AGENDA
Ordinary meeting of the
Joint Shareholders Committee
Tuesday 16 April 2019
Commencing at 1.30p.m.
Council Chamber
Civic House
110 Trafalgar Street, Nelson
Membership: His Worship the Mayor of Tasman Richard
Kempthorne (Chairperson), Her Worship the Mayor of Nelson Rachel Reese, Nelson
City Councillors, Ian Barker, Mel Courtney, Paul Matheson, Gaile Noonan and Tim
Skinner; Tasman District Councillors Tim King (Deputy Chairperson), Stuart
Bryant, Pete Canton, David Ogilvie and Trevor Tuffnell
Quorum: 6
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
16
April 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
5. Confirmation
of Minutes
5.1 20
November 2018 6 - 10
Document number M3917
Recommendation
|
That the Joint Shareholders Committee
1. Confirms the minutes of the
meeting of the Joint Shareholders Committee, held on 20 November 2018, as a
true and correct record.
|
6. Port Nelson Limited
half yearly report to 31 December 2018 11 - 16
Document number R9955
Recommendation
|
That the Joint Shareholders Committee
1. Receives the report Port Nelson
Limited half yearly report to 31 December 2018 (R9955) and its attachment (A2143970).
|
7. Tasman Bays Heritage
Trust Half Yearly Report to 31 December 2018 and draft Statement of Intent
2019/22 17 - 68
Document number R9965
Recommendation
|
That
the Joint Shareholders Committee
1. Receives the
report Tasman Bays Heritage Trust Half Yearly Report to 31 December 2018 and
draft Statement of Intent 2019/22 (R9965)
and its attachments (A2149588, A2149585, A2089336 and A2149583); and
2. Notes the delivery of the Tasman
Bays Heritage Trust draft Statement of Intent 2019/2022 (A2149585) as
required under the Local Government Act 2002; and
3. Provides the
following feedback to the Tasman Bays Heritage Trust Board on its draft
Statement of Intent:
· Endorses the Tasman Bays Heritage Trust plan to continue
to progress a capital works project that will safely and appropriately house
and care for the Nelson Tasman Regional Heritage Collection; and
· Requests the Tasman Bays Heritage Trust to revise its
visitation forecasts.
|
8. Nelson Airport
Limited half yearly report to 31 December 2018 69 - 93
Document number R9954
Recommendation
Public Excluded Business
9. Exclusion of the Public
Recommendation
|
That
the Joint Shareholders Committee
1.
Confirms, in
accordance with sections 48(5) and 48(6) of the Local Government Official
Information and Meetings Act 1987, that Robert Evans, Chief Executive and
Simon Orr, Corporate Services Manager, Nelson Airport Ltd, remain after the
public has been excluded, for Item 1 of the Public Excluded agenda (Nelson
Airport Limited - Draft Statement of Intent 2018-2019), as they have
knowledge relating to Nelson Airport Ltd that will assist the meeting.
|
Recommendation
That the Joint
Shareholders Committee
1. Excludes the public from the following
parts of the proceedings of this meeting.
2. 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
|
Nelson Airport Limited - Draft Statement of Intent
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)(h)
To enable the local
authority to carry out, without prejudice or disadvantage, commercial
activities
|
Joint Shareholders Committee
Minutes - 20 November 2018
Present: Her
Worship the Mayor of Nelson R Reese (Presiding Co-Chairperson), His Worship the
Mayor of Tasman R Kempthorne (Co-Chairperson), Nelson City Councillors I
Barker, M Courtney, G Noonan, and T Skinner, Tasman District Councillors S
Bryant, D Ogilvie and T Tuffnell
In
Attendance: Chief Executive (P Dougherty), Group
Manager Community Services (R Ball), Group Manager Corporate Services (N
Harrison) and Governance Adviser (R Terry)
Apologies: Councillors
P Matheson, P Canton and T King
1. Apologies
|
Resolved JSC/2018/034
That the Joint
Shareholders Committee
Receives and
accepts an apology from Councillors P Matheson, P Canton and T King.
Her Worship the Mayor/His Worship the Mayor of Tasman
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, and no interests with items on the agenda were declared.
4. Public Forum
There was no public forum.
