Meeting Date:

Thursday 19 November 2020

Time:

10.00am

Venue:

Napier War Memorial Centre
Marine Parade
Napier

Council Members

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

Officer Responsible

Interim Chief Executive

Administrator

Governance Team

Next Council Meeting

Thursday 17 December 2020

Officer’s Recommendation

That Council:

a.     Approve that the Flood event on 9 November meets the requirements as set out in the Rates Remission Policy for Remission for Significant Extraordinary Circumstances, and will relate to those that have been displaced permanently from their household as a result of flood damage

b.     Approve the remission for the qualifying rating unit for the full 2020/21 year i.e. all instalments

c.     Approve the delegation for the decision on the individual remission be provided to the Director Corporate Services and Chief Financial Officer.

d.     Approve up to $200,000 for “Remission of Rates in Response to Significant Extraordinary Circumstances” for qualifying rating units as a result of the flood event on Monday, 9 November 2020

e.     Approve the redirection of $200,000 of funds from the rates relief package that was not fully allocated as a result of the COVID-19 pandemic for the purposes of Rates Remission for Significant Extraordinary Circumstances

f.     Note that a form will be made available to those impacted following Council approval of the remission.  The application form will be available on the Council website, Customer Services and our library

g.     Note that there may be other scenarios that may not directly meet the resolution above, and these will be bought back to Council for a decision on a case by case basis.

Officer’s Recommendation

That Council:

a.     Receive the 30 June 2020 Annual Report of the Hawke’s Bay Museums Trust

At the Meeting

The Strategic Māori Advisor spoke to the report giving a short background of what bi-lingual achievements have been made to date, noting the context within which the te reo strategy, recently adopted by Council, was developed.

It was noted:

·     McLean Park was the first fully bilingual Council venue. The process involved not just ensuring te reo was properly integrated at the venue, but also simplifying the English which had benefits for other readers.

·     The learnings from McLean Park were then applied to Council’s Waste Management Project and the Customer Service Centre, and the Council website has been translated.

·     At the request of the Māori Committee dual place names and bilingual signage in Council parks, reserves and facilities has been implemented using the national Māori-English Bilingual Signage Guidelines. The te reo place-names are not translations, but rather the actual Māori place names.

·     It is intended that Council work with mana whenua to help tell the stories related to the place names in a way that recognises and upholds cultural intellectual property.

·     A further next step is the use of nationally agreed terms for zero waste programmes and libraries, to ensure consistency in what people see as they travel through the country.

In response to questions it was clarified:

·     A time frame has not been agreed with mana whenua around the cultural stories as yet. An agreed process needs to be developed about how stories would be presented.

·     Stories will also be integrated into the region’s Council cultural app (Te Kupenga), which is due to be launched in a fortnight at the Local Regional Leaders Mayor’s, Chairs and Chief Executives meeting.

·     The cultural app is intended to boost understanding of, and engagement with, Te Matau-a-Māui knowledge, stories, and language. It will be similar to the Waikato Council’s one, Kawe Kōrero.

Māori Committee's recommendation

The Māori Committee:

a.     Endorse the report as a consolidation of bilingual signage and dual place-names applied to Council projects over the 2017-2019 Triennium.

b.     Approve the Principal Māori Advisor to engage mana whenua to capture stories relating to Māori place-names reinstated to parks and reserves, with an agreed level of cultural intellectual property made available to the public domain.

c.     Approve the adoption of the national ‘Māori-English Bilingual Signage – A Guide For Best Practice’ as the guide for bilingual signage and dual place-names.

d.     Approve the use of national te reo Māori lexicons for Libraries and Para Kore Zero Waste, with a process developed for accepting national lexicons for future bilingual projects.

At the Meeting

The Director Community Services spoke to the report noting that:

·     Expressions of interest will be sought to increase Māori Committee membership, in order to satisfy quorum needs and to build a diversity of skills within the Committee.

·     Applicants will not need to be entity based.

·     There is an intention for rangatahi to be encouraged to become involved, however it is not essential at this point in time.

·     The Māori Committee will be integrated into the Council meeting schedule in 2021.

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

·     Advertising will take place soon so that the new members can start in the new year. This will include shoulder tapping possible candidates as well.

·     This model has been used in other Councils and has been found to build the mana of the Committee and strengthen community relationships.

