Audit and Risk Committee

Open Agenda

 

Meeting Date:

Wednesday 9 December 2020

Time:

1.00pm

Venue:

Ikatere Boardroom
Level 2, Capeview
265 Marine Parade
Napier

 

 

Committee Members

John Palairet (In the Chair), Mayor Kirsten Wise, David Pearson, Councillor Nigel Simpson and Councillor Graeme Taylor

Officer Responsible

Director Corporate Services

Administration

Governance Team

 

Next Audit and Risk Committee Meeting

Friday 26 March 2021

 

 


Audit and Risk Committee - 09 December 2020 - Open Agenda

ORDER OF BUSINESS

Apologies

Mayor Wise

Conflicts of interest

Public forum

Nil

Announcements by the Chairperson

Announcements by the management

Confirmation of minutes

That the Minutes of the Audit and Risk Committee meeting held on Friday, 18 September 2020 be taken as a true and accurate record of the meeting...................................................................................... 46

 

Agenda items

1      Insurance Presentation - Aon Insurance......................................................................... 3

2      Monday, 9 November 2020 - Flood Event Report and Update......................................... 4

3      Wastewater Outfall Repair Update................................................................................ 13

4      Health and Safety Quarterly Report.............................................................................. 19

5      Risk Management Report December 2020.................................................................... 23

6      Sensitive Expenditure - Mayor and Chief Executive...................................................... 29

7      External Accountability: Investment and Debt Report.................................................... 40

8      Proposed Audit and Risk Committee 2021 Meeting Calendar....................................... 42  

Public excluded ............................................................................................................. 45


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 1

Agenda Items

 

1.    Insurance Presentation - Aon Insurance

Type of Report:

Information

Legal Reference:

N/A

Document ID:

1267774

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

Dave Jordison, Risk and Assurance Lead

1.1   Purpose of Report

To receive the update from Aon Insurance.

 

Officer’s Recommendation

The Audit and Risk Committee:

i.      Receive the verbal presentation from Aon Insurance

 

1.2   Background Summary

n/a

1.3   Issues

n/a

1.4   Significance and Engagement

n/a

1.5   Implications

Financial

n/a

Social & Policy

n/a

Risk

n/a

1.6   Options

n/a

1.7   Development of Preferred Option

n/a

 

1.8   Attachments

Nil


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 2

2.    Monday, 9 November 2020 - Flood Event Report and Update

Type of Report:

Information

Legal Reference:

N/A

Document ID:

1266574

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

Antoinette Campbell, Director Community Services

Richard Munneke, Director City Strategy

Jon Kingsford, Director Infrastructure Services

 

2.1   Purpose of Report

To provide an update to Audit and Risk Committee on the one in 250 year flood event that occurred in Napier 9th November 2020.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Receive the update on the Napier flood event/Civil Defence Emergency, 9 November 2020.

 

 

2.2   Background Summary

On Monday 9 November, Napier had 250.2mm of rain between 9.00am Monday and 9.00am Tuesday, its wettest day since 1963 and second wettest on record.  A total of 54mm of rain was received in one hour between 5.00-6.00pm on Monday and the Nelson Park rain gauge recorded 250.2mm in a 24 hour period. 

The downpour brought landslips and power outages, and trapped people in cars.   This was classified as a one in 250 year event, which resulted in a State of Emergency being declared by the Mayor at 8.10pm that evening.  Both the Hawke’s Bay Civil Defence Emergency Group, Fire and Emergency, Police as well as Napier City Council’s Incident Management Team were mobilised once the declaration had been made.

2.3   Issues

Property impact as a result of the flood event

As at 26 November, 2020, there were 115 uninhabitable dwellings, 386 Flood damaged dwellings but habitable, with 589 total flood effected dwellings.

The number of flood evacuees accounted for peaked at 173 and were accommodated at Kennedy Park, Angus Inn and Bay Beauty hotels.  As of 30 November, 57 units, all at Kennedy Park, were occupied by 92 adults and 55 children (147 people in total).  This suggests that there are still a large number of evacuees supporting themselves in alternative accommodation or have been able to get back into their homes since the building assessments were carried out.

A number of Council properties have also incurred damage as a result of the flood.  These are described in more detail below.

Roads affected by the flood event

As a result of the flood number of roads and slips as a result of the flood.  On 16 November, the following were noted as being impacted:

 

Milton Rd

Slips / footpath damage various sties

Slips

Thompson Rd

Slip - Tree across road, channelling water into property. Tree moved, part of slip material removed. 3 x properties still with limited access.

Slips

Hooker Avenue

Part of Hooker pavement has slipped into Gleeson Park. Hooker Ave closed to traffic. Napier Central School notified. Site will need assessing tomorrow.

Slips

Karaka Rd

Slip at top of Hornsey / Karaka.

Slips

Kowhai Rd

Small slip, one lane traffic opened.

Slips

Puketapu Rd

Slips cleared to allow traffic through. Signs installed.

Slips

Spencer Rd

Retaining wall has collapsed. One lane opened. Stop/Go 8am Tuesday morning, then assess safety / best way to clear site.

Slips

Puketitiri Rd

Small slip 500m East of Quarry Ridge

Slips

Breakwater Rd

Rock / debris falling from Bluff cliffs. Road closed. Requires assessment before reopening.

Slips

Brewster Rd

Slip on road (including downed lamp post). Awaiting for the lamp to be de-energised before clearing to commence. Will clear a path for access tonight then assess Tuesday.

Slips

Havelock Rd

House evacuated, needs sandbags across frontage

Slips

Springfield Rd

2 x slips (not yet evaluated) Pa and Powerstation

Slips

Kavanagh Rd

Slip on property

Slips

Milton Rd

Slip on bottom of road near the steps

Slips

Burns Rd

Failing retaining wall

Slips

Hospital Terrace

Mud slipping from property behind onto parking area, concerned about stability. Not affecting road

Slips

Battery Rd

Minor slips

Slips

Clyde Road

Retaining wall fallen onto car

Slips

Faraday St

Slip at back of her property - retaining wall has come down - rocks are falling when raining

Slips

May Avenue Steps

Slip on side of steps - unstable

Slips

Fitzroy Steps

Slip next to steps

Slips

Cumberland Rise

Slip between Sugarloaf walkway

Slips

Northe St

Slip / debris clearing

Slips

Poraiti Rd

Slip on road

Slips

Brewster St

Handrail removed (30m) as requested - will need to be reinstated after resident moves out.

