Agenda of Ordinary Meeting of Council

Ordinary Meeting of Council - 04 June 2020 - Open Agenda Item 1

Agenda Items

1. Wastewater Outfall Report

Type of Report:	Legal and Operational
Legal Reference:	Resource Management Act 1991
Document ID:	931230
Reporting Officer/s & Unit:	Catherine Bayly, Manager Asset Strategy Cameron Burton, Manager Environmental Solutions

1.1 Purpose of Report

To both:

· inform Council of an update to the status of the Awatoto Submarine Wastewater Outfall which conveys treated wastewater to the Pacific Ocean, and to;

· enable decisions to be made to bring forward funding for an expedited repair, renewal or replacement of the outfall structure.

Officer’s Recommendation

That Council:

a. Note the current status of the submarine wastewater outfall:

i. As previously reported, there remains some seepage of wastewater from sealing gaskets which form part of a bespoke fibreglass joint section of the subsurface outfall pipe structure;

ii. Despite efforts, staff have not been able to identify a way to quickly fix this seepage without putting the fibreglass joint at risk of rupturing;

iii. That frequent testing of the coastal waters surrounding the area of seepage continues to show de minimus environmental effect of those waters, caused by this seepage;

iv. That Hawkes Bay Regional Council (HBRC) have recently indicated (on 25 March 2020) that Council must take the following actions:
1) Undertake short-term repairs to mitigate the leak from the joint leak by 30 October 2020
2) Provide long-term options for repairing the joint in the outfall pipe by the same date (30 October 2020)

v. That HBRC have informally notified Council of their intention to pursue enforcement action against Napier City Council to cease the discharge at the joint if the timeframes above are not met.

vi. That a further leak has been discovered within 100m of the fibreglass joint. Divers have been to the site with the aim to repair and have found that this is an old repair that has been damaged by an anchor, or other, and will need an additional repair.

vii. Tight timeframes to effect a repair increases the risk associated with delivering a short-term fix, rather than facilitating long-term solutions which will provide better outcomes.

b. Endorse staff to:

i. Seek a variation to the current resource consent to authorise the discharge of wastewater via seepage at a position other than that currently authorised (at the fibreglass joint location);

ii. Seek early provision of funding assigned for later financial years in the Long Term Plan (LTP) to enable the strategic and planned replacement of the wastewater outfall, including better treatment options to facilitate a more highly treated wastewater in the future.

c. Approve funding to be released from Wastewater Reserves to attempt a fix of the two seepages and to start on investigation works for replacement of the outfall ($2m has been put forward in the 20/21 Annual Plan).

d. Approval to attempt the lowest risk repair option of the fibreglass joint to address Regional Council’s repair timelines.

e. Receive the Beca Ltd Report entitled “Napier City Council – Wastewater Outfall – Issues and Options” dated 15 May 2020

1.2 Background Summary

· The 1.54km long wastewater sea outfall pipe was installed in the 1970s. The outfall pipe had issues from early stages due to poor construction methodology and design. The pipe has been installed in two sections and connected with an in-situ joint approximately 700m offshore. Due to a misalignment of the pipe ends at the joint, a fibreglass joint was installed in 1984. This joint is the weakest point of the outfall pipe.

· According to available information, the designed vertical alignment of the pipe was not met during construction. The seaward end of the diffuser settled below the seabed at an early stage after construction, causing issues with performance of the diffuser. Inspection of the pipe has revealed several historical leak repairs to the pipe. Overall, there have been many issues with the outfall pipe and diffuser from the beginning.

· Historically the submarine outfall has not been regularly inspected. As part of recent improvements to planned maintenance, divers inspect the pipeline and diffusers annually. During these inspections, ports of the diffusers are cleaned. However, not all the diffuser ports are functioning due to blockages, missing diffuser parts (damaged by fishing trawlers or logs rolling on the sea bed) or they are buried under an ever-changing seabed.

· In 2018 specialist diving contractors were engaged to undertake a condition assessment over the full length of the outfall pipeline.

· In August 2018, diving investigations found several sticks, pine cones, fishing net and weed inside the outfall.

· The specialist divers found a small leak coming from the pipeline approximately 70 metres from the shore. This leak was subsequently fixed using stainless clamps and rubber sheaths and subsequent assessments have found this to be in good condition.

· The divers also found an area of more significant seepage discharging from rubberised gaskets between a one-of-a-kind custom-built fibreglass joint section, 700m from shore. The seepage has been calculated at approximately 10 litres per second, when normal flow is in the order of 300-400 litres per second.

· Visibility is zero at the site, due to coastal interaction with the river sediment in the area.

· In late April 2020 an additional plume slightly closer to shore from the joint was discovered during a drone monitoring inspection. This seepage is from a previous repair that has now failed. The dive team believe that the pipeline at this point has sustained a significant impact. Divers were mobilised at the start of May and have identified an old repair with a steel clamp and cement bags. There are longitudinal and radial cracks in the pipe under the clamped section and there has been some displacement of the pipe. Although it was intended that a repair be made at that time, this was not possible as the required repair was deemed to be more complex than anticipated.

· HBRC were notified of the second seepage by phone and email on the 5th May 2020.

· Work is underway to legally protect the outfall under the Submarine Cables and Pipelines Protection Act 1996, (the same piece of legislation that protects the power cables under Cook Strait). This allows much larger penalties for those who are found to have caused damage, than what is currently available.

· The consent for the Outfall expires in 2037

· The capacity of the outfall is currently constrained due to the integrity of the historical repairs. The Wastewater Treatment and Outfall Master Plan that is currently being developed and produced later this year will help to determine future requirements for the full replacement of the outfall.

Systematic seepage detection:

· There is no formal process for seepage detection and for such a challenging coastal environment. It is very difficult to detect small seepages.

· Pressure monitoring is undertaken and recorded, but the nature of the system is such that the operation of the pump and air valve along with the tide and wave action are likely to mask any small seepages.

· There are frequently large movements of sediment in the bay (up to 1.5m) following storms which can bury the pipeline which can also have an effect on monitoring.

Offshore Environmental Monitoring:

As well as monitoring the quality of the raw and treated wastewaters being discharged to the outfall and subsequently the ocean, the Environmental Solutions Team carry out environmental effects monitoring by boat at the authorised discharge site.

Since the discovery of the seepage from the joint in 2018 the Environmental Solutions Team have increased surveillance of the site, including:

· review of footage from the specialist divers;

· scheduled deployment of our drone to provide aerial imagery of any visible plumes;

· additional environmental effects monitoring by boat in set positions immediately above and in a series of positions surrounding the joint;

· bacteriological nearshore sampling along the coast from East Clive to Town Reef to ascertain trends and effects;

· installed cages of mussels which after a period of saturation were analysed for viruses to ascertain impacts of the wastewater outfall and seepage upon human health of those collecting kai moana;

· initiated a variation to the current resource consent to authorise the additional seepage from the joint.

It is this proactive monitoring that has ascertained the second area of seepage, further towards the shore from the joint.

To date, the laboratory analysis of samples collected have shown very little impact caused by the seepage at the joint. Results are variable due to multiple factors at the site, but the following table provides a summary of findings of Faecal coliforms:

Date	Faecal coliforms at diffuser	Faecal coliforms at the joint
27 Aug 2018	N/A	<1 cfu/100mL
12 Nov 2018	700 cfu/100mL	<1 cfu/100mL
12 Mar 2019	500 cfu/100mL	38 cfu/100mL
09 May 2019	3,500 cfu/100mL	30 cfu/100mL
16 Aug 2019	2,100 cfu/100mL	<1 cfu/100mL
06 Nov 2019	<1 cfu/100mL	<1 cfu/100ml
13 Jan 2020	8,100 cfu/100mL	<1 cfu/100mL
29 Jan 2020	11 cfu/100mL	6 cfu/100mL
18 May 2020	Samples still being analysed at time of writing

In addition to this ocean surface monitoring, we have had the divers conduct sampling of waters surrounding the joint to ascertain levels of dilution at the joint, and at 2 metres and 5 metres above and 2 metres and 5 metres away on North, South, East, West headings.

Again, results are variable depending upon ocean swells, currents and pumping rates at the time of the sampling, but do not show significant impacts.

For the nearshore coastal waters monitoring since 2018 the highest recorded levels of Faecal coliforms were 130 cfu/100mL at Short Groyne (adjacent the Hastings wastewater discharge), and 38 cfu/100mL at the joint (as shown above). From a public health perspective, through the possible collection of kai moana at Town Reef, the highest reading to date is 4 cfu/100mL.

The Environmental Solutions Team will continue required monitoring and additional monitoring, and will soon carry out another virus assessment using mussel cages and will continue to build on data including additional subsurface dispersion sampling from the divers when next engaged.

Possible Repair Option:

NCC engaged Beca Ltd to provide an “Issues and Options” report for the main leak on the outfall. All of the options have similar risks, with the most notable being the potential to damage the joint to the point where a large volume of wastewater is discharged at 700m offshore instead of the consented discharge point, 1.5km offshore.

Repairing the fibreglass joint leak has a number of constraints. The main constraints are:

· Available storage at the treatment plant for a shutdown of the plant is enough only for approximately 4 hours at normal dry weather flows. There is a risk of not completing the repair within this time period, only simple repairs can be completed without having additional storage at the plant.

· The fibreglass joint is fragile and any disturbance to the fibreglass or pipe supports during the repair may disjoint the pipe making it difficult to re-joint / re-attach the fibreglass joint.

· This is a pre-stressed pipeline and maintaining the continuity of structural integrity of the pipe during the repair is not easy in a soft, changing seabed.

· Site conditions: Working on the seabed in often zero visibility, weather and sea state.

Council’s Infrastructure team, and the Beca team have identified a number of repair options, these are summarised in the following table:

Repair Option

Indicative cost ($)

Comments

Inserting a caulking cord or hemp into the flanged joints.

Recommended

$200,000 plus

1 week to undertake

Medium risk. Cost is relatively low.

The success of this option is unknown and may be limited. This option can be actioned prior to HBRC’s deadline.

Grout encasement of whole joint including supports

Not Recommended

$500,000

Specialist Construction.

2 months

Medium to high risk. May take a longer time to repair causing storage issues at the plant. This places a large deadweight at two pipe sections, potential for settlement and further damage to the surrounding concrete pipe.

Additional storage at the treatment plant would be required.

Grout filling of the fibreglass box

Not Recommended

$500,000

1 week

High to Extreme risk. Grout may block the pipe and diffusers partially or fully. The structure inside of the fibreglass box has not been confirmed.

