Agenda of Finance and Planning Committee Meeting

Finance and Planning Committee Meeting Agenda 14 February 2019

MINUTES OF Central HAwkes Bay District Council
Finance and Planning Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 29 November 2018 AT at the conclusion of the Public Forum which commences at 9.00am

PRESENT:

Cr Ian Sharp (Deputy Mayor)

Cr Tim Aitken

Cr Kelly Annand

Cr Shelley Burne-Field

Cr Tim Chote

Cr Gerard Minehan

Cr David Tennent

IN ATTENDANCE:

Dr Roger Maaka (Maori Consultative Representative)

Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Monique Davidson (CEO)

Bronda Smith (Group Manager, Corporate Support and Services)

Doug Tate (Group Manager, Customer and Community Partnerships)

Nicola Bousfield (People and Capability Manager)

Lisa Harrison (Organisation Transformation Lead)

Leigh Collecutt (Governance and Support Officer)

Pat Gallagher (Chairman CHB Community Trust)

Di Petersen (Trustee CHB Community Trust)

Pip Burne (Trustee CHB Community Trust)

Michele Hayes (Aqua Management on behalf of CHB Community Trust)

Annie Dundas (Hawke’s Bay Tourism)

Anna Baldwin (Hawke’s Bay Tourism)

1 Apologies

Moved: Cr Gerard Minehan

Seconded: Cr David Tennent

That apologies from Mayor Alex Walker and Cr Brent Muggeridge be accepted.

CARRIED

2 Declarations of Conflicts of Interest

None

3 Standing Orders

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Tim Aitken

THAT the following standing orders are suspended for the duration of the meeting:

· 20.2 Time limits on speakers

· 20.5 Members may speak only once

· 20.6 Limits on number of speakers

· THAT 21.4 Option C under section 21 General procedures for speaking and moving motions be used for the meeting.

Carried

4 Confirmation of Minutes

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr David Tennent

That the minutes of the Finance and Planning Committee Meeting held on 18 October 2018 as circulated, be confirmed as true and correct.

Carried

5 Local Government Act Compliance – Planning, Decision Making and Accountability

Council is required to make decisions in accordance with the requirements of Part 6 Subpart 1 of the Local Government Act 2002.

Committee Resolution

Moved: Cr Tim Chote

Seconded: Cr Kelly Annand

THAT Council has read the reports associated with items 6.1 to 7.1 and considers in its discretion under Section 79(1)(a) that sufficient consultation has taken place in addition to the Councillors knowledge of the items to meet the requirements of Section 82(3) in such a manner that it is appropriate for decisions to be made during the course of this meeting.

Carried

6 Report Section

6.1 Finance and Planning Committee Work Programme - Progress Report

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

Committee Resolution

Moved: Cr Shelley Burne-Field

Seconded: Cr Tim Aitken

Recommendation

That, having considered all matters raised in the report, the report be noted.

Carried

6.2 Draft District Plan - Options for Next Phases

PURPOSE

The purpose of this report is to seek from the Council consideration and approval of the date of release of the Draft District Plan for public consultation.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Tim Aitken

That having considered all matters raised in the report:

a) That the Council adopt option B and release the draft District Plan for public consultation in May/June 2019.

Carried

· Cr Tennent sought clarification from officers about when stakeholders would be notified.

· Cr Aitken raised the point that although timing of the election has been highlighted as a risk for the district plan, it may be a good opportunity for what has been developed to be scrutinised further by new elected members.

· Cr Sharp agreed that election and consultation timing might be positive, as by the time of the election, there will be a clear direction from the public about what issues are of importance to people.

· Cr Burne-Field sought clarification on what the additional $110,000 for Option B would be spent on. It was confirmed that this cost would predominantly be spent on ensuring the community is consulted with effectively.

