1                                                     8 July 2021

HUTT CITY COUNCIL

 

Komiti Iti Ahumoni I Tūraru |Audit and Risk Subcommittee

 

Minutes of a meeting held in the Council Chambers, 2nd Floor, 30 Laings Road,
Lower Hutt on

Thursday 8 July 2021 commencing at 2.00pm

 

 

 PRESENT:

Ms S Tindal (Independent Chair)

Mayor C Barry (Deputy Chair)

 

Cr A Mitchell

Cr S Rasheed

 

Cr N Shaw

 

 

APOLOGIES:                  Cr S Edwards and Cr J Briggs

 

IN ATTENDANCE:       Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities

Mr M Boggs, Director of Strategy and Engagement

Mr K Puketapu-Dentice, Director Economy and Development (part meeting)

Ms J Livschitz, Chief Financial Officer

Mr P Baker, Acting Chief Digital Officer

Ms E Davids, Risk and Assurance Manager

Mr D Scott-Jones, Solicitor

Mr B Hodgins, Strategic Advisor (part meeting)

Mr T Biggin, Project Manager – Riverlink (part meeting)

Mr D Newth, Financial Accounting Manager (part meeting)

Mr A Yip, Head of Enterprise Portfolio Management Office (EPMO) (part meeting)

Mr G Herman, Strategic Programmes Manager (part meeting)

Ms T Lealofi, Democracy Advisor

 

 

 

PUBLIC BUSINESS

 

1.       APOLOGIES 

Resolved: (Ms Tindal/Cr Mitchell)                                        Minute No. ARSC 21301

"That the apology received from Cr Edwards be accepted and leave of absence be granted.”

 

          PRECEDENCE OF BUSINESS

In accordance with Standing Order 10.4, the Chair accorded precedence to Item 5: RiverLink Update and Item 6: Eastern Bays Shared Path Project Update.

These items are recorded in the order which they are listed on the Order Paper.

2.       PUBLIC COMMENT

          Comments are recorded under the item to which they relate.

3.       CONFLICT OF INTEREST DECLARATIONS         

          There were no conflicts of interest.

4.

Kerbside Rubbish and Recycling Services Implementation Update (21/885)

Report No. ARSC2021/3/144 by the Strategic Advisor

 

Speaking under public comment, Mr M Shierlaw expressed concern about the rubbish and recycling current progress. He noted the Risk Assessment was inadequate due to the recycling bins not being delivered in a timely manner. He said the issue should had been rated medium or high in accordance with the Risk Assessment.

 

The Chief Executive made reference to the Risk Assessment report. She said the issue was quantified as a medium risk. She advised six Council rubbish bags were provided for each of the affected households. She explained the logistics operations was the significant part of the process.

The Strategic Advisor elaborated on the report.  He advised Council was in the phase of issue management rather than risk management.  He noted the Contingency Plan in place for the rubbish and recycling services was operating well. He said Council rubbish bags were provided to the affected households due to the shipment delay. He outlined the challenges since the distribution of the recycling bins. He noted that additional staff were employed to assist with the high volume of queries.

In response to questions from members, the Strategic Advisor advised that adequate resources were in place to deal with affected households who had not received their bins. He said this was high level priority.  He also advised the system was working well. He highlighted that Waste Management was collecting all rubbish and recycling bins from different providers.

 

Resolved: (Ms Tindal /Cr Mitchell)                                          Minute No. ARSC 21302

“That the Subcommittee notes and receives the report.”

 

5.

RiverLink Update (21/944)

Report No. ARSC2021/3/145 by the Project Manager, Riverlink

 

The Project Manager - Riverlink elaborated on the report.

The Chair drew attention to her declared that she is the Deputy Chair of the New Zealand Infrastructure Commission.

The Director, Economy and Development advised that mana whenua was on the Project Partner Board.

In response to a question from a member, the Project Manager - Riverlink advised that funding was secured for the project. He noted that project members were co-ordinating with other projects members in the region in regard to resources.

The Director, Economy and Development added that the construction industry was at capacity. He highlighted that it was a significant risk for the project.

Mayor Barry suggested officers review other Council’s Long Term Plan projects. He advised it would be beneficial to have an overview of what was on the operator’s radar.

The Chair suggested officers to review the pipeline section published on the New Zealand Infrastructure Commission’s website in accordance with Mayor Barry’s suggestion.