5. Confirmation of
Minutes
5.1 21
August 2018
Document number M3704, agenda
pages 6 - 11 refer.
|
Resolved JSC/2018/035
That the Joint
Shareholders Committee
Confirms the
minutes of the meeting of the Joint Shareholders Committee, held on 21 August
2018, as a true and correct record.
His Worship the Mayor of Tasman/Courtney Carried
|
6. Policy review: Joint
appointment of Directors/Trustees of Council Controlled Organisations and
Council Controlled Trading Organisations
Document number R9713, agenda
pages 12 - 20 refer.
Group Manager Corporate Services,
Nikki Harrison presented the report and answered questions on the reappointment
process for an existing director, appointment of new directors, including the
selection panel.
After discussion it was noted
that the following amendments would be made:
· 4.1. – amend
wording to read, ‘The co-Chairs of the Joint Shareholders Committee
will’.
· 4.1.3. – add
to the end of the paragraph, ‘if board Chair is unavailable’.
· 5.2 – add to
the last sentence, ‘Co-Chairs Joint Shareholders Committee’.
|
Resolved JSC/2018/036
That the Joint Shareholders Committee
Receives the report Policy review: Joint
appointment of Directors/Trustees of Council Controlled Organisations and
Council Controlled Trading Organisations (R9713) and its attachment (A2065956); and
Approves
the amended 2018 Policy for joint appointment of Directors/Trustees of
Council Controlled Organisations and Council Controlled Trading Organisations (A2065956).
Ogilvie/Noonan Carried
|
7. Tasman Bays Heritage
Trust - Trustee Rotation and Remuneration
Document number R9773, agenda
pages 21 - 24 refer.
Group Manager Community Services
Roger Ball presented the report and answered questions on the length of time
between appointments, with the committee noting the importance of staggering
the appointments where possible.
|
Resolved JSC/2018/037
That the Joint Shareholders Committee
Receives the report Tasman Bays Heritage Trust
- Trustee Rotation and Remuneration (R9773);
and
Notes the decision
of the Tasman Bays Heritage Trust Appointments Committee to reappoint the
following Trustees for three year terms ending in November 2021:
· Olivia
Hall (Chair)
· Emma
Thompson
· Derek
Shaw
· Darren
Mark
Increases the
Trustees’ remuneration pool for the Tasman Bays Heritage Trust by 1.6%
(being the annual Consumer Price Index change to December 2017) to $64,221
for the 2018/19 financial year.
His Worship the Mayor of Tasman/Noonan Carried
|
8. Exclusion
of the Public
|
Resolved JSC/2018/038
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:
Ogilvie/Bryant 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 - 21 August
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
· 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 1.56p.m.
and resumed in public session at 1.56p.m.
Please note that as the only business transacted in
public excluded was to confirm the minutes, this business has been recorded in
the public minutes. In accordance with the Local Government Official
Information Meetings Act 1987, no reason for withholding this information from
the public exists.
Confirmation of
Minutes
21
August 2018
Document number M3705, agenda
pages 3 - 8 refer.
|
Resolved JSC/2018/039
That the Joint
Shareholders Committee
Confirms the
minutes of part of the meeting of the Joint Shareholders Committee, held with
the public excluded on 21 August 2018, as a true and correct record.
His Worship the Mayor of Tasman/Courtney Carried
|
9. Re-admittance of the
Public
|
Resolved JSC/2018/040
That
the Joint Shareholders Committee
Re-admits
the public to the meeting.
Her Worship the Mayor/Skinner Carried
|
There being no further business the meeting ended at 1.57p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 6: Port Nelson
Limited half yearly report to 31 December 2018
|
|
Joint Shareholders Committee
16 April 2019
|
REPORT R9955
Port
Nelson Limited half yearly report to 31 December 2018
1. Purpose
of Report
1.1 To
receive the half yearly report to 31 December 2018 from Port Nelson Limited.
2. Recommendation
|
That
the Joint Shareholders Committee
1. Receives the report Port Nelson
Limited half yearly report to 31 December 2018 (R9955) and its attachment (A2143970).
|
2. Background
2.1 The
Port Companies Act 1988 requires delivery of the half year report within two
months of the end of the period to the shareholders and the Minister of
Transport. This requirement has been met.
