Agenda of Council Meeting - Wednesday, 17 November 2021

Council Meeting Agenda

17 November 2021

MINUTES OF Central Hawkes Bay District Council
Council Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 23 September 2021 AT 9.00am

PRESENT: Mayor Alex Walker

Deputy Mayor Kelly Annand

Cr Jerry Greer

Cr Exham Wichman

Cr Brent Muggeridge

Cr Tim Aitken

Cr Gerard Minehan

Cr Kate Taylor

Cr Pip Burne

IN ATTENDANCE: Monique Davidson (Chief Executive)

Brent Chamberlain (Chief Financial Officer)

Doug Tate (Group Manager, Customer and Community Partnerships)

Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Darren de Klerk (Director Projects and Programmes)

Caitlyn Dine (Governance and Support Officer)

1 Karakia

Cr Taylor presented the Karakia

2 Apologies

That the apology of Kaiārahi Matua Maaka be noted.

Introductions of new staff.

3 Declarations of Conflicts of Interest

Cr Annand declared a conflict of interest in the organisation report, she is the general manager of Connect Driver Licensing and noted contract negotiations are not done by her they are completed by her chairperson.

4 Standing Orders

Resolved: 21.87

Moved: Cr Kate Taylor

Seconded: Cr Gerard Minehan

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

21.2 Time limits on speakers

21.5 Members may speak only once

21.6 Limits on number of speakers

And that Option C under section 22 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner.

Carried

5 Confirmation of Minutes

Resolved: 21.88

Moved: Cr Kate Taylor

Seconded: Cr Pip Burne

That the minutes of the Ordinary Council Meeting held on 29 July 2021 as circulated, be confirmed as true and correct.

Carried

6 Reports from Committees

6.1 Minutes of the Strategy and Wellbeing Committee Meeting held on 26 August 2021

Resolved: 21.89

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Exham Wichman

Recommendation

1. That the minutes of the meeting of the Strategy and Wellbeing Committee held on 26 August 2021 be received.

Carried

6.2 Minutes of the Finance and Infrastructure Committee Meeting held on 12 August 2021

Resolved: 21.90

Moved: Cr Brent Muggeridge

Seconded: Cr Jerry Greer

Recommendation

1. That the minutes of the meeting of the Finance and Infrastructure Committee held on 12 August 2021 be received.

Carried

6.3 Minutes of the Risk and Assurance Committee Meeting held on 16 September 2021

Resolved: 21.91

Moved: Cr Tim Aitken

Seconded: Cr Kate Taylor

Recommendation

1. That the minutes of the meeting of the Risk and Assurance Committee held on 16 September 2021 be received.

Carried

7 Report Section

7.1 Adoption of Annual Report 2020/2021

PURPOSE

The matter for consideration by the Council is to adopt the Annual Report for the Year Ended 30 June 2021.

RECOMMENDATION for consideration

That having considered all matters raised in the report and following the recommendation of the Risk and Assurance Committee:

a) That Council adopt the Annual Report and Annual Report Summary for the year ended 30 June 2021.

Amendment

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Brent Muggeridge

b) That council delegates to the Chief Executive any final minor changes for completion of the Annual Report.

Carried

Mr Chamberlain presented this report.

7.2 Three Waters Reform - Update to Council and Endorsement of Feedback to Government

purpose

The purpose of this report is to update Council on the Government’s 30 June 2021 and 15 July 2021 Three Waters Reform announcements, which change the reform process previously outlined in 2020, the specific data and modelling Council has received to date, the implications of the revised Three Waters Reform proposal for Council and alternative service delivery scenarios and next steps (including uncertainties).

Resolved: 21.92

Moved: Cr Gerard Minehan

Seconded: Cr Jerry Greer

That having considered all matters raised in the report:

a. That Council notes the Government’s 30 June and 15 July 2021 Three Waters Reform announcements.

b. That Council notes officers’ advice on the accuracy of the information provided to Council in June and July 2021 as a result of the RFI and WICS modelling processes.

c. That Council notes officers’ analysis of the impacts of the Government’s proposed three water service delivery model on the Central Hawke‘s Bay community and its wellbeing, including the impacts on the delivery of water services and water related outcomes, capability and capacity, on Central Hawke‘s Bay District Council’s sustainability (including rating impact, debt impact, and efficiency) and notes that based on this analysis, an alternate model to the Government proposal is preferred with the preference being for the development of a Hawke’s Bay Regional entity to deliver 3 waters services.

d. That Council notes the analysis of three waters service delivery options available to Council at this time provided in this report.

e. That Council notes that a decision to support the Government’s preferred three waters service delivery option is not lawful (would be ultra vires) at present due to section 130 of the Local Government Act 2002 (LGA), which prohibits Council from divesting its ownership or interest in a water service except to another local government organisation, and what we currently know (and don’t know) about the Government’s preferred option.

f. That Council notes that it cannot make a formal decision on a regional option for three waters service delivery without doing a Long Term Plan (LTP) amendment and ensuring it meets section 130 of the LGA.

g. That Council notes that the Government intends to make further decisions about the three waters service reform model after 30 September 2021.

h. That Council notes that it would be to expect to gain an understanding of the community’s views once Council has further information from the Government on the next steps in the reform process.

i. That Council requests the CEO to seek guidance on and/or give feedback to the Government (via a formal letter) on:

· the following areas of the Government’s proposal that Council needs more information on:

1. Commercial arrangements between Entity C and existing suppliers, stakeholders or partners

2. The decision-making process for this reform programme and the current proposal/s

3. Service delivery and response challenges for the new entity and how it will meet customer needs

4. Financial implications of the proposals and modelling

5. Governance and ownership considerations

6. Pricing and charging mechanisms

7. Prioritisation of work (maintenance and capital works) under the new entity

8. Challenges and opportunities during any transition/change process

9. Support from Government for the proposed and preferred Hawke’s Bay model

· the following changes to the Government’s proposal/process:

1. The establishment of a Hawke‘s Bay Regional model for the delivery of 3 waters services

2. That Central Hawke‘s Bay is guaranteed representation in any proposed governance structure of a newly established entity

3. That the reform process be clarified, and that community are formally and meaningfully engaged to provide feedback

j. That Council notes that the CEO will report back further once they have received further information and guidance from Government, LGNZ and Taituarā on what the next steps look like and how these should be managed.

k. That Council in noting the above, agrees it has given consideration to sections 76, 77, 78, and 79 of the Local Government Act 2002 and in its judgment considers it has complied with the decision-making process that those sections require (including, but not limited to, having sufficient information and analysis that is proportionate to the decisions being made).

Carried

Amendment

Moved: Cr Gerard Minehan

Seconded: Cr Jerry Greer

i. the following changes to the Government’s proposal/process:

4. That we demand Central Government to take a stronger lead and work with the sector in better informing and communicating with community about the multiple reform programmes with a particular emphasis on the difference between 3 Waters Reform, and Water Services Bill. We request that the Government provide clear and concise reassurance about the combined vision of the multiple reform programmes that effect Local Government, and how that relates to the constitutional makeup of democracy in New Zealand.

Mrs Davidson, Mr Lloyd and presented this report.

Meeting adjourned at 10:44am for a morning tea break.

Meeting resumed at 11:00am.

7.3 Resolution Monitoring Report

Purpose

The purpose of this report is to present to Council the Resolution Monitoring Report. This report seeks to ensure Council has visibility over work that is progressing, following resolutions from Council.

Resolved: 21.93

Moved: Cr Jerry Greer

Seconded: Cr Exham Wichman

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

Carried

Mrs Davidson presented this report.

7.4 District Licensing Annual Report 2020/2021

PURPOSE

The purpose of this report is that Council is required to report annually on the proceedings and operations of the District Licensing Committee under section 199 of the Sale and Supply of Alcohol Act 2012.

Resolved: 21.94

Moved: Cr Pip Burne

Seconded: Cr Kate Taylor

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

Carried

Mrs Harrison presented this report.

7.5 Annual Dog Control Policy and Practices Report 2020/2021

PURPOSE

The purpose of bringing this report to Council is to formally report on the effectiveness of the Central Hawke’s Bay District Council’s dog policy and control practices. This report is required under the Dog Control Act 1996.

The report includes statistics for registrations and complaint investigation, as well as key achievements for the reporting period.

Resolved: 21.95

Moved: Cr Kate Taylor

Seconded: Cr Exham Wichman

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

Carried

Mrs Harrison presented this report.

7.6 Resident's Opinion Survey Results 2021

PURPOSE

The purpose of this report is to provide elected members with the overall highlights received from the 2021 Resident’s Opinion Survey.

Resolved: 21.96

Moved: Cr Gerard Minehan

Seconded: Cr Kate Taylor

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

Carried

Mr Tate presented this report.

Page 285 Cr Taylor would like to see the locations.

7.7 Hawke's Bay Local Authority Shared Services - Council Controlled Organisation Exemption

PURPOSE

To obtain a decision from the Council to continue to exempt the Hawke’s Bay Local Authority Shared Services Limited (HBLASS) from the requirements imposed on Council Controlled Organisations (CCOs) under the Local Government Act 2002 (LGA).

Resolved: 21.97

Moved: Cr Pip Burne

Seconded: Cr Kate Taylor

That having considered all matters raised in the report:

a) the report titled ‘Hawke’s Bay Local Authority Shared Services – Council Controlled Organisation Exemption’ be received.

b) the exemption of Hawke’s Bay Local Authority Shared Services (HBLASS) from the Council Controlled Organisation requirements (Local Government Act Section 7(3)) is approved.

c) noting that all five Hawke’s Bay Councils are required to resolve that the HBLASS Limited be exempted from being a CCO be noted.

d) Council will actively support shared and common goal setting, decision-making, resourcing including financial contribution, staff and communication.

Carried

Mr Chamberlain presented this report.

8 Mayor and Councillor Reports

8.1 Mayor's Report for September 2021

EXECUTIVE SUMMARY

The purpose of this report is to present Her Worship the Mayor’s report.

This report will be presented to Council on the day.

Recommendation

That the Mayor’s report for September 2021 be received.

This report was not tabled on the day.

8.2 Strategy and Wellbeing Committee Chair Report

purpose

The purpose of this report is to present the Strategy and Wellbeing Committee Chair Report.

Resolved: 21.98

Moved: Cr Gerard Minehan

Seconded: Cr Pip Burne

That the Strategy and Wellbeing Committee Chair Report for September 2021 be received.

Carried

Cr Annand presented this report.

8.3 Finance and Infrastructure Committee Chair's Report

Purpose

The purpose of this report is to present the Finance and Infrastructure Committee Chair Report.

This report will be presented to Council on the day.

Recommendation

That the Finance and Infrastructure Committee Chair Report be noted.

This report was not tabled on the day.

8.4 Ruataniwha Ward Report

Purpose

The purpose of this report is to present the Ruataniwha Ward Report.

This report will be presented to Council on the day.

Resolved: 21.99

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Jerry Greer

That the Ruataniwha Ward Report for September 2021 be received.

Carried

Cr Annand presented this report.

8.5 Aramoana/Ruahine Ward Report

Purpose

The purpose of this report is to present the Aramoana/Ruahine Ward Report.

Resolved: 21.100

Moved: Cr Tim Aitken

Seconded: Cr Kate Taylor

That the Aramoana/Ruahine Ward Report for September 2021 be received.

Carried

Cr Aitken presented this report.

9 Chief Executive Report

9.1 Bi Monthly Organisation Performance Report August - September 2021

PURPOSE

The purpose of this report is to present to Council the organisation report for August - September 2021.

