we agree that:

12.1.1. Wairoa has a community of interest distinct from the rest of the region, both physically and socio-economically, and this presents particular challenges for community consultation and provision of services;

12.1.2. the physical realities of the area give rise to particular issues not experienced elsewhere including hill country erosion, pressure on coastal development, pest management, transport infrastructure biodiversity protection, wetland enhancement, flooding and other natural hazards;

12.1.3. effective representation is most unlikely to be achieved by merging Wairoa into another constituency in order to comply with the +/-10% rule as this would result in a very large area (70% of the land area of the region) with few commonalities of interest and still eligible for only one councillor;

12.1.4. effective representation would be compromised in terms of both access to a councillor and representation of the diversity of the constituency; and

12.1.5. the demands on a councillor servicing an enlarged area would be unreasonable.”

12.2. “We were satisfied, on the basis of the arguments put to us by the Council and supported by all of the objectors, that there was a case for reducing the size of Central Hawke’s Bay Constituency to coincide with Central Hawke’s Bay District, consistent with section 19U(c), notwithstanding it would not comply with the section 19V(2) fair representation requirement. We endorse the Council proposal in this respect accordingly.”

12.3. “In excess of 2,000 people would need to be transferred from this constituency if it were to equate to the region average population per councillor with a minimum of over 500 to be transferred in order to be within a +/-10% variation.
… Given the numbers involved and the predominantly urban nature of the Napier Constituency, we note that a large segment of the outlying area of Napier City would have to be transferred to the adjoining Hastings Constituency. We also note that the neighbouring parts of the Hastings Community are primarily rural or semi-rural in nature. While it is guided by the principle of fair representation defined in the Act by the +/-10% rule, the Commission considers it is also appropriate to be guided by the requirement to ensure, so far as is practicable, constituency boundaries coincide with territorial authority boundaries ...”

13. Staff consider that, given the previous resolutions of the Corporate and Strategic Committee and the Regional Council, and previous determinations of the LGC; the current Representation Arrangements for HBRC don’t require substantial changes.

14. Staff also consider, however that through this review, Council should consider giving effect to boundary changes made by the Hastings District Council; being:

14.1. Hastings District councillors (22 March 2018) decided to recommend leaving the HDC current system largely in place, with just slight boundary changes to take into account new urban developments which would otherwise be included in rural wards.

14.2. Where these changes affect the Ngaruroro/Hastings constituency boundaries, staff recommend that the following meshblock changes are incorporated into the HBRC Representation Arrangements to be considered by Council for resolution on 25 July:

14.2.1. Lyndhurst (Meshblock 1471202) from Heretaunga to Hastings Havelock North (+850)

14.2.2. Williams Street (Meshblock 1471401) from Heretaunga to Hastings Havelock North (+500)

14.2.3. Howard Street (meshblock 1472900) from Heretaunga to Hastings Havelock North (+60)

14.2.4. Iona (meshblocks 1465506 and 1465601) from Heretaunga to Havelock North (+100)

14.2.5. Te Mata Hills (meshblock 1466710) from Kahuraniki to Hastings Havelock North (+250)

14.2.6. Resulting in 1760 moving out of the Ngaruroro Constituency, into the Hastings Constituency.

Consultation

15. After discussions at today’s meeting, it is hoped that the committee will have provided clear direction to staff about whether there’s a need to formulate alternative proposals for consideration on 25 July, to enable directly resolving and releasing an Initial Proposal for formal public consultation.

16. The process and timeframes for consultation are specified by the legislation, and depending on the nature of any proposed changes there could be a very low level of interest and input on the matter if historical indications are anything to go by.

17. Staff have not made a specific recommendation as to any consultation that could occur before the initial proposal is resolved because to a substantial degree it will hinge upon the extent of any changes proposed. One option could be for staff to conduct an informal online and social media survey to gauge public interest, and members’ feedback is sought in this regard.

Summary of Decisions Required

18. The Committee is asked to provide guidance to Council staff today, on whether they want any proposals for alternative representation arrangements developed and provided to Council for consideration as its ‘initial proposal’ on 25 July.

19. The timelines for the Representation Arrangements review matters and decisions are:

Key Project Milestone	Description	Due date
1. Electoral System decision	Council resolution re Electoral System	Achieved 12 Sept 17
1. Electoral System decision	-Public Notice – electors’ right to demand electoral system poll	Achieved 19 Sept 17
2. Maori Constituencies decision	Council resolution to establish Maori Constituencies	Achieved 23 Nov 17
2. Maori Constituencies decision	-Public Notice – establish Maori constituencies if resolved	Achieved
3. Poll Demand	Poll demand for Electoral System or Maori Constituencies	No Demand made
3. Poll Demand	Hold poll if demanded or resolved by 21 February	No Demand made
4. Present options and initiate review	Present status quo with HDC changes seek alternative options for further development	13June C&S
4. Present options and initiate review	Council resolution (recommended by C&S) to initiate Representation Review	27 June
5. Pre-engagement with Public if agreed	Questionnaire /survey, Facebook, HBRC website	28 June- 13 July
6. Council resolves Initial Proposal Within 14 days of resolution	Council selects preferred option as Initial Proposal for notification 19U –effective representation 19V –fair representation and other factors	25 July 2018
	Public Notice of initial proposal and open submissions 19L – distribution of copies of resolution 19M – public notice of proposals, and responsibilities in relation to submissions	4 August
	Close of submissions on Initial Proposal	Monday 17 Sept
7. Respond to Submissions	If submissions received, Council considers within 6 weeks of closing 19N – response to submissions	3 Oct C&S
8 Final Proposal	Amend Proposal from submissions hearings if appropriate - Resolve Final Proposal	Council meeting on 24 October
8 Final Proposal	Public Notice of Final Proposal	On or before Sat 27 Oct 2018
9. Appeals/Objections	Period of 1 month allowed for 19O appeals /19P objections	Close 26 Nov18
10. Lodge Final Proposal with LGC	- If no Appeals/Objections –Council confirms as final + Gives Public Notice of Final Proposed Arrangements	28 Nov 2018 3 Dec 18
	- Forward all documentation to LGC for final determination (not all constituencies meet +/-10% rule)	10 Dec 18
	- If appeals/objection *are* received, advise 28Nov Council meeting and forward all documentation to LGC for determination	before 15 Jan 19

