Extraordinary Meeting of Council

Open Minutes

 

Meeting Date:

Tuesday 15 September 2020

Time:

3.00pm-4.00pm

Venue

Large Exhibition Hall
War Memorial Centre
Marine Parade
Napier

 

 

Present

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

In Attendance

Interim Chief Executive, Director Corporate Services, Director Community Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Chief Financial Officer, Investment and Funding Manager, Manager Property, HBLASS Programme Manager

Administration

Governance Team

 


Extraordinary Meeting of Council - 15 September 2020 - Open Minutes

 

Apologies

Council resolution

Councillors Boag / Crown

That the apologies from Councillors Chrystal and Wright be accepted.

 

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the management

Nil

 

 

 


Extraordinary Meeting of Council - 15 September 2020 - Open Minutes

Agenda Items

 

1.    Hawke's Bay Region 3 Waters Report

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

962595

Reporting Officer/s & Unit:

Keith Marshall, Interim Chief Executive

 

1.1   Purpose of Report

To present to Council the Morrison Low report Hawke’s Bay Three Waters, Business Case of Three Waters Service Delivery options

 

At the Meeting

The Interim Chief Executive spoke to the report, providing a brief overview and noted that the report has been canvassed at length with Council. 

There was no further discussion or questions from Councillors.

 

Council resolution

Councillors Simpson / Browne

That Council:

a.     Note and receive the Morrison Low report Hawke’s Bay Three Waters, Business Case of Three Waters Service Delivery options, and that it will be a helpful contribution to the upcoming 3 Waters reform process.

b.     Note that Napier City Council has signed up to working with the Government on the 3 Waters reform process.

 

 

 


 

2.    Three Waters Reform Programme - Funding Agreement, Delivery Plan and Proposed projects

Type of Report:

Contractual

Legal Reference:

N/A

Document ID:

965068

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

Jon Kingsford, Director Infrastructure Services

 

2.1   Purpose of Report

To provide delegation for the signing of the Funding Agreement and Delivery Plan associated with the Three Water Services Reform Programme including proposed projects.

 

At the Meeting

The Director Corporate Services tabled the Draft Three Waters Stimulus Grant Delivery Plan (attached under Appendix A).

The Director Infrastructure Services spoke to the report noting that this report is in relation to Central Government’s Three Waters Reform programme of work and identifies the proposed projects that Council will be allocating their share of the region’s funding to.

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

·        While the preference is for additional staff to be employed under fixed term contracts, there is a risk that the proposed works may not be able to be completed in the given timeframe due to the short supply of engineers. This risk will be considered and discussed regionally also. In the event that issues arose, Council could also examine the option of using external engineering consultancy or contractors to help fill any gaps.

·        The list of proposed projects well exceeds the funding available to Council. It is highly unlikely that Council would need to identify further projects, but should this occur, these would come back to Council for consideration.

·        The Three Waters Stimulus Grant Delivery Plan is in draft form only at this stage and will come back to Council prior to the 30 September deadline for a final decision, once the programme has been finalised. 

·        It is intended that the quarterly reporting will be aligned with Council’s current reporting cycle.

 

Council resolution

Councillors Browne / Tapine

That Council:

a.     Approve entering into the Funding Agreement and Delivery Plan for the first stage of the Three Waters Services Reform Programme by 30th September.

b.     Approve the proposed projects to be undertaken as part of the Delivery Plan, noting that these are subject to approval from the Department of Internal Affairs (DIA).

c.     Provide delegation to the Chief Executive to make required changes to the Delivery Plan in order to finalise the agreement with DIA, noting that Council have been provided with projects that are in excess of the $12.51m available funding, and projects will be prioritised from those identified under Priority 2 and 3 list provided in this report.

d.     Note the Reform Programme is part of the Governments programme to reform current water service delivery, into larger scale providers, to realise significant economic, public health, environmental, and other benefits over the medium to long term, and that signing the MOU, Funding Agreement and Delivery Plan does not create any obligation upon Council with regard to future steps of this reform programme;

e.     Delegate signing of the Funding Agreement and Delivery Plan to the Chief Executive and Mayor.

 

 

 


 

3.    Budgets to be carried forward to 2020/21

Type of Report:

Operational

Legal Reference:

Local Government Act 2002

Document ID:

962775

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

Caroline Thomson, Chief Financial Officer

 

3.1   Purpose of Report

To seek Council approval to carry forward budgets into 2020/21 or future years depending on the timing of the programme.