Māori Committee's recommendation

The Māori Committee:

a.     Approve the amended Māori Committee draft Terms of Reference to provide for three additional community representatives from the Ahuriri Māori community.

At the Meeting

A representative of the Pacific Surf Lifesaving Club spoke to their request to initiate a café- type operation in the Club, as a variation to their lease agreement which they are also seeking further renewal of their lease. The intention is to use existing staff to run the café function to provide training and employment opportunities. It is hoped that the increased social options will help address some of the less social activity that has been noticed in the area recently.

In response to questions from councillors it was clarified that:

·     The hall room can be hired out, and it is used by community sports and dance groups. It is also used as a polling station and may be used for a meeting room on occasion.

·     The Pacific Surf Lifesaving Club lease is for the grounds only, the Club own their own building. The rent is calculated based on what would be paid for a standard residential property with discounting applied in recognition of the community nature of the business.

·     A cycle hire business also operates from the property following authorisation of the sublease by Council in 2010.

·     While there are some infrastructure assets that

·     The Clubrooms are in a liquor ban area, and while they could apply for the appropriate permits the risk was considered too high for the Club based on the inability to fully control the behaviour of those hiring the rooms and ensuring no litter in the beach environment. 

The innovation of the Club was recognised in thinking about ways to upskill and provide employment for members.

It was requested that when discussing matters of accessibility the term “accessible” be used rather than “disabled”.

Committee's recommendation

The Sustainable Napier Committee:

Recommend Council approve:

i.      A lease renewal, pursuant to Section 54(1)(d) of the Reserves Act, for a further ten years from 1 November 2020 for the Pacific Surf Lifesaving Club Incorporated for their Clubrooms on Marine Parade.

ii.     A variation to the lease, pursuant to Section 114 of the Reserves Act, to allow the Pacific Surf Lifesaving Club to sell coffee and other non-alcoholic beverages, ice creams and similar products, and finger food and snacks from its clubrooms.

iii.    That the variation is subject to the club obtaining all necessary consents, approvals or permits which may be required.

At the Meeting

The Manager Property spoke to the report, noting that in this instance Council owns both the land and the building.

In response to questions from councillors it was clarified that:

·     The Taradale Bridge Club’s preference to be in this area would not have any effect on this lease.

Committee's recommendation

The Sustainable Napier Committee:

a.     Recommend Council agree to enter into a new lease with the Central Football Federation for the land and building occupied at Park Island under Section 54(1)(b) of the Reserves Act 1977 for a term of five years with two, two year rights of renewal.

At the Meeting

The Manager Regulatory Solutions and Mr Philip Hindrup spoke to the report, providing a brief overview of the process followed to date.

In response to questions from councillors it was clarified that:

·     When the committee is considering potential commissioners for appointment, there are a number of ways delegation could be passed on to the successful appointee such as via a report leading to a formal resolution, letter of the committee and so on.

·     Mr Hildrup is happy to provide sample reports to the team to help support their move into the new area of appointing commissioners in this way.

ACTION A report was requested to be brought through to the next meeting of Future Napier (scheduled for 3 December 2020) on the current state of national discussions in relation the Resource Management Act. 

Committee's recommendation

The Future Napier Committee:

a.     Receive the Independent Report Councillor Consent Hearing Delegations attached as Attachment A to this report, which includes:

i.      Annex A – Quality Planning Guidance – The use of Commissioners 2017

ii.     Annex B – NCC Current Hearings Committee Terms of Reference

iii.    Annex C – Guidance Criteria for Delegations to and Assignment of Commissioners

b.     Approve the changes to the Hearings Committee Terms of Reference attached as Appendix B to this report.

At the Meeting

The Director City Strategy spoke to the report, noting briefly an error which will be corrected – the wrong Te Reo is referred to in the report in relation to “Team Napier”.

The Director provided a brief background on the discussions that have taken place with key stakeholders in relation to the masterplan for the civic precinct. The tender process for the consultant has just closed and the tenders are being assessed. It is intended by the Working Group that public information on the intention for the space be prepared and made public as quickly as possible, so people can begin to engage with the plans.

