Finance Committee

Open Agenda

 

Meeting Date:

Tuesday 16 October 2018

Time:

3.00pm

Venue:

Council Chamber
Hawke’s Bay Regional Council
159 Dalton Street
Napier

 

 

Committee Members

Councillor Wise (In the Chair), Mayor Dalton, Councillors Boag, Brosnan, Dallimore, Hague, McGrath, Price, Tapine, Taylor, White and Wright

Officer Responsible

Director Corporate Services

Administration

Governance Team

 

Next Finance Committee Meeting

Tuesday 27 November 2018

 

 


Finance Committee - 16 October 2018 - Open Agenda

ORDER OF BUSINESS

Apologies

Councillor Jeffery

Conflicts of interest

Public forum

David Kamper – Petition Onekawa Pool

Announcements by the Mayor

Announcements by the Chairperson

Announcements by the management

Confirmation of minutes

That the Minutes of the Finance Committee meeting held on Tuesday, 4 September 2018 be taken as a true and accurate record of the meeting............................................................................................. 91

Agenda items

1      Whakarire Revetment Funding Proposal......................................................................... 3

2      Capital Project Funding Bought Forward....................................................................... 11

3      Road Stopping - land corner of Geddis & Longfellow Avenue....................................... 13

4      Powerco Gas Pipeline - Grant of Easement and Concession........................................ 30

5      HB Museums Trust Annual Report................................................................................ 33  

Public excluded ............................................................................................................. 89


Finance Committee - 16 October 2018 - Open Agenda                                                                                                                                              Item 1

Agenda Items

 

1.    Whakarire Revetment Funding Proposal

Type of Report:

Legal

Legal Reference:

Local Government Act 2002

Document ID:

631017

Reporting Officer/s & Unit:

Richard Munneke, Director City Strategy

 

1.1   Purpose of Report

To consider funding options and obtain approval from Council on the public/private funding split for the Whakarire revetment.

 

Officer’s Recommendation

The Finance Committee:

a.     Approve, in principle, funding option for the revetment works at Whakarire Avenue in accordance with Section 101(3) of the Local Government Act.

b.     And that options of funding by general rate or UAGC be identified for consideration.

c.     And that consultation be undertaken as appropriate. This would comprise informal consultation on a proposed funding option as per part a above, culminating in formal consultation as part of the 2019/20 Annual Plan process.

 

 

Chairperson’s Recommendation

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

1.2   Background Summary

The Whakarire revetment proposal has had a long history. The original design of the groynes to remediate the threat of coastal erosion in this area received significant opposition from the surfing community and others. As a consequence the resource consent application received many submissions in opposition. Through mediation a new design was introduced to the submitters. The new plans included a reserve area for public access and a revetment which would hug the coastline and not intrude into the surf break as the initial design had done. Residents in the Whakarire area and other submitters including the surfing community signed off on these new plans agreeing to the revetment and the reserve areas.

While funding of the revetment had never been actively discussed with the submitters or the Whakarire Avenue residents, there was an implicit assumption at the time that the costs would be absorbed by all the city’s residents. This reflects that Napier (being a city council with relatively small rural land holdings) has not had a strong tradition of using targeted rates (N.B. current targeted rates are listed in the Long Term Plan on page 203).

Subsequent to the resource consent for the works being fully approved for construction, the regional coastal erosion work (Clifton to Tangoio Coastal Hazards Strategy) began to explore and define the beneficiaries from coastal erosion interventions to understand the link between those who benefit and those that are paying. In this way the community good and the private good is identified in particular.

Essentially this work has hypothesised that the immediate property abutting the coastal erosion will benefit significantly if work is done to halt that erosion. There is also a suggestion that there might be secondary beneficiaries, where a public space (reserve or road) lies between the property and the coastal erosion or where the local community might have added benefits of accessing the area under threat from erosion. Both of these scenarios are over and above the benefits received from doing the work by the rest of the Napier residents.

The work also identified regional and national beneficiaries. This included the Port and Airport and the region and nation as a whole. However it should be noted that these parties are difficult to realise funding from – therefore the while a percentage of benefit/ cost can be apportioned it can’t be collected using rates for example.

