Agenda of Ordinary Meeting of Council

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

ORDER OF BUSINESS

Apologies

Nil

CONFLICTS OF INTEREST

Public forum

Announcements by the Mayor

Announcements by the Management

Confirmation of Minutes

That the Draft Minutes of the Ordinary Meeting of Council held on Wednesday, 17 May 2017 be confirmed as a true and accurate record of the meeting.

LOCAL GOVERNMENT ACT 2002

The Council resolves, in terms of Section 82 (3) of the Local Government Act 2002, that the principles set out in that section have been observed in such manner that the Napier City Council consider, in its discretion, is appropriate to make decisions on the recommendations set out in this agenda (including the Public Excluded section).

New Reports

1 Adoption of Amended Capital Plan for Inclusion in the Annual Plan 2017/18...................... 4

2 Adopting of Annual Plan 2017/18.......................................................................................... 6

3 Transitional provisions for section 17A of Local Government Act........................................ 9

4 Local Government New Zealand GST Remit Proposal....................................................... 12

5 Clifton to Tangoio Coastal Hazards Strategy Joint Committee - Draft Minutes 6 June 2017 20

Reports from Strategy and Infrastructure Committee held 31 May 2017

1 Retail Strategy...................................................................................................................... 28

2 Heritage Improvement Grant Administration Changes....................................................... 29

3 Clifton to Tangoio Coastal Hazards Strategy 2120 - Progress Update ............................. 30

4 Land legalisation - 2 Hastings Street & 12 Browning Street, Napier.................................. 31

Reports from Finance Committee held 14 June 2017

1 Funding Applications............................................................................................................ 32

2 Fees & Charges 2017/18..................................................................................................... 33

3 Section 17A Review Work Programme Plan....................................................................... 34

4 HB LASS Limited - Statement of Intent............................................................................... 35

5 HB Museums Trust Statement of Intent 2017 - 19.............................................................. 36

6 Hawke's Bay Airport Limited - Statement of Intent.............................................................. 37

Reports from Community Services Committee held 14 June 2017

1 Taradale Community Rooms Refurbishment Proposal....................................................... 38

Reports from Audit and Risk Committee held 15 June 2017

1 Tax update........................................................................................................................... 40

2 Update on Water Risk.......................................................................................................... 42

Reports Under Delegated Authority

1 Requests for official information ......................................................................................... 43

2 Resource Consents issued under delegated authority....................................................... 55

3 Tenders Let.......................................................................................................................... 59

4 Documents Executed Under Seal ...................................................................................... 61

Public Excluded ........................................................................................................................ 62

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

New Reports

1. Adoption of Amended Capital Plan for Inclusion in the Annual Plan 2017/18

*Type of Report:*	Enter Significance of Report
*Legal Reference:*	Enter Legal Reference
*Document ID:*	373607
*Reporting Officer/s & Unit:*	Caroline Thomson, Chief Financial Officer

1.1 Purpose of Report

To adopt the amended Capital Plan for inclusion in the Napier City Council Annual Plan 2017/18.

Officer’s Recommendation

That Council

a. Resolve that the amended Capital Plan be adopted and included in the Napier City Council Annual Plan 2017/18.

MAYOR’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

1.2 Background Summary

The Capital Plan has been amended to include an additional capital item of $502,000 (1% of rates) relating to costs associated with changing industry expectation around public water supplies following the Havelock North Government Inquiry. Napier City Council is planning additional focus on its potable water supply. This will include:

· Creation of a new role being Drinking Water Quality Manager who will complement the existing three waters team but have a single focus on potable water matters.

· Additional water testing including the provision for additional water age testing, fund the shift to enumerated e-Coli testing and additional water quality testing over the business as usual level

· Funding for additional maintenance tasks

· Fund a number of capital improvements to reduce risk of contamination to the water supply network.eg shifting bore headworks above ground

Napier City Council expects a number of recommendations from Stage 2 of the Havelock North Enquiry will require improvements to how drinking water supplies are managed in NZ. We want to be ready for these changes and ensure we have learnt from the experiences of others to ensure a safe drinking water supply for our community.

1.3 Issues

The amendment to the Capital Plan (outlined above) has resulted in a further 1% increase to rates bringing the total rates increase for 2017/18 to 4.9%. This is lower than the proposed rates increase in the Long Term Plan of 5.0%.

1.4 Significance and Consultation

As the total rates increase for the 2017/18 annual plan is below the 5% threshold identified in the Long Term Plan, this matter is not considered significant under Council's Significance and Engagement Policy, and therefore does not need to be consulted on.

1.5 Implications

Financial

The capital plan for the 2017/18 Annual Plan includes projects that have transferred from 2016/17. The total proposed spend for the eight years of the capital programme is $321,872,000 with $51,260,000 budgeted to be spent in 2017/18.

Social & Policy

Not applicable

Risk

Not applicable

1.6 Attachments

Nil

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

2. Adopting of Annual Plan 2017/18

*Type of Report:*	Procedural
*Legal Reference:*	Local Government Act 2002
*Document ID:*	371021
*Reporting Officer/s & Unit:*	Adele Henderson, Director Corporate Services

2.1 Purpose of Report

To adopt the 2017/18 Annual Plan in accordance with the Local Government Act 2002.

