1                                         11 November 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 11 November 2021 commencing at 1.00pm

 

 

PRESENT:

Ms S Tindal (Independent Chair)

Mayor C Barry (Deputy Chair)

 

Cr J Briggs (via audio-visual link)

Cr S Edwards

 

Cr A Mitchell

Cr S Rasheed

 

Cr N Shaw

 

 

APOLOGIES:                  There were no apologies.

 

IN ATTENDANCE:        Ms J Miller, Chief Executive

Ms A Blackshaw, Director Neighbourhoods and Communities

Mr K Puketapu-Dentice, Director Economy and Development  

Ms J Livschitz, Group Chief Financial Officer

Ms E Davids, Principal – Portfolio Performance

Mr B Cato, Chief Legal Officer (part meeting)

Ms C Ellis, Head of the Chief Executive’s Office (part meeting)

Mr D Newth, Financial Accounting Manager (part meeting)

Mr M de Boer, Principal Advisor Strategic Planning and Business (part meeting)

Ms N Reddy, Risk and Assurance Manager

Mr A Quinn, Project Manager (Naenae) (part meeting)

Ms H Stringer, Financial Transaction Services Manager

Mr A Marsh, Asset Manager Parks (part meeting)

Ms A Laban, Head of Assets and Facilities Management (part meeting)

Ms K Glanville, Senior Democracy Advisor (part meeting)

Ms T Lealofi, Democracy Advisor

 

 

PUBLIC BUSINESS

 

1.       APOLOGIES

There were no apologies.

          Cr Shaw left the meeting at 1.02pm.

2.       PUBLIC COMMENT

There was no public comment.

3.       CONFLICT OF INTEREST DECLARATIONS   

          There were no conflicts of interest declarations.

          MINOR ITEM NOT ON THE AGENDA

         

          COVID-19 UPDATE

         

          The Chief Executive provided an update on COVID-19, attached as pages 9 to 10 of the minutes.

 

4.

Update on Petone Wharf Refurbishment Project (21/1721)

Report No. ARSC2021/5/246 by the Reserves Asset Manager

 

The Director Neighbourhoods and Communities elaborated on the report. She highlighted that the construction work would commence in 2022. She advised that due to the delay of the construction work, changes to the budget were required. She noted a report would be considered in December 2021 as part of the Annual Plan considerations.

In response to a question from a member, the Director Neighbourhoods and Communities said Council’s plan was to demolish the outer end of the wharf and refurbish the remaining section of the wharf. She added officers would report on any changes to the refurbishment project to Council if required.

Cr Shaw rejoined the meeting at 1.15pm.

In response to a question from a member, the Director Neighbourhoods and Communities said she was not aware of any damage to the wharf. She advised officers would monitor any deterioration and/or damage due to poor weather conditions going forward.

 

Resolved:    (Ms Tindal/Cr Mitchell)                                         Minute No. ARSC 21501

“That the Subcommittee:

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

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

(3)   notes that a Conservation Plan is being produced for the Petone Wharf to provide greater clarity on heritage values; and

(4)   notes the financial implications and changes to the budget spread.”

 

5.

Eastern Bays Shared Path Project Update (21/1738)

Report No. ARSC2021/5/22 by the Head of Transport

 

The Director Economy and Development elaborated on the report.

 

Resolved:   (Ms Tindal/Cr Edwards)                                   Minute No. ARSC 21502

“That the Subcommittee:

 

(1)   notes the alliance delivery model for the Eastern Bays Shared Path Project (the Project) construction;

(2)   notes the increasing construction costs to deliver the Project and that early discussions are on-going with Crown Infrastructure Partners and Waka Kōtahi to seek additional funding;

(3)   notes the project budgets (both capital expenditure and revenue) approved by Council in the Long-Term Plan 2021-2031 following public consultation, as detailed in the “Financial Considerations” section outlined in the officer’s report;

(4)   notes that Council will be required to approve any increase in funding requirements which exceeds the Long-Term Plan 2021-2031 budgeted position; and

(5)   notes that officers will report back to the Long Term Plan/Annual Plan Subcommittee on
16 December 2021 on the updated project cost estimates and advice on the funding options.”

 

6.

RiverLink Update (21/1740)

Report No. ARSC2021/5/247 by the Project Manager Riverlink

 

The Director Economy and Development elaborated on the report.

In response to a question from a member regarding the delay of the proposed changes in the consenting pathway, the Director Economy and Development said he would provide an update to the Subcommittee. He advised the consent hearing would commence in March 2022. He said the decision from the consent hearing would determine the timeline for the project’s milestones.

