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AGENDA

Ordinary meeting of the

 

Governance Committee

 

Thursday 7 March 2019

Commencing at 9.00a.m.

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.


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.

 


N-logotype-black-wideGovernance Committee

7 March 2019

 

 

Page No.

 

1.       Apologies

Nil

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

4.1      James Lazor, General Manager, Rainbow Sports Club Incorporated - update for Elected Members about the Club

4.2      Brian Nelson, representing Family Trust - Location of the Montgomery Square Market

4.3      Jacquie Walters - Renewal of the Nelson Saturday Market

4.4      Pic Picot - Nelson Saturday Market

4.5      Nita Knight, representing The Nelson Market Limited - the Nelson Market

5.       Confirmation of Minutes

5.1      29 November 2018                                                                      8 - 21

Document number M3945

Recommendation

That the Governance Committee

Confirms the minutes of the meeting of the Governance Committee, held on 29 November 2018, as a true and correct record.

            

6.       Chairperson's Report

7.       International Relationships Policy

A report entitled ‘International Relationships Policy’ was left to lie at the Governance Committee meeting on 29 November 2018.  An updated report on this matter will come to a future Governance Committee meeting.

8.       Nelson Regional Development Agency - Statement of Expectation 2019/2020                                             22 - 42

Document number R9977

Recommendation

That the Governance Committee

Receives the report Nelson Regional Development Agency - Statement of Expectation 2019/2020 (R9977) and its attachment (A2066390).

 

Recommendation to Council

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 4.5 to 4.12 of report R9752; and

Confirms the following specific matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.13.1 to 4.13.9 of report R9752 and summarised below:

(a)   Council priorities

(b)  Stakeholders

(c)   Partnerships with iwi and Māori

(d)  Promoting the regions

(e)   Funding

(f)   Deliverables and budget

(g)  Advice

(h)  Agility

(i)    Te Tauihu Strategy 2077 Regional Growth Strategy

Confirms the Nelson Regional Development Agency’s review of Board performance will be completed by 1 November 2019.

 

9.       Governance Committee Quarterly Report to 31 December 2018                                                                                43 - 54

Document number R9849

Recommendation

That the Governance Committee

Receives the report Governance Committee Quarterly Report to 31 December 2018 (R9849) and its attachments (A2124377, A2131712).

       

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 -  29 November 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)(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)

2

Montgomery Square Market - Licence Expiry

 

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)

3

Nelson Regional Development Agency - Appointment of Directors and Chair

 

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

4

Nelson Centre of Musical Arts - 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

5

The Bishop Suter Trust - Trustee Remuneration 2018/19

 

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)

6

Haven Precinct Project: Next Steps

 

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)

7

Update on 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)

 

 Note:

·               Lunch will be provided. (delete as appropriate)

·               Youth Councillors Nico Frizzell and Adam Burton will be in attendance at this meeting. (delete as appropriate)

 

 

  


Governance Committee Minutes - 29 November 2018

 

Minutes of a meeting of the Governance Committee

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

On Thursday 29 November 2018, commencing at 9.00a.m.

 

Present:              Councillor I Barker (Chairperson), Her Worship the Mayor 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 M Lawrey, Group Manager Environmental Management (C Barton), Group Manager Community Services (R Ball), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Governance Advisers (J Brandt and E Stephenson) and Youth Councillor N Rais

Apologies:          

 

 

1.       Apologies

 

          There were no apologies.

 

2.       Confirmation of Order of Business

The Chair advised that the order of business would be changed to accommodate external attendees.

3.       Interests

Mr John Murray declared an interest in Item 4 of the public excluded agenda – Strategic Property Central City.


 

 

4.       Public Forum

4.1      Sarah Holmes, Manager, and Gillian Williams, Trustee - Nelson Tasman Business Trust (NTBT) Annual Report

 

Sarah Holmes, introduced Trustee, Gillian Williams. Ms Holmes thanked Council for its ongoing support and tabled a copy of the NTBT Annual Review.

Attendance: Councillor Walker left the meeting from 9.09a.m. until 9.11a.m.

