Agenda of Regional Council Meeting - Wednesday, 16 November 2022

Hawke’s Bay Regional Council

16 November 2022

Subject: Proposed HBRC Governance structure for the 2022-2025 Triennium

Reason for Report

1. This item presents options for Council to consider for adoption of its Governance Structure for the 2022-2025 triennium and provides the means for Council to appoint members and Chairs to the committees established as part of the structure.

Officers’ Recommendations

2. Staff recommend that Council adopts the proposed model which retains centralised decision-making and includes specialist and joint committees delegated to make specific decisions within strict parameters set by their Terms of Reference as well as recommendations to the Regional Council for significant decisions.

3. Staff further recommend that Council adopts Option B (detailed following) to conduct the elections of committee chairs and deputy chairs due to its simplicity and because historically there have not been more than two nominees for any of the committee chair positions.

Executive Summary

4. Under s30 of Schedule 7 of the Local Government Act 2002 (LGA), the Council may appoint committees, sub-committees and other subordinate decision-making bodies that it considers appropriate, and joint committees with another local authority or other public bodies by agreement.

5. Council can, at any stage, review its committee structure to ensure that it is appropriate and operating as intended.

6. Committees are deemed to be discharged (with the exception of the Regional Planning Committee and the HB Civil Defence Emergency Management Group Joint Committee) following the triennial election of a new council, unless resolved otherwise by the previous council. As a result, one of the first tasks of the new triennium is for Council to agree its governance structure. This includes the number, name, terms of reference and membership of each committee.

7. Council’s governance structure must give effect to the principles of good governance set out in the section 39 of the LGA and enable it to effectively discharge its responsibilities under various Acts. In particular, the Hawke’s Bay Regional Council is required by statute to have:

7.1. the Regional Planning Committee in accordance with the Hawke’s Bay Regional Planning Committee Act 2015

7.2. the Hawke’s Bay Civil Defence Emergency Group Joint Committee in accordance with the Civil Defence Emergency Management Act (2002) section 12

7.3. the Regional Transport Committee as required by the Land Transport Management Act 2003.

8. The governance structure adopted last triennium is considered largely fit for purpose, so it is proposed that Council adopt a similar structure with minor changes to streamline decision-making processes for efficient use of governors’ and staff time.

9. This proposed structure includes two committees of the whole, six or seven specialist committees, and potentially five joint committees.

10. The biggest changes proposed to the governance structure from the previous term are to:

10.1. Establish the Audit and Risk Committee (ARC) as a committee, reporting directly to Council with a reduced meeting cycle of six monthly and with a clarified focus on risks including financial risk.

10.2. A dedicated seat for a Ngati Kahungunu Iwi Board member on the Māori Committee and update the Terms of Reference

10.3. Reconsider the establishment and delegations of the Hearings Committee

10.4. Establish a new Climate Action Joint Committee to be administered by Hawke’s Bay Regional Council

10.5. Establish a new Future Development Strategy Joint Committee to be administered by Hastings District Council on an interim basis.

Committees of the whole

Environment and Integrated Catchments Committee (EICC)

11. This is a long-standing committee covering the operational functions on a catchment or place-based basis. Last term meetings were held every second month.

12. Traditionally, EICC has been a committee of the whole with one appointed member each from the Māori Committee taiwhenua representatives and, more recently, RPC tangata whenua representatives, both with voting rights.

13. Among other things EICC is responsible for considering the state and condition of the environment, the effectiveness of council services such as flood protection, soil conversation, pest control, environmental protection initiatives, navigational safety, open spaces and responses to emerging and significant environmental issues including climate change and water security.

14. It is proposed that the EICC meets quarterly in line with other council committees.

15. Council is asked to adopt the proposed TOR attached with the meeting frequency the only change from the previous term and appoint the Chair and Deputy Chair.

Corporate and Strategic (C&S)

16. This is also a long-standing committee of council, responsible for considering, among other things, quarterly financial and non-financial organisational performance reporting including HBRIC and HB Tourism, the effectiveness of Council’s resource consent, compliance and enforcement activities, and recommending the adoption of the Annual Plan and Annual Report to Council.

17. Last term C&S meetings were held quarterly, aligned to financial and operational performance reporting timeframes. C&S has traditionally been a committee of the whole with one appointed member each from the Māori Committee taiwhenua representatives and more recently RPC tangata whenua PSGE representatives, both with voting rights.

18. Council is asked to adopt the proposed ToR attached (unchanged from 2019-22) and appoint the chair and deputy chair.

Specialist committees

19. There are six specialist committees proposed, being:

19.1. Audit and Risk Committee (ARC)

19.2. Māori Committee

19.3. Regional Planning Committee (RPC)

19.4. Tenders Committee

19.5. Regional Transport Committee (RTC)

19.6. Hearings Committee

19.7. All Governors Forum (although not a schedule 7 committee)

Audit and Risk Committee

20. Last term the Finance, Audit and Risk Sub-committee was established as a sub-committee of C&S, with meetings held quarterly to enable recommendations through to the C&S and then on to Council.

21. This term it is proposed that the Audit and Risk Committee (ARC) is established, reporting directly to Council and with a reduced meeting cycle of six monthly to reflect the financial auditing and risk management reporting cycles.

22. By making this a committee rather than a sub-committee of C&S, it addresses the problem of issues being considered three times with the final decision being twice removed from the meeting at which the detailed information was presented and considered. This approach is intended to streamline decision-making.

23. The proposed Terms of Reference have been amended to clarify the different functions of ARC and C&S. The C&S will review ongoing financial performance and financial decisions and ARC’s role will be to manage financial risk, i.e. investment/treasury related risk measures within the Treasury and Investment policies. As well, ARC will continue to oversee the scope and outcomes of the external audit review of the financial statements (Annual Report and findings).

24. The proposed membership of ARC is:

24.1. Up to four elected members

24.2. One independent appointee.

25. Council may appoint to committees or sub-committees, people who are not members of the Council if, in the opinion of the Council, those people have the skills, attributes or knowledge that will assist the work of the committee or sub-committee

26. Council could also consider appointing the independent member as the Chair, which is consistent with the Office of the Auditor General’s best practice guidance. This is possible without changing the TOR.

27. Council is asked to adopt the proposed TOR (attached), to appoint the ARC councillor members, and appoint the Chair if Council is of the view that this role should be provided by one of the councillor members.

28. In addition, Council is asked to either reappoint the independent member from the previous term, or instruct staff to initiate a recruitment process for a new independent member.

Māori Committee

29. HBRC has had a representative group of Ngāti Kahungunu taiwhenua as its Māori Committee since 1991; one of the first councils in New Zealand to do so. This ensured that that the voices of hapū, marae, and whānau were heard on environmental activities and woven into HBRC work programmes.

30. In previous terms, the Committee consisted of 12 members, three from each of the four taiwhenua within the Hawke’s Bay regional boundaries plus three councillors. Last term the Committee met every second month.

31. The proposed Terms of Reference for the Māori Committee are attached. These are based on recommendations made by the previous Māori Committee on 7 September 2022. A key change to the TOR is the recommendation to include a NKII board member on the Committee. A more minor change is the addition of the ‘purpose’ clause for consistency with other TOR. The content of the purpose clause has been copied from the Māori Committee’s 2020 Charter.

32. It is proposed that the Māori Committee reduce its frequency to quarterly in line with other specialist committees and in recognition that Māori Committee members are expected to participate in the All Governors wānanga. In a similar manner, RPC will meet less frequently, only when required to make decisions.

33. The proposed TOR also contains two ‘either/or’ options regarding the appointment of the Chair and the maximum number of Councillors.

