AGENDA
Ordinary meeting of the
Governance Committee
Thursday 26 October 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 Order 12.1:
· All councillors, whether or not they are members of the Committee, may attend Committee meetings
· 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
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.
26 October 2017
An apology has been received from Councillor Rutledge.
2. Confirmation of Order of Business
3.1 Updates to the Interests Register
3.2 Identify any conflicts of interest in the agenda
4. Public Forum
Document number M2887
Recommendation
That the Governance Committee
Confirms the minutes of the meeting of the Governance Committee, held on 7 September 2017, as a true and correct record.
6. Status Report - Governance - 26 October 2017 12 - 13
Document number R8595
Recommendation
That the Governance Committee
Receives the Status Report Governance Committee 26 October 2017 (R8595) and its attachment (A1160658).
8. Nelson Municipal Band Trust - Council Controlled Organisation Exemption 14 - 18
Document number R8287
Recommendation
That the Governance Committee
Receives the report Nelson Municipal Band Trust - Council Controlled Organisation Exemption (R8287) and its attachment (A1801559).
That the Council
Approves an exemption to the Nelson Municipal Band 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.
9. Exclusion of the Public
Recommendation
That the Governance 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) |
|
Governance Committee Meeting - Public Excluded Minutes - 7 September 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)(a) · To protect the privacy of natural persons, including that of a deceased person. Section 7(2)(i) · To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
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10. Re-admittance of the public
Recommendation
That the Governance Committee
Re-admits the public to the meeting.
Minutes of a meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 7 September 2017, commencing at 9.01am
Present: Councillor I Barker (Chairperson), Her Worship the Mayor R Reese, Councillors M Courtney, B Dahlberg (Deputy Chairperson), G Noonan, M Rutledge and T Skinner
In Attendance: Councillor S Walker, Acting Chief Executive (D Hammond), Senior Strategic Adviser (N McDonald), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), and Governance Advisers (EJ Ruthven and E Stephenson)
Apology: Councillor P Matheson
1. Apologies
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Resolved GOV/2017/055 That the Committee Receives and accepts the apology from Councillor Matheson. Noonan/Dahlberg 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.
Councillor Noonan indicated she may have an interest with an item on the public excluded agenda. No further interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 27 July 2017
Document number M2775, agenda pages 7 - 11 refer.
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Resolved GOV/2017/056 That the Committee Confirms the minutes of the meeting of the Governance Committee, held on 27 July 2017, as a true and correct record. Courtney/Rutledge Carried |
6. Status Report - Governance - 7 September 2017
Document number R8288, agenda pages 11 - 13 refer.
Group Manager Community Services, Chris Ward, presented the report and noted an update on prospective third party funding was anticipated by the end of the year.
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Resolved GOV/2017/057 That the Committee Receives the Status Report Governance Committee 7 September 2017 (R8288) and its attachment (A1160658). Rutledge/Noonan Carried |
7. Chairperson's Report
There was no Chairperson’s Report.
Governance
8. Uniquely Nelson Memorandum of Understanding 2017/18
Document number R6488, agenda pages 14 - 36 refer.
Attendance: Her Worship the Mayor joined the meeting at 9.08am.
Simon Duffy, Justine Kennard and Steve Moody, of Uniquely Nelson, joined the meeting. They gave a demonstration of a new website in development, and spoke about Uniquely Nelson activities. They noted the importance of retailers having an online presence, and answered questions.
Group Manager Community Services, Chris Ward, presented the report and answered questions about the Memorandum of Understanding and Uniquely Nelson’s relationship with the Nelson Regional Development Agency.
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Resolved GOV/2017/058 That the Committee Receives the report Uniquely Nelson Memorandum of Understanding 2017/18 (R6488) and its attachments (A1818573 and A1730720). Courtney/Skinner Carried |
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Recommendation to Council GOV/2017/059 That the Council Approves the Uniquely Nelson Memorandum of Understanding 2017-18 (A1818573). Her Worship the Mayor/Noonan Carried |
9. Significance and Engagement Policy
Document number R8100, agenda pages 37 - 49 refer.