Officer’s Recommendation

That Council

a. Resolve that the Napier City Council Annual Plan 2017/18 be received.

b. Adopt the Annual Plan 2017/18 subject to any minor changes or recommendations from Council on the water related issue.

MAYOR’S RECOMMENDATION

That the officer’s recommendation be adopted.

2.2 Background Summary

Council decided that a full formal consultation process was not required due to there being no significant changes from what was proposed in the Long Term Plan for the 2017/18 year.

To mitigate any public perception that Council were not providing a forum for the community to discuss their requests for income or their concerns, Council at its meeting on 5 April 2017 approved:

o Increasing the Community Grant fund by $50,000 to accommodate the type of requests that would normally be received through the Annual Plan process

o Providing a Council project fund ($200k) for requests, that will be available during the year

In accordance with Council’s Significance and Engagement Policy consultation for the 2017/18 Annual Plan was at Level 1: Inform. This decision is in line with the requirements of the LGA.

Council has informed the public by making available the Draft Annual Plan 2017/18 on the Council website.

For 2017/18 the rate increase is 4.9%. This is lower than the proposed rates increase in the Long Term Plan of 5.0%.

Of the rates increase for 2017/18 approximately $500k or 1 percent of rates is for drinking water related work and is subject to Council ratification.

The Annual Plan 2017/18 document is included as Attachment A.

2.3 Issues

The Audit and Risk Committee, at its meeting on 15 June 2017, recommended to Council that the Napier City Council Prospective Financial Statements to 30 June 2018 be approved subject to any minor changes or recommendations from Council on the water related increase.

2.4 Significance and Consultation

Not applicable

2.5 Implications

Financial

Council management have completed an in depth review of the capital programme taking into account the progress for projects planned for the current year 2016/17 that will not be completed by 30 June 2017. These projects have been added back to the eight years of the capital programme. Further smoothing was then done to maintain the sustainability of this adjusted programme. The capital plan for the 2017/18 Annual Plan includes projects that have transferred from 2016/17. The total proposed spend for the eight years of the capital programme is $321,872,000 with $51,260,000 budgeted to be spent in 2017/18.

Social & Policy

Not applicable

Risk

Napier City Council received the Detailed Seismic Assessment report on 21 June 2017 on the Civic and Library Buildings. These reports were commissioned in advance of the proposed building upgrade.

Under the Building Act’s Earthquake Prone Building legislation, a seismic rating (% National Building Standard (‘NBS’)) is assigned to a building. This rating compares its performance to that of a new building of similar size, make-up and form, in the event of an extreme seismic event. Strata Group Consulting Engineers undertook the assessment and found the Civic Building to be at 10% NBS and the Library Building to be at 15% NBS.

Council had previously identified funding in the Long Term Plan 2015-25 of $7.5m to upgrade the council offices and to undertake any seismic upgrade requirements during that time.

Although Council have up to 7.5 years to undertake the seismic upgrades, in the best interests of staff and the community, Council will be relocating staff to alternative premises to facilitate and expedite the upgrade process. As it has been determined that Civic Building strengthening requirements are not cost effective, further consultation with the public will be undertaken in the coming months to present options for the development or potential use of the Civic Building site.

There will be unplanned costs associated with the move and costs of potential leases and/or rental, moving, and the potential to be located in more than one site. Funding will initially be sourced from the building upgrade project. However, there is a risk that additional funding may be required to cover redevelopment costs and to address the seismic upgrade issues. Once these costs have been developed, full consultation on any funding variance will be included as part of the Long Term Plan 2018-28.

2.6 Attachments

a Napier City Council Annual Plan 2017/18 - final (Under Separate Cover) ⇨

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

3. Transitional provisions for section 17A of Local Government Act

*Type of Report:*	Legal and Operational
*Legal Reference:*	Local Government Act 2002
*Document ID:*	372046
*Reporting Officer/s & Unit:*	Rachael Horton, Manager Business Excellence & Transformation

3.1 Purpose of Report

The purpose of the report is to update Council on compliance with the transitional provision for section 17A service reviews, under the Local Government Act.

Officer’s Recommendation

That Council:

a. Note that Napier City Council has complied with the transitional provision requiring councils to review all services by 8 August 2017, as set out in Clause 2, Schedule 1AA of the Local Government Act.

b. Note that section 17A service delivery reviews will continue on a prioritised basis as already reported to Council at the Finance Committee meeting on 14 June [refer report 356245: Section 17A Review Work Programme Plan].

MAYOR’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

3.2 Legal requirements of section 17A

In 2014, changes to legislation were made with the introduction of section 17A of the Local Government Act (LGA), which placed an obligation on local authorities to routinely review their services for cost effectiveness.

Clause 2, Schedule 1AA of the Local Government Act (LGA) set out a transitional provision for councils to complete its first reviews within 3 years of the enactment of the amendment. The deadline for first reviews is 8 August 2017.

Both section 17A and Clause 2, Schedule 1AA are subject to a statutory exception. Section 17A(3)(b) provides for the situation where the potential benefits of a review do not justify the cost of undertaking the review.