Resolved: 21.101

Moved: Mayor Alex Walker

Seconded: Cr Tim Aitken

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

Carried

Mrs Davidson presented this report.

Council moved to public excluded at 12:00pm

10 Public Excluded Business

RESOLUTION TO EXCLUDE THE PUBLIC

Resolved: 21.102

Moved: Cr Brent Muggeridge

Seconded: Deputy Mayor Kelly Annand

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
10.1 - Resolution Monitoring Report - Public Excluded	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)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	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
10.2 - Central Hawke's Bay Consumers Power Trust 2021 Trustee Election	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons 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
10.3 - August District Plan Key Projects Status Report	s7(2)(f)(i) - free and frank expression of opinions by or between or to members or officers or employees of any local authority s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege	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
10.4 - C1126 - Extension of Desludging Contract	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage	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
10.5 - C1148 - Tikokino Road Water Main (Stage 2 and 3) - Tender Outcome Report	s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	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
10.6 - C1173 - Tender Outcome Report (3 Waters Consultancy Support Panel)	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)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	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

11 Date of Next Meeting

Resolved: 21.103

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Exham Wichman

THAT the next meeting of the Central Hawke's Bay District Council be held on 17 November 2021.

Carried

Cr Taylor closed the meeting with a karakia.

12 Time of Closure

The Meeting closed at 1:07pm.

The minutes of this meeting were confirmed at the Council Meeting held on 17 November 2021.

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CHAIRPERSON

Strategy and Wellbeing Committee Meeting Minutes

21 October 2021

MINUTES OF Central HAwkes Bay District Council
Strategy and Wellbeing Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 21 October 2021 AT 9.00am

PRESENT: Deputy Mayor (Chair) Kelly Annand

Cr Jerry Greer

Cr Kate Taylor

Cr Exham Wichman

Mayor Alex Walker

Cr Tim Aitken

Cr Brent Muggeridge

Cr Gerard Minehan

Cr Pip Burne

IN ATTENDANCE: Doug Tate (Group Manager, Customer and Community Partnerships)

Monique Davidson (Chief Executive)

Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Dylan Muggeridge (Strategic Planning and Development Manager)

Caitlyn Dine (Governance and Support Officer)

1 Karakia

Councillor Taylor presented the karakia.

2 Apologies

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr Kate Taylor

That the apology of Kaiārahi Matua Maaka be noted.

Carried

Councillor Muggeridge was late and arrived at 9:15am.

2 Declarations of Conflicts of Interest

Nil

3 Standing Orders

Committee Resolution

Moved: Cr Kate Taylor

Seconded: Cr Pip Burne

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

· 21.2 Time limits on speakers

· 21.5 Members may speak only once

· 21.6 Limits on number of speakers

And that Option C under section 22 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner.

Carried

4 Confirmation of Minutes

Committee Resolution

Moved: Mayor Alex Walker

Seconded: Cr Jerry Greer

That the minutes of the Strategy and Wellbeing Committee Meeting held on 26 August 2021 as circulated, be confirmed as true and correct.

Carried

Student Brooke Pawai – St Josephs School presented her speech on Nga Ara Tipuna.

Student Connor Hansen – Takapau Primary School presented his speech on the Environment.

5 Report Section

6.1 Strategy and Wellbeing Committee Resolution Monitoring Report

PURPOSE

The purpose of this report is to present to the Committee the Strategy and Wellbeing Resolution Monitoring Report. This report seeks to ensure the Committee has visibility over work that is progressing, following resolutions from Committee.

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr Pip Burne

RECCOMENDATION

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

Carried

Mrs Davidson presented this report.

6.2 Strategy and Wellbeing Committee Priority Report

PURPOSE

The purpose of this report is for the Strategy and Wellbeing Committee to receive a report on the progress of key committee priorities.

Committee Resolution

Moved: Cr Exham Wichman

Seconded: Cr Gerard Minehan

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

Carried

Mrs Davidson introduced this report. Followed by staff presentations:

Mrs Wiggins presented Waste Free CHB

Mr Tate presented Social Housing

Mrs Campbell presented Economic Development

Mr Lloyd presented Environmental Strategy

Mrs Campbell presented Community Wellbeing Strategy

Whaea Kupa presented Tūhono Mai Tūhono Atū

Mrs Renata presented Community Planning

6.3 Thriving Places and Spaces Programme

PURPOSE

The purpose of this report is to present the Committee with an overview of the Thriving Places and Spaces programme. This report also provides the Committee oversight of the community engagement strategy for the next steps of the programme, and procedurally seeks a resolution in accordance with Section 41(5) of the Reserves Act 1977, pertaining to community engagement in the development of reserve management plans.

Committee Resolution

Moved: Cr Brent Muggeridge

Seconded: Cr Jerry Greer

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

b) That the discussion documents and high-level engagement plan presented in the attachments to the report be noted

c) That the Thriving Places and Spaces Programme be used to assist in the development of reserve management plans, and to satisfy Section 41(5) of the Reserves Act 1977, with community engagement in November 2021 – January 2022 providing the opportunity for initial community input into development of these plans.

Carried

Mr Muggeridge presented this report.

Moved to report 6.5 before report 6.4.

6.5 Community Pride & Vibrancy Fund - Whakanuia Matariki Ki Tamatea Festival

PURPOSE

The purpose of this report is to inform the Strategy and Wellbeing Committee of the event funded by the Community Pride & Vibrancy Fund namely the Whakanuia Matariki Ki Tamatea Festival held at Russell Park, Waipukurau on Friday 18 June 2021, in accordance with the Community Funding Policy.

Committee Resolution

Moved: Cr Exham Wichman

Seconded: Cr Kate Taylor

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

Carried

Te Rangimarie Ngarotata presented this report alongside Phil Morris.

6.4 Economic Development Action Plan Update

PURPOSE

The purpose of this report is to bring Committee members up to date on the implementation of the Economic Development Action Plan (2019) so far and highlight key activities that have been completed across the seven work streams in the Plan. Ongoing implementation status updates will be provided as part of regular Strategy and Wellbeing Committee priority reporting.

Committee Resolution

Moved: Cr Kate Taylor

Seconded: Mayor Alex Walker

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

Carried

Mrs Campbell presented this report.

6.6 Annual Community Group Reporting Summary

PURPOSE

The purpose of this report is to provide to the Strategy and Wellbeing Committee for its formal receipt, reports from community partners and organisations required annually or biennially.

Committee Resolution

Moved: Cr Kate Taylor

Seconded: Cr Pip Burne

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

Carried

Mr Tate presented this report.

6 Date of Next Meeting

Recommendation

THAT the next meeting of the Central Hawke's Bay District Council Strategy and Wellbeing be held in 2022.

7 Time of Closure

The Meeting closed at 10.46am.

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CHAIRPERSON

Finance and Infrastructure Committee Meeting Minutes

7 October 2021

MINUTES OF Central HAwkes Bay District Council
Finance and Infrastructure Committee Meeting
HELD AT THE Council Chamber, 28-32 Ruataniwha Street, Waipawa
ON Thursday, 7 October 2021 AT 9.00am

PRESENT: Chairperson Brent Muggeridge

Cr Tim Aitken

Deputy Mayor Kelly Annand

Cr Gerard Minehan

Cr Kate Taylor

Cr Pip Burne

IN ATTENDANCE: Joshua Lloyd (Group Manager, Community Infrastructure and Development)

Monique Davidson (Chief Executive)

Nicola Bousfield (Group Manager, People and Business Enablement) Via Zoom

Brent Chamberlain (Chief Financial Officer) Via Zoom

Darren de Klerk (Director Projects and Programmes) via Zoom

Caitlyn Dine (Governance and Support Officer)

1 Karakia

Cr Taylor lead the Karakia.

2 Apologies

Committee Resolution

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Pip Burne

That the apology of Mayor Walker, Dr Maaka, Cr Wichman and Cr Greer be noted.

Carried

3 Declarations of Conflicts of Interest

Nil.

4 Standing Orders

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Deputy Mayor Kelly Annand

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

· 21.2 Time limits on speakers

· 21.5 Members may speak only once

· 21.6 Limits on number of speakers

And that Option C under section 22 General procedures for speaking and moving motions be used for the meeting.

Standing orders are recommended to be suspended to enable members to engage in discussion in a free and frank manner

Carried

5 Confirmation of Minutes

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr Tim Aitken

That the minutes of the Finance and Infrastructure Committee Meeting held on 12 August 2021 as circulated, be confirmed as true and correct.

Carried

6 Report Section

6.1 Resolution Monitoring Report

PURPOSE

The purpose of this report is to present to the Committee the Finance and Infrastructure Resolution Monitoring Report. This report seeks to ensure the Committee has visibility over work that is progressing, following resolutions from Council.

Committee Resolution

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Pip Burne

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

Carried

Mrs Davidson presented this report.

Cr Muggeridge noted that the item Draft Financial Report and Carry Forwards for the 2020/2021 Financial Year should be noted as Completed as the annual plan has been adopted.

6.2 Finance and Infrastructure Committee Priority Report

PURPOSE

The purpose of this report is to present to the Finance and Infrastructure Committee an update on key priorities.

Committee Resolution

Moved: Cr Pip Burne

Seconded: Cr Tim Aitken

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

Carried

Motion

Moved: Chairperson Brent Muggeridge

Seconded: Cr Kate Taylor

That Council urgently seek Waka Kotahi investment and decisions into safety concerns of two key intersections in Waipawa and Waipukurau, and note Councils grave concerns about the lack of urgency on this matter.

CARRIED

Mrs Davidson presented this report.

6.3 Key Project Status Report - BigWaterStory

PURPOSE

Following the conception of #thebigwaterstory, Council set about implementing the programme. A programme manager was appointed and focus given to defining the projects that form the programme in greater detail.

More recently in mid 2020, Council created a project management office (PMO) to oversee and deliver the growing capital programme.

The purpose of this key project status report serves as an opportunity to formally report to elected members on the progress of each of the projects in the relevant programme and their expected delivery against time, scope, budget and quality standards against the larger programme objectives.

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Cr Kate Taylor

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

Carried

Mr de Klerk presented this report.

6.4 Key Project Status Report - BigWasteWaterStory

PURPOSE

Council have recognised the growing programme, and in mid 2020 a project management office (PMO) was established and is growing as the programme and opportunities grow.

The six wastewater plants form a significant programme of works themselves, and we have prudently decided to report on the progress of these six wastewater plants and their subsequent upgrades and re-consenting separately from #thebigwaterstory. This programme has been named #thebigwastewaterstory.

The purpose of this key project status report serves as an opportunity to formally report to elected members on the progress of each of the projects and their expected delivery against time, scope, budget and quality standards against the larger programme objectives.

Committee Resolution

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Pip Burne

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

Carried

Mr de Klerk presented this report.

6.5 Summary of Annual Community Halls Meeting

PURPOSE

The purpose of this report is to present to Council for its receipt the annual reports from each of the district’s rural halls covering the period 1 July 2020 – 30 June 2021.

Committee Resolution

Moved: Cr Tim Aitken

Seconded: Cr Kate Taylor

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

Carried

Mrs Leaf presented this report.

6.6 Elected Members Expenses for July 2021 to August 2021

PURPOSE

The purpose of this report is to update the Committee on the Elected Members’ Expenses for the four months covering July 2021 to August 2021.

Committee Resolution

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Gerard Minehan

1. That, having considered all matters raised in the report, the Elected Members Expenses for July 2021 to August 2021 report be noted.

Carried

Mr Chamberlain presented this report.