In response to questions from councillors it was clarified that:

·     “Human scale” refers to the height of a building and scale in relation to a pedestrian. The built environment in Napier is quite low in comparison to many larger cities. A footnote providing a definition of “human scale” will be included in the public information

·     Decisions have yet to be made in relation to what will happen to the existing library building; the interest in developing the Civic Building site as a hotel has dissipated with the impacts of COVID-19 so the planned demolition has been put on hold at this time.   The Masterplan for the Precinct may determine a different direction for the two buildings than had been considered originally.

·     The timeline that ‘action’ will be seen on the site will depend on when the Masterplan is accepted by Council; it is possible that this may not be until 2022 depending on the process.

·     It has been agreed that the library will go back into the site, but “the site” is seen as the whole Precinct and so there may be some flexibility to where on the site it is placed.

·     The challenge of having a smaller library within the museum building and the impacts on both activities was recognised, and the importance of ensuring the benefits and excitement of the Masterplan possibilities are very clear to the community was reiterated.

·     The seawalls mural on the Civic Building will remain in place until a decision is made on where this could be housed.

ACTION The team to investigate utilising the space around the Precinct for different summer activities to encourage people into the area and help support businesses close by.

ACTION The Working Group will consider and bring a report to Council on options for the Civic site, including the option to continue with the demolition of the Civic Building noting that this would now incur costs.

Committee's recommendation

The Future Napier Committee:

a.     Endorse the Civic Precinct Framework

At the Meeting

The Planning Projects Facilitator spoke to the report, providing a short overview of the Cathedral’s request for a market and the requirements to support this.

In response to questions from councillors it was clarified that:

·     The market in Clive Square is predominantly food-based and the Cathedral’s market is intended to be primarily crafts and family activities so the nature of each is different.

·     If the Cathedral market is successful they would like to make it an annual event.

Committee's recommendation

The Future Napier Committee:

a.     Approve Anglican Diocese of Waiapu to operate a market within Cathedral Lane on Saturday, 21^st November 2020, where the trading of goods and services will occur.

b.     That a DECISION OF COUNCIL is required urgently as the market is two days after the next Council meeting on the 19^th of November 2020.

Council Resolution

A Decision of Council was taken at the Future Napier Committee held on 22 October 2020

That Council:

a.     Approve Anglican Diocese of Waiapu to operate a market within Cathedral Lane on Saturday, 21^st November 2020, where the trading of goods and services will occur.

At the Meeting

The Manager Regulatory Solutions spoke to the report, noting that the number of applications has slowed over the last few weeks but the amount of pre-activity to an application is high so it is anticipated that another peak will be experienced just prior to Christmas.

A brief overview was provided on the current applications. 

In response to questions from councillors it was clarified that:

·     A dashboard is under development so the team will be able to see in real time the number of applications underway.

·     Heritage matters have to be worked through where these apply, but there are not time frames that this must be completed by.

Committee's recommendation

The Future Napier Committee:

a.     Note the resource consent activity update.

At the Meeting

In response to questions from councillors it was clarified that:

·     A date for the Implementation Working Group to reconvene has not yet been set but is anticipated to be in the New Year.

Officer’s Recommendation

The Future Napier Committee:

a.     Receive the confirmed minutes of the Heretaunga Plains Urban Development Strategy Implementation Working Group meeting held on 14 September 2020.

At the Meeting

The Community Advisor spoke to the report, providing a brief overview and noting that the increase in funding is in order to provide a larger scale event based on the success of previous years.

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

·     If the funding application is unsuccessful the event would still proceed but would need to be scaled back down.

·     The application will be for funding up to $10,000. This amount to be on top of the $4,000 internal funding already allocated for this event.

The Chair noted that having attended the Celebrate Cultural DiverCity Event in previous years, that it is a wonderful opportunity to showcase diversity in our City and she was pleased to see that this had become an annual event.

Committee's recommendation

The Napier People and Places Committee:

a.     Approve the application to apply for external funding from the Ethnic Communities Development Fund, for the 2021 Celebrate Cultural DiverCity Event.

At the Meeting

The General Manager National Aquarium of New Zealand spoke to the report and provided a brief overview. It was noted that the application was made in response to Covid-19 for one-off funding assistance for the 2020/21 financial year.

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

·     The funding must be used for the purposes outlined in the application. Any amount not required for the agreed use will be repaid.