Ms Holmes spoke to a PowerPoint presentation and answered questions regarding the percentage of businesses using the Trust from the CBD and working with Uniquely Nelson.

 

Attachments

1    A2104523 - NTBT Annual Review 2017-18

2    A2102485 - NTBT PowerPoint Presentation

 

 

4.2      Mark Rawson, Chief Executive, Nelson Regional Development Agency and Les Edwards, Commercial & Marketing Manager, Tasman Rugby Union - the impact of the All Blacks game for Nelson

 

Les Edwards, and Mark Rawson provided a PowerPoint presentation and spoke regarding the success of the All Blacks game, noting that the vast majority of people they spoke to were supportive of the match. Topics discussed included the match build up, the Fan Trail, TV viewing figures, free buses, the benefits of having the stadium close to the CBD, the quality of the turf, central city activation, the Traffic Management Plan, a long-term stadium strategy and learnings going forward.

 

Attachments

1    A2102476 - NRDA PowerPoint presentation

           Item 4 of the Public Excluded agenda was considered next.

          

4.3     Exclusion of the Public

Steve Baigent, Managing Director, Patrick Shone, Commercial Manager Cephas and Elizabeth Crawshaw, Venture Communications, were in attendance for Item 4 of the Public Excluded agenda to answer questions, accordingly, the following resolution was required to be passed:

 

Resolved GOV/2018/088

That the Governance Committee

Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Steve Baigent, Managing Director,  Patrick Shone, Commercial Manager Cephas and Elizabeth Crawshaw, Venture Communications, remain after the public has been excluded, for Item 4 of the Public Excluded agenda (Strategic Property Central City), as they have knowledge relating to these matters that will assist the meeting.

Noonan/Rutledge                                                                   Carried

 

Resolved GOV/2018/089

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/Rutledge                                                                   Carried

 

4

Strategic Property Central City

 

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)

·         Section 7 (2) (g) To maintain legal professional privilege

·         Section 7(2)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

 

 

The meeting went into public excluded session at 9.32a.m. and resumed in public session at 9.49a.m., at which time Mr J Murray returned to the meeting.  

5.       Confirmation of Minutes

5.1      11 October 2018

Document number M3827, agenda pages 11 - 15 refer.

The 11 October 2018 minutes (A2088748) were tabled for confirmation, as they had been omitted from the agenda.

Resolved GOV/2018/090

That the Governance Committee

Confirms the minutes of the meeting of the Governance Committee, held on 11 October 2018, as a true and correct record.

Courtney/Dahlberg                                                                   Carried

Attachments

1    A2088748 - Governance Committee 11 October 2018 minutes

5.2      25 October 2018

Document number M3857

Resolved GOV/2018/091

That the Governance Committee

Confirms the minutes of the meeting of the Governance Committee, held on 25 October 2018, as a true and correct record.

Courtney/Dahlberg                                                                   Carried

  


 

6.       Chairperson's Report 

 

There was no Chairperson’s Report.

7.       Nelson Regional Development Agency (NRDA) - Statement of Expectation (SOE) 2019/2020

Document number R9752, agenda pages 16 - 78 refer.

Group Manager Environmental Management, Clare Barton, highlighted the specific proposed inclusions for the SOE letter, covering areas of focus. Ms Barton answered questions regarding the application to the Provincial Growth Fund for the whole of the Top of the South and development of the Regional Economic Growth Strategy.

Further questions and discussion took place regarding the initiative for the application, how economic development would be driven, key initiatives, NRDA performance relating to driving Council’s vision for economic development and Tasman District Council’s arrangements with the NRDA.

 

Mr John Murray advised that he had some questions that needed to be discussed in public excluded session due to commercial sensitivity.

 

 

Exclusion of the Public

 

Resolved GOV/2018/092

That the Governance Committee

Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Mark Rawson, Chief Executive, Nelson Regional Development Agency,  remain after the public has been excluded, for discussion relating to Item 7 of the open section of the agenda - Nelson Regional Development Agency (NRDA) - Statement of Expectation (SOE) 2019/2020, as he has knowledge relating to this matter that will assist the meeting.

