AGENDA
Ordinary meeting of the
Governance Committee
Thursday 20 April 2017
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Councillor Ian Barker (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Mel Courtney, Bill Dahlberg (Deputy Chairperson), Paul Matheson, Gaile Noonan, Mike Rutledge and Tim Skinner
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
20 April 2017
1.1 An apology has been received from Her Worship the Mayor Rachel Reese
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
Document number M2401
Recommendation
That the Committee
Confirms the minutes of the meeting of the Governance Committee, held on 9 March 2017, as a true and correct record.
6. Status Report - Governance Committee - 20 April 2017 22 - 23
Document number R7528
Recommendation
That the Committee
Receives the Status Report Governance Committee 20 April 2017 (R7528) and its attachment (A1160658).
Governance
8. The Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2017/18 24 - 77
Document number R7517
Recommendation
That the Committee
Receives the report The Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2017/18 (R7517) and its attachments (A1724808, A1724813, A1678353 and A1741148); and
Notes that changes to the Bishop Suter Trust draft Statement of Intent may be required following confirmation of funding within the draft Annual Plan 2017/18.
Recommendation to Council
That the Council
Provides the following feedback to the Bishop Suter Trust on its draft Statement of Intent:
· Seeks clarification in relation how the collection can be developed within the physical (storage) and financial (insurance) constraints.
Approves a grant of $15,000 to the Bishop Suter Trust to continue to allow for free entry to all visitors in 2017/18.
9. Nelson Regional Development Agency Half Yearly Report to 31 December 2016 and Draft Statement of Intent 2017/18 78 - 117
Document number R7439
Recommendation
That the Committee
Receives the report Nelson Regional Development Agency Half Yearly Report to 31 December 2016 and Draft Statement of Intent 2017/18 (R7439) and its attachments (A1726866, A1724816, A1678393 and A1740612); and
Notes that the final Statement of Intent will be subject to decisions made on Tasman District Council and Nelson City Council’s respective Annual Plans 2017/18.
10. Nelmac Limited six monthly report to 31 December 2016 118 - 124
Document number R7294
Recommendation
That the Committee
Receives the report Nelmac Limited six monthly report to 31 December 2016 (R7294) and its attachment (A1721866).
Public Excluded Business
Recommendation
|
Confirms, in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Rob Gunn and Lee Babe of Nelmac Ltd remain after the public has been excluded, for Item 4 of the Public Excluded agenda (Nelmac Limited draft Statement of Intent 2017/18), as they have knowledge that will assist the Council; Notes, in accordance with section 48(6) of the Local Government Official Information and Meetings Act 1987, the knowledge that Rob Gunn and Lee Babe possess relates to the Nelmac Limited draft Statement of Intent 2017/18. |
Recommendation
That the Committee
Excludes the public 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) |
|
1 |
Governance Committee Meeting - Public Excluded Minutes - 9 March 2017 |
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. |
|
2 |
Nelmac Limited draft Statement of Intent 2017/18
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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) |
12. Re-admittance of the public
Recommendation
That the Committee
Re-admits the public to the meeting.
Note:
· Youth Councillors Annie Tonks and Fynn Sawyer will be in attendance at this meeting. (delete as appropriate)
Minutes of a meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 9 March 2017, commencing at 10.23am
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillors M Courtney, B Dahlberg (Deputy Chairperson), P Matheson, G Noonan, M Rutledge, and T Skinner, Mr J Murray and Mr J Peters
In Attendance: Councillors B McGurk and S Walker, Chief Executive (C Hadley), Group Manager Infrastructure (A Louverdis), Group Manager Strategy and Environment (C Barton), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Senior Strategic Adviser (N McDonald), Manager Communications (P Shattock), Risk and Procurement Analyst (S Vaughan), Internal Audit Analyst (L Anderson), Administration Adviser (S Burgess), and Youth Councillors (L Bloomfield and L Wilkes)
Attendance: The meeting opened and adjourned from 10.23am to 10.50am.
1. Apologies
There were no apologies.
2. Confirmation of Order of Business
The Chairperson advised of one late item for the public excluded part of the meeting, and that the following resolution needed to be passed for the item to be considered:
2.1 Director appointment for Port Nelson Limited, Late Item Memo M2393 refers
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Resolved GOV/2017/001 That the Committee Considers the public excluded item regarding Director appointment for Port Nelson Limited at this meeting as a major item not on the agenda, pursuant to Section 46A(7)(a) of the Local Government Official Information and Meetings Act 1987, to enable a timely decision to be made. Noonan/Dahlberg Carried |
3. Interests
Mr Murray declared an interest in the public excluded late item, Director appointment for Port Nelson Limited.