Council has held a workshop to discuss and explore how such a funding split (as prescribed by Section 101 (3) of the Local Government Act) would apply to Whakarire revetment. This paper presents the basic steps associated with an assessment under Section 101 (3) LGA applied to the Whakarire revetment project. Importantly once the process of identifying who are the beneficiaries and secondly how much each should pay has been apportioned, the overall impact on the community can be considered. This can include decisions around historical understandings of who pays, realistic affordable apportionment (i.e. if the direct beneficiaries are so few that cost apportionment is exorbitant, for each beneficiary) or any other relevant considerations in settling on a final funding option.

In this case, the direct beneficiaries have been identified as the 12 properties on Whakarire Avenue abutting the northern coastal edge, and a portion of Charles Street. Secondary beneficiaries have been identified in the Coastal Hazards Strategy as the Westshore community (refer to map at Attachment A).

1.3   Issues

Section 101(3) of the Local Government Act requires Council to undertake a multi-step process when making decisions that might impact on Council’s financial management.

This process involves an assessment of:

a)   Community outcomes relating to the proposal

b)   Distribution of benefits

c)   Time frame (intergenerational)

d)   Exacerbators

e)   Costs/benefits

f)    Overall impact of funding on the community

 

The final step in the process allows Council to select its funding mechanism and modify any allocations but also consider what impact the results from the steps undertaken above have on the community and affordability to pay.

a)   The community outcomes to which the funding primarily relates:

 

Community Outcomes

Achieved By

Excellence in infrastructure and public services for now and in the future.

 

 

Protecting the coast from further erosion thereby helping to sustain the coastline for future generations.

A safe and healthy city that supports community well-being.

 

 

A coastal area that the general public can safely utilise for recreational activities such as walking, fishing and surfing.

 

b)   Distribution of benefits between the whole of Napier City Council and parts of the City or individuals:

 

a)   The benefit to the wider Napier community from the revetment is the use of the beach and access to the beach.

 

b)   In addition to a) above, the Westshore community would benefit from the protection of the future value of properties within this community.

 

c)   In addition to  a) above, Individual properties along Whakarire Avenue identified as being within the current erosion risk zone stand to gain the most from the construction of the revetment. This is both in relation to maintaining their housing and property asset but also significantly increasing the value of their holding. 

 

c)   The period over which the benefits will occur

The benefits from property protection would continue in perpetuity and benefit current and future generations.

 

d)   Whether individuals or groups are the cause of the activity

Coastal erosion is a natural occurrence and is not due to the action of any specific party. However the presence of Port and its effects have been mooted as both a benefit and an exacerbator. For the purposes of cost apportionment the point is also moot as it is unlikely that a mechanism for charging the Port can be found.

Climate change is expected to have an effect on coastal erosion trends as a result of rising sea level and increased frequency and intensity of coastal storms.

 

e)   Costs and benefits, including transparency and accountability where funding one activity distinctly from others:

It is appropriate that a theoretical cost recovery split should recognise the private benefits accruing to the adjoining land owners for many generations.

The method of cost recovery should also recognise the public benefit to Napier City rate payers and the wider Hawke’s Bay community from having protected this area of the coast for future generations for the public and visitors to enjoy. This includes protection of the Charles Street asset. (Which buffers the residential area on the other side of Charles Street)

It is difficult to quantify the exact portion of benefit accruing to the private and public beneficiaries but it would be reasonable to estimate approximately 20% of the benefit lies with the wider community who gain public access to the area to carry out general recreational activities.

This assessment has established that the private benefit of this activity accrues to the private land owners in the form of property/asset protection and also to the Westshore community through improved beach accessibility and protection of future property values. This has been assessed between 20% and 30%.

 

The remainder (in excess of 50%) is attributable to the properties on Whakarire Ave adjacent to the coast (12 properties) who stand to substantially gain from protecting their asset and in turn receive higher valuations for their property asset once the erosion work is complete.

 

f)    Overall impact of allocation of funding on the community:

Council’s 2018-28 Long Term Plan includes a capital budget of $1.7m in 2019/20 for the Whakarire revetment. Resource consents costs have already been paid by the general rate.

It is clear that 12 Whakarire properties stand to gain the majority of the benefit of the revetment through asset protection in perpetuity. However, the impact of spreading the majority of the total cost across the 12 Whakarire properties immediately protected by the revetment would result in an exorbitant annual increase to their rates. Properties within the Westshore community should also contribute a portion of the total cost to reflect the benefit they would receive in the form of improved beach accessibility and protection of future property values.

The remaining 20% of the total cost would be recovered from the residents of Napier city (Public Good).