34. Previously only Taiwhenua appointed members were eligible to be appointed Chair of the Māori Committee. The either/or clause gives the option that any member of the Māori Committee be eligible to be Chair.

35. The TOR from the previous term stipulated that up to 3 Councillors can be appointed as members of the Māori Committee. A discussion in a previous MC hui expressed the desire for that limit to be removed, therefore we have included an either/or option for consideration.

36. These matters are being considered by the Taiwhenua members of the past Māori Committee and Māori Constituency members at a wānanga on Friday, 11 November. The outcome of this discussion will be brought to the Council meeting on 16 November to inform decision-making.

37. Council is asked to adopt the TOR and appoint elected members on the Māori Committee. In accordance with the proposed TOR the Chair is to be elected at the first meeting of the Māori Committee. The Charter is also a matter for the Māori Committee to consider and adopt at a future meeting.

Regional Planning Committee

38. The Regional Planning Committee (RPC) was established under the Hawke’s Bay Regional Planning Committee Act 2015 (HB RPC Act) for the purpose of improving tāngata whenua involvement in the development and review of the Regional Resource Management Plan and Regional Coastal Environment Plan (documents prepared in accordance with the RMA). It is a permanent committee of Council.

39. The TOR attached was adopted by Council in the previous triennium, however has not been endorsed by the Post Settlement Governance Entities (PSGEs) as required under the HBRPC Act. Therefore the RPC has been operating under the 2014 TOR. Following Council’s re-adoption, the 2019 TOR will be re-circulated to the PSGEs for written agreement.

40. An outstanding issue is how to manage the requirement for equal membership of elected members and tangata whenua appointees. This arises from the increase in elected members from 9 to 11 this term. Even if Tuhoi come to the table there will still be uneven numbers as the maximum number of TW appointees under the HBRPC Act is 10. A paper outlining options for how this can be resolved will be brought to a future Council meeting.

41. Council is asked to appoint the Co-Chair and Deputy Co-Chair and reconfirm the TOR as an appointing body as required by the HBRPC Act.

Tenders Committee

42. The purpose of this committee is to consider and accept tenders which exceed the delegated authority of the Chief Executive and consider and decide on exemptions to Council’s Contracts and Tenders Policy.

43. It is proposed that the Tenders Committee membership remains the same as past triennia, being the Council Chair and Deputy Chair, and the chairs of the C&S and EICC committees, and that it continues to meet on an as required basis.

44. Council is asked to adopt the proposed TOR attached and re-establish the Committee with no changes from the previous term.

Regional Transport Committee

45. This committee is required under the Land Transport Management Act 2003 (LTMA). The LTMA prescribes minimum membership requirements and that the two Regional Council members are appointed as Chair and Deputy Chair.

46. Prior to the end of the last triennium, the Regional Transport Committee agreed to include a non-voting member to represent active transport on the Committee. How that member is appointed is a matter for the Committee to resolve at a later date.

47. Council is asked to adopt the attached TOR and appoint its two representatives as the Chair and Deputy Chair.

Hearings Committee

48. The Council has, for many years, had a Hearings Committee that was delegated by Council the functions, powers and duties to hear and make decisions pursuant to a range of sections under the Resource Management Act as well as powers under the Biosecurity Act and Local Government Act.

49. The membership includes up to five elected “RMA Making Good Decisions” accredited Members of Council and up to four “RMA Making Good Decisions” accredited members of the Māori Committee and/or Regional Planning Committee (RPC) as nominated by the Chair of those Committees.

50. Last term, there were five Hearing Committee meetings. All meetings held by the Committee were to appoint Commissioners to a hearing panel. The Hearings Committee did not meet to hear any consent applications or appeals etc.

51. There is a streamlined process within the TOR which allows for the Chair of the Hearings Committee and the Chair of the Council to appoint hearing commissioners. Staff favour this approach and seek to emphasise this approach so the Hearings Committee would rarely be convened. This would ideally be the first method of appointment and should result in a faster and cheaper process for consent applicants.

52. Tangata Whenua members will continue to be the first option for appointment onto hearing panels, from the pool of accredited MC and RPC members, where they have no conflict of interest.

53. An alternative may be to dissolve the Hearings Committee and provide a delegation to the CE or staff to appoint commissioners to a Hearing Panel from a pool of Council-approved commissioners on a case by case basis. This option could be looked at further if there is interest, allowing time for consultation with tangata whenua members of the Hearings Committee, and can be implemented at any time during the term.

54. Council is asked to adopt the proposed TOR (attached) and appoint the chair and deputy chair of the Hearings Committee. Feedback is also sought on whether Council want staff to pursue the alternative option noted above.

All Governors Forum

55. This collaboration between the Māori Committee, RPC tangata whenua representatives and Council was established in 2021-22 to work together to develop the Kotahi Plan. Kotahi will be the new resource management plan for Hawke’s Bay and will combine the Regional Policy Statement, Regional Resource Management Plan and Regional Coastal Environment Plan. The All Governors collaboration seeks to enhance the role of all governors in the plan development processes and promotes planning without walls.

56. While not an official committee of council, a purpose statement has been developed to formalise its purpose and meeting arrangements. The Purpose Statement will also used as an input to the Tangata Whenua Representatives Remuneration reviews currently being undertaken.

57. The collaboration does not diminish or extinguish the roles and functions of the Māori Committee, or RPC.

58. Council is asked to the adopt the proposed Purpose Statement attached for All Governors Forum.

Joint Committees

59. It is proposed to re-establish three joint committee from the previous term and establish two new joint committees, being:

59.1. Hawke’s Bay Civil Defence Emergency Management Group Joint Committee

59.2. Ahuriri Regional Park Joint Committee

59.3. Clifton to Tangoio Coastal Hazards Strategy Joint Committee

59.4. Climate Action Joint Committee (new)

59.5. Future Development Strategy Joint Committee (new).

Civil Defence Emergency Management Group Joint Committee

60. This committee is required under section 12 (1) of the Civil Defence Emergency Management Act, with membership made up of Mayors and the Regional Council Chair, and their deputies as alternates. The Regional Council is the administering authority for this Joint Committee by law.

61. Council is asked to adopt the attached TOR as proposed (subject to confirmation by the first meeting of the Joint Committee) and appoint an alternate to deputise for the Chair.

Ahuriri Regional Park Joint Committee

62. This joint committee was established in July 2022 to provide governance guidance and oversight for the development of Ahuriri Regional Park. Napier City Council is the administering authority for this Committee.

63. Council is asked to appoint its 2 councillor representatives and 1 alternate member. The attached TOR (previously adopted by Council resolution on 27 July 2022) will be considered by the first meeting of the joint committee which will then recommend the 2022-2025 TOR for adoption by each of the member organisations (Hawke’s Bay Regional Council, Mana Ahuriri Trust and Napier City Council).

Clifton to Tangoio Coastal Hazards Strategy Joint Committee

64. The Clifton to Tangoio Coastal Hazards Strategy has been running since 2014, when the Joint Committee was first established, with the Regional Council being the administering body.

65. The previous term’s unaltered Terms of Reference is attached and will be considered at the first meeting of the joint committee for amendment and then recommended to each of the partner councils for adoption.

66. Council is asked to appoint its 3 councillor representatives and 1 alternate to the Joint Committee.

Climate Action Joint Committee

67. At the Mayors and Chair meeting on 31 October 2022, it was proposed to establish a joint committee to oversee climate mitigation and adaptation work. This Committee would provide a vehicle for a coordinated response to climate change across the councils and communities of the Hawke’s Bay region. Its objective would be to collaborate on action to build organisational, community, industry and regional resilience in the face of climate change.