Install a PE sleeve liner

Not Recommended

Not costed

3 months

Not currently feasible

Outfall might have to be taken out of service for up to 8 weeks. This option is not viable given the unknown internal pipe condition and obstructions, miss alignment at the fibreglass joint, no storage, and a reduction in internal diameter impacting flow rates.

Install a chamber and new seaward half of the outfall

Not Preferred

$12m estimate

Several Months

It is not advisable to replace half of the outfall without the results of the WW Treatment and Outfall and Master plan. It would be more cost effective to undertake a full planned replacement.

Consent Variation

Underway

$100,000

Enable the fibreglass joint leak to continue until the assets is replaced if the repair is not effective.

Early Replacement of the Outfall

Preferred

$33-$40 million (requires investigation)

12 months plus investigation and consenting period

Investigation works can be started to get the replacement project underway.

The value of the replacement could be $20-$40m, more work is required to develop a reasonable cost estimate.

The lowest risk option for the repair of the fibreglass joint section and associated o-ring seals and bolted sections would be:

· Diving on the pipeline at a time where tidal action, wave action and availability of specialist divers aligned;

· Cessation of discharge of wastewater by shutting down the wastewater treatment plant for a period of time;

· Unbolting the top part of the fibreglass joint section;

· Scraping detritus build-up to enable a smooth working area;

· Inserting greased rope and o-ring seals;

· Re-installing the top part of the fibreglass joint section.

There are significant risks associated with any repair option. Risks associated with the proposed option are identified in section 1.5.

Variation to Resource Consent

· A variation to the current resource consent is nearing completion which seeks to authorise the discharge of treated wastewater at an additional position, being the joint.

· The intention is to conditionally authorise the seepage discharger of treated wastewater at the joint, as Council are not currently legally authorised to do so. This will be a short-term consent to relieve some pressure until a permanent solution to the outfall pipe is implemented.

· An Environmental Effects Assessment has been developed by the Environmental Solutions Team, and this is awaiting an external peer review from a marine ecotoxicologist to enable independence prior to lodging with Hawkes Bay Regional Council.

· This application will proffer under the Augier Principle an emergency response plan which is to be developed both to address any sudden break in the outfall pipe (in any position), but also to address concerns of a breakage caused by the expeditiousness imposed upon Council to enable a short-term repair attempt. The choice of repair type and the methods of said repair, will mean the emergency response plan has to be dynamic enough to address the implications of a failure due to that repair.

· It is likely that lodgement of this application for variation to the resource consent could be made as soon as the week of the presentation of this paper.

Outfall Renewal

The Wastewater Outfall is nearly 50 years old. The recently identified seepage at an old joint is indicative of the condition of the structure and highlights that Council will need to increase expenditure to keep the outfall operational and operating within its consent conditions. This additional seepage also highlights the increasing risk of failure of the asset.

With escalating maintenance costs, current capacity constraints and increased risk of failure, it is recommended that Council start preparing for the replacement of the outfall and identify required funding to start this process prior to the consent renewal.

1.3 Issues

· Pre 2003 there have been 8 significant leaks that have been repaired.

· 2018 Small seepage at 70m – repaired.

· 2018 Larger seepage at 700m.

· End of diffuser is plugged as it is 1-5m below seabed, full length not used.

· Diffuser 120m long, including pre-tensioned structure.

· News smaller seepage discovered at 600m offshore in May 2020.

· The outfall is constrained and does not meet the required levels of service.

· Difficult repair conditions with no visibility and dangerous conditions for divers in a contaminated environment.

· Undertaking a repair on the outfall could result in further damage to the outfall.

· There is the likelihood of enforcement action if we do not undertake a repair on the fibreglass joint by October 2020.

· The outfall is nearing end of life and the costs to maintain it and repair leaks is escalating.

1.4 Significance and Engagement

The work proposed in both the short term and longer term to repair and replace the outfall represents a significant level of investment. The proposed repair cost is included in the draft annual plan to be consulted on in May/June of this year. Investment for the renewal of the outfall will need to be consulted upon in the 2021-31 LTP.

1.5 Implications

Financial

Council’s specialist consultants have provided a quotation to undertake repairs on both of the existing leaks. While the cost of these repairs is estimated at around $250,000, Council officers recommend that Council provide $400,000 for repair attempts. This will allow for poor weather conditions or issues with repairs.

The consent variation process is estimated at around $100,000.

In the 20/21 Annual Plan, Council officers have put forward $2,000,000 for rehabilitation works for the outfall. This funding would be able to cover the costs of the two leaks repairs to rehabilitate the asset. The additional funding can be used to commence investigation and design works for the outfall replacement.

With increased risks around failures, Council will need to increase expenditure on maintenance of the outfall pipeline and will need to allow for additional leaks. These annual costs are escalating and during the next LTP period staff will be forecasting $400,000 per year to inspect and maintain the outfall.

Due to the issues with the outfall, Officers would like to bring forward the replacement of this asset. In the current Long Term Plan, a total of $11,650,000 of funding was forecast, with the majority of this occurring between 2024 to 2028 for the assets replacement.

The total cost of the replacement is estimated to be significantly more than that identified in the last LTP. Council staff recommend that the replacement of the Outfall Pipeline be brought forward, with planning works starting in 2020 and replacement provided for in the next LTP.

Social & Policy

N/A

Risk

There are significant risks associated with any repair option. Risks associated with the lowest risk option include:

· There is limited storage capacity at the treatment plant, the wastewater system wet wells and pipework which could cause an overflow to a more sensitive environment than the area at the ocean outfall;

· Time pressure because of the lack of storage being put on the specialist divers;

· High risk diving work;

· The top part of the fibreglass joint section could warp, leaving that part unable to be replaced meaning most or all wastewater would then be discharged at the 700 metre offshore position for the foreseeable future;

· Due to the top part of the fibreglass joint section being constructed in a bespoke fashion and off-alignment of the pipes, it is not able to be readily replaced;

· The removal of the top part of the fibreglass joint section could release pressure on the concrete block below the structure and cause rupture of the remaining part of the structure also meaning that all wastewater would then be discharged at the 700 metre offshore position for the foreseeable future;

· The structural capacity of the fibreglass joint section and its resilience to the removal of the top section is unknown.

1.6 Options

The options available to Council are as follows:

a. Option 1 – Do nothing. It is unlikely that the Regional Council will not agree with this option, resulting in taking enforcement action against the Council. This can also cause damage to the Council’s reputation. This option is not recommended.

b. Option 2 – Applying for a variation to the existing consent to allow discharge from the existing leak as mentioned above. Sampling results suggest that the environmental impact may be minor. There is also a risk of worsening the leak resulting in larger discharge from this location over time. A proper contingency plan has to be in place as a precaution. This option is worth proceeding with.

c. Option 3 – Repairing the damaged leak by caulking method as this is the lowest risk and least cost option. There is a risk of an incomplete seal. Careful execution of work will reduce this leak. There is still the potential that the pipeline could be damaged.

d. Option 4 – Repairing the leak by grout encasement of the whole joint. There is a high risk with this option by damaging the joint further due to weight of the repair material, which may cause further damage. This option has not been recommended by the consultant or officers.

e. Option 5 – Repairing the leak by grout filling of the fibreglass box. The repair is easier, but there is a high risk of blocking the pipe and diffusers. This option is not recommended.

f. Option 6 – replace the seaward half of the outfall and install a joint chamber – this may cost around $12m, will not address other issues around the outfall’s capacity, and does not address the risks associated with the other half of the outfall.

g. Option 7 – Replacement with a new outfall. The recent failures point to the need to expedite the renewal of the outfall and note that Council spending on maintaining the outfall is starting to increase significantly.

1.7 Development of Preferred Option

The preferred options for managing our risks of failure and enforcement actions by Regional Council are b and c above, and will involve the following:

1. Apply for a consent variation for the leakage at 700m to enable an ongoing discharge at this point until the joint is fully repaired or the outfall is replaced.

2. Develop an emergency response plan to manage additional damage or failure of the pipeline

3. Engage our specialist dive team to undertake the lowest risk repairs possible for both leaks.

4. Start planning the early replacement of the outfall to minimise risks, increase levels of service and tie in with improvements to the Wastewater Treatment Plant

1.8 Attachments

a Beca Ltd "Napier City Council - Wastewater Outfall - Issues and Options" 15 May 2020 ⇩

Ordinary Meeting of Council - 04 June 2020 - Open Agenda Item 2

2. Napier Aquatic Development Update

Type of Report:	Operational and Procedural
Legal Reference:	Local Government Act 2002
Document ID:	933460
Reporting Officer/s & Unit:	Keith Marshall, Interim Chief Executive

2.1 Purpose of Report

To seek agreement in relation to the next steps in relation to the Napier Aquatic Development.

Officer’s Recommendation

That Council:

a. Note that Council, being conscious of the widespread community interest around progressing the previously proposed Napier Aquatic Centre Development, wishes to take some time to reconsider the various options.

b. Resolve that Council will commence some further consultation on the Napier Aquatic Centre Development as part of its Long Term Plan 2021-31 with a view to ensuring that the whole community is involved in progressing any finally agreed project in due course even though that might not determine a final option until a future annual plan.

c. Note that Council prefer not to continue with the tender for the Napier Aquatic Centre Development as issued on 21 May 2019 in favour of further considering the project as part of the Long Term Plan 2021-31.

d. Note that Council had provided $5m in the draft Annual Plan 2020/21 on the basis that it wasn’t sure of the court outcome at the time, nor of the best way to progress matters, and therefore had left itself some options to proceed while also noting the residual balance of the project sits in future years.

e. Note that Council are consulting on its draft Annual Plan 2020/21 and can make the necessary changes to move the current budget to future years for the Napier Aquatic Centre Development as part of deliberations and community feedback.

f. Resolve to transfer $500k from the reserve funding currently allocated for the pool in 2020/21 to operating costs to allow for further site investigations and design requirements at Onekawa site or any other requirements for potential consultation and further consideration as part of the Long Term Plan 2021-31.

2.2 Background Summary

Council undertook consultation as part of its Long Term Plan 2018-28 to look at options for providing additional pool space in Napier including a new pool at a new location or an extension to the existing pool. The consultation feedback found small favour of a new pool located on Prebensen Drive (51% compared to the alternative option of 49%).

Council adopted as part of its Long Term Plan 2018-28 to progress a new pool at a new site, however these plans were put on hold subject to a Judicial Review around the process that Council undertook. The Judicial Review judgement of 30^th April saw all 9 causes of action being dismissed by the Court.