2.2 The
Port Company presented on the six monthly result at the Joint Committee of
Nelson City and Tasman District Council held on 26 March 2019 and are therefore
not presenting again today.
3. Discussion
3.1 The
half yearly report of Port Nelson for the period ending 31 December 2018 is
included as Attachment 1.
3.1.1 For
the first six months of this financial year Port Nelson reported total revenue
of $32.8 million, up 3% against budget and up 3.2% on the same period last
year.
3.1.2 Cargo
volumes for the first half of the year were ahead of budget with 1.831 million
tonnes handled against the budget of 1.649 million, and up on the 1.631 million
handled at the same time last year.
3.1.3 Vessel
visits were 399, down on the budget of 432 due principally to the reduction in
container vessels calls as a result of the cessation of the Maersk service in
August and the temporary withdrawal of the PAD service in September.
3.1.4 Net
profit after tax (NPAT) of $5.2 million is 9.2% above budget and 5.4% higher
than the same time last year.
3.2 The
report shows that Port Nelson have largely met its SOI targets for the first
six months except for:
3.2.1 Annual
ship visits/gross shipping tonnes (as discussed above in 3.1.3)
3.2.2 Lost
time injury (LTI) frequency rate of 2.9 versus a budget of less than 1.5
(higher than the same time last year of 2.3).
3.2.3 Capital
expenditure programme (and therefore debt to equity ratio) is below budget by
$6.5 million due to the timing variations.
3.3 As
commented on in the attached six monthly report, there is concern of the impact
of the recent fires and the ongoing drought on cargo volumes through the Port
over the short and medium term.
3.4 The
Statement of Corporate Intent for Port Nelson Limited is not due to be received
until 31 July 2019 and will be brought to the 20 August 2019 Joint Shareholders
Committee meeting.
4. Conclusion
4.1 Port
Nelson has complied with the Port Companies Act 1988 in preparing a half yearly
report.
Author: Nikki
Harrison, Group Manager Corporate Services
Attachments
Attachment 1: A2143970
- Port Nelson Limited 6 month report to 31 December 2018 ⇩
Item 6: Port Nelson Limited half yearly report to 31 December 2018:
Attachment 1
Item 7: Tasman Bays
Heritage Trust Half Yearly Report to 31 December 2018 and draft Statement of
Intent 2019/22
|
|
Joint Shareholders Committee
16 April 2019
|
REPORT R9965
Tasman
Bays Heritage Trust Half Yearly Report to 31 December 2018 and draft Statement
of Intent 2019/22
1. Purpose of Report
1.1 To receive the
half yearly report from the Tasman Bays Heritage Trust (TBHT) (Attachment 1)
and to consider the Trust’s draft Statement of Intent 2019/2022
(Attachment 2).
2. Summary
2.1 TBHT has
delivered its six monthly report to December 2018 and a draft Statement of
Intent, as required under the Local Government Act 2002.
3. Recommendation
|
That the Joint Shareholders Committee
1. Receives the
report Tasman Bays Heritage Trust Half Yearly Report to 31 December 2018 and
draft Statement of Intent 2019/22 (R9965)
and its attachments (A2149588, A2149585, A2089336 and A2149583); and
2. Notes the delivery of the Tasman
Bays Heritage Trust draft Statement of Intent 2019/2022 (A2149585) as
required under the Local Government Act 2002; and
3. Provides the
following feedback to the Tasman Bays Heritage Trust Board on its draft
Statement of Intent:
· Endorses the Tasman Bays Heritage Trust plan to
continue to progress a capital works project that will safely and
appropriately house and care for the Nelson Tasman Regional Heritage
Collection; and
· Requests the Tasman Bays Heritage Trust to revise its
visitation forecasts.
|
4. Background
4.1 Under the Local
Government Act, TBHT is required to deliver a draft Statement of Intent (SOI) to
the councils on an annual basis no later than 1 March each year.
4.2 The councils have
an opportunity to provide feedback to the Board of TBHT within two months of
this date and the Trust then has until 30 June 2019 to deliver the final SOI to
the shareholders.
