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AGENDA
Ordinary meeting of the
Joint Shareholders Committee
Tuesday 11 April 2017
Commencing at 1.30pm
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Her Worship the Mayor of Nelson Rachel Reese (Chairperson), Nelson City Councillors Paul Matheson, Ian Barker, Mel Courtney, Gaile Noonan, and Tim Skinner, His Worship the Mayor of Tasman Richard Kempthorne, Tasman District Councillors Tim King, Stuart Bryant, Pete Canton, David Ogilvie and Trevor Tuffnell
Joint Shareholders Committee
11 April 2017
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 M2228
Recommendation
That the Committee
Confirms the minutes of the meeting of the Joint Shareholders Committee, held on 29 November 2016, as a true and correct record.
6. Tasman Bays Heritage Trust - Half yearly report to 31 December 2016 and Draft Statement of Intent 2017-2018 8 - 62
Document number R7426
Recommendation
That the Committee
Receives the report Tasman Bays Heritage Trust - Half yearly report to 31 December 2016 and Draft Statement of Intent 2017-2018 (R7426) and its attachments (A1678158, A1724791, A1724801 and A1731694); and
Notes the delivery of the Tasman Bays Heritage Trust Draft Statement of Intent 2017/18 (A1724801) as required under the Local Government Act 2002;
Provides the following feedback to the Tasman Bays Heritage Trust Board on its draft Statement of Intent:
· Include a project within existing budgets to replace windows fronting on to Hardy and Trafalgar Streets;
· Include specific milestones for delivery of the Strategic Review, including adoption and implementation of the Policy on Collections, Acquisitions and De-Accessions.
Note: Deputy Chairperson, Emma Thompson, and Chief Executive, Lucinda Blackley-Jimson, will be in attendance at the meeting.
7. Port Nelson Limited Half yearly report to 31 December 2016 63 - 70
Document number R6981
Recommendation
That the Committee
Receives the report Port Nelson Limited Half yearly report to 31 December 2016 (R6981) and its attachment (A1701863).
8. Nelson Airport Ltd - Half Yearly Report (December 2016) 71 - 91
Document number R6980
Recommendation
That the Joint Shareholders Committee
Receives the Nelson Airport Ltd - Half Yearly Report (December 2016) report (A1738334) and its attachment (A1738436).
Note: Chairperson, Paul Steere, and Chief Executive, Rob Evans, will be in attendance at the meeting.
Public Excluded Business
Recommendation
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Confirms, in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Paul Steere and Rob Evans remain after the public has been excluded, for Item Four of the Public Excluded agenda (Nelson Airport Ltd – draft Statement of Intent 2017/18), as they have knowledge that will assist the Council; and Notes, in accordance with section 48(6) of the Local Government Official Information and Meetings Act 1987, the knowledge that Paul Steere and Rob Evans possess relates to the Nelson Airport Ltd 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) |
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1 |
Joint Shareholders Committee Meeting - Public Excluded Minutes - 29 November 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)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). |
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2 |
Nelson Airport Ltd - 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)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) |
10. Re-admittance of the public
Recommendation
That the Committee
Re-admits the public to the meeting.
Minutes of a meeting of the Joint Shareholders Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 29 November 2016, commencing at 9.05am
Present: His Worship the Mayor of Tasman R Kempthorne (Chairperson), Tasman District Councillors S Bryant, P Canton and T Tuffnell, Her Worship the Mayor of Nelson R Reese, Nelson City Councillors I Barker, M Courtney, P Matheson, G Noonan, and T Skinner
In Attendance: Tasman District Councillors S Brown and D Wensley, Nelson City Councillors M Lawrey, B McGurk and S Walker, Chief Executive (C Hadley), Group Manager Corporate Services (N Harrison), and Administration Adviser (E-J Ruthven)
Apology: Tasman District Councillor T King
1. Apologies
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Resolved JSC/2016/025 That the Committee Receives and accepts an apology from Councillor King. Bryant/Canton 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. Exclusion of the Public
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Resolved JSC/2016/026 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: Matheson/Tuffnell 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 |
Nelson Airport Limited Directors' Remuneration 2016/17 - Correction
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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) |
The meeting went into public excluded session at 9.08am and resumed in public session at 9.10am.
6. Re-admittance of the Public
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Resolved JSC/2016/027 That the Committee Re-admits the public to the meeting. Barker/Tuffnell Carried |
There being no further business the meeting ended at 9.10am.
Confirmed as a correct record of proceedings:
Chairperson
Date
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Joint Shareholders Committee 11 April 2017 |
REPORT R7426
Tasman Bays Heritage Trust - Half yearly report to 31 December 2016 and Draft Statement of Intent 2017-2018
1. Purpose of Report
1.1 To receive the half yearly report from the Tasman Bays Heritage Trust (TBHT) and to consider the Trust’s draft Statement of Intent.
