AGENDA
Ordinary meeting of the
Governance Committee
Thursday 9 July 2015
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Councillor Ian Barker (Chairperson), Her Worship the Mayor Rachel Reese, Councillor Luke Acland (Deputy Chairperson), Councillors Eric Davy, Kate Fulton, Paul Matheson, Brian McGurk, Gaile Noonan, Pete Rainey, Mr John Peters and Mr John Murray
Guidelines for councillors attending the meeting, who are not members of the Committee, as set out in Standing Orders:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings (SO 2.12.2)
· At the discretion of the Chair, councillors who are not Committee members may speak, or ask questions about a matter.
· Only Committee members may vote on any matter before the Committee (SO 3.14.1)
It is good practice for both Committee members and non-Committee members to declare any interests in items on the agenda. They should withdraw from the table for discussion and voting on any of these items.
Governance Committee
9 July 2015
Nil
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M1233
Recommendation
THAT the minutes of the meeting of the Governance Committee, held on 28 May 2015, be confirmed as a true and correct record.
6. Status Report - Governance Committee - 9 July 2015 16 - 17
Document number R4521
Recommendation
THAT the Status Report Governance Committee 9 July 2015 (R4521) and its attachment (A1160658) be received.
Governance
8. Fire Services Review: Submission 18 - 28
Document number R4507
Recommendation
THAT the report Fire Services Review: Submission (R4507) and its attachments (A1379827 and A1378688) be received;
AND THAT the attached submission from Nelson City Council (A1378688) be approved.
Note: Due to size, Attachment 1 to this report has been circulated separately
9. Memorandum of Understanding for Uniquely Nelson 2015-16 29 - 89
Document number R4517
Recommendation
THAT the report Memorandum of Understanding for Uniquely Nelson 2015-16 (R4517) and its attachments (A1380525, A1380520 and A1380518) be received.
Recommendation to Council
THAT the Memorandum of Understanding between Uniquely Nelson and Nelson City Council (A1380525) is approved for signing.
Finance
10. The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16 90 - 104
Document number R4496
Recommendation
THAT the report The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16 (R4496) and its attachments (A1281445 and A1377704) be received.
Recommendation to Council
THAT the Ridgeways Joint Venture Statement of Intent 2015/16 (A1377704) be approved for signing, subject to minor edits.
11. Audit,
Risk and Finance Subcommittee - 18 June
2015 105 - 111
Document number M1286
Recommendation
THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 18 June 2015, be received.
Note: The only business transacted in public excluded at this meeting was to confirm minutes; therefore this has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act, no reason for withholding this information from the public exists.
12. Commercial Subcommittee - 18 June 2015 112 - 116
Document number M1288
Recommendation
THAT the unconfirmed minutes of a meeting of the Commercial Subcommittee, held on 18 June 2015, be received.
Note: The only business transacted in public excluded at this meeting was to confirm minutes; therefore this has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act, no reason for withholding this information from the public exists.
Public Excluded Business
Recommendation
THAT the public be excluded from the following parts of the proceedings of this meeting.
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:
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Governance Committee Meeting Minutes - Public Excluded - 28 May 2015 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person. · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). |
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2 |
Appointment of Directors to Tourism Nelson Tasman Ltd and the Nelson Regional Economic Development Agency 2015
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person |
14. Re-admittance of the public
Recommendation
THAT the public be re-admitted to the meeting.
Note:
· Youth Councillors Jordan Lankshear and Emily Thomas will be in attendance at this meeting. (delete as appropriate)
Minutes of a meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 28 May 2015, commencing 11.52am
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillors L Acland (Deputy Chairperson), E Davy, P Matheson, B McGurk, G Noonan, and Mr J Peters and Mr J Murray
In Attendance: Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Manager Communications (P Shattock), Manager Administration (P Langley), and Administration Adviser (G Brown)
Apologies: Councillors K Fulton and P Rainey
1. Apologies
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Resolved GOV/2015/001 THAT apologies be received and accepted from Councillors Fulton and Rainey. McGurk / Matheson Carried |
2. Confirmation of Order of Business
The Chairperson advised the meeting would adjourn at 12.45pm and resume at 2.00pm.
3. Interests
There were no updates to the Interests Register and no interests with agenda items were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 16 April 2015
Document number M1225, agenda pages 9 - 21 refer.
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Resolved GOV/2015/002 THAT the minutes of the meeting of the Governance Committee, held on 16 April 2015, be confirmed as a true and correct record. Davy / McGurk Carried |
6. Status Report - Governance Committee - 28 May
Document number R4310, agenda pages 22 - 23 refer.
