AGENDA
Ordinary meeting of the
Governance Committee
Thursday 20 August 2015
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Councillor Ian Barker (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Luke Acland (Deputy Chairperson), Eric Davy, Kate Fulton, Paul Matheson, Brian McGurk, Gaile Noonan, and Pete Rainey, Mr John Murray and Mr John Peters
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
20 August 2015
1.1 An apology has been received from Her Worship the Mayor Rachel Reese
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
4.1 Raymond Siatkowski - Trans-Pacific Partnership Agreement
Raymond Siatkowski will speak about the Trans-Pacific Partnership Agreement.
Document number M1338
Recommendation
THAT the minutes of the meeting of the Governance Committee, held on 9 July 2015, be confirmed as a true and correct record.
Governance
7. Tourism Nelson Tasman Limited Statement of Intent 2015/16 18 - 43
Document number R4580
Recommendation
THAT the report Tourism Nelson Tasman Limited Statement of Intent 2015/16 (R4580) and its attachments (A1389793 and A1389798) be received.
Recommendation to Council
THAT the Tourism Nelson Tasman Limited Statement of Intent 2015/16 (A1389798) be approved for signing.
8. Commercial Subcommittee - 9 July 2015 44 - 45
Document number M1337
Recommendation
THAT the unconfirmed minutes of an extraordinary meeting of the Commercial Subcommittee, held on 9 July 2015, be received.
9. Audit, Risk and Finance Subcommittee - 30 July 2015 46 - 53
Document number M1385
Recommendation
THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 30 July 2015, be received.
9.1 Update on charging interest on general debtors
Recommendation to Governance Committee and Council
THAT the Draft Debt Management Policy (A1353429) be approved.
A copy of the amended draft Debt Management Policy can be found on the Google Drive for Councillors and is available on request from an Administration Adviser.
9.2 Capital Projects 2014/15
Recommendation to Governance Committee and Council
THAT Council approves continuing work on 2014/15 capital projects within the 2014/15 approved budgets, noting a report on carry forwards will come to the Audit, Risk and Finance Subcommittee meeting on 10 September 2015.
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:
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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 Meeting Minutes - Public Excluded - 9 July 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. |
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2 |
Status Report - Governance Committee - 20 August 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)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
|
3 |
Burrell Park Building Purchase
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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)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
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4 |
Nelmac Directors' Fees 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 |
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5 |
Review of Economic Development Services - next steps
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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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6 |
Recycling contract
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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)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
11. Re-admittance of the public
Recommendation
THAT the public be re-admitted to the meeting.
Note:
· Youth Councillors Rhys Griffith and Keegan Phipps 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 9 July 2015, commencing at 9.01am
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillor L Acland (Deputy Chairperson), Councillors P Matheson, B McGurk, and G Noonan, Mr J Peters and Mr J Murray
In Attendance: Councillor T Skinner, Chief Executive (C Hadley), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Manager Communications (P Shattock), Manager Administration (P Langley), Administration Adviser (S McLean), and Youth Councillors J Lankshear and E Thomas
Apologies: Councillors E Davy and P Rainey
1. Apologies
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Resolved GOV/2015/015 THAT apologies be received and accepted from Councillors Davy and Rainey. McGurk/Noonan Carried |
2. Confirmation of Order of Business
The Chairperson advised that item 10, The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16, would be considered after item 5, Confirmation of Minutes.
The Chairperson advised that the meeting would adjourn at 10.15am to enable an extraordinary Commercial Subcommittee meeting to take place.
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 28 May 2015
Document number M1233, agenda pages 8 - 15 refer.
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Resolved GOV/2015/016 THAT the minutes of the meeting of the Governance Committee, held on 28 May 2015, be confirmed as a true and correct record. McGurk/Murray Carried |
6. The Ridgeways Joint Venture Half Yearly Report and Draft Statement of Intent 2015/16
Document number R4496, agenda pages 90 - 104 refer.
Group Manager Corporate Services, Nikki Harrison, and Seddon Marshall presented the report.
