Minutes of Regional Council Meeting - Wednesday, 13 December 2023

1. Welcome/Karakia/Apologies/Notices

The Chair welcomed everyone to the meeting and Councillor Charles Lambert opened with a karakia.

Resolution

RC95/23 That the apologies for absence from Tania Hopmans and Councillor Thompson Hokianga be accepted.

Ormsby/van Beek

CARRIED

2. Conflict of Interest Declarations

There were no conflicts of interest declared.

3. Confirmation of Minutes of the Regional Council meeting held on 29 November 2023

RC96/23

Resolution

Minutes of the Regional Council meeting held on Wednesday, 29 November 2023, a copy having been circulated prior to the meeting, were taken as read and confirmed as a true and correct record.

Siers/Harding

CARRIED

Call for minor items not on the Agenda

Recommendations

That Council accepts the following Minor items not on the Agenda for discussion as Item 11

Topic	Raised by
Green hydrogen for Hawke’s Bay	Cr X Harding
Prime Minister’s visit	Cr M Williams

Hawke's Bay Navigation Safety Bylaw 2023

Katrina Brunton introduced the item, which was taken as read. Discussions covered:

· Future engagement with Māori will be ongoing and continued from now rather than a specific process that commences at the initiation of the next bylaw review.

· The process for adopting a bylaw is prescribed by legislation and Council cannot delegate the making of a bylaw to a committee or sub-committee as per LGA Schedule 7 s32 Delegations (1)(b) therefore decisions on the consultation feedback are for the Council to make.

· A register for personal water craft strictly for maritime purposes, e.g. a jet-ski, is maintained to enable identification of individuals in the case of an emergency.

· Information about near misses forms a critical part of risk management associated with navigation safety as a pro-active means of identifying emerging issues. In the context of sailing regattas or organised event, the event is required to have an Event Management Plan which the Harbourmaster signs off – and this is a process which supersedes the ‘club’ having to report near misses during the event.

· A definition of motorised/powered is to be added to the bylaw, and the interchangeable use of motorised and powered is to be eliminated by using one or the other.

· For clarification, under the Maritime Transport Act s33M(1)(e) the bylaw can reserve the use of any waters for specified persons, ships, or seaplanes and the process for the bylaw to come into force includes the approval of Maritime NZ.

RC97/23

Resolutions

That Hawke’s Bay Regional Council:

1. Receives and considers the Hawke's Bay Navigation Safety Bylaw 2023 staff report in conjunction with the public submissions received and the marked-up version of the draft Bylaw.

2. Agrees with the staff analysis of submissions received and consequential amendments made to the Hawke's Bay Navigation Safety Bylaw 2023.

3. Delegates authority to the Group Manager Policy and Regulation to finalise the Hawke's Bay Navigation Safety Bylaw 2023 to incorporate the following amendments specified during deliberations, being:

3.1. to add the definition of motorised/powered and ensure only those words as defined are used throughout the bylaw.

3.2. ensure clarity in relation to the authority to create reserve areas in the absence of a bylaw.

4. Adopts the Hawke's Bay Navigation Safety Bylaw 2023 (which incorporates the amendment specified in 3.1 above) for notification.

Williams/Kirton

CARRIED

HBRC Group Statement of Investment Policies and Objectives

Nic Peet introduced the item, which was taken as read, and Scott Hamilton, Tom Skerman and Susie Young who spoke to the item. Discussions covered:

· The SIPO sits across the managed funds and provides the rules for how those investments are to be managed including return expectations (minimum 3% cash return overall).

· One key change is shift of fund allocation from 50% growth and 50% defensive to 70% growth and 30% defensive.

· Policy on responsible investment has been extended from previous version to include the principles or values expectations as aligned to the Council’s values.

· Returns from the SIPO are a minimum expectation and considered achievable. Any returns in excess (or shortfalls) of what Council requires, as budgeted in the LTP, will be accumulated into the Investment Volatility Reserve. The statement reflecting this, on SIPO page 4, will be amended for clarity before release.

· Adoption of the SIPO by Council provides what’s necessary for HBRIC to issue a Request for Proposals for investment management services for the Group.

· The HBRIC Board of Directors has been structured to deliver on the SIPO and will review the SIPO for Council’s consideration at least every 3 years.