Acland/Walker                                                                        Carried

 

Resolved GOV/2018/093

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:

Acland/Walker                                                                        Carried

 

7

Nelson Regional Development Agency (NRDA) - Statement of Expectation (SOE) 2019/2020

 

Section 48(1)(a)

The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7

The withholding of the information is necessary:

·   Section 7(2)(i)

     To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

 

The meeting went into public excluded session at 10.07a.m. and resumed in public session at 10.39a.m.

It was agreed that it would be prudent for the committee to be brought up to date in the development of the SOE/SOI process and that the matter be left to lie.

Resolved GOV/2018/094

That the Governance Committee

Leaves the item Nelson Regional Development Agency - Statement of Expectation 2019/2020 to lie on the table and not be further discussed at this meeting.

Noonan/Dahlberg                                                                   Carried

 

 

The meeting was adjourned at 10.42a.m. and reconvened at 10.50a.m.

 

8.       Bishop Suter Trust - six-monthly presentation

 

Julie Catchpole, Director of the Bishop Suter Trust, accompanied by John Hambleton, Trustee, PowerPoint presentation.

 

Attendance: Due to an urgent matter, Councillor Skinner left the meeting at 11.05a.m.

 

Ms Catchpole and Mr Hambleton answered questions regarding financial sustainability and Tasman District Council funding.

It was noted that the Suter Gallery’s satisfaction result in the Residents’ Survey was 85%, which was higher than its target of 80%.

 

Attachments

1    A2101856 - Bishop Suter Trust PowerPoint presentation

 

9.       Bishop Suter Trust - Statement of Expectation 2019/20

Document number R9824, agenda pages 79 - 118 refer.

Executive Officer, Michelle Joubert, outlined the specific expectations to be included in the Statement of Expectation (SOE) letter and it was agreed that information regarding the impact of the Suter Gallery on the Nelson economy be included in the next round of information gathering. Discussion took place regarding Tasman District Council (TDC) funding.

Her Worship the Mayor requested two additional matters be included in the SOE, regarding climate change responsiveness and TDC funding.

Resolved GOV/2018/095

That the Governance Committee

Receives the report Bishop Suter Trust - Statement of Expectation 2019/20 (R9824) and its attachment (A1923167).

Dahlberg/Noonan                                                                   Carried

Recommendation to Council GOV/2018/096

That the Council

Confirms the general matters to be included in the Bishop Suter Trust Statement of Expectation 2019/20 letter as those identified in paragraphs 4.1 to 4.14 of report R9824; and

Confirms the following specific matters to be included in the Bishop Suter Trust Statement of Expectation letter:

·   Governance succession plan; and

·   Resilience; and

·    Good employer obligations; and

·      Climate Change responsiveness, including risk resilience, mitigation and adaption; and

·      Development of the relationship with Tasman District Council with a view to increasing funding from that source.

Dahlberg/Noonan                                                                   Carried

 

10.     Sister Cities Co-ordinator Report (Agenda Item 13)

Document number R9881, agenda pages 236 - 239 refer.

Sister Cities Co-ordinator, Gaile Collingwood, spoke to her report. Ms Collingwood said that the Nelson Miyazu Association numbers had dropped and asked whether anyone was interested in becoming part of the organisation to deliver the sister city relationship. She noted that she had presented at the Brook Reserve hearing and that a new  Mayor of Miyazu had been elected.

Resolved GOV/2018/097

That the Governance Committee

Receives the report Sister Cities Co-ordinator Report  (R9881).

Dahlberg/Peters                                                                     Carried

       

 

11.     International Relationships Policy (Agenda Item 10)

Document number R9827, agenda pages 119 - 136 refer.

Attendance: Councillor Noonan left the meeting from 11.47a.m. until 11.52a.m.

Manager Governance and Support Services, Mary Birch, answered questions and discussion took place regarding context with the sister city relationship, the degree of international engagement through the Mayor’s office, analysis of economic benefit and the lack of iwi engagement.

Councillor Dahlberg, seconded by Councillor Walker, moved the following motion:

That the Governance Committee

Receives the report Sister Cities Policy (R9827) and its attachment (A2076807); and

Requests that an International Relationships Policy be developed.