·     Funds will not be clawed back should the facility perform better than expected.

·     Council officers are satisfied that having to acknowledge assistance from the WIRF will not adversely impact Council’s branding.

Elected members congratulated staff on the successful application.

Committee's recommendation

The Napier People and Places Committee:

a.     Approve and agree to the terms of the Wildlife Institutes Relief Fund (WIRF) Deed of Grant with the Department of Conservation (DOC).

At the Meeting

The Manager Property spoke to the report, providing a brief overview and noting that the playing field will remain under Napier City Council’s control in terms of bookings.

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

·     The view in the past has been that Napier City Rovers Association Football Club Inc. (Napier City Rovers) appeared to have exclusive use of the field, however this is not the case. Use of the field is at Council’s discretion.

·     This is considered to be the premier field for football/soccer in Napier and this sport is therefore given preference. It was noted that the ground is also a recreation reserve.

·     Maintenance of the playing field has always been Council’s responsibility. Users pay through Council’s Fees and Charges Schedule for use of the grounds.

·     The club room hireage is between Napier City Rovers and other users.

·     Other users can have access to the grandstand and public toilets.

·     The current lease has been rolling over on a month by month basis for around two years.

·     In general, with the exception of the hockey turf and bowling greens, other sporting codes in Napier also rent the grounds they play on. The sporting groups usually own their club rooms with a ground lease from Council.

Committee's recommendation

The Prosperous Napier Committee:

Resolve:

i.      That pursuant to Section 54(1)(b) of the Reserves Act 1977, to grant a lease to Napier City Rovers Association Football Club Inc. for an area of land at Park Island Reserve occupied by the Club’s clubhouse, changing rooms and grandstand.

ii.     That the term of the lease be for a period of 15 years, with one right of renewal.

Officer’s Recommendation

That Council:

Receive the report for Documents Executed under Seal for the period 21 September – 30 October 2020.

Date

Document

22.09.2020

Consent to Sub-let – 10 West Quay

22.09.2020

Lease – 88 Meeanee Quay

29.09.2020

Lockheed Trust assignment of lease - Bodmin

30.09.2020

Consent 67 Oak Road, Napier.

30.09.2020

Licence to Occupy – Sunday Market

30.09.2020

Two consents to Sub-let part interest in Ground Lease 9921070.1

8.10.2020

Freeholding 34 Austin Street, Onekawa

13.10.2020

Renewal and Variation of Lease – Greendale Tennis Club

21.10.2020

Freeholding 32 Austin Street

21.10.2020

Freeholding 30 Austin Street

Officer’s Recommendation

That Council:

a.     Receive the Tenders Let report for the period 21 September – 30 October 2020.

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.  Property Purchase

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.

Reports from Sustainable Napier Committee held 22 October 2020

1.  Museum Collection Storage Facility

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)

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 Napier People and Places Committee held 5 November 2020

1.  Creative Communities September 2020 Distribution of Funds

7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

Reports from Prosperous Napier Committee held 5 November 2020

1.  Land acquisition & Road Stopping - McLeod Road

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.

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

Youth Council representative

Chief Financial Officer

Manager Community Strategies

Senior Māori Advisor

Investments and Funding Lead

Strategic Planning Lead

Property Manager

Senior Project Manager [from 10.40am]

Administration

Governance Team

Council resolution 

That the Draft Minutes of the Ordinary meeting held on 27 August 2020 be confirmed as a true and accurate record of the meeting.

Council resolution

That the Draft Minutes of the Extraordinary meeting held on 27 August 2020 be confirmed as a true and accurate record of the meeting.

Council resolution

That the Draft Minutes of the Extraordinary meeting held on 15 September 2020 be confirmed as a true and accurate record of the meeting.

Council resolution

That the Draft Minutes of the Extraordinary meeting held on 28 September 2020 be confirmed as a true and accurate record of the meeting.

At the Meeting

The Investment and Funding Manager spoke to the report, noting the extensive process followed to bring the policy suite to this point. The policies are now to be taken to the community for feedback; the intended consultation outline and hearings were briefly reviewed.

In response to questions from councillors it was clarified that:

·           A web page is being set up where rate payers can enter their address and get an indication of how their property may be affected by the proposed changes. 