Attendance: Her Worship the Mayor left the meeting from 10.14am to 10.15am.
Policy Coordinator, Jane Loughnan, presented the report and answered questions.
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Resolved GOV/2017/060 That the Committee Receives the report Significance and Engagement Policy (R8100) and its attachments (A1766622 and A1810631); Rutledge/Dahlberg Carried |
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Recommendation to Council GOV/2017/061 That the Council Adopts the amended Significance and Engagement Policy (A1766622); and Approves the summary of the Significance and Engagement Policy (A1810631) Rutledge/Dahlberg Carried |
10. International Relationships Policy
Document number R8047, agenda pages 50 - 67 refer.
Group Manager Community Services, Chris Ward, presented the report and answered questions.
During discussion, the following changes to the policy were agreed:
· Appendix 3, to include an additional point “As necessary, to accompany the Mayor and other delegates when making visits to Sister Cities”; and
· Appendix 4, clause 4(3) to be re-worded to state “The Whakatu Marae could also potentially offer a cultural experience for official visits”.
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Resolved GOV/2017/062 That the Committee Receives the report International Relationships Policy (R8047) and its attachment (A1496780); and Approves the Draft International Relationships Policy (A1496780) for consultation, as amended. Dahlberg/Courtney Carried |
Finance
11. Rates remissions for the year ending 30 June 2017
Document number R8215, agenda pages 68 - 81 refer.
Group Manager Corporate Services, Nikki Harrison, and Rates Officer, Theo Aitken, presented the report and answered questions.
Attendance: Councillor Noonan left the meeting from 10.50am to 10.54am.
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Resolved GOV/2017/063 That the Committee Receives the report Error! No document variable supplied. (R8215) and its attachments (A1793175, A1383906 and A1483852). Rutledge/Noonan Carried |
12. Exclusion of the Public
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Resolved GOV/2017/064 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: Rutledge/Noonan Carried |
|
Item |
General subject of each matter to be considered |
Reason for passing this resolution in relation to each matter |
Particular interests protected (where applicable) |
|
1 |
Governance Committee Meeting - Public Excluded Minutes - 27 July 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)(a) To protect the privacy of natural persons, including that of a deceased person. |
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2 |
Bishop Suter Trust - Appointment of Trustee
|
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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3 |
Nelmac Limited Director reappointments
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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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4 |
Nelmac Limited Directors remuneration - 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) |
The meeting went into public excluded session at 10.58am and resumed in public session at 12.13pm.
13. Re-admittance of the Public
|
Resolved GOV/2017/065 That the Committee Re-admits the public to the meeting. Barker/Rutledge Carried |
There being no further business the meeting ended at 12.13pm
Confirmed as a correct record of proceedings:
Chairperson
Date
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Governance Committee 26 October 2017 |
REPORT R8595
Status Report - Governance - 26 October 2017
1. Purpose of Report
1.1 To provide an update on the status of actions requested and pending.
2. Recommendation
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Receives the Status Report Governance Committee 26 October 2017 (R8595) and its attachment (A1160658). |
Attachments
Attachment 1: A1160658 - Governance Committee Status Report - 26 October 2017 ⇩
Item 8: Nelson Municipal Band Trust – Council Controlled Organisation Exemption
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Governance Committee 26 October 2017 |
REPORT R8287
Nelson Municipal Band Trust - Council Controlled Organisation Exemption
Purpose of Report
1.1 To recommend an exemption for the Nelson Municipal Band Trust (the Trust) from the obligations that the Local Government Act 2002 imposes on Council Controlled Organisations (CCOs).
2. Recommendation
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Receives the report Nelson Municipal Band Trust - Council Controlled Organisation Exemption (R8287) and its attachment (A1801559).
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Recommendation to Council
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Approves an exemption to the Nelson Municipal Band 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. |
3. Background
3.1 The Nelson Municipal Band’s Trust deed (Attachment 1 - A1801559) allows for three Trustees to be appointed to administer the Trust Fund.