 

At the Meeting

The Chief Financial Officer spoke to the report, noting that many of the carry forward requests relate to projects already underway at year end where budget is required to complete the projects in 2021. Almost half of the total requested carry forward amount is made of up capex carry forwards in relation to the pool project.

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

·        Due to Covid-19 and the affect this had on the Annual Plan process, the time required to rationalise the list of proposed projects down just wasn’t available.

·        Some projects have not commenced yet but are programmed to be completed in 2021. It was noted that rather than taking these projects out of the plan, they can be held over and reconsidered under the Long Term Plan process.

·        This year’s total carry forward amount is significantly higher than previous years. Last year was in the order of $15 Million and prior to that it was much lower.

 

Council resolution

Councillors Taylor / Simpson

That Council:

a.     Approve total capital carry forward budgeted expenditure of $36,002,409 from 2019/20 into 2020/21 (or future years depending on the timing of the programme).

 

b.     Approve total operational expenditure carry forward budgeted expenditure of $5,347,371 from 2019/20 into 2020/21.

 

 

 


 

4.    Draft Revenue and Financing Policy and underlying information

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Document ID:

953015

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

4.1   Purpose of Report

To recommend the proposed amendments to the Revenue and Financing Policy for adoption by Council and subsequent consultation with the community. 

 

At the Meeting

The Chief Financial Officer spoke to the report, providing a brief overview and noted that a number of workshops have been held with elected members in relation to this Policy. 

A number of Councillors commented that the comprehensive review process provided elected members with a greater understanding of how council funds its activities. In response to questions, it was noted that although the Policy is reviewed every three years, Council was well overdue for a significant review. The last significant review was undertaken in 2001.

 

Council resolution

Mayor Wise / Councillor Taylor

That Council:

a.     Adopt the Draft Revenue and Financing Policy as attached in Appendix A

b.     Note that the rating implications from the Revenue and Financing Policy review will be reflected in the Statement of Proposal and Consultation Document to be presented to Council on 8 October 2020.

 

 

 


 

5.    Draft Rating Policy

Type of Report:

Legal

Legal Reference:

Local Government (Rating) Act 2002

Document ID:

963006

Reporting Officer/s & Unit:

Garry Hrustinsky, Investment and Funding Manager

 

5.1   Purpose of Report

To reintroduce and update the Rating Policy.

To review and update the policy in alignment with proposed Revenue & Financing Policy, and Remission & Postponement Policy amendments.

To recommend the proposed amendments to the Rating Policy for approval by Council and subsequent consultation with the community. 

 

At the Meeting

The Investment and Funding Manager spoke to the report noting that the Rating Policy is the bridge between The Revenue and Financing Policy and the Funding Impact Statement.

The Mayor noted that no questions were raised by Councillors as this Policy had also been canvassed extensively in workshops.

 

Council resolution

Councillors Crown / Boag

That Council:

a.     Approve the reintroduction of a Rating Policy.

b.     Approve the proposed General Rate differentials and rates applied.

c.     Approve an increase in the City Water Rate from 50% to 70% for Rating Units that are not connected but within 100m of the system.

d.     Approve an increase in the Sewerage Rate from 50% to 70% for Rating Units that are not connected but within 30m of the system.

e.     Approve a note that a Wastewater Rate is being proposed to replace the Sewerage Rate.

f.      Approve the introduction of a Stormwater Rate.

g.     Note proposed amendments to rating differentials and definitions within the draft Revenue & Financing Policy.

h.     Note proposed amendments to remissions within the draft Rates Remission Policy.

i.      Note proposed amendments to postponements within the draft Rates Postponement Policy.

j.      Approve Council officers consulting on the Rating Policy in conjunction with the Revenue & Financing Policy.

 

 

6.    Draft Rates Remission Policy

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Document ID:

960522

Reporting Officer/s & Unit:

Garry Hrustinsky, Investment and Funding Manager

 

6.1   Purpose of Report

To review and update the Rates Remission Policy in accordance with s.109 of the Local Government Act 2002.

 

To review and update the policy in alignment with proposed Remission & Postponement Policy amendments.

 

To recommend the proposed amendments to the Rates Remission Policy for approval by Council and subsequent consultation with the community. 

 

At the Meeting

The Investment and Funding Manager provided a brief overview of the report.

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

·        The Consultation Document will be brought to Council on 8 October 2020 for consideration.

·        The indicative dates for consultation at this time are from 12 October to 15 November 2020.

·        Any change in Covid alert levels will be managed. Should levels increase again, this will only affect face to face meetings. All other consultation will continue as planned.

