AGENDA
Ordinary meeting of the
Governance Committee
Thursday 8 March 2018
To follow the Council meeting
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Councillor Bill Dahlberg (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Ian Barker, Mel Courtney, 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.
Governance Committee
8 March 2018
1. Apologies
1.1 Apologies have been received from Councillor Barker and 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
4.1 Peter Dawson, Ian Kearney and Simon Thomas - NZ Fisheries Museum and Marine Education Centre Trust
Document number M3179
Recommendation
That the Governance Committee
Confirms the minutes of the meeting of the Governance Committee, held on 30 November 2017, as a true and correct record.
6. Status Report - Governance - 8 March 2018 13 - 14
Document number R9084
Recommendation
That the Governance Committee
Receives the Status Report Governance Committee 8 March 2018 (R9084) and its attachment (A1160658).
7. Chairperson's Report
8. Council Submission on the Overseas Investment Amendment Bill 15 - 32
Document number R9006
Recommendation
That the Governance Committee
Receives the report Council Submission on the Overseas Investment Amendment Bill (R9006) and its attachments (A1901635, A1916117); and
Endorses the attached submission (A1901635).
9. Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs 33 - 41
Document number R8498
Recommendation
That the Committee
Receives the report Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs (R8498) and its attachment (A284857).
Recommendation to Council
That the Council
Adopts the reviewed and amended Nelson City Council Policy for the Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (A284857).
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) |
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1 |
City of Nelson Civic Trust - New Trustee
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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 |
11. Re-admittance of the public
Recommendation
That the Governance Committee
Re-admits the public to the meeting.
Note:
· Youth Councillors Jenna Stallard and Nico Frizzell 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 30 November 2017, commencing at 9.00am
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
In Attendance: Councillors B McGurk and S Walker, Senior Strategic Adviser (N McDonald), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), and Governance Adviser (P White)
Apologies: Nil
Her Worship the Mayor and Councillor Tim Skinner were not present at the commencement of the meeting.
1. Apologies
No apologies were received.
2. Confirmation of Order of Business
The Chair confirmed that, if required, the meeting would adjourn at 10am for a Governance workshop and briefing.
Attendance: Councillor Skinner joined the meeting at 9.03am.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 26 October 2017
Document number M3044, agenda pages 8 - 11 refer.
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Resolved GOV/2017/086 That the Governance Committee Confirms the minutes of the meeting of the Governance Committee, held on 26 October 2017, as a true and correct record. Courtney/Dahlberg Carried |
Attendance: Her Worship the Mayor joined the meeting at 9.05am.
6. Status Report - Governance - 30 November 2017
Document number R8723, agenda pages 12 - 13 refer.
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Resolved GOV/2017/087 That the Governance Committee Receives the Status Report Governance Committee 30 November 2017 (R8723) and its attachment (A1160658). Noonan/Skinner Carried |
7. Chairperson's Report
The Chairperson acknowledged that the credit rating agency, Standard and Poor's, had re-affirmed its current AA long-term and A-1+ short-term credit rating for the Nelson City Council.
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Resolved GOV/2017/088 That the Governance Committee Receives the Chairperson’s verbal report. Barker/Noonan Carried |
8. Statement of Expectation 2018/19 - Bishop Suter Trust
Document number R8697, agenda pages 14 - 89 refer.
Group Manager Community Services, Chris Ward spoke to the report.
Suter Trust Chairperson Craig Potton and Trustees Gabrielle Hervey and Margaret Soderberg spoke to the meeting and gave a briefing on visitor numbers and demographics over the past year, what made art galleries a popular visitor destination and proposals to increase revenue streams.
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Resolved GOV/2017/089 That the Governance Committee Receives the report Statement of Expectation 2018/19 - Bishop Suter Trust (R8697) and its attachments (A1512571 and A1870160). Matheson/Dahlberg Carried |
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Recommendation to Council GOV/2017/090 That the Council Confirms the general matters to be included in the Bishop Suter Trust Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and Confirms the specific matters to be included in the Bishop Suter Trust Statement of Expectation letter as: • Development of a five year strategic plan, that; - Articulates a clear vision for the Suter; and - Identifies issues, opportunities and costs associated with delivering on that vision, including: o Opportunities to increase third party funding o Ensuring the staff have the right skills and capacity o Demonstrates Commitment to the principals of good asset management o Optimising the Governance Group’s skillset and blend; and • Development of a Governance succession plan; • Cybersecurity; and • Sustainability; and • Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards. Noonan/Courtney Carried |
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Attendance: Councillor Noonan left the meeting at 9.55am. |
9. Statement of Expectation 2018/19 - Nelson Regional Development Agency
Document number R8745, agenda pages 90 - 140 refer.
Group Manager Community Services Chris Ward spoke to the report.
The members discussed the indicative measures of success and achievement contained in the previous Statement of Intent, noting that they were time-bound and therefore now out of date. The meeting agreed to add to the resolution a request for the review of the performance measures in the Statement of Expectation.
Attendance: Councillor Noonan returned at 10.03am.
