AGENDA
Ordinary meeting of the
Governance Committee
Thursday 21 April 2016
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 room for discussion and voting on any of these items.
Governance Committee
21 April 2016
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 M1747
Recommendation
THAT the minutes of the extraordinary meeting of the Governance Committee, held on 3 March 2016, be confirmed as a true and correct record.
6. Status Report - Governance Committee 21 April
There is no status report.
Governance
8. Sister Cities Update - April 2016 18 - 22
Document number R5529
Recommendation
THAT the report Sister Cities Update - April 2016 (R5529) and its attachment (A1523258) be received.
9. The Bishop Suter Trust draft Statement of Intent 2016/17 and Half Yearly Report 23 - 71
Document number R5352
Recommendation
THAT the report The Bishop Suter Trust draft Statement of Intent 2016/17 and Half Yearly Report (R5352) and its attachments (A1512564, A1512571, A1463949 & A1512573) be received;
AND THAT the Committee notes the delivery of the Bishop Suter Trust Draft Statement of Intent 2016/17 (A1512571) as required under the Local Government Act 2002.
Recommendation to Council
THAT the Bishop Suter Trust Statement of Intent 2016/17 (A1512571) meets Council’s expectations and is approved as the final Statement of Intent for 2016/17;
AND THAT a one off grant of $10,000 be allocated to the Suter to allow free entry for locals for the 2016/17 year;
AND THAT the Trust report back to Council as part of its preparation of the 2017/18 draft Statement of Intent on the positive and negative impacts of free entry for locals.
10. Half Yearly Reports - Nelson Regional Economic Development Agency and Tourism Nelson Tasman Ltd. 72 - 110
Document number R5589
Recommendation
THAT the report Half Yearly Reports - Nelson Regional Economic Development Agency and Tourism Nelson Tasman Ltd. (R5589) be received;
AND THAT the Half Yearly report of the Nelson Regional Economic Development Agency (A1511501) be received;
AND THAT the Half Yearly report of Tourism Nelson Tasman Ltd. (A1511411) be received.
11. Service Level Reviews Progress Update 111 - 117
Document number R5577
Recommendation
THAT the report Service Level Reviews Progress Update (R5577) and its attachment (A1528999) be received.
12. Draft Health and Safety Management System Strategic Plan 118 - 157
Document number R4207
Recommendation
THAT the report Draft Health and Safety Management System Strategic Plan (R4207) and its attachment (A1398549) be received.
Recommendation to Council
THAT the Draft Health and Safety Management System Strategic Plan (A1398549) be approved.
13. Responses to Mr Neal's public forum, 3 March 2016 158 - 214
Document number R5726
Recommendation
THAT the report Responses to Mr Neal's public forum, 3 March 2016 (R5726) and its attachments (A1512793, A1530211, A1534021, and A1533960) be received;
AND THAT it be noted that the allegation of collusion has been considered and found to have no basis.
14. Audit, Risk and Finance Subcommittee - 31 March 2016 215 - 221
Document number M1801
Recommendation
THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 31 March 2016, be received.
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.
14.1 Extension of loan facility to the Melrose Society
Recommendation to Governance Committee and Council
THAT the $15,000 funding allocated towards asbestos remediation in Melrose House in 2016/17 be brought forward to 2015/16 and be used to grant fund the Melrose Society for the purpose of toilet refurbishment;
AND THAT an additional unbudgeted grant of up to $42,000 is provided to the Melrose Society for the purpose of toilet renovations in the 2015/16 financial year;
AND THAT the Melrose Society be informed that no further grants will be made by Council to the Melrose Society for the toilet refurbishment and chiller installation project.
14.2 Corporate Report to 31 January 2016
Recommendation to Governance Committee and Council
THAT the unspent 2015/16 Community Investment Fund operational budget of $21,300 be carried forward to the 2016/17 financial year, bringing the total budget for 2016/17 for the Community Investment Fund to $327,000.
15. Commercial Subcommittee - 31 March 2016 222 - 225
Document number M1803
Recommendation
THAT the unconfirmed minutes of a meeting of the Commercial Subcommittee, held on 31 March 2016, be received.
Public Excluded Business
Recommendation
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 - Public Excluded Minutes - 3 March 2016 |
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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
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2 |
Nelmac half yearly report and draft Statement of Intent 2016/17
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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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3 |
Potential exit from Ridgeways Joint Venture
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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 |
Commercial Subcommittee Meeting - Public Excluded Minutes - 31 March 2016 These minutes contain a recommendation to Governance Committee and Council regarding Forestry |
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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities. |
17. Re-admittance of the public
Recommendation
THAT the public be re-admitted to the meeting.
Note:
· Youth Councillors Carys Collins and Taylah Shuker will be in attendance at this meeting. (delete as appropriate)
Minutes of an extraordinary meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 3 March 2016, commencing at 1.30pm
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillors L Acland (Deputy Chairperson), K Fulton, P Matheson, B McGurk, G Noonan, and Mr J Murray and Mr J Peters
In Attendance: Councillor M Lawrey, Chief Executive (C Hadley), Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Senior Strategic Adviser (N McDonald), Manager Communications (P Shattock), Administration Adviser (S Burgess), and Nelson Youth Councillors (F Sawyer and L Wilkes)
Apologies: Councillors E Davy and P Rainey
1. Apologies
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Resolved GOV/2016/001 THAT apologies be received and accepted from Councillors Davy and Rainey. McGurk/Noonan Carried |
2. Confirmation of Order of Business
The Chairperson advised that a public forum presentation had been arranged since the agenda was distributed.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
4.1 Kerry Neal
Mr Neal tabled a document (A1512793) and spoke on behalf of the Nelson Residents Association, raising concerns about the Trafalgar Centre budget and unbudgeted amounts for roading for the Trafalgar Centre project. He spoke about health and safety in employment versus safety provisions in the Building Act 2004. Mr Neal suggested that the Victory Room at the Trafalgar Centre had been demolished without adherence to Council’s Significance and Engagement Policy.
Mr Neal advised the Nelson Residents Association had no intention of organising at considerable cost any local government candidates meetings in 2016. On a personal note, he raised concerns about the Mayor’s interaction with a contractor.
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Attachments 1 A1512793 - Kerry Neal Tabled Document |
5. Confirmation of Minutes
5.1 5 November 2015
Document number M1580, agenda pages 9 - 15 refer.
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Resolved GOV/2016/002 THAT the minutes of the meeting of the Governance Committee, held on 5 November 2015, be confirmed as a true and correct record. McGurk/Matheson Carried |
5.2 24 December 2015 - Extraordinary Meeting
Document number M1670, agenda pages 16 - 18 refer.
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Resolved GOV/2016/003 THAT the minutes of the extraordinary meeting of the Governance Committee, held on 24 December 2015, be confirmed as a true and correct record. Matheson/Fulton Carried |
6. Status Report - Governance Committee- 3 March 2016
Document number R5557, agenda pages 19 - 20 refer.
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Resolved GOV/2016/004 THAT the Status Report Governance Committee 3 March 2016 (R5557) and its attachment (A1160658) be received. Noonan/McGurk Carried |
7. Chairperson's Report
The Chairperson noted the recent release of the draft Annual Plan 2016/17 for consultation.
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Resolved GOV/2016/005 THAT the verbal Chairperson’s Report be received. Barker/Noonan Carried |
8. Audit, Risk and Finance Subcommittee Terms of Reference and Delegations Update
Document number R4931, agenda pages 21 - 28 refer.
The Chief Executive, Clare Hadley, presented the report.
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Resolved GOV/2016/006 THAT the report Audit, Risk and Finance Subcommittee Terms of Reference and Delegations Update (R4931) and its attachments (A1437349 and A1507355) be received. Peters/Murray Carried |
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Recommendation to Council GOV/2016/007 THAT the Audit Risk and Finance Subcommittee draft Terms of Reference (A1437349) be adopted; AND THAT the Delegations Register be updated as illustrated in (A1507355) to: - include a reference to the Audit, Risk and Finance Subcommittee Terms of Reference; - remove Health and Safety from the Audit, Risk and Finance Subcommittee’s area of responsibility. Peters/Murray |
9. Audit, Risk and Finance Subcommittee - 12 November 2015
Document number M1593, agenda pages 29 - 35 refer.
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Resolved GOV/2016/008 THAT the minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 12 November 2015, be received. Peters/Murray Carried |
9.1 Internal Audit Plan and Procedure
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Recommendation to Council GOV/2016/009 THAT the Internal Audit Plan to 30 June 2016 (A1452073) be approved, with the amendment: · Under the heading ‘Extension for Action Plans’, insert the words “or organisational risk” after the words “no safety-related issues”. Peters/McGurk |
9.2 Liability Management Policy amendment
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Recommendation to Council GOV/2016/010 THAT the amended Liability Management Policy (A1450461) be adopted. Peters/Murray |
10. Commercial Subcommittee - 24 December 2015
Document number M1664, agenda pages 36 - 38 refer.
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Resolved GOV/2016/011 THAT the unconfirmed minutes of an extraordinary meeting of the Commercial Subcommittee, held on 24 December 2015, be received. Murray/Noonan Carried |
11. Audit, Risk and Finance Subcommittee - 18 February 2016
Document number M1712, agenda pages 39 - 47 refer.
It was advised there had also been discussion at the Subcommittee meeting regarding risks to elected members.
Attendance: Councillor Matheson left the meeting from 1.50pm to 1.52pm.
