Meeting Date:

Thursday 23 April 2020

Time:

10am

Venue:

Via Zoom

To be livestreamed on Council’s Facebook page

Council Members

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor, Wright

Officer Responsible

Acting Chief Executive

Administrator

Governance Team

Next Council Meeting

Thursday 4 June 2020

Officer’s Recommendation

That Council:

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

Mayor’s Recommendation

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

At the Meeting

The Chief Financial Officer spoke to the report, noting that the Committee’s responsibilities are now included in the Risk Charter, as previously requested. It was also noted that the Standing Committee names have now been updated.

Committee's recommendation

The Audit and Risk Committee:

a.     Review the Audit and Risk Committee Charter

b.     Provide any recommended changes for Council approval

At the Meeting

The Manager People and Capability provided a brief overview of the Health and Safety report for the period to 31 January 2002.

In response to questions from members, it was noted that officers have attempted to bring the staff flu vaccine date forward; however, this has not been possible. It was noted that Council does not prioritise the flu vaccine by age. A notification has been sent to all staff asking them to register their interest in receiving the flu vaccine. At the time of the meeting, numbers had not been confirmed and officers advised they would have a better indication of how many staff will be taking up the offer in a week or so.

Committee members felt strongly that all staff should be encouraged to have the vaccine.

Committee's recommendation

The Audit and Risk Committee:

a.     Receive the Health and Safety report as at  31 January 2020

At the Meeting

The Director Corporate Services spoke to the report. It was noted that work still needs to be undertaken around probable loss, and the Manager Property was at the time of this meeting, attending a regional insurance meeting where this was to be discussed.

The following points were discussed:

·     The insurance programme renews on 1 July, with an opportunity to review this in June. The Chair suggested that it may be beneficial to invite one of the JLT brokers to attend an Audit and Risk Committee meeting, giving members an opportunity to test market information and dig into the financial integrity of reinsurers in order to better understand their rating.

·     It was noted that the cost of insurance has increased significantly over the last year and officers are anticipating further changes, following Covid-19. The cost of insurance for the 2019/20 year has increased from $1.6M to $2M. Council officers confirmed that this increase had not been budgeted for as the information was not received until June.

·     Currently Council’s insurance valuation is undertaken every three years. When asked whether this should be completed more frequently, officers and Council’s Auditor advised that as Council is dealing with very large numbers the margin of increase by comparison to undertaking say two-yearly valuations would likely be marginal in each year. It was also noted that it also comes down to how confident Council is with their knowledge of the condition of the assets. Council officers confirmed that any additional assets created in the year are identified and included for insurance purposes.

Committee's recommendation

The Audit and Risk Committee:

a.     Resolve to receive the report on current insurance arrangements.

b.     That any feedback from the committee be considered for incorporation into the insurance arrangements for the insurance year commencing 1 July 2020.

At the Meeting

The Chief Financial Officer spoke to the report and confirmed that all items identified in the report for this quarter comply with Council’s policy. Members noted that the Mayor’s sensitive expenditure had not been attached to the report.

ACTION:  Council officers to provide the Mayor’s sensitive expenditure for this quarter to the Committee.

Committee's recommendation

The Audit and Risk Committee:

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

At the Meeting

The Chief Financial Officer provided an overview of the report.

It was noted that Council officers are currently waiting on further information around staff training, offered through the Police, to recognise some of the ways in which gangs are having an impact on Council activities.

Committee's recommendation

The Audit and Risk Committee:

a.     Receive the report from Crowe titled ‘Fraud Gap Analysis’

At the Meeting

The Chief Financial Officer spoke to the report noting that one high risk had been identified through this process, that being compliance with the Holidays Act. It was confirmed that a request for proposal for a new payroll system is currently being written and this report will feed into that. The request for proposal is due to be completed in the fourth quarter of 2019/20, with implementation of the new payroll system anticipated for the first quarter of 2020/21.

The Auditor queried whether any instances of non-compliance had been identified and if any remedial actions had taken place. The Director Corporate Services noted that an audit had been undertaken a few years ago and believes that the requirements had been met up to that point, to the best of Council’s knowledge. The Auditor recommended that officers seek clarification from the internal auditors as to whether they had identified any instances of non-compliance that may need to be addressed.

ACTION:  Council officers to follow up with Audit New Zealand in relation to identifying any potential instances of non-compliance with the Holidays Act.

Committee's recommendation

The Audit and Risk Committee:

a.     Receive the report from Crowe, Internal Auditors, titled ‘Payroll Internal Audit’

At the Meeting

The Chief Financial Officer spoke to the report and provided a brief overview. The Director Corporate Services noted that although still in a current cash position, Council will be looking to move into an external debt position through the Annual Plan, depending on the timing of projects.

Committee's recommendation

The Audit and Risk Committee:

a.     Receive the snapshot report on Napier City Council’s Investment and Debt as at 28 February 2020.

At the Meeting

The Director Corporate Services spoke to the report, noting the risks associated with Covid-19, and advised that she had met with the Auditor in order to get a better understanding around what Council is required to present to the community during this period and how this will impact the annual plan process. It was noted that Council will need to further identity the risk for income on tourism and any associated costs for the rates remission policy. Officers advised that the recommended approach may be to put the annual plan as it stands on hold and revisit some of those assumptions and review timeframes, which could put Council in breach of the 30 June deadline. The Department of Internal Affairs are looking at those dates given the current circumstances.

The following points were discussed:

·     The revenue impact of Covid-19 on Council’s current year’s performance is around $1Million.

·     All public meetings regarding the Annual Plan have now been cancelled. Officers are considering livestreaming Q+A sessions etc. instead.

·     A 6.5% rates increase was originally planned.

·     Further consultation is also being considered around the revenue and financing policy. Following workshops with Council, as number of significant changes were planned and it had already been determined that Council would delay consultation and consult meaningfully with the community, followed by a hearings process. Financial and timing changes were planned, and particularly the rural and bay view areas would be impacted. The risk is that Council could be challenged on the current system; Council would like to mitigate that risk and confirm current differentials as part of the Annual Plan process.

·     The current rating system was set in 2001 and there is a prescribed process for the review of rates in the Local Government Act 2002. At this time is more prudent for officers to take their time with Council and work through the changes with the community.

The Audit and Risk Committee:

a.     Receive the underlying information as the basis for the Annual Plan consultation document 20/21:

i.      Capital plan changes

ii.     10 year revised capital plan

iii.    Financial information

b.     Provide feedback from the review of the draft Annual Plan 20/21 underlying financial information to the Council meeting on 31 March 2020.

c.    Note that further review should be undertaken in light of Codiv-19 impacts to NCC

d.    And that the full council be advised immediately of this review.

At the Meeting

The Director Community Services spoke to the report and advised that diverted resources at the moment could impact on the timeline for development of the long term plan. The Mayor noted that the three waters review will have significant impacts on the long term plan. Council officers confirmed that work is underway for a three waters review across the five councils, with support and funding from the Department of Internal Affairs.

Committee's recommendation

The Audit and Risk Committee:

a.     Note current risk assessment and note next steps in the process as outlined in the report.