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Resolved GOV/2017/091 That the Governance Committee Receives the report Statement of Expectation 2018/19 - Nelson Regional Development Agency (R8745) and its attachments (A1851817 & A1603844). Dahlberg/Rutledge Carried |
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Recommendation to Council GOV/2017/092 That the Council Confirms the general matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.1 to 4.14 of report R8745; and Confirms the specific matters to be included in the Statements of Expectation letters as: • Cybersecurity; and • Sustainability; and • Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards. · Revised performance measures. Dahlberg/Rutledge Carried |
10. Draft Rates Remissions Policy
Document number R8732, agenda pages 141 - 147 refer.
Group Manager Corporate Services Nikki Harrison spoke to the report.
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Resolved GOV/2017/093 That the Governance Committee Receives the report Draft Rates Remissions Policy (R8732) and its attachments (A1769391 and A1866257); and Delegates to Council any decision making on the revised Revenue and Financing Policy and the revised Policy on Remission and Postponement of Rates on Maori Freehold Land in view of timing constraints. Courtney/Noonan Carried |
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Recommendation to Council GOV/2017/094 That the Council Approves changes to the Rates Remission Policy for concurrent consultation during the submission process for the Consultation Document to the Long Term Plan 2018-28. Dahlberg/Rutledge Carried |
11. Nelmac Letter of Expectation 2018/19 - referral to Council
Document number R8726, agenda pages 148 - 149 refer.
Group Manager Corporate Services Nikki Harrison spoke to the report.
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Resolved GOV/2017/095 That the Governance Committee Receives the report Nelmac Letter of Expectation 2018/19 - referral to Council (R8726); and Refers the Nelmac Letter of Expectation directly to the 14 December 2017 Council meeting. Noonan/Courtney Carried |
12. Exclusion of the Public
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The meeting went into public excluded session at 10.13am and resumed in open session at 10.15am.
Please note that as the only business transacted in public excluded was to confirm the minutes, this business has been recorded in the public minutes. In accordance with the Local Government Official Information Meetings Act 1987, no reason for withholding this information from the public exists.
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Resolved GOV/2017/097 That the Governance Committee Confirms the minutes of part of the meeting of the Governance Committee, held with the public excluded on 26 October 2017, as a true and correct record. Matheson/Dahlberg Carried |
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10. Re-admittance of the Public |
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Resolved GOV/2017/098 That the Governance Committee Re-admits the public to the meeting. Noonan/Skinner Carried |
There being no further business the meeting ended at 10.15am..
Confirmed as a correct record of proceedings:
Chairperson
Date
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Governance Committee 8 March 2018 |
REPORT R9084
Status Report - Governance - 8 March 2018
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 8 March 2018 (R9084) and its attachment (A1160658). |
Attachments
Attachment 1: A1160658 Status Report - Governance Committee ⇩
Item 8: Council Submission on the Overseas Investment Amendment Bill
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Governance Committee 8 March 2018 |
REPORT R9006
Council Submission on the Overseas Investment Amendment Bill
1. Purpose of Report
1.1 To present Council’s submission on the Overseas Investment Amendment Bill for retrospective approval.
2. Recommendation
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Receives the report Council Submission on the Overseas Investment Amendment Bill (R9006) and its attachments (A1901635, A1916117); and Endorses the attached submission (A1901635). |
3. Background
3.1 On 14 December 2017 a Bill was introduced to amend the Overseas Investment Act 2005. The Bill implements the Government’s policy to bring residential land within the category of "sensitive land" for the purposes of the Act.
3.2 If approved these changes will mean that overseas persons who are not resident in New Zealand will generally not be able to buy existing houses or other pieces of residential land. The Government's objective is to make homes more affordable for New Zealand residents and to build the economy by helping redirect capital to more productive uses.
3.3 The Select Committee consultation was over the holiday period (19 December – 23 January 2018) and thus staff were unable to seek Council approval in advance and therefore present the submission now for retrospective approval. Since then the Select Committee has extended the consultation deadline to the 16 February 2018. If approval is not given the submission will be withdrawn.
4. Discussion
4.1 Queenstown Lakes District Council has made a comprehensive submission which raised a number of concerns about the consequences of the amendment. A copy of its full submission can be found as part of attachment 1.
4.2 Council’s submission support three of the points raised by Queenstown Lakes. In summary these are:
4.2.1 The Bill requires further research and development to properly evaluate the consequences;
4.2.2 The submission period fell over the Christmas holiday break which provided insufficient time to properly consider the proposed amendments;
4.2.3 The Bill does not sufficiently acknowledge that overseas buyers also form a key part of regional labour markets or the role of home ownership in the attraction and retention of workers in districts that rely on migrants as a source of labour.
4.3 The second point (4.2.2), that of inadequate time to properly consider the amendment, has been somewhat mitigated through a subsequent extension to the consultation period.
4.4 Local Government New Zealand (LGNZ) has not made a submission on the proposed amendment.
5. Options
5.1 The Committee can approve the submission. If it chooses not to approve the submission it will be withdrawn from the Select Committee process. The submission may not be amended.
