Notice of the ordinary meeting of the
Governance and Finance Committee
Kōmiti Mana Ārahi, Ahumoni Hoki
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: 2
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
Governance and
Finance Committee
27
August 2020
Page
No.
Karakia Timatanga
1. Apologies
1.1 An
apology has been received from Councillor Fulton
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 21
May 2020 2 - 2
Document number M9874
Recommendation
|
That the Governance and Finance Committee
1. Confirms the minutes of the
meeting of the Governance and Finance Committee, held on 21 May 2020, as a
true and correct record.
|
6. Recommendations from
Committees
6.1 Audit
and Risk Subcommittee - 21 May 2020
6.1.1 Draft
Internal Audit Plan for year to 30 June 2021
|
|
That
the Governance and Finance Committee
1. Approves
the Draft Annual Internal Audit Plan for the year to 30 June 2021 (A2357411).
|
6.2 Audit and Risk Subcommittee -
11 August 2020
6.2.1 Bad
Debt Writeoff - Year Ending 30 June 2020
|
|
That the Governance and Finance
1. Approves the balance of
$20,462.37 excluding GST owing by Concrete & Metals Ltd be written off as
at 30 June 2020.
|
7. Chairperson's Report 2 - 2
Document number R18125
Recommendation
|
That
the Governance and Finance Committee
1. Receives
the report Chairperson's Report (R18125).
|
8. Nelson Regional
Development Agency Statement of Intent 2020/21 2 - 2
Document number R18169
Recommendation
|
That
the Governance and Finance Committee
1. Receives
the report Nelson Regional Development Agency Statement of Intent 2020/21
(R18169) and its
attachment (A2434416); and
2. Agrees that the Nelson
Regional Development Agency Statement of Intent 2020/21 meets Council’s
expectations and is approved as the final Statement of Intent for 2020/21.
|
9. Carry Forwards
2019/20 2 - 2
Document number R18189
Recommendation
|
That
the Governance and Finance Committee
1. Receives
the report Carry Forwards 2019/20 (R18189)
and its attachment (A2436022).
|
Recommendation to Council
|
That the Council
1. Approves
the carry forward of $1.3 million unspent capital budget for use in 2020/21;
and
2. Notes
that this is in addition to the carry forward of $7.8 million approved during
the 2020/21 Annual Plan, taking the total carry forward to $9.1 million; and
3. Approves
the carry forward of $73,000 unspent capital budget to future years, for
consideration in the Long Term Plan 2021-31; and
4. Notes
total savings and reallocations in 2019/20 capital expenditure of $1.0
million including staff time; and
5. Notes that the total 2020/21 capital budget (including staff
costs and excluding consolidations and vested assets) will be adjusted by
these resolutions from a total of $57.1 million to a total of $58.4 million;
and
6. Approves the carry
forward of $122,000 unspent operating budget for use in 2020/21.
|
10. Governance and Finance
Committee End of Year Report to 30 June 2020 2 - 2
Document number R18178
Recommendation
|
That
the Governance and Finance Committee
1. Receives
the report Governance and Finance Committee End of Year Report to 30 June
2020 (R18178) and its
attachments (A2434210, A2429786, A2429702, A2429514, and A2445782);
|
11. Bishop Suter Trust - Adoption
of Final Statement of Intent 2 - 2
Document number R18092
Recommendation
|
That
the Governance and Finance Committee
1. Receives
the report Bishop Suter Trust - Adoption of Final Statement of Intent (R18092) and its attachments (A2315613 and
A2351670); and
2. Notes the delivery of the
Bishop Suter Trust’s final Statement of Intent 2020/25 as required
under the Local Government Act 2002; and
3. Approves the final
Statement of Intent of the Bishop Suter Trust for 1 July 2020 to 30 June
2025.
