Minutes of Corporate and Strategic Committee - Wednesday, 17 November 2021

1. Welcome/Karakia /Apologies/Notices

The Chair, Cr Neil Kirton, welcomed everyone to the meeting and asked Te Pou Whakarae, Pieri Munro to offer a mihi for Peter Paku who sadly passed away on Friday, 12 November 2021.

Peter’s contributions and his work over the years was acknowledged and a karakia offered.

Resolution

CS35/21 That the apology for absence from Cr Charles Lambert be accepted.

Van Beek/Barker

CARRIED

2. Conflict of Interest Declarations

Peter Eden declared an interest in Item 14 HB Tourism as a current member of the HB Māori Tourism Board.

There were no conflicts of interest declared.

3. Confirmation of Minutes of the Corporate and Strategic Committee meeting held on 18 August 2021

CS36/21

Resolution

Minutes of the Corporate and Strategic Committee meeting held on Wednesday, 18 August 2021, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Barker/Ormsby

CARRIED

Follow-ups from previous Corporate and Strategic Committee meetings

The item was taken as read.

CS37/21

Resolution

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

Barker/Ormsby

CARRIED

5.	Call for Minor Items not on the Agenda
	There were no items raised.

Hawke's Bay Economic Development Review

The Chair introduced Gus Charteris, who undertook the Stage 2 Review of investment in Business & Industry Support across the Hawke’s Bay Region.

James Palmer noted that this has been a very long journey proposed that the item is taken read.

Questions and comments noted:

· Note that it is the first time the Review report is in the public domain

· Needs to be a clear purpose in what local government support is provided to businesses and industry, particularly support for Matariki

· The Stage 2 Review recommended that local government investment should focus in areas where there is a gap and that other organisations lead support for SMEs and start-ups

· The Preferred Option recommended for a Regional Development Entity involves an estimated cost per annum of $1.706m, and a one-off CAPEX of $50,000. This represents an operational increase of $1.193m per annum across the five councils.

· Central Government funding to support Matariki RDS is $155,000 (year 1) and $130,000 (year 2)

· Councils partnered with Te Kāhui Ōhanga o Takitimu (TKO) on behalf of HB iwi/hapū and TKO has endorsed the key findings and recommendations subject to ongoing partnership and co-design of future service delivery.

· The proposed governance model includes equal co-governance across iwi/hapū, business and local government

· The recommended option and funding mechanism do not trigger consultation requirements under the LGA or Council’s Significance and Engagement Policy. Council will inform and communicate any agreed changes to the community as part of the 2022-23 Annual Plan process and an update on the process will be provided to the next Corporate and Strategic Committee meeting.

CS38/21

Resolutions

1. That the Corporate and Strategic Committee receives and considers the “Hawke's Bay Economic Development Review” staff report.

2. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional 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 or persons likely to have an interest in the decision.

2.2 Supports the Stage 2 Review recommendations for priority activities/services and the focus for ratepayer investment in business and industry support and notes that the transfer of funds will incur no extra cost to HBRC nor reduced level of service.

2.3 Supports the establishment of a regional development entity in Hawke’s Bay.

2.4 Supports the recommended funding split and notes the financial implications for the Regional Council.

2.5 Endorses councils’ partnership approach with Hawke’s Bay iwi/hapū

2.6 Agrees to accommodate the Regional Council’s funding contribution for the new entity from reprioritisation within the targeted rate funded regional development budget in the 2022-23 Annual Plan.

2.7 Notes that this effectively removes HBRC from direct delivery of business and industry development and transfers that activity to the new entity. This does not disturb HBRC’s existing relationship and funding with HB Tourism.

Foss/Taylor

Against: Kirton

CARRIED

2020-21 Compliance Annual Report

James Palmer introduced Rob Hogan, Jack Blunden, Simon Moffit and Mike Signal who presented an overview of the Compliance monitoring and enforcement activities. Highlights included:

· Staff monitored 8523 resource consents, with 93.8% of those being fully compliant

· TLA wastewater compliance improving year on year, a slight increase in drinking water non-compliance and no change for stormwater with an overall high level of investment in infrastructure upgrades across all Councils

· The majority of urban non-compliance was industrial effluent discharge consents

· Strong enforcement action was undertaken for all non-compliance

· Increase in abatement notices issued, 12 prosecutions concluded and another 5 commenced, and 86 infringement notices issued totalling $43,800 in fines

· Reduction in Pollution Hotline calls driven by reduced complaints about odours from Te Mata Mushrooms and fewer airshed burning incidents during restricted season

· Future focus includes reporting on engagement and education efforts and development of an interagency response framework for urban stormwater pollution incidents

· James Palmer acknowledged the high quality of the report and thanked the Regulation teams for their hard work throughout the year.