68. There is cross-council support at the Mayors/Chair and Chief Executive level for such a joint committee. A Techncial Advisory Group (TAG) would be required to support the Joint Committee. Each CEO would need to nominate one or more technical specialists in for example risk and/or asset management for climate adaptation, planners and transport specialists for emissions reduction.

69. It is proposed that meetings are held at least 3 times per year, and while the detailed TOR are yet to be developed specific tasks could include:

69.1. developing and adopting a Regional Emissions Reduction Plan including recommending actions to councils to include in their Long Term Plans

69.2. undertaking a Regional Climate Risk Assessment to deliver on responsibilities under the National Adaptation Plan

69.3. setting target including interim goals towards achieving carbon neutrality by 2050

69.4. monitoring regional greenhouse gas emissions (community carbon footprint) on a regular basis and reporting annually on implementation of the joint action plan

69.5. Encouraging programmes and partnerships with iwi and mana whenua to ensure that response to climate change and community resilience is equity focused

69.6. Oversee implementation of agreed joint projects, including but not limited to future proofing of regional economic development for industry to transition to lower emissions activities

69.7. Share climate change evidence and guidance to inform council work programmes and support explicit consideration of climate change impacts in decisions

69.8. Make use of available environmental, social, cultural and economic research, skills and capabilities to leverage opportunities to reduce and prepare for the impacts of climate change

69.9. Work collectively as a region to engage with Central Government, including any actions to deliver on responsibilities under the National Adaptation Plan and Emissions Reduction Plan, and to support a Just Transition for our region including accessing Central Government funding for decarbonisation where available

69.10. Promote consistent and effective leadership, advocacy, communication and engagement on climate change issues to enable collaborative action

69.11. Champion the integration of partner strategies, programmes, and plans and encourage partnerships with central and local government, health, education, youth, NGOs and business.

70. The Joint Committee’s membership is proposed to be:

70.1. Two Regional Council elected members including the HBRC Chair. The HBRC representatives would be the appointed as the Chair and Deputy Chair of the joint committee

70.2. The Mayor or designated delegate of each territorial authority within the Hawke’s Bay region

70.3. A representative appointed by the region’s PSGEs

70.4. A representative appointed by the collective of Ngāti Kahungunu taiwhenua or a Ngāti Kahungunu Board member

71. HBRC would be the administering authority for the Climate Action Joint Committee with administrative support (convening meetings, keeping minutes, etc) rovided by the Hawke’s Bay Regional Council’s Governance team, unless otherwise agreed.

72. Council is being asked to support the establishment of the Climate Action Joint Committee subject to confirmation of the TOR, and to appoint a second representative noting that the expectation is that the Regional Council Chair will be on the Joint Committee and serve as its Chair.

73. To comply with conditions for establishing a joint committee under section 30A of Schedule 7 of the LGA it is proposed the TOR to be further refined, socialised with the other members and considered by the first meeting of the Joint Committee, which will then recommend it for adoption by each of the member councils.

Future Development Strategy Joint Committee

74. Under the NPS for Urban Development, NCC, HDC and HBRC are jointly responsible for preparing and adopting a Future Development Strategy (FDS) for the Napier-Hastings urban environment. To do this, a joint council TAG has been established and it has now proposed that a Joint Committee also be established to oversee this work. Membership of the Joint Committee is proposed, at this stage, to include two representatives from each member Council and representation from Mana Ahuriri Trust, Maungaharuru Tangitu Trust, and Heretaunga Tamatea Settlement Trust.

75. Council is being asked to support the establishment in principle, with the TOR and membership to be decided at the Regional Council meeting on 14 December 2022.

Appointment of committee chairs and deputy chairs

76. The LGA prescribes the voting requirements for the election of committee chairs and deputy chairs, including that Council’s choice of voting system to be used must be determined by resolution. This means that Council needs to resolve the system of voting before the elections of the committee chairs and deputy chairs can take place.

Section 25

Voting systems for certain appointments—

(1) This clause applies to—

(a) the election . of the chairperson and deputy chairperson of a regional council; and

(b) ….

(c) the election or appointment of the chairperson and deputy chairperson of a committee; and

(2) If this clause applies, a local authority or a committee (if the local authority has so directed) must determine by resolution that a person be elected or appointed by using one of the following systems of voting:—

(a) the voting system in subclause (3) (`system A'):

(b) the voting system in subclause (4) (`system B').

77. The choices of voting system are:

System A —

77.1. has the following characteristics:—

77.1.1. there is a first round of voting for all candidates; and

77.1.2. if no candidate is successful in that round there is a second round of voting from which the candidate with the fewest votes in the first round is excluded; and

77.1.3. if no candidate is successful in the second round there is a third, and if necessary subsequent, round of voting from which, each time, the candidate with the fewest votes in the previous round is excluded; and

77.1.4. in any round of voting, if 2 or more candidates tie for the lowest number of votes, the person excluded from the next round is resolved by lot.

System B —

77.2. has the following characteristics:

77.2.1. there is only 1 round of voting; and

77.2.2. if 2 or more candidates tie for the most votes, the tie is resolved by lot.”

Voting options assessment

78. If System A is adopted the actual vote will be conducted as follows.

78.1. Nominations for the position of Chairperson will be called for, which must be supported by a seconder (being a different person). A Councillor may nominate or second themselves, and may also nominate more than one person.

78.2. Once the call for nominations results in no further nominees, nominations will be closed.

78.3. Each nominee may then be allowed up to 5 minutes to make a presentation.

78.4. The first round of voting will then be undertaken by show of hands and with only one vote per Councillor (i.e. 11 in total).

78.5. If there are three or more nominees and a majority of Councillors (i.e. 6) does not support one nominee then the candidate with the fewest votes will be excluded from the next round.

78.6. If 2 or more candidates tie for the lowest number of votes, the person excluded from the next round will be resolved by lot. In this instance the names of the tied candidates will be placed in a suitable container and the Council’s Electoral Officer will draw a name from the container and this person will be excluded from the next round of voting.

78.7. A second and further round(s) of voting will be conducted if necessary in the same way as described above.

79. If System B is adopted the actual vote will be conducted as follows.

79.1. Nominations for the position of Chairperson will be called for, which must be supported by a seconder (being a different person). A Councillor may nominate or second themselves, and may also nominate more than one person.

79.2. Once the call for nominations results in no further nominees, nominations will be closed.

79.3. Each nominee may then be allowed up to 5 minutes to make a presentation.

79.4. The only round of voting will then be undertaken by show of hands and with only one vote per Councillor (i.e. 11 in total).

79.5. If 2 candidates tie for the most votes, the tie is resolved by lot. In this instance the names of the tied candidates will be placed in a suitable container and the Council’s Electoral Officer will draw a name from the container. The candidate whose name is NOT drawn will be declared to be the committee chair/deputy chair.

Decision Making Process

80. 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:

80.1. Council is required to (LGA sch.7 cl.19(1)) hold the meetings that are necessary for the good government of its region

80.2. Council may appoint (LGA sch.7 cl. 30(1)(a)) the committees, subcommittees, and other subordinate decision-making bodies that it considers appropriate

80.3. Given the provisions above, Council can exercise its discretion and make these decisions without consulting directly with the community or others having an interest in the decision.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Proposed HBRC Governance Structure for the 2022-2025 Triennium staff report.

2. Agrees 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.

3. Resolves to adopt voting system B for the election of the committee chairs and deputy chairs as detailed in Schedule 7 Part 1 Section 25(3) of the Local Government Act 2002.

4. Establishes the following committee structure and adopts the Terms of Reference, membership, meeting frequency and Council Executive responsible for each committee as detailed following.