6.7 Review of Terms of Reference for the Hawkes Bay Drinking Water Governance Joint Committee

PURPOSE

The purpose of this report is to seek a resolution to disestablish the Hawke’s Bay Water Governance Joint Committee.

Committee Resolution

Moved: Cr Kate Taylor

Seconded: Cr Pip Burne

That having considered all matters raised in the report:

a) That the Committee receives the “Review of Terms of Reference for the Hawke’s Bay Drinking Water Governance Joint Committee” report.

b) That the Committee Recommends to Council that:

a. The Hawke’s Bay Drinking Water Governance Joint Committee be disestablished, having concluded the functions for which it was set up, and that governance oversight of drinking water safety be transferred to the Regional Leaders’ Forum.

b. The Hawke’s Bay Drinking Water Joint Working Group be retained and report directly to the Regional Leaders’ Forum, with a report on its future institutional and administrative support to be prepared for consideration and approval by the Regional Leaders’ Forum.

Carried

Mr Lloyd presented this report.

Meeting adjourned for a morning tea break at 10:20am

Meeting resumed at 10:45am into public excluded business.

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution

Moved: Deputy Mayor Kelly Annand

Seconded: Cr Kate Taylor

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

General subject of each matter to be considered	Reason for passing this resolution in relation to each matter	Ground(s) under section 48 for the passing of this resolution
7.1 - Public Excluded Resolution Monitoring Report	s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons s7(2)(b)(i) - the withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities	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
7.2 - Receipt of and Confirmation of Legal Approach - Waipukurau Centennial Library and Waipukurau Memorial Hall	s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege	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
7.3 - Acquisition of Land for the provision of a Pound Facility.	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)(c)(ii) - the withholding of the information is necessary to 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 otherwise to damage the public interest s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)	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

6 Date of Next Meeting

Committee Resolution

Moved: Cr Gerard Minehan

Seconded: Deputy Mayor Kelly Annand

THAT the next meeting of the Central Hawke's Bay District Council Finance and Infrastructure Committee be held in 2022 .

Carried

2 Time of Closure

The Meeting closed at Meeting closed 11:59am.

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

CHAIRPERSON

Council Meeting Agenda

17 November 2021

7.3 Retirement Housing Policy - Review for Adoption

File Number:

Author: Jennifer Leaf, Places & Open Spaces Manager

Authoriser: Doug Tate, Group Manager Customer and Community Partnerships

Attachments: 1. Existing Retirement Housing Policy ⇩

2. Draft Retirement Housing Policy ⇩

PURPOSE

The matter for consideration by the Council is the adoption of the Retirement Housing Policy.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a) The new Retirement Housing Policy be adopted, and the existing retirement housing policy be deleted.

BACKGROUND

The current Retirement Housing Policy was adopted on 14 December 2017.

In 2019, Council adopted its Housing Strategic Framework. The overarching aim of the Framework is to ‘support our community to Thrive through access to a home - He āhuru mōwai, e taurikura ai te hāpori’. This aim is supported by four strategic goals.

This body of work focusses on the achievement of Goal 4: ‘Retirement Housing is provided in the most efficient and effective way’. Goal Four is supported by two result areas:

1. Our retirement housing is sustainable and managed to provide the most efficient and effective outcomes to our community in the widest sense.

2. Our Central Hawke’s Bay People can retire in Central Hawke’s Bay.

During 2020, Council carried out a service and delivery review of its retirement housing portfolio. This met the requirement of Section 17a of the Local Government Act 2002. Following the adoption of the final report of the Section 17a Review of the delivery of Retirement Housing Services and the ‘ongoing policy review work programme’, that is part of Council’s Governance Policy Framework, the review of the existing Retirement Housing Policy began. A working group including Councillors brought its recommendations and sought feedback at a Council workshop on 1 July 2021 where a range of discussions occurred.

The attached Draft Retirement Housing Policy proposed for adoption is the outcome of those efforts.

Following recent lockdown and restrictive alert levels, Council officers sent a letter to all tenants notifying them of operating matters and updating them of our visit and the opportunity to view and give feedback on the Draft Retirement Housing Policy.

This occurred on Thursday, 21 October. The team met with the following tenants:

· Kingston Place /Limbrick: 10 tenants

· Ruahine Place: 5 tenants

· Wellington Road 3 tenants

Tenants were appreciative of the visit and the opportunity to have a first-hand say in the policy. A few had a look at the document and had no comment or “looks fine to me.” A few took the draft policy away and were asked to provide feedback as soon as possible. It was noted that a few of the copies shared at Kingston/Limbrick had a print error in them and Council returned and provided a corrected copy where this was known to have occurred.

One tenant called later with concerns. This tenant’s concern was that they couldn’t ‘sign-off on it’ as they did not understand what it meant by Councils ‘Revenue and Financing Policy” and that they were yet to see figures that showed that Council was not making a profiteering from the activity or that they had clear reasoning for increasing rental fees. This person also did not like seeing the range of potential rentals fees in the policy (e.g. 75%-95%) and would rather have a fixed amount along with concern of rental rate increases. Officers are recommending no change at this point, as a fixed price percentage would limit any potential to increase or decrease the fees relative to the funding requirements of the activity.

Outside of the financials and ‘ambiguous wording’ the individual was ‘happy with’ the objectives an intended application of the draft policy.

As of finalising this report one other tenant has provided feedback, ‘market prices are a worry.’ Other feedback related operational matters. There was no other substantial feedback.

DISCUSSION

The Retirement Housing Policy falls within the Community Facilities Activity Management Plan area of the Central Hawkes Bay District Council’s Governance Policy Framework and states:

“Elected Members are responsible for approving Activity Management Plans (and Policies) but are assisted in their decision making by information provided by Activity Managers.”

This Policy, once adopted, will provide agreed direction that has involved consideration between the alignment of the strategic management of the retirement housing activity, its associated assets, and long-term approach to the provision and maintenance, and the provided levels of service.

RISK ASSESSMENT and mitigation

Risk associated with this policy is considered quite low, and the policy actually mitigates risks in that it provides clearer direction for staff to consistently carry out its operational activities

FOUR WELLBEINGS

This decision aligns with the four wellbeing’s in the following ways:

1. Social and Cultural: Having affordable housing supports our residents to live in their community where their social and cultural connections are.

2. Economic: Provision of the policy identifying that Council will provide housing in an efficient, effective, and sustainable manner supports economic well-being.

3. Environmental: There are no obvious benefits or negatives to environmental wellbeing.

Delegations or authority

The Local Government Act 2002 specifies that one of Council’s key responsibilities is to develop and adopt policies. This directional policy falls within the Strategy and Wellbeing Committee as identified in the Governance Policy Framework.

The Policy has been reviewed by the Strategy and Wellbeing Committee and due to timing is being presented at Councils meeting this calendar year, rather than waiting for the next Strategy and Wellbeing Committee in the new calendar year.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as of some significance in that it has impacts on the users of the service. The matters were generally consulted on during the Long Term Plan process following the Section 17a service and delivery review.

OPTIONS Analysis

The options with this report are:

1. Adopt the Retirement Housing Policy as is

2. Adopt the Retirement Housing Policy with amendments, or

3. Do not adopt the Retirement Housing Policy and direct officers to do more work.

	Option 1 Adopt the Retirement Housing Policy	Option 2 Adopt the Retirement Housing Policy with amendments	Option 3 Do not adopt the Retirement Housing Policy and direct officers to do more work.
Financial and Operational Implications	There are minimal financial implications from the existing (2014) policy, with the new policy providing clearer expectations in setting rents. Operationally, direction is much clearer in who the service is for and outcomes to be achieved with service.	Same as Option 1, however relative to amendments proposed.	Continues with the status quo until a new policy is adopted.
Long Term Plan and Annual Plan Implications	As the service is rates neutral Officers will recommend annual changes to the ‘Fees and Charges’ to best achieve the objectives of the policy.	As the service is rates neutral, Officers will recommend annual changes to the ‘Fees and Charges’ to best achieve the objectives of the policy.	As the service is rates neutral Officers will recommend annual changes to the ‘Fees and Charges’ to best achieve the objectives of the policy.
Promotion or Achievement of Community Outcomes	The Retirement Housing activity supports strong communities, connected citizens, and durable infrastructure.	The Retirement Housing activity supports strong communities, connected citizens, and durable infrastructure.	The Retirement Housing activity supports strong communities, connected citizens, and durable infrastructure.
Statutory Requirements	The Policy is in line with required Healthy Homes Standard and Tenancy regulations	Policy is in line with required Healthy Homes Standard and Tenancy regulations	Policy is in line with required Healthy Homes Standard and Tenancy regulations, however is relative to the extent of Council change
Consistency with policies and plans.	The policy is consistent with the Housing Strategic Framework adopted in 2019 and the Revenue and Financing Policy, dependent on amendments	The existing policy lacks clarity.	The policy is consistent with the Housing Strategic Framework adopted in 2019 and the Revenue and Financing Policy

Recommended Option

This report recommends Option One, Adoption of the Retirement Housing Policy for addressing the matter.

NEXT STEPS

Officers will update the policy review sheet, remove ‘draft’, add dates, set controls and make the document final. Finally, make available on website in the policy section.

RECOMMENDATION

That having considered all matters raised in the report:

a) The Retirement Housing Policy be adopted, and the existing retirement housing policy be deleted.

Council Meeting Agenda

17 November 2021

7.4 Creation of Publicly Contestable Private Water Supply Fund

File Number: COU1-1400

Author: Josh Lloyd, Group Manager - Community Infrastructure and Development

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. Private Water Supply Fund - Policy ⇩

PURPOSE

The matter for consideration by the Council is the adoption of a new policy (the Private Water Supply Fund Policy) for a publicly contestable fund to support Private Water Supplies (the Private Water Supply Fund).

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a) Council ADOPT the Private Water Supply Fund Policy

b) Council NOTE the detail within the Private Water Supply Fund including the delegations for approving access to the fund, the eligibility criteria and the application process.

BACKGROUND

As part of its three waters reform programme, Government has introduced new regulations for drinking water across the country. The Water Services Act 2021 seeks to ensure that drinking water suppliers provide safe drinking water to consumers through a new drinking water regulatory and risk management framework.

The Act requires more of councils and private drinking water suppliers:

· At least once every three years, all councils will be required to identify drinking water suppliers in their communities and carry out drinking assessments to determine water supply demand, safety, quality, and any potential risks.

· By 2028, all unregistered drinking water suppliers, including rural, marae, and papakainga will need to meet the new Water Services Act, drinking water standards, and rules, or be using an acceptable solution (defined in the Act).

The bulleted requirements above refer specifically to ‘Water Suppliers’. This definition has changed under the Water Services Act 2021 and importantly now includes a very large number of small supplies / suppliers who have not previously had to meet drinking water standards.

A Water Supplier under the Water Services Bill 2021 includes those who provide water for drinking to more than one property as well as a range of other activities as set out below further below. These Water Suppliers will come under the administration and regulation of Taumata Arowai. Some examples of the types of Water Suppliers that will come under the administration of Taumata Arowai (as currently provided in the Bill) are:

Ø A bore or other drinking water supply to a group of residences within one rural property

Ø A bore or other water source supplying a community hall or commercial business

Ø A café or other small business supplied by a rainwater tank

Ø A bore or other drinking water supply to a multi-dwelling building (such as multiple separate apartments contained in a single building).

In 2021, Hawke’s Bay Councils embarked on a collaborative project to better understand private supply schemes and those that will now be classified as a Water Supplier. The ‘Private Drinking Water Supply Project’ seeks to prepare councils for new obligations and includes the development of a contestable fund and process developed where private schemes could seek assistance or funding for support and/or physical works to meet new standards and is described below.