4.3 On 6 November
2018, the Joint Committee resolved:
Confirms
the general expectations including renewable energy generation in clause 6.13
for Statements of Intent/Statements of Corporate Intent set out in paragraphs
6.1 to 6.15 in report R9762.
4.4 Subsequent
discussion indicated a desire to add further specific matters as follows:
4.4.1 Governance succession plan: include
in the SOI a governance succession plan which details how the board will
identify and mentor a future Chair of the Trust;
4.4.2 Resilience: include in the SOI a
risk management plan which details risks/hazards, mitigation strategies,
response and recovery plans including in relation to cyber-attacks and natural
hazards;
4.4.3 Good employer obligations: detail
in the SOI how the Trust meets its good employer obligations under the Local
Government Act, particularly in relation to fair pay and equal employment
opportunities;
4.4.4 Climate change: include
information about climate change responsiveness, including risk resilience,
mitigation and adaptation; and
4.4.5 Collections facility: detail
plans to progress work to develop a regional collections facility to replace
the Isel Park building.
4.5 The letter of
expectation (Attachment 3) was sent to TBHT in December 2018 outlining the
general expectations and specific matters that the councils would like to see
addressed in the SOI for the 2019/20 year.
4.6 TBHT provided a
half yearly report to December 2018 (Attachment 1) and a draft Statement of
Intent (Attachment 2) dated 1 March 2019, and received by email on 4 March
2019. Aside from this small delay, this documentation meets the requirements of
the Local Government Act. The Trust also sent a cover letter (Attachment 4)
responding to the matters contained in the letter of expectation. The
cover letter notes the TBHT is required to have a robust risk management plan;
that the Board is updating this plan in light of recent emergency events; and
the Board will provide a copy to the Councils. Subject to receipt of the
updated risk management plan, the TBHT has responded satisfactorily to the
matters contained in the letter of expectation.
4.7 The Interim
Chair of the Board, Emma Thompson, and Interim CEO, Olivia Hall, will be in
attendance at the meeting to present information and to answer questions.
5. Discussion
Draft
Statement of Intent
5.1 The cover letter
(Attachment 4) deals with specific requirements in relation to the letter of
expectation.
5.2 TBHT has clearly
been developing its strategic plan and the SOI sets out the priority work
streams for forthcoming years.
5.3 Strategic
Objective One in the draft SOI (p. 5 of the SOI) describes a project to safely
and appropriately house and care for the Nelson Tasman Regional Heritage
Collection. The TBHT has previously presented a business case with a preferred
location. In response to this, officers from the two councils met with TBHT and
requested a peer review, at the councils’ expense, of the costings in the
business case. The aim of this is to help ensure the cost estimates for the new
facility are robust. The outcomes from this peer review were presented by
TBHT to the Joint Committee at its meeting on 26 March 2019. Discussions
have also been held regarding the implications of asbestos assessments at the
Isel facility.
5.4 The visitation
targets described on p. 11 of the SOI record very positive trends with visitor
numbers, with actual visits now exceeding forecasts out to 2021/22. It would
seem appropriate to recast the forecast figures in light of the trend.
5.5 The TBHT has a
loan with each council amounting to $825,000 per council as at 31 December
2018. The SOI states (p. 23) that the Trust will repay the amount of $100,000
to each council for a period of four years commencing June 2016. The TBHT says
it will review its repayments after this. The Interim CEO, Olivia Hall, has
advised officers that the TBHT is “committed to repaying $100,000 per
council in the 2018/2019 year and [has] budgeted for it again in the 2019/2020
year. At this stage the TBHT [has] not made a commitment to continue at
this level beyond the 2019/2020 year and [has] budgeted it back at the
substantive amount of $50,000 per council per year. This has been reflected in
the SOI budget financials”.
Half
Yearly Report
5.6 TBHT presented
information from its half yearly report to the Joint Committee on 26 March
2019.
5.7 The half yearly
report shows that TBHT is on track to meet the majority of its objectives for
the year. Visitor numbers are well up on the comparable period for 2017, at
32,691, and are tracking ahead of the target of 51,805 for the year.
5.8 Revenue is
slightly ahead of budget as are direct and other expense costs, meaning the
operating profit (before depreciation) is close to budget. In response to a
question from officers, TBHT explained that increased visitor numbers will not
result in additional revenue in the current financial year as there is no paid
exhibition planned for 2019/20 (unlike in 2018/19).
