AGENDA
Ordinary meeting of the
Joint Shareholders Committee
Wednesday 23 May 2018
Commencing at 9.00am
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: Her Worship the Mayor of Nelson Rachel Reese (Chairperson), His Worship the Mayor of Tasman Richard Kempthorne, Nelson City Councillors Ian Barker, Mel Courtney, Paul Matheson, Gaile Noonan and Tim Skinner, Tasman District Councillors Tim King, Stuart Bryant, Pete Canton, David Ogilvie and Trevor Tuffnell.
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.
Joint Shareholders Committee
23 May 2018
1. Apologies
1.1 An apology has been received from Councillor Barker
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 M3430
Recommendation
That the Joint Shareholders Committee
Confirms the minutes of the meeting of the Joint Shareholders Committee, held on 17 April 2018, as a true and correct record.
6. Tasman Bays Heritage Trust: Draft Statement of Intent 2018/19: Further Information 13 - 72
Document number R9276
Recommendation
That the Joint Shareholders Committee
Receives the report Tasman Bays Heritage Trust: Draft Statement of Intent 2018/19: Further Information (R9276) and its attachment (A1960731); and
Provides the following additional feedback to the Tasman Bays Heritage Trust Board on its draft Statement of Intent:
That Nelson City Council and Tasman District Council request repayment of outstanding loans at $25,000 per annum per Council; and
That a formal loan agreement be put in place between the Tasman Bays Heritage Trust and each Council.
Recommendation
That the Joint Shareholders 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:
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 |
Joint Shareholders Committee Meeting - Public Excluded Minutes - 17 April 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 · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities |
2 |
Port Nelson Limited director reappointments
|
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 |
8. Re-admittance of the public
Recommendation
That the Joint Shareholders Committee
Re-admits the public to the meeting.
Joint Shareholders Committee Minutes - 17 April 2018
Minutes of a meeting of the Joint Shareholders Committee
Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson
On Tuesday 17 April 2018, commencing at 1.32pm
Present: His Worship the Mayor of Tasman R Kempthorne (Chairperson), Her Worship the Mayor of Nelson R Reese, Nelson City Councillors I Barker, M Courtney, G Noonan, and T Skinner, Tasman District Councillors T King (Deputy Chairperson), S Bryant, D Ogilvie and T Tuffnell
In Attendance: Councillors M Rutledge, S Walker, Chief Executive (P Dougherty), Acting Group Manager Community Services (R Ball), Group Manager Corporate Services (N Harrison), Tasman District Council Corporate Services Manager (M Drummond) and Governance Adviser (E Stephenson)
Apologies: Councillors Matheson and Canton and Councillor King for lateness
1. Apologies
Resolved JSC/2018/001 That the Joint Shareholders Committee Receives and accepts the apologies from Councillors Matheson and Canton and from Councillor King for lateness. Bryant/Noonan 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 King subsequently declared an interest in Item 9 – Policy Review: Joint Remuneration for directors of CCTOs and in Item 3 of the Public Excluded Agenda - Port Nelson Limited director reappointments.
4. Public Forum
There was no public forum.
5. Confirmation of Minutes
5.1 14 November 2017
Document number M3117, agenda pages 8 - 12 refer.
Resolved JSC/2018/002 That the Joint Shareholders Committee Confirms the minutes of the meeting of the Joint Shareholders Committee, held on 14 November 2017, as a true and correct record. Courtney/Tuffnell Carried |
6. Port Nelson Limited half yearly report to 31 December 2017
Document number R8909, agenda pages 13 - 18 refer.
Resolved JSC/2018/003 That the Joint Shareholders Committee Receives the report Port Nelson Limited half yearly report to 31 December 2017 (R8909) and its attachment (A1919039). Her Worship the Mayor/Barker Carried |
7. Tasman Bays Heritage Trust Half Yearly Report to 31 December 2017 and draft Statement of Intent 2018/19
Document number R9101, agenda pages 19 - 73 refer.
CEO Nelson Provincial Museum, Lucinda Blackley-Jimson and Tasman Bays Heritage Trust Trustee, Chris Bowater spoke to the report, tabled a presentation and answered questions. Acting Group Manager Community Services, Roger Ball answered questions. Discussion included:
· the Trust had only heard that the higher loan repayment might be requested a few weeks ago, it was requesting the opportunity for the full board to consider the matter
· the Trust’s understanding that the higher level of repayments had been for a three year period
· both councils had accounted for the higher loan repayment amount in their LTPs
· staff were happy with the Statement of Intent, the substantive question was the level of loan repayments and the effect on the Trust’s future plans.