Dahlberg/Walker

It was agreed that more work on the policy was required. A motion was moved by Mr Murray, seconded by Councillor Noonan that the matter be left to lie.

Attendance: Councillor Skinner returned to the meeting at 12.10p.m.

Resolved GOV/2018/098

That the Governance Committee

Leaves the item International Relationships Policy to lie on the table and not be further discussed at this meeting.

Murray/Noonan                                                                          Carried

 

12.     Results of the 2018 Residents' Survey (Agenda Item 11)

Document number R9839, agenda pages 137 - 223 refer.

A  PowerPoint presentation was provided. Policy Adviser, Gabrielle Thorpe, Group Manager Strategy and Communication, Nicky McDonald and Manager Transport and Solid Waste, Marg Parfitt answered questions and discussion took place regarding the online survey, survey methodology and the survey results topic by topic.

Attendance: Councillor Dahlberg left the meeting from 12.43p.m. until 12.45p.m.

Attendance: Councillor Walker left the meeting from 12.45p.m. until 12.50p.m.

Further discussion took place on driving broader community engagement.

Attendance: Mr Murray left the meeting from 12.56p.m. until 12.58.pm.

Resolved GOV/2018/099

That the Governance Committee

Receives the report Results of the 2018 Residents' Survey (R9839) and its attachment (A2042796); and

Notes the actions that are planned to improve services for those activities that have lower levels of satisfaction; and 

Notes the 2018 Residents’ Survey results (A2042796) will be communicated to the public through Our Nelson and Council’s website.

Noonan/Courtney                                                                       Carried

Attachments

1    A2067004 Results of the 2018 Residents' Survey PowerPoint presentation

 

The meeting was adjourned at 1.03p.m. and reconvened at 1.33p.m.

 

13.     Exclusion of the Public

Lee Babe, Chief Executive and Rob Gunn, Chair, Nelmac, were in attendance for Item 2 of the Public Excluded Agenda to answer questions and, accordingly, the following resolution was required to be passed:

Resolved GOV/2018/1003.19pm

That the Governance Committee

Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Lee Babe, Chief Executive and Rob Gunn, Chair Nelmac remain after the public has been excluded, for Item 2 of the Public Excluded agenda (Nelmac Ltd six monthly strategic presentation from the Board), as they have knowledge relating to these matters that will assist the meeting.

 

Dahlberg/Courtney                                                                  Carried

Resolved GOV/2018/101

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:

Dahlberg/Courtney                                                                  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)

2

Nelmac Limited - six monthly strategic presentation from the Board

 

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

Nelmac Limited - matters for Statement of Expectations 2019/20

 

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)

6

Maitai Mountain Bike Hub Location

 

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)(g)

     To maintain legal professional privilege

·   Section 7(2)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

 

The meeting went into public excluded session at 1.34p.m. and resumed in public session at 2.58p.m.

 

Extension of Meeting Time

Resolved GOV/2018/102

That the Governance Committee

Extends the meeting time beyond six hours, pursuant to Standing Order 4.2.

Rutledge/Murray                                                                        Carried

 

The meeting was adjourned at 2.59p.m. and reconvened at 3.06p.m.

 

14.     Quarterly Report to Governance Committee 1 July - 30 September 2018

Document number R9737, agenda pages 224 - 235 refer.

 

Group Manager, Nikki Harrison, and Group Manager Nicky McDonald answered questions regarding LGOIMA requests, the Civic House update, commencement of the TDC/NRDA contract and the forestry budget.

 

A comment was made regarding consistency in terminology, and it was noted that this would be addressed in the next quarter.

Resolved GOV/2018/103

That the Governance Committee

Receives the report Quarterly Report to Governance Committee 1 July - 30 September 2018 (R9737) and its attachments (A2082587 and A2082629).

Noonan/Peters                                                                            Carried

 

15.     Exclusion of the Public

Resolved GOV/2018/104

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:   

Walker/Noonan                                                                        Carried

1

Governance Committee Meeting – Public Excluded Minutes 11 and 25 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

·         Section 7(2)(g)

     To maintain legal professional privilege

 

5

Update on 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)(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

4

Strategic Property Central City

 

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)

·         Section 7 (2) (g) To maintain legal professional privilege

·         Section 7(2)(h)

     To enable the local authority to carry out, without prejudice or disadvantage, commercial activities

 

 

The meeting went into public excluded session at 3.20p.m. and resumed in public session at 4.02p.m.