5.9 The Board had
budgeted to run a deficit after depreciation of $80,184 year to date and is
currently tracking at $99,844 due to higher depreciation. As in previous
years, the TBHT does not plan to fully fund for depreciation (as the Councils
do not fund TBHT for this). CPI has been estimated at 1.9% and there may
some risks with wage inflation being higher. The Board continues to build
up cash, with $778,000 in the bank.
5.10 The Trust has engaged in a
number of outreach activities across the region and continues to work closely
with the region’s smaller museums on exhibitions and training.
5.11 It is pleasing to note that
income from the museum shop is starting to make a more significant contribution
to revenue.
6. Options
6.1 There is no
decision to be made on the half yearly report. TBHT has complied with the
legislation in preparing and presenting the report to the councils.
6.2 In relation to
the draft SOI, the Committee can choose to either provide feedback to the Board
of TBHT or accept the SOI as the final version (with any minor amendments). If
the Committee does submit substantive feedback, then the amended SOI will be
brought back to the Committee in August.
|
|
|
Advantages
|
· Ensures
the Committee’s views are reflected in the SOI
|
|
Risks and Disadvantages
|
· The
SOI will need to come back to the Committee in August
|
|
|
|
Advantages
|
· The
process can wrap up now and a further report is not required
|
|
Risks and Disadvantages
|
· The
Committee’s views may not be included
|
7. Conclusion
7.1 TBHT has not met
its statutory timeframes for submission of its half yearly report and draft
Statement of Intent, however this appeared to be a technical hitch and is not
considered material. The Committee has the ability to accept the draft SOI as
it is or to provide feedback to TBHT for inclusion in its final SOI, due by 30
June 2019.
Author: Roger
Ball, Group Manager Community Services
Attachments
Attachment 1: A2149588 -
Tasman Bays Heritage Trust - Six Monthly Report to 31 December 2018 - 1Mar2019 ⇩
Attachment
2: A2149585 - Tasman Bays Heritage Trust - Statement of
Intent 2019-2022 - 1Mar2019 ⇩
Attachment
3: A2089336 - Letter of Expectation - Tasman Bays Heritage
Trust 2019-20 - 11Dec2018 ⇩
Attachment
4: A2149583 - Tasman Bays Heritage Trust - Cover Letter to
Statement of Intent and Six-Monthly Report - 1Mar2019 ⇩
|
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.
|
|
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
No engagement with Māori has been undertaken in
preparing this report. Iwi are
represented on the Trust Board.
|
|
7. Delegations
The Joint Shareholders Committee has the following
delegations to consider the Tasman Bays Heritage Trust Half Yearly Report to
31 December 2018 and Draft Statement of Intent 2019/22:
Areas of Responsibility and Powers to Decide:
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.
|
Item 7: Tasman Bays Heritage Trust Half Yearly Report to 31 December
2018 and draft Statement of Intent 2019/22: Attachment 1
Item 7: Tasman Bays
Heritage Trust Half Yearly Report to 31 December 2018 and draft Statement of
Intent 2019/22: Attachment 2
Item 7: Tasman Bays
Heritage Trust Half Yearly Report to 31 December 2018 and draft Statement of
Intent 2019/22: Attachment 3
Item 7: Tasman Bays
Heritage Trust Half Yearly Report to 31 December 2018 and draft Statement of
Intent 2019/22: Attachment 4
Item 8: Nelson Airport
Limited half yearly report to 31 December 2018
|
|
Joint Shareholders Committee
16 April 2019
|
REPORT R9954
Nelson
Airport Limited half yearly report to 31 December 2018
1. Recommendation
|
That the Joint Shareholders Committee
Receives the report Nelson Airport Limited
half yearly report to 31 December 2018 (R9954) and its attachment (A2153339).
|
Author: Mike
Drummond, Corporate Services Manager, Tasman District Council
Attachments
Attachment 1: A2153339 -
Nelson Airport Ltd half yearly report to Dec 2018 ⇩
Item 8: Nelson Airport Limited half yearly report to 31 December
2018: Attachment 1