Mr Marshall provided an update on the Ridgeways Joint Venture. He advised the majority of sections had sold, with the remaining sites being on steeper land. Mr Marshall advised that a discounted regime may be required to sell these sections.
In response to a question, Mr Marshall said the sites could be used for smaller more affordable housing, and he suggested looking at the singles market. He provided detail on holding costs for the remaining sections, the bulk of which were rates.
In response to a question, Ms Harrison clarified that the inventory on the balance sheet was shown at historic cost, not current value.
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Resolved GOV/2015/017 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. McGurk/Peters Carried |
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Recommendation to Council GOV/2015/018 THAT the Ridgeways Joint Venture Statement of Intent 2015/16 (A1377704) be approved for signing, subject to minor edits. McGurk/Peters Carried |
7. Status Report - Governance Committee - 9 July 2015
Document number R4521, agenda pages 16 - 17 refer.
It was noted that the workshop referred to in the Review of Economic Development Services action item had been held.
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Resolved GOV/2015/019 THAT the Status Report Governance Committee 9 July 2015 (R4521) and its attachment (A1160658) be received. Noonan/Her Worship the Mayor Carried |
8. Chairperson's Report
The Chairperson commended Council on the work done to produce the Long Term Plan 2015-25.
9. Fire Services Review: Submission
Document number R4507, agenda pages 18 - 28 refer.
Manager Emergency Management, Roger Ball, presented the report.
Mr Ball advised he had seen submissions from Tasman District Council and Local Government New Zealand, both of which were in favour of Option 2: Coordinated service delivery as well as being open to Option 3: One national fire service.
In response to questions, Mr Ball confirmed that the current shortage of volunteers had been central to the fire services review. He said the responses to the review had been mixed, with the balance of conversation about Options 2 and 3. Mr Ball said some centres were concerned that Option 3 would reduce local engagement in fire services.
In response to a question, Mr Ball advised that under Options 2 and 3, councils would be relieved of their rural fire authority responsibility, which would require a change to legislation. The Committee supported this as a means to reduce cost and responsibility for Council.
In response to questions, Mr Ball said it was not clear what would happen with existing fire service assets, and the proposed submission included reference to this. He said there were inequities in the current funding arrangements which would need to be addressed during the review.
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Resolved GOV/2015/020 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. McGurk/Noonan Carried |
10. Memorandum of Understanding for Uniquely Nelson 2015-16
Document number R4517, agenda pages 29 - 89 refer.
Group Manager Community Services, Chris Ward, and Uniquely Nelson Manager, Cathy Madigan, presented the report.
Ms Madigan said Uniquely Nelson had been participating fully in the review of economic development services and was looking forward to working with the new structure in the future. She highlighted the independence of Uniquely Nelson as it focussed on promoting the central business district (CBD) as a destination.
Attendance: Councillor Matheson left the meeting at 10.48am.
In response to a question, Ms Madigan said the revenue generating subcommittee referred to in the Business Plan 2015-16 had not yet been established. She advised that Uniquely Nelson would be having a strategic planning session in August to determine key priorities.
In response to a question, Mr Ward said the outcomes in the Memorandum of Understanding had been jointly agreed between Uniquely Nelson and Council. He advised that the presentation of Uniquely Nelson’s annual report to the Governance Committee was Council’s opportunity to review the performance of Uniquely Nelson.
Attendance: Councillor Matheson returned to the meeting at 10.56am.
It was pointed out that minor edits were needed to the Memorandum of Understanding.
In response to a question, Mr Ward advised that Council officers would be reviewing the CBD Wi-Fi service and presenting this information to a future Governance Committee meeting.
A suggestion was made that Uniquely Nelson could be proactive about commercial vacancies in the CBD. Ms Madigan pointed out that the matter was complex, and Uniquely Nelson did not have the expertise to be involved. She highlighted that several shops were vacant because they did not meet the building code.
In response to a question, Ms Madigan provide detail on the bonus radio airtime included in the Profit and Loss Forecast. She explained the business plan had been written in February 2015.
In response to a question, Ms Madigan explained that a system involving paid membership would result in valuable time and resource spent chasing up fees. She suggested a targeted rate could be used if this was linked to the inner city differential rate.