Members may wish to consider other factors such as expectation of who pays when the resource consent was initiated , reasonableness, practicality of collection and affordability to pay before settling on an appropriate allocation for each beneficiary.

 

Costs and benefits

Funding for the Whakarire revetment would be loan funded and repaid over a 25 year period. Council officers have considered the following matters in determining the terms and conditions of this loan funding:

 

·     The term of the loan should recognise the long term nature of the project, and the life of the underlying asset

 

·     The need to take into account of intergenerational equity principles

The loan would bear interest at 7% per annum. The interest rate is based on Council’s average cost of borrowing and would be reviewed annually.

The following table sets out the whole of life cost and the ongoing annual cost to be recovered for the revetment:

Whakarire revetment

Annual cost

Whole of life

Debt and interest

$146,000

$3,650,000

Maintenance

$5,000

   $125,000

TOTAL

$151,000

$3,775,000

 

Funding

The following funding mechanisms have been considered in accordance with Section 101(3):

Option 1. Spread the whole cost evenly across the entire Napier City Council rating base (UAGC)

This would equate to an annual per property charge of approximately $6.00 for every property within the Napier City Council rating base.

Under this scenario the total cost is spread equally across the community including areas which stand to gain little if any benefit. 

Option 2. The total cost of the revetment is recovered from general rates applied on a land value basis.

This option would involve recovering the total cost of the revetment through the general rate. Under this option properties with high land values will bear a greater proportion of the total cost regardless of their proximity to the coast.

Option 3a. Apportion the whole cost according to the levels of assessed benefit.

Under this option the allocation the total annual cost is split between private and public beneficiaries according to levels of perceived benefit. This could look like:

Funding split     

%

Annual cost per property

Annual cost recovered

Whole of life

Private Good – targeted rate on Whakarire properties

50%

$6,292

$75,500

$1,887,500

Private Good – targeted rate on Westshore properties

30%

$84

$45,300

$1,132,500

Public Good – general rates

20%

$1

$30,200

$755,000

TOTAL

100%

 

$151,000

$3,775,000

 

 

Option 3b. Apportion the whole cost according to the levels of assessed benefit.

However, after considering the impact on the community and affordability issues arising from the steps undertaken above, the funding split could be modified as follows:

 

 

 

Funding split     

%

Annual cost per property

Annual cost recovered

Whole of life

Private Good – targeted rate on Whakarire properties

3%

$378

$4,530

$113,250

Private Good – targeted rate on Westshore properties

22%

$61

$33,220

$830,500

Public Good – general rates

75%

$4

$113,250

$2,831,250

TOTAL

100%

 

$151,000

$3,775,000

 

1.4   Significance and Engagement

Approval of a funding option will require consultation through the 2019/20 Annual Plan. 

1.5   Implications

Financial

Council’s 2018-28 Long Term Plan includes a capital budget of $1.7m in 2019/20 for the Whakarire revetment

Social & Policy

N/A

Risk

N/A

1.6   Development of Preferred Option

That in accordance with Section 101(3) of the Local Government Act the Council approve a funding option for the revetment works at Whakarire Avenue and that options of funding by general rate or UAGC be identified for consideration and consultation.

 

1.7   Attachments

a     Map showing Westshore area

b     Map showing Whakarire properties   


Finance Committee - 16 October 2018 - Attachments

 

Item 1

Attachments a

 


Finance Committee - 16 October 2018 - Attachments

 

Item 1

Attachments b

 


Finance Committee - 16 October 2018 - Open Agenda                                                                                                                                              Item 2

2.    Capital Project Funding Bought Forward

Type of Report:

Procedural

Legal Reference:

N/A

Document ID:

653014

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

 

2.1   Purpose of Report

To seek approval from Council to bring forward funding in the Long Term Plan 2019/20 budget relating to the Park Island Redevelopment into 2018/19 to complete the earthworks required for the Hawkes Bay Rugby Union complex at Park Island due to be started February 2019.

 

Officer’s Recommendation

The Finance Committee:

a.     Approve $400,000 to be bought forward from the Long Term Plan 2019/20 budget for the Park Island Redevelopment (Loan funded) to accommodate earthworks required to progress the Hawkes Bay Rugby Union complex at Park Island due to start February 2019

 

 

Chairperson’s Recommendation

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

2.2   Background Summary

 

The original Park Island Master Plan was developed in 2013.  An updated Masterplan was subsequently presented, and adopted by Council in April 2017 and a resolution passed to initiate a District Plan Change to rezone Park Island Northern Sports Hub to meet the Master Plan objectives. 