3.2 Compliance with the legal requirements of section 17A.

In 2015, a poll to amalgamate all five Councils in the region was voted down with approximately 80% of Napier residents voting against amalgamation. The poll demonstrated a high level of satisfaction with Napier City Council’s (NCC) current service provision.

During this time, it was determined that there was no cost benefit in undertaking reviews given the significant change being proposed. This decision complies with the exception provided in section 17A(3)(b) of the LGA.

Following the poll, NCC commenced a review of all council activities as part of an organisation-wide structure review to ensure the appropriate delivery of current and future services. The review focused on the effectiveness and efficiency of NCC’s staffing structure.

As part of the review process, the Chief Executive, together with the Senior Leadership Team, considered NCC’s current service delivery arrangements, and at a high level, alternative options for service delivery. It was determined that retaining the status quo was the best option at the time, especially given the high level of public satisfaction with NCC’s current governance, funding and service delivery model.

To ensure the continued delivery of cost effective services to the community, significant changes were made to the governance and management structures, and roles and responsibilities within business units.

As previously reported to Council, in addition to the organisation structure review, a number of activity-specific reviews were undertaken where it was identified that improvements to the governance, funding or service delivery arrangements were likely. The reviews are listed in the following table:

· Waste Futures	· Joint project with Hastings for the treatment of waste in the region
· Internal Audit Services	· Regional collaboration for procurement of services
· Lagoon Farm	· Review of service delivery model
· Cleaning Services	· Consolidation of council services
· After Hours Call Services	· Review of service delivery, resulting in contract service with Palmerston North City Council
· Shared web services	· Provision of services to four councils
· Shared HR services	· Provision of services to Wairoa Council
· Economic Development resourcing	· Shared resourcing with Central Hawkes Bay Council
· Skate park facilities	· Service delivery moved to in-house model
· Faraday Centre	· Review of service provision

Given the level of change following the structure review, the Chief Executive was satisfied that the cost of further reviews before the transitional deadline of 8 August 2017 could not be justified. This decision complies with the exception provided in section 17A(3)(b) of the LGA.

It is our view that NCC has now fully complied with the transitional provision set out in Clause 2, Schedule 1AA of the LGA.

3.3 17A reviews going forward

As reported to Council previously, we have put in place a three-year programme of reviews to consider our current service delivery arrangements in detail. Three of these reviews have commenced – waste minimisation, transport, and community housing. The waste minimisation and transport reviews are being conducted jointly with Hastings District Council.

3.4 Implications

Financial

None

Social & Policy

None

Risk

None

3.5 Options

Not applicable

3.6 Attachments

Nil

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

4. Local Government New Zealand GST Remit Proposal

*Type of Report:*	Procedural
*Legal Reference:*	N/A
*Document ID:*	359080
*Reporting Officer/s & Unit:*	Bill Dalton, Mayor

4.1 Purpose of Report

To obtain Council support for a GST Remit being proposed by Gisborne District Council for the 2017 Annual General Meeting of Local Government New Zealand (LGNZ) to be held on 25 July 2017.

MAYOR’S RECOMMENDATION

That Council:

a. Receive the report;

b. Formally support the GST Remit being submitted to Local Government New Zealand for consideration at the 2017 Annual General Meeting

4.2 Background Summary

Many of the public amenities provided by local government – such as public toilets, roads, walkways and cycleways, free wi-fi at the library and parks and reserves – are primarily paid for by ratepayers.

The free provision of these amenities contributes to the wellbeing of our residents, but they also help to make the visitor experience to New Zealand regions a positive one.

Tourism is widely regarded as a generator of economic growth for the region and the country. However it is apparent that the main benefactors of tourism are private businesses and service providers.

Gisborne District Council has put forward a funding proposal solution for tourist infrastructure that they believe is sustainable and fairer for everyone. They propose that a proportion of the 15% Goods and Service Tax (GST) paid by everyone, including visitors, be returned to the region of purchase so that Councils can use this money to pay for the servicing of visitor infrastructure.

This proposal is one step towards adopting a strategic and coordinated approach to investment in regional tourism growth. It is relevant to local government as a whole and has the potential to benefit the New Zealand economy.

4.3 Issues

The remit is proposed to the Annual General Meeting of Local government New Zealand. It is necessary for the remit to receive the support of five councils to proceed any further; a number of other Councils are currently considering their support for the same remit.

4.4 Significance and Consultation

N/A

4.5 Implications

Financial

The financial implications of submitting the proposed remit is not significant.

Social & Policy

N/A

Risk

N/A

4.6 Options

Council can choose whether or not to support the remit going forward to the LGNZ AGM.

It is not possible to review the remit as it is being considered by other councils as it is currently written. It would not be possible to get formal support from other councils for any changes prior to the deadline for submission of remits.

4.7 Development of Preferred Option

It is recommended that Napier City Council formally support the GST Remit being submitted to Local Government New Zealand for consideration at the 2017 Annual General Meeting

4.8 Attachments

a Gisborne District Council - Proposed GST Remit report for decision ⇩

b LGNZ 2017 AGM Remits Paper ⇩

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

o		17-212
Title:	Proposed GST Remit
Section:	o Chief Executive's Office
Prepared by:	o Meng Foon (Mayor)
Meeting Date:	o 20 April 2016
o

o ☐ Legal ☐ Financial þ Significance = low

Report to FUTURE TAIRAWHITI for decision

· SUMMARY

The purpose of this report is to confirm support from Council to seek a GST remit that can be invested in public infrastructure as a way to sustain tourism in the region.