Attendance: Councillor King entered the meeting at 1.59p.m.
The meeting agreed to restructure the resolution so that a direction could be given to the Trust when it considered the matter at its Board meeting and that a further meeting of the Joint Shareholders Committee be convened to receive the Trust’s feedback regarding the consequences of maintaining the higher loan repayment amount.
Resolved JSC/2018/004 That the Joint Shareholders Committee Receives the report Tasman Bays Heritage Trust Half Yearly Report to 31 December 2017 and draft Statement of Intent 2018/19 (R9101) and its attachments (A1940853, A1940851, A1940852 and A1871384); 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; and Provides the following feedback to the Tasman Bays Heritage Trust Board on its draft Statement of Intent: · That Nelson City Council and Tasman District Council request that the Board considers maintaining repayment of outstanding loans at up to $100,000 per annum per Council and reports back on the implications to the Trust by 18 May 2018; and · An update on options to house and care for the Nelson Tasman regional heritage Collection be provided via the Joint Shareholders Working Group at the next meeting of the Joint Shareholders Committee; and · Strategic Objective Five in the Statement of Intent is altered to read ‘To provide appropriate care for the regional Collection and to prepare it for relocation to a fit-for-purpose storage facility’. Bryant/His Worship the Mayor of Tasman Carried |
Attachments 1 A1955035 - Tasman Bays Heritage Trust tabled presentation |
8. Nelson Airport Limited half-yearly report to 31 December 2017
Document number R9143, agenda pages 74 - 97 refer.
Paul Steere and Robert Evans of Nelson Airport Ltd answered questions regarding the progress of building at the Airport.
Resolved JSC/2018/005 That the Joint Shareholders Committee Receives the report Nelson Airport Limited half-yearly report to 31 December 2017 (R9143) and its attachments (A1929980 and A1929981) Tuffnell/Courtney Carried |
Councillor King declared an interest in Item 9 – Policy Review: Joint Remuneration for directors of CCTOs and left the meeting at 2.31p.m.
9. Policy Review: Joint remuneration for directors of CCTOs
Document number R9076, agenda pages 98 - 103 refer.
Group Manager Corporate Services, Nikki Harrison, confirmed that the policy was due for review and only minor amendments were being made. Ms Harrison noted that tenure for directors was covered in a separate Appointment Policy, which was due for review in November of 2018.
Resolved JSC/2018/006 That the Joint Shareholders Committee Receives the report Policy Review: Joint remuneration for directors of CCTOs (R9076) and its attachment (A1929440); and Approves the reviewed and amended Nelson City and Tasman District Council Policy for Jointly setting remuneration for Directors of Council Controlled Trading Organisations (A1929440). Bryant/Noonan Carried |
10. Exclusion of the Public
Paul Steere (Chair) and Roberts Evans (CEO), of Nelson Airport Limited, were in attendance for Item 1 of the Public Excluded agenda to answer questions and, accordingly, the following resolution was required to be passed:
Resolved JSC/2018/007 That the Joint Shareholders Committee Confirms in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Paul Steere and Robert Evans remain after the public has been excluded, for Item 1 of the Public Excluded agenda (Nelson Airport Limited – Draft Statements of Intent 2018 - 2019), 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 Robert Evans possess relates to the Nelson Airport Limited – Draft Statements of Intent 2018 – 2019.
Her Worship the Mayor/His Worship the Mayor of Tasman Carried |
Resolved JSC/2018/008 That the Joint Shareholders 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: Her Worship the Mayor/His Worship the Mayor of Tasman 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 |
Joint Shareholders Committee Meeting - Public Excluded Minutes - 14 November 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)(b)(ii) To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information |
2 |
Nelson Airport Limited - Draft Statement of Intent 2018-2019
|
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 |
3 |
Port Nelson Limited director reappointments
|
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 2.35p.m. and resumed in public session at 3.15p.m.
11. Re-admittance of the Public
Resolved JSC/2018/009 That the Joint Shareholders Committee Re-admits the public to the meeting.
Tuffnell/Barker Carried |
There being no further business the meeting ended at 3.15p.m..
Confirmed as a correct record of proceedings:
Chairperson Date
Item 6: Tasman Bays Heritage Trust: Draft Statement of Intent 2018/19: Further Information
|
Joint Shareholders Committee 23 May 2018 |
REPORT R9276
Tasman Bays Heritage Trust: Draft Statement of Intent 2018/19: Further Information
1. Purpose of Report
1.1 To decide on an outstanding matter in relation to the draft Statement of Intent (SOI) from the Tasman Bays Heritage Trust (the Trust). This relates to the level of loan repayments.
