Agenda of Governance and Finance Committee

Notice of the ordinary meeting of the

Governance and Finance Committee

Kōmiti Mana Ārahi, Ahumoni Hoki Date: Thursday 21 May 2020
Time: 9.00a.m.
Location: Via Zoom

Agenda

Rārangi take

Chair Cr Rachel Sanson

Deputy Chair Cr Gaile Noonan

Members Her Worship the Mayor Rachel Reese

Cr Yvonne Bowater

Cr Trudie Brand

Cr Mel Courtney

Cr Kate Fulton

Cr Judene Edgar

Cr Matt Lawrey

Cr Brian McGurk

Cr Rohan O’Neill-Stevens

Cr Pete Rainey

Cr Tim Skinner

John Murray

John Peters

Pat Dougherty

Chief Executive

Quorum: 8

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.

Governance and Finance Committee - Delegations

Areas of Responsibility:

· Business, economic development and tourism in Nelson

· Bylaws, within the areas of responsibility

· Communications and Engagement Strategy

· Events Strategy

· Oversight of Forestry matters

· Governance of Nelson City Council Controlled Organisations, Nelson City Council Controlled Trading Organisations, and Council Organisations

· Council’s financial performance

· Oversight of Audit and Risk Subcommittee matters

· Property matters, including the management, monitoring of and maximisation of Council’s property portfolio

· Rating systems and policies

· Residents’ Survey

Delegations:

The committee has all of the responsibilities, powers, functions and duties of Council in relation to governance matters within its areas of responsibility, except where they have been retained by Council, or have been referred to other committees, subcommittees or subordinate decision-making bodies.

The exercise of Council’s responsibilities, powers, functions and duties in relation to governance matters includes (but is not limited to):

· Monitoring Council’s performance for the committee’s areas of responsibility, including legislative responsibilities and compliance requirements

· Developing, approving, monitoring and reviewing policies and plans, including activity management plans and the Financial Strategy

· Reviewing and determining whether a bylaw or amendment, revocation or replacement of a bylaw is appropriate

· Undertaking community engagement, including all steps relating to Special Consultative Procedures or other formal consultation processes

· Approving submissions to external bodies or organisations, and on legislation and regulatory proposals

Powers to Recommend to Council:

In the following situations the committee may consider matters within the areas of responsibility but make recommendations to Council only (in accordance with sections 5.1.3 - 5.1.5 of the Delegations Register):

· Matters that, under the Local Government Act 2002, the operation of law or other legislation, Council is unable to delegate

· The purchase or disposal of land or property relating to the areas of responsibility, other than in accordance with the Long Term Plan or Annual Plan

· Unbudgeted expenditure relating to the areas of responsibility, not included in the Long Term Plan or Annual Plan

· Decisions regarding significant assets

N-logotype-black-wide Governance and Finance Committee

21 May 2020

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 27 February 2020 9 - 13

Document number M6721

Recommendation

That the Governance and Finance Committee

1. Confirms the minutes of the meeting of the Governance and Finance Committee, held on 27 February 2020, as a true and correct record.

6. Chairperson's Report

7. Nelson Regional Development Agency - half yearly report to 31 December 2019 14 - 29

Document number R15887

Meg Matthews, Nelson Regional Development Agency Chairperson, and Mark Rawson, Nelson Regional Development Agency CEO, will be present for items 7 and 8.

Recommendation

That the Governance and Finance Committee

1. Receives the report Nelson Regional Development Agency - half yearly report to 31 December 2019 (R15887) and its attachments (A2355510, A2359751).

8. Nelson Regional Development Agency - Statement of Expectation 2020/21 and update on review of Nelson Regional Development Agency operations 30 - 164

Document number R13760

Recommendation

That the Governance and Finance Committee

1. Receives the report Nelson Regional Development Agency - Statement of Expectation 2020/21 and update on review of Nelson Regional Development Agency operations (R13760) and its attachments (A2262481, A2361728, A2334601); and

2. Approves the general matters to be included in the Nelson Regional Development Agency Statement of Expectation 2020/21 letter as those identified in report R13760; and

3. Approves the specific matters to be included in the Nelson Regional Development Agency Statement of Expectation letter as those identified in paragraphs 4.8.1 to 4.8.3 of report R13760 and summarised below:

a. Economic development

b. Partnership with iwi and Māori

c. COVID-19 response

d. Project Kōkiri.

9. Nelson Centre of Musical Arts - Strategic Presentation

Roger Taylor, Trust Board Chairperson, Jan Trayes, Trustee and James Donaldson, Director of the Nelson Centre of Musical Arts will give a presentation.

10. Bishop Suter Trust - Strategic Presentation

Julie Catchpole, Suter Director, accompanied by Jeff Morris, Suter Commercial Manager, and representatives of the Bishop Suter Trust will give a strategic presentation on the Bishop Suter Trust.

11. The Bishop Suter Trust Half Year Performance Report to 31 December 2019 and Draft Statement of Intent 2020/2025 165 - 219

Document number R15859

Recommendation

That the Governance and Finance Committee

1. Receives the report The Bishop Suter Trust Half Year Performance Report to 31 December 2019 and Draft Statement of Intent 2020/2025 (R15859) and its attachments (A2351668, A2351670 and A2315613); and

2. Notes the delivery of the Bishop Suter Trust draft State of Intent 2020/2025 (A23501670) as required under the Local Government Act 2002; and

3. Provides the following comments and feedback to the Bishop Suter Trust:

a) that the Draft Statement of Intent meets the Committee’s expectations; or

b) requests the Board considers… (to determine at the meeting).