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Resolved GOV/2016/012 THAT the unconfirmed minutes of a meeting of the Audit, Risk and Finance Subcommittee, held on 18 February 2016, be received. Peters/Murray Carried |
11.1 Corporate Report to 31 December 2015
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Recommendation to Council GOV/2016/013 THAT Council resolves to fund the additional expenditure for Tasman Street from the following activities; Roading subsidised budgets ($119,000), Roading unsubsidised budgets ($117,000) and Stormwater budgets ($92,000), a total of $328,000, from operational and capital expenditure budgets as appropriate, noting that any individual project underspends which cover this overspend will be reported by 30 June 2016; Peters/Matheson Carried |
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Recommendation to Council GOV/2016/014 AND THAT funding of $100,000 for the Stoke Foothills Traffic Study be deferred from 2015/16 to 2016/17; AND THAT funding of $100,000 for the Atawhai Hills Traffic Study be brought forward from 2016/17 to 2015/16. Peters/Murray Carried |
11.2 Letter to the Council on the audit for the year ending 30 June 2015
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Recommendation to Council GOV/2016/015 THAT Council notes Audit NZ’s comments (A1499499) and how officers intend to address the issues raised. Peters/Her Worship the Mayor |
11.3 Internal Audit Report to 31 December 2015
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Recommendation to Council GOV/2016/016 THAT Council note the internal audit findings, recommendations and status of action plans up to 31 December 2015 (R5452). Peters/Murray |
12. Exclusion of the Public
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Resolved GOV/2016/017 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: Acland/Matheson 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 Meeting - Public Excluded Minutes - 5 November 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)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person. |
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2 |
Extraordinary Governance Committee Meeting - Public Minutes - 24 December 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. · Section 7(2)(j) To prevent the disclosure or use of official information for improper gain or improper advantage. |
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3 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded Minutes - 12 November 2015 These minutes do not contain a recommendation to the Governance Committee |
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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4 |
Extraordinary Commercial Subcommittee Meeting Minutes - Public Excluded Minutes - 24 December 2015 The recommendation to the Governance Committee in these minutes was considered at the extraordinary Governance Committee meeting on 24 December 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. · Section 7(2)(j) To prevent the disclosure or use of official information for improper gain or improper advantage. |
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5 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded Minutes - 18 February 2016 These minutes contain a recommendation to the Governance Committee regarding ‘Letter to the Council on the audit for the year ending 30 June 2015 – Utilities Contract’ |
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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. · 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 1.57pm and resumed in public session at 2.04pm.
13. Re-admittance of the Public
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Resolved GOV/2016/018 THAT the public be re-admitted to the meeting. Peters/Acland Carried |
There being no further business the meeting ended at 2.04pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
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Governance Committee 21 April 2016 |
REPORT R5529
Sister Cities Update - April 2016
1. Purpose of Report
1.1 To receive the report from the Sister Cities Coordinator.
2. Delegations
2.1 Sister City relationships are an area of responsibility of the Governance Committee.
3. Recommendation
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THAT the report Sister Cities Update - April 2016 (R5529) and its attachment (A1523258) be received. |
4. Background
4.1 Nelson has three Sister City relationships and one friendly city relationship:
· Miyazu, Japan
· Huangshi, Hubei, People's Republic of China
· Eureka, California, United States
· Yangjiang, People’s Republic of China (friendly city).
4.2 Council has appointed a Sister City Co-ordinator to oversee community activity in relation to Sister Cities.
5. Discussion
5.1 Sister City relationships can deliver social, cultural and economic outcomes. It is important that Councillors are aware of these relationships and of opportunities to further enhance them.
5.2 The Sister Cities co-ordinator reports to the Governance Committee twice each year. The attached report (Attachment 1) covers the last six months worth of activities.
6. Alignment with relevant Council policy
6.1 Provision has been made in the Long Term Plan for Sister Cities activities and these are consistent with the Council outcome of Our communities are healthy, safe, inclusive and resilient.
7. Assessment of Significance against the Council’s Significance and Engagement Policy
7.1 This is not a significant decision in terms of the Significance and Engagement Policy.
8. Consultation
8.1 No consultation has been carried out in preparing this report.
9. Inclusion of Māori in the decision making process
9.1 Maori have not been consulted on this report.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1523258 - Sister City Coordinator Report March 2016
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Governance Committee 21 April 2016 |
REPORT R5352
The Bishop Suter Trust draft Statement of Intent 2016/17 and Half Yearly Report
1. Purpose of Report
1.1 To seek Council approval of the Bishop Suter Trust Statement of Intent 2016/17 (Attachment 1).
1.2 To receive the Bishop Suter Trust half yearly report (Attachment 2).
2. Delegations
2.1 The Governance Committee is responsible for all matters relating to Council Controlled Organisations and Council Controlled Trading Organisations.
3. Recommendation
Recommendation to Council
4. Background
4.1 The Bishop Suter Trust, along with the other Council Controlled Organisations (CCO’s), must deliver a half yearly report to Council (s66 of the Local Government Act 2002). This should report on the organisation’s operations during that half year, and include any information required by its Statement of Intent (SOI). The report allows the Council an opportunity to monitor the performance of the CCO in relation to its set objectives and Council’s overall aims and outcomes.
4.2 The half yearly report of the Bishop Suter Trust for the period ending 31 December 2015 is attached (attachment 1).
4.3 Each CCO must also submit a draft Statement of Intent (SOI) to Council by 1 March indicating its proposed activities for the following financial year (s). The draft SOI prepared by the Trust is attached (attachment 2).
4.4 The Mayor wrote to the Trust in November of last year with the Council’s expectations for matters to be addressed by the Trust in the 2016/17 SOI . A copy of the Letter of Expectation that was sent to the Trust is attached (attachment 3). The specific expectations were:
· re-building visitor numbers and the visitor experience in the new facility including consideration of the admission charging structure to the gallery;
· develop an Asset Management Plan in relation to the new facilities;
· demonstrating regional leadership in the arts sector;
· developing effective partnerships;
· meeting the required accounting standards;
· have processes in place for the identification of risks other than health and safety.
4.5 The Chairperson, Craig Potton, and Suter Director, Julie Catchpole, will be in attendance at the meeting to present the information and answer questions. The Trust has chosen to present a three year draft SOI. This is useful in that it helps show the strategic direction the Trust is taking over the medium term, however the SOI will still need to be reviewed and updated annually.
5. Discussion
Half Yearly Report
5.1 The Suter continues to operate from its temporary premises in Halifax Street and has held a number of exhibitions over the reporting period. The Trust has worked with collaboratively with the Provincial Museum and the Elma Turner Library and is on track to meet its public programmes targets.
5.2 It is pleasing to note that the Trust has been awarded a 3 year contract by the Ministry of Education to fund a half time educator.
5.3 The focus of the Trust has been on the Suter redevelopment, which is has progressed well.
Draft Statement of Intent 2016/17
5.4 The Trust’s focus is now turning from the construction of the building towards the activities and operation of the new building. This includes the celebration launch planned for 1 October 2016.
5.5 The Trust’s key priorities identified in the draft SOI are to:
5.5.1 Operate a successful visual arts centre and public art gallery
5.5.2 Engage, educate and entertain the regional community and visitors through visual arts programmes, exhibitions and life-long learning opportunities
5.5.3 Collect, record, interpret and preserve the artistic heritage of the Nelson/Tasman region and New Zealand
5.5.4 Build Partnerships that sustain the Suter.
5.6 The Trust highlights some uncertainties in relation to the year ahead, and notes that there will be disruption to its activities as it transitions between the temporary premises and the redeveloped Suter between August and October 2016.
Entry Fees
5.7 The Suter has requested an additional $20,000 funding from Council to allow general admission to the Suter (attachment 4). Previously all visitors were charged, although entry was free on Saturdays.
5.8 Both Founders Heritage Park and the Provincial Museum currently offer free general admission to locals, with visitors to Nelson being charged. Officers recommend that the Suter pilots that approach for one year and reports back to Council, and reports back to Council on the impacts of that change both positive and negative. Local visitor numbers would be expected to increase, donations may increase, and admission charge revenue may decrease.
5.9 A consistent approach would be to allow for free entry for locals whilst retaining the entry charge for visitors.
6. Options
6.1 There is no decision to be made on the half yearly report. The Trust has complied with the legislation in preparing and presenting the report to Council.
6.2 In relation to the SOI, the Committee can choose to either submit feedback to the Trust Board 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 Governance Committee in July.
6.3 Officers believe that the draft Statement of Intent is sufficiently developed to be approved as the final version.
6.4 In relation to admission charges, the Committee can indicate to the Trust if it supports free entry to all, free entry to locals or the status quo. Officers recommend that the free entry to locals be the preferred option, given current practice at Founders and the Museum, and given the contribution ratepayers have made to the redevelopment and to the core operating costs of the Suter. This could be trialled for one year to allow an assessment of the benefits and impacts of the changes on visitor numbers, donations and income from admission charges.
6.5 The Committee could recommend that Council increase funding to the Suter to cover these costs, or not. There is some uncertainty over the impact of removing admission fees on the ability of the Trust to increase revenue through donations. Officers recommend that a one off additional grant of $10,000 be allocated to allow a pilot period to proceed.
7. Alignment with relevant Council policy
7.1 This decision is a statutory process. Support for the Suter is consistent with the Council’s outcome of ‘Our communities have opportunities to celebrate and explore their heritage, identity and creativity.’
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 Policy.
9. Consultation
9.1 No consultation has been carried out in relation to the recommendations.
10. Inclusion of Māori in the decision making process
10.1 No specific consultation has been carried out with Maori. Local iwi are represented on the Trust Board.
11. Conclusion
11.1 The Bishop Suter Trust 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 be made, and the Committee may decide to recommend to Council that the draft SOI be approved as the final SOI for the 2016/17 year.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1512564 - Bishop Suter Trust Half Yearly Report
Attachment 2: A1512571 - Bishop Suter Trust Statement of Intent 2016-19
Attachment 3: A1463949 - Letter of Expectation sent to Bishop Suter Trust
Attachment 4: A1512573 - Cover letter to Statement of Intent - Bishop Suter
2. STATEMENT OF INTENT
2016/2019
THE BISHOP SUTER TRUST
Registered Office: Temporary Office (2015/16)
208 Bridge Street, Nelson 28 Halifax Street, Nelson
P.O. Box 751, Nelson 7040
CONTENTS
1. The Bishop Suter Trust Statement of Intent 2016-2019
1.1. Executive Summary: 2016 | 2019 An Exceptional Year 3
1.2 Organisation Description 4
2. Nature and Scope of the activities to be undertaken 4
2.1 Trust’s Purpose, Mission & Values 4
2.2 Key priorities 5
2.3 Alignment with NCC outcomes 8
3. Objectives, Performance Measures and Targets 9
4. Operating Framework 11
4.1 Background 11
4.2 Governance, Stakeholders and Staffing 12
5. Operating Environment 12
6. Accountability 14
6.1 Information to be provided to the NCC 14
7 Prospective Financial Statements 15
7.1 Introduction 15
7.2 Statement of Significant Assumptions 15
Appendices:
I. Financial Budgets 17
II. The Bishop Suter Trust Statement of Accounting Policies 21
i. Reporting Entity 21
ii. Basis of preparation 21
iii. Significant Accounting Policies 22
III. The Trust’s Approach to Governance 26
As a Nelson City Council (NCC), council-controlled organisation(CCO) and in accordance with statutory obligations of Section 64 of the Local Government Act 2002, this Statement of Intent is for the forthcoming financial year 2016/17 and the following two financial years, ending 30 June 2019.
