AGENDA

Ordinary meeting of the

 

Governance Committee

 

Thursday 25 October 2018

Commencing at the conclusion of the Council meeting

Council Chamber

Civic House

110 Trafalgar Street, Nelson

 

Pat Dougherty

Chief Executive

 

Membership: Councillor Ian Barker (Chairperson), Her Worship the Mayor Rachel Reese, Councillors Luke Acland, Mel Courtney, Bill Dahlberg (Deputy Chairperson), Gaile Noonan, Mike Rutledge, Tim Skinner, Stuart Walker, Mr John Murray and Mr John Peters

Quorum: 6

 

Nelson City Council Disclaimer

Please note that the contents of these Council and Committee Agendas have yet to be considered by Council and officer recommendations may be altered or changed by the Council in the process of making the formal Council decision.

·      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.

 

25 October 2018

 

Page No.

 

1.       Apologies

1.1      An apology has been received from Her Worship the Mayor R Reese and Councillor G Noonan

2.       Confirmation of Order of Business

3.       Interests

3.1      Updates to the Interests Register

3.2      Identify any conflicts of interest in the agenda

4.       Public Forum

5.       Confirmation of Minutes

5.1      6 September 2018                                                                       7 - 16

Document number M3742

Recommendation

That the Governance Committee

Confirms the minutes of the meeting of the Governance Committee, held on 6 September 2018, as a true and correct record.

6.       Chairperson's Report 

7.       Uniquely Nelson Memorandum of Understanding 2018/2019 17 - 31

Document number R9552

Recommendation

That the Governance Committee:

Receives the report Uniquely Nelson Memorandum of Understanding 2018/2019 (R9552) and its attachments (A2016338 and A2016325).

 

8.       Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations   32 - 37

Document number R9672

Recommendation

That the Governance Committee

Receives the report Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations
(R9672) and its attachment (A2045559).

 

Recommendation to Council

That the Council

Adopts the amended 2018 Nelson City Council Policy for setting the remuneration for directors of Nelson City Council’s council controlled trading organisations (A2045559).

 

9.       Forestry Advisory Group Minutes 11 September 2018 38 - 44

Document number R9804

Recommendation

That the Governance Committee

Receives the unconfirmed minutes from the Forestry Advisory Group meeting held on 11 September 2018 (A2080255).

        

Public Excluded Business

10.     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: 

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 -  6 September 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)(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 ·   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) ·   Section 7(2)(j)      To prevent the disclosure or use of official information for improper gain or improper advantage
2	State Advances Building - Update	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)(g)      To maintain legal professional privilege
3	Recommendation from Civic Trust Annual General Meeting 19 October 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

 

 

 

  

.

Minutes of a meeting of the Governance Committee

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson

On Thursday 6 September 2018, commencing at 9.00a.m.

Present:              Councillor I Barker (Chairperson), Her Worship the Mayor R Reese (via audio link), Councillors L Acland, M Courtney, B Dahlberg (Deputy Chairperson), G Noonan, M Rutledge, T Skinner, S Walker, Mr J Murray and Mr J Peters

In Attendance:   Councillors B McGurk and P Matheson, Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis),  Group Manager Community Services (R Ball), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Team Leader Governance (R Byrne), Governance Adviser (E Stephenson) and Youth Councillors Cassie Hagan and Nathanael Rais.

 

Apologies:           Nil

 

 

1.       Apologies

 

          There were no apologies.

2.       Confirmation of Order of Business

The Chairperson advised that Her Worship the Mayor was participating via audio link.

3.       Interests

There were no updates to the Interests Register. Mr John Murray subsequently declared an interest with Item 5 – Strategic Property Matters of the Public Excluded Agenda.

4.       Public Forum 

4.1      Public Forum - Erica Richards and James Scoltock, from Vertical Limits - exploring the option of leasing or purchasing the Reliance Engineering Building
	Ms Richards and Mr Scoltock tabled supporting information. They advised that they had recently made a presentation to the Sports and Recreation Committee to speak about their current building being demolished, that they were looking for a new location, and were interested in leasing the Reliance Building. They answered questions regarding the minimum lease term required, their purchase of land on Vanguard Street and other possible suitable locations.
	Attachments 1    A2054767 - Public Input Erica Richards and James Scoltock, Vertical Limits - tabled documents

 

5.       Confirmation of Minutes

5.1      26 July 2018

Document number M3639, agenda pages 9 - 15 refer.