There were no updates to the Interests Register, and no further interests with items on the agenda were declared.
4. Public Forum
4.1 Steve Cross - Nelson Residents Association
Mr Cross gave a PowerPoint presentation (A1726426) regarding asset disposal and procurement practices.
Several members of the Committee felt that a report on the matters raised would be appropriate.
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Resolved GOV/2017/002 That the Committee Requests that a report be prepared for the Governance Committee on the matters raised in the public forum presentation by Mr Steve Cross on 9 March 2017. Dahlberg/Skinner Carried |
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Attachments 1 A1726426 - Steve Cross PowerPoint |
5. Confirmation of Minutes
5.1 1 December 2016
Document number M2243, agenda pages 11 - 23 refer.
Mr Murray requested the following corrections to the minutes:
1. On page 15 of the agenda, in the second paragraph, the second sentence is to be replaced with ‘It was noted that Audit New Zealand would undertake a review of the Liability Management Policy and the Investment Policy at a level to suit its objective needs, and as Council’s needs were likely different, Council should undertake its own review of these policies.’
2. Additional sentence on page 16 of the agenda, in item 10, after the final paragraph: ‘While the Committee acknowledged the staff position, the Committee did not endorse not meeting the deadline due to lack of resources’.
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Resolved GOV/2017/003 That the Committee Confirms the amended minutes of the meeting of the Governance Committee, held on 1 December 2016, as a true and correct record. Murray/Rutledge Carried |
6. Status Report - Governance Committee - 9 March 2017
Document number R7256, agenda pages 24 - 26 refer.
Officers responded to questions regarding items on the status report.
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Resolved GOV/2017/004 That the Committee Receives the Status Report Governance Committee 9 March 2017 (R7256) and its attachment (A1160658) Dahlberg/Courtney Carried |
7. Chairperson's Report
Document number R7246, agenda pages 27 - 29 refer.
The Chairperson presented his report and summarised the Councillor Liaison role with the Nelson Tasman Business Trust (the Trust).
Councillor Rutledge was nominated for the liaison role. It was advised the Trust was aware the appointment was no longer at trustee level.
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Resolved GOV/2017/005 That the Committee Receives the report Chairperson's Report (R7246); and
Appoints Councillor Rutledge to the Councillor Liaison role for the Nelson Tasman Business Trust for the 2016 – 2019 triennium. Courtney/Noonan Carried |
8. Council Controlled Organisations: Local Government Act 2002 Obligations and Exemption
Document number R6609, agenda pages 30 - 34 refer.
Group Manager Community Services, Chris Ward, presented the report.
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Resolved GOV/2017/006 That the Committee Receives the report Council Controlled Organisations: Local Government Act 2002 Obligations and Exemptions (R6609). Skinner/Courtney Carried |
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Recommendation to Council GOV/2017/007 That the Council Approves a continued exemption to the City of Nelson Civic Trust for the purposes of Section 6(4)(i) of the Local Government Act 2002, in accordance with Sections 7(3) and 7(6) of the Act and after considering the matters in Section 7(5) of the Act. Rutledge/Dahlberg Carried |
9. Council's Key Organisational Risks 2017 First Quarterly Report
Document number R7030, agenda pages 35 - 52 refer.
Risk and Procurement Analyst, Steve Vaughan, presented the report.
The Committee agreed that John Peters and John Murray would be invited to the 11 April 2017 workshop on risk management and health and safety.
Councillor Matheson, seconded by Councillor Courtney, moved a motion:
That the Committee
Receives the report Council's Key Organisational Risks 2017 First Quarterly Report (R7030) and its attachment (A1695388); and
Notes that a workshop will be held for all Councillors and the external representatives of the Governance Committee on 11 April 2017 encompassing both core risk management concepts, and an overview of councillors’ health and safety obligations.
Mr Vaughan responded to questions regarding Council’s risk registers, the lack of a master risk register, how changes to risks were identified, the level of detail and transparency of controls, and the judgement process for risks. The Committee suggested it would be easier to consider the report if any changes to risk levels were made very clear.
The Committee commented on the risk of negative media exposure, how it was rated, the controls identified, and how controls could be better defined.