|
CONFIDENTIAL Business
12. Exclusion
of the Public
Recommendation
|
That
the Governance and Finance Committee
Confirms, in accordance with sections 48(5) and 48(6) of the Local
Government Official Information and Meetings Act 1987, that representatives
of the Bishop Suter Trust remain after the public has been excluded, for Item
2 of the Confidential agenda (The Bishop Suter Trust - Trustee Rotation and
Remuneration), as they have knowledge relating to that matter 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 - 21 May 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
·
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
|
The Bishop Suter Trust - Trustee Rotation and
Remuneration
|
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)(i)
To enable the local
authority to carry on, without prejudice or disadvantage, negotiations
(including commercial and industrial negotiations)
|
|
3
|
Director reappointment for Nelson Airport Limited
|
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
|
Director reappointment for Port Nelson Limited
|
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
|
Nelmac Limited final 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)
|
|
6
|
Directors remuneration 2020 - Nelmac Limited
|
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)
|
Karakia Whakamutunga
Governance and Finance Committee
Minutes - 21 May 2020
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: Chief Executive (P Dougherty, 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), Team Leader Governance (R Byrne) and Governance
Adviser (E Stephenson)
Apologies : Nil
Karakia
Timatanga
The
Chairperson gave the opening karakia.
1. Apologies
There were no apologies.
2. Confirmation of
Order of Business
The Chairperson advised that the
Nelson Regional Development Agency - Statement of Expectation 2020/21 and
update on review of Nelson Regional Development Agency operations report would
be considered as the last item in the open agenda.
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 27
February 2020
Document number M6721, agenda
pages 9 - 13 refer.
|
Resolved GF/2020/009
|
|
|
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.
|
|
O'Neill-Stevens/Bowater Carried
|
6 Chairperson's
Report
|
The Chairperson presented her
report (A2387481), which had been distributed previously.
|
|
Resolved GF/2020/010
|
|
|
That the Governance and Finance Committee
1. Receives the
Chairperson’s Report (A2387481) .
|
|
Lawrey/McGurk Carried
|
|
|
Attachments
1 A2387481 -
Governance and Finance Committee Chairperson's Report 21 May 2020
|
7. 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 provided a PowerPoint presentation and answered
questions regarding staff morale, project-based funding, online teaching and
events and the date of the Centre’s AGM.
Her Worship the Mayor said she
would arrange for Council’s Communications team to contact the Centre
to help them make connections.
|
|
|
|
|
|
Attachments
1 A 2389140 -
Nelson Centre of Musical Arts PowerPoint Presentation
|
7. Bishop Suter Trust -
Strategic Presentation
Julie Catchpole, Suter Director,
accompanied by Jeff Morris, Suter Commercial Manager, and representatives of
the Bishop Suter Trust gave a strategic presentation on the Bishop Suter Trust.
They noted that much had changed from its six monthly review because of the
impact of COVID-19. The Trust’s collection was developing and they were
hoping to make it available online and play their part to rebuild the economy.
8. The Bishop Suter
Trust Half Year Performance Report to 31 December 2019 and Draft Statement of
Intent 2020/2025
Document number R15859, agenda
pages 165 - 220 refer.
Julie Catchpole, Suter Director,
accompanied by Jeff Morris, Suter Commercial Manager, and representatives of
the Bishop Suter Trust answered questions regarding conversations with staff on
the Community Arts Hub; access to the government subsidy and other funding; budget
reforecasting; the number of days the Museum was open for; opportunities to
build local visitor numbers and measuring carbon emissions and reduction.
Councillor Noonan, seconded by
Councillor Edgar moved the officer’s 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 Statement
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
a) requests the Board considers …
|
|
Noonan/Edgar
|
Discussion took place on the
Committee’s feedback on the Statement of Intent and it was agreed that
Council’s expectations should be more clearly addressed and a timeline around
measurement of carbon emissions and reduction be included in the Statement of
Intent. The motion was amended with the agreement of the mover and seconder.