·           The density and broad ranging nature of the consultation information is recognised, and summary documents and explanations in lay terms will be provided.

·           The overall aim is about improving consistency and sharing the rates burden more fairly across the city – characteristics of properties had not been compared and aligned with one another from county days, almost 30 years.

·           It has been such a large piece of work because it has not been undertaken as intensely in that 30 years, although a first principles review was completed in 2001. Stage 1 of the process was begun by the previous council and the current council has progressed the work to this point where the thoughts of the public will be sought.

·           Where parties are considered “significantly affected” this means a change of about 20-25% to the current setting is indicated. 

It was noted that the rates remission policy also included in the policy suite contains the option to receive a remission for lower waste.

Council resolution

That Council:

a.     Note the draft Revenue & Financing Policy, Rating Policy, Rates Remission Policy and Rates Postponement Policy were adopted by Council on 15 September 2020.

b.     Approve the Statement of Proposal amending the Revenue & Financing Policy, Rating Policy, Rates Remission Policy and Rates Postponement Policy.

c.     Approve the Consultation Plan for proposed amendments to the Revenue & Financing Policy, Rating Policy, Rates Remission Policy and Rates Postponement Policy.

At the Meeting

The report was taken as read, with the Mayor noting that it seeks Council’s approval for the proposed updates to the Hearings Committee.

Cr Wright was thanked for her service to the Hearings Committee over most of her extensive career as a councillor.

It was confirmed that the Māori representative will undertake the “Making Good Decisions” training required for RMA related panel members and commissioners.

A further update to the Hearings Committee Terms of Reference is to be brought to Council, which will propose to allow the Hearings Committee to appoint commissioners, and it is intended that stronger cultural perspective in included moving forward.

Council resolution

That Council:

a.     Receive Cr Wright’s resignation from the Hearings Committee

b.     Approve the Mayor’s proposed nomination of Cr Browne to the Hearings Committee seat vacated by Cr Wright

c.     Approve the additional nomination of Cr Simpson to the Hearings Committee

d.     Approve the additional nomination of a representative of the Māori Committee to the Hearings Committee

i.      Noting that the Māori Committee members will make the selection of the representative from their membership

e.     Note that officers will make any updates required to documentation from the resolutions above

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Approve the All Waters Communication and Engagement Strategy for implementation.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Endorse the recommended policy approach in the report, for preparing the Draft District Plan for the purposes of undertaking consultation and engagement with the Napier community.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Endorse the development of an Internal Practice Note for Planners that will provide additional guidance in the assessment and application of Financial Contribution conditions on resource consents applying to residential developments in the city centre.

b.     Note that consideration will be given to other areas of Napier before the final resolution is brought back to Council.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Note the resource consent activity update

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the unconfirmed minutes of the Hawke’s Bay Civil Defence Emergency Management Group meeting held on 8 June 2020.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.      Endorse the revocation of Reserve status for Drainage Reserve land as described in the Schedule below, subject to appropriate consultation being undertaken first.

SCHEDULE

Hawkes Bay Land District - Napier City

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Recommend that Council agree to grant a new lease, under Section 54(1) (d) of the Reserves Act 1977, for a pop-up café to continue to occupy the northern part of the Marine Parade Foreshore Reserve.

b.     That the initial term of the new lease be for a period of 2 years plus two rights of renewal of 2 years each.

c.     That the placement of outdoor furniture be allowed outside of the leased area but such placement to be approved by Council’s Team Leader Parks, Reserves, Sportsgrounds.

d.    That the terms of the lease specify that greywater is disposed of appropriately off-site.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Note the information on two recovery funds recently established, those being:

·      Recovery Projects Fund

·      Te Puawaitanga – Green Communities Together Fund

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Approve that the Senior Māori Advisor leads the Te Reo Māori policy process. 

b.     Approve the Senior Māori Advisor to engage with external authorities to participate writing the policy.

c.     Investigate best practice for Council staff to follow process and procedures.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Health and Safety report.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the report titled NCC H&S Charter and Due Diligence Work Plan.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

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

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Risk Management Report September 2020

b.     Note the Risk Management work being undertaken

c.     Note the current high and extreme risks

d.     Note the emerging risks

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Note the progress with Three Waters Reform Programme.

b.     Note that the DIA Funding Agreement and Delivery Plan will be circulated to the committee via email and any feedback is to be provided to the Director Infrastructure Services by 23 September 2020.