Resolved GOV/2018/051 That the Governance Committee Confirms the minutes of the meeting of the Governance Committee, held on 26 July 2018, as a true and correct record. Dahlberg/Courtney                                                                     Carried

    

 

6.       Forestry Advisory Group Minutes 15 March and 12 June 2018

Document number R9651, agenda pages 16 - 26 refer.

Resolved GOV/2018/052 That the Governance Committee Receives the confirmed minutes from a Forestry Advisory Group meeting held on 15 March 2018 (A1938629); and Receives the unconfirmed minutes from a Forestry Advisory Group meeting held on 12 June 2018 (A1986426). Murray/Her Worship the Mayor                                                   Carried

 

7.       Chairperson's Report

Document number R9648, agenda pages 27 - 76 refer.

The Chairperson spoke to his report, noting that the results of the Nelson Governance Diagnostic Survey and the Committee’s work programme were attached. Discussion took place regarding next steps in the survey process, individual discussions with councillors, opportunities for improvement, changes to the Council structure, new staff as a result of the Long Term Plan and training for councillors. Councillors who had not completed the questionnaire were encouraged to do so with urgency to provide a more balanced picture.

Resolved GOV/2018/053 That the Governance Committee Receives the report Chairperson's Report (R9648) and its attachments (A2037895 and A2040163). Barker/Dahlberg                                                                         Carried

 

8.       Nelson Enterprise Loan Trust - rollover of loan due July 2018

Document number R8221, agenda pages 77 - 89 refer.

Group Manager Corporate Services, Nikki Harrison, noted that updated financial statements were attached to the report and answered questions regarding the Trust’s:

·         ability to achieve a sustainable business model

·         change in status from a charitable trust

·         reduction in equity

·         reasonably strong balance sheet

·         high repayment rate.

Resolved GOV/2018/054 That the Committee Receives the report Nelson Enterprise Loan Trust - rollover of loan due July 2018 (R8221) and its attachments (A2024109 and A2038277). Noonan/Courtney                                                                       Carried

 

Recommendation to Council GOV/2018/055 That the Council Approves rolling over the interest free loan to Nelson Enterprise Loan Trust for a further one year through to September 2019 while a sustainable business model is developed by the Board. Noonan/Courtney                                                                       Carried

 

9.       Nelson Centre of Musical Arts - Funding

Document number R9535, agenda pages 90 - 96 refer.

Group Manager Community Services, Roger Ball, acknowledged Roger Taylor (Chair) and James Donaldson (Director) of the Nelson Centre of Musical Arts (NCMA) and answered questions regarding:

·         unbudgeted expenditure and ability to accommodate within existing budgets

·         the amount of rates surplus

·         the additional amount was to support additional community outcomes

·         the Long Term Plan (LTP) process

·         a mechanism to adjust the amount in the LTP to $150,000 for 10 years

·         monitoring and reporting back on the additional funding.

Resolved GOV/2018/056 That the Governance Committee Receives the report Nelson Centre of Musical Arts - Funding (R9535) and its attachment (A2037803);   Noonan/Dahlberg                                                                       Carried

 

Recommendation to Council GOV/2018/057 That the Council Approves the allocation of $25,000 unbudgeted expenditure to increase the operational grant of the Nelson Centre of Musical Arts from $125,000 to $150,000 for financial year 2018/19. Noonan/Dahlberg                                                                       Carried

 

The meeting was adjourned 10.45a.m. and reconvened at 11.01a.m.

 

Item 11 - Septura Residency for Brass Instrument Performers was considered prior to Item 10 – Consultation on International Visitor Conservation and Tourism Levy.

 

10.     Event funding - Septura Residency for Brass Instrument Performers (Agenda Item 11)

Document number R9677, late items agenda pages 1 - 5 refer.