Local Government New Zealand (LGNZ) have invited member authorities to submit proposed remits for consideration at their Annual General Meeting (AGM) to be held on 25 July 2017.

My proposal for a sustainable funding solution for tourist infrastructure that is fairer for everyone involves a proportion of the 15% Goods and Service Tax (GST) paid by everyone, including visitors, as soon as they buy goods or services be returned to the region of purchase so that Councils can use this money to pay for the servicing of visitor infrastructure.

The decisions or matters in this report are considered to be of low significance in accordance with the Council’s Significance and Engagement Policy.

· RECOMMENDATIONS

That the Future Tairawhiti Committee:

1. Notes the contents of this report - and in particular:

2. Recommends that Council:

a) Approves the proposal to make a Remit application for GST to be returned to Councils for re-investment in visitor infrastructure; and submit it (the application) to LGNZ by 31 May 2017.

o Authorised by:

o meng sig

Meng Foon

District Mayor

o Keywords: GST, Goods and Services Tax, Regional tourism, public infrastructure, fairness, visitors, tourists, LGNZ, Remit Application

· BACKGROUND

1. Many of the public amenities in Tairāwhiti, like public toilets, roads, walkways and cycleways, free wi-fi at the library and parks and reserves have been mostly paid for by ratepayers.

2. The free provision of these amenities contribute to the wellbeing of our residents, but they also help to make the visitor experience of Tairāwhiti a positive one.

3. Tourism is widely regarded as a generator of economic growth for the region and the country. However it is apparent that the main benefactors of tourism are private businesses and service providers.

4. A sustainable funding solution for tourist infrastructure that is fairer for everyone is needed.

PROPOSAL

5. I propose that a proportion of the 15% Goods and Service Tax (GST) paid by everyone, including visitors, as soon as they buy goods or services be returned to the regions so that Councils can use this money to pay for the servicing of visitor infrastructure.

6. This will also be fairer for those residents who don't pay rates, although they may pay indirectly through their rents.

Local Government New Zealand (LGNZ) and the Remits Process

7. LGNZ are a non-governmental representative of all local government in New Zealand. They provide advocacy and policy services (amongst other things) to all 78 local, regional and unitary councils.

8. LGNZ will consider proposed remits if they are applicable on a national level and address a major strategic “issue of the moment”. The LGNZ Remit application form and LGNZ Policy on Remits are attached to this report as Appendix 1 and 2.

Next Steps

9. Should Council agree to approve this proposal, a remit application can be prepared on its behalf and reported to Council at its meeting on 18 May 2017, prior to the submission deadline of 31 May 2017.

APPENDICES

Appendix 1: LGNZ Remit Application For 2017

Appendix 2: LGNZ Remit Policy

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

5. Clifton to Tangoio Coastal Hazards Strategy Joint Committee - Draft Minutes 6 June 2017

*Type of Report:*	Enter Significance of Report
*Legal Reference:*	Enter Legal Reference
*Document ID:*	359254
*Reporting Officer/s & Unit:*	Deborah Smith, Governance Advisor

5.1 Purpose of Report

To present to Council the draft minutes of the Clifton to Tangoio Coastal Hazards Strategy Joint Committee Meeting held on 6 June 2017.

Officer’s Recommendation

That Council

a. Receive the draft minutes of the Clifton to Tangoio Coastal Hazards Strategy Joint Committee Meeting held on 6 June 2017.

MAYOR’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

5.2 Background Summary

The Clifton to Tangoio Coastal Hazards Strategy Joint Committee met on 6 June 2017.

The draft minutes of this meeting are shown at Attachment A.

5.3 Issues

No issues

5.4 Significance and Consultation

N/A

5.5 Implications

Financial

N/A

Social & Policy

N/A

Risk

N/A

5.6 Options

The options available to Council are as follows:

1. To receive the draft minutes

2. To not receive the draft minutes

5.7 Development of Preferred Option

It is recommended that the draft minutes be received.

5.8 Attachments

a Clifton to Tangoio Coastal Hazards Strategy Joint Committee draft minutes - 6 June 2017 ⇩

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

Reports from Strategy and Infrastructure Committee
held 31 May 2017

1. Retail Strategy

*Type of Report:*	Enter Significance of Report
*Legal Reference:*	Enter Legal Reference
*Document ID:*	354524
*Reporting Officer/s & Unit:*	Dean Moriarity, Team Leader Policy Planning

1.1 Purpose of Report

The purpose of this report is for Council to acknowledge its existing Retail Strategy, confirm its philosophical approach as still sound, and to authorise officers to review the strategy to ensure it remains fit for purpose for the next several years.

At the Meeting

It was noted that the existing strategy is some years old now and there has been many changes in the retail sector in that time. A number of factors would need to be considered in any review - the original strategy maintained the integrity of the CBD through careful management of the placement of larger format retail and chains and it would need to be tested as to whether there was appetite for any shift away from this approach.

In response to a question from Councillors is was noted that strong synergies are seen between the Retail Strategy and the City Vision. They are believed to be complementary in building vibrancy across Napier.