At the meeting

There was no discussion on this item.

Council resolution

The Audit and Risk Committee:

a.     Receive the snapshot report on Napier City Council’s Investment and Debt as at 31 August 2020.

At the meeting

A brief explanation of sensitive expenditure was provided – the current practice is that a report is brought to the Audit and Risk Committee to ensure appropriate scrutiny.

In response to questions from councillors it was clarified that:

·         The current travel supplier was approved following a rigorous procurement process, and is one of the suppliers included in the All of Government panel contract which can provide financial benefits to smaller providers. The supplier is able to provide a 24/7 service to travellers through its several offices across the world.

ACTION The length of the existing travel supplier contract to be advised to elected members

Council resolution

The Audit and Risk Committee:

a.     Receive the 30 June 2020 quarterly report of Sensitive Expenditure for the Mayor and Chief Executive and review for compliance with the Sensitive Expenditure Policy.

At the meeting

There was no discussion on this item.

Council resolution

The Audit and Risk Committee:

a.     Resolve that the internal audit programme for 2020/21 from Crowe is received and approved.

At the meeting

There was no discussion on this item.

Council resolution

The Audit and Risk Committee:

a.     Receive the report from PwC titled ‘Napier City Council Annual Tax Update year to 30 June 2020’.

At the meeting

In response to a councillor’s question it was clarified that Council is not committing itself to a loan with this decision, but creating the opportunity to take up this option should it be considered appropriate.

Council resolution

The Napier People and Places Committee:

a.     Approve to agree to the terms of the Strategic Tourism Assets Protection Programme (STAPP) funding agreement with MBIE.

b.     Approve to accept the funding in line with the agreement

$300k 20/21

$200k 21/22

c.     Delegate authority to the Director Corporate Services the negotiation of the loan agreement should Council wish to take this up.

d.     Delegate authority to the Director Community Services to sign the funding agreement and if required make any minor changes as required by MBIE (Ministry of Business, Innovation and Employment).

At the meeting

There was no discussion on this item.

Council resolution

The Prosperous Napier Committee:

a.      Recommend that Council resolve pursuant to Section 114 of the Public Works Act 1981 to consent to the land described in the Schedule below to be declared road and vested in the Napier City Council.

SCHEDULE

Hawkes Bay Land District – Napier City

At the meeting

There was no discussion on this item.

Council resolution

The Prosperous Napier Committee:

a.     Note the update on procurement and contract management at Council with particular reference to broader outcomes.

At the meeting

There was no discussion on this item.

Council resolution

The Prosperous Napier Committee:

Resolve:

i.      That pursuant to Section 54(1)(c) of the Reserves Act 1977, to grant a lease to the Hawke’s Bay Hockey Artificial Surface Trust for an area of land at Park Island Reserve accommodating the existing facility plus including provision for a proposed new turf.

ii.     That the term of the lease be for a period of 15 years, with one right of renewal.

At the meeting

In response to questions from Councillors it was clarified that:

·         The Transportation Team assessed the parking provisions following discussion at the People and Places Committee. Moving the parks provides greater safety in the area, and further parking is available further round.

·         The area in question is a grass verge which is not designated

·         The design and proposal came to Council from the Ministry of Education so it was anticipated that the Ministry would have communicated with the affected schools directly.

As a matter of further clarification, Council was advised that the entire proposal had come from the Ministry of Education and wasn’t a Council led discussion. Council then expressed a hope that the Ministry had consulted with the school.

ACTION Staff at the Nelson Park and Fairhaven schools to be consulted on the intended parking arrangements provided. Officers to advise elected members of the outcome of the consultation.

A motion was proposed to lay the item on the table at this time (McGrath/ Mawson) but following debate and the associated vote, this was lost.

Council resolution

The Prosperous Napier Committee:

a.     Resolve pursuant to Section 48 of the Reserves Act 1977, to approve the granting to Her Majesty the Queen for a Public School (‘the Grantee’) an easement over an area of land in Nelson Park adjacent to the Nelson Park School. This is to allow a turning circle to be completed and to formalise a right of way over the access way already formed, incorporating the vehicle turning circle and running between the existing school entrance and Jull Street.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

a.     Receive the Tenders Let for the period 1 August – 18 September 2020.