12. The Bishop Suter Trust - COVID-19 220 - 223

Document number R17021

Recommendation

That the Governance and Finance Committee

1. Receives the report The Bishop Suter Trust - COVID-19 (R17021) and its attachment (A2381965).

13. COVID-19 Update Report - Impacts on Governance and Finance Activities 224 - 227

Document number R16982

Recommendation

That the Governance and Finance Committee

1. Receives the report COVID-19 Update Report - Impacts on Governance and Finance Activities (R16982).

14. Policy review: Appointments of directors/trustees to Council's CCOs and CCTOs 228 - 240

Document number R14809

Recommendation

That the Governance and Finance Committee

1. Receives the report Policy review: Appointments of directors/trustees to Council's Council Controlled Organisations and Council Controlled Trading Organisations (R14809) and its attachments (A284857) and (A2354796); and

2. Confirms the current policy for Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (A284857).

15. Nelmac Limited Half yearly report to 31 December 2019 241 - 249

Document number R14845

Recommendation

That the Governance and Finance Committee

1. Receives the report Nelmac Limited Half yearly report to 31 December 2019 (R14845) and its attachment (A2352112).

CONFIDENTIAL Business

16. Exclusion of the Public

Recommendation

That the Governance and Finance Committee

1. Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Rob Gunn, Nelmac Ltd Chair, and Jane Sheard, Nelmac Ltd CEO, remain after the public has been excluded, for Items 2 and 3 of the Confidential agenda (Nelmac six monthly strategic presentation and Nelmac Limited draft Statement of Intent 2020/21), as they have knowledge relating to those matters that will assist the meeting.

Recommendation

That the Governance and Finance 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	Governance and Finance Committee Meeting - Public Excluded Minutes - 27 February 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)(a) To protect the privacy of natural persons, including that of a deceased person
2	Nelmac six monthly strategic presentation	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 draft Statement of Intent 2020/21	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	Nelson Centre of Musical Arts - Appointment 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

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Governance and Finance Committee Meeting - Public Excluded Minutes - 27 February 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)(a)

To protect the privacy of natural persons, including that of a deceased person

Nelmac six monthly strategic presentation

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

Nelmac Limited draft Statement of Intent 2020/21

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)

Nelson Centre of Musical Arts - Appointment 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

Governance and Finance Committee Minutes - 27 February 2020

Minutes of a meeting of the Governance and Finance Committee

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

On Thursday 27 February 2020, commencing at 10.01a.m.

Present: Councillor R Sanson (Chairperson), Her Worship the Mayor R Reese, Councillors Y Bowater, T Brand, M Courtney, J Edgar, K Fulton, M Lawrey, B McGurk, G Noonan, R O'Neill-Stevens, P Rainey, and T Skinner, and Mr J Murray and Mr J Peters

In Attendance: Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald), Group Manager Community Service (R Bell, joining via teleconference) and Governance Adviser (E-J Ruthven)

Apologies : Her Worship the Mayor R Reese and Councillor G Noonan (for lateness)

1. Apologies

The Chairperson noted apologies from Her Worship the Mayor and Councillor Noonan for lateness.

2. Confirmation of Order of Business

There was no change to the order of business.

3. Interests

Councillor Rainey declared an update to the Interests Register, noting that he had resigned as trustee of the Light Nelson Trust on 26 February 2020.

No interests with items on the agenda were declared.

4. Public Forum

There was no public forum.

5. Confirmation of Minutes

5.1 5 December 2019

Document number M6602, agenda pages 6 - 14 refer.

Resolved GF/2020/001

That the Governance and Finance Committee

1. Confirms the minutes of the meeting of the Governance and Finance Committee, held on 5 December 2019, as a true and correct record.

Edgar/McGurk Carried

6. Chairperson's Report

Attendance: Councillor Fulton joined the meeting at 10.05a.m.

The Chairperson tabled a report (A2351498).

Resolved GF/2020/002

That the Governance and Finance Committee

1. Receives the report Chairperson’s Report (R15858).

Fulton/Courtney Carried

The Chairperson acknowledged the Civic Trust trustees and its benefactors for its gift of the Philip Price sculpture ‘Family Tree’ to Nelson city.

The Chairperson spoke about the potential opportunities relating to the Emissions Trading Scheme and answered questions regarding carbon measures and specialist advice for this matter.

Attachments

1 A2351498 - Tabled document - Chairperson's Report

7. Nelson Centre of Musical Arts - Letter of Expectation 2020/21

Document number R13712, agenda pages 15 - 21 refer.

Manager Community Partnerships, Mark Preston-Thomas, presented the report. Group Manager Community Services, Roger Ball, joined the meeting via teleconference, to answer questions.

Mr Preston-Thomas, Mr Ball, and Group Manager Corporate Services, Nikki Harrison, answered questions regarding the proposal to mirror the approach taken for Council Controlled Organisations, although the Nelson Centre of Musical Arts was a Council Organisation.

Mr Preston-Thomas answered further questions regarding the process currently underway for the appointment of a business adviser, the relationship between Council and the Nelson Centre of Musical Arts, and the inclusion of reporting requirements against quantifiable performance measures and SMART targets within the Statement of Intent.

Resolved GF/2020/003

That the Governance and Finance Committee

1. Receives the report Nelson Centre of Musical Arts - Letter of Expectation 2020/21 (R13712); and

2. Approves the general matters to be included in the NCMA Letter of Expectation 2019/20 letter as those identified in paragraphs 4.3 to 4.16 of report R13712; and

3. Approves the following specific matters to be included in the NCMA Letter of Expectation:

a) Governance succession plan; and

b) Resilience; and

c) Good employer obligations; and

d) Improving performance reporting by the inclusion of quantifiable performance measures and SMART targets.

McGurk/Bowater Carried

8. Quarterly Report to Governance and Finance Committee 1 October - 31 December 2019

Document number R13735, agenda pages 22 - 51 refer.

Manager Strategy, Mark Tregurtha presented the report.

Group Manager Corporate Services, Nikki Harrison, tabled a document and explained updated forestry income and expenditure forecasts (A2350318).

Attendance: Councillor Noonan joined the meeting at 10.37a.m, and Her Worship the Mayor joined the meeting at 10.38a.m.