At the Meeting

The Director Community Services spoke to the report noting that since writing the report, the situation has changed considerably. An overview was provided in relation to the current status of confirmed cases, noting since the meeting started Hawkes Bay had officially confirmed their first case. The World Health Organisation dashboard is being updated regularly. 

The following points were discussed:

·     Council’s response is to encourage people to stay home if feeling unwell and that medical advice should be sought through healthline.

·     Business continuity plans across the organisation are currently being reviewed, specifically in relation to pandemic response and a pandemic plan has been developed. Officers are testing business operations to see if any safeguards need to be put in place.

·     Existing business continuity plans were focused on a lack of staff to carry out priority work identified across Council; however, officers are finding that there is a surplus of staff at present. All casual staff have been let go. Some teams have found work in other areas of the organisation and some of the facilities staff are busy at present managing cancellations etc., but that work will soon end. 

·     All international travel for staff has been cancelled. Domestic travel is still proceeding as at the time of this meeting.

·     The estimated loss of revenue for facilities is $1.055Million as at the time of the meeting. Further cancellations are being received daily.

·     The limit of 100 people or less for indoor gatherings is being maintained at facilities. Council is continuing to open facilities at this time but officers will be reviewing this and taking guidance from the Ministry of Health. 

·     Although outdoor gatherings of up to 500 people could still proceed under the current restrictions, Council events have been cancelled as a precautionary approach.

·     Within Council, staff are practising social distancing and a directive has been given by management to reduce meeting attendance numbers.

·     Staff required to keep water systems running have been separated and are now located away from other staff.

·     It was noted that Hastings had a dedicated assessment centre and the District Health Board have advised that Napier will have one shortly.

·     The Mayor’s and Chief Executives are having bi-weekly conference calls to ensure that everyone is informed, actively working together and supporting each other.

·     The Ministry of Health have provided PPE for staff members who may come into contact with people exposed to the virus e.g. Kennedy Park cleaners etc.

·     An additional 34 laptops have been purchased for use by staff, if required. Council currently has 170 users working remotely and the current server has the ability to provide for a further 30 users. A new server is now being built at Revera in Auckland which will allow all staff to work remotely.

The Acting Chief Executive acknowledged staff involved in developing and implementing the pandemic plan. He advised committee members that a number of staff, including the Director Community Services, are under intense pressure at this time. He noted that he has been very impressed with the organisation’s response to date and the work undertaken around business continuity plans. He also confirmed that his recommendation to the senior leadership team was that Council should be taking a cautionary approach.

Committee's recommendation

The Audit and Risk Committee:

a.     Note Napier City Council’s response to the worldwide Novel Coronavirus pandemic (COVID-19) to ensure potential disruption to business operations are minimised as far as practicable.

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.  Art Deco Trust

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.  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.

Reports from Audit and Risk Committee held 20 March 2020

1.  Legal Update

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

7(2)(g) Maintain legal professional privilege

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.  Appointment Process

7(2)(f)(ii) Maintain the effective conduct of public affairs through the protection of such members, officers, employees and persons from improper pressure or harassment

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.  Revera Lead Agency IaaS Status Report

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.

Present

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Mawson, McGrath, Price, Simpson, Tapine, Taylor [by phone], Wright

Administration

Team Leader Governance

Council resolution

That the apology from Councillors Chrystal and Crown be accepted.

Council resolution

That the public and all staff except the Team Leader Governance (for the purpose of minutes taking) be excluded from the following parts of the proceedings of this meeting.

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.  Appointment - Acting Chief Executive

7(2)(a) Protect the privacy of natural persons, including that of a deceased person

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.

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

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

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

Present

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor, Wright

In Attendance

Acting Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Chief Financial Officer, Manager Community Strategies, Garry Hrustinsky, Accounting Manager, Corporate Accountant

Administration

Governance Team

At the Meeting

The Director Corporate Services provided a brief overview of the report and spoke to the recommendations. It was noted that following Council’s decision, the consultation document for the draft Annual Plan 2020/21 will then be prepared and brought back to Council on 31 March 2020 for adoption.

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

·         Exploring the addition of two new bores has been brought forward in order to fast track Council’s ability to move manganese from source water.

·         Officers have not received any updates from Christchurch City Council in relation to the approval or otherwise of their Water Safety Plan.

·         The additional $200,000 allocated to Council’s Water Safety Plan recognises that in the near future Council will be required to move to the new Water Safety Plan template. This will require a significant amount of work and resourcing. There is currently no timeframe for this work.

·         It was confirmed that officers have not received any formal feedback on a number of Council’s Provincial Growth Fund (PGF) applications.

·         The Library working group has undertaken a prioritisation exercise of 17 potential sites for the library which led to the selection of the preferred site, that being the old library site. This will be formally brought to Council shortly in conjunction with the Hotel and Civic Building projects. It was noted that the library will form part of a wider masterplan for the whole area.

·         An update on the community housing options being investigated through the strategic review will be included in the consultation document. No decisions will be made at this point as Council is merely updating the community on the process to date. Separate consultation will be undertaken following the confirmation of options by Council.

·         There is a typo on page 16 – ‘Street Management’ is incorrectly noted twice.

·         Strengthening work has been undertaken on all Council buildings that require it at this time. Work will be required next year for Clive Square and the Harris Stand and once further details have been confirmed, specific funding for these buildings will be included in the Long Term Plan.

·         It was suggested that Councillors consider whether funding should also be set aside in order to allow Council to respond to issues raised by the community at any time.

It was noted that a number of matters discussed during Council workshops had not yet been updated. The Director Corporate Services confirmed that these would be resolved, and recommendation o) was amended in order to include these.

The Mayor noted that the decision today is in order to formally approve the underlying information for the Annual Plan consultation document and that no matters are going out for consultation with options. The consultation document will be used to share information with the community in relation to any significant changes to the Long Term Plan for 2020/21 and to seek their input. The community are of course welcome to raise other matters for consideration if they wish through this process.

ACTION:  Director Infrastructure Services to provide an update for when officers expect the Water Supply Masterplan to come back to Council.

ACTION:  Council Officers to enquire into the current status of PGF applications that they have not received feedback on to date, and update Council with the outcome of these discussions.

Officer’s Recommendation

That Council:

a.     Note that the draft 2020/21 Annual Plan and consultation document will be reported back for Council adoption on 31 March 2020.

b.     Note the proposed rates increase for 2020/21 will be a 6.5% average increase in rate requirement for existing ratepayers.

c.     Note that the consultation, for the kerbside waste collection as outlined in the Waste Minimisation and Management Plan (WMMP), informs the community that the cost of implementation will be smoothed over two years by utilising Council reserves in Year 1 (20/21).

i.      The impact to rates for 20/21 is 1.3%. 

ii.     The approximate increase to rates in 21/22 is likely to be 0.8%. 

d.     Note that new requirements of $12.1 million have been identified to support Council’s number one priority being water, of which, there is no rates impact for 20/21, however there is a rates impact for 21/22 of 0.6%. 

i.      Note the Water Supply Masterplan will be brought to Council in a separate report for adoption. 

ii.     Of the $12.1 million, $7.3 million in new requirements are for Water Supply.  

iii.    Council agree to provide extra funding for the Chlorination Review of $200k, funded from loans-rates which will impact on rates in 21/22.