Slips

Onslow Brewster steps

Reported as closed

Slips

Milton-Cameron Steps

Reported as closed

Slips

Puketitiri Rd

Scouring / TTM for sections of road

Slips

Tiffen Park Steps

Steps closed as requested

Slips

Hooker Ave

Slips x 2

Slips

Seaview Terrace

Clearing of driveway

Slips

Convent Rd

Slips - material to remove

Slips

Poraiti Rd

Swale Drain to be cut out - 30-40m

Slips

Puketapu Rd Cemetary

Slips to be cleaned up

Slips

 

Steps:

1. May Avenue / Faraday Steps Closed

2. Fitzroy Steps Closed

3. Milton Road / Cameron Steps Closed

4. Onslow-Brewster Steps Closed

5. Tiffen Steps Closed

Council’s Welfare Response

During the week of 9 November, support was available to the community with a Civil Defence Centre (CDC) established in Marewa, which was well received and close to those most impacted.  Council ran its customer services help line well into the night on Monday 9 November.

The CDC was open initially from 10.00am – 7.00pm but reduced its hours as demand reduced and closed on Monday 23 November. Agencies included:

·     Ministry of Social Development (MSD)

·     Kāinga Ora

·     Tihei Mauri Ora

·     Ministry of Business Innovation and Employment (MBIE)

·     Te Taiwhenua o te Whanganui-a-Orotū

·     Civil Defence Emergency Management (CDEM)

·     Victim Support

·     Red Cross

·     As well as Council’s customer services team. 

A food hub was set up by the Te Taiwhenua o te Whanganui-a-Orotū and Napier City Council.  Food was delivered to families identified through the MSD 0800 line.  The Salvation Army and Te Taiwhenua o te Whanganui-a-Orotū provided hot food to families over the weekend of 16 November including having a truck at Whitmore Park Onekawa, Pirimai Shops and the Tamatea Hotel.

 

Disposal of flood affected material

Council offered all flood affected material to be taken to the Transfer Station at no charge.  An update was provided on 16 November 2020.

·      342 free, flood-impacted loads through;

·      Therefore total just over 500 customer movements - our busiest day ever (aside from Saturday) was 303 customers in the day;

·     10 bulk haulage trips taken to landfill at 10 - 12 tonnes each;

In addition, suppliers such as HazMobile provided support for approximately 280 customers; with flood-affected people bringing chemicals that needed disposing of, with experts providing support and advice on chemical disposal.

Organisations involved with the Flood event

The following organisations were involved with the flood response:

·     Fire and Emergency New Zealand (FENZ)

·     Police

·     Health

·     New Zealand Red Cross

·     St John’s Ambulance

·     Ministry of Social Development (MSD)

·      Ministry for Primary Industry (MPI)/ Royal New Zealand Society for the Prevention of Cruelty to Animals (SPCA)

Council buildings update:

Overall the NCC Buildings portfolio performed relatively well.

·      No catastrophic failures of building elements

·      No subsidence noted

Aquarium

No damage however there was a significant reduction in salinity of the incoming water – down to 18ppt where it would usually be 30ppt. The drop in salinity appears to be due to rising ground (fresh) water at the site of the salt water bore. This is evidenced by the incoming “salt water” being far less saline than the ocean measured at the beach in front of the Aquarium.

Municipal Theatre

No damage

i-SITE/Par 2

Multiple roof leaks, photographs have been taken and sent to assessor for claim.

The Building Maintenance team to carry out further inspections and provide damage report.

Air conditioning unit had water running through it. Parts ordered to be installed as soon as possible.

Kennedy Park

Bark under trampoline and playground floated away.

Not covered by insurance.

Compressor in chiller water damaged - has been replaced.

War Memorial Centre

Flood water throughout the basement of the venue.

Removal of carpet and walls to 700mm complete, reinstatement under way.

Painting booked to be complete 15 December.

Lift wells pumped out, lifts working again, sump pumps on order.

Have asked site to keep a record of any lost earnings to be included in the insurance claim.

Assessors have been made aware this will be included.

McLean Park

Flood water throughout Centennial Hall.

Flooring warped, damage report being compiled by wood flooring specialists.

Walls and doors flood damaged, sourcing builders to commence removal of damaged areas.

Storage cupboards and sheds containing damaged equipment – inventory is being compiled for assessors.

Lift wells pumped out, service lift still out of service, parts being ordered.

Flood water throughout control boards of lighting towers, in hand with contractor.

MTG

Several leaks sprung up around the building and there was major flooding coming through under the Marine Parade doors (at the front end of the building) and an accompanying waterfall down to the basement level.

No collection items were damaged.

In summary, five buildings suffered surface water ingress and likely to incur significant costs to remedy (insurance assessors have visited all of these sites)

1.   War Memorial Centre

2.   MTG

3.   Ocean Spa

4.   23 McVay Street (residential dwelling – uninhabitable)

5.   Centennial Hall

Several buildings suffered water ingress from above with little or relatively minor damage. (on initial investigation). Most significant of these:

1.   I-site & Par 2 buildings

2.   Rodney Green Events Centre/Centennial Hall

3.   Aquatic Centre

Planning for remediation under way. All above likely to be subject of insurance claim (to building and/or plant/IT equipment).  The Centennial Hall floor has been severely impacted, and it is likely that this will need to be replaced.

Stormwater Supply Network

Napier’s stormwater system mainly relies on the use of open drains for conveyance of stormwater runoff.

The design standards currently being followed for the construction of reticulated stormwater network is to manage flooding from 1 in 10 year rainfall events, while the open waterways, overland paths and minimum floor levels are designed to manage flooding from 1 in 50 year rainfall events. However, as this standard was adopted in the late 1990’s large extents of Napier’s reticulated stormwater network is design to provide capacity to manage a 1 in 5 year rainfall event or less. While this is the case, no stormwater network in New Zealand is designed to prevent flooding in the event experience in Napier on the 9th of November 2020.

All major stormwater pump stations at Purimu, Onehunga, Cross Country Drain and Georges Drive were manned at site to clear the screen and to ensure uninterrupted pumping. There were no flood related issues to report around the Onehunga stormwater pump station and from the Bayview areas, perhaps due to less rainfalls in this area in comparison to Napier and Meeanee Catchments.

Power outages were experienced during the event however preliminary review suggests these outages occurred after the majority of rain had fallen and therefore after flooding had occurred. The impact of outages were experienced mainly at Sale Street and County Drain stormwater pump stations.