There have been a number of seminars held with the new Council to discuss the history and background surrounding the pool, right through to the resolutions of Council as part of the Long Term Plan 2018-28. This Council have expressed that it is their expectation that any decision around the expansion of the existing pool, or to progress the new pool be made ensuring that the whole community is involved in progressing any project in due course even though that might not determine a final option until a future annual plan.

To enable this outcome to be achieved, it is recommended Council take the time to work through how to best move forward in the best interest of the city. And as such, it is crucial that the whole community is involved when making such an important decision for the city. Council are open to re-examine how this might happen.

To achieve this, it is proposed that this conversation is progressed with the community through the Long Term Plan process, which would mean that it is anticipated that no progress on a new pool would start until 2021/22.

2.3 Issues

Tender

Council were in a tender process at the time of the Judicial Review to progress a new pool on Prebensen Drive. If it is the preference not to progress the tender and tenderers will need be advised of Councils decision.

Funding

Due to the pandemic and impact on the financial position of Council, no funding was provided for any further site investigation for Onekawa or any other work required to satisfy Councils requirements to further consultation with the community. A resolution to change funding from capital to operating from reserves can be considered if Council wished to advance this to obtain a better understanding of the site conditions prior to consultation of the Long Term Plan 2021-31.

LGA Requirements

Council are responsible for ensure that the Local Government Act requirements are met and whether the significance and engagement policy requirements have been met.

2.4 Significance and Engagement

Consultation on next steps may be reconsidered as part of the Long Term Plan 2021-31 or as separate consultation with the community. This will be subject to a Council recommendation and decision around next steps.

The three options are considered to go back to the community with, but not limited to, are:

o The proposed option at Prebensen/Tamatea Drives.

o A design with the same features and level of service as the proposed option amended to fit the Onekawa site (essentially the proposed option made to fit at Onekawa).

o Expansion built around the existing Ivan Wilson complex.

These options have not been fully investigated to date, and will require additional funding to progress. A resolution to progress funding has been provided in this paper. Consideration will be given to the development comparable options. Council will determine based on further information what options may be result in further consultation with the community.

2.5 Implications

Financial

There is currently $5m in the Annual Plan 2020/21 to allow Council to progress the pool tender if required. Council will have the ability to move the funding to future years as part of the deliberations of the Annual Plan 2020/21 based on what is resolved as part of this paper.

There will be additional costs associated with undertaking site investigations and potential design requirements (allowed $500k) associated with a proposed new layout of the pool as deemed necessary. Until such time a decision is made to progress with a pool, these costs are considered operating costs and not capital costs. Council have the option to transfer some funds from the reserves it currently had allocated to the project to meet these requirements without further impacting the ratepayer. This may mean additional loan costs should the pool project progress to meet the total cost associated with the expansion/new pool.

The Prebensen site has been prepared should this be the preferred option site, however will require moving and spraying to maintain while a final decision is made.

Project delays are likely to increase the overall cost of the project depending on the preferred option.

Social & Policy

N/A

Risk

There is financial risk to the project with time delays now anticipated, which will result in the overall cost of the project likely to be higher than what was originally signalled should a similar sized project be progressed.

Prior to the pandemic there was unmet aquatic demand in Napier. The future delays and growth of the city are likely to mean this gap might widen.

2.6 Options

The options available to Council are as follows:

a. Continue with the existing project as adopted in the Long Term Plan 2018-28

Advantage – all the planning has been done, and a pool could be delivered once the tender has been let. Costs should be in line with current budgets.

Disadvantage – a small group of the community expressed dissatisfaction with the pool proposal and the process undertaken, and therefore proceeding with the pool without again checking in on community opinion could result in further divisions in the community and a lack of a strong mandate to proceed.

b. Take further time and go back to the community with options as part of the Long Term Plan 2021-31.

Advantage – Provides community with an opportunity to have a re-think and provide more direction. Some pockets of community may have particular interest to get more involved.

Disadvantage – further time delay will increase construction costs for Prebenson Pool, if it is in fact that option the community selects.

c. Go back to the drawing board and reassess Napier’s aquatic facility options across all current and proposed facilities in Napier and Hawke’s Bay region.

Advantage – takes into consideration any funding from central government that may be successful for a regional pool, and may decrease the pool space requirement for Napier.

Disadvantage – will take longer to assess wider options and this could mean a delay in getting out the options to the community, and may not be possible to get full options scoped before December when consultation document for LTP. There is a risk that the proposed option may not make it into the LTP budget and therefore require an LTP amendment subsequently from July 2021.

2.7 Development of Preferred Option

Option B - Council will undertake further consultation on the Napier Aquatic Centre Development as part of its Long Term Plan 2021-31 and ensure that the whole community is involved in progressing such an important project for the city.

2.8 Attachments

Nil

Ordinary Meeting of Council - 4 June 2020 - Attachments

Item 3

Attachments a

PDF Creator

Ordinary Meeting of Council - 04 June 2020 - Open Agenda Item 6

6. Napier City Worker Redeployment Package

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	932631
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

6.1 Purpose of Report

To formally acknowledge and include the Napier City Work Redeployment projects in the Annual Plan 2019/20, noting any unspent funding in the current year will be carried forward into 2020/21.

Officer’s Recommendation

That Council:

a. Note that Council has received approval for $1,070,000 associated with Crown Worker Redeployment Package to be undertaken as soon as practicable.

b. Approve the receipt of these funds and execution of the agreement requirements.

c. Note that Council will have an obligation under the agreement to report to the Crown monthly on the progress of these projects

d. Note that the Council will have an obligation to report to the Crown at the end of the project

e. Note that Council will need to notify the Crown of any potential overspend associated with the proposed project

f. Note that the proposed funding will contribute to 30 jobs for Napier as a result of the delivery of these projects

g. Approve the Annual Plan to be updated to include the Crown funding and associated projects costs of $1,070,000, noting that any underspend on these projects as at 30 June 2020 will be carried forward into next financial year

6.2 Background Summary

On 16 March 2020, Cabinet agreed to a Worker Redeployment Package of $100 million, and noted that specific decisions on the draw-down of this package will be submitted to the Cabinet Committee for the COVID-19 Response for consideration (Cabinet Committee) [CAB-20-MIN-0108].

The Hawke’s Bay region will receive $14.94m (plus GST, if any) of this package, with Napier City Council receiving $1.07m (plus GST, if any) of this amount for urgent economic relief of its workforce to carry out the Project Elements approved by the Cabinet Committee and described in clause 4.

Napier City Council will use the Funding to achieve the following outcomes under the Hawke’s Bay Worker Redeployment Package to:

(a) redeploy people relatively quickly in Hawke’s Bay;

(b) provide alternative employment for 3 – 6 months for 30 workers; and

In delivering the Project, Napier City Council will ensure that all tendering, procurement, employment and training arrangements are met as outlined in the contract as signed by Ministry of Business Innovation, and Employment:

(a) prioritise the employment of local workers displaced by the COVID economic crisis;

(b) occur at pace, time being critical; and

As part of the requirement for the agreement with MBIE, Council must consider appropriate, measurable and achievable social procurement objectives. These objectives must reflect the local or regional need and be achievable taking into account the Project’s duration and scope. The agreed social procurement objectives may target any of the following outcomes:

· Increasing participation of Māori and Pasifika to deliver goods, services and works;

· Delivery of specific local training and employment opportunities, especially for Māori, Pasifika, women, and youth;

· Improving conditions for workers; and/or

· Supporting the transition to net zero emissions economy and helping the government meet its goal of significant waste reduction by 2050.

For the purposes of this clause a Māori and Pasifika owned business has a minimum of 50% ownership by person/s who have Māori and/or indigenous Pasifika whakapapa.

6.3 Issues

The costs of these projects are relatively low when considered on an individual basis. This will mean that they will be some risk to the level of design that can be achieved under these arrangements. This risk will be managed accordingly.

6.4 Significance and Engagement

N/a – this does not impact rates and under the Emergency Management requirements, Recovery of the community becomes paramount

6.5 Implications

Financial

Council	Description	Cost ($)	Job #
Napier District Council	Marine Parade Cycle Bypass - design and construct paths.	50,000	4
	Douglas McLean/Herrick intersection improvements	50,000	3
	Cross Country Drain Pathway (Sections) - design and construct paths.	70,000	4
	Hislop St shared path - design and construct paths.	100 ,000	4
	Westshore (Charles Street) Reserve and Playground Upgrade	150,000	4
	Toronui Drive pathway	200,000	4
	Meeanee Rd to boundary cycleway connection	250,000	4
	Pirimai LATM traffic calming	200,000	3
Totals		$1,070,000	30

Social & Policy

n/a

Risk

Under the agreement signed by MBIE, Napier City Council will advise the Ministry at any time it becomes aware that there is a high likelihood that Project costs may exceed the total funding amount. Napier City Council will need to obtain the Ministry’s prior approval to any cost escalation for which it intends to seek a contribution from the Ministry. In all cases the Napier City Council will be liable for at least 75% of the agreed escalation amount. This risk will be carefully managed.

6.6 Options

The options available to Council are as follows:

a. To execute the agreement between MBIE and Napier City Council to deliver the Worker Redeployment package projects as approved

b. Not execute the agreement between MBIE and Napier City Council to deliver of the Worker Redeployment package projects as approved

6.7 Development of Preferred Option

Note that Council has received approval for $1,070,000 associated with Crown Worker Redeployment Package to be undertaken as soon as practicable. The approval and receipt of this funds will see the execution of the agreement requirements.

Note that Council will have an obligation under the agreement to report to the Crown monthly on the progress of these projects, and will have an obligation to report to the Crown at the end of the project

Note that Council will need to notify the Crown of any potential overspend associated with the proposed project

Note that the proposed funding will contribute to 30 jobs for Napier as a result of the delivery of these projects

Approve the Annual Plan to be updated to include the Crown funding and associated projects costs of $1,070,000, noting that any underspend on these projects as at 30 June 2020 will be carried forward into next financial year.

6.8 Attachments

Nil

Ordinary Meeting of Council - 04 June 2020 - Open Agenda Item 7

7. Airport Director - Reappointment

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	932604
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

7.1 Purpose of Report

The purpose of this report is to recommend the reappointment of Sarah Park as a Director of Hawkes Bay Airport Limited (HBAL) and to notify Council of the pending retirement of Chairman Tony Porter and the recruitment process to follow for his replacement.