The purpose of this Statement of Intent is to promote public accountability and it is intended as a base against which performance can be assessed.
Executive Summary: 2016 | 2017 An Exceptional Year
In October 2016 The Suter will re-open its significantly larger, state-of-the-art complex on its historical site at 208 Bridge Street. Early on in the 2016/17 financial year The Suter Art Gallery will cease operating from temporary premises at 28 Halifax St, Nelson to relocate to the redeveloped site. We will, however continue to run an exhibitions programme, provide educational services and a retail outlet as long as is feasibly possible at the temporary site, whilst packing the collection and preparing the opening suite of exhibitions and related festivities alongside completing the fit-out of the Bridge Street premises.
As this document has been prepared ahead of the completion of the building and activation of the services within the redeveloped site, some of the running costs for the new facilities can only be a best estimate based on current information available. The configuration of the new building will necessitate new ways of working to provide good customer service, safety of visitors and staff alike and ensure security of exhibits.
The Gallery re-launch will be a time of celebration, and promoted widely to generate awareness and encourage as many of the community as possible to come and visit their public art gallery and theatre, and encounter treasured art works from the collection. Thereafter word-of-mouth should become a powerful promotional method.
Free entry to The Suter exhibition galleries will be key to boosting visitor numbers and which philosophically fulfils the desire of major funders of the redevelopment project; - that the Gallery remove as many barriers to accessibility as possible, be they physical or financial.
There are challenges in achieving these aspirations, not the least financial, particularly since there will be by necessity, a period in 2016 where the revenue generating activities of The Suter will be impacted due to relocation, and unavoidably, a period of time before lease and rental income streams can be re-established.
The 2016/17 financials will include some one off costs associated with the transition and opening. The next two years’ financials are our best estimates of the shape of the operational financials in normal operating mode.
1.2. Organisational description:
The Suter Art Gallery Te Aratoi o Whakatū is governed by the Bishop Suter Trust, incorporated under the Charitable Trusts Act 1957, and is a not-for- profit entity established to deliver a public art gallery service for residents of Nelson and Tasman and visitors to the region. The Bishop Suter Trust has charitable status with the Inland Revenue Department and is registered with the Charities Commission.
The Suter is a council-controlled organisation whereby the NCC has the right to directly appoint 1 or more of the trustees.
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Abbreviations used in this document: |
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The Suter Art Gallery |
The Suter |
The Bishop Suter Trust |
The Trust |
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Nelson City Council |
NCC |
Tasman District Council |
TDC |
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Council Controlled Organisation |
CCO |
Long Term Council Plan |
LTP |
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Nelson Suter Art Society |
NSAS |
Ko Te Pouaranga |
KTP |
2 Nature and Scope of the Activities to be undertaken
The NCC’s expectation is that the activities of The Suter will engage the regional community and provide a service that is of value to that community as both the owners and customers. Further, the NCC expects that the activities of The Suter will support the objectives of the Nelson Tasman Regional Arts Strategy (2007), Arts Policy (July 2010) and Arts Activity Management Plan 2015 – 2025 (2015)
The Trust’s purpose is described by our Maori name Te Aratoi o Whakatū, which may be interpreted as “the pathway of art of/ for the Nelson region”
Our Mission: The Suter Te Aratoi o Whakatū is where we make art matter, by honouring our artistic heritage and proactively bringing new perspectives to our visitors through programmes of exhibitions, projects and the permanent collection, underpinned by a dedication to informed interpretation, learning opportunities and participation.
· Values: The following principles underpin decision making and set the standard for performance and interactions with The Suter’s communities of interest:
· Inclusive & accessible: Celebrating Aotearoa/New Zealand’s cultural heritage of Tangata Whenua and Tangata Tiriti; and all ages and abilities
· Innovative: Apply imaginative approaches to all our activities
· Customer focussed: Responsive and respectful of our visitors’ needs
· Professional: Upholding quality museum practices, underpinned with sound scholarship
· Dedicated to learning and participation
· Making a meaningful contribution to the region, and the country
· Sustainable: Able to attract resources, support for our activities and be a responsible ‘corporate’ citizen.
The activities of The Trust are:
· To manage and operate The Suter for the benefit of the residents of the Nelson/Tasman region and visitors.
· To promote the study, creation and appreciation of all forms of visual arts.
· To acquire, manage, interpret and preserve the Collection and taonga for the benefit of the residents and future generations of the Nelson/Tasman region and visitors.
· To develop and maintain partnerships for the mutual benefit of The Suter, the community and allied organisations.
2.2 Key Priorities:
2.2.1 Operate a successful visual arts centre and public art gallery
To be achieved by:
· Optimising the use of The Suter’s facilities and resources, in order to achieve its objectives.
· Working in partnership with the Nelson City Council to complete and open the redeveloped Suter as a visual arts centre; and continue to work with other potential funders and supporters to realize objectives.
· Undertaking arts related activities that will attract and engage the public increasing visitor numbers.
· Building the capability - people, facilities, funding streams and processes - to ensure operational sustainability and programme innovation.
The Redevelopment Project building phase will conclude in the 2015/16 financial year. After fit-out and a commissioning period, The Suter will be re-launched, planned to occur at the beginning of October 2016
Meanwhile The Suter will primarily operate out of its temporary site at 28 Halifax Street holding exhibitions, education programmes, storing its collection and operating its shop, until sometime in August 2016.
Staff will have also been working to build a new on-line presence for The Suter, researching and preparing the opening suite of exhibitions for the new Suter, as well as scoping out the programmes for following years.
The Trust will also be refreshing its methods of marketing and communication and looking to increase benefaction, patronage, membership (Friends and Patrons) and looking to build other supportive relationships.
Financial implications of the redevelopment have included the curtailing of The Suter’s capacity to earn revenue from some of its traditional sources such as leases, venue hire[1] and admission charges. There was also increased costs from renting the Halifax Street facilities [covered within the Redevelopment Project budget].
In the longer term, the redeveloped facilities will provide some additional revenue generating opportunities from venue hire, of areas such as the Foyer, and through activities in the Education Room.
The Project also impacted the value of building assets initially through impairment of existing building values due to the demolition of the majority of the complex (2014/2015) and the need to write down book values to reflect that. There will be a consequential increase in depreciation costs from investment in the rebuild project.
During the transition period staffing levels of The Suter dropped. The new premises will however, require staffing at the very least equivalent to, if not greater than pre-Redevelopment, in order to deliver a level of service commensurate with the new expansive facilities, to mitigate risk (e.g. security of the premises, exhibits and collection) and for health and safety reasons[2].
2.2.2. Engage, educate and entertain the regional community and visitors through visual arts’ projects and programmes:
To be achieved by:
Ø Providing a programme of exhibitions that appeal to a variety of audiences, and that present the visual arts in its many forms by local, national and where possible, international artists.
The Suter provides a programme of regularly changing exhibitions and these will be mounted in 3 large exhibition galleries, the intimate Contemplation Gallery and an outdoors sculpture walk and in other spaces including the Foyer. A further gallery space is planned for the NSAS for the purpose of running their own programme of changing exhibitions[3].
Ø Encouraging life-long learning by being a respected provider of curriculum relevant learning experiences outside the classroom [LEOTC] for the school sector, and provider of visual arts experiences for diverse audiences.
The Suter has been awarded a 3 year contract by The Ministry of Education for Provision of Learning Experiences Outside the Classroom for years 1-13 students of the Nelson/Tasman region. This resources a .5 Educator position.
The Suter delivers after-school programmes through the Suter Kids Club [SKC], and intends to develop further activity based art related classes and courses for audiences of various ages and abilities. These may be delivered in partnership with NSAS, NMIT or other organisations or individuals and will be held in the new Education Room, studio and other areas as appropriate.
Illustrated talks, lectures, floor-talks, opening previews, workshops and other events are held to complement and support projects and the exhibitions’ programme.
2.2.3 Collect, record, interpret and preserve the artistic heritage of the Nelson/Tasman region, and New Zealand
To be achieved by:
Ø Being the recognised custodian of Nelson/Tasman region’s artistic heritage by developing the Collection, disseminating information and increasing knowledge of the Collection.
Ø By profiling aspects of the Collection and Nelson/Tasman regions’ artists through exhibitions, loans, public programmes, publications, websites and other means.
Work will continue on making as many copyright cleared collection records as possible available on-line via www.nzmuseums.co.nz (a link from the Suter’s website will take visitors there). Some aspects of this project involve the community and volunteers
It is intended to publish a book featuring landscape and figurative works – highlights from the Suter’s collection, to coincide with the opening suite of exhibitions
New interpretative means will be investigated for implementation- to stimulate interest in the history of The Suter, its site, setting and the architecture, past and present.
2.2.4 Develop partnerships that sustain The Suter
To be achieved by:
Ø Developing partnerships which contribute to the delivery of programmes, development of the Collection, resources and other projects: - in particular the ongoing operational and collectionacquisitions’ funding of The Suter.
The Suter is supported through memberships: of The Friends of The Suter and the recently established Legacy Group. We will seek to increase memberships, expand membership categories and will provide activities to engage those who are generous in their support for the Gallery.
Ø Contributing to the fulfilment of the Nelson Tasman Regional Arts Strategy and Arts Policy by providing leadership in the area of visual arts.
Suter staff and Trustees have expertise that can be called upon to contribute to arts endeavours that enhance Nelson’s reputation and achieve economic, cultural and social outcomes.
2.3 Alignment with Nelson City Council Outcomes
People friendly places: By providing an arts centre in which inspiring art, heritage and cultural activities take place.
A strong economy: By encouraging a thriving arts, heritage and cultural community, through employment, exhibitions, promotion of Nelson region’s arts, and as a tourism attraction.
Kind, healthy people: By contributing to social well-being.
A fun, creative culture By providing opportunities for social engagement and recreation
Good leadership: By demonstrating leadership in the arts community, promoting the development of Nelson arts and being the recognised custodian of Nelson/Tasman region’s artistic heritage.
3.
Objectives, Performance Measures and Targets
NOTE: The following chart indicates objectives and goals for The Bishop Suter Trust for three years and the target levels of performance. The Suter will re-open in the 2016/17 financial year and there will potentially be a period when neither the temporary or new facility is open. This may or may not impact on the achievement of performance targets; also targets for future years may need to be adjusted in light of trends that emerge.