Mr Tregurtha, and Group Manager Strategy and Communications, Nicky McDonald, answered questions regarding reporting on economic measures, the New Zealand Institute of Economic Research's recommended focus areas for improving future reports, economic development income, the central government Infrastructure Financing and Funding Bill consultation, the Te Tauihu Intergenerational Strategy.

Mr Tregurtha and Ms McDonald answered further questions regarding the Christmas Decorations CBD project, the Haven Precinct project, and projects relating to Civic House.

Resolved GF/2020/004
	*That the* *Governance and Finance Committee* 1. Receives the report Quarterly Report to Governance and Finance Committee 1 October - 31 December 2019 (R13735) and its attachments (A2332426, A2334191, A2341521 and A2338769).
O'Neill-Stevens/Edgar Carried
Attachments 1 A2350318 - Tabled document

9. Exclusion of the Public

Resolved GF/2020/005

That the Governance and Finance Committee

1. Excludes the public from the following parts of the proceedings of this meeting.

McGurk/Bowater 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	Governance and Finance Committee Meeting - Public Excluded Minutes - 5 December 2019	Section 48(1)(a) The public conduct of this matter would be likely to result in disclosure of information for which good reason exists under section 7.	The withholding of the information is necessary: · Section 7(2)(h) To enable the local authority to carry out, without prejudice or disadvantage, commercial activities · Section 7(2)(i) To enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)
2	Reappointment of Trustees to the City of Nelson Civic Trust	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

Item

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Particular interests protected (where applicable)

Governance and Finance Committee Meeting - Public Excluded Minutes - 5 December 2019

Section 48(1)(a)

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

The withholding of the information is necessary:

· Section 7(2)(h)

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

· Section 7(2)(i)

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

Reappointment of Trustees to the City of Nelson Civic Trust

Section 48(1)(a)

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

The withholding of the information is necessary:

· Section 7(2)(a)

To protect the privacy of natural persons, including that of a deceased person

The meeting went into confidential session at 11.11a.m and resumed in public session at 11.34a.m.

Restatements

It was resolved while the public was excluded:

CONFIDENTIAL: Reappointment of Trustees to the City of Nelson Civic Trust

That the Governance and Finance Committee

3. Agrees that the appointments be made public once they have been finalised.

There being no further business the meeting ended at 11.34a.m.

Confirmed as a correct record of proceedings:

Chairperson Date

Item 7: Nelson Regional Development Agency - half yearly report to 31 December 2019

Governance and Finance Committee

21 May 2020

REPORT R15887

Nelson Regional Development Agency - half yearly report to 31 December 2019

1. Purpose of Report

1.1 To receive the Nelson Regional Development Agency (NRDA) half yearly report to 31 December 2019.

2. Recommendation

That the Governance and Finance Committee

1. Receives the report Nelson Regional Development Agency - half yearly report to 31 December 2019 (R15887) and its attachments (A2355510, A2359751).

2. Background

2.1 Section 66 of the Local Government Act 2002 requires a Council Controlled Organisation (CCO) to deliver a half yearly report on its operations to the shareholders within two months after the end of the period. The report must include the information required by the CCO’s Statement of Intent (SOI).

2.2 The NRDA’s half yearly report for the period ending 31 December 2019 is attached (Attachment 1) as well as the 2019 Annual Economic Profile summary (Attachment 2).

3. Discussion

3.1 This time period covered by the half yearly report predates the COVID-19 emergency. Accordingly, the financial information and services delivered and reported on in the end of year report are likely to be significantly different to what is contained in this report and its attachments.

3.2 Meg Matthews, the Chair of the Board and Mark Rawson, Chief Executive of the NRDA will be attending this meeting to present the half yearly report and the 2019 Annual Economic Profile summary.

3.3 The half yearly report shows that the NRDA was on track to meet the majority of its SOI targets for 2019/20.

3.4 The six month financials to 31 December 2019, showed an operating surplus of $98,758 compared to a budgeted surplus of $31,160. The variance is due to revenue being ahead of budget as a result of timing fluctuations.

3.5 By the end of the year private sector revenue was expected to be at a higher level than last year, but the targeted increase of $80,000 non-local body funding outlined in the SOI is unlikely to be achieved. Expenses for the period were on budget.

3.6 The Nelson iSITE revenue was $10,000 under budget due to reduced foot traffic. The half yearly report had anticipated new business models being trialled, however the iSITE is now closed and expected to remain closed until sometime in 2021, unless there is some significant change in the international visitor sector settings before then.

3.7 Over the last two months the NRDA staff have refocused on supporting the Nelson and Tasman business communities as part of the wider immediate response to COVID-19. Work is also underway on developing updated financial forecasts for the remainder of 2019/20 and those required for the 2020/21 Statement of Intent.

Author: Mark Tregurtha, Manager Strategy

Attachments

Attachment 1: A2355510 - NRDA half yearly report to 31 December 2019 ⇩

Attachment 2: A2359751 - 2019 Annual Economic Profile Summary ⇩

Item 8: Nelson Regional Development Agency - Statement of Expectation 2020/21 and update on review of NRDA operations

Governance and Finance Committee

21 May 2020

REPORT R13760

Nelson Regional Development Agency - Statement of Expectation 2020/21 and update on review of NRDA operations

1. Purpose of Report

1.1 To provide an update on a review that was conducted of the Nelson Regional Development Agency operations and to confirm Council's expectations for the NRDA for the Statement of Intent 2020/21.

2. Summary

2.1 Based on the outcome of this meeting, a Statement of Expectations (SOE) will be prepared for the Board of the NRDA outlining the expectations to be addressed in the Statement of Intent (SOI) 2020/21. The SOE/SOI process has been delayed in order to allow for the completion of a review of NRDA operations and as a result of COVID-19.