6.3 Regional Three Waters Review Terms of Reference and Scope

PURPOSE

The matter for consideration by the Council is to provide its support and endorsement to the Regional three water review.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Gerard Minehan

That having considered all matters raised in the report, the Finance and Planning Committee recommend to Council:

a) That the Council provide its support for the project to deliver a review in association with the other Hawkes Bay Council’s to address how we can improve the management of drinking water, storm water and wastewater (“Three Waters”) to better support our community’s prosperity, health, safety and environment.

b) That Council note that the cost of the review is within the Chief Executive delegated authority and shall be apportioned across the Hawkes Bay Councils are as follows: 35% NCC, 35% HDC, 15% HBRC, 7.5% WDC, 7.5% CHBDC.

Carried

· Cr Burne-Field sought clarification on how this review might impact current projects. Confirmation was received that it would not impact current projects and that the mandate was to continue with the agreed programme of work.

· Cr Aitken indicated his support for the review, provided that the review does not lose sight of Central Hawke’s Bay specific issues.

· Cr Tennent raised the view that there was potential that this would trigger the debate about amalgamation for Hawke’s Bay. Cr Tennent also indicated that this review would be a practical way for councils to solve water issues across the region.

6.4 Quarterly Financial Reporting for September 2018

PURPOSE

Provide Council with a summary of Council's first quarter financial performance for the 2018/19 financial year.

Committee Resolution

Moved: Cr Tim Aitken

Seconded: Cr Tim Chote

That, having considered all matters raised in the report, the report on Council's first quarter financial performance for the 2018/19 financial year be noted.

Carried

· Cr Tennent asked whether the capping at the landfill would wait until the demolition work was finished at the hosiptal site. Mrs Davidson confirmed that she had met with the developers and understood that most of what would be going to the landfill was already there meaning that there would not be a big impact.

· Cr Sharp commended staff on the quality of reporting.

6.5 Central Hawke's Bay District Community Trust - Annual Report

PURPOSE

To present to Council the Central Hawke’s Bay Community Trust Annual Report.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Shelley Burne-Field

That, having considered all matters raised in the report, the report be noted.

Carried

· Pat Gallagher, Michele Hayes, Pip Burne and Di Petersen were in attendance for this item.

· Cr Minehan sought clarification around whether the turf would be used for teams coming from elsewhere in Hawke’s Bay. It was confirmed that in some cases this would be the case.

· Cr Tennent asked whether the funding provided was sufficient to cover the needs of the facility. It was confirmed that although it has covered most of what was initially required, that there are still ongoing operational costs to manage. Aqua Management are overseeing the management of these running costs.

· Cr Sharp sought confirmation about whether members of the public could make contact if they wished to use the facility. It was confirmed that it did not need to be an organised sports team and that everyone was welcome to use it.

6.6 Central Hawke's Bay Promotions Annual Report - 2017/18

PURPOSE

To present to Council the Annual Report for Central Hawke’s Bay Promotions.

Committee Resolution

Moved: Cr Tim Chote

Seconded: Cr Gerard Minehan

That, having considered all matters raised in the report, the report be noted.

Carried

6.7 Hawke's Bay Tourism Annual Report - 2017/18

PURPOSE

The purpose of this report is to present the Annual Report of Hawke’s Bay Tourism for the 207/18 year.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Shelley Burne-Field

That, having considered all matters raised in the report, the report be noted.

Carried

Annie Dundas and Anna Baldwin were in attendance for this item.

· Cr Sharp sought clarification about how businesses could get onto the Hawke’s Bay tourism website. It was confirmed that they could do this for a charge of $100.

· Cr Burne-Field asked whether there were opportunities to promote Central Hawke’s Bay Marae on the website. Ms Baldwin confirmed that this was something that could be explored.

· Cr Sharp asked whether there were opportunities for businesses to collaborate. Mrs Baldwin indicated that moving forward, she would like to provide informal opportunities for businesses to get together.

· Cr Sharp spoke about investment in the district and expressed that he was pleased that there was a dedicated Central Hawke’s Bay Tourism person, connected with Hawke’s Bay Tourism and looked forward to seeing continued growth in this space.