 

 

There being no further business the meeting ended at 4.02p.m.

 

Confirmed as a correct record of proceedings:

 

 

 

                                                       Chairperson                                     Date

       

 


 


 

Governance Committee

7 March 2019

 

 

REPORT R9977

Nelson Regional Development Agency - Statement of Expectation 2019/2020

     

 

1.       Purpose of Report

1.1      To confirm Council's expectations for the Nelson Regional Development Agency (NRDA) for the 2019/20 Statement of Intent (SOI).

1.2      The matter was before the Committee on 29 November 2018 and it was decided at that meeting to let it lie on the table.

 

 

2.       Recommendation

That the Governance Committee

Receives the report Nelson Regional Development Agency - Statement of Expectation 2019/2020 (R9977) and its attachment (A2066390).

Recommendation to Council

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 4.5 to 4.12 of report R9752; and

Confirms the following specific matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.13.1 to 4.13.9 of report R9752 and summarised below:

(a)    Council priorities

(b)    Stakeholders

(c)     Partnerships with iwi and Māori

(d)    Promoting the regions

(e)    Funding

(f)     Deliverables and budget

(g)    Advice

(h)    Agility

(i)     Te Tauihu Strategy 2077 Regional Growth Strategy

Confirms the Nelson Regional Development Agency’s review of Board performance will be completed by 1 November 2019.

 

 

3.       Background

3.1      The preparation of a Statement of Expectation is not required under the Local Government Act 2002 (LGA).  However, it is best practice for the Council to signal to its Council Controlled Organisations its expectations for the 2019/20 financial year.  These expectations are to be considered by the entity to guide its strategic direction and to assist in the development of the Statement of Intent for that financial year.

3.2      To assist the Committee, the NRDA’s Statement of Intent 2018-19 is attached (Attachment 1).

4.       Discussion

The NRDA

4.1      The NRDA was established in July 2016 and its purpose is to enhance the sustainable economic vitality of the Nelson and Tasman regions.  The Nelson Tasman identity, developed by the NRDA, has five pillars covering:

·          Clever business

·          Stunning natural landscapes

·          Surprisingly diverse

·          Highly connected

·          Arts and artisans

Tasman District Council

4.2      In the 2018/19 year, Tasman District Council has considered contracting directly with the NRDA for services, rather than through an agreement of expectation and funding with Nelson City Council.  The contribution in Tasman District Council’s Long Term Plan reduced to $300,000, due to concerns over the NRDA’s deliverables for the Tasman region.

4.3      Tasman District Council’s preference is to continue to contract for services and funding through Nelson City Council. 

4.4      This paper has been reviewed by Tasman District Council officers to ensure the requirements for both Councils are addressed.

General expectations to be included in a Statement of Intent

4.5      SOIs must:

(a)     Include a complete set of summary prospective financial statements for at least three years.

(b)     Disclose measures like Earnings before Interest and Tax (EBIT) and Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA).

(c)     Comply with legislation including Schedule 8 of the Local Government Act 2002.

(d)     Report on health and safety matters to meet the Health and Safety at Work Act 2015

(e)     Disclose dividends along with the dividend payout policies, where applicable

(f)      Show how the NRDA intends to increase non-Council revenue streams

(g)     Include capital expenditure and asset management intentions.

4.6      The NRDA should use the same information for managing the business and reporting to Council. 

4.7      The SOI should be concise, relevant and accessible, and focused on meeting the needs of Nelson City Council, Tasman District Council (as funder), and the public it represents.  The SOI must detail the performance story of the NRDA, providing a clear understanding of the NRDA’s purpose, the services it delivers and what success looks like.  The main aspects of the performance story are:

·   Strategic context

·   Specifying and presentation of the outcomes framework

·   Performance measures and targets, outcomes and objectives

·   Linking strategy outputs and performance together.