Group Manager Strategy and Communications, Nicky McDonald and  Executive Officer, Michelle Joubert, answered questions and discussion took place regarding:

·         Nelson as the location for a national event

·         the obligation to provide student accommodation and support

·         the event did meet the criteria for the Events Fund, but the Fund was committed

·         this would be unbudgeted funding

·         the risk of reputational damage if the event did not take place

·         concerts associated with the event

·         the need to address the Events Fund with transitional reserve funding.

    The word ‘unbudgeted’ was added to the motion for clarification.

Resolved GOV/2018/058 That the Governance Committee Receives the report Event funding - Septura Residency for Brass Instrument Performers (R9677).  Skinner/Courtney                                           Carried

 

 

Recommendation to Council GOV/2018/059 That the Council Approves unbudgeted funding of $15,000 for the Septura Residency for Brass Instrument Performers event to support the Nelson Centre of Musical Arts as it seeks to maximise its newly renovated venue. The motion was put and a division was called: For Councillor Barker (Chairperson) Her Worship the Mayor Reese Cr Acland Cr Courtney Cr Dahlberg Cr Walker Mr Murray Mr Peters Against Cr Noonan Cr Rutledge Cr Skinner Abstained/ Interest     The motion was carried 8 - 3. Acland/Courtney                                                                         Carried

 

11.     Consultation on International Visitor Conservation and Tourism Levy (Agenda Item 10)

Document number R9559, agenda pages 97 - 124 refer.

Group Manager Corporate Services, Nikki Harrison, and Chief Executive Pat Dougherty, answered questions and discussion took place regarding:

·         Council did not make a submission as the expectation was that the Nelson Regional Development Agency (NRDA) would submit

·         the lack of resources required to draft a submission

·         Council’s approach to its submissions to government entities

·         Council still had a role to submit, it needed to have a voice on this important issue

·         the value of tourism in a region under pressure, the impact of increasing visitors and how to fund facilities under pressure

·         the need for Top of the South discussions

·         whether Council could make a late (proforma) submission reinforcing the NRDA submission and adding any relevant points.

A clause was added to the motion that the Mayor, Chair and Deputy Chair of Governance review the submissions and work on a late submission, which would then be reported to the next Governance Committee meeting.

Resolved GOV/2018/060 That the Governance Committee Receives the report Consultation on International Visitor Conservation and Tourism Levy (R9559) and its attachments (A2016289, A2025105 and A2037217); and Notes the content of the submissions from Nelson Regional Development Agency, Tasman District Council, and Local Government New Zealand; and Approves Her Worship the Mayor, the Chair and Deputy Chair of the Governance Committee to review the Nelson Regional Development Agency, Tasman District Council, and Local Government New Zealand submissions and consult with Marlborough District Council with a view to making a late submission. Noonan/Rutledge                                                                       Carried

 

 

12.     Exclusion of the Public

Iain Sheves of Wakatu Inc and Steve Baigent, Patrick Shone, Viesturs Altments and Liz Crawshaw of Cephas, were in attendance for Item 5 of the Public Excluded agenda to answer questions and, accordingly, the following resolution was required to be passed:

Resolved GOV/2018/061 That the Governance Committee Confirms, in accordance with section 48(5) of the Local Government Official Information and Meetings Act 1987, Iain Sheves of Wakatu Inc, Steve Baigent, Patrick Shone, Viesturs Altments and Liz Crawshaw of Cephas remain after the public has been excluded, for Item 5 of the Public Excluded agenda (Strategic Property Matters), 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 Iain Sheves, Steve Baigent, Patrick Shone, Viesturs Altments and Liz Crawshaw possess relates to strategic property matters. Dahlberg/Noonan                                                                       Carried

 

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:

 

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 -  26 July 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)(i)      To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	The Bishop Suter Trust - reappointment of Trustees	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
3	Nelmac Director Remuneration - 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)(i)      To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
4	Nelmac Matters	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 ·   Section 7(2)(h)      To enable the local authority to carry out, without prejudice or disadvantage, commercial activities ·   Section 7(2)(j)      To prevent the disclosure or use of official information for improper gain or improper advantage
5	Strategic Property Matters	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)

 

The meeting went into public excluded session at 11.39a.m. and resumed in public session at 4.25p.m. 