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr Tim Chote

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

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are 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 for the passing of this resolution

7.1 - Key Project Status Report - Big Water Story

s7(2)(b)(ii) - the withholding of the information is necessary to 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

s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority

s48(1)(a)(i) - the public conduct of 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 under section 6 or section 7

Carried

The Finance and Planning Committee went into a public excluded session to consider this item.

While giving consideration to the item, Cr Burne-Field queried why it was in a public excluded session, given the high public interest in this matter.

The meeting continued in a public excluded session and went back into open committee, moved by Cr Annand and seconded by Cr Tennent.

Subsequently, Cr Tennent expressed that the committee should go back into closed session to reconsider what specific information contained within the report required it to exclude the public. This was moved by Cr Annand and moved by Cr Tennent.

Within the closed session Cr Tennent raised a motion as follows:

Motion

Moved: Cr David Tennent

Seconded: Cr Shelley Burne-Field

That the Key Project Status Report on the Big Water Story be removed from Public Excluded, after removing any commercially sensitive information.

CARRIED

The modified report will be added to the council website in conjunction with these minutes.

Committee Resolution

Moved: Cr Kelly Annand

Seconded: Cr David Tennent

That Council moves out of Closed Council into Open Council.

Carried

7 Date of Next Meeting

Recommendation

THAT the next meeting of the Central Hawke's Bay District Finance and Planning Committee be held on 14 February 2019 .

8 Time of Closure

The Meeting closed at 11.27am.

The minutes of this meeting were confirmed at the Finance and Planning Committee Meeting held on 14 February 2019.

...................................................

CHAIRPERSON

Finance and Planning Committee Meeting Agenda 14 February 2019

6 Report Section

6.1 Finance and Planning Committee Work Programme Update

File Number: COU1-1410

Author: Monique Davidson, Chief Executive

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

PURPOSE

The purpose of this report is to provide an update to the Finance and Planning Committee on the key priorities as identified in the Terms of Reference and work programme for the committee.

Recommendation

That, having considered all matters raised in the report, the report be noted.

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

The role of the Finance and Planning Committee is to assist Council to discharge its responsibilities for:

• Preparation and promotion of key planning documents including the Long Term Plan, Annual Plan and District Plan

• Assess and progress current and future projects

• Policy review and development relevant to finance, planning and infrastructure

Specific responsibilities include:

• Discussion and preparation of the Annual Plan

• Discussion and preparation of the Long Term Plan

• Discussion and preparation of the District Plan

• Approval of appropriate draft strategies, plans and policies for public consultation

• Recommend appropriate strategies plans and policies to council for adoption

• Council owned infrastructure

• Finance policies

• Infrastructure policies

The purpose of this report is to provide a regular update on key areas of focus for the Finance and Planning Committee.

Annual Plan 2018-2019

The annual plan process focuses on year-to-year budgets. Councils prepare an annual plan in each of the two years between LTP reviews, and set out in them what the council plans to do in the next 12 months to move towards achieving its goals.

Council commenced Annual Plan Workshops on 29^th November 2018, and is on track to consider the adoption of the Draft Annual Pan 2019/2020 on the 28^th February 2018 Council meeting. Community consultation will take place throughout March and April, followed by hearings and deliberations, with the final adoption of the Annual Plan 2019/2020 scheduled for 20^th June 2019.

District Plan

The District Plan is progressing well with the overall project programme meeting the major milestone of the draft District Plan being adopted by Council on 31 October 2018.

Work is progressing on addressing the remaining bodies of work, which need to be complete before the draft is released for public comment in May/June 2019. In particular, officers are working on completing the Natural Environment Chapter of the draft including the Significant Natural Areas (SNA’s) and the landscape provisions (ONL’s and ONF’s). A schedule of meetings for the District Plan Sub-Committee over the next three months has been developed to enable these matters to be matters to be reported back to the Sub-Committee.

In addition, officers are working with the Council’s Communications Consultant, Little Kowhai, to formulate the District Plan Communication Plan to provide structure and direction on release of information about the draft. It is anticipated that the completed District Plan Communications Plan will be presented at a Council workshop in March/April 2019.