 

Council resolution

Councillors Tapine / Boag

That Council:

a.     Approve the inclusion of a Remission for Farmland Under 5 Hectares.

b.     Approve the inclusion of a Remission of Refuse Collection and/or Kerbside Recycling Targeted Rates.

c.     Approve the inclusion of a Remission for Residential Properties Used Solely as a Single Residence.

d.     Approve the removal of Remission for Land Subject to Special Preservation Conditions.

e.     Approve the removal of Remission of Uniform Annual General Charges (UAGC) and Targeted Rates of a Fixed Amount on Rating Units Owned by the Same Owner.

f.      Approve other minor changes detailed in this report

g.     Note proposed amendments to rating differentials and definitions within the draft Revenue & Financing Policy.

h.     Note proposed reintroduction and amendments to the Rating Policy.

i.      Approve Council officers consulting on the Rates Remission Policy in conjunction with the Revenue & Financing Policy.

 

 

 


 

7.    Draft Rates Postponement Policy

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Document ID:

960526

Reporting Officer/s & Unit:

Garry Hrustinsky, Investment and Funding Manager

 

7.1   Purpose of Report

To review and update the Rates Postponement Policy in accordance with s.110 of the Local Government Act 2002.

 

To better align the policy with proposed Rating Policy and Remission Policy amendments.

 

To recommend the proposed amendments to the Rates Postponement Policy for adoption by Council and subsequent consultation with the community.

 

At the Meeting

The Investment and Funding Manager spoke to the report noting that the review of the Rates Postponement Policy was triggered by the review of the Revenue and Financing Policy.

 

Council resolution

Councillors Mawson / Taylor

That Council:

a.     Approve the proposed amendments to the Rates Postponement Policy to remove Postponement for Farmland.

b.     Note proposed amendments to rating differentials within the draft Revenue & Financing Policy.

c.     Note proposed reintroduction and amendments to the Rating Policy.

d.     Approve Council officers consulting on the Rates Postponement Policy in conjunction with the Revenue & Financing Policy.

 

 

 


 

8.    Sportsgrounds Charges Relief Package

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

964142

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property

 

8.1   Purpose of Report

To seek Council approval for the remission of Sports Grounds Charges and Rodney Green Centennial Event Centre hire charges for the 2020 winter sports period and the 2020/21 summer sports period.

 

At the Meeting

Councillor Price declared a conflict of interest as the Chair of Basketball Hawke’s Bay.

The Manager Property spoke to the report noting that the proposed fees and charges remissions only apply to the 2020 winter sports season and the 2020/21 summer sports season, and would align Council with Hastings District Council.

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

·        The estimated cost noted in the report is a combination of lost revenue and refunds.

·        The intention is that this would be a blanket remission on sportsground charges for all sporting codes.

·        Remissions apply to non-professional Not for Profit sports organisations only. Commercial activities will still be charged.

·        Professional rugby at McLean Park is not included, but some individual games may be considered on a case by case basis.

 

ACTION:  Council officers to come back to Council with additional information around how accountability for relief flowing back to clubs from regional sports organisations may be captured.

 

Council resolution

Councillors McGrath / Mawson

That Council:

Resolve

i.      To approve the remission of Sports Grounds charges and Rodney Green Centennial Event Centre hire charges for the 2020 winter sports period and the 2020/2021 summer sports period.

ii.     Approve that the remissions be funded from any unused portion of the Rental Relief Fund and Rates Relief Fund approved 30 April 2020 and to ensure that the budget requirements of the activity are met.

iii.    To approve the general guidance criteria for remission:

·      Remission to be given to non- professional Not for Profit sports organisations only. Where relief is given to Regional Sports organisations then the expectation is that this will flow back to clubs and accountability for this may be required at Council’s discretion.

·      Applies to seasonal hire for open grounds and the Rodney Green Centennial Events Centre

·      One off open ground sports games in general excluded, however remissions may be considered on a case-by-case basis.

·      McLean Park charges in general to be excluded; however, remissions may be considered on a case-by-case basis.

·      Representative games and tournaments excluded.

iv.    To approve that delegation be given to the Director of Corporate Services  and Council’s Team Leader Parks, Reserves, Sportsgrounds to approve remissions.

v.     To note that this relief is an extension to the rates and rental relief approved by Council 30 April 2020 and is in response to the financial effects and hardship caused by the Covid-19 pandemic.

 

Councillor Price did not participate in the discussion or vote due to his conflict of interest in relation to Basketball Hawke’s Bay.

   

 

The meeting closed at 4.00pm.

 

 

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

 

 

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

 

 

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

 


 

Appendix A