 

There being no further business the meeting ended at 4.25p.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                       Chairperson                                     Date

      

 

Item 7: Uniquely Nelson Memorandum of Understanding 2018/2019

 

Governance Committee 25 October 2018

 

REPORT R9552

Uniquely Nelson Memorandum of Understanding 2018/2019

 

1.       Purpose of Report

1.1      To note the content of the Memorandum of Understanding (MOU) with Uniquely Nelson for 2018/19.

 

2.       Recommendation

That the Governance Committee: Receives the report Uniquely Nelson Memorandum of Understanding 2018/2019 (R9552) and its attachments (A2016338 and A2016325).

 

3.       Background

3.1      Uniquely Nelson is not a Council Controlled Organisation. It is an independent grouping of Central Business District (CBD) businesses that exists to assist them to act collectively for the benefit of all.  The delegation for signing the MOU rests with the Council’s Chief Executive.  This report is for information purposes. 

3.2      Funding for Uniquely Nelson comes from the commercial differential paid by CBD businesses.  A budget of $145,747 plus GST was confirmed in the Annual Plan for Uniquely Nelson for the 2018/19 year.

3.3      Council in part, manages its relationship with Uniquely Nelson through a Memorandum of Understanding (Attachment 1), which is updated annually.  In addition to the MOU, Uniquely Nelson provides Council with a business plan detailing its work programme for the year. That has been attached for information (Attachment 2).  Over the next year, officers will be working with Uniquely Nelson to develop a more detailed contract for service delivery.

4.       Discussion

4.1      The MOU with Uniquely Nelson is altered on an annual basis to provide an opportunity to refresh the priorities each year.  The MOU in Attachment 1 contains some additions to the previous MOU to reflect Council’s objectives around the City Centre to deliver on its Smart Little City vision and capturing the content of Uniquely Nelson’s Business Plan for 2018/19.  These changes are highlighted.

4.2      There have been previous discussions around greater alignment between the work of the Nelson Regional Development Agency (NRDA), which promotes and markets the Nelson and Tasman Regions, and the work of Uniquely Nelson, which promotes and markets the Nelson CBD.  At present the alignment is happening through staff within each organisation.  Going forward, Council officers are investigating options as to how to achieve greater alignment and a future report on this matter will be provided to the Committee.

5.       Options

5.1      There are no specific options for Council to consider other than to note the content of the MOU.

 

Author:          Clare Barton, Group Manager Environmental Management

Attachments

Attachment 1:  A2016338 - Uniquely Nelson Memorandum of Understanding 2018-2019 ⇩

Attachment 2:  A2016325 - Uniquely Nelson Business Plan 2018/19 ⇩

 

 

Item 7: Uniquely Nelson Memorandum of Understanding 2018/2019: Attachment 1

 

Item 7: Uniquely Nelson Memorandum of Understanding 2018/2019: Attachment 2

 

 

 

 

 

 

 

 

 

 

Item 8: Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations

 

Governance Committee 25 October 2018

 

REPORT R9672

Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations

 

1.       Purpose of Report

1.1      To consider the amended 2018 policy for setting remuneration for directors of Nelson City Council’s council controlled trading organisations (Policy).

 

 

2.       Recommendation

That the Governance Committee Receives the report Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations (R9672) and its attachment (A2045559).

Recommendation to Council

That the Council Adopts the amended 2018 Nelson City Council Policy for setting the remuneration for directors of Nelson City Council’s council controlled trading organisations (A2045559).

 

 

 

3.       Background and discussion

3.1      Under section 57(1) 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 the requirement set out in section 57(1)(c).  Council has a separate policy regarding the selection and appointment of directors.

3.2      The Policy outlines the process for setting the remuneration pool for directors of governing boards of council controlled trading organisations (CCTOs) that are controlled by Nelson City Council for example, Nelmac.