At the meeting

There was no discussion on this item.

Council resolution

That Council:

Receive the report for Documents Executed under Seal for the period 1 August – 18 September 2020.

Council resolution

That the public excepting the Youth Council representative be excluded from the following parts of the proceedings of this meeting.

Note that the Youth Council representative was briefed by the Chief Executive on the sensitivities involved in public excluded items and the need for confidentiality around these.

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:

Reports from Audit and Risk Committee held 18 September 2020

1.  External Accountability: Draft Annual Report 2019/20

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.  Resource Consent

6(a) Prejudice the maintenance of the law, including the prevention, investigation, and detection of offences and the right to a fair trial

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 Napier People and Places Committee held 24 September 2020

1.  Offsite Kiwi Facility Lease

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.  Grants Allocation SubCommittee 2020/21 - Distribution of Funds

7(2)(c)(i) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to prejudice the supply of similar information or information from the same source and it is in the public interest that such information should continue to be supplied

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

Reports from Prosperous Napier Committee held 24 September 2020

1.  Rental Relief Update

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

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

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

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

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

Present

Mayor Wise (in the Chair), Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Crown, Mawson, McGrath, Price, Simpson, Tapine, 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 Asset Strategy

Manager Projects and Design

Project Management Engineer

Administration

Governance Team

Council resolution

That the apology from Councillor Taylor be accepted.

At the Meeting

In response to a councillor question it was confirmed that the January break from meetings has been maintained in the proposed schedule. 

Council resolution

That Council:

a.     Adopt the meeting schedule 2021

i.      Noting that Hawke’s Bay Regional Council have confirmed the availability of their Chamber for all but two of the proposed dates

ii.     Noting that this schedule re-integrates the Māori Committee into the six week meeting cycle as previously directed by resolution of Council

iii.    Noting that further extraordinary or emergency meetings may be requisitioned as required throughout the year

Council resolution

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

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to:

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

48(1)(a) That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:

Agenda Items

1.  Kenny Eriksen Roundabout

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.

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

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

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

Present

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

In Attendance

Interim Chief Executive, Director Corporate Services, Director Infrastructure Services, Director City Services, Director City Strategy, Manager Communications and Marketing, Chief Financial Officer, Manager Asset Strategy, Manager Design and Projects, Senior Māori Advisor, Manager Regulatory Solutions, Corporate Accountant,

Karen Young, Audit Director - Audit New Zealand

Administration

Governance Team

Council resolution

That the apology from Councillor Brosnan be accepted.

At the Meeting

The Chief Financial Officer spoke to the report and it was noted that this agenda item reports on Council’s rates position for the year whereas the following agenda item is in relation to Council’s overall operating position, including other sources of funding in addition to rates.

A brief overview was provided and Council officers confirmed that the net rates deficit of $2.3Million was a result of the significant impacts of Covid-19 this year, and mainly due to the closure of Council’s business and tourism facilities. The report requests that Council fund the deficit from loans.

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

·         All rates arrears are included in this position to year end, and the year to date rates arrears figure will be included in the first quarterly report. 

·         A loan term of 25 years would result in approximately a 0.2% increase on rates. Any shorter timeframe would increase the impact on rates. Loan terms are typically delegated to Council officers.

·         The interest rate currently applied is 3%. This and interest rate assumptions going in to the Long Term Plan will be reassessed.

·         In the event of future surpluses, Council may wish to apply any surpluses against the loan.

Elected members noted that Council had anticipated a higher deficit and were happy to see the final amount is lower than initially thought. 

Council resolution

That Council:

a.     Note that lost revenue due to Covid-19 has impacted Council’s rates position for 2019/20 resulting in a rates deficit of $2,341,603

b.     Approve funding the 2019/20 net rating deficit of $2,341,603 from loans.

At the Meeting

The Mayor introduced Karen Young, Audit Director from Audit New Zealand and invited her to speak to the report alongside Council’s Chief Financial Officer. The Independent Auditor’s Report (Audit Opinion) was tabled at the meeting (refer Appendix A).

