Audit and Risk
Committee - 09 December 2020 - Open Minutes
Apologies
D Pearson / Councillor Taylor
That the
apology from Mayor Wise be accepted.
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An apology from Director Corporate Services 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
Councillors Taylor / Simpson
That the
Minutes of the meeting held on 18 September 2020 were taken as a true and
accurate record of the meeting.
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Audit and Risk Committee - 09
December 2020 - Open Minutes
Agenda
Items
1. Insurance
Presentation - Aon Insurance
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Type of Report:
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Information
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Legal Reference:
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N/A
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Document ID:
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1267774
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Reporting Officer/s &
Unit:
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Adele Henderson, Director
Corporate Services
Dave Jordison, Risk and
Assurance Lead
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1.1 Purpose
of Report
To receive the update from Aon
Insurance.
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At the Meeting
Mr Twemlow, National Manager for Aon New Zealand
displayed a powerpoint presentation (Attachment A) providing an
overview of Insurance Market and Trends; Local Market Conditions; Cost of Natural
Disasters; Shared Procurement; Insurance Strategy and Emerging Risks.
It was noted that it would be prudent to increase the
insurance excess from $10,000 to $100,000 thereby reducing premiums.
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Committee's recommendation
The Audit and Risk Committee:
i. Receive
the verbal presentation from Aon Insurance
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2. Monday, 9 November
2020 - Flood Event Report and Update
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Type of Report:
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Information
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Legal Reference:
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N/A
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Document ID:
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1266574
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Reporting Officer/s &
Unit:
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Adele Henderson, Director
Corporate Services
Antoinette Campbell, Director
Community Services
Richard Munneke, Director
City Strategy
Jon Kingsford, Director
Infrastructure Services
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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 9
November 2020.
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At the Meeting
The Chief Financial Officer, Ms Thomson advised that 27
applications for rates relief had been received following the flood event of
9 November 2020. There were a further 16 applications pending
Builiding Officers checking to see if they were eligible.
The Director Infrastructure Services, Mr Kingsford updated
the Committee on the flood event of 9 November 2020. Currently there
were 141 people in units at the Kennedy Park Resort who had been displaced
for a longer term. They were the ones that Council
were aware of as there would be a number of flood affected in particular
private residences that would not have necessarily been reported through to
Council.
Large
parts of Napier's water system were only built to deal with a
one-in-five-year rain event - this year's was a one-in-250-year deluge.
Napier
had not been able to upgrade all of its systems since new regulations came
into force in the 1990s.
Napier
experienced an event far beyond what Council’s network had the capacity
to deal with so there was no way the infrastructure would have been able to
cope with a one-in-250 year event.
The
Centennial Hall at McLean Park would require new flooring and there was other
work that could be undertaken at the same time however, currently there
was no funding allocated.
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Discussion and feedback
included the following points:
·
There would be learnings from this event and improvement.
·
1 in 50 or 1 in 250 terminology tries to reflect technical
probability. 1in 50 represented a 2% chance that an event could happen
every single year.
·
1 in 250 represented a 4% likelihood of an event occurring
every single year.
·
The standard was adopted in the late 1990’s and to large
extent of Napier’s reticulated stormwater network was designed to
provide capacity to manage a 1 in 5 year rainfall event or less. In this case
no stormwater network in New Zealand was designed to prevent a flooding event
experience like Napier on 9 November 2020.
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Committee's recommendation
The Audit and Risk Committee:
a. Receive
the update on the Napier flood event/Civil Defence Emergency, 9 November
2020.
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3. Wastewater Outfall
Repair Update
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Type of Report:
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Operational
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Legal Reference:
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N/A
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Document ID:
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1266573
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Reporting Officer/s &
Unit:
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Drew Brown, Senior Project
Manager
Adele Henderson, Director
Corporate Services
Jon Kingsford, Director
Infrastructure Services
Dave Jordison, Risk and
Assurance Lead
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3.1 Purpose
of Report
To provide the Audit and Risk
committee an update on the Wastewater Outfall repair project.
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At the Meeting
Director Infrastructure Services, Mr Kingsford updated the
meeting on the progress of the repairs to the outfall. It was envisaged
that the repairs would be completed by the end of the year. Discussion
with the Hawke’s Bay Regional Council would be held in regard to the
deadlines for completion of the work.