4.1. Environment and Integrated Catchments Committee

4.1.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.1.2. ________ nominates _________ for EICC chair, seconded by __________

4.1.3. ________ nominates _________ for EICC chair, seconded by __________

4.1.4. __ votes for ______________ and __ votes for ______________

4.1.5. Appoints _____ as EICC chair

4.1.6. ________ nominates _________ for EICC deputy chair, seconded by __________

4.1.7. ________ nominates _________ for EICC deputy chair, seconded by __________

4.1.8. __ votes for ______________ and __ votes for ______________

4.1.9. Appoints _____ as EICC deputy chair

4.2. Corporate and Strategic Committee

4.2.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.2.2. ________ nominates _________ for C&S chair, seconded by __________

4.2.3. ________ nominates _________ for C&S chair, seconded by __________

4.2.4. __ votes for ______________ and __ votes for ______________

4.2.5. Appoints _____ as C&S chair

4.2.6. ________ nominates _________ for C&S deputy chair, seconded by __________

4.2.7. ________ nominates _________ for C&Sdeputy chair, seconded by __________

4.2.8. __ votes for ______________ and __ votes for ______________

4.2.9. Appoints _____ as C&S deputy chair

4.3. Audit and Risk Committee

4.3.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.3.2. Appoints Councillors _________________, __________________, ________________ and ____________________ to the Committee

Either

4.3.3. Confirms the appointment of independent member Stephanie Maloy.

4.3.4. Instructs staff to initiate a recruitment process for the selection of an independent member of ARC, with the selection process to be undertaken by either the councillors members of ARC OR the Council Appointments Committee.

And Either

4.3.5. Confirms the appointment of the independent member, either currently Stephanie Maloy OR to be confirmed, as Committee Chairperson.

4.3.6. ________ nominates _________ for ARC chair, seconded by __________

4.3.7. ________ nominates _________ for ARC chair, seconded by __________

4.3.8. __ votes for ______________ and __ votes for ______________

4.3.9. Appoints _____ as ARC chair

4.4. Māori Committee

4.4.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.4.2. Appoints Councillors ___________, _____________ and ____________ as representatives on the Committee

4.4.3. Notes that the committee chair and deputy chair will be elected by the members of the Māori Committee at its first meeting.

4.5. Regional Planning Committee (RPC)

4.5.1. Confirms the Council’s agreement to the Terms of Reference being:

(to be inserted as attached)

4.5.2. Appoints all councillors to the committee

4.5.3. ________ nominates _________ for RPC co-chair, seconded by __________

4.5.4. ________ nominates _________ for RPC co-chair, seconded by __________

4.5.5. __ votes for ______________ and __ votes for ______________

4.5.6. Appoints _____ as RPC co-chair

4.5.7. _______ nominates _________ for RPC deputy co-chair, seconded by ________

4.5.8. _______ nominates _________ for RPC deputy co-chair, seconded by ________

4.5.9. __ votes for ______________ and __ votes for ______________

4.5.10. Appoints _____ as RPC deputy co-chair

4.5.11. Notes that the Post Settlement Governance Entity tangata whenua appointees and the tangata whenua elected co-chair and deputy co-chair for the RPC will be confirmed at the first RPC meeting scheduled 15 February 2023, if not before.

4.6. Tenders Committee

4.6.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.6.2. Confirms that the Committee membership is made up of Councillor _______ as Chairperson of the Environment and Integrated Catchments Committee, Councillor _____ as Chairperson of the Corporate and Strategic Committee, the Chair of Council, Hinewai Ormsby and Deputy Chair Council (Will Foley).

4.7. Regional Transport Committee (RTC)

4.7.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.7.2. Appoints Councillors ___________ and ______________ to the Committee

4.7.3. ________ nominates _________ for RTC chair, seconded by __________

4.7.4. ________ nominates _________ for RTC deputy chair, seconded by __________

4.7.5. Appoints _____ as RTC chair and _______ as RTC deputy chair

4.8. Hearings Committee

4.8.1. Terms of Reference being:

(to be inserted as attached, including amendments agreed)

4.8.2. Appoints Councillors ______________, _______________ and _____________ as members of the Committee

4.8.3. ______ nominates _____ for Hearings Committee chair, seconded by ________

4.8.4. ______ nominates _____ for Hearings Committee chair, seconded by ________

4.8.5. __ votes for ______________ and __ votes for ______________

4.8.6. Appoints _____ as Hearings Committee chair

4.8.7. ____ nominates _____ for Hearings Committee deputy chair, seconded by _____

4.8.8. ____ nominates _____ for Hearings Committee deputy chair, seconded by _____

4.8.9. __ votes for ______________ and __ votes for ______________

4.8.10. Appoints _____ as Hearings Committee deputy chair

4.9. All Governors Forum

4.9.1. Statement of Purpose being:

(to be inserted as attached, including amendments agreed)

4.9.2. Confirms that the All Governors Forum is comprised of all members of the Regional Planning Committee and Māori Committee.

4.10. HB Civil Defence Emergency Management Group Joint Committee

4.10.1. Terms of Reference being:

(to be inserted as attached)

4.10.2. Confirms Hinewai Ormsby, HBRC Chair, as Council’s representative on the CDEM Group Joint Committee, and Deputy Chair Will Foley as alternate.

4.11. Ahuriri Regional Park Joint Committee

4.11.1. Terms of Reference, subject to confirmation at the first meeting of the Joint Committee, being:

(to be inserted as attached)

4.11.2. Appoints Councillors ____ and ______ as HBRC’s representatives on the Joint Committee, and councillor _____ as alternate.

4.12. Clifton to Tangoio Coastal Hazards Strategy Joint Committee

4.12.1. Terms of Reference, subject to confirmation at the first meeting of the Joint Committee, being:

(to be inserted as attached)

4.12.2. Appoints Councillors ______, _____ and ______ as HBRC’s representatives on the Joint Committee, and councillor ___ as alternate.

4.13. Climate Action Joint Committee

4.13.1. Supports the establishment of the Climate Action Joint Committee subject to confirmation of the Terms of Reference.

4.13.2. Appoints Councillors Hinewai Ormsby and ________ as HBRC’s representatives on the Joint Committee.

4.14. Future Development Strategy Joint Committee

4.14.1. Supports the establishment of the Future Development Strategy Joint Committee, subject to confirmation of the Terms of Reference.

Authored by:

Katrina Brunton

Group Manager Policy & Regulation

Desiree Cull

Strategy & Governance Manager

Chris Dolley

Group Manager Asset Management

Leeanne Hooper

Team Leader Governance

Iain Maxwell

Group Manager Integrated Catchment Management

Susie Young

Group Manager Corporate Services

Approved by:

James Palmer

Chief Executive

Attachment/s

1 ⇩	proposed 2022-25 Environment and Integrated Catchments Committee Terms of Reference
2 ⇩	proposed 2022-25 Corporate and Strategic Committee Terms of Reference
3 ⇩	proposed 2022-25 Audit and Risk Committee Terms of Reference
4 ⇩	proposed 2022-25 Māori Committee Terms of Reference
5 ⇩	Regional Planning Committee Terms of Reference agreed 9 October 2019 as proposed by RPC 25Sept19
6 ⇩	proposed 2022-25 Tenders Committee Terms of Reference
7 ⇩	proposed 2022-25 Regional Transport Committee Terms of Reference
8 ⇩	proposed 2022-25 Hearings Committee Terms of Reference
9 ⇩	proposed 2022-25 All Governors Forum Purpose Statement
10 ⇩	proposed 2022-25 CDEM Group Joint Committee Terms of Reference
11 ⇩	July 2022 adopted Ahuriri Regional Park Joint Committee Terms of Reference
12 ⇩	proposed 2022-25 Clifton to Tangoio Coastal Hazards Strategy Joint Committee Terms of Reference

Hawke’s Bay Regional Council

16 November 2022

Subject: Re-establishment of the Biosecurity Working Party

Reason for Report

1. This item seeks the re-establishment of the Biosecurity Working Party (BWP) to enable it to complete the Possum Control Area partial plan review process and make its recommendations to Council for decision.