2.2 Further consideration of the review findings and recommendations is required. The objective is to have the approach for implementation of the recommendations approved by the end of this calendar year. A number of the recommendations relate specifically to the SOE/SOI process and it is proposed that initial steps to improve the 2020/21 SOE and SOI be taken now.

Recommendation

That the Governance and Finance Committee

2. Approves the general matters to be included in the Nelson Regional Development AgencyStatement of Expectation 2020/21 letter as those identified in report R13760; and

a. Economic development

b. Partnership with iwi and Māori

c. COVID-19 response

d. Project Kōkiri.

3. Background

3.1 The preparation of an SOE is not required under the Local Government Act 2002. However, it is best practice for the Council to signal to CCOs its expectations for the organisation in the next financial year. The CCO can then consider these expectations to guide its strategic direction and the development of its SOI. A copy of the NRDA’s SOI 2019/20 is attached (Attachment 1).

3.2 On 4 June 2019, Council made the following resolution:

Resolved (CL/2019/089)

Approves that a review of the Nelson Regional Development Agency services funded or purchased by Council will be undertaken prior to the next Statement of Expectation being issued and that the findings of the review to be reported to the Governance Committee

3.3 The preparation of the SOE and SOI 2020/21 has been delayed in order to allow for the completion of a review and the preparation of the associated final report. The purpose of the review, which was completed in March 2020, was to gain a better understanding of the services being provided by the NRDA and the costs of delivering those services. The final report is attached (Attachment 2). COVID-19 has also meant that the specific matters for inclusion in the Statement of Expectation needed to be updated.

4. Discussion

Review of NRDA operations

4.1 Martin Jenkins, the consultancy firm that was engaged to undertake the review, identified three main areas for improvement and made the following recommendations:

4.1.1 Achieve strategic alignment between NCC, TDC and NRDA: Build strategic alignment between the councils and NRDA to agree four or five outcome areas and related strategic priorities for the CCO, consistent with council objectives

4.1.2 Clarify and convey the value of the NRDA: Refresh and communicate the value of the NRDA, reflecting the agreed strategic priorities, and set out in an outcomes and measurement framework, and supporting monitoring and evaluation plan. Develop a stakeholder engagement plan, a restructured SOI, and a new reporting framework to NCC and TDC

4.1.3 Secure sustainability of the NRDA: Take steps to secure the sustainability of the NRDA which include reviewing the interfaces between NCC and the NRDA for efficiency improvements, completion of the NRDA’s business model review, and the development of a business case for additional funding.

4.2 Further consideration of the findings and recommendations, including how these might be implemented, is required. A workshop between Council, TDC and the NRDA is proposed to be held as part of this work and the objective is have the approach for implementation approved by the end of this calendar year.

4.3 The review found that there is little scope for the NRDA to reduce costs given its current business model and in relation to private sector funding, the review report states that, “The NRDA appear to be relatively skilled at attracting private sector funding for destination marketing as the proportion of private sector funding it generates is relatively high in comparison to peers”. However, the effect of COVID-19 on the tourism sector will affect the level of private sector funding for destination marketing.

4.4 The discussions with TDC and the NRDA on the detail for the SOI will need to include consideration of whether, in the medium to long term, a reduction in the NRDA’s work programme is required or if, following consideration of the work programme, additional funding would be available from the councils.

Recommendations to improve SOE and SOI

4.5 The review also made specific recommendations in relation to improving the content and structure of the SOE and SOI. Changes should focus on providing greater clarity in the SOE of the functions and services the NRDA is expected to deliver and a stronger performance framework within the SOI. Implementation of these changes is linked to the three areas mentioned above.

4.6 The 2019/20 SOE included nine specific matters to be addressed in the SOI. As a first step towards improving the 2020/21 SOE and SOI, it is proposed that the specific matters in the SOE be limited to a small number of high level outcomes. This will provide clearer guidance to the NRDA on Council’s expectations.

4.7 In addition, it is proposed that the NRDA be requested to deliver a concise and focussed SOI that clearly outlines the NRDA’s priority projects for the next three years and how these projects contribute to Council’s expectations and the NRDA’s purpose and objectives.

Specific matters to be included:

4.8 It is proposed that the following specific expectations be included in the SOE:

4.8.1 Economic development: Describe the work that will be undertaken to support, encourage and facilitate economic development in the Nelson-Tasman Region.

4.8.2 Partnership with iwi and Māori: Describe the work that will be undertaken to support, encourage and facilitate Māori and iwi economic activities in the Nelson-Tasman region.

4.8.3 Covid-19 response: Describe how the impact of COVID-19 will be taken into account in the NRDA’s work programme and financial planning, including the effect on income and expenditure as a result of the impacts on the tourism sector.

4.8.4 Delivering Project Kōkiri: Describe how the NRDA’s work programme will support the economic restart and recovery plan for Nelson/Tasman including project structure, communications and community engagement, provision of quarterly information on the Nelson/Tasman economy and labour market (including Māori and Youth employment), programmes to attract business investment to the region, designing an updated Destination Management Plan, reactivation of business events marketing, review of visitor information services requirements and support for Council’s Events Strategy.

4.9 To assist the Committee, a draft SOE 2020 is attached (Attachment 3).

General matters to be included:

4.10 A complete set of summary prospective financial statements for at least three years.

4.11 Disclose measures such as Earnings before interest and tax (EBIT) and Earnings before interest, tax, depreciation and amortisation (EBITDA).

4.12 Comply with relevant legislation including Schedule 8 of the Local Government Act 2002 (LGA) which sets out the requirements in relation to SOIs.

4.13 Indicate the proposed division between Council and non-Council revenue streams.

4.14 Include capital expenditure and asset management intentions.

4.15 The same information should be used for managing the business and reporting to shareholders.

4.16 The SOI and other reports should be in a plain style, concise and focused on meeting the needs of Council and the public it represents. The use of graphs, tables and charts is expected to convey both financial and non-financial information along with trends (past, current and future numbers).