2. Recommendation
3. Background
3.1 At its meeting on 17 April 2018 the Committee received a report (R9101) regarding the Trust’s half yearly report and draft Statement of Intent. A copy of report R9101 is attached. Following a presentation from representatives of the Trust and discussion, the Committee resolved as follows:
That the Joint Shareholders Committee
Receives the report Tasman Bays Heritage Trust Half Yearly Report to 31 December 2017 and draft Statement of Intent 2018/19 (R9101) and its attachments (A1940853, A1940851, A1940852 and A1871384); 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; and
Provides the following feedback to the Tasman Bays Heritage Trust Board on its draft Statement of Intent:
· That Nelson City Council and Tasman District Council request that the Board considers maintaining repayment of outstanding loans at up to $100,000 per annum per Council and reports back on the implications to the Trust by 18 May 2018; and
· An update on options to house and care for the Nelson Tasman regional heritage Collection be provided via the Joint Shareholders Working Group at the next meeting of the Joint Shareholders Committee; and
· Strategic Objective Five in the Statement of Intent is altered to read ‘To provide appropriate care for the regional Collection and to prepare it for relocation to a fit-for-purpose storage facility’.
4. Discussion
4.1 The Trust was asked by the Committee to provide advice on the implications for its budget and work programme of this level of loan repayment by 18 May. Officers now understand that the Trust is proposing to set a lower repayment level and to accumulate cash reserves. These reserves are intended to fund any critical maintenance issues that develop at the Isel Park facility and to potentially fund the initial phases of the new storage facility project. Trust representatives will be in attendance at the meeting to confirm this information.
4.2 The main options are for loan repayments at:
4.2.1 $25,000 per annum per Council. This would allow the Trust to continue to accumulate cash reserves for future projects.
4.2.2 $100,000 per annum per Council. This would be consistent with loan repayments made in the last three years, but would reduce the ability of the Trust to accumulate reserves.
4.2.3 Some other amount, either the same for both Councils or differing amounts.
4.3 The Councils have recently considered their funding for the Trust during deliberations on the Councils’ respective Long Term Plans (LTPs). An update on outcomes from the deliberations will be provided at the Committee meeting.
4.4 The Joint Shareholders Committee has the delegated authority to determine matters in relation to the Trust’s SOI, however funding from the Councils is determined by their own LTP and Annual Plan processes. This is also referred to in a Memorandum of Understanding between the Councils and the Trust (dated 2010), which sets out that the Trust should align its financials with the provisions in the Councils’ individual LTPs.
4.5 Should the Committee not have an agreed view on the level of loan repayments then it will be for each Council to agree this individually with the Trust. Regardless of the amount(s) decided it is recommended that each Council enter into a formal loan agreement with the Trust.
5. Options
5.1 In relation to the level of loan repayments, the Committee has three main options, as outlined below:
Option 1: Request loan repayments at $25,000 per annum per Council |
|
Advantages |
· Less impact on draft SOI budgets, able to accumulate reserves · No or less impact on TBHT’s work programme |
Risks and Disadvantages |
· TBHT could end up retaining significant debt whilst entering into any capital development programme |
Option 2: Request loan repayments at $100,000 per annum per Council |
|
Advantages |
· Consistent with approach over last three years · Trust continues to repay its loans in a timely way prior to capital investment |
Risks and Disadvantages |
· Current budget in draft SOI would need to be re-worked – less ability to accumulate reserves · Likely to have an implication for TBHT’s work programme in the SOI |
Option 3: Each Council to negotiate loan repayments separately with the Trust |
|
Advantages |
· Allows flexibility for the two Councils |
Risks and Disadvantages |
· Adds additional process · Undermines a joint approach via the Joint Shareholders Committee |
6. Conclusion
6.1 The Trust has met its requirement for submission of its half yearly report and draft Statement of Intent. The outstanding matter in the SOI process at this point is the level of loan repayment.
Roger Ball
Acting Group Manager Community Services
Attachments
Attachment 1: A1960731 - Tasman Bays Heritage Trust Half Yearly Report to 31 December 2017 and draft Statement of Intent 2018-19 ⇩
Important considerations for decision making |
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. |
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’. |
3. Risk There is a low risk that the Statement of Intent does not deliver the outcomes expected by the Councils. There is medium risk that expectations of funding for a project to house and care for the Nelson Tasman regional heritage collection may not be realised. |
4. Financial impact The provision of the museum is a budgeted activity for both Councils. The level of loan repayments made by the museum impacts the level of debt in each Council. |
5. Degree of significance and level of engagement This matter is of low significance and no further consultation is proposed. |
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. |
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. |