The Communications Plan will ensure that high-level key messages about the review, what it is and how submissions can be made on the draft are provided to the community.

The Plan will also include information on proposed public meetings, including meetings with key industry and stakeholder groups, to discuss the draft. These meetings will include attendance of elected members. An information pack of some of the key messages relating to the draft, as well as frequently asked questions will be provided at these meetings.

Development Contributions Policy

Council adopted the Development Contributions Policy on 13 December 2018. This Policy is now operational.

External Funding Strategy

This work is in draft form and will be workshopped with the Finance and Planning Committee on 14 March.

Rates Review

Following the Council workshop on the 29 November 2018, work has commenced on the scoping and planning of the Rate Review project. A report will be bought to the Finance and Planning Committee on 28 March 2019 to adopt the scope and plan.

Key items for the Finance and Planning Committee work programme in the coming months are:

- Completion of External Funding Strategy

- Completion of Annual Plan 2019/2020

- Progression of Rates Review

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:

· Council staff have delegated authority for any decisions made;

· Council staff have identified and assessed all reasonably practicable options for addressing the matter and considered the views and preferences of any interested or affected persons (including Māori), in proportion to the significance of the matter;

· Any decisions made will help meet the current and future needs of communities for good-quality local infrastructure, local public services, and performance of regulatory functions in a way that is most cost-effective for households and businesses;

· Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

· Any decisions made are consistent with the Council's plans and policies; and

· No decisions have been made that would alter significantly the intended level of service provision for any significant activity undertaken by or on behalf of the Council, or would transfer the ownership or control of a strategic asset to or from the Council.

Next Steps

The Chief Executive will provide a further progress report at the next Finance and Planning Committee meeting on the 28^th March 2019.

Recommendation

That, having considered all matters raised in the report, the report be noted.

Finance and Planning Committee Meeting Agenda 14 February 2019

6.2 Quarterly Financial Reporting for December 2018

File Number: COU1-1410

Author: Bronda Smith, Group Manager, Corporate Support and Services

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. Quarterly Financial Report December 2018 ⇩

PURPOSE

Provide Council with a summary of Council's second quarter financial performance for the 2018/19 financial year.

Recommendation

That, having considered all matters raised in the report, the report on Council's second quarter financial performance for the 2018/19 financial year be noted.

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

This report is to supply Council with a summary of the financial performance of Council and highlights the key financials for the second quarter for the year ended 30 June 2019.

The report contains a Financial Overview for Whole of Council and the Groups of Activities, Treasury Report and Rates Debt Information.

This Financial Report is for the 6 months to 31 December 2018. Overall, the Surplus for Operational Funding is behind operating budget by $33k, which includes a revenue increase in Fees and Charges of $106K and Payment to Staff and Suppliers being above budget by $94k. Employment Costs are $174k above budget and other expenses are above budget by $86K. Details of the variances can be found in the Executive Summary within the attached report.

Financial and Resourcing Implications

Officers will continue to monitor and manage the finances of Council.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:

· Council staff have delegated authority for any decisions made;

· Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

· Any decisions made are consistent with the Council's plans and policies; and

Next Steps

Officers will continue to monitor and management the finances of Council.

Recommendation

That, having considered all matters raised in the report, the report on Council's second quarter financial performance for the 2018/19 financial year be noted.

Finance and Planning Committee Meeting Agenda 14 February 2019

6.4 Elected Members Expenses for July to December 2018

File Number: COU1-1410

Author: Bronda Smith, Group Manager, Corporate Support and Services

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

PURPOSE

The purpose of this report is to update Council on the Elected Members’ Expenses for the six month period of July to December 2018.

Recommendation

That, having considered all matters raised in the report, the Elected Members Expenses for July to December 2018 report be noted.