Decision Making Process

20. Council and its committees are 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:

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

20.2. The use of the special consultative procedure is prescribed by legislation, and will be undertaken in accordance with relevant provisions of the Local Government Act and Local Electoral Act.

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

20.4. The persons affected by this decision are the voters within Hawke’s Bay Regional Council boundaries.

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

21. 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 this decision, Council can exercise its discretion and make this decision in light of the consultation process to be undertaken to seek public input to inform the final decisions.

Recommendations

1. That the Corporate and Strategic Committee receives and notes the “HBRC Representation Review” staff report.

2. Considers the matters raised in this paper and provides direction to Council staff on the scope of any proposals for alternatives to the current representation arrangements to be developed and provided to Council for consideration on 25 July 2018.

3. The Corporate and Strategic Committee recommends that Council:

3.1. Notes that the decisions in relation to Council’s Representation Arrangements will be made in accordance with Council’s adopted Significance and Engagement Policy, provisions of the Local Electoral Act 2001 (LEA) and the Local Government Act 2002.

3.2. Initiates the review of the Hawke’s Bay Regional Council’s representation arrangements as required by the Local Electoral Act 2001 (LEA) and the Local Government Act 2002.

3.3. Requests that staff present proposals for Council’s consideration and resolution of the HBRC initial proposal for public notification to the 25 July Regional Council meeting.

Authored by:

Leeanne Hooper

PRINCIPAL Governance ADVISOr

Approved by:

Liz Lambert

Group Manager
External Relations

Attachment/s

There are no attachments for this report.

HAWKE’S BAY REGIONAL COUNCIL

Corporate and Strategic Committee

Wednesday 13 June 2018

Subject: Councillor Appointment to HB Tourism Board of Directors

Reason for Report

1. To seek nominations for appointment to the HB Tourism Board of Directors to replace Councillor Fenton Wilson, who has resigned.

Hawke’s Bay Tourism

2. Tourism Hawke’s Bay is the official Regional Tourism organisation (RTO) for Hawke’s Bay. It is governed by a Board, which includes a representative from the Hawke’s Bay Regional Council.

3. HB Tourism is a membership based organisation and offers two partnership programme models.

3.1. Industry Partner – for businesses with a direct relationship to the visitor industry e.g. accommodation, transport operators, attractions, retailers, hospitality industry and wineries.

3.2. Support Partner – for support service businesses, industry and sector associations and those with a genuine desire to support economic development in Hawke’s Bay through tourism initiatives.

4. The Board of HB Tourism meets approximately every six weeks and undertakes:

4.1. Governance of HB Tourism, including progress towards achieving key performance indicators

4.2. Extensive stakeholder engagement with tourism operators, central and local government and other agencies

4.3. Consideration of new initiatives for tourism in Hawke’s Bay (for example, F.A.W.C! Food and Wine Classic)

5. Tourism Hawke’s Bay is jointly funded by the Hawke’s Bay Regional Council and the local tourism industry through the Hawke’s Bay Tourism Industry Association.

Options Assessment

6. Councillors are appointed to various external bodies where representation from the HBRC has been requested, or and/or where HBRC has a financial interest.

7. The role of councillors on these various organisations is not to direct or lead the organisation (except where appointed by the organisation to do so) but instead it is to inform the organisation of Council’s views and to act as a conduit for the organisation back to Council.

8. As Council jointly funds Tourism Hawke’s Bay, it is recommended that HBRC appoints a Director to the Board of Tourism Hawke’s Bay to replace Cr Wilson.

Decision Making Process

9. Council and its committees are 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:

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

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

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

9.4. The persons affected by this decision are Council’s elected representatives and members of the HB Tourism Board of Directors.

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

9.6. 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

1.1. receives and notes the “Councillor Appointment to HB Tourism Board of Directors” staff report

1.2. nominates Councillor ………………………………. for appointment as Director on the HB Tourism Board of Directors as Council’s representative to replace Councillor Fenton Wilson.

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 this decision without conferring directly with the community and persons likely to be affected by or to have an interest in the decision.

2.2. Appoints Councillor ………………………………… to the HB Tourism Board of Directors.

Authored by:

Leeanne Hooper

PRINCIPAL Governance ADVISOr

Approved by:

James Palmer

CHIEF EXECUTIVE

Attachment/s

There are no attachments for this report.