Backup power supply by way of portable generator was provided to the Sale Street stormwater pump station. This period of disruption was 2.15 hours, and occurred after 200mm of rain had already fallen.

The County Drain stormwater pump station (managed by HBRC) also experienced power outages and was impaired by faulty level controls.

Power disruptions also occurred at Cross Country drain stormwater pump station where 1 of  3 large generators lost power for almost 3 hours due to a diesel shortage. This outage occurred at a time well past peak water levels in the cross country drain and been pumped down. The outage resulted in a less than 500mm increase in drain water levels, still significantly lower than peak drain levels.

The south-west areas of Napier serviced by the Taipo Stream (HBRC owned and operated), experienced flooding affecting the Ngarimu Crescent, nearby streets and properties. It was also noted there was high water levels in the upper catchments (mainly Taradale and Green meadows area) despite lower levels at the Purimu drain stormwater pump station. 

Water Supply Network

All key facilities were inspected during and after the event, fortunately there were no issues of flooding or contamination to report in relation to water source, storage or reticulation assets. Following discussion with NCC’s Drinking Water Assessor and the District Health Board’s medical officer of Health, regular testing for Freely Available Chlorine (FAC) levels was implemented throughout the event to provide a measure for potential contamination potential due to network backflow risk. This information was used to inform the consideration of need for a city wide boil water notice should contamination occur. These tests demonstrated stable FAC levels throughout the duration of the event and therefore no contamination risk.

Continuity of water extraction and topping up the reservoirs were partially affected due to the power outage in the certain area of the city at different points of time during the storm.

Three bore sites were impacted by the power outage on 10th November (T3=>50 minutes, C1=>approximately 09 hours and A1=>5 hours). Reservoir levels and the weather conditions were monitored to determine whether generators needed to be deployed. This was not deemed necessary.

Overall water services and associated levels of service were unaffected.

Wastewater Network

Napier’s sewer system is known to experience inflow and infiltration during prolonged and/or intense rainfall events, this event was no exception. At the point where inundation depths exceeded ground levels by 150mm to 200mm, private gully traps in these areas would have been below flood level, thus providing a direct path for flood waters to enter the wastewater network. This on its own will have overloaded the capacity of the network, irrespective of inflow and infiltration volumes.

As a result of this situation, sewer manhole covers were popping in the worst affected areas, releasing heavily diluted raw sewer into already flooded streets. This gave rise a significant public health risk.

In order to minimise sewer overflow onto streets and properties the decision was made to release sewer into the County waterway and nearby channels, which flow into the Ahuriri Estuary. The duration of sewer discharge into the estuary lasted almost 58 hours to cease at around 3.30 am on Thursday, 12th November 2020.

The decision to release the sewer under emergency situation is in compliance within the provisions under section 330(1) (f) of the Resource Management Act 1991. Regional Council, Health Board and Iwi representatives were informed at/before the time of the discharge.

Residents were asked to avoid flushing toilets, hold off using showers, dishwashers or washing machines, to try to relieve stress on the network.

Flood damaged the sewer services to 47 properties. All council sewer mains have been restored either with temporary or permanent connections. Currently 5 private connections need temporary or permanent repair.

NCC’s environment team deployed contamination warning signs, carried out monitoring and carried out water quality sampling prior to, during and after the discharge of the sewer into the estuary.

Contamination levels – monitoring

·     Levels of contamination (of E.Coli) in Ahuriri Estuary upstream of the Westshore Tidal Gates discharge point (i.e. upstream of where contaminated stormwater is discharged):

9 Nov Prior to the event             - 300 cfu/100mL

9 Nov During the event              - 46,000 cfu/100mL

10 November at (18:05)            - 27,000 cfu/100mL

13 November at (16:08)            - 100 cfu/100mL

·     Levels of contamination at the Pandora Pond:

Prior to the event (09:45)           - 170 cfu/100mL

9 November (18:35)                  - 2,500 cfu/100mL

10 November (19:51)                - 42,000 cfu/100mL

14 November (17:55)                - 150 cfu/100mL.

Emergency Overflow Of Wastewater

Council were required to undertake an emergency overflow as a result of the volume of water experienced in the network.  A letter to formally notify the consent will be sent retrospectively to the Hawke’s Bay Regional Council.

Telemetry and Controls

During the flooding the SCADA and telemetry were largely unaffected. Some minor issues will need to be investigated however these did not have a material impact on the operation of the network.

Refuse

In order to facilitate a more timely clean-up for Napier residents, IMT made the decision to waive dumping fees at transfer stations for Napier residents disposing of flood damaged material. Council’s environmental team reported the following flood-related waste received at Redclyffe Transfer Station:

·     Busiest day ever, prior to the floods was 303 customers. Busiest day during floods – 554 customers

·     Total waste during ‘free for flooding period’ = 3,578 Tonnes (2,098 Tonnes ‘flood-related’)

·     Total lost income during ‘free for flooding period’ = $169,204.00

2.4   Significance and Engagement

N/A

2.5   Implications

Financial

A Mayoral relief fund was set up for the purposes of supporting those in need with 65 applications to date.  $100,000 from Central Government, $100,000 from the Hawke’s Bay Regional Council.  The community have also contributed approx. $14,000 at the time of writing this report. 

At the Council meeting on 26 November 2020, Council approved the flood event as a significant event for the purpose of the Rates Remission Policy.  Those that have been displaced by the flood can now request a remission under this policy.

Social & Policy

N/A

Risk

N/A

2.6   Options

N/A

2.7   Development of Preferred Option

N/A

 

2.8   Attachments

Nil


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 3

3.    Wastewater Outfall Repair Update

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

1266573

Reporting Officer/s & Unit:

Drew Brown, Senior Project Manager

Adele Henderson, Director Corporate Services

Jon Kingsford, Director Infrastructure Services

Dave Jordison, Risk and Assurance Lead

 

3.1   Purpose of Report

To provide the Audit and Risk committee an update on the Wastewater Outfall repair project.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Receive the update on the Wastewater Outfall repair project.

 

 

3.2   Background Summary

Napier City Council hold a resource consent issued by Hawkes Bay Regional Council that authorises the discharge of domestic sewage and industrial wastewater into Hawkes Bay at Awatoto via a marine outfall. This consent was granted in 2012 for a period of 25 years expiring on 6 December 2037.