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3.1 GOVERNANCE: Operate a successful visual arts centre and public art gallery:
3.1.1. Successfully complete The Suter Art Gallery Redevelopment Project in partnership with NCC; Ensure that the overall Project design/ costs remain within the $12 million budgeted and that The Suter is completed to plan, budget and timeframe.
3.1.2 Provide an arts centre and visitor attraction: That is open 362 days of the year with a minimum of 110,000 visits to The Suter facilities. Report six monthly with visitor statistics and response.
3.1.3 Ensure that The Suter is well managed and operates within its agreed plans: Reports, plans and budgets meet set deadlines. The Risk Management Plan is reviewed annually and mitigation strategies identified are implemented.
3.1.4 Develop and implement a Marketing Plan which focusses on the attracting visitors and developing resourcing for The Suter (refer also 3.4); Report on progress.
3.1.5 Develop an asset management plan in relation to the new Suter facilities; Plan prepared 2016/17 for the ongoing maintenance of the redeveloped Suter.
3.1.6 Be a good employer by maintaining good employer policies and practices; Report on observance of policies, health & safety, turnover and related statistics.
3.2 VISITOR EXPERIENCE: Engage, educate and entertain the regional community and visitors through visual arts’ programmes: Exhibitions and life-long learning opportunities:
3.2.1 Provide a programme of regularly changing exhibitions: Report 6 monthly on progress.
3.2.2 Develop a forward exhibition programme that is diverse and stimulating, including internally produced and externally sourced exhibitions; Exhibitions scheduled that meet the needs and interests of a broad audience. Report 6 monthly on progress.
3.2.3 Provide public programmes which enhance appreciation and enjoyment of the visual arts; A minimum of 20 talks/ events/ activities are held per annum
3.2.4 Provide learning experiences for regional school students that support their NZ curriculum studies based on the Suter’s programmes and resources; Target is 3,000 students from 25 schools as per the Ministry of Education LEOTC Contract Milestones & post visit evaluations indicate 90% satisfaction ratings of “fine” to “great”. At least one Education Advisory Committee meeting held per annum.
3.2.5 Provide out-of-school art educational activities; Minimum 50 sessions of Suter Kids Club are delivered per annum.
3.2.6 Develop and provide other activity based learning opportunities: 2016/17 initiate programmes and report 6 monthly on progress.
3.3 COLLECTION: Collect, record, interpret and preserve the artistic heritage of the Nelson/Tasman region and New Zealand.
3.3.1 Develop the Suter’s Collection in accordance with The Suter’s Collection Policy; All acquisitions and de-accessions comply with the Collection Policy and related procedures. All acquisitions/de-accessions approved by the Trust and reported 6 monthly.
3.3.2 Maintain and develop the Acquisitions Fund & Collection Bequests to allow active collecting to occur; The acquisitions’ funds meet or exceed budget and all such funds are used for the purposes so designated.
3.3.3 The Collection, post- redevelopment is safely moved and installed into new storage systems; The Collection is stored in environmental conditions that are in line with accepted museum practice (including temperature 18-22˚C/ relative humidity 50-55%, pest control, archival materials, security and fire monitoring). There are no handling mishaps or other damage occurs to Collection items.
3.3.4 Collection records are significantly upgraded to increase accessibility and usability, as a part of a long term strategy to provide on-line access to copyright cleared Collection items and to enhance the reputation of the Collection; Collection items are uploaded to the internet site www.nzmuseums.co.nz; Loan and other collection requests are met; Progress reported six monthly.
3.3.5 Initiate collection related research projects, involving the community where possible, to enhance knowledge about the Collection. Continue subject indexing of the Collection. Disseminate knowledge of the Collection: Collection related items in media; Produce publication of Collection highlights to coincide with opening exhibitions; Participate in compiling the Nelson ‘craft’ story as a contribution to a NZ craft history project administered by Auckland Museum; Progress reported six monthly.
3.4 PARTNERSHIPS: Partnerships that sustain The Suter
3.4.1 Strengthen The Suter’s relationship with Iwi and Maori; Honour the kaupapa of the Memorandum of Understanding [MoU] with Ko Te Pouāranga; the Redevelopment reflects the relationship; KTP input to programmes and collection development. Report 6 monthly.
3.4.2 Actively engage in collaborative partnerships to support the projects and programmes of The Suter (refer to 3.2.1 and 3.3.2); Sufficient resources are achieved to support projects.
3.4.3 The Friends of The Suter (FOTS) and Legacy Group are enhanced; FOTS membership increases, activities and progress on patronage scheme reported 6 monthly.
3.4.4 The Suter contributes to other organisations and initiatives to promote Nelson/Tasman visual arts and heritage and provides leadership in fields of expertise to support the Council’s provision of social /cultural wellbeing: Report on contribution to the implementation of the Regional Arts Strategy, Heritage Strategy, regional museums network and other related initiatives; report on contribution nationally in areas of expertise.
4. Operating Framework
4.1. Background
The history of The Suter goes back to 1895 when Amelia Suter, widow of Bishop Andrew Burn Suter, gave a collection of art works and land to encourage the establishment of an art gallery, as a memorial to her late husband. Bishop Suter initiated the Bishopdale Sketching Club in 1889, the forerunner of the Nelson Suter Art Society Inc. whose Grabham Studio and McKee Gallery were later a part of The Suter. In 1896 the Bishop Suter Art Gallery Board of Trustees was formed, and a private Act of Parliament passed allowing the transfer and acquisition of property including the Gallery’s Queen’s Gardens site, the Matthew Campbell School buildings upon it and establishing a self- perpetuating form of trust.
The Bishop Suter Art Gallery Restructuring Act (2008) repealed The Bishop Suter Art Gallery Trustees Act (1896) and with the new Bishop Suter Trust established, the way was paved for The Suter to become a CCO of the Nelson City Council.
In May 1899 the Frederick de Jersey Clere designed Bishop Suter Memorial Art Gallery opened[4] adjoined to the former Matthew Campbell School building. On the 108th anniversary of the opening of the Original Gallery it was recognised as a Category II Historic Place. Later alterations and additions included further gallery spaces, workshop and studio, Theatre, foyer shop and café, the latter designed by Warren and Mahoney.
In early 2015 everything bar the Original Gallery and Suter Theatre were demolished to enable new state-of-the art facilities to be built. The lead architects for the Redevelopment were Jerram Tocker Barron, a Nelson based firm and the Project was a partnership between the Trust and Nelson City Council. Community involvement in The Suter is very evident in the significant financial contributions to the Redevelopment and to the Collection.
Over 90% of items in The Suter’s collection have been donated or acquired through benefaction. Of national significance, the Collection includes historical and contemporary art works and ceramics by New Zealand artists, plus some international works.
4.2 Governance, stakeholders and staffing
The Bishop Suter Trust has been formed by the NCC, as a charitable trust, and incorporated under the Charitable Trust Act (1957) to manage and operate The Suter Art Gallery Te Aratoi o Whakatū. As a CCO, the NCC are responsible for appointing the majority of the members of the Board, comprising 7 trustees, including a representative of Ko Te Pouāranga and ex-officio, Chair of the NSAS. Trustees are appointed for three year terms.
The Bishop Suter Art Gallery Trust Board has a longstanding relationship with the Nelson Suter Art Society Inc., a voluntary incorporated society which has traditionally occupied part of The Suter premises.
Friends of The Suter comprises between 400-500 memberships of which about a third are Life memberships. It is not an incorporated society. Members receive regular e-newsletters, and talks and other events are held to advance Friends’ appreciation of art in general as well as support for The Suter. Reciprocal Friends’ benefits have been agreed with Christchurch Art Gallery and Auckland Art Gallery.
The Legacy Group are patrons of The Suter who contribute to the 5 x 40 Acquisitions Fund / 10 x 10 Acquisitions Fund or otherwise choose to provide significant support for specific Suter programmes or projects such as the Suter Biennale Contemporary Art Project. They receive regular updates and have involvement in projects, plus events are held especially for them, in recognition of their generosity, interest and support.
Ko Te Pouāranga is the name of the group comprising representatives from each of the six recognised manawhenua Iwi organisations of Whakatu, Motueka and Mohua. A Memorandum of Understanding signed on 29/ 09/2014 with Ko Te Pouāranga establishes principles of partnership and confirms full, permanent as of right, Maori representation on the Board of The Suter as outlined in the Trust Deed.
Staffing: The Suter’s staffing complement in the temporary premises is 6.6 F.T.E.s and regular volunteer contribution equates to 24 hours per week on average. The proposed staffing complement for the new Suter is 7.9 F.T.Es
5. Operating Environment
The following factors are likely to influence The Suter over the next three years:
Visitor trends:
Statistics for the past few financial years show an average of 30,000 visits to the exhibitions. It is anticipated that this level of visitation will be improved upon in the new Suter by at the very least, 20%. With a successful café and theatre operating, approximately 90,000 people used aspects of The Suter complex prior to redevelopment and these activities make a significant contribution to awareness of and funding of the operation. The new facilities are more expansive and are fully accessible. These factors and The Suter being sited adjacent to the Queen’s Gardens and within a heritage precinct should make it a ‘destination attraction’ that see more people using the facilities and staying longer.
It is also very likely that there will be a surge in visits in the 2016/17 financial year, and as the novelty factor wears off visitor numbers should settle, but at a higher level than prior to the redevelopment.
In the past over 60% of visitors have been from the Nelson/Tasman area, the balance being tourists - the greatest proportion domestic travellers. Efforts have been made to increase awareness of The Suter through tourism media, at I-Sites, and crucially by re-developing www.thesuter.org.nz.
There is a seasonal pattern to visitation - with numbers of visits increasing notably through the tourist season (November-April) and The Suter being one of a relatively limited number of wet weather activities available to visitors in the region. It will also be an attractive and comfortable place to spend time with more exhibitions, activities of interest to families, air conditioning, longer opening hours and barrier-free access to all public areas. Other initiatives include programming that coincides with drawcard events such as the Adam Music Festival, Nelson Arts Festival and Light Nelson.
Technology:
As indicated above the internet is increasingly widely used to research places to visit, to provide virtual experiences, and to search collections. The Suter can further connect with audiences by mounting virtual exhibitions and having the Collection on line. Social media is also increasingly used to spread the word about what to see and do and we continue to work on providing Suter experiences ‘virtually’ as resources allow.
Technologies are increasingly an expected part of exhibitions- either as part of art works (new media, moving image/sound works) or to provide interaction opportunities and interpretation. Infrastructure to facilitate use of new technologies has been incorporated in the redevelopment of The Suter.