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Resolved GOV/2015/003 THAT the Status Report Governance Committee 28 May 2015 (R4310) and its attachment (A1160658) be received. Davy / Peters Carried |
Governance
7. Appointment of Trustee to the Nelson Municipal Band Trust
Document number R4249, agenda pages 24 - 26 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to a question, Ms Harrison said the Policy for the appointment of directors to Council Controlled Organisations and Council Controlled Trading Organisations could be varied and it was appropriate in this case, for the Board to recommend a Trustee.
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Resolved GOV/2015/004 THAT the report Appointment of Trustee to the Nelson Municipal Band Trust (R4249) be received. Acland / Murray Carried |
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Recommendation to Council GOV/2015/005 THAT pursuant to the terms of the Trust Deed dated 14th July 2008, the Council hereby appoints David Todd to act as a Trustee for the administration of the Fund. Acland / Murray Carried |
8. Sister Cities Update 2015
Document number R4272, agenda pages 27 - 33 refer.
Sister Cities Coordinator, Gail Collingwood, presented the report.
Mrs Collingwood tabled a document (A1363932). She advised that if anyone had an idea for a new Sister Cities logo they should get in contact with her.
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Resolved GOV/2015/006 THAT the report Sister Cities Update 2015 (R4272) and its attachment (A1354036) be received. Noonan / Matheson Carried |
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Attachments 1 A1363932 - Sister Cities Promoting People to People Exchanges Tabled Document |
9. Business case approach for 2015/16 projects - Further Information
Document number R4309, agenda pages 34 - 45 refer.
Group Manager Infrastructure, Alec Louverdis, and Senior Projects Adviser, Arlene Akhlaq, presented the report.
In response to a question, Mr Louverdis said discussions had been held with the deputies and chairs of committees in relation to the projects highlighted yellow in attachment 1 of the officer’s report. He said the defining criteria were:
1. Did the project have a clear outcome?
2. Was the project well defined?
3. Did the project have a large value assigned to it?
4. Was there potentially a high degree of political interest in the project?, and
5. Was there potentially a high degree of ratepayers interest in the project?.
In response to a further question, Mr Louverdis said there would be a business case template for all projects going forward which would be dependent on size, complexity and the risks involved.
It was discussed that various items were requested at the Audit, Risk and Finance Subcommittee to clarify why projects were highlighted and that additional information was to be added to the schedule to illustrate the criteria used to select these projects. It was suggested this information would be beneficial and should be provided to the Audit Risk and Finance Subcommittee.
There were concerns raised that not all deputies attended the meeting to discuss the criteria and selection process of these projects, and a whole of Council business case approach was required.
In response to a question, Mr Louverdis advised there was urgency around some projects and if not resolved there would be a delay in progress which would affect next year’s capital works programme. He added that projects could be added to the list but would depend on available resource.
It was discussed that it was imperative to progress with these projects as there were project management controls in place and issues such as gravel extraction would not be postponed because it was remediation work.
It was noted that large projects were already progressing under their own work programme.
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Resolved GOV/2015/007 THAT the report Business case approach for 2015/16 projects - Further Information (R4309) and its attachments (A1331113 and A1329251) be received. Noonan / Peters Carried |
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Recommendation to Council GOV/2015/008 THAT projects highlighted yellow in document A1331113 follow a business case approach subject to the following amendments: · Clarification of Neighbourhood Reserve · Completion of schedule with missing additional information requested from the Audit, Risk and Finance Subcommittee including criteria discussed · Indications of projects that are subject to separate reporting processes · Addition of Rutherford Playground Noonan / Peters Carried |
Attendance: The meeting adjourned at 12.49pm until 2.09pm. During this time Councillors L Acland, E Davy and P Matheson left the meeting.
REPORTS FROM COMMITTEES
10. Commercial Subcommittee - 5 May 2015
Document number R4308 refer, agenda pages 46-49 refer.
External appointee, Mr John Murray provided a summary of the items discussed at the Commercial Subcommittee meeting.
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Resolved GOV/2015/009 THAT the unconfirmed minutes of a meeting of the Commercial Subcommittee, held on 5 May 2015, be received. Murray / Noonan Carried |
11. Audit, Risk and Finance Subcommittee - 5 May 2015
Document number R4320 refer, agenda pages 50-57 refer.
External appointee, Mr John Peters provided a summary of the items discussed at the Audit, Risk and Finance Subcommittee meeting.
Attendance: Councillor Acland returned to the meeting at 2.13pm.