Acting Group Manager Community Services, Mark
Preston-Thomas, was asked to give the following feedback to the Trust:
· There was a lack
of information relating to governance succession
· A request for
confirmation that staff were paid the living wage
· The cost of solar
panel installation and additional funding required.
|
Resolved GF/2020/011
|
|
|
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 Statement
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) requests the Board better
reflects the Statement of Expectation and considers including a timeline
around measurement of carbon emissions and reduction in the Statement of
Intent.
|
|
Noonan/Edgar Carried
|
The meeting was adjourned from
10.31a.m. until 10.35a.m. at which time Her Worship the Mayor left the meeting.
Her Worship the Mayor returned to
the meeting at 10.39a.m.
9. The Bishop Suter
Trust - COVID-19
Document number R17021, agenda
pages 221 - 224 refer.
Following discussion, Acting
Group Manager Community Services, Mark Preston-Thomas, confirmed that revised
financials would be provided for the final Statement of Intent 2020/25.
|
Resolved GF/2020/012
|
|
|
That
the Governance and Finance Committee
1. Receives
the report The Bishop Suter Trust - COVID-19 (R17021) and its attachment (A2381965).
|
|
Fulton/Rainey Carried
|
10. COVID-19 Update Report -
Impacts on Governance and Finance Activities
Document number R16982, agenda
pages 225 - 228 refer.
Her Worship the Mayor commented
on the lack of financial reporting in the agenda and suggested establishing a
regular update briefing for all Elected Members. She noted that informal
discussions had been taking place with the Chair and Deputy Chair of the Audit
and Risk Subcommittee and felt it would be useful to continue with those and
then from that, establish a briefing paper on issues to allow ongoing
governance monitoring and oversight.
It was noted that more
information on events funding and rates income would be useful before Annual
Plan Deliberations.
|
Resolved GF/2020/013
|
|
|
That
the Governance and Finance Committee
1. Receives
the report COVID-19 Update Report - Impacts on Governance and Finance
Activities (R16982).
|
|
McGurk/O'Neill-Stevens Carried
|
11. Policy review: Appointments of
directors/trustees to Council's Council Controlled Organisations and Council
Controlled Trading Organisations
Document number R14809, agenda
pages 229 - 242 refer.
Group Manager Corporate Services,
Nikki Harrison, presented the report.
Discussion took place on best
practice and conflicts of interest relating to the appointment of Elected
Members to boards and Her Worship the Mayor provided background on the issue.
The recommendation was moved by
Councillor Rainey and seconded by Councillor Courtney.
|
|
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).
|
|
Rainey/Courtney
|
Further discussion took place
regarding the ability to appoint the best person for the role, reputational
risk, public perception and checks and balances in the recruitment process. The
value of alignment between Nelson City Council and Tasman District Council
(TDC) appointment policies was highlighted, noting the discussion at a recent
Joint Shareholders Committee meeting and a wider review of the policy was
suggested. Views for and against the motion were expressed and discussion took
place on the options.
An amendment to the motion was
indicated and the meeting was adjourned from 11.30a.m. until 11.43a.m. to allow
an amendment to be crafted.
Her Worship the Mayor reiterated
the need for alignment in both Councils’ policies to allow both Councils
to appoint to Port Nelson Ltd and the Nelson Airport Ltd and the value of a
wider review, which may highlight different changes to those proposed. It was
confirmed that the previous policy would remain in place if no decision was
made and the Mayor moved a motion, seconded by Councillor Edgar, to leave the
matter to lie on the table.
|
Item of business to lie on the table
GF/2020/014
|
|
|
That the
Governance and Finance Committee
1. Leaves
the item Policy review: Appointments of directors/trustees to Council's
Council Controlled Organisations and Council Controlled Trading Organisations
to lie on the table and not be further discussed at this meeting.
|
|
Her Worship the Mayor/Edgar
|
|
The motion was put and a division was called:
|
For
Her Worship the Mayor Reese
Mr Murray
Mr Peters
Cr Bowater
Cr Brand
Cr Edgar
Cr Fulton
Cr McGurk
Cr Noonan
|
Against
Cr Lawrey
Cr O'Neill-Stevens
Cr Rainey
Cr Sanson (Chairperson)
Cr Skinner
|
Abstained
Cr Courtney
|
The motion was carried 9 - 5.