The consent contains a number of conditions pertaining to operations, treatment, discharge quality, monitoring, reporting and liaison with tangata whenua. There are a number of specific conditions that accompany the consent, including conditions that specify the location of discharge, maximum flow rate of discharge, discharge quality limits and monitoring requirements.

In August 2018, two seeps were discovered during routine monitoring. One of these seeps, located approximately 70 m from shore, was repaired soon after discovery.  The second, located at approximately 700 m from shore, comprises multiple seepages around the gaskets of a fibreglass joint surrounding the main concrete pipes and continues to be an issue. Although minor in comparison to the 1,400l/s authorised to be discharged via the diffuser, combined, these seepages are resulting in wastewater being discharged at a rate of approximately 10l/s (at 300l/s discharge flow) – 30l/s. 

A broad range of work has been undertaken since the matter was discovered. This has involved receiving environment monitoring specific to the matter, physical investigations, engineering design considerations, workshops and considerations at Councillor level, consultation with tangata whenua groups, broader wastewater management considerations, preparation of an Emergency Response Plan and preparation of numerous technical reports to address the issue and the resource management requirements.

An Issues and Options report prepared by Beca in May has been influential in understanding the risks associated with short term remediation measures and has assisted in resolving a more responsible course of action. 

In preparing this report, Beca considered a number of options and provided views on the associated risk of further damage arising from physical works – as there is a very real risk that physical works to repair the seepages could result in further damage and a far greater discharge as a consequence.

Overall, the Beca report suggests that allowing the seepage to continue without measurable intervention until the outfall is replaced is the option of lowest risk.

Taking the recommendations of Beca into account, and in light of the low level of effects on the receiving environment identified through monitoring, high risk options for remediating the situation were discarded in favour of undertaking repairs with a low risk of exacerbating the issue within a broader project plan that looks to replace the entire outfall.  This approach was presented to Council’s Māori Committee and Risk and Audit Committee in June 2020 and was subsequently endorsed by Council.

Formal notification and an overview of the matter has also been provided to Heretaunga Tamatea, Ngāti Kahungunu, Maungaharuru-Tangitū Trust, Ngāti Parau and Te Taiwhenua o te Whanganui-a-Orotū. A copy of the letter is provided in Appendix A. We understand further, albeit less formal communication has been maintained by Charles Ropitini (Napier City Council, Principal Māori Advisor) with these groups. 

It is acknowledged that further consultation with these groups is required.

In August 2020, New Zealand Dive Services (NZDS) were engaged to undertake repairs to the outfall.

While awaiting NZDS to mobilise crew and equipment, Council City Services team trialled the shutdown of the entire wastewater network to confirm the process for doing so and to identify the maximum timeframe of zero flow the divers could expect from a shutdown should they require one. Several trails were successfully completed and identified that a full shutdown could be maintained for 90 minutes, and that it takes in excess of 3 hours to return wastewater levels within the network to normal dry weather parameters.

Repair work commenced in late September, with inspections of the diffusers and the 700m leakage site.

‘Additional leaks at 630m and 70m were identified during inspections, resulting in the repair of these leaks being added to the scope of NZDS. The leak at 70m has repaired shortly after identification.’ The 70m leak was previously identified and repaired, It was reinspected and confirmed to be holding. A leak at the surge chamber on the shore at Awatoto was identified and added to the scope, this has subsequently been repaired. 

With varying sea and ocean floor conditions considerable time and effort has been invested to excavate each leak site to enable repair preparations to be undertaken. On multiple occasions, upon returning to the worksite in the morning following a day of excavation, the divers have arrived to find their hard work of previous days undone by the ocean swells and currents overnight.

Following patient work preparing the work site and fabrication of the box clamp, NZDS were successful in completing an effective repair at the 630m leak site in late October with a post repair inspection on the 27th of October confirming no further leak. And therefore a successful repair.

Ongoing inspections and repair attempts on the 700m leak site progressively identified difficulties with the old fiberglass joint and uncovered previously unknown elements of past repair attempts, further complicating the repair. Consequently, repair concepts have had to be continually adapted to identify a workable solution. Several options and generations of repair solutions have been explored and considered. A solution of installing a concrete caisson is currently being pursued. This is not an elegant solution but is able to be installed and is anticipated to stop the leak. This approach has been approved by the Project team and external engineering contractor.

With fabrication drawings for this repair solution now completed fabrication of piles, clamps and frames has commenced. At this stage Council expect to have materials ready to resume repair works on the outfall repair commencing 30 November 2020.

It is worthy of mention, that during periods of investigation of repair options, NZDS have not been at sea. By agreement, NZDS have spent several weeks “off hire” with NCC and spent several weeks undertaking work for other clients here in the Hawkes Bay. This means that NCC will not be incurring costs from NZDS for this period.

Throughout the repair and investigation work briefly described above, the project team have updated HBRC regularly on the status successful repairs and of the fiberglass joint challenges. HBRC have indicated an understanding that the deadline of the 30 Nov will be unlikely to be met and have indicated willingness to discuss a further extension to the abatement notice deadline.

The sketch below (Figure 1) shows the concept for the caisson that is planned for install at the fiberglass joint.

Figure 1 – Proposed Repair for 700m leak site

 

3.3   Issues

A letter was received from Hawkes Bay Regional Council on Monday 20th November, confirming a further extension to the Abatement Notice deadline date.  The new date as per the letter is 01/01/21.

3.4   Significance and Engagement

The funding of $2m made available for this repair has been budgeted and consulted upon through the 2020/21 Annual Plan.

Further consultation with Mana Whenua partners is proposed.

3.5   Implications

Financial

$2m was made available for this repair in the 2020/21 Annual Plan.

Work undertaken to date, including design, fabrication and repair work, has cost approximately $750,000.

Further costs of $600,000 to $700,000 are anticipated.

Social & Policy

N/A

Risk

Report provides details on risks associated with the repair and mitigations in place.

3.6   Options

N/A

3.7   Development of Preferred Option

N/A

 

3.8   Attachments

a     Formal Notification of Wastewater Outfall Pipeline Leaks and Requirement of Urgent Underwater Repairs   


Audit and Risk Committee - 9 December 2020 - Attachments

 

Item 3

Attachments a

 

PDF Creator


 

PDF Creator


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 4

4.    Health and Safety Quarterly Report

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

1267852

Reporting Officer/s & Unit:

Justine Proudfoot, People & Capability Administrator

Sue Matkin, Manager People & Capability

 

4.1   Purpose of Report

The purpose of this paper is to provide the Audit and Risk Committee with an overview of Health and Safety activity for the period 1 July to 30 September 2020.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Receive the Health and Safety report for the period 1 July to 30 September 2020.