4.8      The SOI should also include how the Board is considering and managing risks. 

4.9      The SOI should provide detail on how environmental impacts and outcomes are taken into account in the operation of the CCO.

4.10    In order to aid Council when making decisions on director remuneration and appointments, the Board should undertake regular evaluation of its own performance.

4.11    The Chair of the Board should reference this evaluation when making recommendations on the re-appointment or recruitment of Board members.

4.12    Council expects these reviews to be carried out at least once every 12 months and the next one by 1 November 2019. 

Specific expectations to be included in a Statement of Intent

4.13    The following areas are considered appropriate for inclusion in the SOI.

4.13.1 Council priorities:  How will the NRDA support the Councils’ priorities for example, city centre development, sustainability and Smart Little City Vision?

·    The NRDA has a key role in the development and delivery of work programmes to support the Councils.  It is important that all parties are clear on their roles in delivery of the work programme, that any actions assigned to the NRDA are actioned, and that collaborative opportunities are identified and developed. 

4.13.2 Stakeholders: How does the NRDA demonstrate that it is accepted and recognised by business and other stakeholders, including Māori, iwi and diverse sectors and groups?  How will the NRDA measure and report on shared decision making with partners and the steps it is taking to build trust, partnerships, social acceptance, and legitimacy?

4.13.3 Partnerships with iwi and Māori: How will the NRDA support Māori and iwi economic aspirations which benefit the whole community?

·    As outlined in the Long Term Plan 2018-28, Council believes that working in partnership with iwi and Māori will create benefits for the whole community.

4.13.4 Promote: How does the NRDA demonstrate its continued commitment to promoting the regions and providing up-to-date relevant information and data about the regions? 

4.13.5 Funding: How does the NRDA deliver value for money?

·    What performance measures is the NRDA putting in place to demonstrate NRDA deliverables are being achieved, including outlining the costs and value proposition?

4.13.6 Deliverables and budget: How will the NRDA achieve all its deliverables within budget, as detailed in the Business Plan?

·    Recent overspends in the events fund highlight the need to carefully consider all the deliverables for the NRDA over the next 12 months, and how these will be delivered within budget.

4.13.7 Advice: How does the NRDA work with the Councils to ascertain their requirements and provide timely advice?  How does the NRDA provide timely information and relevant advice to the Councils on regional economic trends, including infometrics data for the Councils?

4.13.8 Agility: How does the NRDA support significant regional events that have an economic impact, and remain flexible and responsive to opportunities in line with Council outcomes?  Focus includes measures, monitoring and reporting.

4.13.9 Te Tauihu Strategy 2077 Regional Growth Strategy (Strategy): What is the NRDA’s role and deliverables in relation to the Strategy?

·    With Wakatu Incorporation leading the project management of the Strategy, NRDA’s role should be clarified. As the Strategy covers Nelson, Tasman and Marlborough, the NRDA is expected to demonstrate active support of initiatives that cover the wider region.

5.       Options

5.1      There are two options as outlined below. Option one is the preferred option.

 

Option 1: Accept the matters to be included in the Statement of Expectation

Advantages

·    Provides clear and early direction to the Board to assist with the preparation of the 2019/20 Statement of Intent.

Risks and Disadvantages

·    None

Option 2: Amend the matters to be included in the Statement of Expectation

Advantages

·    Provides clear and early direction to the Board to assist with the preparation of the 2019/20 Statement of Intent (SOI).

Risks and Disadvantages

·    Amendments may result in limited coverage of the matters that should be addressed in the NRDA’s SOI.

 

 

Author:          Clare Barton, Group Manager Environmental Management

Attachments

Attachment 1:  A2066390 - NRDA Statement of Intent 2018/19

 

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

NRDA provides local public services relating to economic development and tourism in a cost effective way.

2.   Consistency with Community Outcomes and Council Policy

Although not required by the Local Government Act, preparation of Statements of Expectation prior to the Statement of Intent (SOI) process is best practice.

3.   Risk

Providing a Statement of Expectation mitigates the risk that the CCO develops a Statement of Intent that is not aligned with Council’s expectations or that does not cover these outcomes

4.   Financial impact

None

5.   Degree of significance and level of engagement

This matter is of low significance because this decision is about setting expectations early in the SOI process and there are other decision points along the way.  Engagement will occur with the CCO but is not required with the wider community.