|
12. Nelmac Limited Half yearly
report to 31 December 2019
Document number R14845, agenda
pages 243 - 251 refer.
|
Resolved GF/2020/015
|
|
|
That
the Governance and Finance Committee
1. Receives the report Nelmac Limited Half yearly
report to 31 December 2019 (R14845)
and its attachment (A2352112).
|
|
O'Neill-Stevens/Skinner Carried
|
13. Nelson Regional Development
Agency - half yearly report to 31 December 2019 (Agenda Item 7)
Document number R15887, agenda
pages 14 - 29 refer.
|
Resolved GF/2020/016
|
|
|
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).
|
|
Edgar/Bowater Carried
|
14. Nelson Regional Development
Agency - Statement of Expectation 2020/21 and update on review of Nelson
Regional Development Agency operations (Agenda Item 8)
Document number R13760, agenda
pages 30 - 164 refer.
The meeting was adjourned from
12.06p.m. to 12.11p.m.
Meg Matthews, Nelson Regional
Development Agency (NRDA) Chairperson, and Mark Rawson, NRDA CEO, were present
for this item.
Manager Strategy, Mark Tregurtha,
presented the report, noting that a review of the NRDA that had been undertaken
as part of the Annual Plan, had made a number of recommendations and that as a
result of COVID-19 there may be changes to its work programme. The review did
not detect any major deficiencies, although it said the current Statement of
Expectation could be more focused and it highlighted the importance of working
with key partners Tasman District Council and iwi.
Ms Matthews and Mr Rawson
answered questions regarding key recommendations in the report, noting that
Project Kōkiri would bridge the gap in strategic alignment via a planned
annual programme of workshops and that the COVID-19 emergency had meant
rescheduling of the workshops. Discussion took place regarding the wisdom of
having Statement of Expectation discussions prior to discussion with key
partners.
It was clarified that there were
no penalties for not meeting statutory Statement of Intent timeframes and the
need for alignment, flexibility and responsiveness and a sustainable funding
horizon was reiterated, together with the seriousness of the economic impact of
COVID-19, with the NRDA needing to be well positioned for the new reality. The
importance of alignment and doing the best job for both councils was
reiterated, together with the challenges facing the NRDA and the region.
There was further discussion and
questions regarding the NRDA’s budget shortfall, sustainability, capacity
to facilitate delivery, other funding avenues, the shift from response to
longer term recovery and the key areas of Project Kōkiri.
15. Exclusion
of the Public
Rob Gunn, Nelmac Ltd Chair, and
Jane Sheard, Nelmac Ltd CEO, were in attendance for Items 2 and 3 (Nelmac six
monthly strategic presentation and Nelmac Limited draft Statement of Intent
2020/21) and Meg Matthews, Nelson Regional Development Agency Chair and Mark Lawson
Nelson Regional Development Agency CEO, for Item 8 (Nelson Regional Development
Agency - Statement of Expectation 2020/21 and update on review of Nelson
Regional Development Agency operations) of the Confidential agenda to answer
questions and, accordingly, the following resolution was required to be passed:
|
Resolved GF/2020/017
|
|
|
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) and for Meg Matthews,
Nelson Regional Development Agency Chair and Mark Lawson Nelson Regional
Development Agency CEO, for Item 8 (Nelson Regional Development Agency -
Statement of Expectation 2020/21 and update on review of Nelson Regional
Development Agency operations), as they have knowledge relating to those
matters that will assist the meeting.
|
|
Bowater/O'Neill-Stevens Carried
|
|
Resolved GF/2020/018
|
|
|
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:
|
|
Bowater/O'Neill-Stevens 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 - 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
|
|
8
|
Nelson Regional Development Agency - Statement of
Expectation 2020/21 and update on review of Nelson Regional Development
Agency operations
|
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
|
The meeting went into confidential session at 1.22p.m.
and resumed in public session at 3.59p.m.