Collecting:
The Suter intends to continue developing its collection. Well over 90% of The Suter’s Collection has been acquired by donation- either of art works or funds, reflecting community input and ownership and it is intended that we continue to grow the Collection using funds raised. It is desirable for The Suter to actively collect if the Gallery is to provide a comprehensive record of the visual arts of Nelson/Tasman, contextualised in relation to developments in New Zealand art. A collection of national significance is both a drawcard and a source of local pride.
Contributors to the Acquisitions Fund will be actively involved in The Suter’s collection development and as our acquisitions’ programme gains momentum The Suter will continue to enhance our Collection of national significance.
The Trust’s philosophy is that the more Collection items are known and recognised, the more they will be sought out and treasured. To that end The Suter prioritises requests for loans or reproductions from its collection; is endeavouring to get as many items on line as possible and will be developing a series of quality publications featuring highlights of the Collection.
During the rebuild as much cataloguing and research information as could be practically gathered, was undertaken to facilitate development of online collection access, publishing and future exhibition preparation.
Resourcing:
The Suter’s main income streams are local government grants, leases, LEOTC Contract and life-long leaning activities, sales (retail and commissions), grants and sponsorships. Additional revenue comes from memberships, donations and events/activities. Venue hire opportunities post- Redevelopment include the refurbished Theatre, a new Café, the expansive Foyer and Education Room. A retail area is situated in the Foyer and features Suter related merchandise and hand crafted work by Nelson/Tasman region’s artists; all of which will contribute to increased income.
The Suter as a tourist attraction is vulnerable to any downturn in domestic or international tourism. Another area of vulnerability is in relation to its leases.
6. Accountability
6.1 Information to be provided to Nelson City Council
Half Yearly
By 28 February a six month report covering Statement of Financial Performance and Statement of Financial Position, performance against targets, commentary on activities, cash flow statement, and other such information as the Trustees consider necessary to enable an informed assessment of the Trust’s performance during the period being reported.
Annually:
Within three months of the end of the financial year (i.e. 30 September) the Trustees shall deliver to NCC an annual report which fulfils the requirements of Section 67 of the Local Government Act 2002, prepared to comply with International Financial Reporting Standards and audited financial statements in respect of the financial year, containing the following information as a minimum:
· A Trustees’ Report including a summary of the financial results, a review of operations, and a comparison of planned and actual performance in relation to objectives.
· A financial statement disclosing actual and budgeted revenue and expenditure and comparative figures from the previous financial report.
· A statement of financial position as at the financial year end.
· A statement of cash flows.
· An Auditor’s Report on the above statements and the measures of performance in relation to objectives.
· Any other matters that NCC and the Trustees agree shall be disclosed as appropriate.
This Annual Report shall be made available for inspection at Council offices.
7. Prospective Financial Statements
7.1. Introduction:
The Suter’s Statement of Intent covers the period 1 July 2016 to 30 June 2019. The financial information contained in the Statement of Intent has been prepared to assist the NCC consider The Suter’s planned performance.
The prospective financial statements are based on assumptions as to future events that The Suter may reasonably expect to occur at the time when this information was prepared. Actual results may vary, and this variation may be material, arising for instance from the redevelopment of The Suter.
7.2 Statement of Significant Assumptions
7.2.1. Fiscal support from local authorities: The Suter is a NCC CCO with the NCC’s commitment to long term funding support set out in a Memorandum of Understanding. The TDC also provides an annual contribution, and the basis of this commitment is set out in the TDC’s LTP, [previously annually adjusted for CPI]. To the extent the actual money allocated is less or more than that set out The Suter will need to adjust its activity levels.
7.2.2. Other revenues: Other revenues reflect forecast visitor activity levels consistent with historic trends, obligations of lessees and the restrictions and requirements of the Redevelopment Project.
7.2.3. Special Purpose Funds The Suter has historic and ongoing bequests, gifts and contributions that generally have restrictions on use. These funds are shown separately on the balance sheet.
7.2.4. Operating Expenditure Operating expenditure is forecast to continue at historic levels adjusted for inflation and the requirements of the Redevelopment Project.
7.2.5. Capital Expenditure The majority of Capital Expenditure during the period will relate to the Redevelopment of the Gallery and associated replacement of furniture and fittings.
7.2.6. Inflation: 1.6 % CPI adjustment was applied in the 2015/2016 financial year and 2% for the subsequent financial years’ projected revenue from the NCC.
7.2.7. Trustees’ Estimate of Trust Value: The Trustees estimate that the opening balance of funds in the annual accounts will represent the value of the Trust. The Trustees will advise NCC on an annual basis if they believe the value to differ materially from this state. The audited opening equity at 9 August 2008 is $9,593,656[5].
7.2.8. Heritage Assets: This is represented by the Collection. Additions to the Collection will be recorded at either purchase price or market valuation for donated art works. The Collection is not regarded as a realisable financial asset and valuation is carried out for the purposes of insurance and compliance with NZ IFRS.
7.2.9. Dividend Policy: It is important to note that the shareholders of the Trust do not expect, nor anticipate, the Trust to pay dividends in the usual commercial manner. However the Trust anticipates, through appropriate performance measures, to review annually the non-financial dividend which will be returned to our wider regional community.
aPPENDIX I: Financial BUDGETS
APPENDIX I: Financial Budgets continued
APPENDIX I: Financial Budgets continued
Notes to the 2016-2019 SOI Budgets:
§ The budgets clearly separate activities between operating and Special Purpose Funds which have independent and tagged purposes; these are:
o Cuthbertson Fund – a historic bequest whose capital is invested and growth tagged to purchase and care for collections items.
o Burton Fund – a historic bequest whose capital is invested and growth tagged to purchase collections items.
o 5 x 40 &10X10 Acquisitions Fund – Specific funds sought and held in trust to purchase collection items.
o Redevelopment Fund – This is the specific purpose fund raising that has enabled The Suter to implement a Redevelopment Plan and Project which physically commenced 12 January 2015.
APPENDIX II:
The Bishop Suter Trust Statement of Accounting Policies
Statement of significant accounting policies
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i. REPORTING ENTITY
The Bishop Suter Trust (the Trust) is a charitable trust incorporated in New Zealand under the Charitable Trusts Act 2005 on 5 April 2008 and is domiciled in New Zealand. The Trust is controlled by Nelson City Council as a Council Controlled Organisation as defined under section 6 of the Local Government Act 2002, by virtue of the Council’s right to appoint the Board of Trustees
The primary objective of the Trust is to provide the people of Nelson and visitors to the region access to our cultural heritage and to the many forms of contemporary cultural expression. This means communicating the diverse ideas and experiences that art offers to the widest possible audience by the presentation of quality visual arts programmes and by developing and caring for the permanent collection.
Accordingly, the Trust has designated itself as a public benefit entity for the purposes of New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS).
ii. BASIS OF PREPARATION
Compliance
The financial statements of the Trust will be prepared in accordance with the requirements of the Local Government Act 2002, which includes the requirement to comply with New Zealand generally accepted accounting practice (NZ GAAP).
Financial statements will be prepared in accordance with NZ GAAP and comply with NZ IFRS, and other applicable Financial Reporting Standards, as appropriate for public benefit entities.
Measurement base
The financial statements will be prepared on a historical cost basis.
Functional and presentation currency
The financial statements will be presented in New Zealand dollars and all values rounded to the nearest dollar. The functional currency of the Trust is New Zealand dollars.
Changes in accounting policies
No changes in accounting policies are anticipated. In the event there are, they will be disclosed.
iii. SIGNIFICANT ACCOUNTING POLICIES
Revenue
Revenue is measured at the fair value of consideration received.
Grants
Grants received from Nelson City Council and Tasman District Council are the primary sources of funding to the Trust and are restricted for the purposes of the Trust meeting its objectives as specified in the Trust’s Trust Deed. The Trust also receives grants from bodies such as Creative New Zealand, and these grants have restrictions on their use.
Council, government and non-government grants are recognized as revenue when they become receivable unless there is an obligation to return the funds if conditions of the grant are not met. If there is such an obligation, the grants are initially recorded as grants received in advance and recognised as revenue when conditions of the grant are satisfied.
Other revenue
Products held for sale are recognized when a product is sold to the customer.
Where art works are donated in the Trust for nil consideration, the fair value of the work is recognised as income.
Interest income is recognized on receipt.
Volunteer services received are not recognized as revenue or expenditure as the Trust is unable to reliably measure the fair value of the services received.
Advertising costs
Advertising costs are expensed when the related service has been rendered.
Borrowing costs
Borrowing costs are recognized as an expense in the period in which they are incurred.
Income Tax
The Trust has been granted Charitable status by the Inland Revenue Department, and therefore is exempt from income tax.
Leases
Finance Leases The Trust has no finance leases.
Operating leases
The Trust has 2 leases with other parties; these leases cover the Trust’s Theatre and the Café. Due to the imminent Redevelopment both leases have expired and the lessees are continuing on a quarter by quarter basis. Both have first option to re-contract in the redeveloped premises. The income received from the leases is recorded as income on receipt.
There are no incentives attached to the leases.
Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of 3 months or less, and bank overdrafts.
Bank overdrafts are shown within borrowings as a current liability in the statement of financial position.
Debtors and other receivables
Debtors and other receivables are usually paid within a month. Other than operational grants, debtors are not significant.
Inventories
Inventories are held at the lower of cost or net realisable value. Any Trust published inventory remaining after 2 years is written off.
Investments
Investments are shown at actual or realisable value.
Property, plant and equipment
Land and buildings were re-valued for the Trust’s opening balance. Plant and equipment were brought on at book value, i.e. cost less accumulated depreciation.
Additions
The cost of an item of property, plant and equipment is recognized as an asset if, and only if, it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably.
In most instances, an item of property, plant and equipment is recognized at cost. When an asset is acquired at no cost, or for a nominal cost, it is recognized at fair value when control over the asset is obtained.
Disposals
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount of the asset. Gains and losses on disposal are recognized in the statement of financial performance.
Subsequent costs
Costs incurred subsequent to initial acquisition are capitalized only when it is probable that future economic benefits or service potential associated with the item will flow to the Trust and the cost of the item can be measured reliably.