 

The Northern Sports Hub now includes additional car parking to support the inclusion of a new high performance facility and game standard training field for the Hawkes Bay Rugby Union. 

 

A Deed of Agreement was signed by Napier City Council, and Hawkes Bay Rugby Football Union on 18th November 2016.  For the HB Rugby Union to achieve their programme timeline, the critical building start dates of 1st February 2019 requires earthworks associated with the development to be bought forward.

 

Council’s agreement with HBRU requires us to provide a suitable building platform to enable them to construct their new building. They have requested Council initiate earthworks as soon as possible.  To ensure deadlines are met, this project should be awarded no later than 19th October and requires confirmation of budget before this can be awarded.  Two tenders for the work for the construction of the earthwork foundation for the new HBRU complex at Park Island. 

 

In the long term plan for the Northern Sports hub allocated $100,000 in year 1 and $2.596m in year 2 (both loan funded).  Funding will need to be bought forward to achieve the above outcomes.

 

2.3   Significance and Engagement

        Bringing forward the budget will not significantly impact rates next year when loan funding is calculated over the 25 year life of the loan.

        Engagement on the District Plan has already been undertaken, and Council adopted Plan Change 11 on 22 November 2017.  A Deed of Agreement with the HBRFU was signed 18th November 2016.

       

2.4   Implications

Financial

The Northern Sports hub redevelopment provided $100,000 in year 1 and $2.596m in year 2 (both loan funded) in the Long Term Plan 2018-28.

Loans are calculated at the end of the financial year.  The request is to bring forward $400k of the $2.596m, which will bring forward this loan and associated loan repayments.  As the loan is calculated over a life of 25 years this will have an impact on 2019/20 Rates of $34,300 or 0.06%.  This is not considered significant and requiring further engagement.

Social & Policy

n/a

Risk

Due to the tenders not yet awarded for this contract, this paper is considered commercially sensitive

2.5   Options

The options available to Council are as follows:

a.     Approve bringing forward $400k to support the HBRFU build timeframes in advance of next year’s rugby season (February 2019)

b.     Not approve bringing forward funding to support the HBRU build timeframes

2.6   Development of Preferred Option

Under the Deed of Agreement with the HBRFU, Napier City Council have committed to support the Park Island Development, and this opportunity provides for the rationalisation and relocation of the HBRFU administration in conjunction with an HBRFU high performance indoor training facility and outdoor training facility at Park Island.  Council wishes to work with its stakeholder to achieve these objectives and agreed timelines.  There is a strong preference for earthworks to be undertaken during the summer months.

 

 

2.7   Attachments

Nil


Finance Committee - 16 October 2018 - Open Agenda                                                                                                                                              Item 3

3.    Road Stopping - land corner of Geddis & Longfellow Avenue

Type of Report:

Legal

Legal Reference:

Local Government Act 1974

Document ID:

637186

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property

Jenny Martin, Property and Facilities Officer

 

3.1   Purpose of Report

To obtain Council approval to initiate the road stopping process in accordance with the 10th Schedule of the Local Government Act 1974, and subsequent sale of approximately 188m2 of current legal road on the corner of Geddis and Longfellow Avenue, to Ahuriri District Health.

 

Officer’s Recommendation

The Finance Committee:

a.     Recommend pursuant to Section 342 of the Local Government Act 1974, to initiate the stopping of approximately 188m2 of legal road, on the corner of Geddis and Longfellow Avenue and adjacent to 65 Geddis Avenue, in accordance with the Tenth Schedule to the Local Government Act 1974.

b.     Recommend that upon completion of the Tenth Schedule stopping process, the stopped road is sold to Ahuriri District Health (a Charitable Trust) at a peppercorn sale price of one dollar plus all associated legal, survey and advertising costs.

 

 

Chairperson’s Recommendation

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

3.2   Background Summary

A Resource Consent has been granted for the re-development of the existing medical centre on the corner of Geddis and Longfellow Avenue, Maraenui. The Consent is subject to road stopping being completed on the corner, or as an interim measure until the road stopping is complete, a Licence to occupy the adjacent Road Reserve. The land is needed for vehicle ingress, egress and vehicle manoeuvring to the proposed car parking.

The Resource Consent, Development Plans and road stopping area plan are attached.

