AGENDA
Ordinary meeting of the
Governance Committee
Thursday 19 April 2018
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.
Governance Committee
19 April 2018
1. Apologies
1.1 Apologies have been received from Her Worship the Mayor and Councillor Matheson
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 M3325
Recommendation
That the Governance Committee
Confirms the minutes of the meeting of the Governance Committee, held on 8 March 2018, as a true and correct record.
6. Status Report - Governance - 19 April 2018 13 - 14
Document number R9242
Recommendation
That the Governance Committee
Receives the Status Report Governance Committee 19 April 2018 (R9242) and its attachment (A1160658)
7. Chairperson's Report
8. Sister Cities Co-ordinator Report 15 - 17
Document number R9231
Recommendation
That the Governance Committee
Receives the report Sister Cities Co-ordinator Report (R9231).
9. Nelmac Limited Half yearly report to 31 December 2017 18 - 25
Document number R8901
Recommendation
That the Governance Committee
Receives the report Nelmac Limited Half yearly report to 31 December 2017 (R8901) and its attachment (A1922538).
10. Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19 26 - 84
Document number R9098
Recommendation
That the Governance Committee
Receives the report Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19 (R9098) and its attachments (A1923166, A1878583 and A1923167); and
Recommendation to Council
That the Council
Agrees that the Bishop Suter Trust Statement of Intent 2018/19 (A1923167) meets Council’s expectations and is approved as the final Statement of Intent for 2018/19, subject to confirmation of funding for the Trust in the Long Term Plan 2018-28.
11. Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19 85 - 113
Document number R9099
Recommendation
That the Governance Committee:
Receives the report Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19 (R9099) and its attachments (A1923314, A1878584, and A1943599).
Recommendation to Council
That the Council:
Agrees that the Nelson Regional Development Agency’s draft Statement of Intent 2018/19 (A1943599) meets Council’s expectations and is approved as the final Statement of Intent for 2018/19.
Recommendation
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Confirms in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Rob Gunn and Lee Babe from Nelmac remain after the public has been excluded, for Item 2 of the Public Excluded agenda (Nelmac Limited six monthly presentation), 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 Rob Gunn and Lee Babe possess relates to the Nelmac Limited six monthly presentation. |
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 |
Governance Committee Meeting - Public Excluded Minutes - 8 March 2018 |
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 |
Nelmac director appointment
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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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3 |
Nelmac Limited Draft Statement of Intent 2018/19
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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) |
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4 |
Nelmac Limited six monthly strategic presentation from the Board (Rob Gunn/Lee Babe)
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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 |
13. Re-admittance of the public
Recommendation
That the Governance Committee
Re-admits the public to the meeting.
Note:
· Youth Councillors Latai Funaki and Hayden Rose will be in attendance at this meeting. (delete as appropriate)
Governance Committee Minutes - 8 March 2018
Minutes of a meeting of the Governance Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Thursday 8 March 2018, commencing at 1.36p.m.
Present: Councillor B Dahlberg (Deputy Chairperson, presiding), Her Worship the Mayor R Reese, Councillors M Courtney, P Matheson, G Noonan and T Skinner
In Attendance: Councillors B McGurk and S Walker, Chief Executive (P Dougherty), Group Manager Community Services (C Ward), Group Manager Corporate Services (N Harrison), Acting Group Manager Strategy & Communications (N McDonald) and Governance Adviser (E Stephenson)
Apologies: Councillors Barker and Rutledge
1. Apologies
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Resolved GOV/2018/001 That the Governance Committee Receives and accepts the apologies from Councillors Barker and Rutledge. Noonan/Her Worship the Mayor Carried |
2. Confirmation of Order of Business
Deputy Chair Councillor Bill Dahlberg, presiding, advised that the planned Public Forum presentation had been received earlier in the day, whilst the Council meeting was adjourned, due to the presenters being time constrained by the need to catch flights. It was noted that the presentation would be attached to the Public Forum section of these meeting minutes.
3. Interests
There were no updates to the Interests Register, and no interests with items on the agenda were declared.
4.
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Public Forum - NZ Fisheries Museum and Marine Education Centre Trust |
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4.1 Peter Dawson, Ian Kearney and Simon Thomas - NZ Fisheries Museum and Marine Education Centre Trust, previously provided a PowerPoint presentation. The presentation is attached. |
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Attachments 1 Marine Education Centre PowerPoint Presentation |
5. Confirmation of Minutes
5.1 30 November 2017
Document number M3179, agenda pages 6 - 13 refer.