Officers’ Recommendations

2. Council officers recommend that the Biosecurity Working Party is re-established for one further meeting with the membership and Terms of Reference as described in this item.

Executive Summary

3. The Biosecurity Working Party was established to hear submissions and make recommendations to Council on proposed changes to Possum control delivery, and is a requirement of the partial plan pest review process under the Biosecurity Act 1993.

4. Following Local Government elections, the BWP was disestablished before making final recommendations after the hearing process. This paper seeks to reinstate the BWP to make final recommendations to council, including sections 71 to 74 (excluding sections 72(5)) and 100D(6)(b) of the Biosecurity Act 1991.

5. Further to the above, sections 75(1) and (2) of the Biosecurity Act 1991 require a report to be prepared on the Proposal to change Possum Control Area delivery following the hearing of submissions and make recommendations to the Regional Council for its decisions on Regional Pest Management Plan amendments.

Background

6. The Regional Council established the Biosecurity Working Party (BWP) in November 2021, and provided it with delegations to hear submissions and make recommendations to the Council on proposed changes to Possum control delivery. It was initially comprised of 5 elected Councillors, two representatives from the Māori committee and one independent advisor.

7. Since then, the BWP has completed a number of interim steps under the BSA process. The Proposal for the change was notified and subject to public consultation, and a hearing of the verbal submissions received was held in August 2022. A total of 155 submissions were received and 9 submitters heard with 4 submitter statements read out to the Hearing.

8. The BWP was discharged following the 2022 local government elections, after the hearings were held but prior to completing its delegated responsibilities (including the preparation of a recommendation report on submissions).

9. The Council is now asked to re-establish the BWP for one further meeting so that the required remaining steps under the BSA can be completed and recommendations made to Council for its final decisions.

10. Once the BWP is re-established the remaining steps of the Possum Control Area partial plan review process required by the Biosecurity Act will be able to be carried out.

Discussion

11. To maintain continuity staff consider it prudent that the BWP is re-established with the same members appointed as previously, and provided with the same delegations in order to complete the Possum Control Area partial plan review process.

12. Given the BWP have considered written submissions and heard verbal submissions, if the Regional Council now makes the decisions on those submissions it may give rise to natural justice issues as the new decision-makers were not part of the hearing process.

13. To reinstate the BWP, the Terms of Reference (ToR) will need to be amended as per the proposed 2022 version (attached).

13.1. The 2021 ToR required that 5 elected members be appointed. Due to Councillors Taylor and Foss not being re-elected, staff propose that it is amended to 3 elected members and they be those who have previously been on the BWP, being Cr Foley, Cr van Beek and Cr Lambert.

13.2. Membership of the BWP also included Mr John Simmons, an external consultant, and 2 HBRC Māori Committee representatives. It is proposed that Mr Simmons is re-appointed. Due to neither of the Māori Committee representatives being in attendance for the Submissions and Hearing neither are proposed for re-appointment.

13.3. The quorum is amended to ‘majority of members’.

Significance and Engagement Policy Assessment

14. The decision sought in this item is low under the criteria contained in council’s adopted Significance and Engagement Policy as it is only seeking to re-instate an already previously established working party to make final recommendations to Council.

Financial and Resource Implications

15. When determining the appropriate cost allocation for this programme, the Council must consider how the costs will be shared amongst:

15.1. Those people who have an interest in the plan

15.2. Those who benefit from the plan (including collective benefits), and

15.3. Those who contribute to the pest problem and who pose a risk of spreading a pest through their activities.

16. These factors have been considered as part of the development of this Proposal and will continue to be considered under section 100T of the Act when the funding split is confirmed as part of the review of the Revenue and Finance Policy. No Council decisions on new PCA budgets or any revised allocation of costs have been made. These issues will be considered and discussed with the community as part of the 2024 Long-Term Plan (LTP). The changes envisioned in this proposal are enabling, but would not be enacted until the LTP and the Revenue and Financing Policy have been reviewed.

Decision Making Process

17. 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:

17.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

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

17.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

17.4. The persons affected by this decision are those who submitted to the Proposal to change PCA delivery.

17.5. Given the nature and significance of the issue to be considered and decided, and also the persons likely to be affected by the decisions made, Council can exercise its discretion and make the decision without consulting directly with the community.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Re-establishment of the Biosecurity Working Party staff report.

2. 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 with an interest in the decision.

3. Re-establishes the Biosecurity Working Party as a sub-committee of the Regional Council with its membership comprising Councillors Will Foley, Jerf van Beek and Charles Lambert and Mr John Simmons.

4. Delegates to the Biosecurity Working Party the authority to carry out activities within its Terms of Reference including the duties, powers and functions of the Council:

4.1. Set out in sections 71 to 74 (excluding sections 72(5)) and 100D(6)(b) of the Biosecurity Act 1991

4.2. Set out in sections 75(1) and (2) of the Biosecurity Act 1991 to prepare a written report on the Proposal to change Possum Control Area delivery following the hearing of submissions and make recommendations to the Regional Council for its decisions on Regional Pest Management Plan amendments.

Authored by:

Leeanne Hooper

Team Leader Governance

Lauren Simmonds

Project Manager - Biosecurity Review

Approved by:

Iain Maxwell

Group Manager Integrated Catchment Management

Attachment/s

1 ⇩

Biosecurity Working Party Terms of Reference 2022

Hawke’s Bay Regional Council

16 November 2022

Subject: Director appointments to Hawke’s Bay Regional Investment Company and Napier Port Holdings Limited

Reason for report

1. This item outlines the means for Council to make director appointments to the Council Controlled Trading Organisations of Hawke’s Bay Regional Investment Company and Napier Port Holdings Limited in accordance with Council’s Policy on Appointment and Remuneration of Directors, as revised and adopted in April 2022.

Officers’ recommendations

2. Council officers request that Councillors wishing to be considered as Councillor Directors of HBRIC indicate such to inform the Chairperson.

3. Council officers recommend that the Council establishes the Council Appointments Committee (CAC) in accordance with the Policy on Appointment and Remuneration of Directors (the Policy) (attached) in order to initiate the process of interviewing, selecting and recommending to Council directors for the HBRIC board.

4. Councillors are asked to note the willingness of HBRIC’s current independent Chair to serve a third and final term in that role, and to consider that reappointment as a part of this appointment process.

Background

5. The Hawke’s Bay Regional Investment Company Ltd (HBRIC) is a council-controlled organisation set up to manage some of the Regional Council’s larger infrastructure investments.

6. In the last triennium HBRIC had three councillor directors and one independent director acting as Chairman and non-independent director of Napier Port Holdings Limited. HBRIC can have a maximum of eight directors.

7. During the last triennium Council expressed a preference to appoint an additional independent director following the 2022 Local Government elections.

Council Appointments Committee

8. In accordance with the Policy on Appointment and Remuneration of Directors, the Council shall establish a CAC after each triennial local body election to recommend to Council the appointment of HBRC councillor, HBRC executive (if nominated) and independent Directors to HBRIC Ltd.

9. The CAC will be comprised of four members who are not seeking appointment to the HBRIC Ltd Board. Where possible the CAC members will include the current Chair of HBRIC Ltd, two current councillors, and an external experienced director.

10. The CAC will remain appointed for the duration of the electoral term and preside over appointment decisions during that term as required.