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 following delegations to consider the Statement of Expectation

Areas of Responsibility:

·    Nelson City Council Controlled Organisations

·    Business, economic development and tourism in Nelson

Powers to Recommend:

·      Documents from Nelson City Council Controlled Organisations including statements of intent, half yearly reports and appointments of directors

 


Item 8: Nelson Regional Development Agency - Statement of Expectation 2019/2020: Attachment 1

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Item 9: Governance Committee Quarterly Report to 31 December 2018

 

Governance Committee

7 March 2019

 

 

REPORT R9849

Governance Committee Quarterly Report to 31 December 2018

     

 

1.       Purpose of Report

1.1      To inform the Committee of the financial and non-financial results for the second quarter for the activities under its delegated authority.

1.2      To highlight any material variations.

 

 

2.       Recommendation

That the Governance Committee

Receives the report Governance Committee Quarterly Report to 31 December 2018 (R9849) and its attachments (A2124377, A2131712).

 

 

 

3.       Background

3.1      Quarterly reports on performance are being provided to each Committee on the performance and delivery of projects and activities within their areas of responsibility.

3.2      The financial reporting focuses on the year to date performance (1 July to 31 December 2018) compared with the year-to-date (YTD) approved capital and operating budgets.

3.3      Unless otherwise indicated, all information is against approved operating budget, which is the 2018/19 Long Term Plan budget plus any carry forwards, plus or minus any other additions or changes as approved by the Committee or Council. 

3.4      There are four projects that fall under the Governance Committee that are included as part of the quarterly reporting. These have been selected if their budget is at least $250,000 for 2018/19, are multi-year projects with a budget over $1 million, or have been assessed to be of particular interest to the Committee.

4.       Key developments for the three months to 31 December 2018

4.1      The Annual Report 2017/18 was adopted on 25 October 2018 by Council. The summary Annual Report was prepared and both the summary Annual Report and full Annual Report were made available online and at libraries and the Customer Service Centre in November 2018.

4.2      The Annual Plan 2019/20 development is underway, with a Council workshop held on 4 and 5 December 2018. A further workshop is scheduled for February, with the consultation period in March/April 2019.

4.3      The 2018 Residents’ Survey results were reported to the Governance Committee and made available online.

4.4      There were 38 meetings under the Local Government Official Information and Meetings Act 1987 (LGOIMA) for the October to December quarter.

4.5      There were 55 LGOIMA requests received between 1 October and 31 December 2018, and all but one were responded to within the statutory timeframe.  This was due to attempts to clarify the scope of the request, delays from the requestor and an extension of the search. However the request for clarification fell outside the first seven days, so the original deadline was not met.

4.6      A Memorandum of Understanding was approved for Uniquely Nelson.

4.7      Council adopted the amended 2018 Policy for Setting the Remuneration for Directors of Nelson City Council’s Council Controlled Trading Organisations.

4.8      Key developments for investment management, forestry and other sub-activities are covered in the financial results section of this report.

5.       Financial results

5.1      Financial information is shown in charts below, with an explanation following.


 

Operating revenue

5.2      Investment management greater than budget by $1,300,000 – investment management received an unbudgeted special dividend from Port Nelson of $750,000 plus the 2017/18 final dividend of $375,000 from Nelson Airport which was budgeted to be recognised in the last financial year. Interest income on short term investments is also ahead of budget by $214,000 as Council holds a $15m deposit to offset the pre-funding of debt, which is maturing in 2019.

5.3      Civic House greater than budget by $71,000 Civic House has recorded greater rent recoveries YTD than budgeted. These are internal recoveries so this will be offset by expenditure in other cost centres.

5.4      Forestry greater than budget by $1,000,000 harvesting income is ahead of budget due to income being budgeted net of harvest expenses, but recorded as gross of expenses (see operating revenue graph). This higher revenue is offset by higher associated forestry expenditure (see operating expenditure budget graph). In regards to the current harvesting programme, the Roding Forest is currently being harvested (because of higher log prices) and although the Brook Valley and Maitai Forest harvests have been budgeted, this work has not yet commenced.