2. Recommendation
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Receives the report Tasman Bays Heritage Trust - Half yearly report to 31 December 2016 and Draft Statement of Intent 2017-2018 (R7426) and its attachments (A1678158, A1724791, A1724801 and A1731694); and Notes the delivery of the Tasman Bays Heritage Trust Draft Statement of Intent 2017/18 (A1724801) as required under the Local Government Act 2002; Provides the following feedback to the Tasman Bays Heritage Trust Board on its draft Statement of Intent: · Include a project within existing budgets to replace windows fronting on to Hardy and Trafalgar Streets; · Include specific milestones for delivery of the Strategic Review, including adoption and implementation of the Policy on Collections, Acquisitions and De-Accessions. |
3. Background
3.1 Under the Local Government Act, TBHT is required to complete a draft Statement of Intent (SOI) on an annual basis no later than 1 March each year.
3.2 The Councils have an opportunity to provide feedback to the Board of TBHT within two months of this date and the company has until 30 June to deliver the final SOI to the Shareholders.
3.3 On 3 November 2016, the Joint Committee of Nelson and Tasman District Councils resolved:
THAT the Committee confirm the specific matters to be included in the Statements of Expectation letters as:
- Tasman Bays Heritage Trust – understand timeline for implementation of strategy review, lead role in collaboration with other heritage sector organisations, evidence of collection rationalisation, consideration of archive rationalisation.
3.4 A letter of expectation (Attachment 1) was sent to TBHT in November outlining the general expectations and specific matters that the Councils would like to see addressed in the Statement of Intent for the 2016/17 year.
3.5 TBHT delivered a draft Statement of Intent (Attachment 2) and a half yearly report to December 2016 (Attachment 3) prior to 1 March 2017, meeting the requirements of the Local Government Act. Separately, The Trust also sent a letter to Nelson City Council requesting funding to address the museum’s tinted windows (Attachment 4).
3.6 The Deputy Chairperson, Emma Thompson and the Chief Executive, Lucinda Blackley-Jimson, will be in attendance at the meeting to present the information and to answer questions.
4. Discussion
Half Yearly Report
4.1 The half yearly report shows that TBHT is on track to meet the majority of its objectives for the year. Visitor numbers are down on the comparable period for 2015, but are tracking to the target of 49,600. January is generally the biggest month for visitor admissions and the Trust should be able to signal how well it is tracking on this measure at the meeting.
4.2 Revenue is slightly ahead of budget, with direct costs significantly below budget, meaning the net surplus is $120,000 better than budgeted. The Board has continued to exercise sound financial management of the Trust.
4.3 The Trust has engaged in a number of outreach activities across the region and has been working more closely with the region’s smaller museums on exhibitions, and training on governance and health and safety.
4.4 It is pleasing to note the Learning Experiences Outside the Classroom contract has been extended for a further three years.
Draft Statement of Intent
4.5 TBHT has gone through a transitional phase and now is looking to implement the recommendations of the Strategic Review. The areas of focus identified for the 2017/18 year are:
· To develop and scope a capital works plan to optimise all Museum operations
· To diversify funding sources and increase earned revenue
· To provide increased support for regional museums
· To review the collection, acquisitions and de-accessions policies
· Implement a strong and varied Visitor Experience Programme
· To be a good employer
4.6 A
summary of the letter of expectation requests and the responses in the
Statement of Intent is as follows:
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Letter of Expectation Request |
Trust Response |
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TBHT to take a lead in engagement with regional museums TBHT to work with local museums |
Section 3 – Trust has increased budget for regional support from $500 to $10000. Included in performance measures. |
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Vision for online resources |
Section 5 – Digital engagement priorities identified. No reference to strategic vision for online content. |
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Options for non-council revenue stream |
Section 2.1 – Recruitment of a sponsorship/ fundraising Manager and inclusion of performance measures. |
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Feedback on progress towards Walker report recommendations
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Much of the proposed work programme is aligned with the Walker Report recommendations. Specific references made in sections 1 & 2.1. |
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Provide timeline for the implementation of the strategic review recommendation. |
No specific timeline has been identified for implementation of actions. |
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Collaborate with other Organisations in the heritage sector to ensure efficient use of public funds
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TBHT plans to continue to work with other museums, Nelson Historical Society and Brook Waimarama Sanctuary. Reference in performance measures. |
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Provide evidence of collection rationalisation
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Section 4: Policy on Collections, Acquisitions and De-Accessions being reviewed. |
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Rationalise the libraries and archive collection across TBHT, NCC and TDC public libraries
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Section 4: Consultation with stakeholders on strategic direction underway. |
4.7 The Trust has addressed some of the matters raised in the letter of expectation. However, it is noted that work on collection rationalisation is limited to policy development within the SOI. Whilst this seems a reasonable first step, there is no clear timeframe attached to this or to other strategic review matters. It is recommended that the Trust be asked to include this information in its SOI.