3.3   Issues

There are no issues.

3.4   Significance and Engagement

The Tenth Schedule requires public notification of the road stopping. This is by way of notices in the local newspaper and signage at each end of the proposed stopped road. Any member of the public has 30 days to object to any road stopping.

 

The final Council decision on whether or not to approve to road stopping must take account of any objections.

3.5   Implications

Financial

The sale of the land at a peppercorn sum is due to the charitable nature of Ahuriri District Health.

There are no other cost implications to Council. Ahuriri District Health are to pay all Council’s costs for the road stopping.

Social & Policy

The re-development of the Maraenui Medical Centre will provide enhanced medical services to the community.

Risk

Not applicable.

3.6   Options

The options available to Council are as follows:

a.     Approve the road stopping and selling of the Road Reserve to Ahuriri District Health.

b.     Decline the road stopping and selling of the Road Reserve.

3.7   Development of Preferred Option

Option A is the preferred option as it gives Ahuriri District Health certainty for the medical centre re-development.

 

3.8   Attachments

a     Resource Consent Decision

b     Development Plans

c     Proposed road stopping area   


Finance Committee - 16 October 2018 - Attachments

 

Item 3

Attachments a

 


 


 


 


 


Finance Committee - 16 October 2018 - Attachments

 

Item 3

Attachments b

 


 


 


 


 


 


 


 


 


Finance Committee - 16 October 2018 - Attachments

 

Item 3

Attachments c

 


Finance Committee - 16 October 2018 - Open Agenda                                                                                                                                              Item 4

4.    Powerco Gas Pipeline - Grant of Easement and Concession

Type of Report:

Legal and Operational

Legal Reference:

Reserves Act 1977, Conservation Act 1987

Document ID:

641344

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property  

 

4.1   Purpose of Report

a.   To obtain Council’s approval to grant a concession in the form of an easement to Powerco Limited to use reserve land to convey gas by way of a pipeline.

b.   To also obtain Council’s approval to grant an easement to Powerco to use non reserve fee simple land owned by Council for the same purpose.

 

 

Officer’s Recommendation

The Finance Committee:

a.     Pursuant to Section 48 of the Reserves Act 1977, approve the granting of a concession in the form of an easement to Powerco Limited to convey gas under the reserve land described in Schedule 1 below.

b.     Approve the granting of an easement to Powerco Limited to convey gas under the fee simple land owned by Council as described in Schedule 2 below.

                                                

                                                           SCHEDULE 1

Legal Description

Title/GN Reference

Land Status

Section 2 Survey Office Plan 468666

NZGN 2002 p488

Local Purpose (Wildlife) Reserve

Section 1 Survey Office Plan 468666

641949

Local Purpose (Community Building) Reserve

 

                                                           SCHEDULE 2

Legal Description

Title/GN Reference

Land Status

Lot 2 Deposited Plan 8156

HB131/258

Fee Simple

 

Chairperson’s Recommendation

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

 

4.2   Background Summary

As a result of the NZ Transport Agency’s Hawke’s Bay Expressway project some years ago, Powerco Limited’s gas pipeline was relocated to its current position as represented as a white line on the attached plan titled ‘Napier Expressway realignment: Powerco Gas Pipeline Easement Area Plan’.

For reasons unknown, Powerco’s rights and powers with respect to the gas pipeline were not formalised at the completion of the Transport Agency’s project.

Whilst a large section of the gas pipeline is situated within the adjoining legal road corridor, part of the pipeline in this location is situated within three separate parcels of land either owned, or controlled and managed by Napier City Council.

For clarification, the land in question is situated between Domain Road and the Hawke’s Bay Expressway SH2 in the vicinity of the airport.

To formalise Powerco’s interest over the pipeline affecting the Council properties, Powerco require an easement in gross over the area hatched in red located within the area marked D on the attached Plan (fee simple land) and a concession over the area hatched red located within the areas marked A and E on the Plan (Reserve Land).

4.3   Issues

The gas pipeline already exists in its current location and there is no intention to upgrade or modify the pipeline at this time. The infrastructure is located below the surface and there are no above ground improvements within the easement area.

4.4   Significance and Engagement

N/A

4.5   Implications

Financial

The agreement provides for the payment of compensation for the easement and reimbursement of Council’s legal fees.

Social & Policy

N/A

Risk

N/A

4.6   Options

The options available to Council are as follows:

a.     Approve the granting of the easements.

b.     Decline to approve the granting of the easements.

4.7   Development of Preferred Option

As mentioned, the pipeline already exists in its current location. The approval of the easements are now required to formalise an existing situation.

Once approved and granted, the Transport Agency will attend to the registration of the easements.

 

4.8   Attachments

a     Napier Expressway Realignment: Powerco Gas Pipeline Easement Area Plan    


Finance Committee - 16 October 2018 - Attachments

 

Item 4

Attachments a

 


Finance Committee - 16 October 2018 - Open Agenda                                                                                                                                              Item 5

5.    HB Museums Trust Annual Report

Type of Report:

Legal

Legal Reference:

Local Government Act 2002

Document ID:

650777

Reporting Officer/s & Unit:

Chris Denby, Finance Accountant

 

5.1   Purpose of Report

To provide Napier City Council with the Hawke’s Bay Museums Trust Annual Report for the year ending 30 June 2018.

 

Officer’s Recommendation

The Finance Committee:

a.   Receive the Annual Report of the Hawke’s Bay Museums Trust

 

 

Chairperson’s Recommendation

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

5.2   Background Summary

Under Section 67 of the Local Government Act 2002, the Hawke’s Bay Museums Trust is required to deliver to Napier City Council a copy of its Annual Report within three months of the end of the financial year.

 

5.3   Attachments

a     Hawke's Bay Museums Trust Annual Report 30 June 2018   


Finance Committee - 16 October 2018 - Attachments

 

Item 5

Attachments a

 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 

     


Finance Committee - 16 October 2018 - Open Agenda

PUBLIC EXCLUDED ITEMS

 

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

AGENDA ITEMS

1.         Proposed Solution to Recycling Service for Napier

2.         Leasehold Land Freeholding - Request 1

 

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.

 

Ground(s) under section 48(1) to the passing of this resolution.

 

1.  Proposed Solution to Recycling Service for Napier

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

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.

2.  Leasehold Land Freeholding - Request 1

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.

 

 


Finance Committee - 16 October 2018 - Open Agenda

 

 

Finance Committee

Open Minutes

 

Meeting Date:

Tuesday 4 September 2018

Time:

3.00pm-4.00pm

Venue

Council Chamber
Hawke’s Bay Regional Council
159 Dalton Street
Napier

 

 

Present

Mayor Dalton, Councillor Wise (In the Chair), Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, White and Wright

In Attendance

Chief Executive, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Chief Financial Officer, Manager Community Strategies, Strategic Planning Lead, Transformation Lead, Manager Business Excellence & Transformation, Marketing Manager, Manager Property, Venues Manager, Community Advisor, Community Funding Advisor

Administration

Governance Team

 

 

Apologies

Councillors Boag / Brosnan

That the apology from Councillor Taylor be accepted.

Carried

Conflicts of interest

Nil

Public forum

Dorothy Pilkington

Mrs Pilkington spoke to the War Memorial design options and advocated that as per Council’s decision on 29 June 2018, three options should be consulted on. As the annex option has since been withdrawn, there is no longer a design that would see the plaques returned to the inside of the building. The community should be offered an option in the consultation process to allow the memorial items to become part of the building again. Mrs Pilkington referred to the International Council on Monuments and Sites New Zealand Charter and circulated images of the Whanganui War Memorial Centre, noting that the elements are located inside their memorial.

 

Craig Morley

Mr Morley also spoke to the War Memorial design options and agreed that it would be impractical to return the building to what it originally was. He noted that the new additions to the building have provided space that could be used to house the memorial elements; specifically, utilising the space to the right of the entrance which is currently a chair storage area. Images were presented to Council showing what this could look like externally, as well as proposed floorplan changes.

 

Mr Morley advised that a public meeting has been arranged, with an independent facilitator, to be held on 16 September, 2pm at the Napier Soldiers’ Club. An invitation was extended to Council to attend.

Announcements by the Mayor

Nil

Announcements by the Chairperson

Nil

Announcements by the management

Nil

Other announcements

Councillor Tapine thanked Council and specifically the depot team, for the manner in which they were able to support the passing of a significant elder of our region, Matua Heitia Hiha.

 

 

 

 

 

Confirmation of minutes

Councillors Wright / White

That the Minutes of the meeting held on 24 July 2018 were taken as a true and accurate record of the meeting.

Carried

 


 

Agenda Items

 

1.    Joint Waste Management and Minimisation Plan

Type of Report:

Operational and Procedural

Legal Reference:

Waste Minimisation Act 2008

Document ID:

619564

Reporting Officer/s & Unit:

Rhett van Veldhuizen, Waste Minimisation Lead

 

1.1   Purpose of Report

The purpose of this report is to obtain a decision from the Council on the adoption of the Joint Waste Management and Minimisation Plan (Plan) 2018-2024.

 

At the Meeting

The Chair of the Joint Waste Committee, Tania Kerr, was invited to speak to the Joint Waste Management and Minimisation Plan (Plan) 2018-2024; she noted that input from the community has guided the committee. Feedback from Hastings District Council (HDC) was that the Plan was a little short on the ‘how’ and one Councillor is still uncomfortable with one of the decisions; however, this Plan is about where we wish to go, how we can protect the environment, how we can separate our green waste from mixed waste and how we can ensure that the recycling that we do collect remains safe and clean to be turned into valuable products. Consideration has also been given to small businesses operating in this space.

Councillor Brosnan advised that every aspect of waste has been discussed with 8000 submissions having been received. It was noted that there is still a lot of work to do including final costings, by-laws to be developed and aligned with HDC, recycling receptacles to be chosen, tender scopes to be agreed etc. As the final costings have not yet been decided Council are not voting at this time to adopt any costs, this will come back to Council through the Annual Plan.

In response to questions from Councillors the following points were clarified:

·         This is a 2020 plan for implementation and will go through two more Annual Plans before costs are set; any changes will go through Council.

·         One of the recommendation points allows for flexibility around any changes in this space; any significant changes will come back to Council.

·         The average household waste is 80L and the committee decided that council should provide a service that meets the current average, hence the proposed 80L bins. Three recycling bins will also be provided.

·         The provision of the receptacle does not reduce waste; however, waste will be reduced through education to promote the decrease of waste per household and the implementation of by-laws prohibiting green waste and recycling being placed in those bins. Steps will be taken to drive change.

·         There is a two year lead in time which will be used to educate the community regarding waste.

·         Cameras are located within the collection trucks allowing the contents of bins to be viewed. If anything is there that shouldn’t be, a warning will be issued to the household.

·         There is a serious concern that there will not be a robust tendering process for bag collection in future, due to service providers’ safety concerns.

·         It was accepted that wheelie bins being left out too long affects the streetscape, but this is no different to our recycling receptacles at present.

·         The percentage of general waste in rubbish bags currently is 38%. There is a significant amount of other waste including kitchen waste, green waste, plastic, glass etc. that can be redirected under this Plan.

Committee's recommendation

Councillors Brosnan / Tapine

The Finance Committee:

a.     Adopt the Joint Waste Management and Minimisation Plan 2018-24 in accordance with section 43 of the Waste Minimisation Act 2008 without further amendment which revokes the previous Joint Waste Management and Minimisation Plan 2012-2018.

 

b.     Delegate to the Joint Council Waste Futures Project Steering Committee the authority to implement updates and changes that may be required due to wider environmental factors, while keeping within the intent of the strategy.

 

c.     Acknowledge the recommendation from the Joint Council Waste Futures Project Steering Committee that additional resource is urgently required to implement the Waste Management and Minimisation Plan.

 

Carried

 


 

2.    Joint Waste Futures Steering Committee Unconfirmed Minutes

Type of Report:

Information

Legal Reference:

N/A

Document ID:

618626

Reporting Officer/s & Unit:

Cheree Ball, Governance Advisor

 

2.1   Purpose of Report

To present to Council the unconfirmed minutes of the Joint Council Waste Futures Project Steering Committee meeting, held on 25 July 2018.

 

At the Meeting

There was no discussion on this item.

Committee's recommendation

Councillors Brosnan / Hague

The Finance Committee:

a.     Receive the unconfirmed minutes of the Joint Council Waste Futures Project Steering Committee meeting from 25 July 2018.

 

Carried

 

 

3.    Coastal Hazards Joint Committee Membership

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

621251

Reporting Officer/s & Unit:

Deborah Smith, Acting Team Leader Governance

 

3.1   Purpose of Report

To seek approval from Council for the nomination of a further member of the Coastal Hazards Joint Committee.

 

At the Meeting

There was no discussion on this item.

 

Committee's recommendation

Councillors Jeffery / Dallimore

The Finance Committee:

a.     Approve the nomination of Cr Brosnan to the Clifton to Tangoio Coastal Hazards Strategy Joint Committee.

 

Carried

 

 

4.    2018 NRB Survey

Type of Report:

Information

Legal Reference:

N/A

Document ID:

619834

Reporting Officer/s & Unit:

Steve Gregory, Transformation Lead   

 

4.1   Purpose of Report

To advise Council on the results of the NRB survey carried out in 2018.

 

At the Meeting

It was noted that Council elected members support has plummeted to 53% this year. The 10% drop in satisfaction regarding City Planning was surprising considering what has been achieved in this area. A copy of the survey will be made available to Councillors to view at Council.

Committee's recommendation

Councillors Wright / Boag

The Community Services Committee:

a.     Resolve that the 2018 NRB Survey results be received.

 

Carried

 

 

 

 

 

 

 

 

 

 

 

5.    Investment Property Portfolio Policy

Type of Report:

Operational and Procedural

Legal Reference:

Local Government Act 2002

Document ID:

622351

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property  

 

5.1   Purpose of Report

To seek Council’s approval of a Policy relating to the Investment Property Portfolio (Leasehold Land).

The resolution of Council of 1 June 2018 (as outlined below) required that a divestment, and investment policy for the sale proceeds, is established and approved by Council resolution prior to the release of any leasehold land.

The attached policy has been developed in response to the resolution. It outlines the terms and conditions on which Council may sell non-strategic land included in the portfolio. The policy also provides guidance relating to the investment of the proceeds of sale.

 

At the Meeting

No discussion was held on this item.

Committee's recommendation

Councillors Wise / Hague

The Finance Committee:

a)     Approve the Investment Property Portfolio Policy.

 

Carried

 

 


 

6.    Sale of Endowment Land

Type of Report:

Operational and Procedural

Legal Reference:

Napier Borough Endowments Act 1876, Napier Borough Endowments Amendment Act 1999, Sections 140 and 141 of the Local Government Act 2002 (LGA). Section 40 of the Public Works Act 1981 (PWA).

Document ID:

622679

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property  

 

6.1   Purpose of Report

To seek Council’s approval to sell certain land which is subject to the Napier Borough Endowments Act 1876 and is part of Council’s Investment Property Portfolio. Any sale is to be considered on a case by case basis and is subject to the terms and conditions of the Investment Property Portfolio Policy.

 

At the Meeting

In response to questions from Councillors, the Manager Property clarified that in the interest of transparency, it was prudent to raise this as a separate agenda item and have a separate resolution to the Investment Property Portfolio Policy item. 

Committee's recommendation

Councillors Wise / Hague

The Finance Committee:

Resolve:

a.     To allow the sale, after consideration on a case by case basis, of the land included in the schedule below, being endowment land which is subject to the Napier Borough Endowments Act 1876.

b.     That considerations and process is to comply with Council’s Investment Property Portfolio Policy.

c.     To record that this decision represents a discretion to be executed by Council on a case by case basis, nothing in this decision represents a right for any person to insist or require Council to sell to them and the sale by Council of any land under this decision does not create precedence or expectation that other land held by Council (whether of a similar nature or not) will be sold.

d.     That the process requirements set out in Sections 140 and 141 of the Local Government Act 2002 are to be complied with.

e.     To record that Council has considered the issue of an offer back obligation to the Crown under Section 40 of the Public Works Act 1981. Legal advice has confirmed that in the particular circumstances surrounding the land, there are relevant exceptions to any offer back obligation based on the criteria set out in Section 40(2) and (4) of the Public Works Act 1981, and therefore there is no offer back requirement.

 

Schedule of land:

48 West Quay                                   Lot 1 DP 478612, CFR664012

40 West Quay                                   Lot 2 DP 4786142, CFR 664012

14 Bridge Street                               Lot 2 DP 17631, CFR HBK2/1415

16 Bridge Street                               Lot 1 DP 17631, CFR HBK2/1415

22 Bridge Street                               Part Town Section 610 Napier, CFR HBC4/1148

9B, 9FD and 9 E Riddell Street         Lot 1-2 DP 5357, CFR HBA4/1405

160 Wellesley Road                          Town Section 569 Town of Napier CFR HB97/42

 

Carried

  

 The meeting closed at 4pm.

 

 

Approved and adopted as a true and accurate record of the meeting.

 

 

Chairperson .............................................................................................................................

 

 

Date of approval ......................................................................................................................