Following questions and discussion in the
confidential section of the meeting, the Committee made the following decision
in open meeting.
8. Nelson
Regional Development Agency - Statement of Expectation 2020/21 and update on
review of Nelson Regional Development Agency operations
|
Item of business to lie on the table
|
|
Resolved GF/2020/024
|
|
|
That the
Governance and Finance Committee
1. Leaves
the item Nelson Regional Development Agency - Statement of Expectation
2020/21 and update on review of Nelson Regional Development Agency operations
to lie on the table and not be further discussed at this meeting.
|
|
Edgar/Brand Carried
|
Karakia
Whakamutunga
The Chairperson gave the closing karakia.
Restatements
It was resolved while the public was
excluded:
|
Extension of Meeting Time
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|
|
That the
Governance and Finance Committee
1. Extends
the meeting time beyond six hours, pursuant to Standing Order 4.2.
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3
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PUBLIC EXCLUDED: Nelson Centre of Musical Arts -
Appointment of Trustees
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|
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That the Governance and Finance
Committee
4. Agrees that the
decisions only be made publicly available, once the Trustees have been
notified; and
5. Agrees that Report (R9958) and
Attachment A2358179 remain confidential at this time.
|
There being no further business the meeting ended at 4.03p.m.
Confirmed as a correct record of proceedings:
Chairperson
Date
Item 7: Chairperson's
Report
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Governance and Finance Committee
27 August 2020
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REPORT R18125
Chairperson's
Report
1.
Purpose of Report
1.1
In accordance with 5.2.2 of Council’s Delegations Register, to
report back to the Committee on a matter within its areas of responsibility,
that was considered directly by Council, at its 30 June 2020 meeting. This is
for information only.
1.2
To update the Committee on matters relating to its areas of
responsibility.
2. Recommendation
|
That the Governance and Finance Committee
1. Receives
the report Chairperson's Report (R18125).
|
3. Background
Matter
considered by Council
3.1 The
Governance and Finance Committee’s areas of responsibility include
business, economic development and tourism in Nelson.
3.2 However,
because of timing, the matter was considered by Council, in accordance with the
Delegations Register, as below:
5.2.2 On
the recommendation of the Chief Executive, and with the agreement of the Chair
of the relevant committee, subcommittee or subordinate decision-making body and
Mayor, matters within the area of responsibility of a particular committee,
subcommittee or subordinate decision-making body may be considered directly by
Council instead. If this occurs, the Chair of the relevant committee,
subcommittee or subordinate decision-making body will report to the following meeting
of the committee, subcommittee or subordinate decision-making body regarding
the reason for doing so, and the outcome of the matter at the Council meeting.
3.3 The 30 June 2020
Council meeting resolved:
Resolved
CL/2020/098
That the Council
1. Receives
the report Contract for Services between Nelson City Council and Uniquely
Nelson (R10407) and its
attachments (A2181631 and A2247471); and
2. Agrees to a change to a contract
for services for the contractual relationship between Council and Uniquely
Nelson; and
3. Notes that the existing Memorandum
of Understanding between Council and Uniquely Nelson will cease to apply from
the date that the new contract is signed.
Edgar/Bowater
Carried
Matters
relating to the Committee’s areas of responsibility
3.4 The
agenda reports cover Governance and Finance activities in some detail, so this
is just to give you a snapshot and some personal insights.
Quarter
Four Focus
3.5 Through
May/June we were working on the COVID-19 Annual Plan, adopting this in July
with zero rates increase.
3.6 Interim
monthly financial reporting has been initiated through the Audit and Risk
Committee to support governance oversight of financial matters during this
COVID-19 period.
3.7 Project
Kōkiri was launched - a dynamic economic recovery plan for our region -
and a significant collaboration between Iwi, both councils, Nelson Regional
Development Agency (NRDA), Nelson Tasman Chamber of Commerce, locally-based
Government agencies and businesses. This culminated in NRDA receiving
government funding to support this crucial work. https://projectkokiri.nz/
3.8 Nelson
Airport won the Nelson & Marlborough Architecture Award in the Commercial
category - wonderful recognition of a spectacular building showcasing
locally-sourced sustainable building materials - and an exceptional team of
local people who brought the designs of Studio Pacific Architecture to life.