In response to a question from a member in regard to property purchases, the Project Manager - Riverlink noted the acquisition process on Daly Street. He said the parties were in discussion regarding the evaluation of the site. The Director, Economy and Development added the tribunal process was in association with the acquisition process of the site, as this acquired the properties under the Public Works Act. He further added there was a particular process to undertake. He noted of the tribunal involvement if property owners had an issue with the value of purchase for its properties. He noted the Council was in the middle of the tribunal process, and confirmed it was  heading towards a positive outcome.

 

Resolved: (Ms Tindal /Cr Rasheed)                                          Minute No. ARSC 21303

“That the Subcommittee:

(1)   receives and notes the information contained in the report;

(2)   notes the Project Risk Register attached as Appendix 1 to the report; and

(3)   notes the increased Long Term Plan budgets approved by Council. This process has seen an increase in both expenditure of $138.4M and revenue of $43.5M. This takes the total net budget (total budget minus revenue) to $94.9M which is unchanged from what was consulted on in the draft Long Term Plan.”

 

6.

Eastern Bays Shared Path Project Update (21/927)

Report No. ARSC2021/3/146 by the Director, Economy and Development.

 

The Director, Economy and Development elaborated on the report. He highlighted that the project provided further resilience to the Eastern Bays community in regard to the construction of the seawall. He advised that the Memorandum of Understanding had been signed off by Waka Kotahi. He said Waka Kotahi and Council would work collaboratively on a summary report for Te Ara Tupua Alliance Board for consideration in July 2021. He further advised that he would work alongside with Council’s Chief Legal Officer on an internal process if Council agreed to form an alliance with Te Ara Tupua Alliance.

In response to a question from a member, the Director, Economy and Development outlined the risks of the project. He noted micro-mobility and active transport were considered a priority for Waka Kotahi.

 

Resolved: (Ms Tindal /Cr Shaw)                                             Minute No. ARSC 21304

“That the Subcommittee:

(1)   receives and notes the information contained in the report;

(2)   notes the Procurement Programme attached as Appendix 2 to the report;

(3)   notes the updated Project Risk Register (attached as Appendix 1 to the report); and

(4)   notes that $29M of funding has been included in Council’s Long Term Plan 2021-2031.”

For the reason that the report is consistent with Council policies and processes around project management.

 

7.

External Audit Update - Hutt City Council (21/879)

Report No. ARSC2021/3/160 by the Financial Accounting Manager

 

Mr Andrew Clark, Audit Director from Audit New Zealand was in attendance for the item.

Mr Clark noted the external audit for the Group Annual Report and the Long Term Plan were completed. He advised Audit New Zealand was working on a report to summarise the completion of the audit plans. 

 

Resolved: (Ms Tindal /Cr Mitchell)                                          Minute No. ARSC 21305

“That the Subcommittee notes the Audit New Zealand audit plan for the Group Annual Report for the year ended 30 June 2021, attached as Appendix 1 to the report.”

 

8.

Sensitive expenditure disclosures (21/909)

Report No. ARSC2021/3/83 by the Financial Accounting Manager

 

The Financial Accounting Manager elaborated on the report.

 

Resolved: (Ms Tindal /Cr Rasheed)                                         Minute No. ARSC 21306

“That the Subcommittee:

(1) notes and receives the report; and

(2) notes the Sensitive Expenditure disclosure information attached as Appendix 1 to the   report.”

9.

Insurance renewal update (21/937)

Report No. ARSC2021/3/147 by the Financial Accounting Manager

 

Mr Brett O’Malley and Mr Tony Owen from AON were in attendance for the item.

Mr Owen gave a brief update on the insurance market. He said there were challenges within the property market and noted the significant effect on the global markets due to the emergence of Covid.

Mr O’Malley noted the number of global attacks by cyber criminals. He outlined recent cyber-crime activities within New Zealand and around the globe. He said insurers were being advised to make claims under the Cyber Policy. He advised that the Privacy Act was updated in 2020. He gave a brief update on Council’s insurance programme.

The Chair noted the information was beneficial as the market had become increasingly challenging.

In response to a question from a member, Mr Owen said the value of assets was in separable to the insurance value. He noted the arrangement with central governement and local government. He said Council was responsible for funding 40% of the natural disaster loss and central government would cover the remaining 60% of the underground infrastructure.