3.2 Historically, the three trustees appointed to the Trust have been the Mayor, the President of the Band and the manager of the Council’s bank. The Trust Deed did not require the holders of those particular offices to be appointed as trustees.
3.3 Due to relatively frequent changes in the manager of Council’s bank, resulting in the third trustee position being left vacant for lengthy periods of time, the Trust indicated its preference for the appointment of a trustee not linked with any particular office, to avoid the position being left vacant.
3.4 At its 10 August 2017 meeting, Council appointed Gail Collingwood to the Trust Board, for a term finishing in October 2019. This appointment changed the Trust’s obligations under the Local Government Act 2002, to those of a CCO (in which one or more local authorities control 50% or more of the voting rights or rights to appoint directors).
3.5 Unless specifically exempted by Council resolution, a CCO is required to:
· Prepare a statement of intent in accordance with Schedule 8 of the Act;
· Prepare a half yearly report and an annual report;
· Comply with Parts I to VI of LGOIMA.
3.6 While these are quite appropriate in relation to what could be termed Council businesses, they would place an unreasonable burden on the smaller, less commercially oriented organisations in which the Council has an interest, such as the Trust.
3.7 Sections 6(4)(i) and Section 7(3) of the Local Government Act (2002, the ‘Act’) provide that the Council may grant small organisations an exemption from the requirements of a CCO after considering:
· The nature and scope of the activities provided by the organisation; and
· The costs and benefits, if an exemption is granted, to the Council, the Council Controlled Organisation, and the community.
3.8 Section 7(6) of the Act requires that a Local Authority must review an exemption within three years after it is granted and thereafter at intervals of not more than three years.
4. Conclusion
4.1 The Trust can reasonably be considered a small organisation. The Trust qualifies for differential reporting exemptions as the operation is not publicly accountable, and the operation is not considered large when applying the test contained within the Framework for Differential Reporting (New Zealand Accounting Standards Framework).
4.2 The change in the Trust’s obligations under the Act has come about simply as a result of Council’s appointment of the third trustee position, made at the 10 August 2017 Council meeting to avoid the trustee position being left vacant for long periods.
4.3 It is therefore recommended that the Trust be granted an exemption from the obligations imposed on it by the Local Government Act 2002.
5. Options
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Option 1: Grant an exemption to the Nelson Municipal Band Trust |
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Advantages |
· Recognition that the Trust is a small organisation, resulting in removal of the burden and financial cost to the Trust of complying with the obligations imposed on CCOs by the Act. |
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Risks and Disadvantages |
· This will result in reduced transparency in relation to the Trust’s activities, compared to a CCO. |
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Option 2: Do not grant an exemption to the Nelson Municipal Band Trust |
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Advantages |
· No reduction in the transparency of the Trust’s Activities. |
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Risks and Disadvantages |
· The Trust will bear the burden of complying with the relevant schedules in the Act. This will come at a financial cost to the Trust.
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Elaine Stephenson
Governance Adviser
Attachments
Attachment 1: A1801559 - Nelson Municipal Band Trust Deed ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government This is a statutory compliance matter. This decision would save the Trust, as a small community group, unnecessary compliance costs and supports the cost-effective provision of services and assets to households and businesses. |
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2. Consistency with Community Outcomes and Council Policy The recommendation is not inconsistent with any Council policy or strategic document. It supports the Community Outcome: Our communities have access to a range of social, educational and recreational facilities and activities. |
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3. Risk This matter is of very low risk as the recommendation is addressing a statutory compliance issue. |
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4. Financial impact If Council decides that the Municipal Band Trust is not exempt, the financial costs of compliance will have to be borne by the Trust. |
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5. Degree of significance and level of engagement This matter is of low significance and therefore no community consultation has been undertaken. |
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6. Inclusion of Māori in the decision making process Māori have not been specifically consulted on this matter. |
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7. Delegations The Governance Committee has the responsibility for considering matters in relation to Nelson City Council Controlled Organisations and Nelson City Council Controlled Trading Organisations. The Governance Committee has the power to make a recommendation to Council on this matter. |