 

4.2   Background Summary

An analysis of Napier City Council (Council) health, safety and wellbeing data has been carried out for the period 1 July to 30 September 2020.

4.3   Health and Safety

1.   Leading Indicators

a.   Compliance Training

265 staff completed the following Health and Safety training during the quarter ending 30 September 2020.

Compliance Courses

Total

First Aid

72

Confined Space

10

Working at Heights

3

Heights Refresher

1

Grow Safe

13

Elevated Work Platform

1

Aggressive Customer training

31

Chainsaws

4

Chemical Spills

16

Fire Wardens

2

Supervisor Traffic Management

4

Traffic Controller

15

Site Safe Civil

23

Breathing Apparatus/Respirator

50

Site Safe SSSP

18

Lock out / Tag Out, Hot work, Fire Extinguisher

2

Total Staff Trained

265

 

Other training during the quarter included: Health and Safety Inductions for all new employees

·       Safe Operating Procedures (SOPs)

·       Safe Work Method Statements (SWMS) for extreme risks / hazards

b.   Six Weekly Health and Safety Committee Meetings

During the quarter there were eight Health and Safety Committee meetings held.

The safety meetings guest speaker was Santha Agas, 3 Waters Team Leader who talked through an incident with a contractor which involved the rollover of a digger near a trench, and the learnings from that incident. 

Danielle Tolchard, H&S Advisor, shared details of an incident in a dry well, which involved NCC workers and contractors.  The incident involved multiple PCBUs to consult, cooperate and coordinate future roles and responsibilities of all PCBUs.  Danielle talked through the incident and the improvements that have been implemented to ensure the process is more robust.  The recommendations and processes have been put in place are working well.

Attached are the two summary investigation reports.

c.   Audits and Inspections

Contractor audits completed during the quarter:

·      Atkins Construction – Kennedy Park x2

·      Acid NZ

·      Rocket Scaffold

·      Parklands

·      HB Rugby

·      Dinosaur Event

·      Turfrey Plumbing and Roofing

·      Fulton Hogan

·      2x NCC Halls

·      Nelson Park Nursery

·      Park Island

·    Kennedy Park Rose Gardens

·    Transfer Station

2.   Health & Safety Performance Indicators

a.   Incidents Reporting

Reported Incidents

Total for Quarter

Lost time injuries (LTIs):

1

Medically treated injuries (MTIs):

7

Total recordable injuries (MTIs + LTIs):

8

Incidents for Employees

29

Near miss/hit & property damage reporting

18

Incidents Involving Public using our facilities

21

Incidents  involving Contractors

3

During the quarter ended 30 September, there were:

·       29 reported events involving employees across all areas of Council

·       There were no serious injuries to the public/customers

·       One injury to a contractor which was notified to WorkSafe.  WorkSafe determined that no investigation was necessary.  The Contractor, JD Arborists, managed the situation perfectly and their employee was back at work within two days. 

·       Below are the mechanism of harm criteria graph.

 

 


 

3.   Health and Wellbeing

Health Monitoring

Worker health monitoring is undertaken by Loop Health & Safety.  Workers are monitored depending on the work they carry out.  Monitoring includes hearing, lung function, blood pressure, trace metals.

The health monitoring that took place during to the quarter to 30 September 2020 included

·    12 workers added to the WorkSafe NZ Asbestos register

·    Six pre-employment medicals

Wellbeing

Health, Safety and Wellbeing Week 7th to 11th September

·    Stress Workshop

·    Who Motivates the Motivator Workshop

·    Stay Safe training (in-house / working alone, man down system)

·    Respirator Management training workshops (all staff with respirators and compliance training)

·    Box Fit – Prostate Awareness

·    Top Team Big Day Out Event

Mental Health Awareness Week 21st to 27th September 2020.  Daily information out to all staff via email and yammer.

 

4.4   Attachments

Nil


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 5

5.    Risk Management Report December 2020

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

1267552

Reporting Officer/s & Unit:

Jane Klingender, Manager Business Excellence & Transformation

Dave Jordison, Risk and Assurance Lead

 

5.1   Purpose of Report

To provide the Audit and Risk Committee (Committee) with an update on risk management with reference to responsibilities listed in the Audit & Risk Charter; to report on high and extreme strategic risks; and to note emerging risks.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Receive the Risk Management Report December 2020

b.     Note the Risk Management work being undertaken

c.     Note the current high and extreme risks

d.     Note the emerging risks

 

 

5.2   Background Summary

In 2018 Napier City Council (NCC) developed a programme of work to develop and mature its enterprise risk capability. A risk maturity roadmap, strategy and policy were developed to guide this work and the risk register was established in the enterprise performance application called Sycle. There are three categories of risk that make up the risk register: strategic risks, operational risks, and project risks. In June 2020, an appointment was made to the newly created role of Risk & Assurance Lead and review commenced of risk documentation, and strategic and operational risks listed in Sycle.

The extract below is from the Audit & Risk Committee charter (agreed at the March 2020 Audit and Risk Committee meeting) on Risk Management.

cid:image001.png@01D67F81.99E0E5D0

The points below refer to these responsibilities.  

Risk Management Framework and Associated Procedures

Review of current risks has highlighted a number of areas for improvement which are consistent with streams identified within the risk maturity roadmap. Based on this review the Risk Management Strategy and Risk Policy will be revised and a full risk report will be presented to the Committee in the first 2021 meeting.   

A Regional Risk Group has been established, including representation from Napier City Council, Hawkes Bay Regional Council and Hastings District Council, to promote a consistent approach risk management including common terminology. This group will also collaborate on education and alignment on horizons related to Emergency Response, Business Continuity and Disaster Recovery. 

Strategic Risk Management Plans for Major Projects

Project risks are currently managed within individual projects. However, Sycle provides a collated view of all project risks. Planned improvements relating to the Chief Executive KPIs for delivery of the capital programme will include review of all project risks and support for a consistent and coordinated approach to managing project risks.

Risk Management Framework on its control environment and insurance arrangements

Refer to separate Insurance Update report brought to this meeting. 

Business Continuity Planning and Disaster Recovery

Business Continuity Plans (BCPs) were updated in March 2020 in response to the COVID-19 pandemic lead by Manager People & Capability. It has been noted that, prior to this, risks and BCPs were focused on events such as tsunami and earthquake, but not a pandemic. A working group has since been established to ensure all BCPs are current and accessible. Relevant risks, controls and treatments will be reviewed and updated.

