Minutes of Policy, Finance and Strategy Committee

1 6 September 2022

Komiti Ratonga Rangatōpū me te Rautaki

Policy, Finance and Strategy Committee

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

Tuesday 6 September 2022 commencing at 3.15pm

PRESENT:	Cr S Edwards (Chair)	Mayor C Barry
	Cr G Barratt (via audio-visual)	Cr J Briggs
	Cr K Brown (Deputy Chair)	Cr B Dyer
	Deputy Mayor T Lewis	Cr C Milne (via audio-visual) (from 3.18pm)
	Cr A Mitchell	Cr N Shaw
	Cr L Sutton

APOLOGIES: Cr Hislop

IN ATTENDANCE: A Blackshaw, Director Neighbourhoods and Communities

J Griffiths, Director Strategy and Planning

A Geddes, Acting Director Environment and Sustainability

K Puketapu-Dentice, Director Economy and Development

J Livschitz, Group Chief Financial Officer

D Kerite, Head of Regulatory Services (part meeting)

G Craig, Head of Business and Economy (part meeting)

D Bentley, Environmental Health Manager (via audio-visual link)

K Eagle, Senior Management Accountant (part meeting)

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

B Cato, Chief Legal Officer (part meeting)

B Preston, Housing and Development Lead (part meeting)

D Koenders, Manager Financial Strategy and Planning (part meeting)

J Kingsbury, Head of Transport (part meeting)

A Martin, Resource Consents and Compliance Manager (part meeting)

M Palmer, Head of Enterprise Portfolio Management Office (via audio-visual link)

H Singh, Advisor Strategic Planning and Business (via audio-visual link) (part meeting)

K Glanville, Senior Democracy Advisor (via audio-visual link)

V Gilmour, Democracy Administrator

J Randall, Democracy Advisor

PUBLIC BUSINESS

Opening formalities - Karakia Timatanga

Whakataka te hau ki te uru

Whakataka te hau ki te tonga

Kia mākinakina ki uta

Kia mātaratara ki tai

E hī ake ana te atakura

He tio, he huka, he hau hū

Tīhei mauri ora.

Cease the winds from the west
Cease the winds from the south
Let the breeze blow over the land
Let the breeze blow over the ocean
Let the red-tipped dawn come with a sharpened air.
A touch of frost, a promise of a glorious day.

2. APOLOGIES

Resolved: (Cr Edwards/Cr Mitchell) Minute No. PFSC 22401

“That the apology received from Cr Hislop be accepted and leave of absence be granted.”

3. PUBLIC COMMENT

There was no public comment.

4. CONFLICT OF INTEREST DECLARATIONS

There were no conflict of interest declarations.

Hutt Valley Chamber of Commerce 12 Monthly Report to 30 June 2022 (22/1940)

Report No. PFSC2022/4/173 by the Head of Business and Economy

The Chair welcomed P McKibbon, Chief Executive of the Hutt Valley Chamber of Commerce (HVCC), and M Skelly, President of the HVCC.

Cr Milne joined the meeting at 3.18pm.

The Head of Business and Economy elaborated on the report. He said HVCC was working in partnership with Hutt City Council, Upper Hutt City Council, Waka Kotahi, Wellington Water Limited and Mana Whenua to develop a business case for a Jobs and Skills hub (the hub). He explained the hub was still under consideration by Te Manatū Whakahiato Ora - the Ministry of Social Development.

In response to questions from members, the Chief Executive HVCC said workforce numbers and increasing costs were currently the number one issues for businesses. He confirmed HVCC had been working with Ngāti Toa on education-to-employment work, including work to support the RiverLink project. He explained the hub was focused on the RiverLink project but would also provide support for wider training and job opportunities. He said HVCC had been fostering collaboration between Hutt Valley business and suppliers to encourage more use of local supplies.

The Chair thanked the Chief Executive and President of HVCC for their work over the course of the triennium.

Resolved: (Cr Edwards/Cr Briggs) Minute No. PFSC 22402

“That the Committee notes and receives the report.”

For the reason, the Hutt Valley Chamber of Commerce is required to regularly report to the Committee on performance against agreed performance measures.