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Resolved GOV/2015/010 THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 5 May 2015, be received. Murray / Peters Carried |
11.1 Events Resource Consent Charging Regime for RM125012
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Recommendation to Council GOV/2015/011 THAT Council consider the options for the charging regime for the use of Council’s Resource Consent RM125012, as detailed in report R4177, and increase the charge to $500 and apply it only to commercial ticketed events. Murray / Peters Carried |
11.2 Business Case Approach for 2015/16 Projects
Please note this recommendation to the Governance Committee was superseded by the decision made in Item 9 of these minutes.
11.3 Corporate Report for the Period Ending 31 March 2015
In response to a question, Manager Administration, Penny Langley, advised that the live streaming of Council meetings would be available through the Nelson City Council website and would be recorded. She clarified that there was no intention for the recording to be televised.
Councillor Noonan moved the following amendment, seconded by Her Worship the Mayor
AND THAT a cost benefit review be undertaken 12 months after commencement of the live streaming of Council meetings.
The amendment was put and carried and became the substantive motion.
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Recommendation to Council GOV/2015/012 THAT Council note that ongoing costs of approximately $11,250 pa will need to be included in the Long Term Plan 2015-25 for live streaming of Council meetings; AND THAT a cost benefit review be undertaken 12 months after commencement of the live streaming of Council meetings. Peters / Murray Carried |
12. Exclusion of the Public
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Resolved GOV/2015/013 THAT the public be excluded from the following parts of the proceedings of this meeting. 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: Noonan / McGurk Carried |
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Governance Committee – Public Excluded Minutes – 16 April 2015 These minutes contain information regarding: Nelmac Limited draft Statement of Intent Nelson Airport Limited Proposed Constitutional Changes |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities. · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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2 |
Review of Economic Development Services This report contain information regarding: Review of Economic Development Services
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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3 |
Bishop Suter Trust Negotiations This report contains information regarding: Bishop Suter Trust negotiations |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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4 |
Audit, Risk and Finance Subcommittee
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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5 |
Commercial Subcommittee Meeting - Public Excluded - 5 May 2015 These minutes contain information regarding: A Property Assets Review |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under 7 |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities. |
The meeting went into public excluded session at 2.21pm and resumed in public session at 3.04pm.
13. Re-admittance of the Public
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Resolved GOV/2015/014 THAT the public be re-admitted to the meeting. Barker / Acland Carried |
There being no further business the meeting ended at 3.04pm.
Confirmed as a correct record of proceedings:
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Governance Committee 9 July 2015 |
REPORT R4521
Status Report - Governance Committee - 9 July 2015
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendation
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THAT the Status Report Governance Committee 9 July 2015 (R4521) and its attachment (A1160658) be received.
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Shailey McLean
Administration Adviser
Attachments
Attachment 1: Status Report - Governance Committee - July 2015
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Governance Committee 9 July 2015 |
REPORT R4507
Fire Services Review: Submission
1. Purpose
1.1 To endorse a submission from Nelson City Council on the Fire Services Review.
2. Delegations
2.1 The Governance Committee is responsible for Rural Fire, forestry and Civil Defence Emergency Management activities. It has the power to lodge submissions on policies and legislation related to its areas of responsibility.
3. Recommendation
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THAT the report Fire Services Review: Submission (R4507) and its attachments (A1379827 and A1378688) be received; AND THAT the attached submission from Nelson City Council (A1378688) be approved. |
4. Background
4.1 Nelson City Council, as a territorial authority, is a Fire Authority under s.10 of the Forest and Rural Fires Act 1977.
4.2 In 2004 Council joined other stakeholders to form the Waimea Rural Fire Authority (WRFA). The WRFA is governed by a board, known as the Waimea Rural Fire Committee (WRFC). The members are Nelson City Council, Tasman District Council, Department of Conservation, Tasman Bay Forests, and Nelson Forests. The WRFA carries out the responsibilities of a Rural Fire Authority.
4.3 Council spends approximately $130,000 per annum on rural fire activities, including funding for the rural fire brigade at Hira and a trained Nelmac team.
4.4 The Government has launched a review of fire services, including both rural fire and the urban fire service. The Minister of Internal Affairs, Hon Peter Dunne, has released the Fire Services Review Discussion Document (attachment 1) and is calling for submissions by 10 July. The Minister visited the region on 19 June to brief local officials. Nelson City Council was represented at the briefing by Clr Ian Barker as Chairman of the Governance Committee.