4.8 Repayment of the loans to the Trust from the two Councils will continue this year at $100,000 per Council.
Request for funding to address street frontage
4.9 The issue of the tinted windows has been raised previously with and by the Trust. The current windows give an outside view that the museum is closed or has little activity inside. The Trust has investigated options and has decided that the windows need to be replaced, at a cost of $25,000.
4.10 As a CCO funded jointly by the two Councils, it is appropriate that this matter be considered by the Joint Shareholders Committee. It is noted that purpose of the Nelson City Council’s CBD enhancement fund quoted in the letter is for capital works to the public domain and not for works that benefit one business or organisation.
4.11 The Committee needs to give direction to the Trust in relation to the request.
5. Options
5.1 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 the Councils.
5.2 In relation to the SOI, the Committee can choose to either submit feedback to the Board of TBHT or accept the SOI as the final version (with any minor amendments). If the Committee does submit substantive feedback then the amended SOI will be brought back to the Committee in August.
5.3 In relation to the request for additional funding, the Committee can either decline the request or recommend to the two Councils that additional funding be made available on a one off basis. If it decides to decline the request, the Committee could ask that the Trust include the work in its Statement of Intent, and from within the agreed budget. This is the recommended approach.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A1678158 - Tasman Bays Heritage Trust Letter of Expectation ⇩
Attachment 2: A1724791 - Tasman Bays Heritage Trust Half Yearly Report to December 2016 ⇩
Attachment 3: A1724801 - Tasman Bays Heritage Trust Draft Statement of Intent ⇩
Attachment 4: A1731694 - Tasman Bays Heritage Trust letter to Nelson City Council February 2017 ⇩
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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 museum 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 provision of the museum is a budgeted activity for both councils. |
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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 Joint Shareholders Committee has the responsibility for considering and deciding on all matters relating to jointly owned 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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Joint Shareholders Committee 11 April 2017 |
REPORT R6981
Port Nelson Limited Half yearly report to 31 December 2016
1. Purpose of Report
1.1 To receive the half yearly report to 31 December 2016 from Port Nelson Limited.
2. Recommendation
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Receives the report Port Nelson Limited Half yearly report to 31 December 2016 (R6981) and its attachment (A1701863). |
3. Background
3.1 The Port Companies Act 1988 requires delivery of the half year report within two months of the end of the period to the shareholders and the Minister of Transport. This requirement has been met.
3.2 The Port company presented on the six monthly result at the Joint Committee of Nelson City and Tasman District Council held on 28 March 2017.
4. Discussion
4.1 The half yearly report of Port Nelson for the period ending 31 December 2016 is included as Attachment 1.
4.2 For the first six months of this financial year Port Nelson reported total revenue of $26.6 million, up 9% against budget and up 27% on the same period last year.
4.3 Cargo volumes for the first half of the year were ahead of budget with 1.370 million revenue tonnes handled against the budget of 1.328 million, and up on the 1.252 million handled at the same time last year.
4.4 Net profit after tax, excluding asset impairments of $1.2 million, of $4.2 million which is 35.5% above budget and 40% higher than the same time last year. A provision for asset impairments of $1.2 million (2016 $0.86 million) for buildings to be demolished prior to the year end has been made in the first six months of the financial year.
4.5 The report shows that Port Nelson have largely met its SOI targets for the first six months except for:
4.5.1 Lost time injury (LTI) frequency rate of 3.5 versus a budget of less than 1.5 (and is higher than the same time last year of 2.2).
4.5.2 Capital expenditure programme is below budget by $7.5 million due to the timing variations.
4.6 The Port were asked further on the Lost time injury (LTI) frequency rate of 3.5 and commented:
4.6.1 We have strong H&S systems and a good safety culture in place which are designed to keep injuries to a minimum, as the renewal by ACC of our tertiary accreditation in January reflects. The LTIFR at 3.5 is a concern, as any injuries are. However to put this in context during the period to which it relates i.e. Dec 2015-16, we had one serious injury to an employee which amounted to notifiable event. The majority of other LTIs were sprains, strains and bruising which are classed as very low risk. Most of our injuries arise from our stevedoring team because of the physicality of this work. It is also the physicality of the work which may also cause an employee to be off work in our environment, compared with for instance an office environment.
4.6.2 The Statement of Corporate Intent for Port Nelson Limited is not due to be received until 31 July 2017 and will be brought to the 22 August Joint Shareholders Committee meeting.
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.
6. Conclusion
6.1 Port Nelson has complied with the Port Companies Act 1988 in preparing a half yearly report.
Nikki Harrison
Group Manager Corporate Services
Attachments
Attachment 1: A1701863 - Port Nelson Ltd shareholder report for the period ending 31Dec2016 ⇩
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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 Joint Shareholders Committee has the responsibility for all matters relating to jointly owned Council Controlled Organisations and Council Controlled Trading Organisations, including receiving half yearly reports. |