Officer’s Recommendation

That Council:

a. Approve the reappointment of Sarah Park as a director of Hawkes Bay Airport Limited for the period of one year, subject to Hastings District Council doing the same.

b. Note the retirement of Chairman Tony Porter from the Board of Hawkes Bay Airport Limited, noting that Mr. Porter will remain on the Board until the 2020 Annual General Meeting.

7.2 Background Summary

The Board is constituted to have four members appointed as follows:

Two directors will be appointed by the Crown

· One director will be appointed by Napier City Council

· One director will be appointed by Hastings District Council

The Chairperson shall be appointed by the directors.

By agreement the two non-Crown appointed directors are appointed jointly by Napier City and Hastings District Councils.

The current board together with the expiry dates of Directors is as follows:

Director	Appointment Date	Term End Date
Tony Porter (Chair) – Council’s appointee	1 July 2009	30 June 2020
Sarah Park – Council’s appointee	1 July 2014	30 June 2020
Wendie Harvey – Crown appointee	1 July 2016	30 June 2022
Taine Randell – Crown appointee	1 April 2017	30 June 2020

Potential appointments to the Hawke’s Bay Airport Ltd CCO on behalf of the partner Councils are considered by the Joint Appointments Committee, which is comprised of the Mayors of Napier City and Hastings District Councils. The members of the Committee have agreed to recommend that Sarah Park should be reappointed for a period of one more year.

This year three of the Board members come up for replacement with Mr Porter’s retirement and Mr Randell’s resignation forcing at least two changes to the board. Mr Randell is appointed by the Crown and the Minister has already made an appointment to replace Mr Randall, although the details of this have yet to be announced.

Given the requirement to appoint at least two new directors, the Joint Appointments Committee considered that the benefits of advertising the vacancy arising from Sarah Park’s term expiring, and was of the view that the benefits of advertising this vacancy are outweighed by the need to maintain some continuity on the Board at this difficult and challenging time.

Ms Park has been on the Board of HBAL since 2017 and has made a big impact since her appointment. Ms Park’s skill set complements that of the other board members. Given the significant changes to the Board this year along with the impacts of COVID-19 and the terminal redevelopment, having some continuity at the board for another year is recommended.

Ms Park has offered to stay on with the HBAL Board for another year if that is what is recommended.

7.3 Issues

The Joint Appointments Committee has recommended that Sarah Park be reappointed as a director of HBAL for one more year from 1 July 2020. The Airport is experiencing significant change at present with the expansion and upgrade of the terminal building and the impacts on the business from the COVID-19 virus.

7.4 Significance and Engagement

This matter does not trigger Council’s Significance and Engagement Policy or any other consultation requirements.

7.5 Implications

Financial

N/A

Social & Policy

N/A

Risk

The extension will ensure continuity of experience on the Board with two other directors stepping down, which is considered particularly important as the Airport navigates a variety of changes.

7.6 Options

The options available to Council are as follows:

a. Accept the Joint Appointments Committee recommendation to appoint Sarah Park for a period of one more year.

b. Reject the Joint Appointments Committee recommendation to appoint Sarah Park for a period of one more year.

7.7 Development of Preferred Option

Given that the board will have two new directors this year with the retirements of Messrs Porter and Randell it is recommended that some form of continuity be held given the current uncertain times as the Airport responds to the impact of COVID-19 and completes the terminal rebuild.

A one year extension to Ms Park’s term will allow this transition to take place more smoothly and provide a gap in the timing of the Council appointed directors.

7.8 Attachments

Nil

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Ordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 23 April 2020
Time:	10am – 10.16am
Venue	Council Chambers Hawke's Bay Regional Council 159 Dalton Street Napier

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, Manager People and Capability, Chief Financial Officer, Manager Business Transformation and Excellence
Administration	Governance Team

Apologies

Nil

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

The mayor thanked the community for staying at home and helping contribute to the reduction in new COVID-19 cases. She asked that residents continue to stay at home as the country moves into Level 3 to maintain the positive progress.

She noted that Council is working on a recovery plan for moving into Alert Level 3, and information on resources available support businesses and households in their own recovery planning is available on Council’s website.

She extended thanks to Council staff for the huge levels of work undertaken to prepare for Alert 4, to manage business as usual as far as possible in a very challenging environment, contributing to the local and regional emergency management response and revising Napier’s Annual Plan.

A meeting of remembrance for ANZAC Day led by the RSAs will be livestreamed from 6am Saturday 25 April 2020; this can be accessed via Council’s Facebook page as well as the mayor’s own Facebook page.

Minor matters raised

Napier Social Monitoring Report

Announcements by the management

Nil

Confirmation of minutes

Council resolution

Councillors Price / Chrystal

That the Draft Minutes of the Ordinary meeting held on 6 March 2020 be confirmed as a true and accurate record of the meeting.

Carried

Council resolution

Councillors Price / Chrystal

That the Draft Minutes of the Ordinary meeting held on 10 March 2020 be confirmed as a true and accurate record of the meeting.

Carried

Council resolution

Councillors Price / Chrystal

That the Draft Minutes of the Ordinary meeting held on 12 March 2020 be confirmed as a true and accurate record of the meeting.

Carried

Council resolution

Councillors Price / Chrystal

That the Draft Minutes of the Extraordinary meeting held on 24 March 2020 be confirmed as a true and accurate record of the meeting.

Carried

Council resolution

Councillors Price / Chrystal

That the Draft Minutes of the Extraordinary meeting held on 9 April 2020 be confirmed as a true and accurate record of the meeting.

Carried

Agenda Items

1. Actions From Previous Meetings

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	919754
Reporting Officer/s & Unit:	Cheree Ball, Governance Advisor

1.1 Purpose of Report

To present the actions from previous meetings for awareness.

At the meeting

It was noted that Council may need to be clearer in its communications in relation to the Civic precinct – some residents may be under the impression that Council is intending to build a hotel on the Civic site. It was specified that this is not the case. The existing building will be demolished, but it is anticipated that any development will be by another developer yet to be determined.

Council resolution

Councillors Browne / 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 20 March 2020

1. Audit and Risk Charter Review

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	898773
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

1.1 Purpose of Report

As set out in the Audit and Risk Committee Charter, the Committee will review this Charter in consultation with the Council at least once a year. Any substantive changes to the Charter will be recommended by the Committee, and formally approved by the Council. The last review of the Charter was undertaken July 2018.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

a. Review the Audit and Risk Committee Charter

b. Provide any recommended changes for Council approval

Carried

2. Health and Safety Report

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	908475
Reporting Officer/s & Unit:	Sue Matkin, Manager People & Capability

2.1 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 January 2020.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

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

Carried

3. Insurance arrangements

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	908314
Reporting Officer/s & Unit:	Bryan Faulknor, Manager Property

3.1 Purpose of Report

To outline Council’s current insurance programme, discuss any issues and to provide the opportunity for the Committee to provide feedback for insurance arrangements for the upcoming financial year 2020/21.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

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.

Carried

4. Sensitive Expenditure: Mayor and Chief Executive

Type of Report:	Operational and Procedural
Legal Reference:	N/A
Document ID:	896888
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

4.1 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 Simpson / Mawson

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.

Carried

5. Internal Audit: Fraud Gap Analysis

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	823532
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

5.1 Purpose of Report

To table to the Committee the internal audit on fraud gap analysis undertaken by Council’s internal auditors, Crowe.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

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

Carried

6. INTERNAL AUDIT: Payroll policy and procedures

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	908898
Reporting Officer/s & Unit:	Raewyn Robertson, Accounting Manager

6.1 Purpose of Report

To table to the Committee the internal audit on payroll undertaken by Council’s internal auditors, Crowe.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

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

Carried

7. External Accountability - Investment and Debt Report

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	908476
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

7.1 Purpose of Report

To consider the snapshot report on Napier City Council’s Investment and Debt as at 29 February 2020.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

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

Carried

8. External Accountability: Annual Plan 2020/21 Underlying Documents

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	909954
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

8.1 Purpose of Report

That the Committee review and provide feedback to Council on the Annual Plan 2020/21 underlying financial information prior to the final adoption of the reports.

At the meeting

It was noted that the documents taken to the Committee will be superceded in the revision of the Annual Plan.

Council resolution

Councillors Simpson / Mawson

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.

Carried

9. External Accountability - Long Term Plan process update

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	910182
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

9.1 Purpose of Report

To update the Committee on the processes and risk assessment for development of the Long Term Plan.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

The Audit and Risk Committee:

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

Carried

10. COVID-19 (Coronavirus) and Business Continuity Planning

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	911815
Reporting Officer/s & Unit:	Antoinette Campbell, Director Community Services

10.1 Purpose of Report

To inform the Audit and Risk Committee of Napier City Council’s planned response to the COVID-19 global pandemic.

At the meeting

There was no discussion on this item.

Council resolution

Councillors Simpson / Mawson

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.

Carried

Minor matters not on the agenda – discussion

Napier Social Monitoring Report

It is intended that the Napier Social Monitoring survey be undertaken more often than annually in the wake of the COVID-19 response. The next survey is being arranged for May 2020, using existing funding, and the questions will be adapted so the survey is more targeted towards recovery, wellbeing and confidence following the COVID-19 response.

PUBLIC EXCLUDED ITEMS

Council resolution

Councillors Simpson / Mawson

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

Carried

Agenda Items

1. Art Deco Trust

2. Actions From Previous Meetings - Public Excluded Items

Reports from Audit and Risk Committee held 20 March 2020

1. Legal Update

2. Appointment Process

3. Revera Lead Agency IaaS Status Report

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. 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.

The meeting moved into committee at 10.16am

The meeting then adjourned at 10.16am and moved into the open agenda of the extraordinary meeting of Council.

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

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

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

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 23 April 2020
Time:	10.16am – 10.33am
Venue	Zoom livestreamed via Facebook

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, Manager People and Capability, Chief Financial Officer, Manager Business Transformation and Excellence
Administration	Governance Team

Apologies

Nil

Conflicts of interest

Nil

Agenda Items

1. Annual Plan 2020/21 Update

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	921494
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

1.1 Purpose of Report

The purpose of this report is to update Council on the status of the 2020/21 Annual Plan in light of the rapidly changing environment due to the Covid-19 virus pandemic. The report also seeks a Council decision to defer the release of the Draft Annual Plan to enable the Council more time to assess the implications of the pandemic both on current operations and the impending 2020/21 financial year; and to present amendments to Financial Policies in response.

At the Meeting

The Director Corporate Services spoke to the report, noting that a revision of the 2020/21 Annual Plan is required to ensure that the impacts of COVID-19 and the national response are captured. This process will impact on the timeframes within which the Plan can be completed; at this point it is anticipated that consultation would take place in June/ July 2020 and the Plan could be adopted by the end of August.