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Resolved GOV/2018/002 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. Matheson/Skinner Carried |
6. Status Report - Governance - 8 March 2018
Document number R9084, agenda pages 13 - 14 refer.
Group Manager Community Services, Chris Ward, provided an update on progress on the Mountain Biking and Gondola item, noting that the matter would be reported back to the committee before the release of the second tranche of funds.
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Resolved GOV/2018/003 That the Governance Committee Receives the Status Report Governance Committee 8 March 2018 (R9084) and its attachment (A1160658). Noonan/Courtney Carried |
7. Chairperson's Report
Deputy Chair Councillor Bill Dahlberg, presiding, advised that there was no Chairperson’s Report as the Chair, Councillor Ian Barker, was away on other Council business.
8. Council Submission on the Overseas Investment Amendment Bill
Document number R9006, agenda pages 15 - 32 refer.
Policy Adviser, Gabrielle Thorpe, introduced Acting Senior Strategic Advisor, Mark Tregurtha to the committee. Ms Thorpe spoke to the report and answered questions. Discussion took place regarding the timing of the submission period, the ability to put forward views, endorsement of the Queenstown Lakes submission, unintended consequences, and the contribution of overseas migrants to Nelson.
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Resolved GOV/2018/004 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).
Noonan/Her Worship the Mayor Carried |
9. Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs
Document number R8498, agenda pages 33 - 41 refer.
Group Manager Community Services, Chris Ward, answered questions and clarified that there were two separate policies, one for Nelson City Council and one that covered Joint CCOs, which would be considered by the next Joint Shareholders Committee in April, and that the reasoning for the change in the reappointment of Directors/Trustees was to assist with continuity.
Attendance: Councillor Matheson left the meeting at 2.08p.m. and returned at 2.10p.m.
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Resolved GOV/2018/005 That the Committee Receives the report Policy Review: Appointment of Directors/Trustees of CCOs and CCTOs (R8498) and its attachment (A284857).
Noonan/Courtney Carried |
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Recommendation to Council GOV/2018/006 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).
Noonan/Courtney Carried |
10. Exclusion of the Public
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Resolved GOV/2018/007 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: Noonan/Skinner 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 |
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 |
The meeting went into public excluded session at 2.13p.m. and resumed in public session at 2.15p.m.
11. Re-admittance of the Public
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Resolved GOV/2018/010 That the Governance Committee Re-admits the public to the meeting.
Her Worship the Mayor/Skinner Carried |
There being no further business the meeting ended at 2.15p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 6: Status Report -
Governance - 19 April 2018
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Governance Committee 19 April 2018 |
REPORT R9242
Status
Report - Governance - 19 April 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 19 April 2018 (R9242) and its attachment (A1160658) |
Rebecca Terry
Governance Advisor
Attachments
Attachment 1: A1160658 - Status Report - Governance Committee 19 Apr2018 ⇩
Item 8: Sister Cities Co-ordinator Report
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Governance Committee 19 April 2018 |
REPORT R9231
Sister Cities Co-ordinator Report
1. Recommendation
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Receives the report Sister Cities Co-ordinator Report (R9231). |
2. Role of the Sister Cities Co-ordinator
2.1 This is a voluntary position within Council responsible now to the Manager Governance and Support Services (Mary Birch), Strategy and Communications Group. Its purpose is to promote and strengthen Nelson City Council’s Sister City relationships.
2.2 Some of the duties of this position are reported against as follows:
To liaise with Nelson City Council’s Sister City organisations
2.3 The three sister city organisations continue to be active and involved in the wider community as well as the formal focus on the sister city relationships. As you will read Eureka is quietly active in a variety of ways.
2.4 Miyazu - Nelson–Miyazu Sister City Association; attended Race Unity Day to fundraise and generally increase their wider community profile. Imonikai an annual celebration of harvest is planned to be celebrated in Miyazu Gardens on 29 April. Miyazu City have advised they are in the early stages of planning a student visit during the year. Around ten students and two chaperones are expected to be here for 5 nights late in July. Discussions are progressing between Nelson and Japan for a Tour by Japanese Choir from Kyoto in 2019. This could be a two night stay in Nelson with up to 30 singers from Kyoto visiting & performing here and Wellington.