4.17 Set out the performance story of the NRDA, providing a clear and succinct understanding of its purpose, objectives and the services it delivers and what success looks like. This should include:

4.17.1 Strategic context

4.17.2 Specifying and presentation of the outcomes framework

4.17.3 Main measures, targets and outcomes

4.17.4 Linking the strategy and performance measures together.

4.18 Risk management - include how the Board is considering and managing all risk, including the proposed operating deficit, staff retention and the effects of COVID-19 on NRDA’s work programme and financial position.

4.19 Sustainability – include how the Board is taking environmental impacts, and climate change leadership, adaptation and mitigation into account in the operations of the NRDA.

4.20 Health and Safety – under section 44(3) of the Health and Safety at Work Act 2015 elected members do not have a duty to exercise due diligence to ensure that a CCO complies with its duties or obligations under the Act, unless that member is also an officer of the CCO. However, as a key funder it is still appropriate for Council to set out expectations of health and safety management in CCOs:

4.20.1 The Council expects the Board to set appropriate health and safety strategy and policy, understand the nature of risks and hazards within the business, monitor performance and activities to ensure risk is being managed and review health and safety systems and performance.

4.20.2 The NRDA must report on health and safety matters in accordance with the requirements of Health and Safety at Work Act 2015.

4.21 Governance performance - in order to assist Council in making decisions on director remuneration and appointments, the Board should undertake regular evaluation of its own performance:

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

4.21.2 Director recruitment must take account of the new requirement in the LGA to ensure that when identifying the skills, knowledge, and experience required of directors, consideration is given to whether knowledge of tikanga Māori may be relevant to the governance of that CCO.

4.21.3 Council expects performance reviews to be carried out at least once every 12 months and the next one by 30 November 2020.

5. Options

Option 1: Accept the matters to be included in the SOE
Advantages	· Provides direction to the Board to assist with the preparation of the 2020/21 Statement of Intent
Risks and Disadvantages	· None
Option 2: Amend the matters to be included in the SOE
Advantages	· Provides more specific direction to the Board to assist with the preparation of the 2020/21 Statement of Intent
Risks and Disadvantages	· None

Author: Mark Tregurtha, Manager Strategy

Attachments

Attachment 1: A2262481 - NRDA Statement of Intent 2019/20 ⇩

Attachment 2: A2361728 - Martin Jenkins Final Report - Review of NRDA operations - March 2020 ⇩

Attachment 3: A2334601 - Draft Letter of Expectation ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The NRDA provides services that support the economic wellbeing of our community and the wider region. Although not required by the Local Government Act, preparation of an SOE prior to the SOI being drafted is best practice.

2. Consistency with Community Outcomes and Council Policy

The recommendations align with the following outcomes:

- Our Council provides leadership and foster partnerships, a regional perspective and community engagement

- Our region is supported by an innovative and sustainable economy.

3. Risk

Providing an SOE mitigates the risk that the CCO develops an SOI that is not aligned with Council’s expectations. There is a risk that the NRDA will required additional funding to properly meet the expectations set out in the SOE, particularly given the impact on COVID-19 on the operations and cash flow of the organisation.

4. Financial impact

Comment included in the Risk section.

5. Degree of significance and level of engagement

This matter is of low significance because this decision is about setting expectations early on in the SOI process. Engagement with the CCO will be undertaken but is not required with the wider community.

6. Climate Impact

The SOE requires the Board of the NRDA to outline how it is taking environmental impacts and climate change leadership, mitigation and adaption into account in the operations of the NRDA.

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8. Delegations

The Governance and Finance Committee has the following delegations to consider the content of the SOE:

Areas of Responsibility:

· Nelson City Council Controlled Organisations and Nelson City Council Controlled Trading Organisations.

Delegations

· The committee has all of the responsibilities, powers, functions and duties of Council in relation to governance matters within its areas of responsibility, except where they have been retained by Council, or have been referred to other committees, subcommittees or subordinate decision-making bodies.

Item 8: Nelson Regional Development Agency - Statement of Expectation 2020/21 and update on review of NRDA operations: Attachment 2 – A2361728

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Item 11: The Bishop Suter Trust Half Year Performance Report to 31 December 2019 and Draft Statement of Intent 2020/2025

Governance and Finance Committee

21 May 2020

REPORT R15859

The Bishop Suter Trust Half Year Performance Report to 31 December 2019 and Draft Statement of Intent 2020/2025

1. Purpose of Report

1.1 To receive the Bishop Suter Trust’s half year performance report (Attachment 1).

1.2 To seek the Committee’s approval of the Bishop Suter Trust’s draft Statement of Intent 2020/2025 (Attachment 2).

1.3 To advise the Committee that the implications of the COVID-19 emergency will be reported through the final Statement of Intent 2020/21, which is due by 30 June 2020.

2. Recommendation

That the Governance and Finance Committee

2. Notes the delivery of the Bishop Suter Trust draft State of Intent 2020/2025 (A23501670) as required under the Local Government Act 2002; and

3. Provides the following comments and feedback to the Bishop Suter Trust:

a) that the Draft Statement of Intent meets the Committee’s expectations; or

b) requests the Board considers… (to determine at the meeting).

3. Background

3.1 The Bishop Suter Trust, along with the other Council Controlled Organisations (CCOs), must deliver a half yearly report to Council (s. 66 of the Local Government Act 2002). This should report on the organisation’s operations during that half year, and include any information required by its Statement of Intent (SOI). The report allows the Council an opportunity to monitor the performance of the CCO in relation to its set objectives and Council’s overall aims and outcomes.

3.2 The half yearly report of the Bishop Suter Trust for the period ending 31 December 2019 is attached (Attachment 1).

3.3 Each CCO must also submit a draft Statement of Intent (SOI) to Council by 1 March indicating its proposed activities for the following financial year. The draft SOI prepared by the Trust is attached (Attachment 2).