RC98/23

Resolutions

That Hawke’s Bay Regional Council:

1. Receives and considers the HBRC Group Statement of Investment Policies and Objectives 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 likely to have an interest in the decision.

3. Adopts the HBRC Group Statement of Investment Policies and Objectives 2023 as amended as agreed.

Mackintosh/Foley

CARRIED

Report and recommendations from the Risk and Audit Committee

Susie Young introduced the item and provided an overview of the considerations at the meeting, including the Ernst & Young audit report on the 2022-2023 annual report, as well as an update on the status of insurance renewals.

RC99/23

Resolutions

That Hawke’s Bay Regional Council:

1. Receives and considers the Report and recommendations from the Risk and Audit Committee staff report.

Insurance – annual review and update

3. Notes MWLASS Infrastructure Insurance Layers update report attached.

4. Progresses with participation in the excess layer of infrastructure asset cover with MWLASS of $200m.

5. Investigates how HBRC might review and assess how alternative means of insurance may be implemented across the business.

Harding/Mackintosh

CARRIED

Issuance of Security Stock under Debenture Trust Deed

Susie Young introduced the item and explained the rationale for staff seeking the Council’s approval to enter into a new banking relationship with ANZ to be able to issue security stock for the purposes of interest rate hedging transactions, as well as how the process will work in practice.

RC100/23

Resolutions

That Hawke’s Bay Regional Council:

1. Receives and considers the Issuance of Security Stock under Debenture Trust Deed staff report.

3. Approves the new banking relationship with ANZ and the issuance of security stock under the Debenture Trust Deed as proposed.

Harding/Williams

CARRIED

Affixing of Common Seal

1. The Common Seal of the Council has been affixed to the following documents and signed by the Chair or Deputy Chair and Chief Executive or a Group Manager.

Seal No.

Date

1.1

Leasehold Land Sales

1.1.1 Lot 243

DP 11258

CT B3/577

- Agreement for Sale and Purchase

1.1.2 Lot 53

DP 11604

CT C2/563

- Agreement for Sale and Purchase

1.1.3 Lot 216

DP 6598

CT C2/336

- Agreement for Sale and Purchase

1.1.4 Lot 3

DP 13099

CT E3/139

- Agreement for Sale and Purchase

4576

4577

4578

4579

28 November 2023

1.2

Staff Warrants

1.2.1 N. Hannan

(Delegations under Soil Conservation and Rivers Control Act 1941; Land Drainage Act 1908; Civil Defence Emergency Management Act 2002 (s.86-92) and Local Government Act 2002 (s.177))

4580

4 December 2023

RC101/23

Resolutions

That Hawke’s Bay Regional Council:

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. Confirms the action to affix the Common Seal.

Ormsby/Foley

CARRIED

10.

Land Categorisation update

Dr Nic Peet introduced the item, which is one means of putting this very important information associated with the land categorisation process onto the public record. Chris Dolley highlighted:

· The land categorisation process was issued by central government to local government on 1 May 2023, for them to undertake with their communities.

· 2C* category was created by HBRC to accommodate properties with flood protection schemes damaged by the cyclone, that would be able to move to category 1 once repairs had been completed.

· The work was overseen and peer reviewed by two independent consultant engineers – Paddle Delamore and Tonkin + Taylor.

· Substantially complete now for category 3, with changes only to be made if new, compelling expert technical information that wasn’t available during the process comes to light.

RC102/23

Resolution

That Hawke’s Bay Regional Council receives and notes the Land Categorisation update staff report.

Siers/Mackintosh

CARRIED

11.

Discussion of minor items not on the Agenda

Topic

Raised by

Green hydrogen (fuel from renewable resources) for Hawke’s Bay – recent initiative under the auspices of the Regional Transport Committee and Climate Action Joint Committee investigating the potential for green hydrogen to contribute to lowering NZ’s carbon footprint by generating electricity and producing fuel from geothermal.

Cr X Harding

Prime Minister’s visit

Proud of the coherent HB regional plan including six priorities for regional recovery as partnership between the councils and mana whenua presented to the PM when he visited on 8 December.

Cr M Williams

Councillor Charles Lambert led the group in offering a karakia to close the meeting.

Closure:

There being no further business the Chair declared the meeting closed at 3.36pm on Wednesday, 13 December 2023.

Signed as a true and correct record.

Date: by HBRC resolution 31 January 2024 Chair: Hinewai Ormsby