4.5 It is recommended that Council lodge a submission (attachment 2) in response to the review, given Council’s responsibilities for rural fire in particular.
5. Discussion
5.1 The discussion document issued by Government contains three options. These are illustrative only and other combinations may be possible.
Option 1: Enhanced status quo
5.2 Urban, rural and volunteer fire services would remain as separate entities. There would be increased support for volunteers. Rural Fire Authorities could continue to voluntarily merge.
5.3 The mandate for the Fire Service Commission and Rural Fire Authorities responding to non-fire events would be clarified. The structure of the Fire Service Commission (which oversees urban and rural fire services) would be modernised.
5.4 The role of local authorities and current levels of Council funding would remain largely unchanged.
Option 2: Coordinated service delivery
5.5 This option includes additional changes for volunteer and rural fire services. Volunteers and rural fire fighters would be better supported by the new fire service, including through training and equipment. New fire districts would be established and new Rural Fire Authorities would be established to deliver rural fire services. The new Rural Fire Authorities would have local independence, backed by national support, leadership and monitoring.
5.6 Separate organisational structures between urban and rural fire largely remain in place; however, the new fire service would be able to monitor, assist and intervene if necessary. Significant legislative and operational change would be required.
5.7 Local authorities would no longer be Rural Fire Authorities, but would remain as stakeholders in the new Rural Fire Authorities. Councils would have a role in defining service level agreements with the new fire service.
Option 3: One national fire service
5.8 This option would integrate urban and rural, volunteer and career fire services into one national organisation. All volunteer fire fighters would be in a direct relationship with the new national fire service.
5.9 Fire stations would remain closely connected to their communities and may be staffed by career (paid) fire fighters, volunteer fire fighters, or a mix. Community engagement and consultation would identify each station’s needs and its role in emergencies. Local government would no longer have a role delivering rural fire services and may no longer have a role in funding rural fire services. Significant legislative and operational change would be required under this option.
5.10 The role of Local authorities would reduce: Councils would no longer have a role in delivering or supporting the delivery of rural fire. Council would continue to have an interest under the Resource Management Act, the Civil Defence Emergency Management Act, and as a landowner. There is the possibility under this option of having no local funding for rural fire, but that could change following consultation.
Funding
5.11 The discussion document looks at how to improve the way the Fire Service Commission is funded. Two potential options to improve the fire service levy are presented. The first option takes the current model of funding from multiple stakeholders, and adds additional funding from insurance levies. The second option is a mixed funding model, consisting of revenue streams from insurance levies, Government contributions (eg to fund non-fire activities), and contributions from the motor vehicles sector. The models are presented in general terms only and the implications for local authorities are not specified. However, it is expected that both options will result in greater funding for rural fire, and this may lead to reduced financial impacts for local authorities. The second option (mixed funding) is favoured by Local Government New Zealand (LGNZ).
6. Options
6.1 The recommended option is to make a submission on the discussion document, as attached or modified. A submission from Council is recommended because the review affects the mandate and funding of Council for rural fire activities.
6.2 An alternative option is to not make a submission, and to rely instead on submissions being made by other bodies, such as Local Government New Zealand, and the Waimea Rural Fire Authority.
7. Alignment with relevant Council policy
7.1 This proposal fits with Nelson 2060, specifically that our natural environment is protected and healthy.
7.2 This proposal is also aligned with the Long Term Plan 2015/2025, specifically the fourth Community Outcome, which states “Our communities are healthy, safe, inclusive and resilient”. This outcome speaks about the importance of being a resilient community, able to cope with disasters or emergencies.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This decision is not significant in terms of Councils Significance and Engagement Policy.
9. Consultation
9.1 No consultation or public engagement has occurred or is required for this submission to be made.
10. Inclusion of Māori in the decision making process
10.1 The views of Maori have not been sought in connection to this submission.
11. Conclusion
11.1 This review is potentially the most significant re-organisation of fire services since the reforms that followed the Ballantynes fire of 1947. Council has an interest in the review as a rural fire authority, a landowner, and because of its responsibilities under the Resource Management Act and the Civil Defence Emergency Management Act.