Depreciation
Depreciation is provide on a straight-line basis on all property plant and equipment at rates that will write-off the cost of the assets to their estimated residual values over their useful lives. The useful lives and associated depreciation rates of major classes of assets have been estimated as follows: Buildings 50 years (2%) Improvements 20 years (5%) Furniture and fittings 16 years (6.25%) Computer equipment 5 years (20%)
The residual value and useful life of an asset is reviewed, and adjusted if applicable, at each financial year end.
Intangible assets
Software acquisition:
Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software.
Costs associated with maintaining computer software are recognized as an expense when incurred.
Costs associated with the development and maintenance of the Trust’s website are recognized as an expense when incurred because the website is primarily promoting the Trust’s services.
Staff training costs are recognized as an expense when incurred.
Amortisation
Computer software licences are amortised on a straight line basis over their estimated useful life of 5 years. Amortisation begins when the asset is available for use and ceases at the date that the asset is disposed of. The amortization charge for each period is recognized in the Statement of Financial Position.
Impairment of property, plant and equipment and intangible assets
Property, plant and equipment are reviewed for impairment at each balance date. When impairment is recognised, the recoverable value of the asset is estimated, an impairment loss is recognised and the carrying value of the asset is reduced to its recoverable amount.
Impairment loss is recognised in the statement of financial performance.
Collection
The opening balance of the Collection is the deemed cost at market valuation at the commencement of the Trust. Items purchased for the Collection are recorded at cost. Items donated to the Collection are valued at the time of acquisition and recorded at valuation. In accordance with IFRS, the Trust will apply an impairment test to the Collection each year. The Collection is not depreciated.
Creditors and other payables
Creditors and other payables are measured at fair value.
Employee entitlements
Short term entitlements
Entitlements that the Trust expects to be settled within 12 months of balance date are measured at nominal values based on accrued entitlements at current rates of pay.
These include annual leave and holiday pay earned to, but not yet taken at balance date.
Borrowings
Borrowings are recognized at their fair value.
Good and Service Tax (GST)
All items on the financial statements are stated exclusive of GST, except for receivables and payables, which are stated on a GST inclusive basis. Where GST is not recoverable as input tax then it is recognized as part of the related asset or expense.
The net GST recoverable from or payable to, the Inland Revenue Department (IRD) is included as part of the receivables or payables in the statement of financial position.
The net GST paid to or received from the IRD, including the GST relating to investing and financing activities, is classified as an operating cash flow in the statement of cash flows.
Budget figures
The budget figures are those approved by the Trustees at the beginning of the year in the Statement of Intent. The budget figures have been prepared in accordance with NZ IFRS, using accounting policies that are consistent with those adopted by the Trust for the preparation of the financial statements.
Critical accounting estimates and assumptions
The Trust has makes a number of estimates and assumptions in the preparations of the financial forecasts. · that Council funding will be consistent with the Memorandum of Understanding and Community Plans · A consistent level of donations has been assumed · Commercial revenue is based on visitor numbers and historical performance · Expenditure costs have both an historical and an actual (if known) base
Critical judgement in applying the Trust’s accounting policies
The Trustees must exercise their judgement when recognizing grant income to determine if conditions of the grant contract have been satisfied. This judgement will be based on the facts and circumstances that are evident for each grant contract. |
Appendix III:
The TRUST’S approach to governance
GOVERNANCE PRINCIPLES
The Trust operates to the Principles and Guidelines for Corporate Governance in New Zealand, published by the Securities Commission New Zealand;
· Trustees should observe and foster high ethical standards.
· There should be a balance of independence, skills, knowledge, experience, and perspectives among Trustees so that the Board works effectively.
· The Board should use committees where this would enhance its effectiveness in key areas while retaining board responsibility.
· The Board should demand integrity both in financial reporting and in the timeliness and balance of disclosures on entity affairs.
· The remuneration of Trustees and executives should be transparent, fair, and reasonable.
· The Board should regularly verify that the entity has appropriate processes that identify and manage potential and relevant risks.
· The Board should ensure the quality and independence of the external audit process.
· The Board should foster constructive relationships with NCC that encourage them to engage with the entity.
· The Board should respect the interests of stakeholders within the context of the entity’s ownership type and its fundamental purpose.
THE ROLE OF THE TRUST BOARD
· Ensuring that the Trust operates in accordance with its Deed of Trust.
· Ensuring that the Trust meets its objectives as defined in this Statement of Intent.
· Ensuring the Trust complies with all its lawful obligations.
· Ensuring the NCC are kept well informed on all relevant issues and that there are “no surprises” on matters likely to cause community or political concern.
· Making any decisions as to policy that are not the preserve of general management and day-to-day administration.
· Employing the Gallery Director (including entering into a performance management agreement, reviewing performance and setting remuneration).
· Ensuring sound financial management of The Trust.
COMPOSITION OF THE BOARD
· The Board is made up of 5-7 non-executive Trustees.
· Trustees are appointed by resolution of Council in accordance with the Trust Deed of The Suter Trust and the Council’s policy for the appointment of Trustees.
· The Trustees appoint a Chairperson at the first meeting after the AGM.
BOARD REMUNERATION
· The NCC will set total remuneration for the Board. The Board will from time to time determine their remuneration and apportionment of this allocation cognisant of The Trust’s financial position.
· RISK MANAGEMENT POLICIES
· The Board shall ensure that appropriate insurance is maintained on all insurable risks of the Trust, and in particular public liability insurance and insurance of the heritage assets.
· The Board shall ensure that the Trust has procedures in place to achieve compliance with all applicable legislation.
Guidance and Resources Provided to Board Members.
Sound financial management and systems that provide reports to the Board as follows:
· Statement of financial performance for the preceding month, year to date and year end projections.
· Statement of financial position at the preceding month end.
· Statement of cash flow for the preceding month and monthly update on expected year end position.
· Gallery Director’s report addressing issues related to the Trust’s performance against objectives (financial and non-financial).
· The Board will ensure that relevant training opportunities are made available to Trustees.
This 2016/2017 Statement of Intent is dated
this................................................................day of .................................2016;
Signed for and on behalf of,
The Bishop Suter Trust _____________________________Chairperson
The Bishop Suter Trust______________________________Director
Nelson City Council ________________________________Mayor
Nelson City Council_________________________________Chief Executive
Rachel Reese, Mayor & Clare Hadley, Chief Executive 29 February 2016
Nelson City Council
P.O. Box 645
Nelson 7040
Dear Rachel & Clare
SoI 2016 to 2019
The Bishop Suter Trust, in submitting its Statement of Intent [SoI] 2016-2017 and responding to earlier correspondence, requests Council to consider providing an ongoing increase of $20,000 to the base operational grant of The Suter to enable free general admission to the galleries.
This sum will equate to the amount previously derived from admission charging, in the pre-redevelopment Suter. This request has not been allowed for in the prospective financial information.
The introduction to The Suter’s SoI sets out the major operational issues arising in 2016/17 financial year, which reflect the re-location and launch of the new (redeveloped) Suter occurring early on in the new financial year.
An underpinning philosophy of the Redevelopment project was the elimination of barriers to visiting The Suter- be they physical and/or financial.
Research in the NZ museum and gallery sector shows free admission boosts visitor numbers while the imposition of admission charges negatively impacts on visitation and charging discourages repeat visits.
Charging for special exhibitions is well understood in the NZ market. The Suter would prefer to adopt general free admission, and only charge for special exhibitions and some public programmes.
When the Gallery re-opens the Trust wants as many people to visit as possible, and the more that do, the greater the effect of word-of-mouth promotion will be.
The Trust records that the fifty percent funding of depreciation as agreed, has been allowed for in the plan. The Trust understands it will have to rise to the challenge to raise the other fifty percent renewals (depreciation and inflation component) and that will be the subject of ongoing campaigns similar to the recent one for the redevelopment. In the meantime the prospective financial information will show operational deficits after depreciation as shown in this draft SoI.
The Trust welcomes an opportunity to speak to our SoI, and answer any questions you may have of us.
Yours sincerely
The Bishop Suter Trust
Craig Potton
Chairman
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Governance Committee 21 April 2016 |
REPORT R5589
Half Yearly Reports - Nelson Regional Economic Development Agency and Tourism Nelson Tasman Ltd.
1. Purpose of Report
1.1 To receive the half yearly reports from the Nelson Regional Economic Development Agency (EDA, attachment 1)) and Tourism Nelson Tasman Ltd (NTT, attachment 2).
2. Delegations
2.1 The Governance Committee has responsibility 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
4. Background
4.1 The EDA and NTT are required to submit half yearly reports to Council to report on progress against the year’s programme as described in the statements of intent (SOI).
4.2 Usually Council also receives a draft SOI from these organisations. However, the new Nelson Regional Development Agency (NRDA) will assume responsibility for economic activities, including tourism, as of 1 July 2016. There is, therefore, no SOI from either the EDA or NTT for the 2016/17 year. The NRDA will be submitting a draft SOI to Council before the end of this financial year.
5. Discussion
Half Yearly report - EDA
5.1 The EDA continues to deliver a range of activities aligned with the Regional Economic Development Strategy. Key activities for the period include:
· The development of the Nelson Identity Project (also identified as a key regional priority by the NRDA Transition Group)
· Further development and enhancement of relationships in China
· The Te Tau Ihu O Te Waka a Maui Economic Summit.
5.2 The Trust continues to operate in a financially prudent way and the forecast deficit is in line with Council expectations. The EDA will also face additional costs associated with the establishment of the NRDA.
Half Yearly report - NTT
5.3 The report shows good year on year growth in visitors to the Nelson region.
5.4 The report details other activities in the period, including:
· The Royal Visit;
· Domestic Marketing;
· International Marketing, and;
· Conference and Incentive Marketing Activities
5.5 NTT reports equivalent advertising value of $11M from media hosting over the 6 months.
5.6 The Nelson iSite income is almost 5% below budget and the company reports a greater loss than budgeted for the six months to 31 December 2015.
6. Options
6.1 There is no decision to be made on the half yearly reports. The two organisations have complied with the legislation in preparing and presenting the report to Council.
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 in terms of Council’s Significance and Engagement Policy.
9. Consultation
9.1 No consultation has been carried out in relation to the report.
10. Inclusion of Māori in the decision making process
10.1 No specific consultation has been carried out with Māori.
11. Conclusion
11.1 The EDA and NTT have complied with the Local Government Act 2002 in preparing their half yearly reports.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1511501 - Nelson Regional Economic Development Agency Half Yearly Report
Attachment 2: A1511411 - Tourism Nelson Tasman Ltd Half Yearly Report
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Governance Committee 21 April 2016 |
REPORT R5577
Service Level Reviews Progress Update
1. Purpose of Report
1.1 To receive a quarterly report on the progress of the Section 17A Local Government Act review process.
2. Delegations
2.1 The Governance Committee has the area of responsibility for the monitoring of Council’s financial and service performance and reviews of specific activity areas.