This is a breach of the requirements outlined in the Local Government Act 2002 for Annual Plans. The Auditor was present at the recent Audit and Risk meeting and is aware of the change in timeframes and the implications. Council will also be notifying the Department of Internal Affairs after this meeting, the second of its requirements in anticipation of a time frame breach. Many councils across New Zealand will be in a similar position.

Discussion took place in relation to impacts on Council’s capital programme. It was noted that the community can access Council’s wider recovery plan on the website, as well as a variety of resources to support their own recovery as a business or household from COVID-19.

Thanks were extended to staff for the significant work that has been underway over the last few weeks in addressing the significant impact of COVID-19 currently and moving forward out of Alert Level 4.

Council resolution

Mayor Wise / Councillor Taylor

That Council:

a. Note that by deferring the release of the 20/21 Annual Plan, Council will be in breach of its legislative timelines under the Local Government Act 2002 to adopt the Annual Plan by 30 June in the year prior to the plan.

b. Approve the deferral of the release of the 20/21 Annual Plan for community consultation, and amendments to Financial Policies, until such time as the most appropriate plan for the changed context of Covid-19 is developed and agreed by Council.

c. Note Officers are working towards the draft Annual Plan 20/21 and consultation document being brought to Council in June with community consultation to occur after this.

i. The Hearing and adoption of the Annual Plan will be most likely in August.

Carried

PUBLIC EXCLUDED ITEMS

Council resolution

Councillors Crown / Taylor

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

Carried

Agenda Items

1. Interim Chief Executive

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. Interim 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.

The meeting moved into committee at 10.33am

The meeting was adjourned 10.34am to move back into the ordinary meeting of Council.

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

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

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

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 30 April 2020
Time:	1.00pm – 2.32pm
Venue	Zoom livestreamed via Facebook

Present

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

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 People and Capability, Chief Financial Officer, Manager Community Strategies, Manager Regulatory Solutions, Libraries Manager

Administration

Governance Team

Apologies

Council resolution

Councillor Price / Boag

That the apology from Councillor Wright be accepted.

Carried

Conflicts of interest

Nil

Public Forum

Nil

Announcements by the Mayor

The mayor noted the recent shift into Alert Level 3 and the Welcome to L3. Interesting to note the increased traffic with the shift.

The recent celebration of ANZAC day was acknowledged as the mayor reflected on the special show of patriotism with families participating in celebrations in a variety of safe and creative ways under lockdown.

Announcements by the management

Rapid Response Fund – Natasha [insert appendices x 2]

The Manager Community Strategies advised that unallocated grants funding for the 2019/20 year will be redirected to support community groups that have incurred unusual costs through their involvement in the COVID-19 welfare response. More information can be seen at Appendix One.

Regulatory Update

The Manager Regulatory Solutions provided an update on work that has taken place in the regulatory space during Alert Level 4 and to support the transition of businesses and the community into Alert Level 3. The team have worked proactively and in an enabling manner to ensure business can operate safely and lawfully.

Community Recovery

The Libraries Manager provided an update on work underway to facilitate and celebrate opportunities to support local businesses and to ensure recovery of our community includes participation and connection.

Agenda Items

1. Annual Plan Proposed Rate Increase Options

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	920951
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

1.1 Purpose of Report

The purpose of this report is to provide Council with details of the financial impacts of Covid19 on the 20/21 budget, provide Council with planning assumptions to guide budgeting for 20/21, and present a shortlist of options to fund the operating deficit. The report also seeks Council approval for the proposed rates increase and to prepare the 2020/21 draft Annual Plan and consultation document on the basis of the decisions made at this meeting.

At the Meeting

The Director Corporate Services spoke to the report, noting that at the start of the Annual Plan process no one could anticipate having to prepare a second Plan in the same year. Today’s discussion will provide guidance to officer’s for the finalisation of the consultation document.

It is proposed that Council draw on over $6M of reserves to help smooth the impact on the upcoming year, and in order to help keep the rates increase both prudent and cognisant of the impacts across both Council and the community. The proposed rates rise is 4.8%. The increase does not include contributions towards capital expenditure on large projects such as the aquarium or aquatic centre. The intention is to be as fair as possible while ensuring Council is able to maintain a balanced budget as required by legislation, and continue working in the community.

In response to questions from Councillors it was clarified that:

· Council has a number of revenue streams outside of rates which have supported Napier’s financial position, such as fees and charges for activities, investment portfolio, development contributions and the land development at Parklands. Some income has been affected through the COVID-19 response.

· $2.06 is per rate payer unit (or per average ratepayer as it spans residential and commercial)

· $3.7M of savings were identified during a review of activities including tourism and other areas; the savings do come from right across Council and are not expected to unduly impact levels of service in a negative way.

· Napier and Hawke’s Bay is predominantly a domestic tourism market, which should help with recovery. Expecting re-build in our tourism market around September/ October 2020.

Standing order 21.6 was suspended to allow all councillors to debate the recommendations prior to a vote.

Cr Mawson left the meeting briefly at 1.48pm

Thanks were extended to officers for the significant amount of work required to identify the savings and to achieve what is felt to be a balanced approach to the rates increase, and for their compassion and flexibility in working through this process and keeping the community at the centre of every conversation.

The community were encouraged to continue to support Napier and spend locally.

Council resolution

Mayor Wise / Councillor Taylor

That Council:

a. Receive the information and note the analysis of options; assumptions; and the risks as outlined in this report.

b. Note that Covid19 has had a material impact on households and businesses and Council has developed a range of actions to support those facing hardship in the community, and the Recovery Project will continue to develop how it might respond. A separate report has been prepared for Council on Council on Rates and Rental Relief.

c. Note that a number of briefing sessions/workshops have been held with elected members and seek Councillor input and direction setting in relation to preparing the final material required for the revised Annual Plan and consultation document for the community.

d. Note the revised timeline that was provided to Council on 23 April, will see the adoption of the Annual Plan later than the statutory deadline due to the additional changes required for the revised plan and impact on the timeline for consulting and hearings. The revised adoption date is currently set for 27 August.

e. Note that Covid19 has had a material impact on Council’s budget for the current year (2019/20), and is likely to put Council into a net operating rates deficit when the final position is known in August (currently estimated at $3m).

f. Agree that the 2020/21 Annual Plan and consultation document be prepared for consideration by the Council, based on Option C, which recommends

i. A 4.80% average rates,

ii. Funding of a planned operating gap of $6.74 million to be allocated from Council reserves, ($4 million from the Parking Reserve, and $2.74 million from the Suburban and Urban Growth Fund.). Council will consult on the use of these funds as part of the Annual Plan 20/21

iii. Note that under section 80 of the Local Government Act 2002 Council could consider internal borrowing for any rates or debtors relief applications received prior to community consultation and adoption of the 20/21 Annual Plan. If community consultation confirms that it is appropriate to use the parking and urban/suburban growth funds to fund the operating gap of $6.74m the internal loan would be repaid from these reserves.

iv. Note Council officers have identified operational savings of $3.7 million in the development of the revised Covid19 Annual Plan 20/21

Carried

2. Rates and Debtors Relief Packages

Type of Report:	Operational
Legal Reference:	Local Government Act 2002
Document ID:	921092
Reporting Officer/s & Unit:	Adele Henderson, Director Corporate Services

2.1 Purpose of Report

To outline financial relief options for Council to consider in response to financial stress in the community caused by the Covid-19 pandemic.

At the Meeting

The Director Corporate Services spoke to the report noting that the impacts on the community from COVID-19 have been central to the considerations of Council as the Annual Plan revision process has been undertaken so far.

Central government are offering their own recovery options and the community are encouraged to look at the COVID-19 website. Council’s website also has information available on recovery support options.

A number of relief options are proposed including a reduction in the penalty rate for late payments for the first six months of next year. Rates postponement options will also be available; residents wishing to utilise this option should contact Council to arrange a payment plan. Where hardship is being experienced by residential or commercial ratepayers a one-off reduction to rates may be available – applications for hardship considerations should be made to Council. Sport and community groups will also have support available to them.

Council resolution

Councillor Price / Dep. Mayor Brosnan

That Council:

a. Note that a separate paper be bought back to Council with proposed changes to the Rates Postponement Policy for consideration and community consultation alongside the Annual Plan 20/21.

b. Note that Rates Postponement for 20/21 be considered under “Special Circumstances” in the existing policy until such time the revised Rates Postponement Policy is adopted by Council.

c. Approve funding of up to $525k to be funded from Reserves to support Rates Postponement Policy requirements for 2020/21 (being up to 50% of rates being deferred up to 6 months).

d. Note delegation to the Director Corporate Services, Chief Financial Officer, and Investment and Funding Manager to approve Rates postponement in relation to the Covid19 event for 2019/20 and 2020/21 is set out in the Rates Postponement Policy.

e. Note that a public excluded paper will be bought to Council every 6 weeks documenting the approved delegated requests for rates postponement under “Special Circumstances” or “Extraordinary or Emergency Event”.

f. Note that any request for rates postponement for properties with a capital value greater than $1.5m are to be considered by Council on a case by case basis in a public excluded agenda.

g. Note the recommendation to reduce rates penalty for the first 6 months of 2020/21 (to December 2020) from 10% to 3.5% and will be adopted formally when the rates are set for 20/21.

h. Reduce the Annual Plan 20/21 budget by $88k for rates penalty to reflect the reduction in anticipated penalty fees for 2020/21.

i. Approve rental relief up to $193k for those demonstrating hardship (across both 2019/20 and 2020/21), for leases, rents, licences to occupy, non-profit organisations.

j. Provide delegation to the Director Corporate Services, Chief Financial Officer and Manager Property to approve rental relief in relation to the Covid19 event for 2019/20 and 2020/21.

k. Note that a public excluded paper will be bought to Council every 6 weeks documenting the approved delegated requests for rental relief.

l. Approve in principle the formation of the Napier City Rates Relief Fund for one year only (20/21) up to $350k to be funded from Council Reserves

$100k – commercial ratepayers

$250k – residential ratepayers

If approved, direct Council Officers to prepare a formal Napier City Council Rates Relief Policy 20/21 for adoption by Council to be effective 1 July 2020.

m. Approve in principle the use of reserves be utilised for the purposes of the Rates Postponement, Rates Rebate and the net operating shortfall for the Annual Plan 2020/21. Reserve funding has been identified in the Parking Fund ($5m) and the Suburban and Urban Growth ($2.6m) Fund. This change in purpose from the original proposed use as identified in the Long Term Plan will be considered by the community as part of the Annual Plan consultation 2020/21. There will be approximately $5m balance in each of the two reserves after the proposed allocation from the reserve for future projects. The use of the funds, and the residual balance of the fund is considered prudent to offset hardship faced by the community during this time.

n. Approve the ‘Community Information – Rates and Rental Relief’ document for distribution for residents and businesses in relation to rates, and rental support for the community.

o. Recommend a summary of the above support by Council be communicated on Facebook, Council website, and other websites in the region supporting recovery and businesses.