The Private Drinking Water Supplier Project

Napier City Council, Hastings District Council, Wairoa District Council and Central Hawke’s Bay Council are collaborating on this project with the following objectives:

· Determine the number and location of private water suppliers in the Hawke’s Bay Region based on existing information held by councils and other stakeholder agencies

· Develop and test an assessment and engagement approach with a sample of private water suppliers

· Ensure that Hawke’s Bay Councils understand how best to assess private water supplies; support their communities to provide safe drinking water; understand their resource and capacity requirements for the new requirements

· Where possible, influence the way these assessments are carried out, both in terms of the methodology and communications and engagement approach, across the rest of New Zealand.

The Councils are seeking to capture information and work with a sample of private drinking water suppliers across the Hawke’s Bay region to:

· Better understand our communities’ private drinking water suppliers, and their expectations and needs

· Trial and develop a framework for water supply assessments in the future

· Understand how the new regulations might be implemented within the community.

This is an important project for Private Drinking Water Suppliers which will provide support and assistance to:

· Help them understand what the Water Services Act changes mean for them and the community they provide drinking water to.

· A technical assessment on their drinking water supply and recommendations to help them plan for meeting their obligations.

· Provide an opportunity to give feedback on the implications of the proposed regulations and acceptable solutions directly to Taumata Arowai (the regulator).

· The opportunity to apply for funding via Council incentive fund/grant to help meet the requirements of the Act and new standards.

Officers are seeking support to create a Private Drinking Water Supply Fund Policy to support the establishment and delivery of the Private Drinking Water Supply Fund. The Fund is open only to those in the community who will be classed as a Water Supplier under the Water Services Bill 2021 and will therefor come under the administration and regulation of Taumata Arowai.

The total funding available is $600,000 apportioned as follows:

· Napier City Council $150,000

· Hastings District Council $150,000

· Central Hawke’s Bay District Council $150,000

· Wairoa District Council $150,000

Central Hawkes Bay District Council currently have an existing single policy for the governance and direction of 4 publicly contestable funds. This existing Policy could be amended to include the new fund however the finite timeframe of the proposed new fund means that the existing policy would have to be amended once now to include the new fund and then amended again in future to remove it when it is exhausted.

DISCUSSION

Officers are seeking support to create a Private Water Supply Fund Policy to support the establishment and delivery of the Private Water Supply Fund.

Due to the nature of allocating public funds to private residents, community groups or others, it is considered appropriate that this activity is governed/controlled by a formal Policy (refer delegations Policy if this is actually mandated somewhere at Council). In this case, for private water supplies, the available funding is capped to a total exhaustible amount of $150,000 to be allocated at a maximum amount of $10,000 per applicant. The funding can be used for operational, capital or professional services with respect to the applicants own private supply scheme.

Council have already made decisions for the allocation of the 3 Waters Reform Funding to be used on this listed initiative to investigate and support private water supplies. Through that decision, delegation was given to Council Officers to deliver and execute projects/programmes as needed.

Officers are seeking further endorsement of Council now to formally establish the Private Drinking Water Supply Fund and Policy due to it being Councils approach to date to gain Council endorsement for the granting of public money.

The establishment of this policy will provide criteria to enable officers to assess applications from community organisations and to allocate funding from the COVID-19 stimulus funding for three waters. The Private Drinking Water Supply project supports the Water Services Act 2021 for the continuous improvement of the quality of drinking water services.

Beyond the adoption of the Fund and Policy today, delegation will be given again to Officers to execute and deliver on the Fund in accordance with the Policy.

A copy of the Policy with detail about the Private Water Supply Fund is appended.

The Policy is intended to be consistent regionally.

RISK ASSESSMENT and mitigation

Refer financial risk/delegations.

Refer perception/communications/engagement risk (fairness…)

FOUR WELLBEINGS

The establishment of the fund creates an opportunity from those in our diverse communities to remove financial barriers to securing safe and reliable drinking water for themselves and their whanau or others.

Delegations or authority

Officers are seeking further endorsement of Council now to formally establish the Private Water Supply Fund and Policy due to it being Councils approach to date to gain Council endorsement for the granting of public money.

Beyond the adoption of the Fund and Policy today, delegation will be given again to Officers to execute and deliver on the Fund in accordance with the Policy.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as being of some importance.

OPTIONS Analysis

	Option 1 Adopt Private Water Supply Fund Policy	Option 3 Do not approve Private Water Supply Fund Policy and Fund.
Financial and Operational Implications	There are no financial or operational implications. The funds have already been set aside by Council for regionally collaborative workstreams, of which this is one.	Not approving the fund would mean Officers need to find another means of utilising the available funding which is to be spent by April 2022 or must be returned to Central Government.
Long Term Plan and Annual Plan Implications	The fund is aligned with Councils continued narrative about the improvement of drinking water assets and standards for the community.	NA
Promotion or Achievement of Community Outcomes	The fund will create direct opportunities for members of the community to improve their own access to safe and reliable drinking water.	NA
Statutory Requirements	The fund supports the promotion of the Water Services Act 2021	NA
Consistency with Policies and Plans	NA	NA

Recommended Option

This report recommends option 1 Adopt Private Water Supply Fund Policy for addressing the matter.

NEXT STEPS

If the recommended option is adopted, Officers will continue to work with Regional counterparts to establish the fund and promote it within the community.

RECOMMENDATION

That having considered all matters raised in the report:

a) Council ADOPT the Private Water Supply Fund Policy

b) Council NOTE the detail within the Private Water Supply Fund including the delegations for approving access to the fund, the eligibility criteria and the application process.

Council Meeting Agenda

17 November 2021

7.5 Waipukurau Second Supply/ Waipawa Link - Project Update

File Number: COU1-1400

Author: Darren de Klerk, 3 Waters Programme Manager

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

Recommendation

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

PURPOSE

The matter for consideration by the Council is to receive a further update on the progress of the development of the investigation, design and construction for the Waipukurau Second Water Supply/ Waipawa Link project.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

This paper provides an update on the Waipukurau Second Water Supply/ Waipawa Link Project. The aim of this project being to:

• Enhance the resilience of Waipawa and Waipukurau water supply system - More robust infrastructure with lower risk of damage, increased redundancy, and longer response window.

• Ensure the supply can reliably meet demand / level of service targets - Consistent compliance with DWSNZ (Drinking Water Standards NZ), consistent water supply provided at the right quantity and pressure.

• Improve the ability to service sustainable growth, both within the existing township boundary but also in adjacent areas. Sufficient water available for sustainable growth, infrastructure that delivers water to areas of desired growth.

DISCUSSION

This paper presents a general update on the project – following an update at the August 2021 Finance and Infrastructure committee – this is a light touch update.

Design work progresses, construction is underway on pipe upgrades on Tikokino Road, and engagement continues with landowners and mana whenua.

The map below identifies and provides and overview of the different sub projects within the programme.

Map

Description automatically generated

SUMMARY UPDATES

Land

There are 7 directly affected landowners identified including LINZ, with valuations for compensation having been performed across all of these lots. Engagement has been occurring for circa 6-9 months and generally support for the project is relatively consistent and assessed as either a moderate or low risk.

Map

Description automatically generated

Key notes;

· Continued willingness by majority of affected landowners to engage in fair and reasonable negotiations.

· Challenges with negotiations at the borefield site are reflected in the land compensation.

· Independent valuations received by Council are in general in line with initial desktop assessments used to establish project budget.

· One additional landowner requirement from a further previously unaffected property for pipeline easement. Anticipated advisor costs and compensation have increased accordingly, but within wider Land and Easement budget.

In closing the project team are reasonably confident of ability to negotiate agreement within proximity to estimated compensation.

Budget

Officers as signalled in the 3^rd June presentation, the project was set a budget of $11.5m in October 2020 when the DIA funding was announced for Tranche One. The design was in very early stages with no due diligence along the route having taken place and minimal iwi or landowner engagement, as the project has progressed over the last 9-12 months, the budget understanding has progressed further.

Below sets out the budget range officers are currently expecting the project to be completed for. At present time officers are expecting the project to be circa $13.86m, but with value engineering and other aspects to be developed, expect the budget range may be less as outlined further in the key points below.

The position of the project budget at the November 2021 is as follows:

Activity	Budget - Oct 2020	Estimate - Nov 21	Spend to Date	Funding Available	Funding Detail
Council Costs	362,780	362,780	141,531
Design	1,769,349	2,450,338	1,152,463	2,200,000	3 Waters Reform
Land Easements and Acquisitions	650,000	850,000	283,061	5,642,918	2018 LTP Carry Forward
Pipelines (~11km)	4,230,000	4,173,730	323,498	7,066,000	2021 LTP Y1-3
Central Reservoir (3-6ML)	2,500,000	3,299,450
Borefield/ Treatment Plant	1,720,000	1,277,476	121,312

Contingency	267,871	1,453,074

TOTAL	11,500,000	13,866,848	2,021,865	14,908,918

Land and Easements – The February 2021 estimate placed this work stream at $910k, we believe this will now be under $850k. This is resultant from the design and coordination tasks performed to date.

Reservoir – Master-planning across all three towns is underway to assess best long term sizing and refine proposed locations for each reservoir, treating the three towns as one combined reticulation system. In addition, understanding geotechnical has assisted in refining product recommendations to a steel tank (subject to council endorsement), with a potential capital improvement of circa $0.7 – $1.1 M. Note further study is required to validate this.

River crossings – we have not been able to progress geotechnical study on the river crossing however this remains a further technical area of focus as access, investigation and design develops.

Water Treatment plant – we have not currently focused on the water treatment plant as a priority however this will become a focus as design develops.

Pipeline – Expected cost savings as we move away from installation in roadway and with the need for reinstatement and traffic management.

Two earlier pipeline projects recently tendered have provided tendered amounts less than engineer’s estimates, while more recent estimates have been above engineers estimates.

The cashflow at present is not an issue and is outlined as per the below;

BUDGET	2020-2021	2021-2022	2022-2023	2023-2024	TOTAL
LTP 2018	$ 5,642,918				$ 5,642,918
3W Reform	$ 1,100,000	$ 1,100,000			$ 2,200,000
LTP 2021		$ 2,333,000	$ 2,333,000	$ 2,400,000	$ 7,066,000
TOTAL	$ 6,742,918	$ 3,433,000	$ 2,333,000	$ 2,400,000	$ 14,908,918

Spent to Date	$ 1,362,594	$ 659,272			$ 2,021,865

Community Communications and Engagement

The communications and engagement plan has been updated as the project has developed.

Council signalled the upcoming project during Long Term Plan pre-engagement and provided more in-depth consultation on the project during March 2021 LTP consultation.

The CHBDC website provides detailed information on the project and ongoing updates for all interested parties.

https://www.chbdc.govt.nz/our-district/projects/bigwaterstory/waipukurau-second-drinking-water-supply/

Wider and more in-depth community communication will begin once landowners and iwi are sufficiently engaged with the project, and it has reached a greater level of certainty.

Direct Engagements

· Coordination with the intended due diligence, procurement and land acquisition strategy has been ongoing and sensitive to topics raised by Tangata Whenua, as well as sympathetic to directly affected Landowners. Indirectly affected landowners adjacent to the intended pipeline route have also received initial notifications for the due diligence work, with a copy of the project memo so they were aware of any contractors working alongside their properties. Wider engagement will proceed once iwi and landowner engagement has progressed and as the project develops in accordance with the developed strategy.