CS39/21

Resolutions

1. That the Corporate and Strategic Committee receives and notes the “2020-21 Compliance Annual Report” staff report.

2. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional 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 or persons likely to have an interest in the decision

2.2. Adopts the HBRC Annual Compliance Report 2020-21 for publication on the Hawke’s Bay Regional Council website.

Taylor/Ormsby

CARRIED

Possum Control Area - Partial Regional Pest Management Plan Review

Iain Maxwell introduced the item noting that this is an important step for the development of the Partial Regional Pest Management Plan Review.

Campbell Leckie and Lauren Simmonds provided an overview of the process for the Possum Control Area (PCA) review, including the Coast Benefit Analysis (CBA) and next steps. Discussions covered:

· A range of elements required through the partial plan review to meet Biosecurity Act requirements

· A Biosecurity Working Party (BWP) with delegated powers and functions under the Biosecurity Act would deliver the review and serve as a Hearing Panel for the submission process

· The cost benefit analysis indicates that the total benefit of the PCA programme is around $51 M. At an annual PCA programme cost of $3.5 M the net benefit is $21 M over a ten-year period, meeting a key test of the Biosecurity Act.

· Significant Biodiversity benefits of possum control include increased canopy cover, fruit/seed production and native bird populations, and large-scale long term possum control is a key driver of biodiversity benefits for the region

· Also drives other complementary outcomes like improved pastoral production, reduced impact on plantings and reduced risk of bovine TB

· The Chair of the Biosecurity Working Party (BWP) is to be authorised to act alone to exercise the powers and functions of the BWP for the Hearing if required, but not on any substantive decisions in terms of the proposal itself

· Considered Regional Planning Committee representation but based on Governance advice decided best fit to Māori Committee functions

· BWP will make recommendations to Council for final decisions ahead of the amended RPMP becoming operative.

CS40/21

Resolutions

1. That the Corporate and Strategic Committee receives and considers the “Possum Control Area - Partial Regional Pest Management Plan Review” staff report.

2. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional Council, acting under clause 32 of Schedule 7 of the Local Government Act 2002:

2.1. Establishes the Biosecurity Working Party with the Terms of Reference proposed.

2.2. Appoints councillors Will Foley, Jerf van Beek, Craig Foss, Charles Lambert and Jacqueline Taylor, Dr Roger Maaka and Katarina Kawana as members of the Biosecurity Working Party.

2.3. Delegates to the Biosecurity Working Party the powers, functions and duties of the Council set out in sections 71 to 74 (excluding sections 72(5)) and 100D(6)(b)) of the Biosecurity Act 1993, in respect of the Proposed Regional Pest Management Plan 2018-2038 Possum Control Area Partial Plan Review.

2.4. Delegates to the Biosecurity Working Party the powers functions and duties of the Council to hear submissions and make recommendations on the proposal to amend the Regional Pest Management Plan.

2.5. Delegates to the Biosecurity Working Party the powers, functions and duties of the Council set out in sections 75(1) and (2) of the Biosecurity Act 1993 to prepare a written report on the Regional Pest Management Plan.

2.6. Directs that the Biosecurity Working Party makes recommendations to Council as to decisions on the Regional Pest Management Plan.

2.7. Authorises the Chair of the Biosecurity Working Party acting alone to exercise any powers, functions and duties delegated in respect of the conduct of the Hearing.

2.8. Authorises the Chair of the Biosecurity Working Party to have a casting vote when there is an equality of votes when exercising any of the powers, functions and duties delegated.

2.9 Directs staff to amend the Biosecurity Working Party Terms of Reference to reference reporting dates.

Foley/Van Beek

Councillor Barker moved an amendment, seconded by Councillor Kirton to remove:

2.8. Authorises the Chair of the Biosecurity Working Party to have a casting vote when there is an equality of votes when exercising any of the powers, functions and duties delegated.

Barker/Kirton

CARRIED

The amendment was CARRIED and therefor the Substantive Motion put, being:

1. That the Corporate and Strategic Committee receives and considers the “Possum Control Area - Partial Regional Pest Management Plan Review” staff report.

2. The Corporate and Strategic Committee recommends that Hawke’s Bay Regional Council, acting under clause 32 of Schedule 7 of the Local Government Act 2002:

2.1. Establishes the Biosecurity Working Party with the Terms of Reference proposed.

2.2. Appoints councillors Will Foley, Jerf van Beek, Craig Foss, Charles Lambert and Jacqueline Taylor, Dr Roger Maaka and Katarina Kawana as members of the Biosecurity Working Party.

2.4. Delegates to the Biosecurity Working Party the powers functions and duties of the Council to hear submissions and make recommendations on the proposal to amend the Regional Pest Management Plan.