3.4 The Mayor wrote to the Trust on 19 December 2019 with the Council’s expectations for matters to be addressed by the Trust in the 2020/21 SOI. A copy of the Letter of Expectation that was sent to the Trust is attached (Attachment 3). The specific expectations were:

· Governance succession plan

· Resilience

· Good employer obligations

· Climate change responsiveness, including risk resilience, mitigation and adaption

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

· Improving performance reporting by the inclusion of quantifiable measures and SMART targets

3.5 Julie Catchpole, Suter Director and Jeff Morris, Suter Commercial Manager will be in attendance at the meeting to present information and answer questions. The Trust has chosen to present a five year draft SOI. This is useful in that it helps to show the strategic direction the Trust is taking over the medium term and indicates how it will meet the Council’s expectations. However, the SOI will still need to be reviewed and updated annually.

4. Discussion

Half Yearly Report

4.1 The six month financials to 31 December 2019 show a net deficit of $54,933 compared to a budgeted deficit of $75,413. Negative variances against budget include reduced donation income of $44k and increased marketing costs of $11k. Positive variances include reduced exhibition expenses of $31k, increases in exhibition revenue of $7k and higher trading income of $15k.

4.2 The balance sheet is largely on budget.

4.3 Visitor numbers are largely on track with 67,000 visits during the period. A marketing plan focused on social media and tourism provider partnerships has been implemented, and Opus has been contracted to support asset management. The Suter continues to host a range of exhibitions and provides busy public and children’s educational activities.

Draft Statement of Intent

4.4 The draft SOI defines an aspiration to “be a visual arts centre of the highest quality” attracting local and international visitors and source of pride for Whakatu Nelson. Major goals are to grow the gallery’s reputation, acquire an internationally significant piece of art and further develop regional partnerships. The Suter is also focusing on environmental sustainability and financial resilience through efficiency and building revenue streams. Free entry encourages repeat visits and increased visitor spending on retail and paid exhibitions.

4.5 The impact and duration of the current COVID-19 lock down was unclear at the time of writing the draft SOI, however it may have a material effect on the draft SOI. In order to comply with Section 66 of the Local Government Act any changes to the SOI will be reported through the final Statement of Intent 2020/21 which is due by 30 June 2020.

4.6 The draft SOI sets out a five year plan that identifies five key priorities (Section 2.2, p 6-10).

4.6.1 To operate a visual arts destination of the highest quality.

4.6.2 To inform and engage the public through the visual arts.

4.6.3 To provide innovative educational activities.

4.6.4 To collect and preserve, record and communicate our artistic heritage.

4.6.5 To develop partnerships that grow the Suter.

4.7 The draft SOI also describes how the Trust’s proposed activities align with the community outcomes set out in the Council’s Long Term Plan 2018-28 (Section 2.3, p10-11). Objectives, performance measures and targets for the next three years are defined covering governance, visitor experience, life-long learning, the collection and partnerships (Section 3, p12-13).

5. Options

Option 1: Recommend the draft SOI for approval (recommended option)
Advantages	· The Trust will receive early confirmation of the SOI.
Risks and Disadvantages	· The Committee may not feel that the SOI adequately reflects Council’s expectations. · The SOI does not reflect changes resulting from the COVID-19 emergency.
Option 2: Provide feedback to the Trust on the draft SOI
Advantages	· The Trust will have an opportunity to make changes to the draft SOI to reflect the Committee’s feedback.
Risks and Disadvantages	· The draft SOI will need to come back to the Committee in a future report.

6. Conclusion

6.1 The Bishop Suter Trust has submitted the draft Statement of Intent 2020/25 as required by the Local Government Act. The Committee has an opportunity to provide feedback to the Trust on the draft SOI for consideration in drafting the final 2020/25 SOI.

Author: Mark Preston-Thomas, Manager Community Partnerships

Attachments

Attachment 1: A2351668 - Bishop Suter Trust - Half Year Performance Report to 31 December 2019 - 28Feb2020 ⇩

Attachment 2: A2351670 - Bishop Suter Trust - Statement of Intent 2020/2025 - 28Feb2020 ⇩

Attachment 3: A2315613 - Mayor's Letter to the Bishop Suter Trust - Letter of Expectation - 19Dec2019 ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

The preparation of a draft Statement of Intent (SOI) 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 Suter contributes to the outcome ‘Our communities have opportunities to celebrate and explore their heritage, identity and creativity’ and ‘Our communities have access to a range of social, educational and recreational facilities and activities’.

3. Risk

There is a risk that COVID 19 impacts will require substantial changes to the Statement of Intent and that uncertainties about ongoing impacts will make planning for the next year very difficult. A degree of flexibility will be required during implementation of the Statement of Intent and officers will update Council on any changes to performance targets that are needed during the year.

4. Financial impact

The operation of the Suter Gallery is a budgeted activity for the Council.

5. Degree of significance and level of engagement

This matter is of low significance and no further consultation is proposed.

6. Climate Impact

This decision will have no impact on the ability of the Council to proactively respond to the impacts of climate change now or in the future. The SOI addresses Council’s expectations around climate response.

7. 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.

8. Delegations

The Governance and Finance Committee has the following delegations to consider the content of the Statement of Expectation:

Areas of Responsibility:

· Governance of Nelson City Council Controlled Organisations, Nelson City Council Controlled Trading Organisations, and Council Organisations

Item 13: COVID-19 Update Report - Impacts on Governance and Finance Activities

Governance and Finance Committee

21 May 2020

REPORT R16982

COVID-19 Update Report - Impacts on Governance and Finance Activities

1. Purpose of Report

1.1 To update Council on the impacts that the COVID-19 pandemic has had on activities within the Governance and Finance delegation.

2. Recommendation

That the Governance and Finance Committee

1. Receives the report COVID-19 Update Report - Impacts on Governance and Finance Activities (R16982).

3. Background

3.1 Although responding to the COVID-19 emergency and lockdown has required significant changes to Council’s Governance and Finance activities, key financial and administrative work for Council has continued. Detail on how services have been delivered was covered in the reports to Council dated 9 and 23 April 2020.