Attendance: Councillor Noonan left the meeting from 11.48am to 11.51am.
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Resolved GOV/2017/008 That the Committee Receives the report Council's Key Organisational Risks 2017 First Quarterly Report (R7030) and its attachment (A1695388); and Notes that a workshop will be held for all Councillors and the external representatives of the Governance Committee on 11 April 2017 encompassing both core risk management concepts, and an overview of councillors’ health and safety obligations. Matheson/Dahlberg Carried |
10. Health and Safety: Quarterly Report
Document number R7020, agenda pages 53 - 63 refer.
Manager Organisational Assurance and Emergency Management, Roger Ball, and Health and Safety Adviser, Malcolm Hughes, presented the report.
Mr Ball and Mr Hughes responded to questions regarding hazard trends, incidents with intoxicated persons at libraries, and resources available to deal with officer safety matters. He explained the work underway to ensure internal reporting was consistent.
The Committee expressed concern regarding the use of alcohol and methamphetamine in Nelson, and the subsequent impact on Council services and officer safety.
Attendance: Her Worship the Mayor left the meeting from 12.24pm to 12.27pm. Mr Murray left the meeting from 12.29pm to 12.30pm.
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Resolved GOV/2017/009 That the Committee Receives the report Health and Safety: Quarterly Report (R7020) and its attachment (A1710588). Skinner/Matheson Carried |
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Recommendation to Council GOV/2017/010 That the Council Notes the report Health and Safety Quarterly Report (R7020) and its attachment (A1710588); and Confirms the assessment of critical health and safety risks contained in the attachment (A1710588). Skinner/Matheson Carried |
Attendance: The meeting adjourned for lunch from 12.42pm to 1.20pm.
11. Internal Audit Report to 31 December 2016
Document number R7185, agenda pages 64 - 73 refer.
Internal Audit Analyst, Lynn Anderson, presented the report and responded to questions regarding the status of various audits.
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Resolved GOV/2017/011 That the Committee Receives the report Internal Audit Report to 31 December 2016 (R7185) and its attachment (A1711559). Peters/Murray Carried |
12. Remission Of Rates To Compensate For Business Disruption
Document number R7193, agenda pages 74 - 77 refer.
Group Manager Corporate Services, Nikki Harrison, and Group Manager Infrastructure, Alec Louverdis, presented the report.
Ms Harrison and Mr Louverdis responded to questions regarding research undertaken to inform the officer report, specific consultation undertaken regarding the civil works on Waimea Road in 2016, the duration of the works, and business interruption insurance.
Attendance: Councillor Rutledge left the meeting from 1.45pm to 1.47pm.
Councillor Matheson, seconded by Councillor Dahlberg, moved the recommendation in the officer report.
The Committee debated the motion. Those in favour suggested it was not wise to set a precedent and develop a rates remission policy for businesses affected by civil works. Those who expressed favour for exploring option two in the report, to develop a draft policy for public consultation, felt that Council should support local businesses.
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Resolved GOV/2017/012 That the Committee Receives the report Remission Of Rates To Compensate For Business Disruption (R7193). Matheson/Dahlberg Carried |
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Recommendation to Council GOV/2017/013 That the Council Confirms not to develop a rates remission policy for businesses affected by civil works undertaken by Council. Matheson/Dahlberg Carried |
13. Insurance renewal 2017/18 - Infrastructure Assets
Document number R7244, agenda pages 78 - 82 refer.
Group Manager Corporate Services, Nikki Harrison, presented the report.
Ms Harrison explained that the insurance estimates in the report were conservative, and she provided further detail on the timing of the renewal.
Some concern was expressed that it was a significant decision to determine the level of insurance cover, and it may be difficult for the group delegated authority to determine the correct level of cover. It was noted that the delegated group could call on advice from the external appointees to the Governance Committee if required.
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Resolved GOV/2017/014 That the Committee Receives the report Insurance renewal 2017/18 - Infrastructure Assets (R7244); and Notes that information is being collated to inform a decision on whether to remain with the Local Authority Protection Program (LAPP) for Council’s infrastructure insurance and also to understand the appropriate level of insurance cover. Peters/Courtney Carried |
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Recommendation to Council GOV/2017/015 That the Council Approves delegating authority to the Mayor, Chair of Governance and Chief Executive to decide whether Nelson City Council should exit from the Local Authority Protection Program for Council’s infrastructure insurance and the appropriate level of insurance cover, by the end of May 2017 and take any action required to give effect to the decision. Peters/Courtney Carried |
14. Tendering processes
Document number R7135, agenda pages 83 - 130 refer.