2.6. Directs that the Biosecurity Working Party makes recommendations to Council as to decisions on the Regional Pest Management Plan.

2.7. Authorises the Chair of the Biosecurity Working Party acting alone to exercise any powers, functions and duties delegated in respect of the conduct of the Hearing.

2.8. Directs staff to amend the Biosecurity Working Party Terms of Reference to reference reporting dates.

Foley/van Beek

CARRIED

Peter Eden and Apiata Tapine left the meeting at 11.11am.

Proxy for the HBRIC Ltd Annual General Meeting

The item has been taken as read.

· Query raised whether virtual attendance at the AGM, with voting rights is allowed.

CS41/21

Resolutions

That the Corporate and Strategic Committee:

1. Receives and considers the “Proxy for the HBRIC Ltd Annual General Meeting” staff report.

2. Recommends that Hawke’s Bay Regional Council:

2.2. Notes the date of the Hawke’s Bay Regional Investment Company Limited Annual General Meeting is 16 December 2021.

2.3. Appoints Councillor Will Foley to act as Council’s proxy at the Annual General Meeting of the Hawke’s Bay Regional Investment Company Limited to be held at 4:00pm on Friday, 16 December 2021, and to vote as proxy holder on behalf of the Council

2.4. Appoints Councillor Rick Barker to act as Council’s alternate.

Foss/Williams

CARRIED

The meeting adjourned at 11.16am and reconvened at 11.34am

10.

HBRIC Ltd Quarterly update

Councillor Rick Barker introduced the item which was taken as read. Discussions noted:

· Good performance with surplus of $92,000 and $27 M reduction in net asset value driven by Napier Port share price drop on revaluation

· HBRIC board progressing development of a clear capital structure and investment mandate to support the growth of the company

· FoodEast established as a registered entity in July 2021, however the proposal cannot progress under the current funding proposal and working with partners to change the design or seek additional funding

· Napier Port will report 2020-21 results to the 24 November Regional Council meeting.

CS42/21

Resolution

That the Corporate and Strategic Committee receives and notes the “HBRIC Ltd Quarterly Update”.

Barker/Foss

CARRIED

11.

Report from the Finance Audit and Risk Sub-committee meeting

Cr Craig Foss introduced the item, which was taken as read. Discussions traversed:

· Media reports on Council’s manuka honey investment raised questions around monitoring through Council’s risk framework. Note this is not part of Council’s investment portfolio and not actively monitored via Council’s Treasury functions. Investment was part of a trial principally around soil conservation to demonstrate whether or not the combination of carbon and honey returns could result in some financial upside. This investment sits within Asset Management and not run as a commercial proposition. Providing a 6% return over and above the forest’s operating costs and not considered a significant risk to Council.

Peter Eden rejoined the meeting at 11.59am

CS43/21

Resolutions

1. That the Corporate and Strategic Committee receives and notes the report from the Finance, Audit and Risk Sub-committee, including the Sub-committee recommendations, being that the Finance, Audit and Risk Sub-committee:

Audit NZ Report on Year Ended 30 June 2020

1.1. Receives and accepts the “Audit NZ Report on the Year ended 30 June 2020” and advises the Corporate and Strategic Committee accordingly.

1.2. Notes the consequences of Audit report delays on the organisation.

2020-21 Annual Report – Draft Non-Financial Results

1.3. Receives and notes the “2020-21 Annual Report – Draft Non-financial Results” staff report.

Roadsafe S17a Review

1.4. Approves the engagement of Morrison Low to undertake a Service Delivery Review of the Hawke’s Bay Regional Council’s Road Safety function.

Risk Maturity Update

1.5. Reports to the Corporate and Strategic Committee that Phases I through III of the Risk Maturity Roadmap are nearing completion, and

1.6. Reports to the Corporate and Strategic Committee that Staff, with full Executive Leadership Team endorsement and commitment, are preparing two discrete project plans to embed risk management processes and risk-based thinking into the business; this being the delivery of phase IV ‘risk intelligence’ of the risk maturity roadmap. The timeframe for implementation of phase IV of the risk maturity roadmap is estimated to be approximately two years.

Annual Enterprise Internal Audit Plan

1.7. Reports to the Corporate and Strategic Committee that the 2021-22 Annual Enterprise Internal Audit Plan has been approved and will be carried out within budget provisions made in the 2021-22 Annual Plan for this purpose.

Internal Assurance Dashboard - Corrective Actions Status Updates

1.8. Confirms that management actions undertaken or planned for the future adequately respond to the findings and recommendations of the internal audits.

1.9. Confirms that the dashboard reports provide adequate information on the progress of corrective actions and the progress of the approved Annual Internal Audit programme.