Roger Ball
Manager Emergency Management
Attachments
Attachment 1: A1379827 - Fire Services Review: Discussion Document (Circulated separately)
Attachment 2: A1378688 - Fire Services Review - Nelson City Council Submission
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Governance Committee 9 July 2015 |
REPORT R4517
Memorandum of Understanding for Uniquely Nelson 2015-16
1. Purpose of Report
1.1 To extend the Memorandum of Understanding between Nelson City Council and Uniquely Nelson.
2. Delegations
2.1 The Governance Committee’s areas of responsibility include business, economic development and tourism in Nelson.
3. Recommendation
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THAT the report Memorandum of Understanding for Uniquely Nelson 2015-16 (R4517) and its attachments (A1380525, A1380520 and A1380518) be received. |
Recommendation to Council
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THAT the Memorandum of Understanding between Uniquely Nelson and Nelson City Council (A1380525) is approved for signing. |
4. Background
4.1 Uniquely Nelson is not a Council Controlled Organisation. It is an independent grouping of Central Business District businesses that exists to assist them to act collectively for the benefit of all.
4.2 Funding for Uniquely Nelson comes from the commercial differential paid by CBD businesses. A budget of $140,596 was approved in the LTP for Uniquely Nelson for the 2015/16 year.
4.3 Council previously signed an MoU with Uniquely Nelson in 2012. It is a relatively simple document that sets out Council’s priorities for Uniquely Nelson.
5. Discussion
5.1 The most recent MoU expired on 30 June 2015. A draft MoU has been prepared (attachment 1) based on the outcomes contained in the previous document.
5.2 This year, Council is reviewing its Economic Development Services and it is recommended that the MoU be extended to cover only one year, rather than 3 years as was previously the case. This will give Council the opportunity of re-assessing its priorities for Uniquely Nelson once the review is complete.
5.3 In addition to the MoU, Uniquely Nelson provides Council with a business plan detailing its work programme for the year (Attachment 2), and a report highlighting its achievements in the previous year (Attachment 3).
6. Options
6.1 It is good practice to have an agreement in place to cover the funding allocated in the LTP. Council can alter any of the provisions contained in the MoU, but it is recommended that a full review take place after decisions have been made on the Economic Services Review. This will allow for alignment of Uniquely Nelson outcomes with other economic and tourism outcomes.
7. Alignment with relevant Council policy
7.1 This recommendation is consistent with Council policy, and the funding is consistent with that approved in the LTP.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision.
9. Consultation
9.1 No consultation has taken place whilst preparing this recommendation.
10. Inclusion of Māori in the decision making process
10.1 Maori have not been consulted in preparing this recommendation.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: Uniquely Nelson Memorandum of Understanding 2015-2016 (A1380525)
Attachment 2: Uniquely Nelson Business Plan 2015-2016 (A1380520)
Attachment 3: Uniquely Nelson Achievements 2014-15 (A1380518)
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Governance Committee 9 July 2015 |
REPORT R4496
The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16
1. Purpose of Report
1.1 To offer Ridgeways Joint Venture the opportunity to present and explain its six months results including the Half Yearly Report. (Attachment 1).
1.2 To seek Council approval of the Ridgeways Joint Venture draft Statement of Intent 2015/16. (Attachment 2).
2. Delegations
2.1 The Governance committee is responsible for all matters relating to Council Controlled Organisations and Council Controlled Trading Organisations, including statements of intent, half yearly reports and the appointment of directors.
3. Recommendation
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THAT the report The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16 (R4496) and its attachments (A1281445 and A1377704) be received. |
Recommendation to Council
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THAT the Ridgeways Joint Venture Statement of Intent 2015/16 (A1377704) be approved for signing, subject to minor edits. |
4. Background
4.1 Ridgeways Joint Venture, along with the other Council Controlled Organisations (CCOs), is required to complete a Statement of Intent by agreement with the Council by 30 June each year.
4.2 Schedule 8 of the Local Government Act 2002 outlines the purpose of a Statement of Intent, what is to be included and how it is to be approved.
4.3 Ridgeways Joint Venture, along with other CCOs, is required to report its half yearly performance as outlined in its Statement of Intent 2014/2015.
4.4 The accounting year for Ridgeways Joint Venture is from 31 March so unlike all the other CCOs, the six monthly report is to September 30 not December 31.
4.5 Seddon Marshall will be in attendance to answer any questions.
5. Discussion
5.1 The half yearly report shows good control of costs for the first six months and continuing low sales.
5.2 The Statement of Intent presented for Council’s consideration is very similar to that approved for 2014/15.
5.3 The Statements of Intent for Ridgeways Joint Venture have been static over the last few years with the only changes being the slowly reducing section numbers.
5.4 There are now only 9 sections left to sell and there is no further development work required. These reports reflect the steady progression through to the final sale.
5.5 Last year the parties to the joint venture entered into discussions with a view to winding up the joint venture. The parties have been unable to reach agreement on price for the remaining sections.