Carried

3. Fees and Charges for 2020/21

Type of Report:	Legal
Legal Reference:	Local Government Act 2002
Document ID:	922805
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer

3.1 Purpose of Report

To consider the fees and charges for the year commencing 1 July 2020.

At the Meeting

The Chief Financial Officer spoke to the report noting that all fees and charges have been reviewed for the year as required.

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

· These fees and charges are being set today but do form part of the underlying documents to the Annual Plan and are therefore consulted on.

· Some fees and charges in the tourism areas will not be increased for the upcoming year as it is believed they remain appropriate for the moment.

· Underlying principles do need to be followed when setting fees and charges as per Council’s Revenue and Financing Policy. For each activity the funding split between rates and fees/ charges is set and the activity must comply with this.

ACTION: A report on Bayskate fees and charges has been requested previously and was reiterated as important to inform the LTP process.

Council resolution

Councillors Taylor / Chrystal

That Council:

a. Adopt the schedule of fees and charges for 2020/21 effective 1 July 2020, as specified in the document titled Schedule of Fees and Charges 2020/21.

Carried

PUBLIC EXCLUDED ITEMS

Council resolution

Councillors Simpson / Boag

That the public and all staff except the Manager People and Capability, and Team Leader Governance, be excluded from the following parts of the proceedings of this meeting.

Carried

Agenda Items

1. Interim Chief Executive

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

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

Agenda Items

1. Interim Chief Executive

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

The meeting moved into committee at 2.32pm

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

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

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

Appendix One

Rapid Response Fund

INFORMATION

2020

Purpose

A one-off allocation of $50,000 is available to non profit social services and community organisations actively working on the ground supporting the response to the Covid-19 pandemic in Napier.

Funding Priority

The fund focuses on supporting community organisations that support members of the community with particular vulnerablity around Covid-19. Groups with higher vulnerability include:

those over 70 years old
people who are homeless or become homeless
those with high health needs
people with a low income and/or living in vulnerable neighbourhoods, and / or
young people

What can be funded

The fund will support additional costs for providing their services or to provide new services to meet the basic needs of the community including:

Additional operating costs
Materials (e.g. Personal Protective Equipment, packaging)
Volunteer expenses (e.g. petrol vouchers)
ICT equipment

Retrospective funding

Applications for costs already incurred from the beginning of the Level 4 Lockdown^{^[1]} or are currently being incurred, are eligible.

Eligibiilty

Services or initiatives must be targeted to Napier residents.

What Will Not Be Funded

Building maintenance
Deposit, loan or debt repayments
Bank or lawyers fees
Fundraising
Salaries/wages that have already been funded or where a wage subsidy has been provided by central government

Make A Proposal

An application form is available from the Community Services team csgrants@napier.govt.nz or on www.napier.govt.nz . Applications will be accepted until 31 May 2020 or until the fund is fully allocated, whichever is earlier.

Decisions

All eligible applications are assessed and forwarded to the Rapid Response Fund Panel for decision as they are submitted.

Further Information

Our team are happy to answer any questions you may have and can assist with your application. Please contact us on 834 4114 or email us at csgrants@napier.govt.nz

Appendix Two

Tabled - Item 1 discussion

AVERAGE RATE COMPARISON

Council	Average rates per residential property
Tauranga	$ 2,756
Whanganui	$ 2,645
Palmerston North	$ 2,541
Hastings	$ 2,413
Hamilton	$ 2,396
Whangarei	$ 2,371
Napier (19/20)	$ 2,239
Timaru	$ 2,203
Invercargill	$ 2,173

Napier’s average rates are comparatively lower than most NZ Council of a similar size.

The average rate for a residential property in Napier is $2,239 for 19/20 ($2,118 in 18/19).

An average rates increase of 4.8% would equate to an increase of approximately $107 per year or $2.06 per week for a residential property.

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 7 May 2020
Time:	10.06am – 11.26am
Venue	Via Zoom and livestreamed on Council's Facebook page

Present

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

In Attendance

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

Manager Asset Strategy

Manager Regulatory Solutions

Policy Planner

Team Leader 3 Waters

3 Waters Programme Manager

Manager business Transformation and Excellence

Administration

Governance Team

Apologies

Nil

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Welcome was extended to the recently appointed Interim Chief Executive, Keith Marshall.

Neil Taylor, who has been Acting Chief Executive, was thanked for his excellent service over the last eight weeks during the challenging demands of the COVID-19 national response.

Minor matters raised

Nil

Announcements by the management

Nil

Agenda Items

1. Water Master Planning

Type of Report:	Operational and Procedural
Legal Reference:	Health (Drinking Water) Amendment Act 2007
Document ID:	912288
Reporting Officer/s & Unit:	Russell Bond, 3 Waters Programme Manager

1.1 Purpose of Report

To introduce the Water Master Plan to Council and to identify critical projects that are needing to be programmed and delivered in the 2020/21 Annual Plan.

At the meeting

The Manager Asset Strategy spoke to the report noting that the Water Masterplan takes a 30 year view, and is intended to allow for growth while continuing to provide a safe network for the community. A presentation was provided during this item, which can be seen at Appendix One.

In response to questions from councillors it was clarified that:

· The Tamatea pilot can progress separate from any work on the bores. The time frame for the pilot is expected to be approximately four to six months once the modelling has been received.

· Addressing dirty water is a top priority for the team. The work leading to new bore fields will be able to be started again slowly as the COVID-19 alert levels drop; the test bores will be re-initiated, and as the tender information is already prepared it is anticipated that the bore field work will be well progressed by late next year.

· A lot of data is held on the bores in the vicinity of A1, and while there is still a small risk that manganese is higher than anticipated in certain areas, confidence is high that the data will allow the manganese levels to be predicted with relative certainty.

· Council is moving towards what is a logical way to manage the network whether the system is chlorine-free or not. The updates are also intended to address matters such as pressure and flow. Some adjustments in the smaller branched network may be required should a chlorine-free system proceed but the larger infrastructure would be the same.

· The work to date has been focussed on the network rather than on source water; when the multi-focus review was undertaken a variety of experts were included.

· Water use will be tracked across large zones, not from a per household metering perspective.

· The cost of the pipeline is estimated about $5.5M; most of the cost is related to the work (i.e. trenching etc.) rather than the materials, so preference is to future proof with larger pipe size.

· Consideration has been given as to whether the changes to consenting in response to COVID-19 will have any implications for this work, but it is believed that the short time frame to produce the supporting documentation would not fit with Council’s time frames.

· As the country moves into recovery from the COVID-19 response, Council will be packaging different pieces of work together to ensure the best value for money is gained for all projects. How the works are combined and what is in included in each ‘package’ will impact on whether quotes are sought from the Depot.

· The treatment station does need to be in place before any new bore could be used. This work will also trigger the requirement to implement the new Water Safety plan requirements.

· About a six week delay has been experienced in the chlorine-free review from the COVID-19 response; the team will be working hard to bring this time frame as close to the original as possible again.

· In the content of potable water, “discharging” into an area means to supply water into an area.

· There will be much greater emphasis on managing water demand under the recently notified TANK plan. There are very high water users in Napier and this will need to be reduced, through conservation efforts and active leak management.

· By “zoning off” the Tamatea area Council will be able to better address the dirty water issues as the number of bores supplying water will be reduced and greater overall control of the supply conditions will be possible (for example pressure and flow issues). A number of options will also be explored to reduce existing manganese load.

· The District Metered Areas will have meters to provide data on incoming and outgoing flows; Council’s SCADA system will also be upgraded. This is within existing budgets.

· The potential impacts of the central government three waters review are as yet unknown, but it is highly likely to result in a new regulator and much greater expectations being placed on water managers. Indications to date suggest that chlorine may become mandatory. The Masterplan is moving Napier into a space where it better placed to meet the higher monitoring, reporting and conservation requirements that are anticipated as likely from the review.

· There are always some low risks of contamination in any water supply. Where risks are identified for Napier, these are actively reviewed and action taken as it can be, for example one bore head has been closed as it was identified as being quite close to a wastewater main.

· Council will be kept up to date as the works are further progressed and ensuing decisions are required.

Council resolution

Mayor Wise / Councillor Simpson

That Council:

a. Receive the report.

b. Approve the approach to developing Borefield #1 in advance of the Global Resource Consent application, with the aim to provide low manganese source water as soon as practical.

c. Accept that this approach has potential financial risks with the installation of the larger pipeline that connects the proposed bore to the existing network.

Carried

2. Review of Napier City Mobile Sign Bylaw

Type of Report:	Operational and Procedural
Legal Reference:	Local Government Act 2002
Document ID:	918631
Reporting Officer/s & Unit:	Yvonne Legarth, Policy Planner Rachael Horton, Manager Regulatory Solutions

2.1 Purpose of Report

To seek Council approval of the unamended Mobile Sign Bylaw and to commence consultation pursuant to the Local Government Act sections 82 and 82A, and legal advice.

At the meeting

The Policy Planner spoke to the report, noting that the intention of the bylaw is to manage public safety and amenity issues relating to the mobile signs. A review has been undertaken and it is recommended that no changes be made to the 2013 Bylaw. Bylaw may be integrated with others in the future in a more ‘omnibus’ Bylaw regarding urban environment.

In response to questions from councillors it was clarified that:

The Bylaw relates to signage on trailers.
There have been no complaints under this Bylaw in the last two years and nothing on file prior to that.
An urban environment Bylaw is posited with the intention of increasing consistency across Bylaws that manage the urban environment. They will be able to interact better with the District Plan in this way also.
This Bylaw will speak to some expectations on certain types of election signage but the primary source of rules for election signage is the District Plan.