1.10. Confirms that the management actions from the HBRC Covid-19 Response Debrief Report Communication (Internal & External) finding have been completed and the finding is now closed.

1.11. Reports to the Corporate and Strategic Committee, the Sub-committee’s satisfaction that the Internal Assurance Programme Update provides adequate evidence of the adequacy of Council’s internal assurance functions and management actions undertaken or planned respond to findings and recommendations from completed internal audits.

Barker/Foss

CARRIED

12.

National Policy Statement on Urban Development - Napier-Hastings housing assessment

Gavin Ide introduced the item, which was taken as read. Discussions highlighted:

· The 3 councils (Napier City, Hastings District and HBRC) jointly commissioned Market Economics to complete the technical assessment work

· Highly technical report which will provide evidence based information for planning processes such as the Heretaunga Plains Urban Development Strategy (HPUDS) review and ultimately the District Plans

· Assessment looked at housing capacity and expected demand and supply over the next 30 years

· Summary findings and analysis indicate that NCC has sufficient housing development capacity however Hastings has a deficiency in the longer term (10-30years)

· The NPS for Urban Development directs regional councils to insert these housing bottom lines into the Regional Policy Statement as soon as practicable

· Future implications in terms of region-wide spatial planning strategies including the inclusion of environmental outcomes

· Potential for additional infrastructure and planning associated with housing demand and capacity may be addressed through the HPUDS review

· A coherent approach with TLAs will be taken to develop a Regional Spatial Plan.

CS44/21

Resolutions

That the Corporate and Strategic Committee:

1. Receives and notes the “National Policy Statement on Urban Development - Napier-Hastings Housing Assessment” staff report.

2. Notes that the Group Manager Policy and Regulation has delegation to approve insertion of housing bottom lines for the Napier-Hastings Urban Environment in the Regional Policy Statement.

van Beek/Foss

CARRIED

14.

Hawke's Bay Tourism Six-monthly Update

Hamish Saxton, HB Tourism General Manager, introduced the item, acknowledging the challenging environment tourism operates within during Covid-19. Discussions highlighted:

· Acknowledged HBRC for continued support and the additional Strategic Asset Protection Funding received from Central Government and Tourism Minister Stewart Nash.

Apiata Tapine arrived 12.38pm

· Central government investment assisted in achieving the best visitor spend results above forecasts, however not all businesses have benefited

· Following lockdowns, the HB Tourism team worked hard to promote and reinforce HB’s reputation for great experiences and superb holidaying conditions

· Opportunity to explore strengthened Māori identity and visibility in the visitor economy.

CS45/21

Resolution

That the Corporate and Strategic Committee receives and notes the “HB Tourism Six-monthly Update” report.

Foss/Taylor

CARRIED

13.

Organisational Performance Report for the period 1 July - 30 September 2021

James Palmer introduced the item which was taken as read. Discussions noted:

· Thanked the Strategy and Governance Team, Team Leaders and Budget holders across the organisation efforts to deliver this report

· Ongoing Covid-19 related challenges across NZ

· Overall employee turnover reduced last quarter

· Widespread impacts of Covid-19 including low morale, motivation and productivity in organisations hence continued focus on staff wellbeing

· Carbon Footprint section and Level of Service Measures from the 2021-31 LTP included for the first time.

CS46/21

Resolution

That the Corporate and Strategic Committee receives and notes the “Organisational Performance Report for the period 1 July – 30 September 2021”.

Barker/van Beek

CARRIED

16.

Confirmation of Public Excluded Minutes of the Corporate & Strategic Committee meeting held on 18 August 2021

CS47/21

Resolution

That the Corporate and Strategic Committee excludes the public from this section of the meeting being Confirmation of Public Excluded Minutes Agenda Item 16 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 the Public Excluded Minutes of the 19 May 2021 Corporate & Strategic Committee Meeting	s7(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.
Public Excluded Report from the Finance, Audit & Risk Sub-committee Meeting	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	The Council is specified, in the First Schedule to this Act, as a body to which the Act applies.

van Beek/Barker

CARRIED

16. Confirmation of Public Excluded Minutes of the Corporate and Strategic Committee meeting held on 18 August 2021

CS48/21

Public Excluded Minutes of the Corporate and Strategic Committee meeting held on Wednesday, 18 August 2021, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Barker/van Beek

CARRIED

CS49/21 That the meeting moves out of Public Excluded session.

van Beek/Barker

CARRIED

The meeting went into public excluded session at 1.01pm and out of public excluded session at 1.02pm.

Cr Will Foley offered a karakia to close the meeting.

Closure:

There being no further business the Chairman declared the meeting closed at 1.03pm on Wednesday, 17 November 2021.

Signed as a true and correct record.

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