6. Options
6.1 There is no decision to be made on the half yearly report. The Joint Venture has complied with the legislation in preparing and presenting the report to Council.
6.2 In relation to the draft SOI, the Committee can choose to either submit feedback to the Joint Venture or to recommend to Council that the draft SOI be adopted as the final version (with any minor amendments). If the Committee does submit substantive feedback then the amended SOI will be brought back to the Committee at a later date.
7. Alignment with relevant Council policy
7.1 This decision is a statutory process.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision under Councils Significance and Engagement Policy.
9. Consultation
9.1 No consultation has been undertaken in the preparation of this report.
10. Inclusion of Māori in the decision making process
10.1 No consultation with Maori has been undertaken in preparation of this report.
11. Conclusion
11.1 Ridgeway Joint Venture has complied with the Local Government Act 2002 in preparing a half yearly report and draft SOI. The Committee has the opportunity to request changes or additions to the draft SOI. Officers are not recommending that any substantive change is required, and the Committee may decide to recommend to Council that the draft SOI be approved as the final SOI for the 2015/16 year.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1281445 - The Ridgeways Joint Venture Half Yearly Report Nov2014
Attachment 2: A1377704 - The Ridgeways Joint Venture Draft Statement of Intent 2015/16
Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in Ruma Mārama, Level 2A, Civic House, 110 Trafalgar Street, Nelson
On Thursday 18 June 2015, commencing at 1.03pm
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillors I Barker and B McGurk and Mr J Murray
In Attendance: Councillor P Matheson, Chief Executive (C Hadley), Group Manager Community Services (C Ward), Manager Capital Projects (S Davies), Senior Accountant (T Hughes), and Administration Adviser (S McLean)
1. Apologies
There were no apologies.
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 5 May 2015
Document number M1202, agenda pages 6 - 13 refer.
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Resolved AUD/2015/009 THAT the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 5 May 2015, be confirmed as a true and correct record. McGurk/Barker Carried |
6. Status Report - Audit, Risk and Finance Subcommittee - 18 June 2016
Document number R4386, agenda pages 14 - 15 refer.
It was agreed the final list of projects to follow a business case approach would be provided to the Subcommittee.
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Resolved AUD/2015/010 THAT the Status Report Audit, Risk and Finance Subcommittee 18 June 2015 (R4386) and its attachment (A1324298) be received. Barker/McGurk Carried |
7. Chairperson's Report
Document number R4390, agenda page 16 refers.
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Resolved AUD/2015/011 THAT the Chairperson's Report (R4390) be received and the updates noted. Peters/Murray Carried |
8. Draft Debt Management Policy
Document number R4178, agenda pages 17 - 23 refer.
It was suggested the Policy contain a flowchart which showed the management process for various levels of debt.
There was discussion on charging interest for outstanding debt. It was advised that this could be done under legislation, but may be difficult to do within Council’s systems.
The Chief Executive, Clare Hadley, emphasised that debtors to Council could include volunteer groups, sporting clubs and charity organisations, and discretion may be required when applying interest.
Concern was raised that the Policy did not contain detail on how discretion could be exercised.
Accounting Services Manager, Lynn Anderson, advised that the outstanding debt process now commenced at 60 days overdue.
There was discussion on whether interest should be charged on all outstanding debt, with discretion to waive for certain cases, or if interest would only be applied in certain cases.
Concern was raised that waiving interest charges would create risks for Council.
It was agreed that interest would be charged on all outstanding debt, unless an instalment arrangement as per section 3.4 of the Policy was made prior to the due date.
It was agreed that interest would not be charged to those on instalment arrangements, unless the arrangements were not upheld in which case interest would be charged from the original due date.
There was discussion on the interest rate to charge on outstanding debt. It was noted that Council’s weighted average cost of interest was low and may not be an appropriate level.
It was suggested that officers contact Local Government New Zealand to investigate interest rate levels charged in the public sector.
It was agreed that the second sentence in the second bullet point under section 3.4 of the Policy would be removed.
In response to a question, Ms Anderson advised that business units received information on debtors to ensure further engagement did not take place. She added that she reviewed outstanding debts on a monthly basis, and Inland Revenue had certain processes to follow before an amount could be written off.
In response to questions, Ms Anderson advised the debt collection agency sent regular reports on progress of collecting outstanding debts. She said that once a debt reached a certain threshold, it would be reported to the Audit, Risk and Finance Subcommittee.
There was discussion on the process for invoice disputes.
Attendance: Her Worship the Mayor left the meeting at 1.47pm.