2.5 Yang Jiang – the NZ China Friendship Society in April 2018, Nelson Branch have initiated a student Exchange to Yang Jiang. Jane and Ian Lister will accompany the students. The schedule arranged by the school is very exciting and includes attending classes as well as extra-curricular activities. The students are preparing individual and group presentations to be performed to a school audience of 3000. A hotel on Hailing Island has been booked for the weekend. Mayor Reese has written a message to the Mayor of Yang Jiang which the students will deliver.
2.6 The students will report back to Nelson Branch NZCFS on May 18 - Jaycee Room, Founders Park at 7 p.m. You are invited to attend.
2.7 Eureka - Nelson–Eureka Sister City Association (Emeritus); Alayne Hunt who was part of a delegation from Eureka in 2006 made a personal visit during March and was home hosted at Lone Oak in Wakefield. The Nelson Modellers Convention in January promoted the Eureka links as they raffled a quilt called “Redwood Express” which portrayed the Eureka Redwood Express railway and other trains from that area.
To attend Sister City Association Annual General Meetings
2.8 I attended the Nelson China Friendship AGM held in conjunction with Chinese New Year celebration dinner in February.
To provide reports to the Sister Cities Co-ordinating Group on the Co-ordinator’s activities
2.9 Chair meetings of the Sister Cities Co-ordinating Group
2.10 Check draft minutes prior to distribution
To report on Sister City matters to the March and September meetings of the Governance Committee of Council. (Proposed to be May and November)
To attend the Annual Conference of Sister Cities New Zealand organisation.
2.11 I will attend SCNZ conference and Annual General Meeting being held in Lower Hutt the last week of May. Mayor Ray Wallace will host the conference planned to be held in the newly completed Arise Centre. A full interesting programme has been designed focused on the theme "Connecting Globally through Technology".
2.12 There will be numerous opportunities to discuss regional connections in forums and hear a number of the success stories and how you can be part of that success.
To provide advice on funding requirements for each of the three sister cities to the Council officer delegated Sister City responsibility by end of February each year, and if additional funds are required by December.
2.13 Budgets for the coming 2018 -19 year were formulated and submitted to Chris Ward for the planning process – Nelson Eureka Association does not require any finance.
2.14 Recently I have responded to requests from intending visitors to Miyazu for information in regard to contacting people from the Nelson Miyazu Association.
2.15 One was on behalf of Caroline Matthews who as a child presented flowers to the Miyazu mayoress on the very first visit to Nelson. Now Caroline Horton, married living in Australia with her husband and children they intend to visit Miyazu city in the near future. The proposed 2018 visit has been pushed out because of health issues. They were excited to hear they may well be able to meet Seiichiro Tokuda whose father Mr Tokuda Senior was Chairperson of the Miyazu New Zealand Association when the sister city relationship began. I understand Seiichiro is very proud of his father’s contribution to the relationship.
Gail Collingwood
Sister City Co-ordinator
Attachments
Item 9: Nelmac Limited Half yearly report to 31 December 2017
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Governance Committee 19 April 2018 |
REPORT R8901
Nelmac Limited Half yearly report to 31 December 2017
1. Purpose of Report
1.1 To receive the Nelmac Limited half yearly report to 31 December 2017.
2. Recommendation
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Receives the report Nelmac Limited Half yearly report to 31 December 2017 (R8901) and its attachment (A1922538). |
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 2017 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 $430,918 which is 18% lower than the same time the previous financial year.
4.2 The achievement of the SOI forecast profit before tax of $1.238 million will be a stretch based on current demand with the Board forecasting full year PBT of $1.14 million. The February 2018 storm events and the resulting cleanup work will assist in meeting the forecast.
4.3 Overall Nelmac’s six months revenue was up slightly $363,000 (2.6%) on the same time last year, although some areas including Utilities and Building services saw a decline. The Greenspaces Turf and Sportsfields spring programme of works was affected by wet weather. Revenue movement is offset by expenditure increases of $458,000 (3.4%), mainly on new works. Nelmac is experiencing a change in the mix of NCC work, along with more work being tendered and the cost of winning and delivering work increasing.
4.4 The report shows that Nelmac continues to grow the net asset base, with $500,000 invested in fixed assets (funded from operations) and debt reductions of $500,000.
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: A1922538 - Nelmac 6 month report to 31 December 2017 ⇩
Item 10: Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19
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Governance Committee 19 April 2018 |
REPORT R9098
Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19
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 draft Statement of Intent 2018/19 (Attachment 3).