· Affected landowners - Direct engagement with affected landowners has been ongoing for the last 6-9 months with general support for the project. Some issues have arisen on landowner compensation expectations at the borefield and progressing the river crossing easement from Tikokino Road to the Waipawa river. These are progressing however may take further time to develop with the affected parties. Expectations are this process will take a further 3-4 months to conclude and is progressing largely as originally programmed.

· Landowners Compensation – Compensation discussion have been held so landowners understand the process. Valuations have been performed and circulated for review by the directly affected landowners. Expectations are this process will take a further 3-4 months to conclude and is progressing largely as originally programmed.

· Tangata Whenua - Following the information and meeting request circulated in January to local marae’s seeking engagement. Officers held a Hui on the 25^th June with Tangata Whenua from the Mataweka marae, Tapairu marae and Rakautatahi marae, discussing the project generally. Cultural concerns raised relate to the physical crossing of rivers with pipes, and the mixing of river waters (Waipawa & Tukituki), and the longer term control on maintenance (100yr+). Tangata Whenua are not currently in support of crossing the river with a water pipe. Four direct hui with the representatives from Mataweka and Tapairu have been held, and more recently the introduction of representatives from Te Whatuapiti and Waipukurau community marae have bolstered the cultural guidance group for the project.

Engagement has also recommenced with the Heretaunga Tamatea Settlement Trust in the last 2 months.

A community and iwi bus trip is planned for early December 2021 – this is planned to combine the interest in future wastewater projects in Waipawa, Otāne and Waipukurau alongside the water project and help educate and demystify the river crossing and technical concepts.

Risk Management

Updated below risks carried from previous Council papers.

Project Risk	Update and Mitigation	Position
Waipawa borefield ability to produce the additional water required to supply Waipukurau	The production bore comfortably yields 50 L/s. Water quality is being confirmed.	Updated
Consenting and groundwater take limitations	A preliminary water take application has been accepted by HBRC, effectively ring fencing the required allocation of 155 L/s. Consent risks remain as subject to the Borefield affected landowner agreement. A third party review by GHD and PDP has recently been undertaken and has allowed us to revisit and update the application. A focus is on modelling water demand and supply requirements across the 3 towns.	Updated
Land acquisition and landowners willing to work with council for easements and land sites.	Landowner compensation packages have been developed and are generally in line with initial expectations used to establish project budget. Next stage will require circulation of packages to landowners for comment. Refer TPG summary report. The Borefield landowner compensation has been progressed in advanced with the compensation negotiation scheduled for 10^th August.	Updated
Project delays due to currently unknown factors like ground conditions, land access.	Due diligence has been performed with the exception of the river crossing locations. No unexpected issues have been identified at this stage. Investigations on progressing the river crossings remain in discussion with Tangata Whenua, however given the expressed cultural concern on crossing rivers this is currently carried as an unresolved consent and engagement risk.	Updated
The tension between decision making to meet reform and grant funding objectives and making wise investment decisions.	The technical viability of the project is well progressed with clear operational oversight and input with no identified technical or landowner obstacles. The exception being geotechnical conditions in the river. DIA funding is now better managed and reduces the pressure to make decisions to spend capital. 1. Tangata Whenua River crossing support and consenting timeframes. 2. Final landowner agreements carrying reputational risk. 3. Council support for continued Capital expenditure.	Updated
Ground conditions including crossing two rivers.	Investigations have been paused due to Tangata Whenua concerns at crossing the river. A request to allow riverside investigations is in discussion. Progressing this remains at this stage an engagement risk for the project.	Carried
Ground conditions implicating reservoir and geotechnical costs.	Due diligence has been performed, information included as part of this paper. Council decision on officers recommendation is required.	Monitor
Additional Risks Identified
Cost inflation and market conditions.	Identification of level of budgeting confidence at 80%. Value Engineering planned alongside design development to seek further opportunities.	Carried
Procurement and Staging.	CHBDC have developed a procurement strategy for review and approval as part of this paper considering Industry Capacity and Technical requirements. This is also aligned to a master cashflow.	Monitor
Schedule - Development of river crossing methodology not timely creating consenting delays on River crossings and IWI or HBRC resistance.	Tangata Whenua engagement has commenced, concerns at crossing the river with pipe have been presented by mana whenua. Further engagements are planned with the formation of a PGG guiding the project, will require information and time to develop.	Updated
Resources (Internal/External)	Procurement strategy identified a logical and achievable delivery programme. Altering this to one of the alternative plans identified may incur further slippage in the schedule or affect quality of deliverables.	New

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

· Continue to develop the project programme in line with the objective to take a no regrets approach to investment and ensure no investment is made on assets that may be redundant in the future prior to a council decision and full commitment to the project.

· Continue to develop investigations and design and bring forward identified projects for coupling to the Second Supply.

· Develop masterplan reservoir size and location into a reticulation concept across all three towns to support Second Supply central reservoir design.

· Continue to develop discussions with Mana Whenua prior to committing to any decisions.

· Continue to engage and update the community consistent with the communications plan.

· Prepare a comprehensive Go/ No Go decision paper for presenting to council in approx.. March 2022. This should outline and give greater confidence in;

o Community and iwi engagement

o Budget to complete

o Deliverability

o Consenting

o Timeframe to complete

o Contingency Plan B and C

o Alignment to LTP, Council objective and project investment objectives

§ Focus on quantifying the wider benefits this project will being in terms of projects that may not be required

§ The ability to undertake other projects currently stalled

§ The wider benefit to the network

RECOMMENDATION

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

Council Meeting Agenda

17 November 2021

7.6 Review of Local Alcohol Policy

File Number: COU-1400

Author: Lisa Harrison, Customer Relationships and Experience Manager

Authoriser: Doug Tate, Group Manager Customer and Community Partnerships

Attachments: 1. Local Alcohol Policy ⇩

2. Letter of Support from the Hawke's Bay District Health Board ⇩

PURPOSE

The matter for consideration by the Council is the review of the Local Alcohol Policy.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

a) That the current Local Alcohol Policy is retained, and that the Policy is not reviewed until 2023/2024.

EXECUTIVE SUMMARY

The Central Hawke’s Bay Local Alcohol Policy (LAP) was due for review in September 2021, in accordance with Councils Policy Programme, which is currently a 3 yearly cycle.

Central Hawke’s Bay District Council’s first LAP was adopted in September 2018. The current LAP was adopted after considerable work was carried out to ensure that it met the purpose of an LAP, which is to encourage the responsible sale, supply and consumption of alcohol and focus on reducing alcohol related harm. The Council also wanted to ensure that we consulted with the community about what they would like to see included in the LAP.

BACKGROUND

Local Alcohol Policies (LAPs) allow local authorities, in consultation with their community, to put in place a set of decisions that must be considered by District Licensing Committees (DLCs) in granting licenses. By having one in place, it allows communities to place rules and restrictions on licensing in their district, including limiting locations, density as well as adding additional conditions.

In practice, the process for putting a LAP in place can be complex and challenging as there are several parties who have an interest in the outcome.

In August 2015, the Central Hawke’s Bay District Council published its Provisional LAP. Foodstuffs North Island Limited (Appellant) appealed element 2.4.4 to the Alcohol Regulatory and Licensing Authority (known as ARLA) as they submitted it was contrary to the District Plan. The element proposed that no licensed premises could be established within the Residential Zone. As the District Plan is the overriding document, Council accepted that the element was unreasonable because the District Plan places no such limits.

With agreement reached, ARLA issued a consent order directing Council to reconsider element in December 2017. Council then followed guidance as set out by ARLA. This resulted in us advising ARLA mid-year that we had amended the Provisional LAP by deleting this element and had also notified all of those who submitted on this element of the proposed change, and their right to appeal, as per the process set out to us.

ARLA advised on 1 August that they approved of the amendment. The final Local Alcohol Policy, as approved by ARLA, was presented to Council in September 2018 for approval and was adopted.

ARLA was established under the Sale and Supply of Alcohol Act 2012. ARLA is the overarching national body set up to ensure that the law is fairly applied. ARLA has up to three district court judges (of whom will be the Chair) and any number of other members. Its functions are:

· determining applications for new and renewed licences and Manager’s Certificates that have been referred to it by DLCs (s.170(a))

· determining appeals against

· decisions of DLCs (s.170(b))

· draft local alcohol policies (s.170(c)

· giving direction or statements to DLCs (ss.172,176)

· advising people of the appropriate DLC to go to (s.173)

· referring matters to DLCs for enquiry and report (s.175)

· determining enforcement applications - variation, suspension or cancellation of licences and Managers’ Certificates (s.170(d))

· undertaking other functions conferred on it by any Act.

The LAP is now due for review as per our policy review programme. Prior to bringing this report to Council we sought feedback from our external agencies, being the Hawke’s Bay District Health Board and New Zealand Police, regarding whether they had any concerns about the current LAP and if there was a desire from those external agencies to make any significant change. We have received written feedback from the Hawke’s Bay District Health Board. Attached is the letter of support including a suggestion to include in our LAP around child focussed events.

DISCUSSION

The purpose of having a LAP is to encourage the responsible sale, supply and consumption of alcohol and focus on reducing alcohol related harm. A LAP enables a Local Authority to:

· limit the location of licences in particular areas or near certain types of facilities such as in specific neighbourhoods or near schools or churches (this doesn't apply to special licences)

· limit the density of licences by specifying whether new licences or types of licences should be issued in a particular area (this doesn't apply to special licences)

· impose conditions on groups of licences, such as a 'one-way door' condition that would allow patrons to leave premises but not enter or re-enter after a certain time

· restrict or extend the maximum opening hours set in the new Act.

A LAP can have different conditions for different areas within the council's district.

Council is not required to have a Local Alcohol Policy. If a Council does have a LAP they must:

1. develop a draft LAP in consultation with Police, licensing inspectors and Medical Officers of Health

2. Consult the community on the draft policy using the special consultative procedure in the Local Government Act 2002

3. Prepare a provisional policy based on consultation feedback

4. Give public notice of the provisional policy. The LAP can be appealed at this stage

5. Adopt the provisional policy. A provisional policy becomes final 30 days after it's publicly notified (or after any appeals are resolved)

6. Give public notice of the LAP’s adoption and the date it'll come into effect (as determined by council resolution).

In 2015 Central Hawke’s Bay District Council carried out a thorough consultative process as part of developing a Provisional Local Alcohol Policy. It is now 3 years since the LAP was adopted. Under section 97 of the Sale and Supply of Alcohol Act (the Act) it states the timeframe of which a LAP should be reviewed and what process should be followed:

Local alcohol policies to be reviewed every 6 years

A territorial authority that has a local alcohol policy must review it, using the special consultative procedure, —

(a) no later than 6 years after it came into force; and

(b) no later than 6 years after the most recent review of it was completed.

Based on the Act, we are not required to consult on the current LAP until 2023/2024.

RISK ASSESSMENT and mitigation

Officers have assessed the risks associated with making no changes to the current LAP and have deemed it to be very low risk.

FOUR WELLBEINGS

Council is not required to have a LAP, however Council has acknowledged the influence an effective LAP can have on the community. The LAP aligns with the four wellbeings in the following ways:

· Cultural and Social

The LAP takes into the account the cultural and social impact that drinking can have in our community from the harm that can be caused by excessive or inappropriate consumption of alcohol. The current LAP includes restrictions on the location and number of premises in our district, restricting opening hours and setting conditions in relation to the different types of licences.

· Economic

The LAP has a requirement to ensure the sale, supply and consumption of alcohol should be undertaken safely and responsibly while also ensuring that our local businesses are able to thrive. The LAP gives our local businesses a clear set of requirements to meet as part of their licensing obligations which also sit alongside the requirements placed on businesses in the Sale and Supply of Alcohol Act 2012.