Concern was raised that the Memorandum of Understanding did not contain reference to leveraging value from events and tourism. Ms Madigan said she supported work on events and tourism, and it was agreed this would be added.
Attendance: The meeting adjourned from 10.17am to 10.44am.
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Resolved GOV/2015/021 THAT the report Memorandum of Understanding for Uniquely Nelson 2015-16 (R4517) and its attachments (A1380525, A1380520 and A1380518) be received; AND THAT minor alterations be made to the Memorandum of Understanding as discussed by the Governance Committee. Noonan/McGurk Carried |
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Recommendation to Council GOV/2015/022 THAT the amended Memorandum of Understanding between Uniquely Nelson and Nelson City Council (A1380525) is approved for signing. Noonan/McGurk Carried |
REPORTS FROM COMMITTEES
11. Audit, Risk and Finance Subcommittee - 18 June 2015
Document number M1286, agenda pages 104 - 110 refer.
Mr John Peters summarised the Audit, Risk and Finance Subcommittee meeting held on 18 June 2015.
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Resolved GOV/2015/023 THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 18 June 2015, be received. Peters/McGurk Carried |
Attendance: Councillor Acland left the meeting at 10.50am.
12. Commercial Subcommittee - 18 June 2015
Document number M1288, agenda pages 111 – 115 refer.
Mr John Murray summarised the Commercial Subcommittee meeting held on 18 June 2015.
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Resolved GOV/2015/024 THAT the unconfirmed minutes of a meeting of the Commercial Subcommittee, held on 18 June 2015, be received. Murray/Noonan Carried |
13. Forestry Harvest on Dun Mountain Walkway
Document number R4539, late item memo M1335 refers.
The Chairperson advised that as a result of the extraordinary Commercial Subcommittee meeting on 9 July 2015, there was a public late item to be considered.
Concern was raised about the timeliness of the late item and the lack of awareness for the public.
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Resolved GOV/2015/025 THAT the item regarding Forestry Harvest on Dun Mountain Walkway be considered at this meeting as a major item not on the agenda, pursuant to Section 46A(7)(a) of the Local Government Official Information and Meetings Act 1987, to enable a timely decision to be made. Matheson/McGurk Carried |
Attendance: The meeting adjourned from 11.00am to 11.07am, during which time Councillor Acland returned to the meeting.
Acting Manager Operations, Marg Parfitt, presented the report.
Ms Parfitt explained the uncertainty surrounding the value of the forestry block due to market movements.
Ms Parfitt summarised the options available to Council if it didn’t harvest the forestry block.
In response to concerns about traffic management, Ms Parfitt tabled a map of traffic movements (A1387677) which had been provided with the consent application. She said the same traffic movement methodology as the last major forestry harvest in The Brook would be used.
In response to a question, Ms Parfitt advised the logging trucks would not be going past the Brook Valley Motor Camp.
The Chief Executive, Clare Hadley, provided detail on the forestry management contract which would be publicly tendered near the end of 2017.
In response to questions about harvest timing, Ms Parfitt explained the fixed costs that applied to the forestry block. She said the focus was on the return on trees against the fixed costs of growing them.
Ms Parfitt explained the difficulty of trying to harvest the forestry block once the Brook Waimarama Sanctuary Fence was in place. She detailed the conditions applied to the non-notified resource consent.
In response to a question, Group Manager Corporate Services, Nikki Harrison said matters relating to the forestry block would not directly impact rates as it was a closed account. She added that changes may impact debt levels.
There was discussion on contingent liability if the Sanctuary fence was damaged.
It was noted that further forestry matters would be presented to the Commercial Subcommittee as part of the forestry review, and this would include consideration of the post-harvest use of the Dun Mountain Walkway site.
Concern was raised about logging trucks navigating the right turn from Westbrook Terrace into Seymour Street. Mrs Hadley confirmed there would be six logging trucks into the site and six logging trucks out, five days a week, for a period of 12-15 weeks.
It was questioned whether the logs could be sent over the Tantragee Saddle and up Maitai Valley Road.