11. The CAC will interview all Councillors expressing an interest in appointment to the HBRIC Ltd Board, including existing HBRIC Ltd Council directors retiring and offering themselves for re-appointment, and any HBRC executives duly nominated by the HBRC Chief Executive.

12. In the process of selecting directors the CAC, having consulted the HBRIC Ltd Board for its advice, will first determine the required skills, knowledge and experience which is necessary for an effective Board. In general terms, the CAC will apply similar criteria to potential candidates to those used by HBRIC Ltd in its assessment of candidates for CCTOs, namely:

12.1. Intellectual ability

12.2. Commercial experience

12.3. Understanding of governance issues

12.4. Sound judgement

12.5. High standard of personal integrity

12.6. Commitment to the principles of good corporate citizenship

12.7. Understanding of the wider interests of the publicly-accountable shareholder

12.8. Governance experience.

13. As a general principle, HBRIC Ltd will seek to appoint a person who, while meeting all of the above criteria, has particular strengths in terms of the attribute “Understanding of the wider interests of the publicly-accountable shareholder”. However, where necessary the CAC will also take into account a candidate’s potential to quickly acquire the business and financial skills, as well as his or her existing skills and experience.

14. The candidate’s skills must be relevant to the requirements of HBRIC Ltd in terms of its governance and provide, as far as possible, that there is a suitable cross-section of skills available at the board table capable of meeting the normal criteria of good governance.

15. The CAC must consider how any appointments promote diversity and inclusion, with open and transparent appointment processes.

16. The CAC may use the services of a specialist consultant in making an assessment of the suitability of candidates.

HBRIC Chairperson

17. Historically, Council’s stated preference is for the Chair to be an independent director.

18. The policy points to continuity as being valuable, and for there to be a lead-in succession process of at least one year before the retirement of the incumbent (refer to Appendix 1 of the Policy).

19. The CAC is responsible for making a recommendation to the Regional Council on the nomination of the HBRIC Ltd chairperson.

20. As per the Policy on Appointment and Remuneration of Directors, following interviews the CAC will make its final recommendations in a report to the Regional Council.

20.1. The recommendations report will be considered in the public-excluded part of the Agenda

20.2. The Council will consider the recommendations and make its decision

20.3. Public announcement of the appointments will be made as soon as practicable after the Council has made its decision.

21. Current councillor directors must resign on a date specified by the Council, no later than three months after the triennial local body elections, although they may offer themselves for re-appointment.

Strategic Fit

22. HBRIC plays an important role in the oversight of its investment portfolio, particularly Napier Port Holdings Limited.

23. Through its Statement of Intent, HBRC endorses HBRIC’s mission to optimise the financial and strategic returns to Council from its allocated investment portfolio to assist Council achieve its vision of “a healthy environment, and a resilient and prosperous community”.

Financial and Resource Implications

24. HBRIC Councillor directors are to be paid for their director duties only if they are not already remunerated for higher duties as Council committee chairs or Council Chairperson or Deputy, and in such event are to be paid for the difference between a base councillor salary and that of a Council committee Chair.

Decision Making Process

25. 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:

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

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

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

25.4. The persons affected by this decision are councillors themselves.

25.5. Given the nature of the decisions to be made, Council can exercise its discretion and make them without consulting directly with the community or others with an interest in the decisions.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Director appointments to Hawke’s Bay Regional Investment Company and Napier Port Holdings Limited staff report.

2. Agrees that the 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.

3. Establishes the Council Appointments Committee comprised of [confirm appropriate names during meeting]

4. Instructs the Council Appointments Committee to initiate the process to shortlist, interview and select preferred candidates for recommendation to Council for appointment as directors of the Hawke’s Bay Regional Investment Company Limited.

Authored by:

Tom Skerman

HBRIC Commercial Manager

Approved by:

Susie Young

Group Manager Corporate Services

Attachment/s

1 ⇩

Policy on Appointment and Remuneration of Directors

Hawke’s Bay Regional Council

16 November 2022

Subject: Councillor appointments to outside bodies

Reason for Report

1. This item provides the means for Council to make appointments to external bodies, groups and organisations that provide Council with valuable input into policy, plan and strategy development processes. Representation on external bodies may have been requested, and/or may be where Council has a financial or other interest.

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

Entity Representation

Te Komiti Muriwai o Te Whanga

3. The Ahuriri Hapū Claims Settlement Act 2021 established Te Komiti Muriwai o Te Whanga (Te Komiti). Te Komiti’s purpose and functions include preparation and approval of the Te Muriwai o Te Whanga Plan as detailed in Attachment 3.

4. Te Komiti wants to collaborate with all groups that are focused on the health and wellbeing of Te Whanganui-ā-Orotū to achieve its objectives and its management plan for the Ahuriri Estuary including the surrounding catchment area.

5. Te Komiti membership, in accordance with the Ahuriri Hapū Claims Settlement Act 2021 includes 1 member appointed by Hawke’s Bay Regional Council.

6. It is recommended that Councillor Neil Kirton is re-appointed to Te Komiti Muriwai o Te Whanga in order to provide continuity for both te Komiti and the Council.

TBfree Hawke’s Bay Committee

7. This Committee is TBfree New Zealand’s (previously known as the Animal Health Board) link to the local community. OSPRI is the parent company of TBfree, with responsibilities to eradicate Bovine TB from domestic herds in New Zealand. Their funding is sourced from Government and the dairy, beef and deer sectors.

8. This Committee provides advice on the programme for the eradication of Bovine Tuberculosis from domestic herds in Hawke’s Bay. HBRC has, in the past, worked closely with the TBfree Committee when providing vctor management services under contract to OSPRI. This is no longer the case, and for the past several years coordination with OSPRI has been largely handled at a staff level.

9. Council is, however able to appoint a political representative to the Committee if they choose to do so. It is recommended that Council considers whether or not they wish to have political representation on the TBfree HB Committee, and if so appoint one councillor representative.

Hawke’s Bay Future Farming Charitable Trust

10. The Future Farming Trust was established and funded in the Hawke’s Bay Regional Council’s 2018 Long Term Plan. HBRC's intent was to establish an independent voice to champion sustainable agriculture in Hawke's Bay. The Trust’s vision is to make Hawke’s Bay farming the pride of our entire community, and its mission to promote, inspire and celebrate profitable farming systems that enrich the environment and the community.

11. The composition of the Trust Board, as per the HB FFT Trust Deed, is a minimum of three and a maximum of nine individuals including one Council-appointed trustee. It is recommended that Councillor Will Foley is re-appointed to the HB Future Farming Charitable Trust in order to provide continuity for both the Trust and the Council.

Hawke’s Bay Tourism

12. Hawke’s Bay Tourism 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.

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

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

13.2. 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.

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

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

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

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

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

16. Council is asked to appoint one councillor to the Board of Hawke’s Bay Tourism.

Hawke’s Bay Sports Council

17. The Hawke’s Bay Sports Council is a forum of members directly involved in the provision of sport and active recreation opportunities for the people of Hawke’s Bay. It exists to ensure that those organisations with fundamental roles in the provision of sport and active recreation opportunities, engage in a collaborative, structured, transparent and strategic manner to ensure a successful regional model for sport and active recreation provision.

18. The Council meets on a quarterly basis at Sport Hawke’s Bay’s offices, and Council is asked that one councillor be appointed to the Hawke’s Bay Sports Council.

Local Government New Zealand

19. Council is a member of Local Government New Zealand (LGNZ) which is the national body representing the interests of all Local Authorities in New Zealand.

