Minutes of Corporate and Strategic Committee

1. Welcome/Apologies/Notices

The Chairman welcomed everyone to the meeting and Toro Waaka offered a karakia.

Resolution

C&S4/18 That the apologies for absence from Councillor Fenton Wilson and from Councillor Peter Beaven for lateness be received.

Barker/Paku

CARRIED

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 14 March 2018

C&S5/18

Resolution

Minutes of the Corporate and Strategic Committee held on Wednesday, 14 March 2018, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record as amended.

Belford/Graham

CARRIED

Follow-ups from Previous Corporate and Strategic Committee Meetings

The item was taken as read.

C&S6/18

Resolution

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

Bailey/Waaka

CARRIED

5.	Call for Items of Business Not on the Agenda
	There were no items raised.

Councillor Rex Graham advised that he and Councillor Rick Barker need to leave the meeting by 1.15pm

Recommendations from the Finance Audit & Risk Sub-Committee

James Palmer introduced the item, and Liz Lambert provided the updated Corporate Structure in relation to how the recommendations from the Water Management audit report will be addressed across the Integrated Catchment Management, Strategic Planning and Regulation groups. Increased capacity required for plan changes to meet national standards and policy statements, science, and consents, compliance monitoring and pollution response. The implementation of the RMIS software is a key part of council’s capacity building. Discussions traversed:

· CHB and Wairoa now part of the drinking water joint staff working group

· Drinking water source protection and the role of plans and regulation to address issues such as stock exclusion from waterways, including work developing the TANK plan change and PC 6 in Tukituki new stock exclusion and riparian margin requirements

· Processes and systems for responding to complaints through to reporting outcomes

· Living wage memorandum and including a weighting for contractors in tender assessment processes, potential implications for employing students as well as the regional differences in the cost of living

· Rationale for the recommendation to base the HBRIC valuation on the Flagstaff work done for the Port capital funding requirements

C&S7/18

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 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.

Dick/Belford

CARRIED

Living Wage Implications Memorandum

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

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).

Dick/Hewitt

CARRIED

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

Dick/Hewitt

For: Dick, Hewitt

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

LOST

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.

Bailey/Belford

CARRIED

Appointment of an Independent Member to the Finance, Audit and Risk Sub-Committee

The item was taken as read.

C&S8/18

Resolution

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; being:

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

2.2.2. the Finance, Audit and Risk Sub-committee will assess Expressions of Interest received and determine a shortlist of candidates for interview

2.2.3. the Finance, Audit and Risk Sub-committee Sub-committee to interview the shortlisted candidates, after which the Sub-committee recommends the appointment of the preferred appointee to Council.

Dick/Waaka

CARRIED

HBRC Representation Review

Having determined the impacts of the Hastings District Council meshblock moves after receiving the detailed information, Leeanne Hooper tabled a document detailing the updated population statistics (following) for the Ngaruroro and Hastings constituencies, should those changes be incorporated into the HBRC arrangements.

Updated stats with HDC meshblock changes from Heretaunga & Kahuraniki to Hastings calculated ( +/- 350)

Constituency	Population	Reps	Population per Rep	Difference from average	Percentage difference
Wairoa	8,220	1	8,220	-10,010	-54.91
Napier	62,000	3	20,700	2,470	13.37
Ngaruroro	20,850	1	20,850	2,620	14.4
Central Hawke's Bay	13,850	1	13,850	-4,380	-24.03
Hastings	59,150	3	19,700	1,470	8.06
Total	164,070	9	18,230

Discussions traversed:

· Staff recommendations within the item reflect the previous Corporate and Strategic resolution with the addition of the Hastings-Ngauroro changes in line with LGC guidance that regional council constituency boundaries be consistent with TLA boundaries

· timelines for all Representation review matters and decision points included are in the table provided in the Agenda, which also includes the timeframes for unrelated decisions made by Council on Māori Constituencies (November 2017) and the Electoral System (September 2017) and associated public poll demands

· In line with the previous direction provided by the Committee in September, it was agreed that the proposal for Council’s initial approval is to be based on the status quo including the Hastings/Ngaruroro meshblock changes

C&S9/18

Resolutions

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 a proposal for Council’s consideration and resolution of the HBRC initial proposal for public notification to the 25 July Regional Council meeting based on the Council’s current representation arrangements with the exception of the inclusion of meshblock changes from the Ngaruroro Constituency to the Hastings Constituency as aligned with the Hastings District Council ward boundary changes.