Committee's Recommendation

Councillor Jeffery / Councillor White

That Council

a. Acknowledge that the basic philosophical approach and strategic direction of the existing Retail Strategy (2003) remains fundamentally sound and

b. Authorise a review of the existing Retail Strategy, including a seminar for elected members, to ensure it remains ‘fit for purpose’ whilst noting the intention to retain the current overall strategic direction.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

2. Heritage Improvement Grant Administration Changes

*Type of Report:*	Operational and Procedural
*Legal Reference:*	N/A
*Document ID:*	350991
*Reporting Officer/s & Unit:*	Fleur Lincoln, Strategic Planning Lead

2.1 Purpose of Report

The purpose of this report is to obtain Council’s approval to redistribute Napier City Council’s Heritage Improvement Grant to the Art Deco Trust, so that it may be added to a much larger funding pool available for the restoration of Napier’s heritage.

At the Meeting

An amendment to the Officer’s recommendation was proposed at the meeting in response to the request from the Art Deco Trust that Council increase its funding contribution to $20,000 per annum. While some concern was expressed that Council not become the sole funder of work that has a more specific focus on heritage buildings than has been the case while the funding was under Council’s jurisdiction, general support was expressed for an investigation into how this increase might be funded. One proposed option was that the $10,000 heritage grant only be increased by the additional $10,000 requested by the Trust if the targeted $80,000 additional funding is sufficiently progressed at a 6 month review.

It was suggested that a Council representative might be appointed to the committee assessing the allocation of funding to contribute to this decision making and to provide a city wide perspective.

Committee's Recommendation

Councillor Wright / Councillor White

That Council:

a. Agree to disestablish the Napier City Council Heritage Improvement Grant annual fund of $10,000 per year as of 30 June 2016

b. Approve that for the 2017/18 financial year, the fund allocation be transferred to the Art Deco Trust to combine with a larger Robert McGregor Heritage Fund; and

c. Approve that an agreement to manage the administration and expectations associated with this be prepared.

d. Direct Council Officers to investigate increasing the Heritage Improvement Fund to $20,000 and report back to the Council meeting scheduled for 28 June 2017 on funding options.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

3. Clifton to Tangoio Coastal Hazards Strategy 2120 - Progress Update

*Type of Report:*	Enter Significance of Report
*Legal Reference:*	Enter Legal Reference
*Document ID:*	352640
*Reporting Officer/s & Unit:*	James Minehan, Development Planner

3.1 Purpose of Report

To inform and update Council about the progress on the Clifton to Tangoio Coastal Hazard Strategy since the last report presented to Council in June 2016 and to obtain approval of funding additional unbudgeted expenditure.

At the Meeting

A brief update was provided to the Committee on progress made under the Clifton to Tangoio Coastal Hazard Strategy and topics of particular focus currently, including concerns regarding the depositing of sand off shore (as opposed to the current consented deposite zones close to Westshore) by the Port of Napier which is believed would have ramifications for Westshore. It was noted that reports commissioned by the Port differ greatly to the findings of historical investigations into the ramifications of this scenario, but the committee have not had to the opportunity to review the Port papers.

A minor amendment was made at the meeting to Part B of the Committee’s recommendation.

Committee's Recommendation – AMENDED

Councillors Dallimore / Boag

That Council:

a. Receives the Officer’s Report Clifton to Tangoio Coastal Hazards Strategy 2120 – Progress Update.

b. Receives the following reports adopted by the Clifton to Tangoio Coastal Hazards Strategy Joint Committee (28 February 2017):

- Clifton to Tangoio Coastal Hazards Strategy 2120: Coastal Hazard Assessment, Tonkin & Taylor, May 2016 (Attachment A).

- Clifton to Tangoio Coastal Hazards Strategy 2120: Coastal Risk Assessment Tonkin & Taylor, May 2016 (Attachment B)

- Stage Two Report: Decision Making Framework, Mitchell Daysh, February 2017, (Attachment C)

c. Endorses the updated Terms of Reference (Attachment D) adopted by the Clifton to Tangoio Coastal Hazards Strategy Joint Committee (5 December 2016).

d. Notes that the forecast project costs have now been incurred and that funding of $110,000 will be sourced from year end budgets.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

4. Land legalisation - 2 Hastings Street & 12 Browning Street, Napier

*Type of Report:*	Legal
*Legal Reference:*	Public Works Act 1981
*Document ID:*	352620
*Reporting Officer/s & Unit:*	Bryan Faulknor, Manager Property Jenny Martin, Property and Facilities Officer

4.1 Purpose of Report

To obtain Council approval, pursuant to Section 114 of the Public Works Act 1981 to declare the land in the Schedule to be road.

At the Meeting

No discussion was held.

Committee's Recommendation

Councillor Jeffery / Councillor Brosnan

That Council

a. Consents, in accordance with Section 114 of the Public Works Act 1981, to the land described in the Schedule hereto to be declared road and vested in the Napier City Council.