The image below provides a summary of strategic risk SR5 in the risk register:

 

Processes and systems related to fraud

Refer to Audit and Risk Committee report "Internal Audit: Fraud Gap Analysis” taken to the 20 March 2020 meeting. The image below provides a summary of operational risk OR70 in the risk register:

Controls listed are:

·     Financial delegation limits

·     Internal audit program

·     Internal controls in place

·     Police checks on new employees

·     Quarterly budget monitoring

·     Segregation of duties

 

Probity and Fraud Awareness training was conducted on 17 November 2020 by the McHale Group. Below is an extract from the introduction:

People often think that auditors are responsible for detecting fraud. But they aren’t – international standards about auditing are clear that finding fraud isn’t the auditor’s responsibility. The job of preventing and detecting fraud rests with the senior leadership team and, if there is one, the governing body:

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. It is important that management, with the oversight of those charged with governance, place a strong emphasis on fraud prevention, which may reduce opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud because of the likelihood of detection and punishment [Auditing standard about fraud:  ISA (NZ) 240)]

The COVID-19 pandemic has created uncertain and difficult times and there are significant financial pressures both from a New Zealand and global perspective.  In New Zealand we are seeing a significant amount of money being pumped into the economy by the Government.   This does provide additional risk for entities to ensure this money is properly managed.  History tells us that sudden changes to the economy can result in a period of increased fraud e.g. 1987 share market crash, and the GFC resulted in increased levels of fraud reporting.

 

5.3   Issues

There are a substantial number of high and extreme strategic and operational risks with limited accountability. Regular reporting will be defined and activated to track progress against risk treatments. The Risk Management Strategy will be revised to better define accountability and training developed to embed understanding of roles and responsibilities in relation to risk management.   

 

5.4   Significance and Engagement

N/A

5.5   Implications

Financial

N/A

Social & Policy

The Risk Policy will be updated in line with risk review.

Risk

Strategic Risks

There are 5 strategic risks in the register. The image below shows the 4 strategic risks with a revised rating of high:

These risks were reported at the last meeting. The risks are outside the control of NCC and risk treatments listed against these risks are ongoing.

 

Operational Risks

There are currently 159 operational risks in the register. Out of those, 88 have a revised risk of high or extreme. Of note is operational risk OR24 (shown below). A separate update on the Outfall project will be presented at this meeting. 

 

Note OR24 8 controls overdue for review in addition to 4 additional treatments incomplete by due date

Acceptable risk appetite for ICT, Infrastructure & Assets is Moderate and the risk remains high.

 

Project Risks

Project risks have been excluded from reporting.

Emerging Risks

Initial funding from the Three Waters Reform Programme has been approved and the final Request for Information (RFI) is due on 1 February 2021. There is a risk that delivery of Three Waters initiatives could be delayed due to:

·     Large volume of Government spend on infrastructure across all of New Zealand as stimulus packages, causing shortage of suitable service providers available at the required time

·     Prolonged restrictions due to changing COVID alert levels

·     Materials and plant sourced from overseas are not available due to COVID restrictions

Initial controls include a regional approach to planning, which has commenced. Further controls and treatments to be defined.

5.6   Options

a.     N/A

5.7   Development of Preferred Option

N/A

 

5.8   Attachments

Nil


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 6

6.    Sensitive Expenditure - Mayor and Chief Executive

Type of Report:

Procedural

Legal Reference:

N/A

Document ID:

966765

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

6.1   Purpose of Report

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

 

 

Officer’s Recommendation

The Audit and Risk Committee:

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

 

 

6.2   Background Summary

The Sensitive Expenditure Policy approved by the Senior Leadership Team on 17 September 2019 requires a report of all sensitive expenditure by the Chief Executive and by the Mayor to Audit and Risk Committee meetings (clauses 6.3 and 6.4). The policy also states that the expenditure items will be reviewed by the Chairperson or the Deputy Chairperson of the Audit and Risk Committee for compliance with this policy.

6.3   Issues

No issues.

6.4   Significance and Engagement

N/A

6.5   Implications

Financial

N/A

Social & Policy

N/A

Risk

N/A

 

6.6   Attachments

a     Sensitive expenditure report - Chief Executive

b     Sensitive expenditure report - Mayor

c     Sensitive Expenditure Policy   


Audit and Risk Committee - 9 December 2020 - Attachments

 

Item 6

Attachments a

 

PDF Creator


Audit and Risk Committee - 9 December 2020 - Attachments

 

Item 6

Attachments b

 

PDF Creator


Audit and Risk Committee - 9 December 2020 - Attachments

 

Item 6

Attachments c

 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


 

PDF Creator


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 7

7.    External Accountability: Investment and Debt Report

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

966770

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 31 October 2020.

 

Officer’s Recommendation

The Audit and Risk Committee:

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

 

 

7.2   Background Summary

The snapshot report on Napier City Council’s Investment and Debt as at 31 October 2020 is shown at Attachment A.

 

7.3   Attachments

a     Investment and debt report as at 31 October 2020   


Audit and Risk Committee - 9 December 2020 - Attachments

 

Item 7

Attachments a

 

PDF Creator


Audit and Risk Committee - 09 December 2020 - Open Agenda                                                                                                               Item 8

8.    Proposed Audit and Risk Committee 2021 Meeting Calendar

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

966732

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

8.1   Purpose of Report

To consider the proposed timetable of meetings for the Audit and Risk Committee in 2021, as detailed below.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Receive the proposed timetable of meetings for the Audit and Risk Committee for 2021.