3.3      The Policy was last reviewed in 2014, and will be reviewed again in 2021.

4.       Discussion

4.1      The review of the Policy has resulted in only one substantive change detailed in paragraph 4.4 below.  A copy of the amended Policy (with changes tracked) is attached as Attachment 1 (A2045559).

4.2      The level of directors’ fees at Nelmac has been set in accordance with the Policy since 2014.  The Policy balances the private sector and public good elements of being a director of a CCTO.  There have been no issues in relation to recruiting and retaining directors on the board of Nelmac.

4.3      The Policy provides that the remuneration for directors will be set with reference to the Strategic Pay New Zealand Directors Fees Report (or a similar market guide). Officers will analyse the data of the two preceding years and calculate the average of the two years. 

4.4      Previously, the remuneration of directors was set around the lower quartile of the previous two years’ survey results.  The Policy has been amended so that the remuneration pool of Nelson City Council’s CCTOs will now be set between the lower and median quartile of the previous two years’ survey results.  The amendment aligns this policy with the Nelson City and Tasman District Councils’ joint procedure for setting remuneration of directors of jointly owned CCTO’s.

4.5      In 2015, when the remuneration pool was reviewed for the first time in accordance with the Policy, it was 22% below the lower quartile data for similar organisations. During the intervening years the gap has reduced so that the pool at $144,695 is now close to the lower quartile for directors’ fees (based on the 2017 survey data).  The amendment to the Policy may result in an increased remuneration pool for Nelson City Council’s CCTOs in future years.

          Options

4.6      The Committee can either recommend the amended Policy to Council or request that further changes be made to the Policy.

 

Option 1: Recommend that Council adopt the amended Policy
Advantages	·   Maintain an objective and transparent policy for the setting of remuneration for directors of Council’s CCTOs.
Risks and Disadvantages	·   None
Option 2: Request further amendments to the Policy
Advantages	·    Committee has the opportunity to influence the Policy
Risks and Disadvantages	·    Significant changes may have unintended consequences when applied in practice ·    May result in a delay in adopting the amended Policy

 

 

Author:          Michelle Joubert, Executive Officer

Attachments

Attachment 1:  A2045559 - Amended Policy for setting remuneration for directors of Council's CCTOs ⇩

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government Section 57(1)(c) of the Local Government Act 2002 requires Council to adopt a policy that sets out an objective and transparent process for the remuneration of directors of a council organisation. It is appropriate that this Policy be reviewed from time to time to ensure it remains up to date.

2.   Consistency with Community Outcomes and Council Policy The decision aligns with the following outcome: ·    Our Council provides leadership and foster partnerships, a regional perspective, and community engagement.

3.   Risk The proposed amendments to the Policy are minor in nature; a decision to approve the reviewed and amended Policy is considered low risk.

4.   Financial impact No direct financial impact on Council.

5.   Degree of significance and level of engagement This matter is of low significance to most residents and ratepayers of Nelson and therefore no consultation is required.

6.   Inclusion of Māori in the decision making process No engagement with Māori has been undertaken in preparing this report.

7.   Delegations The Governance Committee has the delegation to consider the policy on the remuneration of directors of CCTOs. Areas of responsibility: ·    Nelson City Council’s CCOs and CCTOs. Powers to Recommend: ·    Development or review of policies and strategies relating to areas of responsibility.

 

Item 8: Policy review: Remuneration for directors of Nelson City Council's Council Controlled Trading Organisations: Attachment 1

 

Item 9: Forestry Advisory Group Minutes 11 September 2018

 

Governance Committee 25 October 2018

 

REPORT R9804

Forestry Advisory Group Minutes 11 September 2018

 

 

 

 

1.       Recommendation

1. 

That the Governance Committee Receives the unconfirmed minutes from the Forestry Advisory Group meeting held on 11 September 2018 (A2080255).

 

 

 

 

Author:          Rebecca Terry, Governance Advisor

Attachments

Attachment 1:  A2080255 - Forestry Advisory Group Minutes 11Sep2018 ⇩

   

Item 9: Forestry Advisory Group Minutes 11 September 2018: Attachment 1