SCHEDULE

Hawke’s Bay Land District – Napier City

· Area (ha)	· Legal Description	· Certificate of Title
· 0.0001	· Lot 8 DP 6356	· HB 56/57
· 0.0002	· Lot 9 DP 6356	· HB 56/59

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

Reports from Finance Committee
held 14 June 2017

1. Funding Applications

*Type of Report:*	Operational
*Legal Reference:*	Local Government Act 2002
*Document ID:*	351363
*Reporting Officer/s & Unit:*	Belinda McLeod, Community Funding Advisor

1.1 Purpose of Report

To seek approval to apply for external funding to purchase two all-terrain wheelchairs for community use on the foreshore and inline hockey rink boards for Bay Skate.

At the Meeting

There was no discussion on this item.

Committee's Recommendation

Councillors Wright / Brosnan

That Council:

a. Approve that applications for external funding are made to purchase of two all-terrain wheelchairs.

b. Approve that applications for external funding are made to purchase inline hockey rink boards for Bay Skate.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

2. Fees & Charges 2017/18

*Type of Report:*	Operational
*Legal Reference:*	Local Government Act 2002
*Reporting Officer/s & Unit:*	Caroline Thomson, Chief Financial Officer

2.1 Purpose of Report

To approve Fees and Charges for the year commencing 1 July 2017.

At the Meeting

In response to questions from Councillors, it was clarified that:

· On page 58 of the agenda, the MTG Film Admission “concession” is for senior citizens and community services card holders; this will be specified in the fees and charges schedule.

It was noted that there is some perception in the community that our facilities are quite expensive for community groups to hire and people are often surprised when they see the actual costs which much lower than they had expected. It was suggested that better communication of pricing be advertised.

Committee's Recommendation

Councillors Price / Tapine

That Council

a. Adopt the Schedule of Fees and Charges for 2017/18.

Note that once the Schedule of Fees and Charges for 2017/18 has been adopted, it will form part of the supporting information for the 2017/18 Annual Plan.

CARRIED

Committee's Recommendation

Councillors Taylor / Brosnan

That Council

b. Resolve that a DECISION OF COUNCIL is required urgently to allow for notification of the Schedule in advance of it becoming effective on 1 July 2017.

CARRIED

Committee's Recommendation

Councillors Wright / McGrath

c. This will require the following resolution to be passed before the decision of Council is taken: That, in terms of Section 82 (3) of the Local Government Act 2002. That the principles set out in that section have been observed in such manner that the Napier City Council considers, in its discretion, is appropriate to make decisions on the recommendation.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

3. Section 17A Review Work Programme Plan

*Type of Report:*	Legal and Operational
*Legal Reference:*	Local Government Act 2002
*Document ID:*	356245
*Reporting Officer/s & Unit:*	Rachael Horton, Manager Business Excellence & Transformation

3.1 Purpose of Report

The purpose of this paper provide Council with an update on the progress of the Local Government Act (2002) Section 17A service delivery reviews

At the Meeting

In response to questions from Councillors, it was clarified that:

· Section 17a reviews are focussed on current services.

· The priority level of reviews incorporates the cost of the activity and any proposed changes to the levels of service.

· Where possible, opportunities to work with other local Councils on reviews will be identified via HBLASS – for example a review of transportation may be undertaken jointly with Hastings District Council.

· The review of security has yet to be scoped but is likely to include items such as uplift of money, alarm monitoring and so on. It would not include community security as this is not a current activity.

· The intention is to take a wider view on the reviews, meeting our legislative requirements as well as aligning our activities with our strategic goals.

Committee's Recommendation

Councillors Hague / White

That Council

a. Note that Local Government Act Section (2002) 17A of the Local Government Act places an obligation on local authorities to routinely review their services for cost effectiveness.

b. Note the timeframe for the reviews Napier City Council will undertake.

c. Endorse the proposed schedule of Section 17A reviews.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

Reports from Community Services Committee
held 14 June 2017

1. Taradale Community Rooms Refurbishment Proposal

*Type of Report:*	Operational
*Legal Reference:*	N/A
*Document ID:*	341015
*Reporting Officer/s & Unit:*	Natasha Carswell, Manager Community Strategies

1.1 Purpose of Report

To seek Council’s approval to continue to use the Taradale Community Rooms, once refurbished, to accommodate community groups, with the building to be used as transitionary or permanent accommodation for the Napier Community Hub and to investigate the potential for the rooms becoming a multi-use community centre in the future.

At the Meeting

A significant amount of discussion was had on this item. It was clarified that the decision to refurbish the Taradale Community Rooms has already been made by Council and this report is specifically related to their usage.

In response to questions from Councillors it was clarified that:

· Although typically a refurbishment would be targeted towards the needs of a primary tenant, the Rooms are in need of work now and it is hoped that the renovation will foster greater interest in the space. The proposal is to create a flexible internal space, which will be reconfigurable as required.

· There has been confirmation from four community groups that they are happy to move to the Taradale space and remain there on a longer term basis. These are non-customer facing businesses so the move would not have any negative impacts on their service provision.

· The Citizens Advice Bureau would prefer to remain in the CBD so options would need to be negotiated for this.

· A better fit for the tea Museum had been found at the Plunket Rooms; the proprietor Mr Hadfield was very excited about this space.

It was generally agreed that Napier Community Hub tenants should not be given priority to the Taradale Rooms as there may be other organisations interested in the Taradale space for longer term occupancies. However it was confirmed that an amendment to this end would not negatively impact on community hub tenants as where there was significant interest in moving to Taradale this could be provided for.

