Minutes of Regional Council Meeting

1. Welcome/Prayer/Apologies/Notices

The Chairman welcomed everyone to the meeting, and Mike Mohi offered a karakia.

Councillor Belford gave notice that he will oppose the recommendations to move into Public Excluded for consideration of agenda items 15 and 16.

Mr Mohi advised that he will need to be excused at 2.30pm.

2. Conflict of Interest Declarations

There were no conflict of interest declarations.

3. Confirmation of Minutes of the Regional Council Meeting Held on 25 July 2018

RC90/18

Resolution

Minutes of the Regional Council Meeting held on Wednesday, 25 July 2018, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Kirton/Belford

CARRIED

Secretarial note: As there is no provision for discussion of the minutes other than confirmation of their correctness, points raised in relation to the 25 July meeting are recorded under item 4. Follow-up items from previous meetings.

Follow-up Items from Previous Regional Council Meetings

In relation to the Kahutia Accord, James Palmer confirmed that the amendments in relation to disputes resolution and good faith suggested by councillors were accepted and incorporated into the final version of the ‘expression of intent’ document prior to its being signed.

The steps in response to the petition from Ongaonga and Tikokino residents will be provided through the Environment and Services Committee on 5 September.

NCC providing a presentation on their strategy for Ahuriri to te Komiti and invited to present to the Environment and Services Committee.

Response to Audit NZ LGOIMA request to be provided to councillors as part of September follow-ups.

RC91/18

Resolution

That the Council receives and notes the “Follow-up Items from Previous Meetings” staff report.

Bailey/Beaven

CARRIED

Call for Items of Business Not on the Agenda

Recommendations

That Council accepts the following “Items of Business Not on the Agenda” for discussion as Item 13.

Item	Topic	Raised by
1.	Napier-Gisborne Rail	Cr Dick
2.	Donation sponsors naming rights policy	Cr Hewitt
3.	HPUDS	Cr Beaven
4.	Te Matai Land Trust	Cr Bailey
5.	Matiti Urupa	Cr Wilson
6.	Australian forestry slash regulation	Cr Wilson

6.	Cr Peter Beaven Notice of Motion: Technical and Administrative Support for the Regional Planning Committee
	Councillor Beaven moved his notice of motion, seconded by Councillor Dick, being: That the Hawke’s Bay Regional Council accepts Councillor Peter Beaven’s Notice of Motion, being that all advice and reports prepared for Regional Planning Committee purposes using HBRC funds or resources will be made available to all RPC members. ACCEPTED
	Councillor Beaven explained the background to and rationale for his notice of motion, which was followed by discussions traversing: agreement that all members of RPC should be receiving the same information and advice – as any information provided to councillors is always also provided to the tangata whenua members
RC92/18	Resolution That all advice and reports prepared for Regional Planning Committee purposes using HBRC funds or resources will be made available to all RPC members, including any advice and reports provided by the tangata whenua advisors. Beaven/Dick CARRIED

Setting of the Rates for the 2018-19 Financial Year

Jessica Ellerm introduced the item, with discussions covering:

· Reduction of the Upper Tukituki Scheme rates by $40k and the rationale for that decision

· Definition of difference between Uniform Annual Charge (same fixed charge for everyone) and General Rate (based on land value)

· Wording on the Rates newsletter that goes out with the invoices in relation to incentive to receive rates invoices by email

RC93/18

Resolutions

That Hawke’s Bay Regional Council:

1. Agrees that the decisions to be made on the setting and assessing of rates cover information in the Funding Impact Statement for the 2018-19 year as included in the 2018-28 Long Term Plan as required by Sections 93 and 95 of the Local Government Act 2002.

2. Resolves the setting of rates for the 2018-19 financial year and sets the following rates under the Local Government (Rating) Act 2002, on rating units in the region for the financial year commencing on 1 July 2018 and ending on 30 June 2019. These rates are set in accordance with the relevant provisions of the 2018-28 Long Term Plan and Funding Impact Statement for the 2018-19 financial year.

2.1. A general rate is set under sections 13, and 131 of the Local Government (Rating) Act 2002 on land value as set out following.

2.2. A uniform annual general charge is set per separately used or inhabited part of a rating unit under section 15(1)(b) of the Local Government (Rating) Act 2002 as set following.