20. The Country is divided into six ‘Zones’ which meet periodically, of which HBRC belongs to Zone 3. Council’s Chairperson has traditionally represented the Council at these meetings and other Councillors may attend when relevant items of interest appear on the agenda.

21. The Chairperson also attends, as the Council’s representative, the Regional Sector Group which is a Committee of LGNZ representing all regional and unitary authorities.

22. It is necessary to formalise Council’s representation on the various bodies of Local Government New Zealand. It is recommended that the Council Chair represents the Council on the Regional Sector Group. Council may wish to nominate one or more Councillors to be a standing representative(s) at LGNZ Zone 3 meetings or seek attendees on a meeting per meeting basis.

23. There are usually four Regional Sector Group and Zone 3 meetings held each year, and one 3-4 day LGNZ conference. It has been past practise for any Councillor who wishes to attend the annual LGNZ conference to be funded to do so and it is recommended that this practice continue.

24. The Council pays $40,280 per year to LGNZ for membership fees, and travel and accommodation costs associated with elected representative meeting attendance are covered by Council as well.

25. The Council is asked to appoint one or more councillors as the Council’s representative(s) at LGNZ Zone 3 meetings.

Matariki Governance Group

26. Matariki is the over-arching governance structure for Hawke’s Bay, providing for co-governance through the Matariki Governance Group (MGG).

27. MGG provides oversight for the delivery of the Matariki Hawke’s Bay Regional Development Strategy for economic, inclusive and sustainable growth. The vision for the Strategy is “Every whānau and every household is actively engaged in and benefiting from growing a thriving Hawke’s Bay economy”.

28. Membership of MGG comprises the Mayors/Chair of councils and Chairs/Chief Executives of the region’s post settlement iwi organisations, and previously the Chair of the District Health Board. Representation from business is also being planned.

Decision Making Process

29. 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:

29.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

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

29.3. The decisions are not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

29.4. The persons affected by this decision are those bodies seeking Council representation.

29.5. Given the nature and significance of the issues to be considered and decided, and also the persons likely to have an interest in the decisions made, Council can exercise its discretion and make these decisions without consulting directly with the community.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Councillor appointments to outside bodies staff report.

3. Reappoints Councillor Neil Kirton as Council’s representative on Te Komiti Muriwai o Te Whanga.

4. Appoints Councillor ___________ as Council’s representative on the TBfree Hawke’s Bay Committee.

5. Reappoints Councillor Will Foley as Council’s representative on the Hawke’s Bay Future Farming Charitable Trust board.

6. Appoints Councillor ___________ as Council’s representative on the Board of Hawke’s Bay Tourism

7. Appoints Councillor ___________ as Council’s representative on Hawke’s Bay Sports Council

8. Appoints Councillor ___________ as Council’s representative at Local Government New Zealand Zone 3 meetings.

9. Notes that Council’s Chair, Hinewai Ormsby, is Council’s representative on the Matariki Governance Group.

Authored by:

Katrina Brunton

Group Manager Policy & Regulation

Desiree Cull

Strategy & Governance Manager

Chris Dolley

Group Manager Asset Management

Leeanne Hooper

Team Leader Governance

Susie Young

Group Manager Corporate Services

Approved by:

James Palmer

Chief Executive

Attachment/s

1 ⇩

Te Komiti Muriwai o Te Whanga

Hawke’s Bay Regional Council

16 November 2022

Subject: Councillors' remuneration and allowances

Reason for Report

1. This item provides the information necessary for Council to resolve the remuneration of councillors for the period to 30 June 2023, in accordance with the Remuneration Authority’s 2022-23 determination.

Officers’ Recommendations

2. Staff recommend that Council decides the remuneration rates for councillors in accordance with the options detailed and adopts the proposed policies for reimbursement to eligible councillors for the costs of vehicle mileage, travel time, communications and childcare incurred in the course of undertaking their Council duties.

Executive Summary

3. Each newly elected council is invited to give the Remuneration Authority recommendations (by resolution) for how its pool ($644,302) should be distributed among all councillors except the Chair. The resolutions will include a rate for base councillor remuneration (minimum $58,224) and rates for all/any positions of responsibility and must use the entire pool.

4. The authority will consider the Council’s recommendations before determining the remuneration payable to members. Once the Remuneration Authority has made its decision on Council’s proposed remuneration, the revised remuneration levels in the new determination will be backdated to the day after the appointments to positions with additional duties were made.

Background /Discussion

5. Each year the Authority determines the remuneration and allowances available for elected members.

6. In making the Determination, the RA does so in accordance with LGA Schedule 7 as follows.

7 Mandatory criteria for Remuneration Authority

(1) In determining remuneration under clause 6, the Remuneration Authority must have regard to the need to—

(a) minimise the potential for certain types of remuneration to distort the behaviour of the persons listed in clause 6(1) in relation to their positions as listed in clause 6(1); and

(b) achieve and maintain fair relativity with the levels of remuneration received elsewhere; and

(c) be fair both—

(i) to the persons whose remuneration is being determined; and

(ii) to ratepayers; and

(d) attract and retain competent persons.

(2) The criteria in subclause (1) do not prevent the Remuneration Authority from determining allowances additional to salary for attending meetings.

7. Having conducted a review, including extensive consultation, of how elected members’ remuneration is calculated, the Remuneration Authority has introduced, for this term, a revised and updated Council size index used to calculate each council’s remuneration pool and Chair/ Mayor salary.

Elected Member Remuneration

8. Previously, Council has paid higher remuneration ($8,000-10,000 per year more) to those councillors fulfilling positions with additional duties, including:

8.1. Deputy Chair of Council

8.2. Corporate and Strategic Committee Chair

8.3. Finance, Audit and Risk Sub-committee Chair

8.4. Environment and Integrated Catchments Committee Chair

8.5. Regional Transport Committee Chair

8.6. Hearings Committee Chair

8.7. Clifton to Tangoio Coastal Hazards Strategy Joint Committee Chair.

9. Payments for additional duties apply to all the positions that a member holds. For example, if the Deputy Chair also chairs a Committee, only one additional payment is made to cover all the duties.

10. For removal of doubt, participation on Joint committees and outside bodies as a Council representative has not previously been considered for additional remuneration.

11. In the interests of transparency, the remuneration for the Chairperson of Council has been set by the Remuneration Authority at $142,761. The Chair’s salary will be reduced to offset private use of the Council-provided vehicle as agreed with the Chair, and calculated in accordance with Clause 9 of the Determination.

12. The Remuneration Authority has set the Pool for Hawke’s Bay Regional Council at $644,302 per annum and the minimum councillor remuneration at $58,224 per annum.

Options for consideration

13. The options staff ask councillors to consider for distribution of the pool are structured to provide:

13.1. Option 1 - Greater equity across councillors, e.g. higher base salary and lesser additional duties ‘top up’ including HBRC Deputy Chair at same rate as a committee chair

13.2. Option 2 - More recognition of leadership roles, e.g. base salary same as set by RA and higher additional duties pay for committee chairs and HBRC Deputy Chair

13.3. Option 3 – mid-way between options 1 and 2.

Scenario 1

14. Based on 6 positions of added responsibility for:

14.1. Deputy Chair of Council

14.2. Corporate and Strategic Committee Chair

14.3. Audit and Risk Committee Chair

14.4. Environment and Integrated Catchments Committee Chair

14.5. Regional Transport Committee Chair

14.6. Hearings Committee Chair

15. This scenario assumes that:

15.1. HBRC chair and deputy chair will be the RPC co-chair and deputy co-chair

15.2. Māori Committee chair will be a Taiwhenua member, not a councillor.

Total Remuneration Pool = $644,302
Option 1	Option 2	Option 3
Base salary $61,000 pa	Base salary $58,224pa	Base salary $60,000 pa
Deputy Chair $66,717 pa	Deputy Chair $68,567 pa	Deputy Chair $67,384 pa
Committee Chair $66,717 pa	Committee Chair $68,567 pa	Committee Chair $67,384 pa

Scenario 2

16. Based on 7 positions of added responsibility for:

16.1. Deputy Chair of Council

16.2. Corporate and Strategic Committee Chair

16.3. Audit and Risk Committee Chair

16.4. Environment and Integrated Catchments Committee Chair

16.5. Regional Transport Committee Chair

16.6. Hearings Committee Chair

16.7. Māori Committee Chair or RPC Co-chair not HBRC Chair

17. This scenario assumes that either the Māori Committee chair will be a councillor or the RPC Co-chair will be a councillor other than the HBRC chair or deputy.