In response to a question, Ms Parfitt advised that the contract with P F Olsen was for the administration and management of Council-owned forestry and was not site specific.
Environmental Reserves Supervisor, Lindsay Barber, advised that 30% of the forestry block was export grade, and the remainder would be used for various local needs.
Projects Adviser – Roading, Chris Porteners, explained that the success of the pest-proof Sanctuary fence was based on the pest eradication process that would occur over winter once the fence was constructed. He said if the fence had to be taken down, which would be a length of approximately 1.2km, the pest-eradication process would need to be repeated.
Concern was raised that more information was needed on the risk of delaying the harvest.
Attendance: The meeting adjourned from 12.02pm to 12.10pm.
Concern was raised that the community had not been engaged on this matter. Concern was also raised that the proposed harvesting time was not ideal weather wise.
It was agreed that the matter would be transferred to Council for its meeting on 23 July 2015, where further information would be presented.
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Resolved GOV/2015/026 THAT the report Forestry Harvest on Dun Mountain Walkway (R4490) and its attachment (A1373078) be received; AND THAT the Governance Committee transfer its delegations regarding the matter of the forestry harvest on Dun Mountain Walkway to the Council, for its meeting on 23 July 2015. Matheson/McGurk Carried |
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Attachments 1 A1387677 - Tabled Document - Traffic Management Map for Dun Mountain Trail Forestry Block Harvest |
14. Exclusion of the Public
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Resolved GOV/2015/027 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: Peters/Noonan Carried |
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Governance Committee Meeting - 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 |
The meeting went into public excluded session at 12.15pm and resumed in public session at 12.37pm.
15. Re-admittance of the Public
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Resolved GOV/2015/028 THAT the public be re-admitted to the meeting. McGurk/Peters Carried |
There being no further business the meeting ended at 12.37pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
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Governance Committee 20 August 2015 |
REPORT R4580
Tourism Nelson Tasman Limited Statement of Intent 2015/16
1. Purpose of Report
1.1 To approve the Tourism Nelson Tasman Limited (NTT) Statement of Intent (SOI) 2015/16 (attachment 1).
2. Delegations
2.1 The Governance Committee has the power to recommend that Council approve, alter, amend or otherwise require documents from Nelson City Council Controlled Organisations and Nelson City Council Controlled Trading Organisations, including statements of intent, half yearly reports and appointments of directors.
3. Recommendation
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THAT the report Tourism Nelson Tasman Limited Statement of Intent 2015/16 (R4580) and its attachments (A1389793 and A1389798) be received. |
Recommendation to Council
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THAT the Tourism Nelson Tasman Limited Statement of Intent 2015/16 (A1389798) be approved for signing. |
4. Background
4.1 Tourism Nelson Tasman presented its draft Statement of Intent to the Governance Committee on 23 April 2015. This was referred on to Council for consideration due to timing issues. At its meeting of 30 April 2015, Council resolved:
THAT the Tourism Nelson Tasman Board be asked to make the following changes to the draft Statement of Intent (A1325267):
· Add an objective, performance measure and target in relation to leveraging tourism opportunities from events, both programmed and unprogrammed
· Provide separate reporting and financial information on Nelson City and Tasman District Council funding
· Provide increased information on trends, how Nelson Tasman Tourism will respond to them
· Include a work stream in relation to marketing of Nelson within New Zealand to campervans and independent travellers
· Prioritise activities by return on investment focussing on the areas that will deliver greatest benefit.
4.2 NTT submitted a revised Statement of Intent (attachment 1) prior to 30 June 2015, in line with its statutory requirements. Further changes were requested and a final SOI was received on 4 August. NTT also provided a cover letter to explain changes made (attachment 2).
5. Discussion
Changes made to the Draft SOI
5.1 NTT has addressed the issues raised by Council. In summary:
· An additional KPI has been included in relation to leveraging tourism opportunities. Concerns have been expressed about the ability to fund unprogrammed marketing costs from set budgets;
· There is a commitment to provide separate reporting and financial information on Nelson City and Tasman District Funding;
· Increased reporting on trends will take place;
· NZ Motorhome and Caravan Association has been identified as a strategic partner to address marketing of Nelson to this sector;
· The Board confirms that the contents of the SOI have been prioritised but that further changes may be required once the Strategic Review has been finalised.