Committee's Recommendation

Councillors Taylor / Jeffery

That Council

a. Approve that the Taradale Community Rooms continue to accommodate the community groups, and

b. Note that further investigation will be undertaken to determine how the rooms could be run as a multi-use community centre in the future.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

Reports from Audit and Risk Committee
held 15 June 2017

1. Tax update

*Type of Report:*	Legal and Operational
*Legal Reference:*	N/A
*Document ID:*	359225
*Reporting Officer/s & Unit:*	Caroline Thomson, Chief Financial Officer

1.1 Purpose of Report

To provide the Committee with an update on tax matters relating to Council.

At the Meeting

Mr Phil Fisher, PriceWaterhouseCooper (PwC), presented to the Committee on current tax issues. The following points were touched on during the report:

· PwC have been working with Council to develop a tax risk framework including identified mitigations and controls for any identified areas of risk.

· Particular tax areas of interest for Councils are PAYE, FBT, GST and non-resident payments.

· It is important that the Human Resources division of a Council are conversant with tax requirements as much of the implications for tax are personnel related.

· All areas of the business should communicate early with the Finance team so that tax matters are addressed early; the team are there to facilitate business in ways that ensure Council meets its requirements.

· IRD is working through a staged tax transformation:

o Stage 1 – GST transformation. Effected February 2017 with the implementation of MyIR.

o Stage 2 – Streamlining business income taxes

o Stage 3 – Social policy improvements

o Stage 4 – Tax administration, including actions to meet the legislated changes to payroll due for enactment in April 2019.

· Currently Council’s tax requirements are reviewed 3 yearly; a report will be brought to the Audit and Risk Committee from the next review due in 2018.

· It was agreed that an annual report from PWC would be brought to the Audit and Risk Committee on advice given relating to tax over the year as well as any tax-related matters expected to arise over the coming year and national/ international context that may impact on this.

· It was noted that despite encouragement from departments such as the State Services Sector and the Ministry of Business, Innovation and Employment to take a collaborative approach to projects and works, tax implications including GST payments may actually form a barrier to this. It is unclear whether the Inland Revenue Department will look at ways that tax structures could better facilitate collaboration.

Councillor Hague joined the meeting during this item at 1.19pm.

Committee's Recommendation

Councillor Wise / Mr Foster

That the Committee

a. Receive the presentation by Phil Fisher on tax matters.

CARRIED

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

Reports Under Delegated Authority

1. Requests for official information

*Type of Report:*	Information
*Legal Reference:*	Local Government Official Information and Meetings Act 1987
*Document ID:*	371554
*Reporting Officer/s & Unit:*	Jane McLoughlin, Team Leader Governance

1.1 Purpose of Report

To report on requests made under the Local Government Official Information and Meetings Act 1987 (LGOIMA) for the period ending 6 June 2017.

Officer’s Recommendation

That Council:

a. Receive the report Requests for official information received for the period ending 19 June 2017.

b. Note the release of information on the War Memorial Hall from public excluded meetings including 30 June 2015, Extraordinary meeting of council; 12 August 2015, Council meeting; and 27 January 2016, City Services Committee.

MAYOR’S RECOMMENDATION

That the officer’s recommendation be adopted.

Background summary

As per the Napier City Council Standing Orders, Section 17.5 Release of information from public excluded session, the Chief Executive is able to release information from a public excluded meeting where it is determine the grounds to withhold the information no longer exist. The Chief Executive must then inform the Council of the nature of the information released.

In this reporting period, a response Council provided to a LGOIMA request included information released from public excluded meetings.

The request was: “date when Council made the decision to upgrade the War Memorial Hall and agendas and minutes from that council meeting”.

Any information directly relevant to the request was compiled, including from public excluded meetings. The grounds for withholding the information from public excluded meetings were deemed as no longer relevant, and therefore, the information from the meeting papers of the public excluded meetings relevant to the request were released.

The sections relating to the War Memorial Hall in the following public excluded agendas and minutes have been released in the LGOIMA response:

30 June 2015, Extraordinary Meeting of Council

12 August 2015, Council meeting

27 January 2016, City Services Committee.

1.2 Attachments

a Requests for Official Information received for the period ending 19 June 2017 ⇩

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

3. Tenders Let

*Type of Report:*	Information
*Legal Reference:*	Local Government Act 2002
*Document ID:*	371553
*Reporting Officer/s & Unit:*	Sarah Ashworth, PA to Chief Executive

3.1 Purpose of Report

To report on tenders let under delegated authority from 16 May 2017 to 09 June 2017.

Officer’s Recommendation

That Council:

Receive the report on tenders let under delegated authority from 16 May 2017 to 9 June 2017.

MAYOR’S RECOMMENDATION

That the officer’s recommendation be adopted.

Contracts over $100,000 let under authority of the Chief Executive or Director Infrastructure Services:

Professional Services Contract 1148 – Area Wide Pavement Treatments 2016/2017

Two tenders were received ranging from $281,620.000 to $314,526.30

The Engineer’s estimate was $321,880.00

One tender was failed on track record.

It was recommended that the tender from Higgins Contractors be accepted in the sum of $314,526.30. This recommendation was approved.