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

Council policy Elected Member Expenses and Allowances Policy 1.21 states:

“Transparency is achieved through the six monthly publication on the Council’s website of all expenses for elected members over the past six months”

The expenses included in the totals below are mileage reimbursement, car expenses, Councillor iPad data charges, phone costs, meeting and conference expenses including accommodation and meals.

In the below table is the Elected Member Expenses for the period July to December 2018.

	Mileage & Car Expenses	Conferences, Meetings & Training	Phone and Ipads	Total
Mayor Alex Walker	4,991.78	3,765.26	238.01	8,995.05
Cr Ian Sharp		497.81	30.00	527.81
Cr Kelly Annand	418.55	1,543.09	30.00	1,991.64
Cr Shelley Burne-Field	938.78	940.39	30.00	1,909.17
Cr Tim Chote	195.64	1,360.65	30.00	1,586.29
Cr Gerald Minehan		497.81	30.00	527.81
Cr Brent Muggeridge		497.81	215.65	713.46
Cr David Tennent	915.42	497.81	30.00	1,443.23
Cr Tim Aitken		497.81	30.00	527.81
Roger Maaka	1,003.75		30.00	1,033.75
Total	8,463.92	10,098.44	693.66	19,256.02

During this period, as per Schedule 7 of the Local Government Act 2002 and the Local Government Members (2018/19)(Local Authorities) Determination 2018, a vehicle has been provided to the Mayor for restricted private use.

As per the Determination, Restricted Private Use means—

a) the vehicle is usually driven home and securely parked by the mayor or regional chairperson; and

b) the vehicle is otherwise generally available for use by other local authority members or staff on local authority business; and

c) the vehicle is used solely for local authority business; and

d) all travel in the vehicle is recorded in a log-book.

The above expenses includes the Mayor’s final claim for mileage prior to the provision of the vehicle in October.

Financial and Resourcing Implications

There are no financial or resourcing implications included in this report.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:

· Council staff have delegated authority for any decisions made;

· Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

· Any decisions made are consistent with the Council's plans and policies; and

Recommendation

That, having considered all matters raised in the report, the Elected Members Expenses for July to December 2018 report be noted.

Finance and Planning Committee Meeting Agenda 14 February 2019

6.5 Key Project Status Report #4 - Big Water Story

File Number: COU1-1410

Author: Darren de Klerk, 3 Waters Programme Manager

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. Key Project Status Report #4 ⇩

PURPOSE

The purpose of the report is to provide information to Council on the progress and status of #thebigwaterstory programme.

Recommendation

That, having considered all matters raised in the report, the report be noted.

significance and engagement

This report is provided for information purposes only and has been assessed as being of some importance.

DISCUSSION

Due to the nature of the big water story, the key status report outlines;

· Update on the progress of the programme

· Key individual project updates

· Key risks to the programme and proposed control measures

· Achievements in the previous quarter

· Planned activities for the next quarter

· Financial status of the programme and key projects

The report provides an update to Council on the programme progress.

Financial and Resourcing Implications

All projects within the big water story have been addressed within the Long Term Plan and have budget set aside to deliver them.

Resourcing needs are being addressed, and risk levels will become better known as each project progress through to their relevant construction phases.

Implications ASSESSMENT

This report confirms that the matter concerned has no particular implications and has been dealt with in accordance with the Local Government Act 2002. Specifically:

· Council staff have delegated authority for any decisions made;

· Unless stated above, any decisions made can be addressed through current funding under the Long-Term Plan and Annual Plan;

· Any decisions made are consistent with the Council's plans and policies; and

Next Steps

The next step for the programme will be to continue to manage and lead the programme as planned, with regular communication updates and 3 monthly key project status report updates to the finance and planning committee.

The capital projects team will continue to create documents and plans to support each project and to add a robust process to the delivery of the programme.

As outlined in the attached report, there are a number of projects passing through gateways in early 2019, and a number on track to be physically completed by the end of June 2019.

This will see numerous papers be brought to council or to the low value tenders committee represented by an executive leadership quorum.

Appendices

Key Project Status Report #4

Recommendation

That, having considered all matters raised in the report, the report be noted.