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Resolved AUD/2015/012 THAT the report Draft Debt Management Policy (R4178) and its attachment (A1353429) be received; AND THAT the following edits be made to the Draft Debt Management Policy before the Policy is reported back to the Subcommittee for consideration: · Inclusion of flowchart regarding processes for various debt levels · Implementation of an interest charge/penalty regime for unpaid debts · Interest rate to be charged following research with Local Government New Zealand · Explanation of interest charge to be included in terms of credit Murray/Barker Carried |
9. Corporate Report to 30 April 2015
Document number R4244, agenda pages 24 - 43 refer.
Attendance: Her Worship the Mayor returned to the meeting at 1.50pm.
In response to a question, Senior Accountant, Tracey Hughes, advised that managers were advised regularly about high annual leave balances and there was a level at which a plan to take leave was required. The Chief Executive, Clare Hadley, pointed out that this information was included in Council’s Annual Report, as well as being regularly presented to the Chief Executive Employment Committee.
In response to questions, Ms Hughes advised that the $43,000 less than projected for landfill fees was not at a level to be concerned about. She confirmed that headworks maintenance was deliberately scheduled at the end of the financial year for practical reasons.
Her Worship the Mayor congratulated Group Manager Community Services, Chris Ward, and his team on the media coverage for the Cricket World Cup and for delivering the event under budget.
In response to questions, Ms Hughes advised that variances were not compared with the original budget, they were compared to the adjusted budget as at the end of April.
It was agreed the On Track heading for the Completed Projects in Attachment 5 to the report (A1366144) would be amended to avoid confusion.
In response to questions, Mrs Hadley advised that landowner consultation on Stage 2 of the Saxton Creek Upgrade had not progressed during the Long Term Plan 2015-25 consultation. It was agreed that the update should state ‘delayed due to the need to continue landowner consultation’.
In response to a question, Manager Capital Projects, Shane Davies, advised the delay on the Orphanage Stream upgrade related to cultural impact assessments. Mrs Hadley highlighted this was an issue for a number of projects.
It was suggested that issues with cultural impact assessments needed a solution and this should be added to the Risk Register.
In response to questions, Mr Davies advised that considerable effort had been made to communicate with residents affected by the Tasman Street upgrade (Nile to Bronte). He said internal processes were being developed for project wrap up reporting.
It was asked that officers include detail on the Maitai Walkway financials in the next Corporate Report, and add it to the completed portion of the project status report.
It was asked that reporting on earthquake-prone buildings be clearer in future.
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Resolved AUD/2015/013 THAT the report Corporate Report to 30 April 2015 (R4244) and its attachment (A1366139) be received and the variations noted. McGurk/Barker Carried |
10. Risk Register and Framework Plan
Document number R4246, agenda pages 44 - 53 refer.
The Chief Executive, Clare Hadley, provided an update on recruitment for the new Organisational Assurance team.
The Chairperson asked that issues with cultural impact assessments be reflected in the Risk Register.
There was discussion on the link between the risks of reputational damage to Council and insufficient/incomplete advice.
It was suggested that the Political heading on the Risk Register be changed to Political/Governance.
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Resolved AUD/2015/014 THAT the report Risk Register and Framework Plan (R4246) and its attachments (A1241121 and A1359808) be received. Barker/Murray Carried |
11. Exclusion of the Public
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Resolved AUD/2015/015 THAT the public be excluded from the following parts of the proceedings of this meeting. 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: McGurk / Barker Carried |
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded - 5 May 2015 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person. · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). |
The meeting went into public excluded session at 2.40pm and resumed in public session at 2.42pm.
Please note that as the only business transacted in public excluded was to confirm the minutes, this business has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act, no reason for withholding this information from the public exists.
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Resolved AUD/2015/016 THAT the minutes of part of the meeting of the Audit, Risk and Finance Subcommittee, held with the public excluded on 5 May 2015, be confirmed as a true and correct record. Murray/McGurk Carried |
12. Re-admittance of the Public
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Resolved AUD/2015/017 THAT the public be re-admitted to the meeting. Peters / Murray Carried |
There being no further business the meeting ended at 2.42pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
Minutes of a meeting of the Commercial Subcommittee
Held in Ruma Mārama, Floor 2A, Civic House, 110 Trafalgar Street, Nelson
On Thursday 18 June 2015, commencing at 2.57pm
Present: Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillors L Acland and G Noonan, and Mr J Peters
In Attendance: Councillors B McGurk and I Barker, Chief Executive (C Hadley), Group Manager Community Services (C Ward), Manager Capital Projects (S Davies), Manager Community Partnerships (S Hermsen), and Administration Adviser (S McLean)
1. Apologies
There were no apologies
2. Confirmation of Order of Business
There was no change to the order of business.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 5 May 2015
Document number M1198, agenda pages 6 - 9 refer.