Sale and supply of alcohol (fees) regulations 2013 - Regulation 19(1) - reporting by territorial authorities (22/2093)

Report No. PFSC2022/4/175 by the Environmental Health Manager

In response to questions from members, the Environmental Health Manager advised Council’s alcohol licensing fees would not be likely to achieve 90% recovery of alcohol licensing related costs. He added this was despite fees being amongst the highest in the country. He said he was investigating whether the Alcohol Fees Bylaw could be reviewed so that fees could be inflation-proofed. He agreed to consider whether a 90% cost recovery was too ambitious and would report back to members. He said officers were able to reduce the fee by one category depending on the criteria an applicant met. He added that a series of related events could be eligible for a fee reduction. He agreed to ensure that information sheets sent to applicants included eligibility criteria for reduced fees.

Resolved: (Cr Edwards/Cr Dyer) Minute No. PFSC 22403

“That the Committee approves the publication of a ‘table of income versus expenditure’ on Council’s website showing the alcohol licensing income received from fees payable in relation to, and costs incurred, in:

(a) the performance of the functions of Council’s District Licensing Committee under the Sale and Supply of Alcohol Act 2012 (the Act);

(b) the performance of the functions of Council’s Inspectors under the Act; and

(c) the undertaking of enforcement activities under the Act.”

For the reasons outlined in the report.

Policy, Finance and Strategy Committee Forward Programme 2022 (22/2098)

Report No. PFSC2022/4/154 by the Democracy Advisor

Resolved: (Cr Edwards/Cr Shaw) Minute No. PFSC 22404

“That the Committee receives and notes the Forward Programme for 2022 attached as Appendix 1 to the report.”

2022 Standard and Poor's Credit Rating (22/2149)

Report No. PFSC2022/4/186 by the Group Chief Financial Officer

The Group Chief Financial Officer elaborated on the report. She considered the report an endorsement of Council’s approach to the Long Term Plan, investments, funding mechanisms and treasury management practices.

In response to questions from members, the Group Chief Financial Officer said Council had maintained a stable AA credit rating position, despite changes to its financial strategy, investment plans and other challenges such as Covid. She noted effective planning, financial prudence and meeting legislative requirements were key to Council’s higher scoring budgetry performance over the past three years.

Resolved: (Cr Edwards/Cr Brown) Minute No. PFSC 22405

“That the Committee notes and receives the report.”

Interim unaudited quarter four and annual performance results for the period ended 30 June 2022 (22/1851)

Report No. PFSC2022/4/174 by the Head of Enterprise Portfolio Management Office

The Head of Enterprise Portfolio Management Office elaborated on the report. She advised that continued demand for resource consents had been challenging. She added Covid had continued to impact staffing, services, facilities and contractors. She explained some key performance measures had been updated since the agenda had been distributed.

In response to a question from a member, the Group Chief Financial Officer confirmed budgets had assumed some level of growth when they were set in the Long Term Plan. She explained that increased growth was due to a range of factors including an increase in the rating database.

In response to a question from a member, the Director Economy and Development said although the impact of Covid, interest rates and lack of building materials were impacting the number of houses sold, he expected the economy would recover. He noted it was important that infrastructure was in place for more housing.

Cr Barratt left the meeting at 3.52pm.

The Chair noted the determination to ensure Asset Management Plans were fully funded through the Long Term Plan process was positive. He emphasised the importance of ensuring Council assets were maintained in good condition.

Members thanked officers for their work and the significant milestones achieved.

Resolved: (Cr Edwards/Cr Dyer) Minute No. PFSC 22406

“That the Committee notes and receives the report.”

10.

Three Waters Reform Update (22/2092)

Report No. PFSC2022/4/153 by the Strategic Advisor

Cr Barratt rejoined the meeting at 3.58pm.

The Group Chief Financial Officer advised Three Waters service entities would be established in 22 months’ time. She predicted work on the transition process would accelerate in 2023.

Resolved: (Cr Edwards/Cr Brown) Minute No. PFSC 22407

“That the report be noted and received.”

11. QUESTIONS

The Chair advised that Cr Sutton had submitted a question in writing before the meeting.

Cr Sutton confirmed officers had provided the information she had requested.

12. EXCLUSION OF THE PUBLIC

Resolved: (Cr Edwards/Deputy Mayor Lewis) Minute No. PFSC 22408

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

13. Valley Floor Growth Infrastructure - Infrastructure Acceleration Fund Negotiation Phase (22/1793)

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.


Valley Floor Growth Infrastructure - Infrastructure Acceleration Fund Negotiation Phase.	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)).	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 3.59 pm. The public excluded part of the meeting closed at 4.15pm.

S Edwards CHAIR

CONFIRMED as a true and correct record

Dated this 4^th day of October 2022