6. Options
6.1 The Committee can either approve the Statement of Intent for signing or request further changes. Officers believe that the SOI as presented should be approved for signing.
7. Alignment with relevant Council policy
7.1 This decision is part of a statutory process. Support for NTT is consistent with the Council’s community outcome of our region is supported by and innovative and sustainable economy.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision in terms of Council’s significance and engagement policies.
9. Consultation
9.1 No consultation has been carried out other than with Tourism Nelson Tasman Limited.
10. Inclusion of Māori in the decision making process
10.1 No specific consultation has been carried out with Maori.
11. Conclusion
11.1 Tourism Nelson Tasman Limited has submitted a revised SOI that is compliant with Schedule 8 of the Local Government Act 2002 and which incorporated some changes requested previously by Council.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1389798 - Tourism Nelson Tasman Limited Statement of Intent 2015/16
Attachment 2: A1389793 - Tourism Nelson Tasman SOI 2015/16 cover letter
Minutes of an extraordinary meeting of the Commercial Subcommittee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 9 July 2015, commencing at 10.19am
Present: Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillors L Acland and G Noonan, and Mr J Peters
In Attendance: Councillors I Barker, P Matheson, B McGurk, and T Skinner, Chief Executive (C Hadley), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Manager Communications (P Shattock), Manager Administration (P Langley), Administration Adviser (S McLean), and Youth Councillors J Lankshear and E Thomas
Attendance: The meeting adjourned from 10.20am to 10.29am.
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. Harvesting of the Dun Mountain Forestry Block
Document number R4536, agenda pages 4 - 5 refer.
Concerns were raised about the timeliness of this matter and why information had not been presented earlier.
The Chief Executive, Clare Hadley, said that advice from the forestry management consultant had resulted in the matter coming to an extraordinary Commercial Subcommittee meeting for timeliness. She highlighted that the Subcommittee had been recently established and Council officers were adjusting to timeframes around the new decision making process.
Mrs Hadley explained the other commitments that influenced the harvesting decision, largely the construction of the Brook Waimarama Sanctuary Fence in November 2015. She said the harvesting could not have been done earlier due to the Tasman Road upgrade.
Mrs Hadley pointed out that there would be a bigger impact on the community if the harvesting was done over summer, which was the busier time for users of the Dun Mountain Trail.
Mrs Hadley said if the matter was not considered at this meeting then a report would be delayed until the Council meeting in September 2015.
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Resolved COM/2015/012 THAT the report Harvesting of the Dun Mountain Forestry Block (R4536) be received; AND THAT the Commercial Subcommittee transfer its delegations regarding forestry to the Governance Committee, in respect of harvesting of the Dun Mountain forestry block. Acland/Peters Carried |
There being no further business the meeting ended at 10.42am.
Confirmed as a correct record of proceedings:
Chairperson
Date
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 30 July 2015, commencing at 1.00pm
Present: Mr J Peters (Chairperson), Councillors I Barker and B McGurk, and Mr J Murray
In Attendance: Chief Executive (C Hadley), Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Accounting Services Manager (L Anderson), and Administration Adviser (S McLean)
Apology: Her Worship the Mayor Rachel Reese
1. Apology
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Resolved AUD/2015/018 THAT an apology be received and accepted from Her Worship the Mayor Rachel Reese. Barker/McGurk Carried |
2. Confirmation of Order of Business
The Chairperson advised of one late item for the public part of the meeting, and that the following resolution needed to be passed for the items to be considered:
2.1 Capital Projects 2014/15
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Resolved AUD/2015/019 THAT the item regarding Capital Projects 2014/15 be considered at this meeting as a major item not on the agenda, pursuant to Section 46A(7)(a) of the Local Government Official Information and Meetings Act 1987, to enable a timely decision to be made. Barker/McGurk Carried |
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 18 June 2015
Document number M1286, agenda pages 6 - 12 refer.
It was noted that as the only business transacted in public excluded on 18 June 2015 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 existed.