Barker/Dick

CARRIED

10.

Councillor Appointment to HB Tourism Board of Directors

The item was taken as read, with James Palmer reading out the resignation letter from Councillor Wilson.

C&S10/18

Resolutions

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

Bailey/Barker

CARRIED

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 Tom Belford to the HB Tourism Board of Directors.

Bailey/Barker

CARRIED

The meeting adjourned at 10.28am and reconvened at 10.43am

Draft Statement of Investment Policy Objectives and Treasury Policies

Jessica Ellerm introduced the item and Mr Brett Johanson (PWC), intended to incorporate the changes required to facilitate Council’s change of direction with its investment portfolio.

PWC’s review of the Investment Policy and the Liability Management Policy focussed on Council’s decisions to form a DIP and to become a member of LGFA, as well as bringing experiences from working with other regional councils, in order to ensure both policies are consistent with those decisions.

Discussions covered:

· Looking for a clear statement of intent to retain the real value of the investments over time – ref agenda pg 92 “Investments … help achieve its strategic economic objectives, while collectively retaining their real capital value over the period of their ownership.”

Councillor Beaven arrived at 10.57am

· Ethical investment section requires further discussion

· Investment Policy is separate from the Investment Strategy which is contained within Council’s Financial Strategy in the LTP

· Blended investments provide environmental benefits as well as financial or regional economic growth

· Retention of beneficial control of Napier Port as a strategic asset either directly or through HBRIC

· Query around percentage of investment in term deposits

· Contingent liabilities

· Amount of cash accessible quickly in unforeseen circumstances – borrowing facility available required by LGNZ

· Swap collar and swoptions

· Hedging of international investments

· Investment Advisory function, whether an independent person or organisation, to review the performance of all council’s investments

C&S11/18

Resolutions

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 as agreed by 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 as agreed by 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, confirming an Open competitive procurement process and that the assessment panel will include all councillors.

Hewitt/Barker

CARRIED

Item - 9. HBRC Representation Review - was considered immediately following item 7.

Item - 10. Councillor Appointment to HB Tourism Board of Directors - was considered immediately following items 7 and 9.

11.

HBRIC Ltd Draft 2018-19 Statement of Intent

The item was taken as read.

C&S12/18

Resolutions

1. That the Corporate and Strategic Committee receives and notes the “HBRIC Ltd 2018-19 Statement of Intent” staff report.

2. The Corporate and Strategic Committee recommends that Council:

2.2. Adopts the HBRIC Ltd 2018-19 Statement of Intent as attached.

Dick/Belford

CARRIED

12.

Health and Safety Update

Taken as read, with queries in relation to what the two public complaints related to and counselling services offered to staff.

C&S13/18

Resolution

That the Corporate and Strategic Committee receives and notes the “Health and Safety” staff report.

Beaven/Belford

CARRIED

13.

Discussion of Items Not on the Agenda

There were no items raised for discussion.

14.

Confirmation of Public Excluded Minutes of the Corporate & Strategic Committee Meeting Held 14 March 2018

C&S14/18

Resolution

That the Council excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 14 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 & Strategic Committee Meeting held 11 December 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.

Phase II Capital Structure Review Report

7(2)(b)(ii) That the public conduct of this agenda item would be likely to result in the disclosure of information where the withholding of that information is necessary to protect information which otherwise would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

7(2)(i) 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 enable the local authority holding the information to carry out, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

Dick/Paku

CARRIED

15.

Consideration of Debt Facility - HBRC to HBRIC Ltd

C&S15/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 15 Consideration of Debt Facility - HBRC to HBRIC Ltd 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

Consideration of Debt Facility - HBRC to HBRIC Ltd

7(2)(j) 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 prevent the disclosure or use of official information for improper gain or improper advantage.

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2 That Mr Blair O’Keeffe (HBRIC Ltd Chief Executive Officer), remains in attendance for this item as the author of the report and subject matter expert.

Dick/Paku

CARRIED

16.

Napier Port Capital Raising Options

C&S16/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 16 Napier Port Capital Raising Options 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

Napier Port Capital Raising Options

The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

2. That Mr Blair O’Keeffe (HBRIC Ltd Chief Executive Officer), remains in attendance for this item as subject matter expert.

Dick/Paku

CARRIED

The meeting went into public excluded session at 11.50am and out of public excluded session at 12.38pm

Closure:

There being no further business the Chairman declared the meeting closed at 12.38pm on Wednesday 13 June 2018.

Signed as a true and correct record.

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