 

Resolved: (Ms Tindal /Cr Mitchell)                                Minute No. ARSC 21307

“That the Subcommittee:

(1)   notes that Council has successfully renewed its Property and Infrastructure insurance programme for policies commencing 1 May 2021 for a 12 month term;

(2)   notes the remaining policies, renewed on 1 November 2021 for a 12 month term;

(3)   notes the budget of $3.87M has been approved in the Long Term Plan for the 2021/22 year; and

(4)   notes officers will obtain insurance cover for Petone Wharf after completion of its restoration work.”

 

10.     Information Items

a)

Naenae Projects Update (21/943)

Memorandum dated 16 June 2021 by the Project Manager (Naenae)

 

The Director, Neighbourhood and Communities elaborated on the memorandum.  She highlighted the ongoing discussion with Crown Infrastructure partners in regard to adapting the work programme for an earlier start date for the construction of Naenae Pool. She said there were discussions occurring to minimise the design process.

In response to a question from a member, the Director, Neighbourhood and Communities advised the project management group at AECOM was keeping track of other projects that were funded by Crown Infrastructure Partners.

 

Resolved: (Ms Tindal/Cr Shaw)                                    Minute No. ARSC 21308

“That the Subcommittee receives and notes the information.”

 

b)

Strategic Change Programme Update (21/913)

Memorandum dated 28 June 2021 by the Strategic Programmes Manager

 

The Strategic Programmes Manager elaborated on the memorandum. He highlighted that the programme plan was tracking to be completed in time. He said ongoing engagement with project managers was to maxmise independency between the projects.

 

Resolved: (Ms Tindal/Cr Shaw)                                   Minute No. ARSC 21309

“That the Subcommittee notes and receives the memorandum.”

 

c)

Managing COVID-19 Risks (21/800)

Memorandum dated 21 May 2021 by the Risk and Assurance Manager

 

The Risk and Assurance Manager elaborated on the memorandum.

The Chief Executive noted the recent change of alert levels in the Wellington region. She advised that a new Emergency Management Manager had been employed by Council. She noted the improvements that were identified had strengthened the current process.

 

Resolved: (Ms Tindal/Cr Shaw)                                    Minute No. ARSC 21310

“That the Subcommittee:

(1)  notes and receives the memorandum;

 

(2)  notes that officers will update members during the meeting if there are any changes to the report;

(3)  considers how often it would like to receive this report. Our approach to responding to COVID-19 risks is now part of everyday business. Reporting on COVID-19 risks is part of our risk and issues reporting; and

(4)  notes that Managing Covid Risks reporting be incorporated with the Reporting and Review of the Risk Register on a quarterly basis from September 2021.”

d)

Audit and Risk Work Programme (21/723)

Report No. ARSC2021/3/84 by the Democracy Advisor

 

Resolved: (Ms Tindal /Cr Rasheed)                               Minute No. ARSC 21311

“That the work programme be received and noted.”

11.     QUESTIONS   

          There were no questions.

12.     EXCLUSION OF THE PUBLIC

Resolved:  (Ms Tindal/Mayor Barry)                                      Minute No. ARSC 21312

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

13.     Further Information on Agreement to Lease Events Centre and Develop a Hotel (20/432); and

14.     Cyber Security

The general subject 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(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

(A)

(B)

(C)

 

 

 

General subject of the matter to be considered.

Reason for passing this resolution in relation to each matter.

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

 

 

 

Further Information on Agreement to Lease Events Centre and Develop a Hotel.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cyber Security

 

 

 

 

The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities (s7(2)(h)).

The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) (s7(2)(i)).

 

The withholding of

the information is

necessary to prevent

the disclosure or use

of official

information for

improper gain or

improper

advantage.s7(2)(j)

That 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 exist.

 

 

 

 

 

 

 

 

 

 

That 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 exist.

 

This resolution is made in reliance on section 48(1) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as specified in Column (B) above.”

Resolved(Ms Tindal/Cr Shaw)                                            Minute No. ARSC 21313

“That Mr Kevin Podmore from Cambridge Asset Management Limited be permitted to remain after the public section of the meeting for item 13 as he has knowledge of the matters that will assist Council in relation to the item.”

 

 

There being no further business the Chair declared the meeting closed at 3.09pm.  The non-public portion of the meeting closed at 3.49pm.

 

 

 

 

S Tindal

CHAIR

 

 

 

 

 

 

 

 

 

CONFIRMED as a true and correct record

Dated this 10th day of August 2021