iv.    Council agree to provide new funding of $200k for the development of a Water Safety Plan, funded from renewals.    

v.     Council agree to provide additional funding for the Outfall of $4 million to be funded from renewals

1.     Council note the risks as outlined in this paper and that Officers will bring back to Council any further costings once the investigation process is further underway. 

e.     Note that Council have allocated $25 million in total for 20/21 across 3 Waters to support water being the number one priority.  

f.     Note that targeted engagement has occurred with those residents impacted by the proposed targeted rate associated with the Whakarire Rock Revetment and Council will receive further information at the 31 March Council meeting.

i.      Agree the budget allocation based on new estimates will be $2.2 million.

ii.     Agree the private contribution to be held at the same amount as per the 2019/20 consultation, resulting in a change to the public/private split to 2.5% private/97.5% public. 

g.     Note the new funding requirements of $2.3 million, funded from development contributions, to support development in Te Awa. 

h.     Note that the funding for the Long Term Plan requirements of $240k is funded from the Urban/Suburban Growth fund

i.      Note the funding for community engagement of $100k is funded from the Urban/Suburban Growth fund

j.      Note that Council may require external borrowings as part of this Annual Plan ($20m) depending on the timing of projects.  External borrowings were identified in the Long Term Plan to occur in 20/21 ($30m)

k.     Note that the proposed changes to the Revenue and Financing Policy and Council’s rating policies will be brought to Council in a separate report at the 31 March Council meeting. 

l.      Note that changes to the Revenue and Financing Policy will be consulted on concurrently with the Annual Plan consultation including.

i.      changes to the Rates Remission Policy and Rates Postponement Policy.

m.    Note the proposed capital plan for 20/21.

i.      Note the revision and impact to the capital plan for the remainder of the 2018-28 Long Term Plan as a result of the changes proposed in the 20/21 capital plan.

n.     Adopt the high level consultation plan. 

o.     Adopt changes to fees as specified in the document titled Fees & Charges 20/21. 

p.     Agree that the library site selection will be included as a consultation matter, subject to the library site selection process and preferred option being brought in a separate report to Council for adoption. 

q.     That the documents and underlying information can be amended for minor refinements as for adoption of reports on 31 March 2020.

r.     Note the supporting documentation for the draft Annual Plan 2020/21 be received.

s.     Approve the underlying information and the financial information as the basis for the development of the Annual Plan consultation document 2020/21 and full Annual Plan for 20/21.

t.      Resolve that the draft 2020/21 Annual Plan be prepared on the basis of this report and supporting documentation including the resolutions made above and any decisions made at this meeting.

Substitute Motion

Council resolution

That Council:

a.     Note that the draft 2020/21 Annual Plan and consultation document will be reported back for Council adoption on 31 March 2020.

b.     Note the proposed rates increase for 2020/21 will be a 6.5% average increase in rate requirement for existing ratepayers.

c.     Note that the consultation, for the kerbside waste collection as outlined in the Waste Minimisation and Management Plan (WMMP), informs the community that the cost of implementation will be smoothed over two years by utilising Council reserves in Year 1 (20/21).

i.      The impact to rates for 20/21 is 1.3%. 

ii.     The approximate increase to rates in 21/22 is likely to be 0.8%. 

d.     Note that new requirements of $12.1 million have been identified to support Council’s number one priority being water, of which, there is no rates impact for 20/21, however there is a rates impact for 21/22 of 0.6%. 

i.      Note the Water Supply Masterplan will be brought to Council in a separate report for adoption. 

ii.     Of the $12.1 million, $7.3 million in new requirements are for Water Supply.  

iii.    Council agree to provide extra funding for the Chlorination Review of $200k, funded from loans-rates which will impact on rates in 21/22.

iv.    Council agree to provide new funding of $200k for the development of a Water Safety Plan, funded from renewals.     

v.     Council agree to provide additional funding for the Outfall of $4 million to be funded from renewals

1.     Council note the risks as outlined in this paper and that Officers will bring back to Council any further costings once the investigation process is further underway. 

e.     Note that Council have allocated $25 million in total for 20/21 across 3 Waters to support water being the number one priority.  

f.     Note that targeted engagement has occurred with those residents impacted by the proposed targeted rate associated with the Whakarire Rock Revetment and Council will receive further information at the 31 March Council meeting.

i.      Agree the budget allocation based on new estimates will be $2.2 million.

ii.     Agree the private contribution to be held at the same amount as per the 2019/20 consultation, resulting in a change to the public/private split to 2.5% private/97.5% public. 

g.     Note the new funding requirements of $2.3 million, funded from development contributions, to support development in Te Awa. 

h.     Note that the funding for the Long Term Plan requirements of $240k is funded from the Urban/Suburban Growth fund

i.      Note the funding for community engagement of $100k is funded from the Urban/Suburban Growth fund

j.      Note that Council may require external borrowings as part of this Annual Plan ($20m) depending on the timing of projects.  External borrowings were identified in the Long Term Plan to occur in 20/21 ($30m)

k.     Note that the proposed changes to the Revenue and Financing Policy and Council’s rating policies will be brought to Council in a separate report at the 31 March Council meeting. 

l.      Note that changes to the Revenue and Financing Policy will be consulted on concurrently with the Annual Plan consultation including.

i.      changes to the Rates Remission Policy and Rates Postponement Policy.

m.    Note the proposed capital plan for 20/21.

i.      Note the revision and impact to the capital plan for the remainder of the 2018-28 Long Term Plan as a result of the changes proposed in the 20/21 capital plan.

n.     Adopt the high level consultation plan. 

o.     Adopt changes to fees as specified in the document titled Fees & Charges 20/21, noting the following corrections:

i.      Aquarium fees and charges remain the same

ii.     Library fees and charges - book rentals and magazine rentals to be reviewed

p.     Agree that the library site selection will be included as a consultation matter, subject to the library site selection process and preferred option being brought in a separate report to Council for adoption. 

q.     That the documents and underlying information can be amended for minor refinements as for adoption of reports on 31 March 2020.

r.     Note the supporting documentation for the draft Annual Plan 2020/21 be received.

s.     Approve the underlying information and the financial information as the basis for the development of the Annual Plan consultation document 2020/21 and full Annual Plan for 20/21.

t.      Resolve that the draft 2020/21 Annual Plan be prepared on the basis of this report and supporting documentation including the resolutions made above and any decisions made at this meeting.

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

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

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

Present

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, McGrath, Price, Simpson, Taylor, Wright

In Attendance

Acting Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Manager Community Strategies, Finance Accountant

Administration

Governance Team

Council resolution

Councillor Price / Taylor

That the apology from Councillors Tapine and Mawson be accepted.

Carried

Council resolution

Councillor Boag / Dep. Mayor Brosnan

That the Draft Minutes of the Ordinary meeting held on 30 January 2020 be confirmed as a true and accurate record of the meeting.

Carried

At the meeting

The Team Leader Governance advised that this is the last of the mandatory documents required post-election and a useful way to provide high-level information to the public in one place about the activities and functions of council.

It was noted that the Statement is a living document which will be kept up-to-date as relevant information changes.