Total Remuneration Pool = $644,302
Option 1	Option 2	Option 3
Base salary $61,000 pa	Base salary $58,224pa	Base salary $59,500 pa
Deputy Chair $65,900 pa	Deputy Chair $67,090 pa	Deputy Chair $66,543 pa
Committee Chair $65,900 pa	Committee Chair $67,090 pa	Committee Chair $66,543 pa

18. Both scenarios have been calculated using the same ‘additional’ amount for all committee chairs and Council’s deputy chair.

19. The Remuneration Authority has provided a spreadsheet that Council staff are required to use, which calculates the remuneration levels in a way that ensures the entire remuneration pool is allocated. In addition to the spreadsheet Council’s proposal to the RA must include brief descriptions of each position of responsibility including the additional responsibilities over and above the base councillor role which covers duties, delegations, reporting obligations and the extra time involved in carrying out the additional responsibilities.

Elected Member Allowances and Expenses

20. The determination linked to this item sets out the details and conditions or criteria relating to the payment of vehicle mileage (section 11), travel time (section 12), communication (section 13) and childcare allowances (section 14). The terms, conditions and amounts included in the determination apply for the period up to 30 June 2023.

21. As a way of encouraging sustainable transport options some councils pay travel allowances for travel by public transport, micromobility vehicles (e-bikes and e-scooters) and bicycle. To consider whether to offer the payment of vehicle mileage for travel by e-bike, councillors are referred to the attached NZ Analysis of e-bike costs and advised that this is a matter of discretion for Council as neither Inland Revenue nor the Remuneration Authority have prescribed a reimbursement rate.

22. The following Communication (ICT) allowances are paid to eligible elected members to assist with the costs of equipment and technology provided by the elected member. Where Council requires members to use the following equipment the allowances below will be paid.

Item	Annual Allowance
Use of a mobile phone	$200
Mobile phone services	$500
Internet services	$800
Use of a printer	$50
TOTAL	$1550 pa

22.1. Elected Members will be limited to a total payment of $1,550 per annum.

22.2. All equipment provided by the Council continues to be the property of the Council.

22.3. Elected members have the option to have a Council mobile phone on the HBRC monthly monthly mobile phone plan. If elected members take up this option, the associated allowances ($700) will not be paid.

23. In considering whether to offer the Childcare Allowance to eligible members, staff ask councillors to:

23.1. consider circumstances where childcare allowances may be required to enable elected members to undertake their duties, rather than focus on specific individuals

23.2. Childcare allowances can be incurred by elected members at most times of a 24/7 weekly period, but most probably, would be applicable for daycare fees to allow meeting attendance, babysitting fees to allow attendance at night meetings, or casual payments for the likes of holiday programmes to enable elected members to attend meetings during those periods

23.3. The cost of childcare allowance is met from outside the governance remuneration pool available to elected members, thus requires Council to budget for this item specifically. Whilst very difficult to calculate what an annual cost to Council for acknowledging this Clause in the determination may be, staff suggest a budget in the vicinity of $20-25,000 would be sufficient depending upon the number of councillors who require this support.

24. Staff propose that Council agrees that the allowances paid to eligible councillors, in accordance with the Remuneration Authority’s Determination, are as set out in the following table.

Allowance	15 October 2022 – 30 June 2023
Mileage Allowance – petrol or diesel	$0.83 per km (first 14,000 km)
Mileage Allowance - Hybrid	$0.83 per km (first 14,000 km)
Mileage Allowance – Electric Vehicle	$0.83 per km (first 14,000 km)
Mileage Allowance – E-bike	$0.28 per km (first 14,000 km)
Mileage Allowance (after first 14,000 km)	$0.31/km petrol/diesel $0.18/km hybrid $0.10/km electric including e-bike
Threshold time on daily travel	8 hours in a 24 hour period
Travel Time Allowances	$40 per hour (after the first hour of eligible travel)
Communication (ICT) Allowance	Limited to $1,550 per year
Childcare Allowance	Limited to $6,000 per child per year

25. The Council’s Elected Members’ Expenses and Allowances Policy will be updated to reflect the decisions (resolutions) of Council and provided to the Remuneration Authority for consideration along with the remuneration proposal.

Financial and Resource Implications

26. 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 that because the payment of councillors’ remuneration and allowances is prescribed by Schedule 7 of the Act the decision-making provisions do not apply.

Decision Making Process

27. 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:

27.1. The decision does not significantly alter the service provision or affect a strategic asset, nor is it inconsistent with an existing policy or plan.

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

27.3. The decision is not significant under the criteria contained in Council’s adopted Significance and Engagement Policy.

27.4. The persons affected by this decision are elected members.

27.5. Given the nature and significance of the decisions, and also the persons likely to be affected by or have an interest in the decisions made, Council can exercise its discretion and make these without consulting directly with the community.

Recommendations

That Hawke’s Bay Regional Council:

1. Receives and considers the Councillors' remuneration and allowances staff report.

2. 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 the required decisions without conferring directly with the community.

3. Resolves that the remuneration levels to be paid to elected members, in accordance with the Local Government Members (2022/23) Determination 2022 are as follows.

3.1. $____ per annum for a councillor with no additional responsibilities

3.2. $____ per annum for each position of additional responsibility being:

3.2.1. _________________

3.2.2. _________________

3.2.3. _________________

3.2.4. _________________.

3.2.5. _________________

3.2.6. _________________

4. Agrees to that the allowances paid to eligible councillors, in accordance with the Remuneration Authority’s Determination and the criteria set therein, are:

Allowance	15 October 2022 – 30 June 2023
Mileage Allowance – petrol or diesel	$0.83 per km (first 14,000 km)
Mileage Allowance - Hybrid	$0.83 per km (first 14,000 km)
Mileage Allowance – Electric Vehicle	$0.83 per km (first 14,000 km)
Mileage Allowance – E-bike	$0.28 per km (first 14,000 km)
Mileage Allowance (after first 14,000 km)	$0.31/km petrol/diesel $0.18/km hybrid $0.10/km electric including e-bike
Threshold time on daily travel	8 hours in a 24 hour period
Travel Time Allowances	$40 per hour (after the first hour of eligible travel)
Communication (ICT) Allowance	Limited to $1,550 per year
Childcare Allowance	Limited to $6,000 per child per year

5. Adopts the HBRC 2022-2023 Elected Members’ Expenses and Allowances Policy as updated to incorporate the decisions made today and subject to confirmation by the Remuneration Authority.

Authored by:

Leeanne Hooper

Team Leader Governance

Approved by:

James Palmer

Chief Executive

Attachment/s

1 ⇩	proposed 2022-2023 Elected Members Expenses and Allowances Policy
2 ⇩	NZ analysis of e-bike costs

1	2022 proposed new HBRC Standing Orders		Under Separate Cover
2	LGNZ 2022 Guide to standing orders		Under Separate Cover