 

 

8.2   Background Summary

The following table sets out the meetings held during 2020 together with the proposed schedule for meetings for 2021:

 

        Proposed Audit and Risk Committee meetings timetable 2021                               

2020

Content

2021

Content

20 March 2020

Audit and Risk Charter review

Health & Safety report

Insurance arrangements

Internal audits (fraud gap analysis, payroll policy & procedures)

Investment & debt report

Annual Plan 2019/20 underlying documents

Long Term Plan process update

PX items

26 March 2021

Audit NZ management report

Health & Safety report

Investment & debt report

Risk management report

Draft LTP consultation document

Internal audit reports

 

 

12 June 2020

 

 

Wastewater outfall report

Water safety plans and risks

Health & Safety report

Draft Annual Plan 2020/21

Sensitive expenditure report

Investment & debt report

Risk management report

PX items

 

 

25 June 2021

 

Long Term Plan 2021-31

Health & Safety report

Investment & debt report

Risk management report

18 September 2020

Health & Safety report

Health & Safety charter & work plan

Insurance update

Risk management report

Three waters reform programme – delivery plan

Investment & debt report

Sensitive expenditure report

Internal audit programme

Annual tax update

PX items

24 September 2021

Health & Safety report

Investment & debt report

Risk management report

Draft Annual Report 2020/21

Internal audit programme

9 December 2020

Proposed Audit & Risk meeting calendar

Sensitive expenditure report

Investment & debt report

Wastewater outfall repair update

Flood event update

Risk management report

Insurance presentation

Health & Safety report

PX item

10 December 2021

Health & Safety report

Investment & debt report

Risk management report

Audit management report

Proposed Audit & Risk meeting calendar

 

 

8.3   Issues

No issues.

8.4   Significance and Engagement

N/A

8.5   Implications

Financial

N/A

Social & Policy

N/A

Risk

N/A

 

8.6   Attachments

Nil      


Audit and Risk Committee - 09 December 2020 - Open Agenda

PUBLIC EXCLUDED ITEMS

 

That the public be excluded from the following parts of the proceedings of this meeting, namely:

AGENDA ITEMS

1.         Review of Audit and Risk Committee

 

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.

 

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

 

1.  Review of Audit and Risk Committee

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.

 

 


Audit and Risk Committee - 09 December 2020 - Open Agenda

 

 

Audit and Risk Committee

Open Minutes

 

Meeting Date:

Friday 18 September 2020

Time:

1.02pm-1.53pm

Venue

Large Exhibition Hall

Napier War Memorial Centre

Marine Parade

Napier

 

 

Present

John Palairet (In the Chair), Mayor Kirsten Wise, David Pearson, Councillor Nigel Simpson [from 1.04pm] and Councillor Graeme Taylor

In Attendance

Karen Young – Audit New Zealand

Interim Chief Executive [from 1.08pm], Director Corporate Services, Director Infrastructure Services, Manager People and Capability, Chief Financial Officer, Manager Property, Manager Business Excellence and Transformation, Risk and Assurance Lead, Accounting Manager

Administration

Governance Team

 

 


Apologies

Councillor Simpson’s apology for lateness was noted.

Conflicts of interest

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the Chairperson

Nil

Announcements by the management

Nil

Confirmation of minutes

D Pearson / Mayor Wise

That the Minutes of the meeting held on 12 June 2020 were taken as a true and accurate record of the meeting.

 

Carried

 

 

 


Agenda Items

 

1.    Health and Safety Report

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

954020

Reporting Officer/s & Unit:

Sue Matkin, Manager People & Capability

 

1.1   Purpose of Report

The purpose of this paper is to provide the Audit & Risk Committee with an overview of Health & Safety activity for the year ended 30 June 2020.

 

At the Meeting

The Manager People and Capability spoke to the report, providing a brief overview and noting that the activity in this report was undertaken in the last financial year.

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

·         Following the disbanding of the ACC accreditation system, presumably due to costs, Council is now investigating the option of an external auditor in order to meet their monitoring and checking requirements.

·         The PCBU must meet all their duties and obligations in accordance with the legislation and the ‘Officer’ is required to exercise due diligence in ensuring this occurs. This responsibility ultimately lies with the Chief Executive, as Council’s ‘Officer’, and those with significant decision making powers across the organisation (the Senior Leadership Team). From there, the risk is spread across the organisation as a whole.

·         Current legislation requires Council to manage asbestos exposure for all staff, even where the exposure occurred prior to being employed by Council.

·         The increasing number of injuries is likely a result of Council’s improved reporting in this area. It is important to understand how injuries occurred in order to prevent them from recurring. Full investigations are completed in relation to some incidents, e.g. the rock fall at Bluff Hill.

 

ACTION:  In order to identify whether any gaps exist, Council officers agreed to include the following in the Health and Safety Report moving forward:

·         The number of positions identified within Council that require health and safety training to be completed, compared to the numbers where training was completed.

·         The number of positions identified within Council that require health monitoring, compared to the number of workers screened.

 

 

Committee's recommendation

Councillor Simpson / D Pearson

The Audit and Risk Committee:

a.     Receive the Health and Safety report.

 

Carried

 

 


 

2.    NCC H&S Charter and Due Diligence Work Plan

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

961197

Reporting Officer/s & Unit:

Sue Matkin, Manager People & Capability

Michelle Warren, Health and Safety Lead

 

2.1   Purpose of Report

The purpose of this paper is to inform the Audit & Risk Committee about the agreed pathway of health and safety leadership at Napier City Council, in relation to Duties of Officers, under the Health and Safety at Work Act 2015 (HSWA).  The plan also includes those who have significant influence over the whole business, i.e. the Senior Leadership Team.

 

At the Meeting

The Manager People and Capability spoke to the report and provided a brief overview. It was noted that officers have developed a comprehensive due diligence plan and the Health and Safety team are now considering how this can be rolled out and implemented across the organisation.

Committee's recommendation

Councillor Taylor / D Pearson

The Audit and Risk Committee:

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

 

Carried

 

 


 

3.    Insurance Update

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

961847

Reporting Officer/s & Unit:

Bryan Faulknor, Manager Property

 

3.1   Purpose of Report

To update the committee on the finalisation of the procurement of Insurance Brokerage Services and renewal of insurance coverage.

 

At the Meeting

The Manager Property spoke to the report noting the change in broker to Aon, and that the existing Policy had been rolled over in order to align with the other Councils in the collective. Council officers intend to arrange an insurable risk profile workshop with the Audit and Risk Committee and Aon as soon as possible.

Officers confirmed that loss modelling will be completed for Council, which will provide a more detailed analysis of Council’s underground infrastructure and will be conducted by Aon and Tonkin Taylor. This will help officers to ascertain what Council should be insuring moving forward, and will also assist with the three waters resilience planning. It was noted that efforts were made to align this work across the region, however, the timing could not be agreed across the Councils.

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

·         It was noted that cyber-crime insurance is expensive and should be considered as part of the review of Council’s cyber systems. These systems need to be identified and assessed before insurance can be discussed.

 

·         The main policies do not have a shared limit with the other Councils in the collective, as these are insured on a policy-by-policy basis between each Council and the broker.