Congratulations to all involved.
3.9 Through
the Annual Plan, Council committed to adopting a revised Procurement Policy
that considers Broader Outcomes in line with government policy recommendations.
https://www.procurement.govt.nz/broader-outcomes/
3.10 The
CEO, Deputy Mayor, Cr Fulton and I attended a Social Procurement workshop
hosted by Social Impact Nelson Tasman, aimed at helping the private and public
sector understand how procurement decisions can have a positive impact and
support better outcomes for the community.
3.11 A
notable example of this, is that OCS cleaning staff working to maintain council
facilities all across the city - working days/nights/weekends - are now assured
a living wage.
3.12 Council
is reviewing its exotic and indigenous forests, parks and reserves to identify
whether there are areas that may be eligible for inclusion in the Emissions
Trading Scheme. If eligible, carbon credits earned from publicly owned forests
and reserves could be used to partially offset the significant landfill
emissions liability incurred each year.
Personal
Insights
3.13 As
we approach the end of the first year around the Nelson City Council
decision-making table (for a few of us), I have been reflecting on the role so
far.
3.14 One
of the key things that stands out for me is the passion and commitment of
everyone around this table and each person working within this organisation -
these are good people - absolutely committed to working for our community. And
working hard they have been, all through the lockdown, and many without time
off since mid-March. I would like to take a moment to acknowledge all the staff
at Nelson City Council, and elected members, and thank you for all you are
doing to support the smooth running of our city and the wellbeing of our
community - ngā mihi maioha.
3.15 For
some months, when people have asked me how the role of councillor is going, I
have simply said “interesting, a bit tough”. But in recent weeks,
after seeking guidance from the incredibly experienced Local Government NZ
team, I have a greater understanding of the role - of being elected by many to
serve all of the community - and a renewed sense of purpose.
3.16 We
often talk about needing to bring the community along with us on the journey.
Now more than ever, this is crucial. As a community we are facing economic
impacts from COVID-19, long-term systemic inequality, significant degradation
of our natural environments and biodiversity loss. In coming years, we will
need to be adaptable and responsive to the impacts from climate change. For our
community to be strong, resilient and to thrive in the face of these
challenges, I believe we need to have a high level of trust and confidence in
the community’s relationship with local government - we need to be doing
all we can to strengthen this.
3.17 He waka eke noa – we are
all in this together.
Author: Rachel
Sanson, Chairperson
Attachments
Nil
Item 8: Nelson Regional
Development Agency Statement of Intent 2020/21
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|
Governance and Finance Committee
27 August 2020
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REPORT R18169
Nelson
Regional Development Agency Statement of Intent 2020/21
1. Purpose
of Report
1.1 To
seek Council approval of the Nelson Regional Development Agency (NRDA)
Statement of Intent 2020/21.
2. Summary
2.1 The
2020/21 Statement of Intent (SOI) has been developed within the context of the
economic impact of the COVID-19 pandemic. A collaborative economic
recovery and regeneration plan ‘Project Kōkiri’ has
been developed between Nelson City Council (NCC) and Tasman District Council
(TDC) councils, the NRDA, the Chamber of Commerce, iwi and other key public and
private stakeholders. The work programme and funding of the SOI reflects
the priorities that have been agreed under Project Kōkiri.
2.2 An
independent review of NRDA operations identified that there is a need for
improved alignment and communication between councils and NRDA regarding
economic development objectives for the region and the value that NRDA
delivers. The review also recommended that steps be taken to secure
NRDA’s financial sustainability. This work will be prioritised in
the lead up to the next Statement of Expectation and Statement of Intent.