The Chief Executive, Clare Hadley, and Group Manager Community Services, Chris Ward, presented the report.
Mrs Hadley said it was clear the organisations tendering processes had been inadequate and offered an apology.
Mrs Hadley said it was rare for a council to organise festivals internally, with most other councils contracting this service externally. She noted the challenge of working with a small pool of providers and contractors in Nelson, and the impact of including Office of the Auditor General timeframes into the process of arranging festivals.
Mrs Hadley advised that Council’s contracts with elected members had been compliant under law, as approval had been sought and gained from the Office of the Auditor General (OAG). She explained the grounds for retrospective OAG approval.
Mrs Hadley answered questions relating to historic requests from, and responses to, external parties regarding the management of elected member contracts for festival services.
In response to a question, Mr Ward provided further information regarding the event ticketing contract referenced in the Crowe Horwath report.
Mrs Hadley and Mr Ward responded to questions regarding the 2014 gap analysis on procurement processes, the total value of elected member contracts in 2014/15 and 2015/16.
It was noted that the Chief Executive Employment Committee was concurrently considering part of this matter.
The Committee considered whether enough information had been provided on the matter, or whether further in-depth investigation was required.
Councillor Matheson, seconded by Councillor Noonan, moved a motion to request a subsequent report. It was agreed that the wording of the motion needed to be developed and therefore an adjournment was required.
Attendance: The meeting adjourned from 2.47pm to 3.07pm.
The mover and seconder put forward the following motion:
That the Committee
Receives the report Tendering processes (R7135) and its attachments (A1713610 and R6796); and
Requests the Chief Executive to commission an external provider to prepare a subsequent report to the Committee to explore the issues raised in report R7135 (and its attachments) in terms of management of the requirements under the Local Authorities (Members' Interests) Act 1968 by Council, and how these matters will be addressed in future; and
Requests that this report also clearly outlines the roles and responsibilities of all parties in complying with the Local Authorities (Members' Interests) Act 1968; and
Notes that the full scope of this report will be agreed in advance by the Chair of the Governance Committee and Mr John Peters.
Councillors in support of the motion noted that further investigation could provide additional learning on the matter, with a focus on protecting officers and elected members. Councillors against the motion felt that reporting had been adequate, contracts had been compliant, and systems were now in place to improve processes, therefore no further review was required.
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Resolved GOV/2017/016 That the Committee Receives the report Tendering processes (R7135) and its attachments (A1713610 and R6796); and Requests the Chief Executive to commission an external provider to prepare a subsequent report to the Committee to explore the issues raised in report R7135 (and its attachments) in terms of management of the requirements under the Local Authorities (Members' Interests) Act 1968 by Council, and how these matters will be addressed in future; and Requests that this report also clearly outlines the roles and responsibilities of all parties in complying with the Local Authorities (Members' Interests) Act 1968; and Notes that the full scope of this report will be agreed in advance by the Chair of the Governance Committee and Mr John Peters. Matheson/Noonan Carried |
Finance
15. Letter to the Council from Audit New Zealand on the audit for the year ended 30 June 2016
Document number R6978, agenda pages 131 - 140 refer.
Group Manager Corporate Services, Nikki Harrison, and Director Audit New Zealand, Bede Kearney, presented the report.
Ms Harrison and Mr Kearney provided further information regarding communicating performance with the community, and annual leave balances.
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Resolved GOV/2017/017 That the Committee Receives the report Letter to the Council from Audit New Zealand on the audit for the year ended 30 June 2016 (R6978) and its attachment (A1702571). Dahlberg/Murray Carried |
16. Corporate Report to 31 January 2017
Document number R6996, agenda pages 141 - 153 refer.
Senior Accountant, Tracey Hughes, presented the report and provided updates on various budgets.
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Resolved GOV/2017/018 That the Committee Receives the report Corporate Report to 31 January 2017 (R6996) and its attachments (A1715857 and A1717092). Rutledge/Courtney Carried |
17. Capital Expenditure Programme 2016-17 - Requests for Change
Document number R7065, agenda pages 154 - 156 refer.
Group Manager Infrastructure, Alec Louverdis, presented the report.