 

Resolved:  (Ms Tindal/Cr Rasheed)                                           Minute No. ARSC 21503

“That the Subcommittee:

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

(2)   notes the Project Risk Register attached as Appendix 1 to the report.”

 

7.

Holidays Act Remediation Project (21/1730)

Report No. ARSC2021/5/248 by the Finance Project Manager

 

The Group Chief Financial Officer elaborated on the report. She said a procurement process had been undertaken. She advised a business case had been completed and would require sign-off from the Chief Executive.

 

Resolved:  (Ms Tindal/Cr Briggs)                                        Minute No. ARSC 21504

“That the Subcommittee:

(1)   receives and notes the report; and

(2)   notes that the next project update to the Subcommittee will be on 17 February 2022.”

 

8.

Sensitive Expenditure Disclosures (21/1714)

Report No. ARSC2021/5/135 by the Financial Accounting Manager

 

The Financial Accounting Manager elaborated on the report.

 

Resolved: (Ms Tindal/Cr Shaw)                                               Minute No. ARSC 21505

“That the Subcommittee:

(1)   receives and notes the report; and

(2)   notes the Sensitive Expenditure disclosure information attached as Appendix 1: June 2021 quarter and Appendix 2: September 2021 quarter to the report.”

 

9.

Hutt City Council Group Annual Report 2020/21 (21/1624)

Report No. ARSC2021/5/249 by the Principal Advisor, Strategic and Business Planning

 

The Principal Advisor, Strategic and Business Planning elaborated on the report.

The Group Chief Financial Officer advised the Seaview Marina Limited and Urban Plus Limited audits were almost complete. She said the statutory deadline for Council Control Organisations was the end of November 2021. She advised the Hutt City Community Facilities Trust audit had only been conducted recently. She noted a Group Annual Report would be reported to Council in December 2021. She said that following the latest Three Waters Reform decision by central government, an updated report would be considered by the Policy, Finance and Strategy Committee in November 2021.

The Chair added that the Three Waters Reform had impacted on other Councils. She noted further work would need to be undertaken between Local Government New Zealand and Audit NZ. She commended the officers for their work due to the tight deadline for reports to be completed.

In response to a question from a member, the Group Chief Financial Officer advised that  Wellington Water Limited’s Annual Report was complete.

 

Resolved:  (Ms Tindal/Cr Shaw)                                          Minute No. ARSC 21506

“That the Subcommittee:

(1)   endorses and recommends to the Policy, Finance and Strategy Committee’s
2 December 2021 meeting the adoption of the Group Annual Report for the year ended 30 June 2021 (attached as Appendix 1 to the report), subject to satisfactory resolution of the following outstanding items:

(a)     completion of final design and minor editorial changes;

(b)     completion of any external audit adjustments; and

(c)      receipt of final audit clearance from Audit NZ;

(2)   notes that the Annual Report and Summary will be available within one month of adoption by Council, to be sought at its 16 December 2021 meeting, including:

(a)     published on Council’s website;

(b)     hard copies available in the City’s libraries, Community Hubs and at the main administration building; and

(c)      accompanied by public notices and social media collateral.”

For the reason of meeting legislative requirements and to inform and engage with the community.

 

10.

Seismic Performance Register (21/1754)

Report No. ARSC2021/5/23 by the Head of Assets and Facilities Management

 

The Head of Assets and Facilities Management elaborated on the report.

 

Resolved:  (Ms Tindal/Cr Briggs)                                              Minute No. ARSC 21507

“That the Subcommittee receives and notes the information contained in the report.”

11.     Information Items

a)

Naenae Projects Update (21/1734)

Memorandum dated 20 October 2021 by the Project Manager (Naenae)

 

The Project Manager (Naenae) elaborated on the report.

 

Resolved:   (Ms Tindal/Cr Edwards)                              Minute No. ARSC 21508

“That the Subcommittee notes and receives the memorandum.”

 

b)

Audit and Risk Work Programme (21/1621)

Report No. ARSC2021/5/136 by the Democracy Advisor

 

The Chair asked officers to advise what meeting cycles should the following reports be reported back to the Subcommittee in the 2022 Work Programme: Naenae Projects update; RiverLink update; Petone Wharf Refurbishment update; and the Eastern Bays Shared Pathway.

The Chief Executive advised that an update on COVID-19 would be included on the agenda in 2022.