· Environmental

There are no new obvious positive or negatives outcomes relating to the environment from this decision.

Delegations or authority

The Local Government Act 2002 specifies that one of Council’s key responsibilities is to develop and adopt policies. Due to the significance of this policy and timing, this report is coming to Council for adoption.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as of some importance as the LAP prescribes a set of decisions made by Council and the wider community about the sale and supply of alcohol in its district.

OPTIONS Analysis

Two possible options for Council to consider are:

Option One – Status Quo retain current Local Alcohol Policy

That the current LAP is not reviewed until 2023/2024 and is still current.

Option Two – Review the Local Alcohol Policy

That the Council undertake a review of the Local Alcohol Policy and follow the prescribed process noted in Section 97 of the Sale and Supply of Alcohol Act 2012.

	Option 1 Status Quo – Retain current LAP	Option 2 Review current Local Alcohol Policy as per Section 97 of the Sale and Supply of Alcohol Act 2012
Financial and Operational Implications	There are no financial implications in this decision.	There would be financial implications due to special consultative process noted in the Local Government Act 2002. This would require legal counsel as part of this review.
Long Term Plan and Annual Plan Implications	There are no LTP or AP implications in this decision.	Budget would need to be included in the 2023/2024 Annual Plan.
Promotion or Achievement of Community Outcomes	The existing LAP currently achieves the promotion of strong communities and a proud and prosperous district.	A review of the LAP would ensure that the community was connected to local decision making.
Statutory Requirements	This policy meets the requirements of The Sale and Supply of Alcohol Act 2012.	This policy meets the requirements of The Sale and Supply of Alcohol Act 2012.
Consistency with Policies and Plans	The current LAP is consistent with our Governance Policy Framework which clearly articulates how governance policies sit in the bigger picture and informs the work programme for review of policies.	The current LAP is consistent with our Governance Policy Framework which clearly articulates how governance policies sit in the bigger picture and informs the work programme for review of policies.

Recommended Option

This report recommends Option One – Status Quo to retain the current Local Alcohol Policy for addressing the matter.

NEXT STEPS

To update the policy review programme to include a new review timeframe for the Local Alcohol Policy and to update the current Local Alcohol Policy to include the new review date.

RECOMMENDATION

a) That the current Local Alcohol Policy is retained, and that the Policy is not reviewed until 2023/2024.

Council Meeting Agenda

17 November 2021

7.7 Adoption of Class 4 Gambling and Board Venue Policy

File Number: COU1-1400

Author: Lisa Harrison, Customer Relationships and Experience Manager

Authoriser: Doug Tate, Group Manager Customer and Community Partnerships

Attachments: 1. Class 4 Gambling and Board Venue Policy Statement of Proposal ⇩

2. 1. Class 4 Gambling and Board Venue Policy Submission - Te Rangihaeata Oranga - Hawke's Bay Gambling Harm ⇩

3. 2. Class 4 Gambling and Board Venue Policy Submission - Grass Roots Trust ⇩

4. 2. Class 4 Gambling and Board Venue Policy Submission - Grass Roots Trust - Supporting Information ⇩

5. 2. Class 4 Gambling and Board Venue Policy Submission - Grass Roots Trust - Supporting Information - Approved Grants ⇩

6. 3. Class 4 Gambling and Board Venue Policy Submission - Kathryn Bayliss ⇩

PURPOSE

The matter for consideration by the Council is to present received submissions to the Class 4 Gambling and Board Venue Policy Statement of Proposal for Councils consideration, as part of considering the adoption of a reviewed Class 4 Gambling and Board Venue Policy.

RECOMMENDATION for consideration

That having considered all matters raised in the report:

1. That the submissions on the Class 4 Gambling and Board Venue Policy Statement of Proposal be received.

2. That Council thank submitters for taking the time to provide feedback on the Class 4 Gambling and Board Venue Policy Statement of Proposal.

And following deliberation:

3. That Option Two – the more restrictive option of the Class 4 Gambling and Board Venue Policy Statement of Proposal be adopted.

EXECUTIVE SUMMARY

Council is required by the Gambling Act 2003 and the Racing Industry Act 2020 to review and consult on a Class 4 Gambling and Board Venue Policy every three years. This review was due to be completed by February 2021. While there has been a delay in this review, the existing Policy still applies.

Council has the ability to set limits around the number of gaming machines, although Council cannot force any existing lawful venue to reduce gaming machine numbers currently in operation. Council can also limit the location of any new venues and may allow existing venues to relocate.

Over the last decade, the number of gaming machines and venues has reduced significantly, while total gaming machine profits has reduced moderately. A key decision for Council to consider was whether or not to ‘lock in’ the ratio of gaming machines to population.

The proposed policy also proposes to remove the ability to relocate a venue and proposes to retain the location requirements for any new venue in the future. While this will limit the ability for the existing venues to move to a different location (say into a new building), this will give certainty to residents on the location of this type of activity and encourage investment on these sites.

Council released a Statement of Proposal for consultation on 20^th September. This closed on 18^thOctober with three submissions being received. This report presents those submissions for Council’s deliberations and recommends option 2 for adoption.

BACKGROUND

Council is required by the Gambling Act 2003 and the Racing Industry Act 2020 to review and consult on a Class 4 Gambling and Board Venue Policy every three years. This should have been completed by February 2021 in accordance with best practice, however s102(6) of the Act allows for the existing Policy to continue to apply.

When reviewing a policy, the Council must have regard to the social impact of gambling in the district. Council also needs to consider the benefits to the community from the grant funding that is generated by the corporate societies that run the venues.

Class 4 gambling involves the use of an electronic gaming machines outside a casino. Gambling may only be conducted by a corporate society and the net proceeds can only be used for authorised purposes. The Council is required to have a Class 4 Venue Policy which:

· Must specify whether or not class 4 venues may be established in the district and if so, where they may be located: and

· May specify any restrictions on the maximum number of machines that may be operated at a class 4 venue.

· May consider whether to include a relocation policy. A relocation policy sets out if and when the Council will grant consent for an existing venue to transfer the gaming machines to a new venue (within the district) to which a class 4 venue licence applies. The idea is that a business can move into a different or new building without losing its existing rights to operate as a venue.

A society must apply for Council’s consent before it:

· Establishes new gaming machine venues; or

· Increases the number of machines that may be operated from existing venues (there are maximum numbers specified in the Act).

The Department of Internal Affairs administers the regulations that apply to the actual operation, administration, and funds distribution of the gaming machines.

All current licensed class 4 venues that have not ceased operations for more than a six-month period and were licensed on or before 17 October 2001 may have up to 18 gambling machines. All venues licensed after 17 October 2001 may only be granted a licence to have a maximum of 9 machines.

Central Hawke’s Bay District currently has two class 4 gambling venues, which were both licenced on or before 17 October 2001. This means that there can be a maximum 18 machines per premise. In April 2021, Air Rescue Services Limited applied to have an additional 7 gaming machines as they currently had 11. Due to the legislation, this was granted. While the current 2020 figures show 29 gaming machines in the district, this will increase to 36 in due to the additional 7 gaming machines being granted under the current legislation and policy in place.

Council’s Board Venue Policy, which is included in Councils combined Class 4 Gambling and Board Venue Policy, is required under Section 96 of the Racing Industry Act 2020 and must specify whether or not new board venues may be established in the district and, if so, where they may be located.

The Racing Industry Act 2020 is a new act but the requirements for a Council Board Venue Policy are the same as under the old Racing Act 2003. Demand for these venues has reduced significantly over time with most activity carried out online. Council only has jurisdiction over setting the numbers and locations of standalone TAB venues, not TAB outlets or agencies that are part of a business or bar.

On 20^th September 2021 Council released its Statement of Proposed. Council has now completed consultation with the community and key stakeholders on the Class 4 Gambling and Board Venue Policy with submissions closing on 18 October 2021. Three submissions have been received and this next section of the report outlines the submissions.

DISCUSSION

This section of the report outlines the basis of the Statement of the Proposal and the submissions received.

Class 4 Gambling Machines

There has been a steady and significant decline in the number of Class 4 Gambling Machine Venues and numbers over the last five to ten years.

These trends can be summarised as:

1. Machine numbers have fallen significantly from 76 in 2009 to 29 in 2020.

2. Venue numbers have also dropped from 8 in 2009 to 2 in 2020.

3. Overall gambling has not fallen significantly with total Gross Machine Profits dropping just 5.9% from the December Quarter 2009 to the December Quarter 2020. The reduction is a larger 24.7% if these numbers are adjusted for inflation (CPI increased 18.8% over the 11 years).

Class 4 gambling machines can only be located in a premise that has a liquor license. The general decline of these licensed establishments (due to changing societal trends and more stringent drink – drive rules) has resulted in less venues.

The conclusion is that the majority of people using the Class 4 gambling machines have moved to the remaining two venues in the district, however, there has been a reasonable decline in use of this form of gambling. This outcome is consistent with the intent of the current and past policies as Council has sought to reduce the community harm from Class 4 gambling machines.

The Statement of Proposal

The Class 4 Gambling and Board Venue Policy Statement of Proposal that went out for consultation provided three options. In preparing these options officers considered the following:

· Requirements of the Gambling Act 2003 and the Racing Industry Act 2020.

· The purpose of a Class 4 Gambling and Board Venue Policy

· The steady and significant decline in the number of Class 4 Gambling Machine Venues and numbers over the last 5 years

· The benefits from Class 4 Gambling

· The harm that Problem Gambling brings to the Community

Within the statement of proposal there were three options for consideration:

Option One – Status Quo

· Retain the cap at 300 residents per machine

· Relocations allowed

· Restrictions on any new/relocated venues to be >100metres from sensitive sites/activities

Option Two – More Restrictive

· Increase ratio of max number of machines to 500 per resident

· ‘Sinking lid’ policy

· Remove ability for relocations/mergers of machines

Option Three – Less Restrictive

· Remove or reduce cap ratio to <300 per resident

Submissions Received

Council has received three submissions regarding the Class 4 Gambling and Board Venue Policy Statement of Proposal. Of the three submissions received, two were in favour of option two, the more restrictive of the options.

As a reminder, the key aspects of options two includes:

· Increasing ratio of max number of machines to 500 per resident

· ‘Sinking lid’ policy

· Remove ability for relocations/mergers of machines

Submitter one, who is in favour of option two will be speaking regarding their submission.

Submitter three, who was also in favour of option two has made the following comments in relation to their submission but did not wish to speak:

Option two… “Prevents an increase in venues and machines. It helps minimise the harm caused by problem gambling. Gambling is irresponsible. Money would be better spent elsewhere”.

The final submitter (submitter two) was in favour of option one which is status quo, this includes:

· Retain the cap at 300 residents per machine

· Relocations allowed

· Restrictions on any new/relocated venues to be >100metres from sensitive sites/ activities.

Submitter two notes in their submission that:

“Council’s option two of the 2021 Statement of Proposal effectively introduces a Sinking Lid Policy and removes the ability for venues to relocate premise. There is no evidence that suggests a sinking lid policy reduces venue and gaming machines numbers, and that the removal of the policy provisions that allow venue relocations will reduce gambling”.

They also state in their submission that by removing the relocation provisions in the policy that this may pose a health and safety risk as operators do not have the option to move out of earthquake prone, dangerous or insanitary premises.

Attached are copies of the three submissions received.

None of the submissions suggest changes to the Options outlined in the Statement of Proposal.