Council resolution

Dep. Mayor Brosnan / Councillor Crown

That Council:

a. Confirm, in accordance with Section 155 of the Local Government Act 2002, that a Mobile Sign Bylaw is the most appropriate way of addressing the problems that mobile signs can have on:

i. public and traffic safety

ii. maintenance of aesthetic standards

iii. control of offensive material on mobile signs

b. Confirm that the Mobile Sign Bylaw is currently the most appropriate form of bylaw.

c. Agree that the Mobile Sign Bylaw is not inconsistent with, or have any implications under the New Zealand Bill of Rights Act 1990.

d. Adopt the reviewed and unamended Napier City Council Mobile Sign Bylaw for consultation.

e. Confirm that a further review of the Mobile Sign Bylaw 2013 will be undertaken as part of the process to include the Mobile Sign Bylaw in the yet to be prepared consolidated Napier City Council Urban Environment Bylaw.

f. Authorise Officers to consult in accordance with the principles in LGA ss 82 and 82A in a manner that is consistent with legal advice.

Carried

The meeting closed at 11.26am

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

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

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

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 14 May 2020
Time:	10.05am – 11.29am
Venue	Zoom livestreamed to Council's Facebook page

Present

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

In Attendance

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

Investment and Funding Manager

Manager Business Transformation and Excellence

Manager Community Strategies

Senior Policy Planner

Economic Development Manager [from 10.50am]

Administration

Governance Team

Apologies

Nil

Conflicts of interest

Nil

Announcements by the Mayor

The country has now moved into Alert Level 2, and this has some fantastic implications for retail and business owners; we must all continue to stay safe and maintain the government guidelines for hygiene, health and distancing to ensure we continue to move in the right direction in relation to COVID-19.

A new Business Response Fund is to be launched from 18 May 2020, to which applications can be made by businesses who are rebuilding and planning their recovery. Criteria for the Fund and applications are available on Council’s website and will be circulated via social media.

Announcements by the management

The Manager Community Strategies advised that 10 applications to Council’s Rapid Response Fund were received in its first week. Just under half of the funding has now been allocated, with grants ranging in size from $200 to $6,900 so far. The funding will help reimburse extra IT equipment required to support on the ground work during the emergency response, personal protective equipment (PPE), and supporting extra volunteers. The Fund will remain open for two more weeks, and applications are encouraged from groups who were involved in the COVID-19 emergency response and incurred extra costs because of the unusual work in this time.

Minor matters

Nil

Agenda Items

1. Napier Recovery Budget

Type of Report:	Information
Legal Reference:	N/A
Document ID:	924664
Reporting Officer/s & Unit:	Richard Munneke, Director City Strategy

1.1 Purpose of Report

To request endorsement of the approach funding and the terms of reference for the Napier City Council recovery effort.

At the Meeting

The Director City Strategy spoke to the report, noting that the principles of recovery are applicable nationally, and have been central to the team as the recovery planning for Napier has been initiated.

The wellbeing of the community as a whole is important, and everybody has a part to play. Council has been working closely with other agencies, and the development of the “Make a Plan” and “Team Napier” campaigns are intended to highlight individual and business responsibility to all work together alongside Council and agencies to look after and build our community.

An evidence based approach is being taken to ensure that planning and prioritisation are directed to the appropriate areas of need, and are flexible enough to allow for change as these shift.

The funding allocated in the revised Annual Plan is intended to provide for short and medium term actions; recovery will also be built into the long term planning process, and over time this process will be fully integrated into ‘business as usual’.

The Senior Policy Planner spoke to a presentation on the recovery planning that is underway (please see Appendix One). The intention is to be future focussed, not purely reactive, and indicators of progress will be set and monitored to follow our recovery and growth as a community. A number of specific issues of current focus were touched on, as well as ways that shifts such increased walking and cycling can be supported to continue.

The plan is for the community, and must respond to its needs. Central to the plan is how Council can work with Mana Whenua entities to ensure that tikanga and cultural wellbeing is deeply embedded into the actions and areas of focus. The plan and its areas of focus at any given time may shift, to make sure Council can be responsive and prioritise the highest needs at any given time.

In response to questions from Councillors it was clarified that:

· Under Emergency Management legislation there is a recovery process which is legislated, and responsibility sits with the Recovery Manager to lead this; the legislation recognises that a certain level of agility is needed in certain circumstances. It was noted that existing delegations to management also allow for many actions to take place appropriately.

· A coordinated approach across the Council is required to ensure that core business is not being negatively impacted by the recovery process. The extra funding provided for through the upcoming Annual Plan is required to help advance towards our recovery goals. There will also be some cross-over between recovery, core business and future works already planned, so integration will be created as much as possible.

· Feedback from the community on the recovery process will not come via a formal consultation process, as swift movement will be important for some actions. However, the community can engage in the upcoming Annual Plan consultation, there will be smaller surveys run, and Council are working with local commercial groups for instant feedback from the business sector. The public can also contact the Recovery Team via recovery@napier.govt.nz

· The state of emergency was lifted yesterday and the nation is now in a transition period for the next 90 days. The Incident Management Team is still activated but only at a low level to maintain some welfare as required.

· It is anticipated that the activities of the Recovery Steering Group will be fully “blended” into ‘business as usual’ within 12 months.

· Good local information will be sought to monitor recovery for Napier in particular, noting that we have unique qualities even within our own region. Wider data will also be sought so that useful comparisons with other similar cities across the country can be made.

· It is difficult to fully predict at this point which businesses will be most impacted and how.

Officer’s Recommendation

That Council:

a. Approve the funding of the recovery process for 20/21; and

b. Endorse the recovery approach, Terms of Reference, and integration with the Long Term Plan direction setting.

Substitute Motion

Council Resolution

Councillors Boag / Crown

That Council:

a. Approve the funding of the recovery process for 20/21; and

b. Endorse the recovery approach, Terms of Reference, and integration with the Long Term Plan direction setting.

c. Receive regular reports on the Steering Group’s activities and plans and have input into these where appropriate.

Carried

The meeting closed at 11.29am

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

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

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

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Wednesday 20 May 2020
Time:	3.03pm – 3.05pm
Venue	Via Zoom

Present	Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, Price, Simpson, Tapine, Taylor, Wright
In Attendance	Interim Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Manager Communications and Marketing
Administration	Governance Team

Apologies

Cr McGrath was absent for this portion of the meeting.

Conflicts of interest

Nil

Announcements by the Mayor

Nil

Announcements by the management

Nil

Minor Matters

Nil

PUBLIC EXCLUDED ITEMS

Council resolution

Councillors Mawson / Price

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

Carried

Agenda Items

1. Chlorine Free Drinking Water Review

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

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

Agenda Items

1. Chlorine Free Drinking Water Review

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)(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)

The meeting moved into committee at 3.05pm

The Council resolved that parts of the public excluded resolution of the meeting be released into the public record, those being:

Substitute Motion

Council resolution

Dep. Mayor Brosnan / Councillor Simpson

That Council:

a. Resolves that the report be received.

b. Approve the tender from Pattle Delamore Partners Ltd (PDP) to complete a “Chlorine Free Drinking Water Review” in the sum of $199,955 (excluding GST). The total maximum cost for the service delivery will be $239,995 (excluding GST).

c. NOT APPROVED FOR RELEASE INTO OPEN RECORD

d. Delegate authority to enter into a contract for the professional services to deliver a “Chlorine Free Drinking Water Review” on behalf of Council to the Director Infrastructure Services.

e. Approve that the decision be released to the public in respect of the tender for the completion of a “Chlorine Free Drinking Water Review”.

f. Note Council will be presented to by the chosen consultants at the options assessment stage prior to any options being discounted.

Carried

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

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

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

Ordinary Meeting of Council - 04 June 2020 - Open Agenda

Extraordinary Meeting of Council

Open Minutes

Meeting Date:	Thursday 21 May 2020
Time:	10.03am – 12.08pm
Venue	Zoom livestreamed via Facebook

Present

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

In Attendance

Interim Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy

Marketing Manager

Manager Business & Tourism

Chief Financial Officer

Investment and Funding Manager

Team Leader Parks, Reserves, Sportsgrounds

Conference Centre Manager

Manager Business Excellence and Transformation

Economic Development Manager

Administration

Governance Team

Apologies

Nil

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the management

The Business Response fund was launched on Thursday and six applications have already been received. The intent of the fund is to provide support for business activation opportunities. A schedule of grants will be made available publicly.

The Annual Plan timeframes have had to be adjusted due to the national COVID-19 response. Consultation will now open on 18 June 2020 and will run through to 15 July 2020.

It is intended to hold hearings for submissions on 12 and 13 August 2020, and adoption is scheduled for late August.

The revised time frames proposed for the Annual Plan have been reviewed by Council’s auditors who have indicated comfort with the proposal.

Minor Matter discussion (if any)

Nil

Agenda Items

1. Napier Conference Centre Renaming

Type of Report:	Operational
Legal Reference:	N/A
Document ID:	919760
Reporting Officer/s & Unit:	Steve Gregory, Manager Business & Tourism

1.1 Purpose of Report

To provide Council with background information on the history of the name and branding of the current Napier Conference Centre and to propose a name change that will respect and complement the Napier War Memorial Centre.

At the Meeting

The Manager Business and Tourism spoke to the report, speaking to the unintended confusion created through having a building and a business in the same location with “Centre” in the name. This is being addressed through a proposed update to the name of the conference and events business.

It was noted that the Conferences and Events business does not purely operate out of the Napier War Memorial Centre but also manages a variety of other venues, all of which will be promoted on the business website. The business branding is strong and the intention is to maintain the ‘look and feel’ while updating the business name. A variety of collateral is used to promote the business and will be updated to clarify the differentiation between the business and the Napier War Memorial Centre venue.

In response to questions from councillors it was clarified that:

The collateral will reflect the venue in question. Napier Conferences and Events can manage bookings for all sites but the business branding may not be included on the collateral for all venues as they have their own (for example the MTG).
All collateral and advertising will very clearly distinguish between the Conferences business and the Napier War Memorial Centre venue.
The website will include all bookable venues, with links to their own sites and rates. The intention is to make things as easy as possible for people to access information and make bookings for a venue.
The logo associated with Napier Conferences and Events will be associated with marketing collateral of the business activity.
A separate unique logo for the Napier War Memorial Centre has been identified as desirable piece of work by the War Memorial Working Group.
The business has experienced very few actual cancellations; most clients have adjusted the timing of their bookings instead. It is also expected that bookings will pick up as clarity about a less restricted Level 2 and Level 1 is received.
The conference business logo will not just be associated with the War Memorial Centre
The Conferences and Events staff are currently based in the War Memorial Centre.
Not all events in our bookable venues will necessarily be booked by the business, but where an event takes place over several venues the Conferences and Events team will oversee this.
The conferences team are working closely with Council’s Communications team to actively promote the venues. The brand is strong and well-respected.
The Napier War Memorial Centre itself has never made a profit.
The business provides employment for 10 staff and a local contractor provides catering.
The renaming of the business will be reflected in documents such as the Annual Plan and Annual Report (i.e. regarding fees and charges).
The draft War Memorial Policy is expected to be received in one to three months time.