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Resolved GOV/2017/019 That the Committee Receives the report Capital Expenditure Programme 2016-17 - Requests for Change (R7065). Dahlberg/Rutledge Carried |
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Recommendation to Council GOV/2017/020 That the Council Approves, with respect to project 1199 Civic House Renewal Programme (Lift Renewal), that $225,816 be transferred from 2016/17 to 2017/18, to align with the scheduled installation programme. Dahlberg/Rutledge Carried |
18. Exclusion of the Public
Councillor Courtney, seconded by Mr Peters, moved the recommendation to move into public excluded session.
It was questioned whether there was reason enough to consider the Theatre Royal Loan matter in public excluded. The Committee agreed to consider this aspect of the report in public excluded session, then move to consider the report in public if the public excluded reason was found to no longer apply.
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Resolved GOV/2017/021 That the Committee Excludes the public 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: Courtney/Peters Carried |
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Governance Committee Meeting - Public Excluded Minutes - 1 December 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)(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 |
Theatre Royal Loan
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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 |
Internal Audit - Summary of New and Outstanding Control Issues - Quarter to 31 December 2016
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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)(j) To prevent the disclosure or use of official information for improper gain or improper advantage |
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4 |
Status Report - Governance Committee - 9 March 2017
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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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5 |
Director appointment for Nelson Airport Limited
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person |
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6 |
Director appointment for Port Nelson Limited
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Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7 |
The withholding of the information is necessary: · Section 7(2)(a) To protect the privacy of natural persons, including that of a deceased person |
The meeting went into public excluded session at 3.52pm and resumed in public session at 5.28pm.
19. Re-admittance of the Public
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Resolved GOV/2017/022 That the Committee Re-admits the public to the meeting. Barker/Skinner Carried |
There being no further business the meeting ended at 5.28pm.
Confirmed as a correct record of proceedings:
Chairperson
Date
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Governance Committee 20 April 2017 |
REPORT R7528
Status Report - Governance Committee - 20 April 2017
1. Purpose of
Report
1.1 To provide an update on the status of actions requested and pending.
1.2 Please note that Council has recently amended delegations for the Governance Committee, Commercial Subcommittee, and Audit, Risk and Finance Subcommittee. This has resulted in several items being moved from the Governance Committee status report, to the Subcommittee with the appropriate delegations for the matter.
2. Recommendation
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Receives the Status Report Governance Committee 20 April 2017 (R7528) and its attachment (A1160658). |
Shailey Burgess
Administration Adviser
Attachments
Attachment 1: A1160658 - Governance Committee Status Report - 20 April 2017 ⇩
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Governance Committee 20 April 2017 |
REPORT R7517
The Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2017/18
1. Purpose of Report
1.1 To receive the Bishop Suter Trust half yearly report (Attachment 1).
1.2 To seek Council approval of the Bishop Suter Trust Statement of Intent 2017/18 (Attachment 2).
2. Recommendation
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Receives the report The Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2017/18 (R7517) and its attachments (A1724808, A1724813, A1678353 and A1741148); and Notes that changes to the Bishop Suter Trust draft Statement of Intent may be required following confirmation of funding within the draft Annual Plan 2017/18. |
Recommendation to Council
|
Provides the following feedback to the Bishop Suter Trust on its draft Statement of Intent: · Seeks clarification in relation how the collection can be developed within the physical (storage) and financial (insurance) constraints. Approves a grant of $15,000 to the Bishop Suter Trust to continue to allow for free entry to all visitors in 2017/18. |
3. Background
3.1 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.
3.2 The half yearly report of the Bishop Suter Trust for the period ending 31 December 2016 is attached (attachment 1).
3.3 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).
3.4 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:
· Demonstrate that its collection policy is sustainable.
· Develop a marketing plan to increase local and non-local visitors.
3.5 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.
3.6 Following a submission from the Trust in May 2016, Council resolved to provide $20,000 funding to the Trust to allow free entry to the redeveloped gallery. Council resolved:
THAT a one off grant of $20,000 be allocated to the Suter to allow free entry 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
3.7 A separate report on this matter has been presented by the Trust and is attached (attachment 4).
4. Discussion
Half yearly report
4.1 This report describes the activities leading up to the re-opening of the Suter Art Gallery in October 2016, and subsequent activity in the gallery.
4.2 It shows that activity levels have remained high with approximately 34,000 visits to the redeveloped Suter in the three months from opening to December 31. This is higher that the quarterly average target of 27,500 visits (based on an 110,000 minimum visit target per year).