5.5      Emergency Response Fund greater than budget $202,000 revenue includes an unbudgeted insurance refund for the February 2018 storm event of $300,000, which is offset by decreased internal recoveries for infrastructure insurance of $99,000 due to increased premiums.

Operating expenditure

5.6      Admin & Meeting Support less than budget by $96,000 – allocation of staff overhead costs are behind budget.

5.7      Civic House less than budget by $55,000 – the variance includes allocation of staff overhead costs of $14,000 and depreciation of $25,000. In addition, programmed building maintenance is behind budget by $21,000 due to the seasonality of painting work.

5.8      Forestry greater than budget by $1,107,000 – harvest costs have been recorded against nil budgets, due to harvest income being budgeted net of expenses. This is offset by forestry income which is ahead of budget by $1,000,000. In addition, post-operational clean-up costs at the Roding Forest have been higher than anticipated.

 

Capital expenditure

5.9      There are four projects that fall under the Governance Committee that are included as part of the quarterly reporting. These have been selected if their budget is at least $250,000 for 2018/19, are multi-year projects with a budget over $1 million, or have been assessed to be of particular interest to the Committee.

6.       Commentary on capital projects

6.1      There are three capital projects, within the Governance Committee delegations, that are included as part of the quarterly reporting. All of these are over $250,000 for 2018/19.

6.2      Project status is analysed based on three factors; quality, time and budget.  From the consideration of these three factors the project is summarised as being on track (green), some issues/risks (yellow), or major issues/risks (red). Projects that are within 5% of their budget are considered to be on track in regards to the budget factor.

6.3      Of those capital projects attached, all relate to Civic House improvements, and are red as they are on hold.

7.       Commentary on operational projects

7.1      There is one non-capital project, within the Governance Committee delegations, that is included as part of the quarterly reporting.  This project, the 2019/20 Annual Plan, has been selected for quarterly reporting as it makes an important contribution to Council’s work programme. The project sheet is appended in Attachment 1.

8.       Other notable achievements or issues

8.1      Credit rating agency, Standard and Poor's, has affirmed Nelson’s very good AA long-term and A-1+ short-term credit ratings, and given a stable outlook for Council. The stable credit rating outlook reflects Standard and Poor’s expectation that although Council will record small after-capital-account deficits during the next few years as it rolls out a larger infrastructure programme, Nelson's debt burden should remain moderate. 

9.       Key Performance Measures

9.1      As part of the development of the Long Term Plan 2018-28 Council approved levels of service, performance measures and targets for each activity.  There are 10 performance measures that are within the Governance Committee’s delegations.

9.2      Final results for each measure will be reported on through the Annual Report 2018/19, however this report includes an indication of progress for those measures where an assessment of current performance is available at this stage.

9.3      A number of performance measures cannot be reported on until the end of the financial year, accordingly the scale to report on the performance measures is as follows:

·        On track

·        Not on track

·        Achieved

·        Not achieved

·        Not measured yet

9.4      Attachment 2 lists all performance measures within the Governance Committee delegations, their status and commentary for the quarter.

10.     Quarterly Review of Performance Measures

   

10.1    Four of the ten measures were on target as at the end of the second quarter of 2018/19. 

10.2    The results of six measures cannot be reported on yet. Some of this data comes with a time lag, while data on events has not been provided for quarter two, but it is expected this will be available for future quarterly reports.

11.     Conclusion

11.1    The review of performance for the second quarter for the Governance Committee is included in this report, with project sheets and performance measure updates attached.

         

Author:          Nicky McDonald, Group Manager Strategy and Communications

Attachments

Attachment 1:  A2124377 - Governance - Quarterly Report project sheets - Quarter 2 - Jan2019

Attachment 2:  A2131712 -Performance Measurement Summary for Governance Committee Q2 - 7Mar2019

 


Item 9: Governance Committee Quarterly Report to 31 December 2018: Attachment 1

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Item 9: Governance Committee Quarterly Report to 31 December 2018: Attachment 2

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