3. Recommendation
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THAT the report Service Level Reviews Progress Update (R5577) and its attachment (A1528999) be received. |
4. Background
4.1 Changes to the Local Government Act 2002 (LGA) saw the introduction of new requirements under section 17A to review the cost-effectiveness of current arrangements for meeting the needs of communities within its district or region for good-quality local infrastructure, local public services, and performance of regulatory functions.
4.2 Reviews must consider options for the governance, funding and delivery of all Council services by 7 August 2017. The reviews are to consider a range of specified arrangements including having services delivered by a council controlled organisation, or by another local authority or other party.
4.3 At the 5 November 2015 Governance Committee meeting, the Committee resolved:
THAT approval is given for the proposed approach (as detailed in R5014) to review all applicable services in order to comply with the requirements of Section 17A of the Local Government Act 2002;
AND THAT a quarterly report back on the progress of the review be prepared for the Governance Committee.
4.3 This is the first quarterly progress report on Section 17A service reviews as approved under R5014.
5. CCOs / CCTOs
5.1 A question was raised at the Governance Committee meeting on 1 October 2015, about whether s17A also applied to how services were delivered by existing Council Controlled Organisations (CCOs) and Council Controlled Trading Organisations (CCTOs), including any contracts that are in place. Advice has been sought on this query from an independent advisor, from the Society of Local Government Managers (SOLGM), and from our own internal legal advisor.
5.2 Based on this advice, a possible approach is that s17A requires a review of whether delivery of a service should continue to be by a CCO/CCTO, but that the Act is unlikely to be interpreted so as to require a review of the contracts in place with that CCO/CCTO.
5.3 However, the Act is not sufficiently clear to make a final conclusion on the matter. Section 17A requires Council to use some judgement in assessing cost effectiveness of a current arrangement whereby a service is delivered by a CCO. Council has discretion as to how far this assessment extends. This could include some assessment of the cost effectiveness of contracting arrangements entered into by the CCO to achieve delivery of the service. It may depend on how the Council scopes the level of review required for that particular service.
5.4 Council will need to demonstrate that it has given “true consideration” to the cost effectiveness of the service delivery option by the CCO. This will involve a degree of judgement on a case by case basis.
6. Progress update
6.1 Since the 5 November 2015 Governance Meeting, progress has been made to finalise a template for undertaking service reviews, and a timeline of scheduled reviews has been prepared. The timeline is flexible, as appropriateness of timing may be influenced by external factors such as legislative change, or by internal factors such as staff availability.
6.3 Reviews that have been undertaken are noted in the following table:
|
Service |
Outcome |
|
Crematorium |
Continue with Council governance, funding and delivery |
|
Strategic Policy, Resource Management Planning, Bylaws and Asset Management Planning |
Continue with Council governance, funding and delivery |
|
Community Housing (Management) |
Continue with Council governance and external management |
|
Hardstand and Travel Lift Akersten Street |
Continue with Council governance and external management |
6.4 Reviews that have not already been before Council are attached.
6.5 Progress to date against the scheduled timeline:
7. Alignment with relevant Council policy
7.1 The service review process aligns with Council’s due diligence obligations and regular reviews of contract performance that are part of business as usual. This works supports the principles of Nelson 2060 and community outcomes in its achievement of work outcomes in the most cost-effective manner.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This paper contains no decisions that are significant in terms of Council’s Significance and Engagement Policy.
9. Consultation
9.1 No consultation has been undertaken as this work is a statutory requirement.
10. Inclusion of Māori in the decision making process
10.1 Maori have not been consulted on this project.
11. Conclusion
11.1 Council has a statutory requirement to undertake service level reviews across all its activities. Current progress is on track in accordance with the scheduled timeline.
Nicky McDonald
Senior Strategic Adviser
Attachments
Attachment 1: A1528999 - S17A Service Review. Strategic Policy, Resource Management Planning, Bylaws and Asset Management Planning
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Governance Committee 21 April 2016 |
REPORT R4207
Draft Health and Safety Management System Strategic Plan
1. Purpose of Report
1.1 To approve the Draft Health and Safety Management System Strategic Plan.
2. Delegations
2.1 The Governance committee is responsible for the oversight of Council’s health and safety obligations and monitoring of health and safety in the organisation. The Governance Committee has the power to recommend to Council strategies relating to its areas of responsibility.
3. Recommendation
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THAT the report Draft Health and Safety Management System Strategic Plan (R4207) and its attachment (A1398549) be received. |
Recommendation to Council
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THAT the Draft Health and Safety Management System Strategic Plan (A1398549) be approved. |
4. Background
4.1 Council is implementing a new Health and Safety Management System following the establishment of the Organisational Assurance business unit.
4.2 The Health and Safety Management System Governance Charter was approved by Council on 17 December 2015 after a workshop with Council on 3 December 2015. The Charter is the key document in this system and defines how Council sets health and safety expectations and strategy. It identifies how health and safety is managed at every level in the organisation. The attached Health and Safety Management System Strategic Plan puts in place a five year organisational plan to implement the high level objectives set out in the Charter.
5. Discussion
5.1 Under the new Health and Safety at Work Act 2015 which comes into effect on 4 April 2016, the Council and the Senior Leadership Team (SLT) assume many of the standard responsibilities that would normally sit with a Board of Directors. Councillors and members of SLT will be classed as “officers” under the new Act.
5.2 The New Zealand Institute of Directors Good Governance Practices Guideline for Managing Health and Safety Risks has been adopted as the guiding principles for Health and Safety Governance. These Guidelines recommend that “officers” should be involved in setting policy direction for health and safety management. Council’s consideration of the attached Health and Safety Management System Plan helps to demonstrate that commitment.
5.3 The Health and Safety Management System Strategic Plan outlines the core elements of good practice safety systems and culture expectations that Council aims to develop, based on its health and safety vision and objectives. The Strategic Plan also defines key performance objectives and key safety culture traits which shall be measured annually to track improvement over the five year life of the plan.
6. Options
6.1 Accept the recommendation – approve the Draft Health and Safety Management System Strategic Plan.
6.2 Reject the recommendation – not approve the Draft Health and Safety Management System Strategic Plan. However not having the Strategic Plan in place would mean that the organisation may not have a clear understanding of the organisation’s key health and safety expectations or elements for improvement.
7. Alignment with relevant Council policy
7.1 This decision is not inconsistent with any other previous Council decision.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 This is not a significant decision under the Council’s Significance and Engagement Policy.
9. Consultation
9.1 No consultation has been undertaken in preparing this Strategic Plan.
10. Inclusion of Māori in the decision making process
10.1 No consultation with Maori has been undertaken in preparing this Strategic Plan.
Roger Ball
Manager Organisational Assurance and Emergency Management
Attachments
Attachment 1: A1398549 - Draft Health and Safety Management System
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Governance Committee 21 April 2016 |
REPORT R5726
Responses to Mr Neal's public forum, 3 March 2016
1. Purpose of Report
1.1 To respond to statements made by Mr Kerry Neal at the Governance Committee meeting on 3 March 2016.
2. Delegations
2.1 The matters Mr Neal raised were within the delegations of the Governance Committee. It is appropriate the response is considered there.
3. Recommendation
4. Background
4.1 Mr Neal presented at the last Governance Committee meeting. The document he tabled at that meeting is attached (Attachment 1).
5. Discussion
5.1 The Governance Committee undertook to provide a written response to Mr Neal. The letter from the Chief Executive is attached (Attachment 2).
5.2 Mr Neal concluded his presentation by saying that he was speaking from a personal perspective (ie not on behalf of the Nelson Residents Association), and he went on to advise he had provided documents to Cr Acland that showed collusion between the Mayor and a contractor.
5.3 The Chief Executive considered this statement, and felt it appropriate to examine the material to satisfy herself that Council’s procurement processes were rigorous and met all ethical standards. A terms of reference for an independent review was prepared before the documents had been received by her.
5.4 Cr Acland provided the documents to the Chief Executive (Attachment 3). Upon reviewing the material, it became clear that the allegations had already been reported to other bodies, ie the Office of the Auditor General and the Minister of Local Government.
5.5 Mr Neal alleges collusion on the basis of a phone call between the Chairman of Gibbons Holdings Ltd and the Mayor. The contractor is a subsidiary of Gibbons Holdings (Gibbons Construction Ltd). This took place before a Council meeting on 16 July 2015, where the proposed solution for the Trafalgar Centre was tabled but not debated nor any decisions made.
5.6 This is not a new allegation. It remains unfounded. Upon receipt of the material the Chief Executive reconsidered the appropriate action and determined that in light of the fact that two government agencies had already considered it, it was not appropriate to spend further public funds.
5.7 In coming to that conclusion, the Chief Executive also reconsidered the procurement process which led to Gibbons Construction being appointed to provide for early contractor involvement. This was outlined in detail in a report to Council on 26 February 2015 (excerpt in Attachment 4). Although early contractor involvement was chosen, an open tender process still took place.
5.8 Finally, this matter was slightly delayed as a result of some confusion around the status of material received by an elected member. For clarity, documents and other material received by councillors in their capacity as a member of Council are discoverable under the Local Government Official Information & Meetings Act 1987 (excerpt in Attachment 5).
6. Options
6.1 The Committee can accept the Chief Executive’s advice, or reject it. If the Committee wishes to reject the Chief Executive’s advice, consideration should be given to what additional or alternative actions are required.
6.2 It is recommended that the Chief Executive’s advice be accepted.
7. Alignment with relevant Council policy
7.1 Not applicable to this report.
8. Assessment of Significance against the Council’s Significance and Engagement Policy
8.1 Not applicable to this report.
9. Consultation
9.1 Not applicable to this report.
10. Inclusion of Māori in the decision making process
10.1 Not applicable to this report.
Clare Hadley
Chief Executive
Attachments
Attachment 1: A1512793 - Kerry Neal Tabled Document - Governance Committee 3Mar2016
Attachment 2: A1530211 - Letter to Kerry Neal regarding Presentation at Public Forum at Govenance Committee 3 March 2016 meeting
Attachment 3: A1534021 - Correspondance from Kerry Neal to Councillor Acland 19Nov2015, 15Jan2016 and 21Feb2016
Attachment 4: A1533960 - Extract from report to Council 26Feb2015, ECI Process
Minutes of a meeting of the Audit, Risk and Finance Subcommittee
Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson (previously advertised to take place in Ruma Marama, Floor 2A, Civic House)
On Thursday 31 March 2016, commencing 12.21pm
Present: Mr J Peters (Chairperson), Her Worship the Mayor R Reese, Councillors I Barker and B McGurk, and Mr J Murray
In Attendance: Councillors E Davy, M Lawrey, P Matheson, and G Noonan, Chief Executive (C Hadley), Group Manager Infrastructure (A Louverdis), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Manager Communications (P Shattock), Manager Capital Projects (S Davies), Administration Adviser (S Burgess), and Audit New Zealand Auditor (B Kearney)
1. Apologies
There were no apologies.