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Resolved AUD/2015/020 THAT the minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 18 June 2015, be confirmed as a true and correct record. Murray/McGurk Carried |
6. Status Report - Audit Risk and Finance Subcommittee - 30 July 2015
Document number R4596, agenda pages 13 - 14 refer.
In response to questions, the Chief Executive, Clare Hadley, advised that only resolutions containing actions were included in the status report.
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Resolved AUD/2015/021 THAT the Status Report Audit, Risk and Finance Subcommittee 30 July 2015 (R4596) and its attachment (A1324298) be received. McGurk/Barker Carried |
7. Chairperson's Report
The Chairperson asked for further information to be provided to the Subcommittee on matters such as internal audit and risk management framework.
In response to a request from the Chairperson, the Chief Executive, Clare Hadley, advised that an internal appointment had been made to the Internal Audit position. She said there had not been any suitable applications to the Risk Management Analyst position, and alternative arrangements for that role were being looked into. Mrs Hadley added she was very pleased with the experience the new Manager Organisational Assurance brought to the organisation.
Group Manager Corporate Services, Nikki Harrison, said an internal audit charter was being prepared for the 10 September 2015 Subcommittee meeting.
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Resolved AUD/2015/022 THAT the verbal Chairperson’s Report be received; AND THAT information on the risk management framework, Subcommittee work plan, internal audit work plan, and internal audit charter be provided at the next Subcommittee meeting. Peters/Murray Carried |
8. Update on charging interest on general debtors
Document number R4579, agenda pages 15 - 22 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to a question, Ms Harrison advised that penalties charged on rates and water were lump sum charges and this was a different process to charging interest.
There was discussion on the Draft Debt Management Policy and the allowance for charging interest at the discretion of the Group Manager Corporate Services.
In response to a suggestion that spreadsheets could be a viable alternative, the Chief Executive, Clare Hadley, cautioned the Subcommittee that running a manual workaround process to charge interest would increase the risk of error. She said Council would either need to invest in additional technology or determine that a process for charging interest was not warranted.
Mrs Hadley highlighted that general debtor levels were low and outstanding debts were only a small portion of debtors.
There was discussion on penalties set by local government legislation, which were integrated into the current accounting software.
Ms Harrison confirmed Council’s terms of trade would reflect the ability to charge discretionary interest.
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Resolved AUD/2015/023 THAT the report Update on charging interest on general debtors (R4579) and its attachment (A1353429) be received; AND THAT Council do not proceed with charging interest on all overdue general debtors at this time. Barker/McGurk Carried |
Mrs Harrison tabled the debt collection process used by officers (A1396334).
Accounting Services Manager, Lynn Anderson, provided detail on the debt collection process after 60 and 90 days.
In response to a question, Ms Anderson said marina debt was managed by Nelmac to a certain extent.
Ms Harrison confirmed the debt collection process would be included in the Draft Debt Management Policy.
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Recommendation to Governance Committee and Council AUD/2015/024 THAT the Draft Debt Management Policy (A1353429) be approved. Barker/McGurk Carried
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Attachments 1 A1396334 - Tabled Document - Action and Collect Debtors Overdue Accounts Process |
9. Update on business case approach
Document number R4454, agenda pages 23 - 27 refer.
In response to questions, Mrs Hadley confirmed the capital expenditure projects listed in Attachment 1 to the report (A1331113) were reported to Council in various ways. She advised the Civic House Renewal Programme would be reported to the Commercial Subcommittee as and when there was any information to report within the delegations for the Subcommittee.
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Resolved AUD/2015/025 THAT the report Update on business case approach (R4454) and its attachment (A1331113) be received. Murray/Barker Carried |
10. Corporate Report to 31 May 2015
Document number R4523, agenda pages 28 - 48 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report and tabled an updated NCC Variance to Projection 31 May 2015 table (A1396340).
It was noted that information on Maitai Walkway financials had been requested at the 18 June 2015 Subcommittee meeting and would need to be included in the Corporate Report to the 10 September 2015 Subcommittee meeting.