Officer’s Recommendation

That Council:

a.     Note the current version of the Local Governance Statement, recognising that it is a live document which will be maintained over the triennium

       i.        Note that the document will be made publicly available via Council’s website, and a copy held at each Library and the Customer Service Centre. 

b.     Confirm the updates to the external appointments in Appendix Three “Governance Structure”

i.      Correction from Hawke’s Bay Sports Council to Sports Hawke’s Bay

ii.     Additional appointment – Howard Estate Advisory Board – Michelle Monteith

iii.    Additional appointment – Pukemokimoki Marae Trust – Cr Hayley Browne 

iv.    Additional appointment – Te Matau a Maui trust – Barbara Arnott

Council resolution

That Council:

a.     Note the current version of the Local Governance Statement, recognising that it is a live document which will be maintained over the triennium, and amended where appropriate.

       i.        Note that the document will be made publicly available via Council’s website, and a copy held at each Library and the Customer Service Centre. 

b.     Confirm the updates to the external appointments in Appendix Three “Governance Structure”

i.      Correction from Hawke’s Bay Sports Council to Sports Hawke’s Bay

ii.     Additional appointment – Howard Estate Advisory Board – Michelle Monteith

iii.    Additional appointment – Pukemokimoki Marae Trust – Cr Hayley Browne 

iv.    Additonal appointment – Te Matau a Maui trust – Barbara Arnott

At the meeting

The Director Corporate Services spoke to the report, noting that it is a requirement under legislation for the Museums Trust (as a Council Controlled Organisation) to provide the Statement of Intent for council’s feedback within the next month. It was noted that no major adjustments have been made as stability is the current focus.

Council resolution

That Council:

a.     Note the Hawke’s Bay Museums Trust Financial Report for the six months ended 31 December 2019.

b.     Adopt the Hawke’s Bay Museums Trust Statement of Intent 2020-22

At the meeting

Mayor Wise congratulated Cr Tapine on his appointment as Deputy Chair of the Omarunui Refuse Landfill Committee and also the Deputy Mayors of Napier City and Hastings District Council for their appointments in the Clifton to Tangoio Coastal Hazards Joint Committee.

A workshop for all three councils involved in the Clifton to Tangoio coastal hazards work is intended, to provide an update the work done so far and how the contributory fund will be managed.

It was noted that the word “deputy” had been omitted in the committee minutes in relation to Cr Tapine’s appointment – this will be provided back to the administrator to make the correction.

The community was reminded of the costs to managing waste for a city, and to consider what is purchased and how it is disposed of.

Council resolution

That Council:

a.     Receive the unconfirmed minutes of the Omarunui Refuse Landfill Joint Committee meeting held on 13 December 2019.

b.     Receive the unconfirmed minutes of the Clifton to Tangoio Coastal Hazards Strategy Joint Committee meeting held on 4 February 2020.

At the meeting

In response to questions from councillors, it was advised that the projected timeframe for the second dechlorinated water station is end of June 2020, once consenting matters are worked through. The preferred site is immediately north of the aquarium as existing parking will provide safe access.

A working party will be established in relation to the civic precinct and a report is being drafted to Council outlining the proposed next steps.

Council resolution

That Council:

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

At the meeting

Following discussion, some minor amendments were made to the Committee’s recommendation for clarity about the project dependencies, and specific gateways in relation to any central government funding provision.

Committee's recommendation

That Council:

a.   Receive the National Aquarium Detailed Business Case.

b.   Receive the National Aquarium and Oceans Centre Concept Design.

c.   Note Council’s view that this project is of National significance and has outgrown Council’s capacity to resource and lead.

d.   Note Council’s support and endorsement for the concept and this facility’s ongoing presence in Napier.

e.   Confirms it will not further the project as set out in the detailed business case without:

·     Government capital support of a minimum of $35Million.

·     a commitment to ongoing operational costs from Government in recognition that the facility is of National significance.

·     the conversations with Government being reported back to Council along with recommendations on the next steps.

f.    Approve the high level Communications and Engagement Plan and commence community engagement following Central Government endorsement as detailed in part e.

g.   Resolve to apply to the Ministry of Business, Innovation and Employment (MBIE) Provincial Growth Fund (PGF) and other government funds for funding pending meeting with relevant Ministers.

The motion was declared carried by 12 votes to 1 vote. Councillor Tapine voted against the motion

Substitute Motion

Council resolution

That Council:

a.   Receive the National Aquarium Detailed Business Case.

b.   Receive the National Aquarium and Oceans Centre Concept Design.

c.   Note Council’s view that this project is of National significance and has outgrown Council’s capacity to resource and lead.

d.   Note Council’s support and endorsement for the concept and this facility’s ongoing presence in Napier.

e.   Confirms it will not further the project as set out in the detailed business case without:

·     Central Government capital support of a minimum of $35Million.

·     a commitment to ongoing operational costs from Central Government in recognition that the facility is of National significance.

·         Note should the matters in E not be met, conversations with central government will be reported back to Council as a decision gateway on next steps (to be workshopped).

f.    Approve the high level Communications and Engagement Plan and commence community engagement following Central Government endorsement as detailed in part e.

g.   Resolve to apply to the Ministry of Business, Innovation and Employment (MBIE) Provincial Growth Fund (PGF) and other government funds for funding pending meeting with relevant Ministers.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Hawke’s Bay Civil Defence Emergency Management Group Annual Report 2018/19.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Adopt the final Napier Positive Ageing Strategy.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Note the Safer Napier programme update.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receives the Napier Social Monitor report 2019.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Recommend Council agree to enter into a ground lease pursuant to Section 61(2A) of the Reserves Act 1977 with the Trustees of the Hawke’s Bay Volunteer Coastguard Charitable Trust for the land on Meeanee Quay, Westshore, with a legal description of Section 4 SO Plan 10927. The lease term to be ten years with one right of renewal and based on Council’s standard format for ground leases to community groups.

At the meeting

Significant discussion took place as to whether the proposed transfer of funding would create unintended consequences and impact on possible available funds for the TE Awa development in future. It was agreed that any allocations out of the suburban urban fund would come back to Council for decision, including any proposed ‘earmarking’ of funds for specific purposes. 

It was also noted that a specific fund could be set up for particular developments if Council required this in future.

The Te Awa structure plan is under review and the results of this will be brought back to Council.

Committee Recommendation

That Council:

a.     Approve the transfer of rates funds of $7,410,078, previously transferred into the Financial Contributions Reserve, back into the Subdivision and Urban Growth Fund.

b.     Transfer the General Reserve No 1 remaining reserve balance of $20,681 as at 30 June 2019 to the Capital Reserve Account.

c.      Approve a change in funding, for the following existing projects to now be funded from the Subdivision and Urban Growth Fund

i. District Plan Review ($1.2m total)

ii. Asset Management Transformation Project ($225,000 2019/20 and $1.5m in total)

iii.    Te Awa Development Investigation ($255,500 2019/20)

d.     Approve a change in funding, the following existing projects to now be funded from the Solid Waste Disposal Income Account.

i. Smoothing impact of Kerbside recycling in 2019/20 and 2020/21 ($1.3m)

Mayor Wise voted against

Substitute Motion

Council resolution

That Council

a.     Approve the transfer of rates funds of $7,410,078, previously transferred into the Financial Contributions Reserve, back into the Subdivision and Urban Growth Fund.

b.     Transfer the General Reserve No 1 remaining reserve balance of $20,681 as at 30 June 2019 to the Capital Reserve Account.

c.     Approve a change in funding, for the following existing projects to now be funded from the Subdivision and Urban Growth Fund

i.      District Plan Review ($1.2m total)

ii.     Asset Management Transformation Project ($225,000 2019/20 and $1.5m in total)

iii.     Te Awa Development Investigation ($255,500 2019/20)

d.     Approve a change in funding, the following existing projects to now be funded from the Solid Waste Disposal Income Account.

i. Smoothing impact of Kerbside recycling in 2019/20 and 2020/21 ($1.3m)

e.   Note the Te Awa Structure Plan will be brought back to Council, at which time the Suburban and Urban Reserve Fund will be reviewed for subsequent funding allocation

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Hawke’s Bay Airport Limited half year report to shareholders, to December 2019.