Contract 1134 – County Drain Pathway Stage 1

Four tenders were received ranging from $228,592.40 to $326,748.90.

The Engineer’s estimate was $280,000.00.

It was recommended that the tender from Ian Dick Concrete Contractors be accepted in the sum of $228,592.40. This recommendation was approved.

Contract 1147 – Expressway Link Pathway

Three tenders were received ranging from $142,683.00 to $198,115.00.

The Engineer’s estimate was $217,000.00.

One tender was failed on track record.

It was recommended that the tender from Mantell-Harding be accepted in the sum of $160,761.15. This recommendation was approved.

Contract 1150 – Husheer/Lipton Place & Tannery Road Pathway Bridges

Six companies were invited to tender and two tenders were received ranging from $89,000 to $189,790.00.

One company only priced for one bridge so were excluded from further consideration.

It was recommended that the tender from Lattey Group Ltd be accepted in the sum of $189,790. This recommendation was approved.

Contract 1105 – Steps and Ramps Improvements 2016/2017

After advertising this contract publically on Tenderlink and receiving no tenders, it was sent out again to just three contractors.

One tender was received for $241,254.54.

The Engineer’s estimate was $209,550.00.

It was recommended that the tender from Fulton Hogan be accepted in the sum of $241,254.54.

This recommendation was approved.

3.2 Attachments

Nil

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

4. Documents Executed Under Seal

*Type of Report:*	Information
*Legal Reference:*	Local Government Act 2002
*Document ID:*	371556
*Reporting Officer/s & Unit:*	Sarah Ashworth, PA to Chief Executive

4.1 Purpose of Report

To provide the Schedule of Documents Executed Under Seal from 18 May 2017 to 16 June 2017.

Officer’s Recommendation

That Council:

Receive the report of Documents executed under seal from 18 May 2017 to 16 June 2017.

MAYOR’S RECOMMENDATION

That the officer’s recommendation be adopted.

Date	Document	Presenting Officer
16.05.17	Resource Consent Planner Warrant – Local Government Act	Eric Le Roux
16.05.17	Resource Consent Planner Warrant – Resource Management Act	Eric Le Roux
16.05.17	Snr Resource Consent Planner Warrant - Local Government Act	Eric Le Roux
16.05.17	Snr Resource Consent Planner Warrant - Resource Management Act	Eric Le Roux
18.05.17	Easement in gross Symons Close Kent Terrace	Colin Hunt
19.05.17	Lease of Reserve to HB Seafarers Welfare Society Inc.	Jenny Martin
26.05.17	Consent to road being stopped	Jenny Martin
26.05.17	Client A&E	Jenny martin
07.06.17	Transfer of Encumbrance	Colin Hunt

4.2 Attachments

Nil

Ordinary Meeting of Council – 28 June 2017 – Open Agenda

PUBLIC EXCLUDED ITEMS

That the public be excluded from the following parts of the proceedings of this meeting, namely:

New Reports

1. Decisions made by Grants Allocation subcommittee

Reports from Finance Committee held 14 June 2017

1. Hawke's Bay Airport Limited - Report to Shareholders

2. Bad Debt Write Off

Reports from Audit and Risk Committee held 15 June 2017

1. Napier City Council Annual Plan 2017/18

2. Risk Management Report May 2017

3. HB LASS Provision of Internal Audit Services

4. Audit NZ - Interim Management Report

5. Napier City Council Investment and Debt Report

6. Health and Safety Report 31 May 2017

7. Insurance Update

The general subject of each matter to be considered while the public was excluded, the reasons for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution were as follows:

· GENERAL SUBJECT OF · EACH MATTER TO BE CONSIDERED	· REASON FOR PASSING THIS RESOLUTION IN RELATION TO EACH MATTER · That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to:	· GROUND(S) UNDER SECTION 48(1) TO THE PASSING OF THIS RESOLUTION · 48(1)(a) That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
· New Reports
· 1. Decisions made by Grants Allocation subcommittee	· 7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· Reports from Finance Committee held 14 June 2017
· 1. Hawke's Bay Airport Limited - Report to Shareholders	· 7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 2. Bad Debt Write Off	· 7(2)(a) Protect the privacy of natural persons, including that of a deceased person · 7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· Reports from Audit and Risk Committee held 15 June 2017
· 1. Napier City Council Annual Plan 2017/18	· 7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 2. Risk Management Report May 2017	· 7(2)(e) Avoid prejudice to measures that prevent or mitigate material loss to members of the public	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 3. HB LASS Provision of Internal Audit Services	· 7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 4. Audit NZ - Interim Management Report	· 7(2)(g) Maintain legal professional privilege	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 5. Napier City Council Investment and Debt Report	· 7(2)(b)(ii) Protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 6. Health and Safety Report 31 May 2017	· 7(2)(d) Avoid prejudice to measures protecting the health and safety of members of the public	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
· 7. Insurance Update	· 7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities	· 48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

Meeting Date:	Wednesday 28 June 2017
Time:	3pm
Venue:	Main Committee Room 3rd Floor Civic Building 231 Hastings Street Napier

Council Members	The Mayor (In the Chair), Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White, Wise and Wright
Officer Responsible	Chief Executive
Administration	Governance Team