2.3. The differential targeted rates are set under sections 16,17 & 18 of the Local Government (Rating) Act 2002 as set out following, including:

2.3.1. Subsidised Public Transport

2.3.2. Heretaunga Plains Flood Control Scheme

2.3.3. Upper Tukituki Catchment Control Scheme

2.3.4. Central & Southern Area Rivers & Streams

2.3.5. Wairoa River and Streams Scheme

2.3.6. Various Stream and Drainage Schemes

2.3.7. Sustainable Homes – Financial Assistance

2.3.8. Sustainable Home Scheme

2.3.9. Economic Development

2.4. The following uniform targeted rates are set under section 16 & 17 of the Local Government (Rating) Act 2002 as set out following:

2.4.1. Plant Pest Strategy

2.4.2. Regional Animal Pest Management Strategy

2.4.3. Sustainable Land Management

2.4.4. Pest Control – Forestry

2.4.5. Coastal Hazard

2.4.6. CDEM- Emergency Management

3. Agrees that the due date for payment of rates as set by the Hawke’s Bay Regional Council for the financial year commencing 1 July 2018 and ending on 30 June 2019 be 1 October 2018.

4. Agrees that, under sections 57 and 58(1)(a) of the Local Government (Rating) Act 2002, a fixed 10% penalty will be applied to unpaid current rates as at 1 February 2019 and shall be calculated by multiplying the outstanding rates by 10% and then adding that penalty sum to the amount outstanding as at 1 February 2019.

5. Agrees that the rates set for the financial year commencing on 1 July 2018 and ending on 30 June 2019, as set out in Attachment 1, are inclusive of GST.

6. Agrees that in the rating resolution for the next financial year from 1 July 2019 to 30 June 2020 Council intends to resolve to apply a further fixed 10% penalty to all unpaid rates as at the latter of 1 July 2019 or the date that is five working days after the date on which the resolution is passed; and that the penalty shall be calculated by multiplying the outstanding rates (including penalties) by 10% and then adding that penalty sum to the amount outstanding.

Bailey/Belford

CARRIED

1. 2018-19 Funding Impact Statement

2.1. A general rate and 2.2. A uniform annual general charge

2.3. The differential targeted rates and 2.4. The uniform targeted rates

Financial Report for 12 Months ended 30 June 2018 Including Adoption of the Draft 2017-18 Annual Report for Audit

Jessica Ellerm introduced the item, with discussions traversing:

· End of year result $14,000 favourable against the reforecast budgets, which accounted for approximately $300k for the additional resource for responding to the Clive-Ngaruroro Water Conservation Order

· Tangoio Soil Conservation Reserve accounting treatments

· Legal advice provided on accuracy/legality of Rates resolutions viewed as insurance

· Employee entitlements and leave with increasing workloads

· Council report on CCO still subject to revision and updating and will include recent changes to the company’s governance structure

· Request for the inclusion of RPC tangata whenua remuneration and clear separation of Port staff salaries from salaries of HBRC staff

· Consolidated accounts, Port special purpose accounts to 30 June, HBRIC and Port valuations, and updated information to be provided to the 19 September Finance, Audit and Risk Sub-committee

· Potential increased flood protection levels to 500 years still under investigation

· Financial assets and returns

Suggested that the report on Māori contributions to decision-making be extended to include information on TANK representation on the stakeholder group and costs associated as well as including the money invested in the area of staff appointments

RC94/18

Resolutions

That Council:

1. Receives and notes the “Financial Report for 12 months ended 30 June 2018 including Adoption of the Draft 2017-18 Annual Report for Audit” staff report.

2. Confirms the Annual Report is required under Section 98 of the Local Government Act 2002, and requires that Council exercises its discretion and makes decisions on the related issues.

3. Adopts the Draft Annual Report for the period 1 July 2017 to 30 June 2018, subject to any adjustments required by Council, for the purposes of audit, with a view to Council adopting the final report at its meeting on 24 October 2018.

4. Resolves that $111,000 profit on external work undertaken by Council's Operations Group during the year ended 30 June 2018 be transferred to Council’s cash operating balances available to fund general funded operating expenditure and that $30,000 is retained by the Operations Group as retained earnings.

Kirton/Wilson

CARRIED

Affixing of 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.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 194

DP 11967

CT D1/84

- Agreement for Sale and Purchase

1.1.2 Lot 2

DP 12772

CT E1/772

- Agreement for Sale and Purchase

1.1.3 Lot 6

DP 4318

CT 54/229

- Transfer

1.1.4 Lot 244

DP 6421

CT E2/1437

- Transfer

1.1.5 Lot 5

DP 13037

CT E2/1159

- Agreement for Sale and Purchase

4249

4250

4251

4252

4253

3 August 2018

9 August 2018

15 August 2018

1.2

1.21 J. Dreyer

(Delegations under the Maritime Transport Amendment Act 1994 (Section 33G(a))

4248

25 July 2018

James Palmer advised that the Maritime Transport Act delegation on the register is for a senior member of the Rocketlab staff.

RC95/18

Resolutions

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 that Council can exercise its discretion under Sections 79(1)(a) and 82(3) of the Local Government Act 2002 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. Confirms the action to affix the Common Seal.

Wilson/Beaven

CARRIED

10.