6. Conclusion
6.1 Officers recommend that the attached submission be approved.
Gabrielle Thorpe
Policy Adviser
Attachments
Attachment 1: A1901635 - Nelson City Council submission on the Overseas Investment Amendment Bill ⇩
Attachment 2: A1916117 - Additional Information - Overseas Investment Amendment Bill ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government This report supports Council’s ability to influence legislation that will impact on its ability to deliver services to the community. |
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2. Consistency with Community Outcomes and Council Policy The attached submission supports the following Community Outcomes: · Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement · Our region is supported by an innovative and sustainable economy |
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3. Risk Approval of the Council’s submission on the Overseas Investment Amendment Bill is of low risk to Council. |
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4. Financial impact This contents of this report do not result in any financial impact. |
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5. Degree of significance and level of engagement This matter is of low significance and community engagement has not been undertaken. |
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6. Inclusion of Māori in the decision making process Māori have not been consulted on this report. |
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7. Delegations The Governance Committee has the responsibility for considering business, economic development and tourism in Nelson and the power to decide on submissions to external bodies relevant to its areas of responsibility. |
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Governance Committee 8 March 2018 |
REPORT R8498
Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs
1. Purpose of Report
1.1 To consider the reviewed and amended Policy for the Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (the Policy), and recommend its adoption to Council.
2. Recommendation
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Receives the report Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs (R8498) and its attachment (A284857). |
Recommendation to Council
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Adopts the reviewed and amended Nelson City Council Policy for the Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (A284857). |
3. Background
3.1 Under s57 of the Local Government Act 2002:
A local authority must adopt a policy that sets out an objective and transparent process for—
(a) the identification and consideration of the skills, knowledge, and experience required of directors of a council organisation; and
(b) the appointment of directors to a council organisation; and
(c) the remuneration of directors of a council organisation.
3.1 This report deals with s57(a) and (b) requirements - Council has a separate policy for remuneration [s57(c)].
3.2 The Policy covers the appointment and re-appointment process for directors/trustees of organisations such as Nelmac Ltd, the Nelson Regional Development Agency and the Bishop Suter Trust.
3.3 The Policy was last reviewed in 2015, and is scheduled for review every three years.
3.4 The Joint Appointment of CCOs and CCTOs Policy will be reviewed and presented to the Joint Shareholders Committee on 17 April 2018, to ensure consistency between the two policies.
4. Discussion
4.1 A number of appointments have been made since the policy was last reviewed. In general it is working well. The review has resulted in three substantive changes and some minor grammatical changes.
4.2 The substantive changes are as follows:
Section 4.1.3 of the Policy
4.3 The Policy now specifies that the Board Chairperson or another Board member should be included on any interview panel.
4.4 This change will ensure that candidates are assessed for ‘fit’ with existing board members.
Section 5.1 to 5.4 of the Policy
4.5 These clauses replace the previous policy clause 5.1 which read:
‘No Director/Trustee may be reappointed for a fourth successive term unless there are special circumstances.’
4.6 The proposed changes recognise that it is generally desirable that a Board Chair is appointed who has previously served as an ordinary Board member. This allows the Chair to develop an understanding of the organisation and provides for continuity of direction.
4.7 Under the proposed wording an individual could serve three terms as an ordinary board member then three as a Chair.
Section 6 of the Policy
4.8 This is a new section which reflects changes that have been requested through Statements of Intent over the last couple of years. This performance review is useful for identifying any skills/experience required from new Board members.
5. Options
5.1 The Committee can either recommend to adopt the revised policy in full or request further changes.
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Option 1: Adopt policy as amended by officers |
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Advantages |
· Policy amendments deal with issues raised during application of the policy by officers |
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Risks and Disadvantages |
· None |
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Option 2: Request further changes to the policy |
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Advantages |
· Gives Committee opportunity to influence policy |
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Risks and Disadvantages |
· Significant changes may have unintended consequences when applied in practice · Delay in adoption of the policy |
6. Conclusion
6.1 Council must have a policy on appointment of directors/Trustees to Council Controlled Organisations. Officers have amended the current policy to reflect current practice and direction from the Committee over the last three years.
Chris Ward
Group Manager Community Services
Attachments
Attachment 1: A284857 - draft Policy for Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations March 2018 ⇩
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Important considerations for decision making |
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1. Fit with Purpose of Local Government This Policy is a statutory requirement. |
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2. Consistency with Community Outcomes and Council Policy This Policy contributes to the outcome ‘Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement’. |
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3. Risk The Policy amendments have been recommended in order to strengthen good practice in making appointments to Council Controlled Organisations. |
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4. Financial impact None. |
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5. Degree of significance and level of engagement This matter is of low significance as the Policy applies to only a small number of people and is reflective of good governance. |
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6. Inclusion of Māori in the decision making process Maori have not been involved in developing this Policy. |
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7. Delegations The Governance Committee has the responsibility for considering matters relating to Council Controlled Organisations and Council Controlled Trading Organisations. It has the power to make a recommendation to Council on the development or review of policies and strategies relating to its areas of responsibility. |