Ms Harrison highlighted there would be a larger carry forward than expected this financial year. In response to a question, she confirmed the carry forward figure did not include gifted or vested land. Concern was raised that carry forwards could appear to the community that Council had rated for work which was not carried out.
In response to a question, Ms Harrison clarified that carry forwards were a separate issue to surplus funds, and were related to funding policy decisions. Ms Harrison added that the Long Term Plan 2015/25 had reduced contingency funding in order to avoid overrating. She said a portion of future carry forwards would be allocated to paying down debt.
In response to a question, the Chief Executive, Clare Hadley, advised the criteria for allocating funding for economic development projects and events was tight and was focussed on extending the shoulders of peak seasons in Nelson. She said there were few applications that matched the criteria. Group Manager Community Services, Chris Ward, confirmed this matter was being considered with the economic services review.
There was discussion on the Ridgeways Joint Venture. Ms Harrison advised she would be looking into ways to reduce holding costs on the Ridgeways land.
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Resolved AUD/2015/026 THAT the report Corporate Report to 31 May 2015 (R4523) and its attachments (A1376070, A1384382, A1384389, A1375171, A1366415, A793514) be received and the variations noted. Murray/McGurk Carried |
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Attachments 1 A1396340 - Tabled Document - NCC Variance to Projection 31 May 2015 |
11. Capital Projects 2014/15
Document number R4646, late item M1381 pages 2 - 4 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
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Resolved AUD/2015/027 THAT the report Capital Projects 2014/15 (R4646) be received. Barker/McGurk Carried |
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Recommendation to Governance Committee and Council AUD/2015/028 THAT Council approves continuing work on 2014/15 capital projects within the 2014/15 approved budgets, noting a report on carry forwards will come to the Audit, Risk and Finance Subcommittee meeting on 10 September 2015. Barker/McGurk Carried
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12. Rates Remissions for 2014/15
Document number R4204, agenda pages 49 - 60 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to a question, Ms Harrison said there were occasions where a level of judgement was required for rates remissions, and peer reviews often took place.
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Resolved AUD/2015/029 THAT the report Rates Remissions for 2014/15 (R4204) and its attachments (A1383906 and A1222068) be received. Murray/McGurk Carried |
13. Insurance Renewal for 2015/16
Document number R4245, agenda pages 61 - 64 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
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Resolved AUD/2015/030 THAT the report Insurance Renewal for 2015/16 (R4245) be received. McGurk/Barker Carried |
14. Bad debt report to 30 June 2015
Document number R4206, agenda pages 65 - 66 refer.
The Subcommittee congratulated officers on the low level of bad debts.
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Resolved AUD/2015/031 THAT the report Bad debt report to 30 June 2015 (R4206) be received. Murray/Barker Carried |
15. 2014/15 Audit New Zealand Letters
Document number R4433, agenda pages 67 - 87 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report and tabled the interim Audit New Zealand letter to management (A1371564).
There was discussion on the Subcommittee’s future involvement on audit matters. Ms Harrison confirmed the Subcommittee would receive the draft Annual Report at its meeting on 10 September 2015.
It was agreed that Ms Harrison would arrange a meeting between the auditor and the members of the Subcommittee in September or October 2015.
In response to questions, it was confirmed there was an internal interests register for the Senior Leadership Team, which was soon to be rolled out to other levels of the organisation. It was also confirmed that Council had a Procurement Policy which was clear on conflicts of interest, and there was a ‘whistle-blowing’ service available.
There was discussion on the reference to independent quality assurance reviews in the audit letter. The Chief Executive, Clare Hadley said this would be considered as and when appropriate.
Questions were raised on fraud protection measures used by Council. Ms Harrison highlighted that the Subcommittee work programme due to be presented on 10 September would provide clarity on this.
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Resolved AUD/2015/032 THAT the report 2014/15 Audit New Zealand Letters (R4433) and its attachments (A1371563 and A1372353) be received. AND THAT the Subcommittee support the engagement letter being signed by Her Worship the Mayor. Murray/McGurk Carried |
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Attachments 1 A1371564 - Tabled Document - Management Letter, Interim audit of NCC - Audit New Zealand |
There being no further business the meeting ended at 3.12pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