3. Recommendation
|
That the Governance and Finance Committee
1. Receives
the report Nelson Regional Development Agency Statement of Intent 2020/21 (R18169) and its attachment (A2434416); and
2. Agrees that the Nelson
Regional Development Agency Statement of Intent 2020/21 meets Council’s
expectations and is approved as the final Statement of Intent for 2020/21.
|
4. Background
4.1 The NRDA, along with the
other Council Controlled Organisations (CCO), must submit a draft Statement of
Intent indicating its proposed activities for the following year.
Schedule 8 of the Local Government Act outlines the purpose of a SOI, what is
to be included and how it is to be approved. The draft SOI 2020/21 prepared by
the NRDA, in collaboration with NCC, is attached (Attachment 1). The SOI,
as supplied by the NRDA, is compliant.
4.2 The
NRDA Chair Meg Matthews, and Chief Executive, Mark Rawson, will be in
attendance at the meeting to answer any questions about the SOI.
4.3 A
draft Statement of Expectation (SOE) setting out Council’s expectations
on matters to be addressed in the draft SOI 2020/21 was considered by the
Governance and Finance Committee during the level 4 lockdown on the 21 May
2020. The Committee decided to not proceed with the draft SOE as its
content was overtaken by the effects of COVID-19 on the economy. Furthermore,
the process for developing Project Kōkiri took
into consideration the councils’ priorities for the work for the NRDA in
2020/21.
4.4 The
SOI for 2020/21 reflects the current economic situation facing Nelson Tasman as
a result of COVID-19. While the underlying purpose of the NRDA remains
the same with many similar areas of work, there is a notable difference in the
scope and scale of the work programme for 2020/21 in response to the impact of
COVID-19. This is likely to continue for the next 2-3 years and
potentially beyond as the CCO adjusts to provide the level and type of economic
development service required.
5. Discussion
Effect of COVID-19
5.1 The
global pandemic of COVID-19 will have significant and long-lasting impacts on
the economic development work of Council. The high degree of uncertainty
regarding future scenarios for how the pandemic will play out globally and in
New Zealand means that Council’s response will need to remain agile and
adaptive. COVID-19 was first and foremost a health crisis. However
the measures put in place globally to minimise this health crisis have resulted
in unprecedented disruption to global economic activity, including trade and
tourism.
5.2 New
Zealand and the Nelson region have not been immune to this disruption, with GDP
forecast to contract in 2020 by around 8%, and unemployment to rise to just
around 9%. While economic activity in New Zealand is estimated to be
around 96% of normal GDP levels under ‘Level 1’, closure of the
borders to tourism and a global economic recession will continue to impact
Nelson over the medium term.
Review of NRDA
5.3 Council
commissioned a review of NRDA from Martin Jenkins in 2019 to gain a better
understanding of the services being provided by the NRDA and any areas for
potential improvement. The review provided three main recommendations:
5.3.1 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 councils’ objectives.
5.3.2 Clarify and convey the
value of the NRDA: Enhance the way the value of the NRDA is
communicated. This should reflect the agreed strategic priorities, and a
performance management framework to monitor progress. There is a need for
a stakeholder engagement plan, a restructured SOI, and a new reporting
framework to NCC and TDC.
5.3.3 Secure sustainability of
the NRDA: Take steps to secure the financial 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.
5.4 The review
made specific recommendations to improve the content and structure of the SOE
and SOI. These include greater clarity in the SOE of the functions and
services the NRDA is expected to deliver and a stronger performance framework
within the SOI.
5.5 Further
consideration of the review findings and recommendations, including how these
might best be implemented is still required. Given the priority over the
last quarter has been to focus on the COVID-19 economic response, it has not
been possible to incorporate all the review’s recommendations into this
year’s SOI. NCC and TDC need to agree on a framework that provides
clear direction for the long term, medium term and short term outcomes that are
expected to be achieved through ongoing investment in economic development
through the NRDA. Economic development objectives will need to be
appropriate for the new landscape that exists post COVID-19.
5.6 Officers are
investigating the possibility of holding a series of workshops firstly between
NCC and TDC and then with NRDA to progress these recommendations. The aim
is to ensure that the next Statement of Expectation further reflects the
recommendations of the NRDA review as well as providing greater clarity of
expectations from the Councils.