3.2 Changes to services have included: transferring services provided from Civic House to online and telephone support by staff from home; more frequent payments to creditors; assistance to ratepayers for rates payments; assistance to leases and licences holders; and extending the consultation process for the Annual Plan.

The Council and committee meetings schedule has been updated, and new processes developed to enable meetings to be held using Zoom.

Council’s Financial Performance

3.3 The initial impacts on Council’s financial position from COVID-19 were covered in reports to Council dated 9 and 23 April 2020 and to the Audit and Risk Committee meeting today. A further update will be included in the deliberations report for the 2020/21 Annual Plan.

Economic Development and Tourism

3.4 The effects of the COVID-19 emergency on the economy, including the tourism sector, are significant and will be long lasting. Immediate actions following the central government lockdown included closing the i-Site for the foreseeable future, redirecting Nelson Regional Development Agency (NRDA) and Council resources to support businesses, and developing a response and recovery plan - in conjunction with the business community and the Nelson Tasman Chamber of Commerce.

The initial response and recovery work has been managed by the Emergency Operations Centre (EOC) under four work streams: economic; social/cultural; natural environment; and built environment. The majority of the work has been to provide economic and social support.

At an appropriate time the work directly under the EOC will be reduced and responsibilities transferred to other agencies. In particular the economic and social recovery work will continue for a significant period of time. To manage the economic recovery activity a new project plan, Project Kōkiri, is being developed. This plan will include objectives and projects to support the Nelson/Tasman region’s COVID-19 recovery. Further information on Project Kōkiri will be brought to Council once it is available.

3.5 The NRDA Statement of Intent report on the agenda for this meeting includes consideration of changes to the focus areas for this organisation, including Project Kōkiri.

Events

3.6 Adjustments to events funding were discussed by Council on 23 April and decisions on the events budgets will be made at the Annual Plan Deliberations meeting. At the Council meeting there was support for the following Event Fund budgets managed by the Event Development Committee for 2020/21:

3.6.1 Events Fund (economic) $200,000

3.6.2 Events Fund (community) $76,000

3.6.3 Venue Hire Fund $15,000

The budget for Council-supported events, which includes the Arts Festival and Light Nelson, is proposed to be reduced from $1.04m to $491,000. These events budgets are managed by the Community Services Committee.

3.7 The decision by central government to restrict both indoor and outdoor gatherings under Alert Level 2 to no more than 100 people (previous indications was that outdoor events would have a limit of 500) would suggest these budgets are appropriate. Central government has also stated that large gatherings are a high risk factor for COVID-19 and therefore an assumption is that large scale events will not be allowed until the risks of COVID-19 have significantly reduced.

Governance of Council Controlled Organisations, Council Controlled Trading Organisations, and Council Organisations

3.8 Reports are included in this meeting’s agenda that provide updates on the impact of COVID-19 for the following organisations:

3.8.1 Nelmac Limited

3.8.2 Nelson Regional Development Agency

3.8.3 The Bishop Suter Trust

The immediate financial impact of COVID-19 on these organisations will need to be considered by Council as part of the Annual Plan decision making process. Although their actual results will not become clear until later in the 2020/21 year.

Council Property

Council noted on 9 April 2020 the following decisions made by the Chief Executive to grant a three month waiver starting 1 April 2020 for:

· Rental and outgoings for tourism and hospitality tenants/licensees holding Council leases and licences; and

· Rental for community tenants holding leases and licences; and

· that the Chief Executive will consider any requests from other tenants/licence holders including taking into account financial hardship.

Performance measures

3.9 The quarterly reports, which include up-to-date information on performance measures have been deferred for one quarter. However, some performance measures for 2019/20, particularly those related to visitor numbers to CCO facilities and economic performance will not be met this year. Other measures may not be comparable to previous years. Officers will report on actual results as part of the Annual Report process.

4. Conclusion

4.1 It is too early to forecast the impact across all of the Committee’s responsibilities as a result of COVID-19. Further information will be provided to subsequent meetings and through the Annual Plan deliberations meeting.

Author: Mark Tregurtha, Manager Strategy

Attachments

Nil

Item 14: Policy review: Appointments of directors/trustees to Council's Council Controlled Organisations and Council Controlled Trading Organisations

Governance and Finance Committee

21 May 2020

REPORT R14809

Policy review: Appointments of directors/trustees to Council's Council Controlled Organisations and Council Controlled Trading Organisations

1. Purpose of Report

1.1 To consider an amendment to the Nelson City Council Policy for the Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (the Policy) to allow councillors to apply to be directors/trustees through an external recruitment process.

2. Recommendation

That the Governance and Finance Committee

1. Receives the report Policy review: Appointments of directors/trustees to Council's Council Controlled Organisations and Council Controlled Trading Organisations(R14809) and its attachments (A284857) and (A2354796); and

2. Confirms the current policy for Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (A284857).

3. Background

3.1 Under s57 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 s57(a) and (b) requirements - Council has a separate policy for remuneration [s57(c)].

3.2 The Policy covers the Nelson City Council appointment and re-appointment process for directors/trustees of organisations such as Nelmac Ltd, the Nelson Regional Development Agency and the Bishop Suter Trust. It also covers the Nelson City Council appointment of one director on each of Port Nelson Limited and Airport Limited. Joint appointments are covered by a separate joint policy.

3.3 The Policy was last reviewed in 2018, and is scheduled for review every three years.

3.4 The Mayor’s Report at the Council meeting 13 February 2020 highlighted that the policy would be brought back for consideration about whether the policy should bar elected members from applying to a recruitment process and having the opportunity to be selected on merit.