Decision of Council  - Prosperous Napier Committee 27 February 2020

That Council:

a.     Resolve to amend the fees for digital property files to the following:

Full digital property file         $40

Building File only                  $30

i. A reduced fee of $15 will be charged if a customer subsequently requests a full digital property file on a property after previously only requesting a Building File.

At the meeting

The Team Leader Governance spoke to the updates completed at the request of the committee.

It was raised by councillors that elected members appointed to a CCO will only be so if they hold the appropriate skills and experience, and therefore they should be remunerated at market value in the same way that the professional directors are. It was noted that CCOs bring their Director remuneration proposals to Council for approval so any concerns can be raised on a case by case basis through this process.

Committee's recommendation

That Council:

a.      Request Council officer’s to review the required skills and experience criteria and other suggested amendments with regard to wording of the Council Organisation Appointments and Remuneration Policy and bring this back to the next Council meeting for adoption.

Substitute Motion

Council resolution

That Council:

a.      Adopt the Council Organisation Appointments and Remuneration Policy

At the Meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Tenders Let for the period 7 January – 21 February 2020.

At the Meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Resolves to receive the report titled ‘Resource Consents approved 7 January – 21 February 2020’.

At the Meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the report for Documents Executed under Seal for the period 7 January – 21 February 2020.

Council resolution

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

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.  Joint Committee Public Excluded Minutes - Omarunui Refuse Landfill

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.  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.

Reports from Prosperous Napier Committee held 27 February 2020

1.  Request for Remission for Special Circumstances

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.

2.  Recommendations for Appointment to the Napier District Licensing Committee

7(2)(a) Protect the privacy of natural persons, including that of a deceased person

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.

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

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

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

Present

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag [by Zoom], Browne, Chrystal [by Zoom], Crown [by Zoom], Mawson, McGrath, Price, Simpson, Tapine, Taylor [by Zoom], Wright [by Zoom]

In Attendance

Acting Chief Executive, Director Corporate Services, Director Community Services [Item 3], Director City Strategy [Item 3]

Administration

Team Leader Governance

At the Meeting

Incident Management Team

The Director Community Services and Director City Strategy, who are the lead and deputy of Council’s Incident Management Team (IMT) spoke to the report, providing an update on Council’s actions following the government announcement on 23 March regarding Alert Three and Alert Four restrictions. The IMT was activated on the morning of 24 March and daily situation reports will be provided during the response period.

The actions required to implement the directed move on 23 March to Alert Three status were immediately started following the government’s announcement, with prompt mobilisation of staff to work from home where possible. Others not able to work from home in their current roles will be redeployed as far as possible to contribute to welfare efforts as the country moves into Alert Four restrictions from midnight Wednesday 25 March 2020.

The Directors spoke to the prioritisation of Council activities that has taken place and how key functions will be provided while also considering staff safety and wellbeing. Napier City Council is a participant in the region-wise emergency response group, and consistent approaches are expected to be taken across Hawke’s Bay to the extent possible.

The interactions and role distinctions between Council and the Police were discussed. It was noted that for many issues specifically relating to the Alert Four restrictions the Police will be the lead agency, as they are a national organisation and the event is a nation-wide one. Council will liaise closely with the Police and be guided by them as required in particular matters of welfare and security.

Council is implementing an active welfare group as part of the IMT and is already liaising with other welfare providers across the city to ensure support is available for those in high risk categories, living on their own and so on.

All Council community facilities are now closed, with the exception of Kennedy Park which has been allocated as an isolation/ quarantine centre should this be required.

The City Services Directorate are continuing to monitor utilities and act on essential services as required, and have already moved to split teams to ensure resilience and wellbeing is maintained as much as possible throughout the next period.

Most public toilets have been closed down; however provision has been made for toileting and showering facilities for rough sleepers at the public bathrooms close to Municipal Theatre, Humber Street and Spriggs Park. Security personnel will be circulating to ensure that rough sleepers are aware of where they can access important services.

The last 24 hours have been primarily focussed on mobilising and ensuring the welfare of Council staff; increased community communications will take place over the next few days. The public are also encouraged to use the government’s COVID-19 website which is an excellent resource for information on the virus and requirements in place to help address the issue.

The government website is https://covid19.govt.nz/

It was noted that anyone concerned that they may be ill MUST call their GP or Healthline in the first instance as there is an established process for early screening and assessment which must be followed. No one will be able to attend a local testing centre without first having been through this screening. It was noted that there may be some delays as all providers are experiencing a sharp upswing in volumes of contact, but to persist in reaching out.

The Healthline number to call is 0800 358 5453

The Director Community Services and Director City Strategy left the meeting at 4.30pm

Annual Plan Implications

The Director Corporate Services spoke to the impacts of the COVID-19 response to Council’s Annual Plan process.

It was intended that the draft consultation document be brought to Council next week for review and adoption, however acknowledgement needs to be made of the various implications from the COVID-19 response that are already being experienced and which will continue and need to be addressed in the upcoming financial year.

The team are quantifying these implications currently to the extent possible although the full extent may not be known for some time. There are also legislative impacts to be considered as it is known that the Annual Plan will not be able to be adopted by 30 June 2020, and there may be flow on effects with regards to striking rates. The team will compile the particular areas of impact and likely scale to bring back to Council as soon as possible, along with options as to how these could be addressed. It is hoped a meeting already scheduled with the NZ Local Government Funding Agency in relation to possible options will continue as planned by virtual means.

A number of residents have expressed concern about potentially not being able to pay rates for the upcoming quarter. It is proposed that no penalties be put through at this time. The option to postpone rates under special circumstances is also being investigated; further information on this will be brought back to Council for consideration as soon as possible.

Officers were thanked for the great work that is being undertaken in very difficult circumstances.

ACTIONS FROM IMT UPDATE

Action: Acting CE to follow up with DIA/ LGNZ/ SOLGM consortium to find out if they have reached out to countries with similar government structures to seek information on patterns of behaviours seen form those in “lock down”

Action: Confirm current fire ban status and ensure clear information is on Council website

Action: Ensure senior staff and personnel in key response roles have alternates in place and are actively taking breaks for wellbeing and resilience. Consider fully split teams as an option.

