Minutes of Prosperous Napier Committee - Thursday, 10 April 2025

Prosperous Napier Committee

Open Minutes

Meeting Date:	Thursday 10 April 2025
Time:	9.30am – 10.31am
Venue	Large Exhibition Hall War Memorial Centre Marine Parade Napier
	Livestreamed via Council’s Facebook page

Present	Chair: Councillor Crown Members: Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Greig, Mawson, McGrath, Price, Simpson, Tareha and Taylor (Deputy Chair) Ngā Mānukanuka o te Iwi representatives – Evelyn Ratima and Kirk Leonard
In Attendance	Chief Executive (Louise Miller) Deputy Chief Executive / Acting Executive Director City Services (Jessica Ellerm) Executive Director Community Services (Thunes Cloete) Manager Communications and Marketing (Julia Stevens) Acting Chief Financial Officer (Talia Foster) Procurement Manager (Sharon O’Toole)
Also in Attendance	Rochelle Ham (Chief Financial Officer) and Nick Flack (Chief Executive) Hawke’s Bay Airport Limited
Administration	Governance Advisors (Carolyn Hunt and Jemma McDade)

Prosperous Napier Committee - 10 April 2025 - Open Minutes

Order of Business

Karakia

The meeting opened with a Council karakia.

Apologies

Nil

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 Chrystal / Taylor

That the Minutes of the Prosperous Napier Committee meeting held on 26 February 2025 were taken as a true and accurate record of the meeting.

Carried

Prosperous Napier Committee - 10 April 2025 - Open Minutes

Agenda Items

1. Hawke's Bay Airport Limited - Draft Statement of Intent

Type of Report:	Procedural
Legal Reference:	N/A
Document ID:	1841296
Reporting Officer/s & Unit:	Caroline Thomson, Chief Financial Officer / Acting Executive Director Corporate Services

1.1 Purpose of Report

To present the Hawke’s Bay Airport Limited Draft Statement of Intent for the 2025/26 year.

At the meeting

The Chair, Councillor Crown welcomed representatives from the Hawke’s Bay Airport, Chief Executive (Nick Flack), and the Chief Financial Officer (Rochelle Ham) to the meeting.

A powerpoint presentation (Doc Id 1845172) was displayed providing an overview of the highlights, passenger numbers and financial performance for the six months to December 2024.

Mr Flack advised that the airport did not support the Ahuriri Regional Park project in its current form given the significant amount of wetlands that will be created at the end of an operating runway. The current bird strike incident rate is 25 per 10,000 movements, with the New Zealand average of 4. If the development of the wetlands continue there would be increased risk of bird strike at Napier Airport. In the event that this happens it is likely that Air New Zealand will reduce capacity which would leave the Hawke’s Bay without connection to regions in New Zealand.

In response to questions the following was clarified:

· Mana Ahuriri has always been a potential shareholder of the airport with an option to take up treasury shares at an agreed value. Mana Ahurriri are currently deciding on whether they wish to do this or not.

· Runway extensions have been signalled in masterplans for jet capacity, however it is clear that the jet capacity would be via Auckland. Mr Flack did not believe that the region had the capability to sustain an international connection and as an example spoke of Dunedin who have an international connection with Jetstar, costing the council millions of dollars to underwrite each year.

· In regard to servicing of debt with reduced numbers of passengers the capex will be constantly under review with half of that revenue being mandatory for compliance issues. The remaining revenue would be commercially driven towards payback.

· The airport has collected a lot of demographic data to monitor and understand what is impacting on the airport and are engaging actively with Air New Zealand. However, despite the decreasing passenger numbers Air New Zealand do not have the capacity to increase as there are less planes available.

· Collaboration continues with key stakeholders to ensure strong tourism and events programme promoting travel through Napier Airport.

Committee resolution

Councillors Crown / Mawson

The Prosperous Napier Committee:

a. Receive the Hawke’s Bay Airport Limited Draft Statement of Intent for the 2025/26 (Doc Id 1841285) year and provide comment and feedback from Napier City Council.

Carried

Attachments

1 Hawke's Bay Airport presentation (Doc Id 1845172)

2. Progress Report: Procurement and Contract Management Improvements

Type of Report:	Operational and Procedural
Legal Reference:	N/A
Document ID:	1841498
Reporting Officer/s & Unit:	Sharon O'Toole, Procurement Manager

2.1 Purpose of Report

The purpose of this report is to provide an update on the various improvement initiatives underway to help Council better use procurement and contract management as strategic tools to deliver the capital programme, improve the management of Council assets, and implement the recommendations in the recent Internal Audit Report: Contract Management Report completed by Crowe April 2024.

At the meeting

The Procurement Manager, Ms O’Toole presented the report providing a brief summary.

In response to questions the following was confirmed:

· Ms O’Toole confirmed that the conflict-of-interest procurement tool was Council developed and they were looking at a SharePoint solution to track, monitor and sign forms online.

· Often from a procurement perspective, training required in different directorates is different and keeping the training sessions separate becomes more targeted and effective on the information provided. Officers were confident that the timing and pace of the programme were optimal.

Committee resolution

Councillors Taylor / Simpson

The Prosperous Napier Committee:

a. Receive the Procurement and Contract Management progress report.

Carried

Minor matters

There were no minor matter matters to discuss.

The meeting closed at 10.31am

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

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

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