Officer’s Recommendation

That Council:

a. Approve the business activity name change from Napier Conference Centre to ‘Napier Conferences and Events’.

b. Note the War Memorial working group is working to make a recommendation to Council on the memorial elements reinstatement design expected this calendar year.

c. Note a management policy for the Napier War Memorial Centre will be developed to protect the site’s heritage, recognising the commemorative elements and community use of the facility post adoption of the design mentioned in point b.

Substitute Motion

Council resolution

Mayor Wise / Councillor Chrystal

That Council:

a. Approve the business activity name change from Napier Conference Centre to ‘Napier Conferences and Events’.

b. Note the War Memorial working group is working to make a recommendation to Council on the memorial elements reinstatement design expected this calendar year.

d. That a separate website be established for the Napier War Memorial Centre to tell the story of the Centre and our fallen heroes and this is incorporated into the War Memorial Design Working Group process.

e. That the rooms and halls in the Napier War Memorial Centre be re-named after battles and/or fall heroes of significance to Napier and this is incorporated into the War Memorial Design Working Group process

Carried

2. Park Island Northern Sports Hub - Taradale Bridge Club

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	913748
Reporting Officer/s & Unit:	Debra Stewart, Team Leader Parks, Reserves, Sportsgrounds

2.1 Purpose of Report

To seek approval in principal for the Taradale Bridge Club locate at the Park Island Northern Sports Hub subject to detailed feasibility and design including consideration of co-location with Napier Pirates and the Napier Bridge Club.

At the Meeting

The Team Leader Parks, Reserves, Sportsgrounds spoke to the report, reviewing the background to the request from the Taradale Bridge Club to locate at Park Island. Representatives of the Club spoke directly to Council earlier this year.

While some work is required to align with other groups in the area, officers believe that the preferred location could work well. It is anticipated that the required design solutions would be sought by the Club itself.

In response to questions from councillors it was clarified:

· Plan Change 11 allows for this activity and has addressed matters such as lighting and placement of buildings in relation to residential areas. Consent may be required for some earthworks.

· Design work for the Northern Hub would be triggered by this matter if it proceeds. It will take some time to liaise with all the Clubs in the area. Officers will work to ensure that the process is as streamlined as possible.

· Funding is not currently available in the existing LTP for the Northern Hub until 2021/22 so some money may need to be brought forward. Officers will assess what may be required in this space.

· The Hub is intended to bring a variety of sports and activities together. The requirements of different age groups and active and passive recreation activities are always juggled and Council works with all groups to facilitate the best solutions possible. There are always benefits to Clubs working together as it can reduce their operational costs.

· The Bridge Club has been receptive to the concept of being in the same building as a Rugby Club, and open to working through the different requirements of each group.

· It is intended that even if the Rugby Club were not ready to move immediately, that a staged development could take place in order to facilitate the Bridge Club’s initiative.

· It can be challenging when groups being negotiated with have different levels of asset or cash availability. Every group needs to be able to anticipate financial success.

· There are situations where Council’s participation as a mediator between groups can be useful.

· Council is always working with groups in the community to make sure provision of spaces takes a long term and relatively flexible view.

Officer’s Recommendation -

That Council:

a. Approve in principal the Taradale Bridge Club locating at the Park Island Northern Sports Hub. This approval is given subject to the Taradale Bridge Club in conjunction with Council Officers working through stakeholder engagement, detailed design and confirming the club has sufficient funds to meet the full cost of the development.

Substitute Motion

Council resolution

Councillors Boag / Taylor

That Council:

b. Facilitate the Taradale Bridge Club and other interested clubs to work together in order to consider how they could possibly share a facility.

c. Direct Officers to bring to Council options and costings to bring funding forward to progress this project.

Carried

3. Parks, Reserves and Sportsgrounds Water Conservation Strategy

Type of Report:	Information
Legal Reference:	N/A
Document ID:	912628
Reporting Officer/s & Unit:	Debra Stewart, Team Leader Parks, Reserves, Sportsgrounds

3.1 Purpose of Report

To advise Council of the Parks, Reserves and Sportsgrounds Water Conservation Plan for endorsement prior to its presentation in a paper at the World Urban Parks International Congress Event, Green Pavlova in Rotorua, May 2020 (now postponed to May 2021 in light of Covid-19).

At the Meeting

The Team Leader Parks, Reserves, Sportsgrounds spoke to the report noting that efficiencies and ways to reduce water take are being looked at for the parks and reserves network.

This item was laid on the table to provide an opportunity for Council to view the Conservation Plan in full.

LAID ON TABLE

Officer’s Recommendation

That Council:

a. Approve the Parks, Reserves and Sportsgrounds Water Conservation Plan for presentation at the World Urban Parks International Congress Event, Green Pavlova in Rotorua, May 2020 (now postponed to May 2021 in light of Covid-19).

4. Rates Postponement Policy Review

Type of Report:	Legal and Operational
Legal Reference:	Local Government (Rating) Act 2002
Document ID:	921868
Reporting Officer/s & Unit:	Garry Hrustinsky, Investment and Funding Manager

4.1 Purpose of Report

To review and update the policy to include better definition around financial hardship resulting from Significant Extraordinary Circumstances. Some minor clarification of Criteria wording.

At the Meeting

The Investment and Funding Manager spoke to the report noting that this policy allows for rates to be postponed in certain circumstances. The proposed amendment would allow Council to better define what “significant extraordinary circumstances” means. The Policy has also been updated for better clarity in some areas.

Significant discussion took place in relation to the current expectation in the Policy that an applicant have owned the property for at least five years.

It was agreed that this item would be laid on the table, that the Policy would be reviewed further and brought back to Council for consideration as soon as possible.

ACTION The word “elderly” is to be replaced by the term “older persons” in the Policy as the more appropriate term used in the sector to refer to those over 65 years. The Policy will be grammatically reviewed to ensure this term embeds well in the sentences.

LAID ON TABLE

Officer’s Recommendation

That Council:

a. Approve the proposed amendments to the Rates Postponement Policy to include Significant Extraordinary Circumstances.

5. Rates Remission Policy Review

Type of Report:	Legal and Operational
Legal Reference:	Local Government (Rating) Act 2002
Document ID:	925181
Reporting Officer/s & Unit:	Garry Hrustinsky, Investment and Funding Manager

5.1 Purpose of Report

To review and update the policy to include definition around financial hardship resulting from Significant Extraordinary Circumstances. Some minor clarification of Criteria wording.

At the Meeting

The Investment and Funding Manager spoke to the report noting that this Policy provides Council with the opportunity to allow for discounts to rates in certain circumstances.

This item was also laid on the table for further review of the Policy, as it deals with similar subject matter to the previous item.

LAID ON TABLE

Officer’s Recommendation

That Council:

a. Approve the proposed amendments to the Rates Remission Policy to include Significant Extraordinary Circumstances.

6. Investment Policy Review

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	921741
Reporting Officer/s & Unit:	Garry Hrustinsky, Investment and Funding Manager

6.1 Purpose of Report

Triennial review of Investment Policy including any proposed amendments.

At the Meeting

The Investment and Funding Manager spoke to the report noting that the Policy already allows for participation in Local Government Funding Agency investments, so no amendments have been proposed.

Council resolution

Councillors Wright / Mawson

That Council:

a. Adopt the current Investment Policy without amendment.

Carried

7. Liability Management Policy Review

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	921745
Reporting Officer/s & Unit:	Garry Hrustinsky, Investment and Funding Manager

7.1 Purpose of Report

Triennial review of Liability Management Policy including any proposed amendments.

At the Meeting

The Investment and Funding Manager spoke to the report noting that the review has been triggered by Council’s consideration of participating in the Local Government Funding Agency. The Policy in its current form allows for this and so no amendments are proposed.

Council resolution

Councillors Price / Tapine

That Council:

a. Adopt the current Liability Management Policy without amendments.

Carried

8. Statement of Proposal to join the Local Government Funding Agency

Type of Report:	Legal and Operational
Legal Reference:	Local Government Act 2002
Document ID:	925601
Reporting Officer/s & Unit:	Garry Hrustinsky, Investment and Funding Manager

8.1 Purpose of Report

With a need for Council to borrow in the near future, the purpose of this report is review the options available if Council decides to join the Local Government Funding Agency (LGFA) and identify the most appropriate option. If approved, the second purpose of this report is to commence the process of joining the LGFA through the release of a Statement of Proposal.

At the Meeting

The Investment and Funding Manager spoke to the report noting a correction to the wording of the recommendation part b is required regarding how Option 4 is characterised.

To date Napier residents have enjoyed comparatively low rates, and external borrowing has not been required. Due to unexpected circumstances including the national COVID-19 response, it is anticipated that Council may be required to borrow externally in the future. Membership of the Local Government Funding Agency (LGFA) is one way Council can continue to operate as prudently as possible.

The LGFA has no joining fees for membership and there is no obligation to borrow. If a council does borrow through this mechanism there are a number of benefits through the combined investment power of many councils. The LGFA’s credit rating is AA+. To date none of the LGFA-style bodies internationally have ever defaulted; some have existed for 200 or more years. Member councils apply to the LGFA for how much they wish to borrow and the term for the loan.

Council resolution

Councillors Crown / Simpson

That Council:

a. Approve Napier City Council proceeding with public consultation to join the Local Government Funding Agency (LGFA).

b. Endorse Option 4 (join the LGFA as an unrated guaranteeing local authority) as Council’s preferred membership option.

Carried

PUBLIC EXCLUDED ITEMS

Council resolution

Councillors Tapine / Taylor

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

Tapine/ Taylor

Carried

Agenda Items

1. 274 Guppy Road HBRC Land Proposal

2. Waipatiki Land Purchase Proposal

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. 274 Guppy Road HBRC Land Proposal	7(2)(g) Maintain legal professional privilege	48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist: (i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7 (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.
2. Waipatiki Land Purchase Proposal	7(2)(a) Protect the privacy of natural persons, including that of a deceased person 7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities 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.

The meeting moved into Committee at 12.08pm

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

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

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

[1] Level 4 Lockdown began at 11:59pm on 25 March 2020

Council Members	Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, Taylor, Wright
Officer Responsible	Interim Chief Executive
Administrator	Governance Team
	Next Ordinary Council Meeting Thursday 23 July 2020