4.3 Progress has been made across performance measures, although it is noted that the asset management plan is still being developed (3.1.5). This is a key document for Council as it will inform future maintenance budgets.
Draft Statement of Intent
4.4 The four key priorities are identified as:
· To operate a successful visual arts centre and visitor destination
· To inform and engage the public through the visual arts
· To collect and preserve, record and communicate our artistic heritage
· To develop partnerships that sustain The Suter, its programmes, projects and collections
4.5 With respect to the specific requirements requested in the letter of expectation, it is noted that the Trusts has stated that ‘The Suter intends to continue developing its collection.’
4.6 Development of the collection comes at a cost. Whilst Council does not contribute to the acquisition of items, each acquisition requires storage and has to be insured. It is suggested that further clarification is sought from the Trust in relation to how the collection can be developed within physical (storage) and financial (insurance) constraints.
4.7 The Trust has included the development of a marketing plan (3.1.4) as requested.
4.8 The Trust also highlight in its notes to the budget that the Trust is facing additional operational costs as part of how it manages the redeveloped building.
4.9 Acknowledging those costs, Council has included additional funding within its draft Annual Plan and the SOI may need to be amended once the Annual Plan decisions have been made. By that stage the Trust will also have produced the Asset Management Plan, which will further guide budgets.
4.10 The budget in the draft SOI does not include budget for continuation of free entry; this is discussed below. Again, the draft SOI will need to be amended subject to Council decision on this matter.
Free entry trial
4.11 The Trust have prepared a report on the free entry trial, and have indicated that they would like this to continue through 2017/18 and beyond.
4.12 The Trust has conservatively estimated income of $5-6,000 per annum through its donation box. If Council decides to provide funding for continued free entry, it could consider reducing the grant given ($20,000 for 2016/17) by $5,000, recognising the level of donations received.
4.13 The Trust makes a strong case for the continuation of free entry, and would face significant additional staffing and configuration costs if charging was re-introduced.
5. Options
5.1 There is no decision to be made in respect of the half yearly report. In relation to the SOI, the Committee can recommend it for approval to Council or can request further changes. It is recommended that the Committee request changes following annual plan decisions, and any decision on free entry.
5.2 In relation to free entry, the Committee can recommend that the trial ends or that Council provide additional funding to continue free entry for all visitors.
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Option 1: End free entry |
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Advantages |
· No additional cost to Council in funding entry fees |
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Risks and Disadvantages |
· Additional costs for staffing and entry charge administration · Physical works may be required |
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Option 2: Continue with free entry |
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Advantages |
· Consistency of messaging · Removes a barrier to residents and visitors accessing art gallery |
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Risks and Disadvantages |
· Cost of $15,000 - $20,000 · If donations collected are used to fund acquisitions there is a cost transfer to Council |
5.3 Option 2 is recommended.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1724808 - Bishop Suter Trust Half Yearly Report ⇩
Attachment 2: A1724813 - Bishop Suter Trust Draft Statement of Intent ⇩
Attachment 3: A1678353 - Letter of Expectation for the Bishop Suter Trust ⇩
Attachment 4: A1741148 - Bishop Suter Trust Free Entry Report ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government The preparation of a draft Statement of Intent and delivery of the half yearly report is a requirement of Schedule 8 of the Local Government Act. |
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2. Consistency with Community Outcomes and Council Policy The Suter contributes to the outcome ‘Our communities have opportunities to celebrate and explore their heritage, identity and creativity’ and ‘Our communities have access to a range of social, educational and recreational facilities and activities’ |
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3. Risk There is a low risk that the Statement of Intent does not deliver the outcomes expected by the councils. Officers remain in dialogue with the Trust through the year to mitigate this risk. |
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4. Financial impact The operation of the Suter Gallery is a budgeted activity for both councils. The provision of funding to support free entry was not budgeted in the Long Term Plan nor is it currently in the draft Annual Plan. |
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5. Degree of significance and level of engagement This matter is of low significance and no further consultation is proposed. |
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6. Inclusion of Māori in the decision making process Maori have not been specifically consulted on this matter. Iwi are represented on the Trust Board. |
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7. Delegations The Governance Committee has the responsibility for considering and making recommendations to Council on all matters relating to Nelson Council Controlled Organisations and Council Controlled Trading Organisations, including statements of intent, statements of corporate intent, half yearly reports, the appointment of directors and setting of directors’ fees. |
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Governance Committee 20 April 2017 |
REPORT R7439
Nelson Regional Development Agency Half Yearly Report to 31 December 2016 and Draft Statement of Intent 2017/18