Attendance: The meeting adjourned for lunch from 12.22pm to 12.43pm.
2. Confirmation of Order of Business
The Chairperson advised that item 10, Extension of loan facility to the Melrose Society, would be brought forward and considered after item 7, Chairperson’s Report.
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 February 2016
Document number M1712, agenda pages 8 - 17 refer.
It was noted there was a spelling error on page two of the minutes. It was asked that the final paragraph of the minutes be amended to reflect the issue was raised in response to a question.
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Resolved AUD/2016/018 THAT the amended minutes of the meeting of the Audit, Risk and Finance Subcommittee, held on 18 February 2016, be confirmed as a true and correct record. Murray/McGurk Carried |
6. Status Report - Audit, Risk and Finance Subcommittee - 31 March 2016
Document number R5657, agenda pages 17 - 18 refer.
|
Resolved AUD/2016/019 THAT the Status Report Audit, Risk and Finance Subcommittee 31 March 2016 (R5657) and its attachment (A1324298) be received. Barker/Murray Carried |
7. Chairperson's Report
The Chairperson thanked officers for the new format for the Corporate Report. He asked the Subcommittee to provide feedback to ensure the reporting fulfilled the needs of the Subcommittee.
8. Extension of loan facility to the Melrose Society
Document number R5575, agenda pages 56 - 74 refer.
Group Manager Community Services, Chris Ward, presented the report.
A suggestion was made that the full remaining cost of the toilet refurbishment, being up to $57,000, be granted to Melrose House, and that no funding be provided for the chiller installation. The Subcommittee supported this suggestion, highlighting that the building was deserving of good bathroom facilities.
Mr Ward highlighted that Council, through the current lease to the Melrose Society, had originally not supported a grant towards the bathroom renovations. He added that the Heritage Asset Management Plan was the mechanism for allocating funding in the area of heritage facilities, and if additional funding was available this should be prioritised from an asset management perspective.
Attendance: The meeting adjourned from 1.00pm to 1.04pm.
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Resolved AUD/2016/020 THAT the report Extension of loan facility to the Melrose Society (R5575) and its attachments (A1509577 and A1416892) be received. Her Worship the Mayor/Murray Carried |
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Recommendation to Governance Committee and Council AUD/2016/021 THAT the $15,000 funding allocated towards asbestos remediation in Melrose House in 2016/17 be brought forward to 2015/16 and be used to grant fund the Melrose Society for the purpose of toilet refurbishment; AND THAT an additional unbudgeted grant of up to $42,000 is provided to the Melrose Society for the purpose of toilet renovations in the 2015/16 financial year; AND THAT the Melrose Society be informed that no further grants will be made by Council to the Melrose Society for the toilet refurbishment and chiller installation project. Her Worship the Mayor/Murray Carried
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9. Corporate Report to 31 January 2016
Document number R5334, agenda pages 19 - 33 refer.
Senior Accountant, Tracey Hughes, and Manager Capital Projects, Shane Davies, presented the report
Mr Davies and Ms Hughes explained the new format of the Corporate Report and Subcommittee members provided feedback.
In response to questions, Ms Hughes gave further detail on underspends and operating expenditure. Group Manager Corporate Services, Nikki Harrison, further explained the variances in staff costs.
Attendance: The meeting adjourned from 1.23pm to 1.25pm.
In response to questions, further information was provided regarding staff vacancies, holiday pay, smart metering, long term plan budgets, debtors and capital projects. In response to a question, Mr Davies confirmed the $20,000 allocated to the Queens Garden Toilet was for design work.
There was discussion about funding being transferred from 2016/17 to 2015/16 for capital projects and the delegated authority for these decisions. Group Manager Infrastructure, Alec Louverdis, undertook to look into this matter to ensure the correct process was being followed.
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Resolved AUD/2016/022 THAT the report Corporate Report to 31 January 2016 (R5334) and its attachments (A1513082, A1311288, and A1514038) be received and the variations noted. Barker/Murray Carried |
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Recommendation to Governance Committee and Council AUD/2016/023 THAT the unspent 2015/16 Community Investment Fund operational budget of $21,300 be carried forward to the 2016/17 financial year, bringing the total budget for 2016/17 for the Community Investment Fund to $327,000. Barker/Murray Carried |
10. Audit Arrangement letter 2015/16
Document number R5508, agenda pages 34 - 55 refer.
Group Manager Corporate Services, Nikki Harrison, and Mr Bede Kearney of Audit New Zealand, presented the report.
In response to questions, Mr Kearney provided detail on performance measures, audit fee negotiation, sensitive expenditure, and Audit New Zealand’s use of baseline information.
|
Resolved AUD/2016/024 THAT the report Audit Arrangement letter 2015/16 (R5508) and its attachment (A1511332) be received; AND THAT the Subcommittee provide feedback on the Audit Arrangement letter to Audit NZ if required, noting the Mayor will sign the letter once the Subcommittee’s feedback has been incorporated. McGurk/Murray Carried |
11. Letter to Council on the audit for the year ended 30 June 2015 - further information
Document number R5640, agenda pages 75 - 84 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
|
Resolved AUD/2016/025 THAT the report Letter to Council on the audit for the year ended 30 June 2015 - further information (R5640) and its attachment (A1493673) be received. Barker/McGurk Carried |
12. Insurance renewal 2016/17 - infrastructure assets
Document number R5649, agenda pages 85 - 88 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
In response to questions, Ms Harrison provided further detail regarding the timing of the Treasury consultation on insurance cost sharing arrangements. She clarified that, although Council’s loss limit needed to be increased, the value of Council’s asset pool was appropriately insured.
The Subcommittee agreed that further information would be available in the coming months, therefore it would be appropriate to refer the matter to the Governance Committee, for its consideration and recommendation to Council.
Attendance: The meeting adjourned from 2.57pm to 3.00pm.
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Resolved AUD/2016/026 THAT the report Insurance renewal 2016/17 - infrastructure assets (R5649) be received; AND THAT the Subcommittee refers the matter of insurance renewal for Council’s infrastructure insurance to the Governance Committee for its consideration and recommendation to Council. Barker/McGurk Carried |
13. Exclusion of the Public
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Resolved AUD/2016/027 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: Her Worship the Mayor/Murray 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 |
Audit, Risk and Finance Subcommittee Meeting - Public Excluded Minutes - 18 February 2016 |
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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. · 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 3.04pm and resumed in public session at 3.05pm.
14. Confirmation of Minutes – Public Excluded
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.
Document number M1713, public excluded agenda pages 3 - 5 refer.
A correction was requested to the attendance section of the minutes.
|
Resolved AUD/2016/028 THAT the amended minutes of part of the meeting of the Audit, Risk and Finance Subcommittee, held with the public excluded on 18 February 2016, be confirmed as a true and correct record. Barker/McGurk Carried |
15. Re-admittance of the Public
|
Resolved AUD/2016/029 THAT the public be re-admitted to the meeting. Reese/Barker Carried |
There being no further business the meeting ended at 3.05pm.
Confirmed as a correct record of proceedings:
Minutes of a meeting of the Commercial Subcommittee
Held in the Council Chamber, Floor 2A, Civic House, 110 Trafalgar Street, Nelson (previously advertised to take place in Ruma Marama, Floor 2A, Civic House)
On Thursday 31 March 2016, commencing 3.14pm
Present: Mr J Murray (Chairperson), Her Worship the Mayor R Reese, Councillor G Noonan, and Mr J Peters
In Attendance: Councillors I Barker and B McGurk, Chief Executive (C Hadley), Group Manager Infrastructure (A Louverdis), Group Manager Corporate Services (N Harrison), and Administration Adviser (S Burgess)
Apology: Councillor Acland
1. Apology
|
Resolved COM/2016/001 THAT an apology be received and accepted from Councillor Acland. Her Worship the Mayor/Noonan Carried |
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 14 October 2015
Document number M1527, agenda pages 6 - 8 refer.
|
Resolved COM/2016/002 THAT the minutes of the meeting of the Commercial Subcommittee, held on 14 October 2015, be confirmed as a true and correct record. Her Worship the Mayor/Murray Carried |
5.2 24 December 2015 - Extraordinary Meeting
Document number M1664, agenda pages 9 - 11 refer.
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Resolved COM/2016/003 THAT the minutes of the extraordinary meeting of the Commercial Subcommittee, held on 24 December 2015, be confirmed as a true and correct record. Noonan/Her Worship the Mayor Carried |
6. Chairperson's Report
There was no Chairperson’s Report.
7. Exclusion of the Public
The Chief Executive, Clare Hadley, advised that an additional public excluded reason for the Forestry item was required, being Section 7(2)(b)(ii) ‘To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.’
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Resolved COM/2016/004 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 |
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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 Minutes - 14 October 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. · Section 7(2)(j) To prevent the disclosure or use of official information for improper gain or improper advantage. · Section 7(2)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. |
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2 |
Extraordinary Commercial Subcommittee Meeting - Public Excluded Minutes - 24 December 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.
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3 |
Forestry
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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 · Section 7(2)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information. |
The meeting went into public excluded session at 3.18pm and resumed in public session at 4.10pm.
8. Re-admittance of the Public
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Resolved COM/2016/005 THAT the public be re-admitted to the meeting. Noonan/Peters Carried |
There being no further business the meeting ended at 4.11pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
[1] Notably The Suter Theatre- lease and venue hire
[2] Volunteers will continue to add value to The Suter’s delivery of service but they cannot be expected to be accountable for security, health and safety etc.
[3] Of which 2 per annum, are planned to be more comprehensive and involve input from Trust staff.
[4] This building is now generally referred to as the Original Gallery
[5] This is the date when The Bishop Suter Trust assumed responsibility for governance of The Suter Art Gallery
