Meeting of the Hawke's Bay Regional Council
Late Items
Date: Wednesday 24 March 2021
Time: 11.00am
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Venue: |
Council Chamber Hawke's Bay Regional Council 159 Dalton Street NAPIER |
Agenda
Item Subject Page
Decision Items
14. Statement of Proposal for Consultation for Adoption - New Council Controlled Trading Organisation (CCTO) 3
Decision Items (Public Excluded)
15. Chief Executive's Performance and Remuneration Review 11
Wednesday 24 March 2021
Subject: Statement of Proposal for Consultation for Adoption - New Council Controlled Trading Organisation (CCTO)
Reason for Report
1. This report asks Council to adopt the attached Statement of Proposal to establish two new Council Controlled Trading Organisations (CCTOs) to operate FoodEast.
2. The Council is required under section 56 of the Local Government Act 2002 (LGA) to undertake consultation before establishing a CCTO.
3. The Statement of Proposal has been subject to a legal review to confirm the document is fit for purpose.
Officers’ Recommendation
4. Council officers recommend that the Council adopts the Statement of Proposal to establish two new CCTOs as proposed, for public consultation.
Background
5. The need for this consultation has arisen from the decision made at the 24 February 2021 Council meeting to:
5.1. Endorse Hawke’s Bay Regional Investment Company’s intention of investing up to $4 million in FoodEast.
5.2. Initiate consultation on the formation of a new CCTO.
6. Consultation is on the establishment of the CCTOs which will own and operate the investment, not on the investment opportunity itself.
7. This Statement of Proposal has been presented to Council for adoption prior to it being through committee or workshop review due to the time constraints to meet deadlines to execute foundation documents and meet conditions precedent for funding of the investment.
Scope of the Decision
8. The recommendation in the Statement of Proposal is to establish two new CCTOs, provisionally named Limited Partnership and General Partner, to own and manage FoodEast.
9. The recommended option is based on professional advice having considered a range of options of the legal and tax structures available.
Consultation Process
10. As noted above, the establishment of a CCTO requires consultation under section 56 of the LGA. The Council has discretion under this section of the LGA to decide the form the consultation takes.
11. The key dates for the consultation are:
25 March 2021 Consultation opens
12 April 2021 Consultation closes
28 April 2021 Verbal submissions hearing
28 April 2021 Decision made by the Regional Council
12. The relatively short time frame between hearings and Council decision, is to meet deadlines to execute foundation documents and meet conditions precedent for funding.
13. The Statement of Proposal will be posted on the Council’s website as soon as practicable after it is adopted. The consultation will be advertised in Hawke’s Bay Today, posted to social media and emailed to interested and affected parties.
14. The Council will invite submissions and feedback over a period of two weeks. Submissions will then be collated, heard and the final decision to establish the CCTOs made on 28 April 2021.
15. Legal advice received considers that this consultation complies with the LGA consultation requirements in light of:
15.1. the nature of the decision (as a procedural step), and
15.2. the Council’s discretion under the LGA.
Decision Making Process
16. 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:
16.1. The decision does not significantly alter the service provision or affect a strategic asset.
16.2. The use of a consultation process is required by legislation for the potential establishment of a new Council Controlled Trading Organisation.
16.3. The decision is not inconsistent with an existing policy or plan.
That Hawke’s Bay Regional Council:
1. Receives and considers the “Statement of Proposal for Consultation for Adoption - New Council Controlled Trading Organisation (CCTO)” staff report.
2. Agrees that the decision to adopt the Statement of Proposal for consultation is in accordance with the provisions of the Local Government Act 2002 and that Council can make this decision without conferring with the community or persons likely to have an interest in the decision.
3. Adopts the Statement of Proposal as proposed.
4. Agrees the proposed Submissions and Decisions process timeframes proposed.
Authored by:
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Bronda Smith Chief Financial Officer |
Kishan Premadasa Management Accountant |
Approved by:
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Jessica Ellerm Group Manager Corporate Services |
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1⇩ |
FoodEast CCO Statement of Proposal for consultation |
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2⇩ |
FoodEast CCTO submission form |
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Wednesday 24 March 2021
Subject: Chief Executive's Performance and Remuneration Review
That Council excludes the public from this section of the meeting, being Agenda Item 15 Chief Executive's Performance and Remuneration Review 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:
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GENERAL SUBJECT OF THE ITEM TO BE CONSIDERED |
REASON FOR PASSING THIS RESOLUTION |
GROUNDS UNDER SECTION 48(1) FOR THE PASSING OF THE RESOLUTION |
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Chief Executive's Performance and Remuneration Review |
7(2)(f)(ii) The withholding of the information is necessary to maintain the effective conduct of public affairs through the protection of such members, officers, employees, and persons from improper pressure or harassment. s7(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. |
Authored by:
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Liana Monteith Manager People and Capability |
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Approved by:
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James Palmer Chief Executive |
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