Action: Follow up on access to influenza vaccinations for field staff providing essential services

Action: Reassess access to public toilets taking into consideration people travelling in from hinterlands such as Tutira for essential supplies

Action: Place signage at ALL public toilets advising which are open for use

Action: Ensure clear information on Council’s website to match government messaging and specifying what is and is not possible under the various alert levels and particularly Alert Level 4. Include specific comment that recreation/ fresh air should be in the area people live as travel is to be minimised to essential service provision and sourcing essential supplies. Ensure people know not to use playground equipment and that they must maintain social distancing of at least 2m during leisure activities.

Action: Ensure public know they must call healthline first if they have any concerns, as there is a set process that must be followed.

Action: Councillors with any queries will contact the mayor in the first instance

ACTIONS FROM ANNUAL PLAN UPDATE

Action: Assess how any rates postponement could be enacted as efficiently as possible if for Council’s consideration

Action: Assess and advise Council on specific impact areas and the scale of impact from the COVID-19 response, along with options as to how these impacts could be addressed

Officer’s Recommendation

That Council:

a.     Receive a verbal update from Antoinette Campbell, Napier Civil Defence Controller

b.     Note the actions that Council are undertaking in response to Covid-19 as of 24^th March 2020

c.     Note the Essential Services list as distributed by Central Government that provides clarity around what services are required to continue during the lock down period

d.     Note that Council may wish to consider postponement of rates for special circumstances as a result of Covid-19, under the Rates Postponement Policy where appropriate

e.     Note that the Council have delayed is consultation of the Annual Plan 2020/21 as it consider the impacts from Covic-19.  This will result in a new consultation timeline and will mean that Council is unlikely to meet its statutory timeframe for adoption of 30 June 2020.

f.     Note any other action that Council deems appropriate at this time

Substitute Motion

Council resolution

That Council:

a.     Receive a verbal update from Antoinette Campbell, Napier Civil Defence Controller

b.     Note the actions that Council are undertaking in response to Covid-19 as of 24^th March 2020

c.     Note the Essential Services list as distributed by Central Government that provides clarity around what services are required to continue during the lock down period

d.     Note that Council may wish to consider postponement of rates for special circumstances as a result of Covid-19, under the Rates Postponement Policy where appropriate. Officers will prepare a methodology report for drafting any policy change relating to rates postponement.

e.     Note that the Council have delayed is consultation of the Annual Plan 2020/21 as it consider the impacts from Covic-19.  This will result in a new consultation timeline and will mean that Council is unlikely to meet its statutory timeframe for adoption of 30 June 2020. Officers are in the process of quantifying the impacts of COVID-19 on the Annual Plan financials and rates impact, and will bring a report to Council as soon as possible

f.     Note any other action that Council deems appropriate at this time

At the Meeting

The Team Leader Governance spoke to the report, noting that the Local Government Act 2002 sets the quorum for Council meetings at a majority of the total number of members (being 7 for Napier), and also states that quorum is only contributed to by being ‘present’, physically present, in the meeting room. The minimum quorum for committees outlined by the Act is 2 people. Adjusting the quorum of Council’s four standing committees and delegating decision making authority to them (for those matters which can be delegated by Council) offers significantly more flexibility to Council in its decision making as New Zealand negotiates various Alert Levels in relation to the COVID-19 response. It is not the intention that a committee meeting only consist of two members in total; it rather provides for as many as possible to attend by virtual means. Those attending by virtual means are able to vote so their participation in the meeting is full to every extent except contributing to physical quorum. It was noted that any decisions made by a committee through these powers will need to be reported through to a Council meeting as soon as this is practically possible. It was also noted that as Napier’s standing committees are all ‘of the whole’ there will be no loss of representation or formal information sharing with elected members. It was also noted that regardless of formal decision making processes, that informal discussions and awareness will continue by virtual means.

In recognition that during the COVID-19 response period there will also be instances where a decision is required that Council may not be able to make itself due to the implications of the government restrictions on quorum, Council’s legal advisors and Local Government New Zealand have strongly advocated for delegation to be provided to an individual so that emergency decision making may continue if required. It is proposed that for Napier this individual be the Acting Chief Executive. It is again noted that those matters that cannot be delegated by Council will not be part of this authorisation, and the intention is that any and all decisions made under these powers would follow consultation with a minimum of the mayor, deputy mayor and the chairs of the standing committees.

The powers of the committees and the Chief Executive may not be required if the law changes to allow for lawful decisions to be made by Council itself without the current physical quorum requirements. However they place Council in a strong position to be able to continue to provide essential services throughout the COVID-19 response.

In response to a question from councillors it was noted that the Māori Committee were not due to meet formally again until May and outside of the current Alert Four restrictions time frame. However it is anticipated that they will be communicated with and kept informed over the ensuing month, and if the restrictions continue longer than currently anticipated then arrangements will be negotiated for virtual discussions to take place as best they can with the group.

Specific thanks were extended by councillors to the Acting Chief Executive and senior leadership team for their excellent work in the high pressure environment.

Officer’s Recommendation

That Council:

a.     Adjust the quorum of its four standing committees to two, the lowest possible number under the Local Government Act 2002, to facilitate meetings continuing with virtual attendance where possible during the Alert Four restrictions set by the New Zealand government

i.      Those committees being:

·      Sustainable Napier

·      Future Napier

·      Napier People and Places

·      Prosperous Napier

b.     Delegate to the four standing committees decision-making authority on its behalf for all matters which are able to be delegated by a local authority under the Local Government Act 2002, during the Alert Four restrictions set by the New Zealand government

i.      Noting that this delegation excludes the following matters as per clause 32(1) Schedule 7 Local Government Act 2002:

·      The power to make a rate

·      The power to make a bylaw

·      The power to borrow money, or purchase or dispose of assets, other than in accordance with the Long Term Plan

·      The power to adopt a Long Term Plan, Annual Plan or Annual Report

·      The Power to appoint a Chief Executive

·      The power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the Long Term Plan or developed for the purpose of the Local Governance Statement

·      The Power to adopt a remuneration and employment policy. 

ii.     Noting that all decisions made by these committees of the whole must be reported to Council as soon as is practicable in the circumstances

c.     Authorise the Chief Executive (including anyone appointed to the office in an Acting capacity) delegation to make decisions in respect of urgent matters, as an emergency power to be exercised only to the extent that the Council is prevented from making decision in the circumstances, to ensure the continuation of council services to the extent possible during the COVID-19 Alert Four setting, from the time of resolution until such time as the Alert level is reduced by the government for Hawke’s Bay.

i.      Noting that this delegation is in addition to any existing delegations already held by the Chief Executive

ii.     Noting that the Chief Executive will, so far as is practicable in the circumstances, consult with the Mayor, Deputy Mayor and standing committee chairs before exercising this delegation to make decisions 

iii.    Noting that this delegation excludes the matters not able to be delegated by Council as per clause 32(1) Schedule 7 Local Government Act 2002

iv.    Further noting that the Acting Chief Executive Neil Taylor has confirmed his willingness to continue in the role as required

Substitute Motion

Council resolution

That Council:

a.     Adjust the quorum of its four standing committees to two, the lowest possible number under the Local Government Act 2002, to facilitate meetings continuing with virtual attendance where possible during Alert Three and Alert Four restrictions set by the New Zealand government

i.      Those committees being:

·      Sustainable Napier

·      Future Napier

·      Napier People and Places

·      Prosperous Napier

b.     Delegate to the four standing committees decision-making authority on its behalf for all matters which are able to be delegated by a local authority under the Local Government Act 2002, during Alert Three and Alert Four restrictions set by the New Zealand government

i.      Noting that this delegation excludes the following matters as per clause 32(1) Schedule 7 Local Government Act 2002:

·      The power to make a rate

·      The power to make a bylaw

·      The power to borrow money, or purchase or dispose of assets, other than in accordance with the Long Term Plan

·      The power to adopt a Long Term Plan, Annual Plan or Annual Report

·      The Power to appoint a Chief Executive

·      The power to adopt policies required to be adopted and consulted on under the Local Government Act 2002 in association with the Long Term Plan or developed for the purpose of the Local Governance Statement

·      The Power to adopt a remuneration and employment policy. 

ii.     Noting that all decisions made by these committees of the whole must be reported to Council as soon as is practicable in the circumstances

c.     Authorise the Chief Executive (including anyone appointed to the office in an Acting capacity) delegation to make decisions in respect of urgent matters, as an emergency power to be exercised only to the extent that the Council is prevented from making decision in the circumstances, to ensure the continuation of council services to the extent possible during the COVID-19 Alert Three and Alert Four settings, from the time of resolution until such time as the Alert level is reduced by the government for Hawke’s Bay.

i.      Noting that this delegation is in addition to any existing delegations already held by the Chief Executive

ii.     Noting that the Chief Executive will, so far as is practicable in the circumstances, consult with the Mayor, Deputy Mayor and standing committee chairs before exercising this delegation to make decisions 

iii.    Noting that this delegation excludes the matters not able to be delegated by Council as per clause 32(1) Schedule 7 Local Government Act 2002

iv.    Further noting that the Acting Chief Executive Neil Taylor has confirmed his willingness to continue in the role as required

At the Meeting

The Acting Chief Executive spoke briefly to the report, noting that the intention is to provide some certainty to the District Health Board (DHB) in the event of a worst case scenario from COVID-19. It was noted that land is also designated at Park Island for such an emergency but the activation of this is a longer process if required.

There has been no specific increase in plot purchases.

Further clarity is being sought from the DHB as to any changes that might be required in caring for the deceased from the COVID-19 response.

Officer’s Recommendation

That Council:

a.     Approve delegated powers to the Chief Executive to halt any presale of burial plots for a period of two months or longer as required

Substitute Motion

Council resolution

That Council:

a.     Approve delegated powers to the Chief Executive to halt any presale of burial plots for a period of two months or for the duration of the pandemic response to COVID-19

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

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

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

Present

Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor, Wright

In Attendance

Acting Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing

Chief Financial Officer

Manager Environmental Solutions

Manager Property

Manager Community Strategies

General Manager, National Aquarium of New Zealand [to 1.05pm]

Team Leader Transportation

Team Leader Policy Planning

Senior Policy Planner

Administration

Governance Team

At the Meeting

The Director Infrastructure Services spoke to the most recent consultation with residents on the current funding proposal.

There have been changes in the expected total cost of the project both due to changes in scope and also increases in construction costs over the time taken to work through the funding structure.

Following questions from councillors the Director provided background to the project and outlined the impacts should it be decided not to go ahead with the work. The Director also spoke to the interaction between this work and the extensive assessment and initiatives for coastal hazards management being led by the Clifton to Tangoio Coastal Hazards Joint Committee.

Treatment of stormwater and some landscaping options to maintain some privacy for the properties, forming a type of ‘buffer zone’, have been looked at. Some brief discussion took place in relation to the resident not in support of the proposal, noting their concerns.

ACTION: “Local Purpose Reserve” to be defined

Council resolution

That Council:

a.     Note the change in scope of the project to now include stormwater conveyance, landscaping and third party supervision.

b.     Resolve to proceed with the project.

c.     Approve the updated project Cost Estimate that now includes additional items, including landscaping, stormwater conveyance and third party supervision and to fund the additional cost from loans.

d.     Approve the private contribution to be held at the same amount as per the 2019/20 consultation, resulting in a change to the public/private split to 2.5% private/ 97.5% public.

e.     Note that Council have committed to further consultation with residents of Whakarire Avenue to development a landscaping plan and that this will be undertaken as the project commences.

At the Meeting

The Director City Strategy spoke to the report, noting that it is a once in a generation project for Napier, and outlining in brief each of the component parts of the project. It was noted that there may be some impacts from COVID-19 on the original master planning, for example in relation to any possible hotel development, which will be worked through.

Council resolution

That Council:

a.     Receive and accept in principle the recommendation from the Library site project steering group to pursue the development of the library on the Station Street site.

b.     Endorse the formation of a Civic Precinct Steering Group.

c.     Endorse the Civic Precinct Steering Group Terms of Reference.

d.     Note that the Civic Precinct Steering Group will undertake comprehensive master planning for the Civic Precinct including any important linkages beyond that site, keeping Council informed ahead of specific recommendations to Council on the master planning.

e.     Note that the Civic Precinct Steering Group will recommend key consultation steps to Council for the project

f.     Note the annual plan will include the preferred site for the library, and that any feedback on this through the annual plan can be forwarded to the Civic Precinct Steering Group for consideration in the master plan development

g.     Resolve that the time capsule and mural relating to the civic building be housed in temporary storage prior to demolition of the old civic site.

At the Meeting

The Team Leader Transportation spoke to the report, noting the level of interest in the project from the community, and the importance of introducing safety measures to look after pedestrians and help reduce vehicle collisions.

The extended roundabout design will allow current movements to continue, although some slowing of through traffic will occur. Only one carpark has been lost in the process, with significant improvements through pedestrian crossings and traffic calming now proposed.

Cr Mawson briefly left the meeting at 11.13am

Following questions from councillors it was affirmed that it is anticipated that there will be no impacts on shops being able to operate during the works. The Team Leader also noted that they have been liaising with NZTA in relation to works that agency will be undertaking next year to ensure that it is integrated well with this project.

No additional risk has been created for emergency service access and for those pulling out of the way of these vehicles. The bus stop and shelter are intended to be brought as close to the northern crossing as possible. 

Cr Crown briefly left the meeting at 11.24am

A brief discussion on the possible consultation process was had; the design and consultation can be started fairly quickly. It is anticipated that work could start just after Christmas, depending on any unexpected adjustments from COVID-19 management restrictions.

Council resolution

That Council:

a.     Note the intent of the project is to improve safety for road users, particularly vulnerable road users.

b.     Note that further engagement is planned, particularly a more targeted engagement with stakeholders to ensure that construction has a minimal impact on the vibrancy of the area.

c.     Note that a communications and engagement strategy will be developed following approval of proposed changes.

d.     Approve the proposed changes to the Kennedy Road/Douglas McLean Avenue and Kennedy Road/Nuffield Avenue/Wilding Avenue intersections and separation of the Marewa Shops parking lane.

At the Meeting

The Chief Financial Officer spoke to the report, touching on the variables which have contributed to the current surplus. The favourable variances were partially offset by unfavourable variances in the same period, including unfunded costs for the Aquarium business case, some legal costs and other operating costs.