1. Purpose of Report
1.1 To receive the half yearly report from the Nelson Regional Development Agency (NRDA), and
1.2 To consider the NRDA’s draft Statement of Intent 2017/18.
2. Recommendation
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Receives the report Nelson Regional Development Agency Half Yearly Report to 31 December 2016 and Draft Statement of Intent 2017/18 (R7439) and its attachments (A1726866, A1724816, A1678393 and A1740612); and Notes that the final Statement of Intent will be subject to decisions made on Tasman District Council and Nelson City Council’s respective Annual Plans 2017/18. |
3. Background
3.1 The NRDA, along with the other Council Controlled Organisations (CCOs), 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 gives the Council an opportunity to monitor the performance of the CCO in relation to its set objectives and Council’s overall aims and outcomes.
3.2 The half yearly report of the NRDA for the period ending 31 December 2016 is attached (attachment 1).
3.3 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 NRDA is attached (attachment 2).
3.4 The Council previously gave direction to the NRDA on the matters it wished to see considered (refer Statement of Expectation Attachment 3). Council confirmed on 15 December 2016 that the NRDA should:
· Clearly articulate how the Agency’s Strategic Plan will be implemented; and
· Demonstrates how the Agency plans to promote and leverage off of the Regional Identity Project.
3.5 The NRDA has also requested additional funding to implement the regional identity programme (attachment 4).
3.6 The Chairperson, John Palmer, and Chief Executive, Mark Rawson, will be in attendance at the meeting to answer any questions.
4. Discussion
Half Yearly report
4.1 The half yearly report details the work that has been carried out since the NRDA was established on 1 July 2016. The key achievements are identified as:
4.2 SOI performance measure: New business is stabilised and made ‘fit for purpose’
· Completion of organisational review and staff re-alignment
· Stakeholder engagement and communications, particularly around regional identity
4.3 SOI performance measure: Interim Maintenance of Core Business Service Delivery
· Regional Business Partner Programme – tracking above targets
· Business support and Investment ecosystem – revised business incubator under development
· i-SITE programme – ahead of targets
· International, Consumer & Business Events programmes and Economic Events Programme – being maintained.
4.4 The half yearly report also identifies progress made in the third quarter on regional identity and strategic business planning.
4.5 SOI performance measure : Financially Sustainable Organisation
· On track to deliver balanced budget
Draft Statement of Intent
4.6 The Draft Statement of Intent indicates the priorities for the NRDA over the forthcoming year. The performance areas are:
4.6.1 Investment Attraction - Development & strengthening of the region’s investment cases with a priority on the Regional Identity focus areas.
4.6.2 Business Development - Supporting existing businesses and business people to grow, and the development of new businesses.
4.6.3 Destination Management - Telling and delivering on the Regional Identity story across the spectrum of invest, visit and talent.
4.6.4 Finance
4.7 These represent a more focussed approach to regional economic development than has been delivered in the past, as identified in the review of economic development service.
Request for additional funding
4.8 The NRDA has asked for an additional sum of $200,000 to be allocated in the 2017/18 financial year to further the regional identity implementation. The two key workstreams are:
· The regional identity investment cases
· Domestic consumer marketing programme
4.9 The NRDA presented some of the rationale for these at the joint council workshop on 28 March.
4.10 Funding of $100,000 has been included in the draft Annual Plan 2017/18 and a request has been made to the Tasman District Council for additional funding of $100,000 to be included in its Annual Plan.
4.11 The draft SOI has not assumed this additional income, and it is recommended that no decision be made on accepting the SOI as final until those decisions are made. No further changes to the SOI are recommended.
5. Options
5.1 The Committee can either accept the SOI as the final SOI for the 2017/18 year, or it can provide feedback to the NRDA on any changes requested.