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Resolved COM/2015/005 THAT the minutes of the meeting of the Commercial Subcommittee, held on 5 May 2015, be confirmed as a true and correct record. Noonan/Peters Carried |
6. Status Report - Commercial Subcommittee - 18 June 2015
Document number R4391, agenda pages 10 - 11 refer.
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Resolved COM/2015/006 THAT the Status Report Commercial Subcommittee 18 June 2015 (R4391) and its attachment (A1368654) be received. Noonan / Peters Carried |
Governance
7. Stoke Community and Sports Facility, Cafe
Document number R4329, agenda pages 12 - 20 refer.
Manager Capital Projects, Shane Davies, presented the report. Mr Davies clarified that figures quoted did not include fitout of the cafe.
Manager Community Partnerships, Shanine Hermsen, presented a summary of feedback from nearby businesses of a similar nature. She said key questions received had been regarding if the cafe would be licensed and what the further submission process would be.
Ms Hermsen said the majority of businesses were opposed to the cafe due to the potential impact on financial performance and potential loss of jobs, in an already quiet market. She said there was some support for the cafe for the purposes of sports fellowship.
There was discussion on the design of the cafe, and it was clarified that the Subcommittee was being asked to assess whether a commercial activity should occur in a community facility and if a cafe could be viable.
Concern was raised that adding a cafe to the facility at a later date would be much less cost-efficient than including it in the initial design. It was highlighted that a commercial cafe fit out was not linked to Council’s core business and ratepayers should not have to fund this.
Concern was raised that without information on return on investment, no guidance could be given from an investment perspective. It was also pointed out that the existing kitchen facilities did not seem adequate for the size of the facility.
A suggestion was made that the additional space could be constructed, but not necessarily fitted out for a cafe unless there was future demand.
In response to a question, Mr Davies confirmed that the Long Term Plan 2015-25 did not include the additional $330,000 for the cafe space.
There was some support for a cafe at the Stoke Community and Sports Facility as similar concepts such as Millers Acre and Suter Gallery had been done successfully.
The Chairperson suggested speaking to a valuer regarding potential rent for the cafe space.
There was some support for the additional space if it could be used for more than just a cafe.
It was highlighted that direction from Council had been that building should commence by early to mid 2016. It was then pointed out that the risk of delay may be lesser than the risk of a poor commercial decision.
The Chairperson suggested that discussions should take place with commercial real estate agents with knowledge of Stoke.
It was agreed that in principle there was no issue with having a commercial activity in a community facility, the issue was in the detail of this particular facility. It was also agreed there were benefits to a cafe other than just commercial, such as social aspects.
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Resolved COM/2015/007 THAT the report Stoke Community and Sports Facility, Cafe (R4329) and its attachment (A1368398) be received. Noonan/Acland Carried |
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Resolved COM/2015/008 THAT the Commercial Subcommittee recommend that data on lease valuation and the likely level of interest from commercial real estate agents be considered by Council in its decision making, noting that without strong financials the Commercial Subcommittee would not recommend the inclusion of a standalone cafe as a commercial venture. Her Worship the Mayor/Peters Carried |
8. Meeting Dates 2015
The meeting dates for 2015 were noted. It was pointed out that a meeting on 30 July was not feasible as several Subcommittee members were unavailable.
9. Exclusion of the Public
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Resolved COM/2015/009 THAT the public be excluded from the following parts of the proceedings of this meeting. 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: Noonan/Acland Carried |
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Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
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1 |
Commercial Subcommittee Meeting - Public Excluded - 5 May 2015 |
Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7. |
The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities. |
The meeting went into public excluded session at 3.59pm and resumed in public session at 4.04pm.
Please note that as the only business transacted in public excluded was to confirm the minutes, this business has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act, no reason for withholding this information from the public exists.
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Resolved COM/2015/010 THAT the minutes of part of the meeting of the Commercial Subcommittee, held with the public excluded on 5 May 2015, be confirmed as a true and correct record. Noonan/Peters Carried |
10. Re-admittance of the Public
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Resolved COM/2015/011 THAT the public be re-admitted to the meeting. Noonan/Acland Carried |
There being no further business the meeting ended at 4.04pm.
Confirmed as a correct record of proceedings:
