Minutes of Ordinary Meeting of Council

Ordinary Meeting of Council - 19 December 2019 - Open Minutes

Agenda Items

1. Hawke's Bay Airport Ltd Annual Report 2019

Type of Report:	Procedural
Legal Reference:	Local Government Act 2002
Document ID:	877128
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

1.1 Purpose of Report

To present to Council the Hawke’s Bay Airport Ltd Annual Report 2019.

At the meeting

Tony Porter, Chairman and Stuart Ainslie, Chief Executive Officer presented the 2019 Hawke’s Bay Airport Limited Annual Report to Council (presentation attached – Attachment A).

Mr Porter provided a brief overview of the financials for the 2018/19 year noting that due to the financial uncertainty following the departure of Jetstar and Arrow going into voluntary administration, it was decided that it would not be prudent to pay out a dividend this year. He also spoke to notable highlights of the year, including the continued success of the Watchman Road project.

Mr Ainslie spoke to the key challenges moving forward and provided an overview of the operations strategy and sustainability framework.

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

· Typically, a dividend of around 40% of EBIT would be paid out. Government understands the decision to not pay a dividend at this time.

· A number of factors attributed to the departure of Jetstar from Hawke’s Bay, including the Jetstar operating model not being a good fit for the Turbo Prop service. The door remains open for Jetstar to return.

· The sustainability framework sits across the strategic plan.

ACTION: To arrange a joint meeting with Hastings District Council and Hawke’s Bay Airport Limited in the new year, in order to provide further background information and bring new Councillors up to speed on airport matters.

Council resolution

Councillors Simpson / Tapine

That Council:

a. Receive the Hawke's Bay Airport Ltd Annual Report 2019.

Carried

2. Water Review Procurement Strategy

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	877290
Reporting Officer/s & Unit:	Catherine Bayly, Manager Asset Strategy

2.1 Purpose of Report

The purpose of this report is to outline the procurement strategy and processes to engage skilled consultancy services that will support Council’s review of options for provision of safe chlorine free drinking water to our communities and compare to current requirements and anticipated regulatory change. The review will provide advice on capital and operational work requirements, residual health risk, indicative costs and indicative timeframe to achieve the targeted reticulation standard and make recommendations on an appropriate chlorine free option.

The options that will be assessed are:

1. Maintain the current Council planned programmes of work with Chlorine as a barrier against contamination under the new Water Safety Plan (WSP) framework, or

2. Enhance the water network to a standard where disinfection residual can be removed with no negative impact on water quality or public safety to consumers.

Outcome of Review:

The output of the review will be two fully costed options for the delivery of safe water supplies in Napier that can be consulted upon within the community with feedback sought to help inform Council on whether we continue with a safe network with chlorine or commit to developing a network that enables chlorine to be removed safely. The two options will be based around the requirements of the new Water Safety Plan Framework and the chlorine free option will be developed with guidance from the Ministry of Health to ensure that any future chlorine free option would be acceptable to them.

The additional benefits of completing the project include a peer review of the financial modelling in the 3 Waters Review along with providing clarity around future staffing requirements and operational costs for both options.

At the meeting

The Manager Asset Strategy, Team Leader 3 Waters and Procurement Lead spoke to the report and also provided further background for the benefit of the new Councillors. It was noted that a communications strategy will be developed in the new year to better inform the public around what is being done in this space, and reiterated that people should not drink the dirty water as this contains high levels of manganese, instead run taps until the water runs clear.

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

· It was confirmed that the works currently underway will be required whether the network is chlorinated or not.

· Acoustic sensors will be considered; however, they do not reduce risk. Acoustic sensors will allow Council to better understand the network once it is zoned and to better manage leakage and flow. Zoning the network is part of Council’s three year work programme.

· Christchurch City Council (CCC) has submitted their water safety plan and officers assume that the plan excludes chlorination. The Ministry of Health with make their decision based on recommendations from the panel, who must first consider how CCC plans to manage the risks in their network.

· Council has been running a pigging programme for over 10 years; this is an ongoing process. It was noted that parts of the network cannot be accessed.

· The major projects will run concurrently, with an optimistic view for some of these projects to be completed over two years, others will take longer.

· Council may need to attract consultants and contractors from outside Hawke’s Bay as well to complete works, noting that Hastings District Council are also undertaking a large work programme.

· Before chlorination can be removed from the network, Council must demonstrate how risks in the network will be managed. Removing chlorination at this time would be against the approved water safety plan and would not be supported by the HBDHB.

· Council has demonstrated that there is no protozoa risk by achieving bore security status. UV treatment will also be installed in the new bore fields.

· The expectation moving forward under the new water safety drinking guidelines is that property owners with a private bore or storage tank feeding more than two dwellings will need to produce their own water safety plan. Council will be required to assist property owners with this.

Councillors suggested that Councillor Simpson be appointed as an observer for the Registration of Interest (ROI) process and that officers approach the Ministry in relation to potential funding options.

Officer’s Recommendation

That Council:

a. Note the report titled “Procurement Strategy to engage a consultant to complete a chlorine free drinking water review” be received.

b. Adopt the Review outcome, being to develop two defensible options for safe drinking water to take to the community.

c. Approve the procurement strategy to engage a consultant to complete a drinking water review for Napier City Council which includes a two stage procurement process including a Registration of Interest followed by a Request for Proposal.

Council resolution

Substitute Motion

Dep. Mayor Brosnan / Councillor Simpson

That Council:

a. Note the report titled “Procurement Strategy to engage a consultant to complete a chlorine free drinking water review” be received.

b. Adopt the Review outcome, being to develop two or more defensible options for safe drinking water to take to the community.

c. Approve the procurement strategy to engage a consultant to complete a drinking water review for Napier City Council which includes a two stage procurement process to provide a solution that addresses the review outcomes including a Registration of Interest followed by a Request for Proposal.

d. Note the inclusion of an independent probity advisor in the process.

e. Investigate Ministry of Health funding opportunities for the report noting the implications of being leaders in the investigation of a chlorine free network under the new regulations, noting all works will continue as scheduled while this in undertaken.

f. Note that a communications strategy will be developed for all drinking water and presented to Council in early 2020.

g. That Councillor Simpson be appointed as observer on ROI process.

Carried

The Mayor adjourned the meeting at 11.57pm for a short break, and reconvened at 12.05pm.

3. Civic Building Demolition

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	877988
Reporting Officer/s & Unit:	Paulina Wilhelm, Manager City Development

3.1 Purpose of Report

To seek Council approval to demolish the Civic building in 2020. Officers also propose investigating if there are any cost savings in demolishing the Library building at the same time and reporting the findings back to Council for considering the future plans for the Civic Precinct Area (the area including the civic building, the library building and the civic court, refer to attachment). It is noted that no decision has been made on the future of the Library building at this time.

Note: this report was initially taken to the Council meeting held on 5 December 2019 where it was laid on the table, to be brought back to this meeting.

At the meeting

Councillors confirmed that since the report was last on the table, they have had an opportunity to speak with representatives from Strata Group and Aurecon and have had access to further reports, enabling them to consider the full issue. It was noted that although a lot of the information had been around seismic assessments, a comprehensive report and business case around site optimisation had also been considered.

A number of Councillors noted they were satisfied that the information provided since the last meeting addressed their concerns and they were now able to move forward with the decision. It was also noted that the 2017 cost estimate for full refurbishment of the building was $75M, and that Council officer’s had confirmed there was no safety risk to passersby.

Council resolution

Councillors Taylor / Crown

That Council:

a. Approve going to tender for the demolition of the Council Civic Administration building in 2020 and ring-fence the associated costs of demolition to be recovered from the future use of the site either through the sale or a long term lease

Carried

4. Kerbside Recycling Crate Replacement Policy

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	877541
Reporting Officer/s & Unit:	Rhett van Veldhuizen, Waste Minimisation Lead

4.1 Purpose of Report

To seek Council’s approval for establishing a policy and a charge and methodology for the replacement of recycling crates which have been stolen, lost or damaged while using the new service.

At the meeting

The Manager Environmental Solutions spoke to the report and clarified the following points, in response to questions from Councillors:

· There are a number of reasons that receptacles go missing, including moving house and taking the receptacles, whether purposely or not.

· The cost for replacements was foreseen but the replacement fee could only be set through fees and charges, which needs to be set at a particular time each year.

· Replacement fees will be assessed on a case by case basis, ie. replacement fees for receptacles broken by contractors will not be charged to residents; it was noted that the new methodology reduces this risk.

· The fee will be reviewed year on year as part of the fees and charges process. Council officers are satisfied that the fee is set at an appropriate level, and have taken into account replacement fees set by other Councils.

· Each crate has a unique code for tracking and audit purposes and contractors will only collect the maximum of three crates from each property.

Council resolution

Dep. Mayor Brosnan / Councillor Chrystal

That Council:

a. Approve the establishment of a fee of $15.00 including GST for each crate supplied to replace any or all of the three crates provided to each household at the beginning of the service rollout.

b. Agree to Waste Minimisation Officers developing a policy with regards to the charges related to kerbside collection receptacles that incorporates the contract parameters, fairness and looking after our assets.

Carried

5. Actions From Previous Meetings

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	878880
Reporting Officer/s & Unit:	Devorah Nícuarta-Smith, Team Leader Governance

5.1 Purpose of Report

To present the actions from previous meetings for awareness.

At the meeting

Councillor Taylor advised that Sport HB confirmed there is no council appointment to Sport HB.

Mayor Wise advised that the financial risk of removing the Napier Conference Centre signage item can be closed out as the signage has already been removed.

Council resolution

Councillors Tapine / Crown

That Council:

a. Note the actions from previous meetings along with their current status.

Carried

REPORTS / RECOMMENDATIONS FROM THE STANDING COMMITTEES

Reports from Audit and Risk Committee held 5 December 2019

1. Health and Safety Report

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	871748
Reporting Officer/s & Unit:	Sue Matkin, Manager People & Capability

1.1 Purpose of Report

The purpose of the report is to provide the Audit and Risk Committee with an overview of the health and safety performance as at 31 October 2019.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the Health and Safety report as at 31 October 2019.

Carried

2. Risk Management Report November 2019

Type of Report:	Information
Legal Reference:	N/A
Document ID:	873301
Reporting Officer/s & Unit:	Ross Franklin, Consultant

2.1 Purpose of Report

To provide the Audit and Risk Committee with an update on progress with risk management work and to report on the highest paid risks.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Note the Risk Management Work being undertaken by Napier City Council staff and management.

b. Note the current Major risks.

c. Receive the Risk Report dated 22 November 2019.

Carried

3. Audit and Risk Committee Charter

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	873943
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

3.1 Purpose of Report

The purpose of this report is to advise the incoming committee of the committee charter and of the recommendation for the charter to be reviewed over the next 12 months.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Note and discuss the current Audit and Risk Committee Charter and make any recommended changes

Carried

4. Proposed Audit and Risk Committee 2020 meeting calendar

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	871747
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

4.1 Purpose of Report

To consider the proposed timetable of meetings for the Audit and Risk Committee in 2020, as detailed below.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the proposed timetable of meetings for the Audit and Risk Committee for 2020.

Carried

6. Sensitive Expenditure: Mayor and Chief Executive

Type of Report:	Operational and Procedural
Legal Reference:	N/A
Document ID:	871750
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

6.1 Purpose of Report

To provide the information required for the Committee to review Sensitive Expenditure of the Mayor and Chief Executive for compliance with Council’s Sensitive Expenditure Policy.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the report of Sensitive Expenditure for the Mayor and Chief Executive and review for compliance with the Sensitive Expenditure Policy.

Carried

7. External Accountability: Audit New Zealand Management Report

Type of Report:	Information
Legal Reference:	Local Government Act 2002
Document ID:	871746
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

7.1 Purpose of Report

To consider the Audit NZ management report to the Council on the audit of Napier City Council for the year ended 30 June 2019 (to be tabled at the meeting).

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the Audit NZ management report to the Council on the audit of Napier City Council for the year ended 30 June 2019.

Carried

8. External Accountability: Investment and Debt Report

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	871749
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

8.1 Purpose of Report

To consider the snapshot report on Napier City Council’s Investment and Debt as at 31 October 2019.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the snapshot report on Napier City Council’s Investment and Debt as at 31 October 2019.

Carried

9. Internal Audit: Community Grants Management

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	872363
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

9.1 Purpose of Report

To table to the Committee the internal audit on community grants management undertaken by Council’s internal auditors, Crowe Horwath.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Tapine / Boag

That Council:

a. Receive the report from Crowe Horwath titled ‘Community Grants Management’.

Carried

5. Financial Delegation

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	869923
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

5.1 Purpose of Report

To review and approve the Chief Executive’s financial and non-financial delegation

At the meeting

It was noted that the recommendation taken to the Audit and Risk Committee was to increase the Chief Executive’s financial delegation from $500,000 to $1M. The committee did not make a recommendation to Council; however, noted that the independent members supported the increase. The other members of the Audit and Risk Committee, Councillors Simpson and Taylor, confirmed that they also supported the original recommendation, noting that it was reasonable for that level of expenditure to be increased. The Mayor expressed concerns around the public perception of any increase, with regard to process and transparency.

In response to questions from councillors, the following points were clarified:

· The delegation has not been reviewed for at least 10 years. Officers confirmed that the delegation could be reviewed at any time.

· Hastings District Council Chief Executive’ financial delegation is $5M and the Chief Executive Officer of EIT is $1M.

· The financial delegation only applies to items within Council’s approved plans and budgets, anything outside of this would be required to come back through Council.

· Council sets the financial delegation for the Chief Executive and the Chief Executive then sets the financial delegations for staff.

· Any large projects go through the Tenders committee.

Councillors noted their preference that the Chief Executive’s financial delegation be brought back to Council for review say every three years.

Councillor Browne left the meeting at 12.54pm, part way through the discussion on this item, and did not participate in the vote.

Committee's recommendation

That Council:

a. Note the recommendation of the report to increase the financial delegation to the Chief Executive from $500k to $1M, and provide feedback that the independent members support this recommendation while the Mayor’s preference is to retain the current delegation

b. Approve the Delegation to the Chief Executive document dated 5 December 2019 subject to Council financial delegation approval

Council resolution

Substitute motion

Councillors Taylor / Price

That Council:

a. Approve an increase of the financial delegation to the Chief Executive from $500k to $1M.

b. Approve the Delegation to the Chief Executive document dated 5 December 2019.

The motion was carried by 7 votes to 4 votes the voting being as follows:

For: Councillors Price, Taylor, Chrystal, Crown, Mawson, Simpson and Tapine

Against: Mayor Wise, Deputy Mayor Brosnan, Councillors Boag and McGrath

Carried

Ordinary Meeting of Council - 19 December 2019 - Open Minutes

Reports Under Delegated Authority

1. Resource Consents

Type of Report:	Information
Legal Reference:	N/A
Document ID:	877879
Reporting Officer/s & Unit:	Cheree Ball, Governance Advisor

1.1 Purpose of Report

To present the report on Resource Consents issued under delegated authority for the period 6 November – 30 November 2019.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Price / Tapine

That Council:

a. Resolves to receive the report titled ‘Resource Consents approved 6 November - 30 November 2019’.

Carried

2. Tenders Let

Type of Report:	Information
Legal Reference:	N/A
Document ID:	877927
Reporting Officer/s & Unit:	Cheree Ball, Governance Advisor

2.1 Purpose of Report

To report the Tenders let under delegated authority for the period 6 November – 5 December 2019.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Price / Tapine

That Council:

a. Receive the report for Tenders Let under delegated authority for the period 6 November – 5 December 2019.

Carried

3. Documents Executed Under Seal

Type of Report:	Information
Legal Reference:	N/A
Document ID:	877923
Reporting Officer/s & Unit:	Cheree Ball, Governance Advisor

3.1 Purpose of Report

To report on the Documents Executed under Seal for the period 6 November – 5 December 2019.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Price / Tapine

That Council:

a) Receive the report for Documents Executed under Seal for the period 6 November – 5 December 2019.

Carried

Ordinary Meeting of Council - 19 December 2019 - Open Minutes

PUBLIC EXCLUDED ITEMS

Council resolution

Dep. Mayor Brosnan / Councillor Mawson

That the public be excluded from the following parts of the proceedings of this meeting.

Carried

Agenda Items

1. C1225 - Kerbside Waste Collection Services Contract

2. Actions From Previous Meetings - Public Excluded Items

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:
Agenda Items
1. C1225 - Kerbside Waste Collection Services Contract	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. Actions From Previous Meetings - Public Excluded Items	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.

The meeting moved into committee at 1.03pm.

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

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

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

Attachment A – HBAL Presentation

Present	Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine and Taylor
In Attendance	Chief Executive, Director Corporate Services, Director Community Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Manager Asset Strategy, Manager Environmental Solutions, Chief Financial Officer, Manager City Development, Manager Building Consents, Team Leader 3 Waters, Procurement Lead, Waste Minimisation Lead
Administration	Governance Team