 

Resolved:   (Ms Tindal/Cr Edwards)                          Minute No. ARSC 21509

“That the work programme be received and noted.”

12.     QUESTIONS

          There were no questions.


 

13.     EXCLUSION OF THE PUBLIC

         

Resolved:  (Ms Tindal/Cr Mitchell)                                          Minute No. ARSC 21510

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

14.     Fraud Risk Management

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.

 

 

 

Fraud Risk Management.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

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.”

 


 

 

 

There being no further business the Chair declared the public part of the meeting closed at 1.40pm.  The non-public part of the meeting closed at 1.53pm.

 

 

 

 

 

S Tindal

CHAIR

 

 

 

 

 

 

CONFIRMED as a true and correct record

Dated this 16th day of December 2021

 


 

Chief Executive - Covid-19 Update as at 11 November 2021

 

11 November 2021

Update on Managing Covid-19 to Audit and Risk Subcommittee

As at the date of writing, the Wellington region remains at Alert Level 2. Current vaccination rates for the Hutt Valley DHB are 89% first dose, 79% second dose.

Our focus has continued to be to ensure the health and wellbeing of our staff and community, and to safely provide access to facilities and to deliver services.

As a Corporate Leadership Team we have developed some key principles to guide us at this time. Our values inform these principles:

· We will keep our staff and community safe

· We will show leadership and exemplify best practice to limit the spread of COVID-19

· To achieve this we are pro-vaccination and will actively support vaccination throughout our city and region

· We will actively communicate with staff, governance and community and be agile in our approach to responding to COVID-19

 

Since the last update to the Subcommittee on 9 September 2021 there have been a number of key decisions by government that we have been considering and planning through.

The government introduced a Covid-19 Protection Framework on 22 October 2021 as New Zealand moves away from an elimination strategy to setting out how we will live and work with Covid. When in place this will mean that a new “traffic light system” will apply. The framework introduces vaccination certificates which will be optional for many locations and in some higher-risk settings these will be compulsory in order to open to the public.

As with the Alert Level system we have been working through what the new approach means for Council. I have also contributed to draft guidance for local authorities through my role as Vice President of Taituarā including making submissions to MBIE. There is a reasonable expectation that vaccine certificates will be required at many local government facilities. We expect a national guidance framework by the end of the month which we will implement.

On Monday 25 October, the COVID-19 Public Health Response Order for Mandatory Vaccinations for Education came into effect. We identified 15 roles covered by the Health Order. These staff have been communicated with and information provided to them on next steps. Where staff aren’t yet vaccinated, we would provide them with support to do this, as well as access to information on the vaccine, and wellbeing support or other services as needed.

We continue to support the local vaccination effort with assistance provided to local health providers with a big push for Super Shot Saturday on 17 October involving a number of staff. We responded to a request to help set up a testing station in Petone and continue to promote health initiatives on our website and social media channels.

We regularly provide updates to staff and members including sharing our vaccination strategy and high-level results from our first confidential staff vaccine survey. Councillors were briefed at their hui on Monday 8 November on some of the challenges Covid-19 is presenting to Council , and may present over the next 8 months, to Council including around the operation of our facilities, and services.

Members received a report from the Neighbourhoods and Communities group on the impact of Covid on museums, libraries and hubs as part of the background reading for the hui. This noted visitor numbers are down by around 40% across 8 anchor facilities (hubs/libraries) in August compared to the same time last year, and 50% down in September. Library circulation numbers are down (41% in September). This has had an impact on revenue for this group which is down by $470k as at September.

The report also highlighted customers are now more action-orientated when visiting our sites, spending less time ‘hanging out’ for longer periods of time particularly since lockdown. There are higher levels of anxiety, and a noticeable decline in the wellbeing of customers across a number of our sites. Staff are starting to feel fatigued struggling with the ongoing tension of being a host/kaitiaki of the space, and having to manage/police mask wearing, physical distancing and maintaining max capacity.

These are all new challenges that we are working on together. We have 17 workstreams underway aiding our Covid response. This includes work on:

· Council’s vaccination approach for staff

· Approach to requirement of vaccine certificates for use of Council services and facilities

· Prioritisation of services to be provided over next 8 months

· Workforce availability/ability to move roles.

 

We will continue to bring key matters to the attention of Mayor and Councillors in this fast-changing environment, alongside working with our regional colleagues and national bodies to work through new risk frameworks and legislative requirements.

 

Jo Miller

Chief Executive