Officers’ recommendation, supported by two of the three submissions received in relation to the Class 4 Gambling and Board Venue Policy Statement of Proposal, continues to be that Option Two is the recommended option.

RISK ASSESSMENT and mitigation

Council must (under the Act) have regard to the social impact of gambling in the district. There are very few residents registered as problem gamblers with the Hawkes Bay District Health Board. Harm from this form of gambling has reduced over the last decade as machine numbers and venues have fallen.

Growth in Class 4 gambling machines is likely to create addition harm to the most vulnerable in the community. To mitigate this, it is proposed that the residents to machine ratio cap on Class 4 gambling machine numbers be increased to reflect the current numbers. This will remove the ability of another venue to be established as it will only be permitted to have one or two more machines (as population increases the number allowed will marginally increase). Under the current policy ratio of 300 residents per machine an additional 21 machines could be established (two + additional venues).

FOUR WELLBEINGS

Social and Cultural

Gambling can have serious social and cultural impacts on our community, and this must be taken into account when reviewing this policy. However, there is also a positive contribution to the social wellbeing of our community from grant distributions to community organisations and residents of around $800,000 a year which a number of our community groups/organisations require in order to continue to operate in the community.

Economic

There is a potential impact on the economic wellbeing from the businesses involved in operating the gaming machines should they wish to relocate their business.

Delegations or authority

Council adopted, as required, the draft Policy and Statement of Proposal on the 26 August 2021. Consultation was completed between 20^th September – 18 October 2021.

We now present the submissions to Council for their consideration including the adoption of the Class 4 Gambling and Board Venue Policy, following consultation.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed. Council must adopt a Class 4 Gambling and Board Venue Policy as per the Gambling Act 2003 and the Racing Industry Act 2020. Council has completed the consultation period as per the Special Consultative Procedure under the Local Government Act 2002. Council has received three submissions, one from a gaming society, one from a member of the community and one from a gambling harm organisation.

This policy does not involve Council assets or result in additional operational requirements (after the final adoption of the Policy).

Controls on gaming machine numbers and locations are usually supported by local iwi.

The proposed policy settings continue the long-standing Council position of aiming to reduce the number of gaming machines and venues to reduce harm to the community.

OPTIONS Analysis

Officers have considered the options that Council has in reviewing this policy alongside the submissions received in relation to this matter.

The cap on gaming machine numbers is proposed to be tightened (the ratio to increase) to reflect the current actual numbers. The restrictions on location are proposed to be kept as per the current Policy, and it is proposed to remove the ability of venues to relocate.

Overall, Council is proposing to ‘lock in’ the gains made over the last decade and remove the possibility of gaming machine numbers increasing again.

Included below are the three options from the Class 4 Gambling and Board Venue Policy Statement of Proposal, as well as a fourth option which is to start again.

Policy Setting

Possible Benefits

Possible Negative Impacts

Option – Status Quo

· Retain the cap at 300 residents per machine

· Relocations allowed

· Restrictions on any new / relocated venues to be >100metres from sensitive sites / activities

Allowing more machines to operate would possibly increase the level of grant funding available and increase employment. The grant funding increases are likely to be modest as GMP per machine would likely fall.

Restrictions on location continues to mitigate potential harm.

Relocations allow businesses to invest in new premises that generally have better controls on gambling harm, and may provide safer premises in general (e.g. from earthquakes).

Would allow 2 new venues to be established with 9 machines each. This is not consistent with the legislation and Council policy of reducing gambling harm.

Relocations make it easier for existing premises to continue operating.

Option 2 – More restrictive

· Increase ratio of max number of machines to 500 per resident

· ‘Sinking lid’

· Remove ability for relocations / mergers

Increasing the current ratio Cap from 300 to 500 would reflect the current number of machines operating. Setting the number higher (say 600) would continue to seek further reductions in machine numbers. Either would lock in the recent reductions in venues and machines. On the current policy 2 new venues could be established with the full 9 machines each allowed.

A sinking lid provision would set a target of machines or the number of residents per machine that is more restrictive than the current numbers. Any reduction in machine numbers from closures or reductions would not be able to be replaced. This has a similar impact as increasing the ratio number above.

The current venue and machine numbers are low compared to the NZ average and many rural Districts.

Further reductions from the current numbers may:

· inhibit general hospitality growth.

· reduce grant funding for the community over time.

· cause further movement toward online gambling which is unregulated.

· Will not allow for new Class 4 gambling opportunities in District

Removing ability to relocate will remove options for existing businesses and could result in loss of employment / grants. Given only two venues are currently operating this could be seen as overly restrictive.

Option 3 – Less Restrictive

· Remove or reduce cap ratio to <300 per resident

Possible additional employment and community grants.

Would allow more than 2 new venues to be established with 9 machines each. This is not consistent with the legislation and Council policy of reducing gambling harm.

Grants are unlikely to increase much as evidenced by the modest reductions seen as venues and machines reduced over the last decade.

Option 4 – Start Again

Status Quo until a new policy was adopted.

Restrictions on location continues to mitigate potential harm.

Relocations allow businesses to invest in new premises that generally have better controls on gambling harm, and may provide safer premises in general (e.g. from earthquakes).

Status Quo until a new policy was adopted.

Would allow 2 new venues to be established with 9 machines each. This is not consistent with the legislation and Council policy of reducing gambling harm.

Relocations make it easier for existing premises to continue operating.

	Option 1 Status Quo	Option 2 More Restrictive	Option 3 Less Restrictive	Option 4 Start Again
Financial and Operational Implications	There are no obvious implications.	There are no obvious implications.	There are no obvious implications.	This would include consideration amount of officer’s time.
Long Term Plan and Annual Plan Implications	There are no obvious implications.	There are no obvious implications.	There are no obvious implications.	There are no obvious implications.
Promotion or Achievement of Community Outcomes	Status quo option supports the promotion of the economic wellbeing of the community but does not fully take into consideration the social and cultural impacts of the community.	More restrictive option supports the promotion of community outcomes by adequately ensuring community views are considered. This option balances the economic, social and cultural outcomes.	Less restrictive option does not support the promotion of community outcomes. While this option would potentially increase the economic wellbeing of the community it would negatively impact the social and cultural impacts of the community.	This would mean reconsulting with the external stakeholders and community about the possible options. The current policy would exist until such time as a new policy was adopted. This could have a negative impact on the social and cultural impacts of the community.
Statutory Requirements	Council is required to meet the requirements of the Gambling Act 2003 and the Racing Act 2020.		Council is required to meet the requirements of the Gambling Act 2003 and the Racing Act 2020.	Council is required to meet the requirements of the Gambling Act 2003 and the Racing Act 2020.
Consistency with Policies and Plans	Is consistent with the Central Hawke’s Bay District Council Governance Policy Framework but not consistent with our Community Wellbeing Strategy.	Wellbeing Strategy.	Is consistent with the Central Hawke’s Bay District Council Governance Policy Framework but not consistent with our Community Wellbeing Strategy.	Is consistent with the Central Hawke’s Bay District Council Governance Policy Framework and Community.

Recommended Option

This report recommends option two – more restrictive for addressing the matter.

NEXT STEPS

That if the recommendations are adopted below, that the policy be updated and released to the public via our website.

RECOMMENDATION

1. That the submissions on the Class 4 Gambling and Board Venue Policy Statement of Proposal be received.

2. That Council thank submitters for taking the time to provide feedback on the Class 4 Gambling and Board Venue Policy Statement of Proposal.

And following deliberation:

3. That Option Two – the more restrictive option of the Class 4 Gambling and Board Venue Policy Statement of Proposal be adopted.

Council Meeting Agenda

17 November 2021

7.8 Financial Reporting - First Quarter 2021/2022

File Number: COU1-1400

Author: Brent Chamberlain, Acting Chief Financial Officer

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. September 2021 Financial Reporting Pack ⇩

PURPOSE

The purpose of this report is to provide the Committee with a summary of Council's financial performance and highlight the key financials for the first three months of 2021/22 financial year.

Recommendation

That, having considered all matters raised in the report, the report on Council's financial performance for the first three months of the 2021/22 financial year be noted.

significance and engagement

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

DISCUSSION

The aim of this report is to provide Council with a summary of the financial performance of Council and highlights the key trends for the first three months for the year ended 30 June 2022.

The report contains a Financial Overview for Whole of Council and the Groups of Activities.

Budget Commentary

At a high level, operating revenue is $3.2m ahead of budget at September 2021 ($11.4m achieved versus $8.2m budget).

This difference is largely caused by unbudgeted external funding - 3 Waters Reform $0.7m operational, Economic Development Work Creation $1.5m, He Ringa Whanau Ora $0.2m, and Nga Tipuna $0.3m.

The balance is driven by additional fees and charges and is volume related. For example, Council continues to experience a high demand for Resource Consents and Building Consents and this revenue is $180k up on budget.

Solid Waste revenue is also up by $276k, but this is mostly internal revenue relating to the disposal of the solids from the wastewater desludging program.

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Just like revenue, operating costs are also up on budget by $3.2m (actually spent $11.4m versus a budget of $8.2m).

The unbudgeted revenue mentioned above, also comes with unbudgeted costs - $1.3m of Work Creation payments, 3 Waters Reform $0.8m, Solid Waste $0.4m (carbon credits), Consenting (outsourcing costs $0.2m), and Nga Ara Tipuna $0.2m.

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Council has funding gap appearing in its capital budget caused by a Development Contribution timing issue. While Council changed its Development Contribution policy in June 2021 and significantly increased its levy payable at the time, Development Contributions only become payable at the time of the issuing of the 224 notice (when the development is ready for inhabitation – up to 18 months after the consent is requested), but the levy is based on the levy applicable at the time the consent was requested. Therefore the majority of the levies being invoiced and collected in 2021/22 will still be at the older, lower rate. This will cause a 12-18 month timing gap between budgets and actuals which will need to be covering using either bridging finance or slowing down the construction budgets to match the timing of the receipts. Officers will continue to monitor this situation.

Currently Council is behind budget in capital spend, partly in water renewals but predominately in the delivery of the PGF Route 52 project. Both these items are timing related and should correct themselves by year end.

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Cash Position

At the end of February Council was holding $8.5m in its call account and a further $4.5m in term deposits meaning it has plenty of funding available to fund its capital program for the months ahead.

Part of the reason Council was holding so much cash in September was due to the quarterly rates that were received at the end of August, and a term deposit that had just matured at the end of the month.

Debtors

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Description automatically generated Council Officers continue to work with our debtors to ensure collection. The quarter one rates due date fell in the middle of New Zealand’s second country wide Covid lockdown which caused a few issues for those that like to pay their bills over the counter.

The Non Rates Debtors from September 2021 included large amounts owing from MBIE and Tararua District Council (Economic Stimulus and Nga Ara Tipuna funding $351k and landfill charges $116k).

Treasury Policy

The table below shows that Council is compliant with both its existing treasury policy, and its proposed treasury policy contained in the draft Long Term Plan.

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Comprehensive Income and Expenditure Statement

The budget commentary above is all based on the FIS (Funding Impact Statement) view of Councils finances (as required by the Local Government Act 2002).

When you display the same data using IFRS (International Financial Reporting Standards – standard accounting reporting format) then Councils revenue is inflated by capital grants (such as NZTA, PGF, and MBIE funding). For this financial period this includes the NZTA funding assistance and the 3 Waters Reform monies.

Offsetting this is the disclosure of depreciation ($3.0m) as a cost.

By including this external funding, Council is showing a $4.2m Comprehensive Income Surplus as at 30 September 2021.

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 manage the finances of Council.

RECOMMENDATION

That, having considered all matters raised in the report, the report on Council's financial performance for the first three months of the 2021/22 financial year be noted.