4. Discussion

4.1 Section 8 of the Policy (Attachment 1) was added in December 2011 to align with the Joint appointment policy and states the following:

8. Appointment of staff members or Elected Members as Directors/Trustees

8.1. No staff member or elected member of Council may be appointed as a Director/Trustee, except in a temporary role and where good reason exists to do so. Any report recommending the appointment or reappointment of a staff member or elected member in a temporary role must clearly explain the reasons for doing so.

8.2. Any staff member or elected member serving as a Director/Trustee in a temporary role will not be eligible for any additional remuneration.

4.2 The current policy supports the independence of each organisation’s Governing Board decision-making process and prevents elected members from being placed in a position that could potentially lead to a conflict of interest, or having or being seen to have a pre-determined view on any matter. Given all of the entities are located in the Nelson City Council boundaries conflicts of interest could well arise. An elected official, when acting as a director, is solely responsible for advancing the interests of the company. These interests may at times be in direct conflict to Council policy or interests.

4.3 The separation between Directors/Trustees and staff members and elected members also allows elected members the opportunity to assess the performance of the Governing Boards in a fair and independent manner.

4.4 In 2015, the Controller and Auditor General issued guidance on the governance and accountability of Council Controlled Organisations (CCOs). Entitled “Governance and Accountability of Council Controlled Organisations”, the report on page 32 and 33, in Part 5 “Appointing directors” provides authoritative advice for councillors when considering updating the policy and the decision to allow for the appointment of elected members to boards (see attachment 2, A2354796).

4.5 The Office of the Auditor-General recognised that there may be good reasons for giving consideration to the appointment of elected members, but also noted that “there is an inherent conflict between a councillor-director’s obligations to the Council and their community and their obligations to the subsidiary”.

4.6 The Institute of Director’s ‘Four Pillars of Governance’ also recognises the difficulties that arise in a situations where directors have competing interests which may interfere with the director’s fundamental duty to act in good faith and in what they believe to be the best interests of the company. “Put simply… (t)he conflict exists simply because the director is in a position of wearing two hats, giving them an incentive to act otherwise than in the company’s interests, whether or not, in fact, they do (or think they are).”

4.7 It is possible to carefully manage conflicts of interest, and in the Council setting these are generally managed by maintaining an in-depth register of elected member interests, and by elected members physically removing themselves from a meeting when any matter in which they have an interest is discussed. Council’s expectation is that its CCOs and CCTOs would also manage the potential interests of any directors in a rigorous manner. In these circumstances, there is a potential for elected member-directors to find themselves unable to discuss particular matters on either the Council side or the CCO/CCTO side, for example where Council funding of a particular matter is at stake, or where the CCO/CCTO may be considering a fundamental strategic change.

4.8 Council has close relationships with their CCOs/CCTOs where shareholder expectations are clearly set through the Letter of Expectation and Statement of Intent process. Performance against these expectations are managed closely and the Council has regular strategic presentations from the Boards. Officers consider that ensuring these close relationships are maintained, is a better way of achieving all the ‘pros’ highlighted by the Auditor General without putting anyone in a conflict of interest position through Board memberships.

4.9 If Council considers that elected members should be able to apply for directorships of CCOs/CCTOs, it is important that they do so through an open competitive recruitment round, as proposed by the Office of the Auditor-General’s guide (Attachment 2). Through this process, any suggestion of ‘political appointments’ can be avoided.

4.10 If Council wants to amend the current policy to allow elected members to apply for directorships of CCOs/CCTOs this can be achieved by removing the words ‘elected members’ from Section 8 of the policy. In which case the resolution would be:

Amends the current Nelson City Council policy for Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations (A284857) to remove the words ‘elected members’ from Section 8.

4.11 Officers consider it is still important not have staff appointments except on a temporary basis and where good reason exists.

5. Options

5.1 The Committee can either confirm the current policy in full, amend section 8 or request further changes.

Option 1: Confirms the current policy
Advantages	· No conflicts of interest · No perception of ‘political’ appointments
Risks and Disadvantages	· Councillors who believe they have the skills don’t have the opportunity to apply for NCC directorships
Option 2: Approve changes to the current policy to allow elected members to apply for directorships of CCOs/CCTOs through an open competitive process
Advantages	· Gives Committee opportunity to amend policy
Risks and Disadvantages	· Conflicts of interests could well occur · Perception of ‘political’ appointment
Option 3: Request further changes to the policy
Advantages	· Gives Committee opportunity to amend policy
Risks and Disadvantages	· Significant changes may have unintended consequences when applied in practice

6. Conclusion

6.1 Council must have a policy on appointment of directors/trustees to Council Controlled Organisations. The Mayor has requested the current policy is reviewed.

Author: Nikki Harrison, Group Manager Corporate Services

Attachments

Attachment 1: A284857 - Policy on appointment of directors/trustees for NCC CCOs/CCTOs ⇩

Attachment 2: A2354796 - Extract from the Office of the Auditor General - Councillors as Directors of CCOs ⇩

Important considerations for decision making

1. Fit with Purpose of Local Government

This Policy is a statutory requirement.

2. Consistency with Community Outcomes and Council Policy

This Policy contributes to the outcome ‘Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement’.

3. Risk

If the current policy is amended to allow elected members to apply through a contested open process as directors of NCC CCOs/CCTOs conflicts of interest will occur which will need to be carefully managed.

4. Financial impact

None.

5. Degree of significance and level of engagement

Transparent processes and avoidance of conflicts of interest are important issues, however the OAG contemplates both approaches to this policy, so the significance is low and no engagement has been undertaken.

6. Climate Impact

N/A

7. Inclusion of Māori in the decision making process

No engagement with Māori has been undertaken in preparing this report.

8. Delegations

The Governance and Finance Committee has the following delegations to consider [subject]

Areas of Responsibility:

· Governance of Nelson City Council Controlled Organisations, Nelson City Council Controlled Trading Organisations, and Council Organisations

Delegations:

· Developing, approving, monitoring and reviewing policies and plans, including activity management plans