The Chief Financial Officer spoke to the report, providing a brief overview and confirming that due to the significant impacts of Covid-19, Council would be reporting its first ever operating deficit of $2Million. It was noted that the unbalanced budget has been carefully considered with the most financially prudent option being to loan fund the shortfall due to its one-off nature. Council will be working towards a balanced budget for the Long Term Plan 2021-31.

The audit opinion confirms Audit New Zealand are satisfied that the financial statements fairly reflect Council’s activities for the year and its financial position, and includes an ‘Emphasis of matter’ paragraph explaining the impact that Covid-19 has had on Council’s operations, financials and activity groups.

Three performance measures have also been identified in the audit opinion where Audit New Zealand was unable to determine that the reporting on these matters was materially correct, including the number of complaints for three-waters, mainly due to the lack of detail captured by Council’s afterhours call provider. Council officers will work with the call provider to ensure that the call data is accurately recorded moving forward and it was noted that there will be a number of other Councils receiving a qualified audit opinion for the same matter.

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

·         Performance measures are detailed in Council’s quarterly reports.

·         The Department of Internal Affairs mandatory performance measures in relation to complaints have been in place since 2013. The issue was initially identified last year and this year Audit New Zealand looked at this across all Councils. There are around 24 other Councils currently being audited that use the same after hours call provider. The Audit Director noted that there are similar issues with Council’s system also. 

·         The value of Council housing will be included in land and buildings.

·         In response to questions around the Resident Satisfaction Survey results, it was noted that following the adoption of the Parking Strategy, Council officers are looking at separating Napier’s short term parking from long term parking. Key land purchases have also been identified to develop parking in the longer term.

·         The six public cemeteries in Napier are Western Hills, Park Island, Wharerangi, Taradale, Napier and Eskdale.

·         Income from gaming trusts is included in the actual report itself, relating to subsidies and grants.

·         The $2Million operating deficit is Council’s overall position; the $2.3Million rates deficit forms part of Council’s overall position.

ACTION:  Councillor Boag requested that Council officers provide her with the total value of Council’s housing as well as the amount of income that came from gaming trusts.

Officer’s Recommendation

That Council:

a.     Note the 2019/20 Annual Report has been considered by the Audit and Risk Committee.

b.     Note Council did not meet the balanced budget benchmark in 2019/20 due to the impact of Covid-19 on Council’s revenues.

c.     Resolve that the operating deficit of $2.2m for 2019/20 will be funded from loans

d.     Note the Auditor’s report when available will include an emphasis of matter paragraph drawing attention to the impact of Covid-19 as set out in the notes to the financial statements and activity groups.

e.     Note Council when the audit opinion is available will receive a qualified Audit opinion on the activity group statements relating to incomplete information about the number of complaints for some services.

f.     Note that the Audit opinion will be provided at the Council meeting of 2 November 2020, with the Audit Director for Audit NZ available to talk to the opinion.

g.     Adopt the Annual Report for Napier City Council for 2019/20 subject to any grammatical and minor changes and any changes due to the requirements of the audit process.

Council resolution

Substitute Motion

That Council:

a.      Note the 2019/20 Annual Report has been considered by the Audit and Risk Committee.

b.      Note Council did not meet the balanced budget benchmark in 2019/20 due to the impact of Covid-19 on Council’s revenues.

c.       Note as required under Section 80 of the Local Government Act (2002), Council considers the most financially prudent option is to fund Council’s 2019/20 net operating deficit of $2m from loans.

d.      Resolve that the operating deficit of $2m for 2019/20 will be funded from loans.

e.      Note the Auditor’s report when available will include an emphasis of matter paragraph drawing attention to the impact of Covid-19 as set out in the notes to the financial statements and activity groups.

f.        Note Council when the audit opinion is available will receive a qualified Audit opinion on the activity group statements relating to incomplete information about the number of complaints for some services.

g.      Note that the Audit opinion will be provided at the Council meeting of 2 November 2020, with the Audit Director for Audit NZ available to talk to the opinion.

h.      Adopt the Annual Report for Napier City Council for 2019/20 subject to any grammatical and minor changes and any changes due to the requirements of the audit process.

Council resolution

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

General subject of each matter to be considered.

Reason for passing this resolution in relation to each matter.

That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information where the withholding of the information is necessary to:

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

48(1)(a) That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:

Agenda Items

1.  Kenny Eriksen Roundabout

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.

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

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

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