Local Government Members (2018-19) (Local Authorities) Determination 2018

Manton Collings introduced the item, which is the usual annual update received from the Remuneration Authority and noting changes from previous policy. Further discussions covered:

· Remuneration difference between a councillor with extra duties (e.g. Committee Chair) and one without

· Different approaches by other councils, and how their ‘extra duties’ pool is divided up

· Cycle of determinations is annually, with the proposed remuneration structure for the beginning of the 2019 triennium to come to Council in July - August 2019 for recommendation to the new council.

RC96/18

Resolution

That the Hawke’s Bay Regional Council receives and notes the “Local Government Members (2018-19) (Local Authorities) Determination 2018” report.

Wilson/Kirton

CARRIED

11.

Report from 7 August Māori Committee

Mike Mohi introduced the item, elaborating on discussions at the meeting and highlighting:

· A strategy to increase Māori-voter participation and discussions about elected representation on Council

· The TANK change process from the perspective of tangata whenua involved on the stakeholder group

· Hawea Park extension progressing as a celebration of the history of the Karamu area, jointly with the four associated marae

RC97/18

Resolution

That the Hawke’s Bay Regional Council receives and notes the “Report from 7 August Māori Committee meeting”.

Wilson/Graham

CARRIED

12.

Significant HBRC Staff Projects and Activities Through September 2018

Discussions and queries covered:

· Clarity of what’s being referenced and where the activity is taking place, e.g. numbers 18 and 29 in the table

· Status of the Consent application for Tyne Street drain along with a request for a staff update

· Implementation of Integrated Catchment Management group’s focus currently on recruitment and moving staff to Wairoa and CHB offices and request for progress on implementation of the programme to be more visible to councillors

· Progress on the Future Farming Trust to be provided to 5 September Environment and Services Committee meeting

· Hawea Park Trust in relation to joint land ownership is being progressed

· Query in relation to 42 and whether the party that did not reach agreement is significant.

· Equipment being purchased for Predator Free programmes

RC98/18

Resolution

That Council receives and notes the Significant HBRC Staff Projects and Activities through August 2018 report.

Barker/Bailey

CARRIED

13.

Discussion of Items Not on the Agenda

Item	Topic	Raised by
1.	Napier-Wairoa Rail Reestablishment of line by Kiwirail proceeding well with intention to start freight movements by early December	Cr Dick
2.	Attended the Pekapeka book launch and it was very worthwhile Donations /sponsors naming policy and query whether Council has a policy on signage, for example Bostock NZ sign on Karamu Stream restoration	Cr Hewitt
3.	HPUDS Yet to be a meeting of the HPUDS implementation committee and enquiring about whether any meetings are planned	Cr Beaven
4.	Felt privileged to attend Te Matai marae planting of manuka on an area that was ravaged by fire in 2016-17	Cr Bailey
5.	Matiti Urupa on the Wairoa River being eroded by Wairoa River and attended a hui about a programme to relocate the urupa and repatriate those buried there, including some mass graves, acknowledging sterling work of Joyce-Anne Raihania and the high esteem in which she is held by the hapu	Cr Wilson
6.	Australian forestry slash regulation – the regulation in Australia is far better developed and more stringent than in NZ. Other parts of the world do this really well and technology exists so suggests the discussions about solutions should be rebooted by HBRC. Suggestion that a seminar be held to further discussions about solutions.	Cr Wilson
7	Mike Mohi acknowledged the passing of Heitia Hiha, previous Chair of the Māori Committee and an outstanding statesman in Māoridom and community leader	Mr Mohi

Secretarial note: There was discussion around the recommendations to, as provided for by the Local Government Official Information and Meetings Act, and reasons why agenda items 14, 15 and 16 should be held while the public is excluded.

14.

Confirmation of Public Excluded Minutes of the Regional Council Meeting Held on 25 July 2018

RC99/18

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 Meeting held on 27 June 2018

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.

Potential Port Transaction Approach

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)

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.

Wilson/Barker

CARRIED

15.

Napier Port Capital Structure

RC100/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 15 Napier Port Capital Structure 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 Structure

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) Carl Blanchard and John Dixon (PWC) remain in attendance for this item as subject matter experts and advisors.

Wilson/Barker

For: Dick, Hewitt, Beaven, Barker, Wilson, Kirton, Graham

Against: Bailey, Belford

CARRIED

16.

Napier Port Project Update

RC101/18

Resolutions

1. That Council excludes the public from this section of the meeting, being Agenda Item 16 Napier Port Project Update 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 Project Update	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.

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

Wilson/Barker

For: Dick, Hewitt, Beaven, Barker, Wilson, Kirton, Graham

Against: Bailey, Belford

CARRIED

The meeting went into public excluded session at 12.10pm and out of public excluded session at 3.30pm

Closure:

There being no further business the Chairman declared the meeting closed at 3.30pm on Wednesday 29 August 2018.

Signed as a true and correct record.

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