2. Recommendation
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Receives the report Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19 (R9098) and its attachments (A1923166, A1878583 and A1923167). |
Recommendation to Council
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Agrees that the Bishop Suter Trust Statement of Intent 2018/19 (A1923167) meets Council’s expectations and is approved as the final Statement of Intent for 2018/19, subject to confirmation of funding for the Trust in the Long Term Plan 2018-28. |
3. Background
3.1 The Bishop Suter Trust, 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 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 2017 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. The draft SOI prepared by the Trust is attached (Attachment 3).
3.4 The Mayor wrote to the Trust in December 2017 with the Council’s expectations for matters to be addressed by the Trust in the 2018/19 SOI. A copy of the Letter of Expectation that was sent to the Trust is attached (Attachment 2). The specific expectations were:
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:
· Opportunities to increase third party funding
· Ensuring the staff have the right skills and capacity
· Demonstrating commitment to the principles of good asset management
· Optimising the Governance Group’s skillset and blend
· Development of a Governance succession plan;
· Cybersecurity;
· Sustainability; and
· Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards.
3.5 The Chairperson Craig Potton, Suter Trustees John Hambleton and Margaret Soderberg, 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 five year draft SOI. This is useful in that it helps show the strategic direction the Trust is taking over the medium term and indicates how it will meet the Council’s expectations. However, the SOI will still need to be reviewed and updated annually.
4. Discussion
Half yearly report
4.1 Visitor numbers are above target, with 74,752 visitors recorded in the six months to 31 December 2017. The annual target is 110,000 visitors.
4.2 Community events and public programmes are also ahead of target with 23 daytime talks delivered (annual target – 30).
4.3 Revenue targets have been exceeded (approximately $60,000 ahead of budget), with additional income from rent, whilst expenditure is on track, although payable liabilities are $71,000 more than budget. Overall the Trust’s finances are being well managed and are in good health.
4.4 The Trust notes the serious health and safety accident involving the fatality of a contractor working at the Suter in October 2017. This is subject to an ongoing WorkSafe NZ investigation.
Draft Statement of Intent
4.5 The draft SOI sets out a five year plan that seeks to leverage the re-development to raise the reputation and profile of the Suter from being a regional art gallery to becoming nationally significant.
4.6 It includes some significant ‘stretch’ fundraising targets, including:
4.6.1 increasing acquisitions fund donations from $80,000 a year in 2016/17 to $1.2 million in financial year 2022/23
4.6.2 increasing donations and sponsorships for exhibitions from 0 to $110,000 annually by 2022/23
4.7 Some increases have also been made to the non-financial targets e.g. visitor numbers/community programmes. These do not appear to be as challenging to achieve, based on current performance reported in the six monthly report.
4.8 Additional funding for the Trust has been included in the Council’s draft Long Term Plan 2018-28. This is to provide for additional staffing ($80,000) and ongoing maintenance ($20,000). The draft SOI has assumed that this funding will be confirmed once Council adopts the Long Term Plan in June 2018. If that funding is not confirmed, the SOI will need to be revisited.
Other matters
4.9 Officers have discussed fair pay and gender equality issues with the Trust, and are assured that these principles are applied to its staff.
4.10 The Trust is reviewing the skills needed on staff and paragraph 7.2.1 of the SOI outlines the priorities for additional staff funding.
4.11 The Trust is actively considering succession planning and how best to ensure it retains the right mix of passion for the arts, business acumen, strategic planning and financial management.
4.12 Other matters raised in the Letter of Expectation are being dealt with through the Suter’s Audit and Risk subcommittee.
4.13 Officers believe that the draft Statement of Intent aligns with Council expectations and can be adopted as the final SOI for the 2018/19 year.
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 provide feedback to the Trust in respect of further changes.
6. Conclusion
6.1 The Bishop Suter Trust has submitted the draft Statement of Intent 2018/19 as required by the Local Government Act. Council has an opportunity to provide feedback to the Board or accept the draft Statement of Intent as final.
Roger Ball
Acting Group Manager Community Services
Attachments
Attachment 1: A1923166 - Bishop Suter Trust - six month report to Dec2017 - 1Mar2018 ⇩
Attachment 2: A1878583 - Mayor's letter to Bishop Suter Trust - Letter of Expectation - 19Dec2017 ⇩
Attachment 3: A1923167 -Bishop Suter Trust - Statement of Intent - 2018-2023 - 1Mar2018 ⇩
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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 the Council. |
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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. |
Item 10: Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19: Attachment 1
Item 10: Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19: Attachment 2
Item 10: Bishop Suter Trust Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19: Attachment 3
Item 11: Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19
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Governance Committee 19 April 2018 |
REPORT R9099
Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19
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 2018/19.