 

ACTION:  Council officers to consider and quantify the level of crime insurance in order to ensure the level of indemnity is adequate. Premium quotes to be requested for different levels of crime insurance.

Committee's recommendation

D Pearson / Councillor Simpson

The Audit and Risk Committee:

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

 

Carried

 

4.    Risk Management Report September 2020

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

961668

Reporting Officer/s & Unit:

Jane Klingender, Manager Business Excellence & Transformation

Dave Jordison, Risk and Assurance Lead

 

4.1   Purpose of Report

To provide the Audit and Risk Committee (Committee) with an update on risk management with reference to responsibilities listed in the Audit & Risk Charter; to report on high and extreme strategic risks; and to note emerging risks.

 

At the Meeting

The Risk and Assurance Lead spoke to the report noting that Sycle is a capable system and he will work with activity managers in order to update the risks over the next couple of months. This work has been aligned with the Long Term Plan development to ensure that managers are aware of and understand the risks pertinent to their business unit. It was also noted that currently, Covid-19 risks are acknowledged as strategic risks.

The Interim Chief Executive advised that Council needs to consider the overarching risk and determine the degree of risk that Council is prepared to accept. Council officers noted that the Municipal Theatre had been identified as an emerging risk, specifically, access for workers and contractors working above the stage. They are currently working at a height of seven metres trying to service lighting etc. Estimates have been requested and, at this stage, it appears that the installation of a catwalk will be the best option.

In response to questions from the Committee, it was noted that no project risks are included in the report as these are not currently included in the data. It was previously agreed that project risks should be managed within the design and projects team at a project level. When updating the data in Sycle, operational risks will be considered first with project risks at an organisational level to follow.

 

Committee's recommendation

Councillors Taylor / Simpson

The Audit and Risk Committee:

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

Carried

5.    Three Waters Reform Programme - Delivery Plan

Type of Report:

Contractual

Legal Reference:

N/A

Document ID:

961277

Reporting Officer/s & Unit:

Adele Henderson, Director Corporate Services

Jon Kingsford, Director Infrastructure Services

 

5.1   Purpose of Report

Council has signed the Memorandum of Understanding for the government’s 3 Waters Reform programme.  It is now required to complete the Funding agreement and Delivery Plan by 30 September 2020.

 

At the Meeting

The Director Infrastructure Services spoke to the report noting that of the $50Million allocated to Hawke’s Bay under the government’s Three Waters Reform programme, $12.5Million has been allocated to Napier City Council. A brief overview of the Funding Agreement and Delivery plan was provided, both of which were developed by Council officers following Council’s signing of the Memorandum of Understanding. Committee members were provided with draft copies of the documents previously provided to Council at the Extraordinary Meeting of Council held on 15 September 2020, and advised that final these will go back to Council before 30 September 2020 once the Delivery Plan has been finalised.

It was noted that the Delivery Plan details a $17Million work programme, and due to the short period of time required to implement the programme of work, resourcing had been identified as a risk. The risk being that Council may not be able to complete the work in the timeframe required as all Councils will be recruiting for the same skills and expertise at the same time. Council may need to adjust the work programme if this occurs and although Council’s preference is to employ staff on a fixed term basis, contractors and consultants may need to be considered.

The Director Infrastructure Services advised the Committee that a lot of work has gone into developing the Delivery Plan, interrupting other programmes of work, and that actual delivery of the work programme is again going to greatly impact staff workloads.

 

Officer’s Recommendation

The Audit and Risk Committee:

a.     Note the progress with Three Waters Reform Programme.

b.     Review the DIA Funding Agreement and Delivery Plan and provide any feedback to Council.

 

 

 

SUBSTITUTE MOTION

Committee's recommendation

D Pearson / Councillor Simpson

The Audit and Risk Committee:

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.

 

Carried

 

 


 

6.    External Accountability: Investment and Debt Report

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

954018

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

6.1   Purpose of Report

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

 

At the Meeting

The Chief Financial Officer spoke to the report, providing a brief overview and noting that as at 31 August 2020, Council had $54.3Million invested at an average interest rate of 2.14%, and the weighted average investment rate for the last 12 months to date is 2.53%.

 

Committee's recommendation

Councillor Taylor / D Pearson

The Audit and Risk Committee:

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

 

Carried

 

 


 

7.    Sensitive Expenditure - Mayor and Chief Executive

Type of Report:

Procedural

Legal Reference:

N/A

Document ID:

954021

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

7.1   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

The Chief Financial Officer spoke to report noting that expenditure items under the Mayor and Chief Executive, in relation to air travel for the Local Government New Zealand meeting, are now in credit with the airline as the meeting was attended via Zoom due to Covid-19 alert level restrictions. It was also noted that two transactions relating to costs in November have pulled through following a late credit card statement reconciliation.

Committee's recommendation

D Pearson / Councillor Simpson

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.

 

Carried

 

 


 

8.    Internal Audit - Proposed Programme for 2020/21

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

954027

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

8.1   Purpose of Report

To table to the Committee the internal audit programme for 2020/21 from Crowe.  Recommendations, feedback and any other review priorities the Committee deems relevant, is sought

 

At the Meeting

The Chief Financial Officer spoke to report, noting that the report sets out the proposed internal audit programme for the 2020/21 year. The data analytics audit has been brought forward as this is able to be undertaken offsite by the internal audit providers.

 

Committee's recommendation

Councillor Taylor / D Pearson

The Audit and Risk Committee:

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

 

Carried

 

 


 

9.    Legislative Compliance: Annual Tax Update to 30 June 2020

Type of Report:

Operational

Legal Reference:

Local Government Act 2002

Document ID:

962276

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

9.1   Purpose of Report

To provide the Audit and Risk Committee with the annual tax update on progress made during the period up to 30 June 2020.

 

At the Meeting

The Chief Financial Officer spoke to the report, noting that the annual update is provided by Council’s tax advisors PwC and includes commentary on current tax matters and a tax update.

Committee members agreed that they were comfortable with three yearly checks on this work programme.

Committee's recommendation

Mayor Wise / D Pearson

The Audit and Risk Committee:

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

 

Carried

   

 


PUBLIC EXCLUDED ITEMS

 

Councillors Simpson / Taylor

That the public be excluded from the following parts of the proceedings of this meeting, namely:

1.         External Accountability: Draft Annual Report 2019/20

2.         Resource Consent

 

Carried

 

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.

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

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.

 

The meeting moved into committee at 1.53pm.

 

 

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

 

 

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

 

 

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