Mr Kingsford advised that the 700m leak was still leaking
due to previous unknown elements of past repair attempts. This has
meant repair concepts have continually had to be adapted to find a
solution. The pipe will be grouted to seal off the pipe. Divers were
back on site now and preparing the site again for this repair while final
fabrication was being undertaken. Communication with the
Hawke’s Bay Regional Council has been undertaken throughout the process.
Work undertaken to date was $750,000 and it was expected
based on timeframes that this would be doubled within budget. It cost $36,000
per day for the boat to go out and work was dependant on condition.
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Committee's recommendation
The Audit and Risk Committee:
a. Receive
the update on the Wastewater Outfall repair project.
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4. Health and Safety
Quarterly Report
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Type of Report:
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Operational
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Legal Reference:
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N/A
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Document ID:
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1267852
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Reporting Officer/s & Unit:
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Justine Proudfoot, People
& Capability Administrator
Sue Matkin, Manager People
& Capability
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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.
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At the Meeting
The Manager People and Capability, Ms Matkin spoke to
the report, highlighting the following:
·
One lost time injury when city cleaner broke ankle on Marine Parade
·
One suspected back strain at Kennedy Park.
·
There were 29 incidents involving employees across Council.
·
There was one injury to a contractor which only necessitated
two days off work.
·
12 workers during quarter had been added to the asbestos register
which was attributed to change of regulations.
It was noted during the meeting that vinyl t being
removed from buildings due to the flood event on 9 November 2020 may have asbestos
issues. This could be an issue with Council owned buildings and Ms
Matkin undertook to check Council properties and whether they had asbestos.
Ms Matkin also advised that staff that had been
impacted by the flood and displaced to Kennedy Park were being given support
where needed.
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Committee's recommendation
That Council:
a. Receive
the Health and Safety report as at 31 December 2018
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5. Risk Management
Report December 2020
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Type of Report:
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Operational
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Legal Reference:
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N/A
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Document ID:
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1267552
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Reporting Officer/s &
Unit:
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Jane Klingender, Manager
Business Excellence & Transformation
Dave Jordison, Risk and
Assurance Lead
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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.
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At the Meeting
Manager Business Excellence and Transformation, Ms
Klingender spoke to the report advising that a review of current risks had
highlighted a number of areas for improvement.
A Regional Risk Group had 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.
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Committee'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
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6. Sensitive
Expenditure - Mayor and Chief Executive
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Type of Report:
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Procedural
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Legal Reference:
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N/A
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Document ID:
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966765
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Reporting Officer/s &
Unit:
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Caroline Thomson, Chief
Financial Officer
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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.
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At the Meeting
There was no discussion at the meeting.
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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.
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7. External
Accountability: Investment and Debt Report
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Type of Report:
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Operational
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Legal Reference:
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N/A
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Document ID:
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966770
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Reporting Officer/s &
Unit:
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Caroline Thomson, Chief
Financial Officer
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7.1 Purpose
of Report
To consider the snapshot report
on Napier City Council’s Investment and Debt as at 31 October 2020.
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Committee'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.
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8. Proposed Audit and
Risk Committee 2021 Meeting Calendar
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Type of Report:
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Operational
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Legal Reference:
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N/A
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Document ID:
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966732
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Reporting Officer/s &
Unit:
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Caroline Thomson, Chief
Financial Officer
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8.1 Purpose
of Report
To consider the proposed
timetable of meetings for the Audit and Risk Committee in 2021, as detailed
below.
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At the Meeting
There was no discussion at the meeting.
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Committee's recommendation
The Audit and Risk Committee:
a. Receive
the proposed timetable of meetings for the Audit and Risk Committee for 2021.
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Audit and Risk Committee - 09
December 2020 - Open Minutes
PUBLIC EXCLUDED
ITEMS
D Pearson / Councillor Taylor
That the public be excluded
from the following parts of the proceedings of this meeting, namely:
1. Review
of Audit and Risk Committee
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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:
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General subject of each
matter to be considered.
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Reason for passing this
resolution in relation to each matter.
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Ground(s) under section
48(1) to the passing of this resolution.
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1. Review of Audit and
Risk Committee
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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
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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.
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The
meeting moved to Public Excluded Session at 2.10pm
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Approved and adopted as a true and accurate record of the
meeting.
Chairperson .............................................................................................................................
Date of approval ......................................................................................................................
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ATTACHMENT A – Aon Insurance Presentation