5.2 A final SOI needs to be received by Council by 30 June 2017.
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Option 1: receive the draft SOI and request no further changes |
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Advantages |
· Efficient use of governance time |
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Risks and Disadvantages |
· Uncertainty over funding provided for in draft Annual Plan |
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Option 2: receive the draft SOI and request further changes by June 30 |
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Advantages |
· SOI may change depending on Annual Plan decisions – this option will allow for those changes to be brought to Council |
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Risks and Disadvantages |
· Additional administrative time required by NRDA and Council staff. |
6. Conclusion
6.1 The NRDA has delivered a statutorily compliant draft Statement of Intent. It is recommended that this is received by the Governance Committee but not adopted at this stage, pending annual plan decisions.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1726866 - NRDA six monthly report to 31 December 2016 ⇩
Attachment 2: A1724816 - NRDA draft Statement of Intent 2017/18 ⇩
Attachment 3: A1678393 - Letter of Expectation for the Nelson Regional Develoment Agency Dec2016 ⇩
Attachment 4: A1740612 - NRDA Request for additional funding to support Regional Identity Project ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government Nelson Regional Development Agency assists Council to provide good quality local infrastructure and public services to Nelson City residents and businesses and the process of receiving the half yearly report and draft SOI helps ensure these services are provided in a cost effective way. Whilst funding for economic development is discretionary, it is seen as important in supporting the future needs of our community. |
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2. Consistency with Community Outcomes and Council Policy Support for the NRDA contributes to the following outcomes: ‘Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement’ and ‘Our region is supported by an innovative and sustainable economy’ |
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3. Risk There is a very low risk decision as it relates to a statutory process. |
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4. Financial impact The NRDA has requested an additional $200,000, $100,000 of which is in the draft Annual Plan. Additional support has been requested from Tasman District Council – this will be subject to their annual plan decision making process. |
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5. Degree of significance and level of engagement This matter is of low significance as it is the activities of the NRDA and funding have been consulted on through Annual Plans. |
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6. Inclusion of Māori in the decision making process Maori have not been involved in the preparation of this report. |
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7. Delegations The Governance Committee has the responsibility for considering matters relating to Nelson City Council Controlled Organisations and Nelson City Council Controlled Trading Organisations, and can make recommendations to Council on documents from Nelson City Council Controlled Organisations and Nelson City Council Controlled Trading Organisations, including statements of intent, half yearly reports and appointments of directors. |
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Governance Committee 20 April 2017 |
REPORT R7294
Nelmac Limited six monthly report to 31 December 2016
1. Purpose of Report
1.1 To receive the Nelmac Limited half yearly report to 31 December 2016.
2. Recommendation
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Receives the report Nelmac Limited six monthly report to 31 December 2016 (R7294) and its attachment (A1721866). |
3. Background
3.1 Section 66 of the Local Government Act requires Nelmac to deliver a half yearly report on performance within 2 months of the end of that period. This requirement has been met.
3.2 The half yearly report of Nelmac for the period ending 31 December 2016 is included as Attachment 1.
4. Discussion
4.1 For the first six months of this financial year Nelmac reported profit before tax (PBT) of $526,032 which is 20% below budget and 3% lower than the same time the previous financial year.
4.2 The achievement of the SOI forecast profit before tax of $1.325 million will be a stretch based on current demand, noting that some previous years performances have included weather event clean up.
4.3 Overall Nelmac’s six months revenue was up $1.391 million (11%) on the same time last year largely driven by an increase in Council business with recently awarded contracts in building maintenance, marina hardstand management and SCADA (telemetry) network and electrical services.
4.4 Offsetting this, costs have increased $1.4 million (11.6%) reflecting planned investment in people, processes and systems, building capabilities and further embedding business excellence.
4.5 The report shows that Nelmac, while not meeting all of the SOI targets for the first six months, continues to grow the net asset base.
5. Options
5.1 There is no decision to be made on the half yearly report. The company has complied with the legislation in preparing and presenting the report to Council.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1721866 - Nelmac Ltd six monthly report to shareholders to 31 December 2016 ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government Appropriate reporting of the performance of Council’s Council Controlled Trading Organisations supports the provision of good quality local infrastructure. |
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2. Consistency with Community Outcomes and Council Policy The recommendation supports the Community Outcome that “our infrastructure is efficient, cost-effective and meets current and future needs”. |
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3. Risk There is no risk from the recommendation as it is only to receive the six monthly report. |
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4. Financial impact There is no financial impact from the recommendation as it is only to receive the six monthly report. |
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5. Degree of significance and level of engagement This matter is of low significance because it is receiving the six monthly report which is required to be delivered by law. |
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6. Inclusion of Māori in the decision making process Maori have not been consulted in preparation of the report. |
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7. Delegations The Governance Committee has the responsibility for all matters relating to Nelson Council Controlled Organisations and Council Controlled Trading Organisations, including receiving half yearly reports. |