It was recognised that there will be impacts seen in the next quarter from the COVID-19 response.

Council resolution

That Council:

a.     Receive the Quarterly Report for the six months ended 31 December 2019.

At the Meeting

The Team Leader Policy Planning spoke to the report, noting that the Pandora area has been identified as a key strategic area which has a number of different ambitions associated with it. As Council is a large land owner in the area, assessment for potential rezoning was undertaken by an independent to manage any potential conflict of interest.

Following questions from councillors the Team Leader spoke to discussions underway in relation to a stormwater overlay to be included in the District Plan, which would work hand in hand with the Stormwater Bylaw by managing consenting and discharges at the time of site development.

ACTION: The District Team will ensure that Māori engagement is as inclusive as possible, liaising with all appropriate groups.

Council resolution

That Council:

a.     Endorse officers to proceed with further analysis and stakeholder engagement on Option 4: Stormwater Overlay and relaxation of existing Mixed Use Zone; and

b.     To request officers to report the conclusions of the further analysis and stakeholder engagement for Council’s consideration prior to adopting a policy position for the draft District Plan release in November 2020

At the Meeting

The Team Leader Policy Planning spoke to the report noting that there will be adjustments required in recognition of the impacts of COVID-19.

Early consideration and discussion in relation to a possible review of the Heretaunga Plains Urban Development Strategy (HPUDS) is already underway, noting that there has been a lot of national policy development that would also impact on it. It was noted that Hastings District Council have also indicated an interest in reviewing the current strategy.

Page 195 of the agenda lists historic character areas, the definition of which is made at a national level. Independent historic experts have been engaged to assess Napier’s structures to identify cohesive areas that present the most representative examples of architecture as a “Snapshot” in time.

While COVID-19 has impacted on consultation processes, there will be future opportunities for people to engage. It was noted that the District Plan has an extensive time frame which will outlast even COVID, and good future planning for a strong community always underpins the process. However there is opportunity for Council to review the City Vision document if required, to give indications of any desired changes in response to the impacts of COVID-19.

ACTION: District Plan Team to advise which street are included in the Napier South character area.

That Council:

a.     Endorse ‘in principle’ the recommended policy approach outlined in Appendix A for specific work streams involving a public good component Council resolution in order to engage with key stakeholders prior to preparing a Draft District Plan; and

b.     To request officers to report on the conclusions of the stakeholder engagement for Council’s consideration, prior to adopting a policy position for the draft District Plan release in November 2020.

At the Meeting

The Team Leader Policy Planning spoke to the report, noting that the Strategy was initiated in 2014. Discussions in relation to the contributory fund are now underway, and reporting back through the partner Councils will increase to ensure that all parties are aware of the conversations underway.

A workshop with all councils was intended for early March but had to be postponed.

ACTION: It was proposed that a workshop be arranged to discuss Napier’s position on the contributory fund prior to the rearrangement of the joint workshop.

Council resolution

That Council:

a.     Note the information contained in the meeting notes from the Coastal Hazards Strategy Joint Committee meeting held 4 February 2020

b.     Adopt the Terms of Reference as recommended by the Coastal Hazards Strategy Joint Committee on the meeting held 4 February 2020

At the Meeting

The General Manager, National Aquarium of New Zealand spoke to the report noting the challenges to resourcing support of the kiwi breeding seasons, which can be quite a large part of the year. There would be significant benefits to the proposed arrangement with Kiwis for Kiwi both in terms of cost savings and also training and development opportunities for staff.

There may be some adjustments to the timing of any ‘move in’ of Kiwis for Kiwi, although the potential impacts of COVID-19 on this are as yet unknown.

Some discussion took place as to the level of interaction Council would maintain with the site and the existing birds over the lease. Some specific chattels are included in the lease; they will be maintained by Kiwis for Kiwi during the term of the lease and returned to Council.

Some discussion took place as to how costs could be reduced or mitigated in light of the impacts of COVID-19, for example by undertaking maintenance internally.

Council resolution

That Council:

a.     Approve in principle (including key proposed lease conditions) the leasing of part of the Offsite Kiwi facility to a third party operator, Kiwis for Kiwi.

b.     Note that a draft lease will come back to Council for approval pursuant to the Reserves Act 1977.

At the Meeting

The Manager Environmental Solutions spoke to the report, noting the challenges regarding the timing of the submission period which led to the Interim Submission being prepared.

The Ministry’s proposal was supported, but the policy writers were challenged to consider the variety of implications including on enforcement as well as the community well-beings.

Some discussion took place as to how potential cost increases for people following the rules could be addressed, noting that this was raised to the Ministry as a likely issue.

Council resolution

That Council:

a.     Endorse the interim submission to the Ministry for the Environment.

At the Meeting

The Manager Sport and Recreation spoke to the report, noting that there is a substitute motion proposed by Cr Price and seconded by Cr Taylor which is intended to allow the work to progress, as it is already funded.

The intention of the Working Group is to investigate opportunities to create more court space for Napier, alongside the Regional Indoor Sports and Events Centre Trust (RISEC) and the Pettigrew Green Arena (PGA) Trust Board.

Cr Mawson left the meeting briefly at 1.19pm

It was noted that it will be important to be clear where any operating costs will land, so that the general rate payer is not unintentionally penalised. Any funding decisions will be brought back to Council.

Officer’s Recommendation

That Council:

a.      Approve the formation of the Indoor Sports Working Group including the establishment a terms of reference.

Substitute Motion

Council resolution

That Council:

a. Approve the formation of an indoor sports working group 

b. Appoint: Councillors Price (chair), Boag, Mawson and Taylor. Jon Kingsford, Glen Lucas, Dan Rodden (PGA) and Ryan Hamblleton (Sport Hawke’s Bay)

c. Delegate the formation of a terms of reference to the working group, to be provided back to council. 

At the Meeting

The Manager Property spoke briefly to the report, noting that Council is acting under delegation from the Department of Conservation in this decision.

It was noted that the Sea Scouts are a very active community group; they do not have exclusive use of the land adjacent to the building leased and work in with other sporting groups. The building is leased out to other groups where possible.

Council resolution

That Council:

a.     Agree to enter into a ground lease pursuant to Section 61(2A) of the Reserves Act 1977 with the Scout Association of New Zealand for the land at 808B Meeanee Quay, Westshore for ten years with one right of renewal.

At the Meeting

The Mayor noted that the Prime Minister’s announcement that the country was moving into Alert 3 and shortly into Alert 4 was made during this meeting. The regional response was initiated extremely quickly and has been acknowledged at a national level.

Council resolution

That Council:

a.     Receive the draft minutes of the Civil Defence Emergency Management Group Joint Committee meeting held on 23 March 2020.

Council resolution

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

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.  Funding approval

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.

Substitute Motion

Council resolution

That Council:

a.      Approve $450,000 from Parklands being the balance to complete the Detailed Business case for the National Aquarium of New Zealand, now that confirmation of funding from the Provincial Growth Fund was not successful.

b.      Note that decision points remain to be made in relation to the future of the National Aquarium of New Zealand following the implications of COVID-19 and the uncertain future of the Detailed Business case.

c.       Direct Officers to release the decision into the public minutes.

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

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

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