2. Recommendation
Recommendation to Council
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Agrees that the Nelson Regional Development Agency’s draft Statement of Intent 2018/19 (A1943599) meets Council’s expectations and is approved as the final Statement of Intent for 2018/19. |
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 2017 is attached (Attachment 1).
3.3 Each CCO must also submit a draft Statement of Intent to Council by 1 March indicating its proposed activities for the following financial years. The draft SOI prepared by the NRDA is included as Attachment 3.
3.4 The Council previously gave direction to the NRDA on the matters it wished to see considered (refer Letter of Expectation, Attachment 2).
3.5 An NRDA Board member and the Chief Executive, Mark Rawson, will be in attendance at the meeting to answer any questions.
4. Discussion
Half Yearly report
4.1 The NRDA presented highlights from its half yearly report to the Joint Committee meeting on 27 March 2018. The key highlights are:
· The completion of the first phase of the Nelson Tasman Regional Identity.
· $470,000 funding support attracted through the Regional Business Partner Programme.
· 7% growth in visitor spend to the year ending December 2017.
· 17% year on year growth in international visitor spend.
· 12% growth in delegate days in the business events sector.
4.2 The NRDA is on track to meet the Statement of Intent financial target of delivering a balanced budget or better on the shareholder investment of $1.37 million base funding at 30 June 2018.
4.3 The Regional Growth Strategy (refer section 1 in Attachment 1) is a key piece of work to be delivered for the Top of the South (Nelson, Tasman and Marlborough). The expectation is the Strategy will be delivered in 2018.
4.4 It is noted the NRDA is investigating alternative premises to co-locate with other similar activities. The Board can address this matter at the meeting.
Draft Statement of Intent
4.5 The draft SOI has a major focus on building on the regional identity framework. Its three key activity areas are:
· Regional Identity Talent and Investment Attraction: Establishing the future sustainable economic development aspirations of the Regions and inspiring others to share their Extraordinary Nelson Tasman talent and investment identity stories and experiences.
· Business Development and Innovation: Inspiring and supporting existing and new businesses and business people to think differently, embrace new behaviours.
· Destination Management: Inspiring the sharing and delivery of the Extraordinary Nelson Tasman identity visitor and talent stories and experiences.
4.6 Within these three activity areas, a set of 12 key workstreams (‘focus areas’) are identified, each with key performance measures.
4.7 The Board has set a revenue target of $1,106,495 from non-Council sources. This equates to approximately 47% of total revenue. The Board note the proposed reduction in TDC funding ($400,000 pa to $300,000). The Board notes this will result in an imbalance to the funding model and an influence on activities.
4.8 The draft SOI contains monitoring indicators as an appendix. These are key economic statistics which reflect the status of the economy, but are not performance measures for the organisation. The draft SOI also contains commentary in relation to the requirements set out in the letter of expectation.
Letter of Expectation
4.9 The specific expectations included in the Letter of Expectation are:
(a) Cybersecurity;
(b) Sustainability;
(c) Recovery planning, in particular a request to identify potential hazards and how recovery is planned for these hazards; and
(d) Revised performance measures.
4.10 Sections 7 to 10 of the draft SOI (Attachment 3) appear to adequately address these matters.
4.11 In regards to general expectations the Board has only provided one year of financial information rather than the three years requested.
5. Options
5.1 There is no decision to be made in respect of the half yearly report. In relation to the draft SOI, the Committee can recommend it for approval to Council or can provide feedback to the NRDA in respect of further changes.
Clare Barton
Group Manager Environmental Management
Attachments
Attachment 1: A1923314 - Nelson Regional Development Agency - six month report to shareholders - Feb 2018 ⇩
Attachment 2: A1878584 - Nelson Regional Development Agency - Letter of Expectation - 19Dec2017 ⇩
Attachment 3: A1943599 - Nelson Regional Development Agency - Final Draft SoI 2018-19 Board Approved ⇩
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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 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 This is a very low risk decision as it relates to a statutory process. |
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4. Financial impact The NRDA’s draft budget is aligned with funding proposed in the draft Long Term Plan 2018-28. |
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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 including statements of intent, half yearly reports and appointments of directors. |
Item 11: Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19: Attachment 1
Item 11: Nelson Regional Development Agency Half Yearly Report to 31 December 2017 and Draft Statement of Intent 2018/19: Attachment 2