Council Meeting Agenda

17 November 2021

7.9 Annual Plan Direction Endorsement

File Number: COU1-1400

Author: Brent Chamberlain, Chief Financial Officer

Authoriser: Monique Davidson, Chief Executive

Attachments: Nil

Recommendation

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

b) That Council endorses the direction taken in preparing the Draft Annual Plan 2022-23, and endorse the Levels Services set out in the Long Term Plan 2021-2031.

c) That in endorsing the direction, Council note that it is unlikely that the Draft Annual Plan 2022 – 2023 will trigger significance therefore formal consultation won’t be recommended, however community engagement will be.

PURPOSE

The purpose of this paper is to seek endorsement from Council on the direction of travel in regards to the preparation of the 2022/23 budget.

significance and engagement

This report is provided for information purposes only and has been assessed as not significant.

BACKGROUND

Officers are currently preparing the proposed annual plan for 2022/23. This is year 2 of the Long Term Plan 2021-2031. This paper is a check in to get endorsement on the direction of travel in regards to the preparation of this budget.

DISCUSSION

In June 2021 Council adopted the Long Term Plan 2021-2031. Year 1 of this plan is the current year’s budget.

Year 2 of this plan is the starting point for the annual plan covering the 2022-23 financial year. If the annual plan for 2022-23 contained no variation from the Long Term Plan, the expected rates increase would be 6.8%.

Officers have prepared the Annual Plan budgets on the basis of maintaining the integrity and significant work that went into developing the Long Term Plan, and will be recommending to Council the Annual Plan budgets at its Council meeting on the 9 December 2021. To date budget preparation is in line with Year 2 of the Long Term Plan with an additional $183k recommended increase to total rates requirement.

A couple of things have changed (or could potentially change) since this Long Term Plan was adopted.

1. Proposed Review of the Hawkes Bay Regional Economic Development Structure

This proposal is yet to be confirmed by the five Hawkes Bay Councils, but if adopted in its current format would add a new budget requirement on Central Hawkes Bay District Council of $130k. This activity is funded through the Uniform Annual Charge and would add approximately $19 per property.

2. Sharing of Local Body Election Costs

The cost of running the Local Body Elections (due to be held in October 2022) is borne by Central Hawkes Bay District Council, but because the same election also covers the Hawkes Bay Regional Council and District Health Board elections part of the costs are recovered from these other two parties. However Central Government has recently announced the disbandment of the District Health Boards so they will no longer be party to the election process meaning the cost recovery will no longer occur. This will see the loss of income to Central Hawkes Bay District Council of $26k.

3. Recycling Drop Off Centres

In the Long Term Plan the kerbside recycling collection areas were extended to include Takapau, Otāne, Ongaonga, and Tikokino. The flipside was that the Recycling Drop Off Centres were to be removed, and that a rural recycling trailer service was to be introduced to service the rural community.

While the kerbside service and rural trailer service has been introduced, the drop off centres haven’t been removed yet – and based on public feedback may be retained. Council needs to determine the level of service it wishes to offer, and size its budget to match. Officers are recommending that the drop off centres are retained.

4. Inflationary Increases

Council, like every other business in New Zealand, is facing higher costs due to inflation and supply chain issues, low unemployment creating wage pressures, and increasing interest rates.

Assuming a worst case scenario, and all the items above are factored in the Annual Plan 2022-23 officers would be proposing a 7.6% rate increase rather than a 6.8% as detailed in the Long Term Plan.

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Officers are asking for Council to endorse the proposed Annual Plan direction detailed above, subject to further decisions by Council on the Proposed Review of the Hawkes Bay Regional Economic Development Structure and the future of Recycling Drop Off Centres. Both these decisions will be made at the Council meeting on the 9^th December 2021.

In addition to the matters raised above, there are two other matters which don’t affect the quantum of the budget as such, but will have an implication on the distribution of the rates the budget require:

1. Revaluation of Central Hawkes Bay properties by Quotable Value

Due to covid and the subsequent lockdowns in Auckland the work program for this revaluation has been delayed. At this stage we expect the draft property values to be with the Office of the Valuer General in late January, with the new valuations being notified in early February.

Early indications are that urban properties (particularly in the northern part of the region) will increase in value by a higher proportion than rural properties. This will have the impact of shifting some of the general and land transport rates from rural to urban ratepayers. The large majority of these urban rate payers are also our connected (to 3 waters) ratepayers who are funding the waste water upgrades.

2. Council Lead Rating Review

As part of adopting the Long Term Plan there was a desire from the Council table to revisit the general and land transport rate to better understand how this was being borne across the district, and its relationship with the Uniform Annual Charge.

Officers have previously advised to hold off undertaking this review until the new rating base (post revaluation) is understood as this will impact the distribution of these rate types.

Given the delay in the revaluation process, it will likely be mid-February 2022 before the full impact of the revaluation can be fully modelled and understood by Council.

The rates strike needs to happen pre 30^th June 2022, this leaves little time to propose a change to the Revenue and Financing Policy, for the public to understand the impact of the revaluation change on their property without the proposed change, publicly consult on the proposed change, take feedback and consider this, and make a decision and implement that decision in time for the rates strike.

The decision of how to distribute the burden of the rates should be independent to the decision of how much rates are required to be collected (the setting of the budget). Options on how to navigate the complex timing of Revaluation and a Rates Review will be workshopped with Council ahead of the 9December Council meeting.

While Officers recognise that subsequent workshops and discussions on the drivers of the Annual Plan 2022/2023 and in particular the drivers behind current budgets and proposed budgets for next year, we are at a stage where we require some guidance so we can best plan the next 6 months.

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 refining the draft Annual Plan for 2022-23, with the expectation that Officers will present Draft Annual Plan budgets for Council consideration on the 9^th December 2021. This is the same meeting in which Council will consider decisions regarding the Proposed Review of the Hawkes Bay Regional Economic Development Structure and the future of Recycling Drop Off Centres, and any other changes requested from the Council table.

RECOMMENDATION

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

b) That Council endorses the direction taken in preparing the Draft Annual Plan 2022-23, and endorse the Levels Services set out in the Long Term Plan 2021-2031.

Council Meeting Agenda

17 November 2021

7.11 Amendment to Committee Terms of Reference

File Number: COU1-1400

Author: Bridget Gibson, Governance and Support Officer

Authoriser: Monique Davidson, Chief Executive

Attachments: 1. Committee Terms of Reference 2019-2022 - Proposed Amendments ⇩

2. CHBDC Standing Orders - Adopted 14th November 2019 ⇩

PURPOSE

The matter for consideration is the adoption of amendments to the Committee Terms of Reference 2019-2022 specifically outlining the quorum of Council and standing Committees.

RECOMMENDATION for consideration

That having considered all matters raised in the report the proposed amendments to the Committee Terms of Reference 2019-2022 establishing Committee quorum as:

a) Half of the members physically present, where the number of members (including vacancies) is even; and

b) A majority of the members physically present, where the number of members (including vacancies) is odd.

be adopted.

EXECUTIVE SUMMARY

Within the Committee Terms of Reference 2019-2022 document, amendments are proposed to the terms for the Strategy and Wellbeing Committee, Finance and Infrastructure Committee, and the Risk and Assurance Committee to specify quorum as:

a) Half of the members physically present, where the number of members (including vacancies) is even; and

b) A majority of the members physically present, where the number of members (including vacancies) is odd.

BACKGROUND

Following each triennial election, the Mayor establishes the committee structure for Council, and the Council adopts the Committee Terms of Reference by which Council and Committee abide. The current Committee Terms of Reference 2019-2022 states that Council and Committee quorum is determined by Standing Orders (adopted 2019). However, on inspection it is apparent that the Council’s Standing Orders are silent on Committee quorum, and only refer to a Council quorum or a subcommittee quorum. According to Standing Orders, Council’s subcommittee quorum is at least two people, whereas Council quorum is:

a) Half of the members physically present, where the number of members (including vacancies) is even; and

b) A majority of the members physically present, where the number of members (including vacancies) is odd.

The intention is that Council’s standing Committees hold the same quorum as Council. Therefore, the appropriate amendments have been made to the Committee Terms of Reference 2019-2022 for Council’s consideration.

DISCUSSION

This report proposes amendment to the Committee Terms of Reference 2019-2022 document. Such amendment requires the approval of, and adoption by the Council.

RISK ASSESSMENT and mitigation

There is no risk associated with this decision.

FOUR WELLBEINGS

This report aligns with the delivery of the four wellbeings by specifying and clearly communicating quorum requirements of Council and Committee in the Committee Terms of Reference, whereby quorum of Council and Committee is prescribed to protect the integrity of the Council’s decision-making processes, in the best interests of the Council and the District.

Delegations or authority

The Council has delegation and authority to resolve that the proposed amendments to the Committee Terms of Reference be made.

sIGNIFICANCE AND ENGAGEMENT

In accordance with the Council's Significance and Engagement Policy, this matter has been assessed as having low significance therefore engagement with community is not required.

OPTIONS Analysis

Council can opt to:

1) Adopt the proposed amendments to the Committee Terms of Reference 2019-2022.

2) Direct that further amendment be made to the Committee Terms of Reference 2019-2022 prior to adoption.

3) Reject the proposed amendments to the Committee Terms of Reference 2019-2022.

	Option 1 Adopt the proposed amendments to the Committee Terms of Reference 2019-2022.	Option 2 Direct that further amendment be made to the Committee Terms of Reference 2019-2022 prior to adoption.	Option 3 Reject the proposed amendments to the Committee Terms of Reference 2019-2022.
Financial and Operational Implications	There are no financial or operational implications	There are no financial or operational implications	There are no financial or operational implications
Long Term Plan and Annual Plan Implications	This report has no implication on the Long Term Plan or Annual Plan.	This report has no implication on the Long Term Plan or Annual Plan.	This report has no implication on the Long Term Plan or Annual Plan.
Promotion or Achievement of Community Outcomes	Protect the integrity of the Council’s decision-making processes, in the best interests of the Council and the District.	Protect the integrity of the Council’s decision-making processes, in the best interests of the Council and the District.	Quorum is not set or defined for Council’s Committees within the Committee Terms of Reference at the risk of negatively impacting the integrity of Council’s decision-making processes.
Statutory Requirements	Local Government Act 2002: Schedule 7: Part 1: 23 - Quorum of councils and committees	Local Government Act 2002: Schedule 7: Part 1: 23 - Quorum of councils and committees	Local Government Act 2002: Schedule 7: Part 1: 23 - Quorum of councils and committees
Consistency with Policies and Plans	Consistent with Central Hawke’s Bay District Governance policies and plans.	Consistent with Central Hawke’s Bay District Governance policies and plans.	Risk of inconsistency with Central Hawke’s Bay District Governance policies and plans.

Recommended Option

This report recommends option 1) adopt the proposed amendments to the Committee Terms of Reference 209-2022 for addressing the matter.

NEXT STEPS

The amendments to the document will be finalised and the amended version (1.4) will replace the outdated version (1.3). The updated Committee Terms of Reference 2019-2022 document will be uploaded to the CHBDC webpage for public perusal. Subsequent to adoption, the quorum for Committees as defined in the Committee Terms of Reference 2019-2022 will be effective immediately.

RECOMMENDATION

That having considered all matters raised in the report:

a) The proposed amendments to the Committee Terms of Reference 2019-2022 establishing Committee quorum as:

a) Half of the members physically present, where the number of members (including vacancies) is even; and

b) A majority of the members physically present, where the number of members (including vacancies) is odd.

be adopted.

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