5.7 In
2019/20 funding for NRDA was delivered through an integrated SOI for both
Nelson and Tasman councils and this will remain the case in 2020/21. TDC
has provided input into the 2020/21 SOI, and a separate funding arrangement
between the two councils sets out the terms of the TDC contribution.
Project
Kōkiri
5.8 The
two councils, alongside NRDA, the Chamber of Commerce, iwi and other
stakeholders came together to collaborate on the economic response, recovery
and regeneration through Project Kōkiri. Project Kōkiri is the
economic response and regeneration plan for Nelson Tasman and aims to achieve
the following outcomes:
5.8.1 Keeping
people employed in work and providing opportunities for training and
redeployment;
5.8.2 Focusing
on our strengths and areas of competitive advantage such as the oceans economy,
high value food and beverage, the growing Māori economy, and liveability;
5.8.3 Generating
export revenue to increase circulation of money in the local economy;
5.8.4 Supporting
organisations that will provide the greatest economic impact to our economy
through their own supply chains; and
5.8.5 Providing
local government stimulus through infrastructure projects.
5.9 Project
Kōkiri will be implemented in stages with initial response work carrying
through until January 2021, a recovery stage through to December 2022, and then
moving into regeneration from 2023 onwards. The plan will need to adapt
to the changing needs of industry and business over this period, and reflect
the uneven impact of COVID-19 across various sectors. Efforts by the
Nelson Tasman Chamber of Commerce have been key in facilitating the connection
between business and NRDA to ensure that communication is timely and effective
throughout the response period. The Chamber is also leading on some of
the economic response actions, including the “We’ve Got This”
campaign.
5.10 Project
Kōkiri sets out the work programme of the NRDA and forms the basis of the
SOI for the 2020/21 year. As part of delivery of Project Kōkiri,
NRDA will provide a coordination role for other programme areas in addition to
business as usual. Each of its traditional work programme areas will be
adjusted to ensure that the investment is relevant for the current COVID-19
economic situation. The SOI sets out the following key work streams:
5.10.1 Targeted
business and innovation support
5.10.2 Capability
building and job creation
5.10.3 Business
and investment attraction
5.10.4 Stimulating
local spending
5.10.5 Local
government stimulus
5.10.6 Visitor
destination management
5.10.7 Regional
competitive advantage and regeneration initiatives
5.10.8 Project
Kōkiri management and operations
5.11 In
relation to risk management, the NRDA has outlined that it will take an
“agile and phased approach”. NRDA will adapt to the needs of
business throughout the response and recovery phases. A Leadership Group
made up of high level representatives across government and industry, chaired
by the Nelson Mayor; and an Action Team representing key government departments
in Nelson Tasman will guide decision making should any change in approach or
focus areas be required.
NRDA
and Project Kōkiri Budget
5.12 COVID-19
will have a significant effect on the activities and sources of funding of the
NRDA. The proposed NRDA budget of
$3.0 million for 2020/21 reflects its contribution to delivering Project
Kōkiri. This is approximately $700,000
above NRDA’s pre-COVID forecast budget for 2020-21. The updated
budget includes additional spending in some areas to adapt to the proposed
direction of a COVID-19 economic recovery:
5.12.1 Support of a targeted business recovery and
regeneration accelerator programme
5.12.2 Additional Workforce Development and labour market
coordination activity
5.12.3 Stimulating local spending and domestic visitation
activations and Visitor Destination Management
5.12.4 Additional stakeholder coordination, project pipeline
support, communications, and insights
5.13 In addition, private sector investment such as
tourism partnership programmes and tradeable income from the i-SITE is forecast
to be around $540,000 less in 2020/21 compared to 2019/20. The increased budget and reduction in income would
have resulted in an overall shortfall in funding to deliver the proposed
services in 2020/21 of approximately $1.0 million. However, central
government has recognised the expected shortfall in income for Economic
Development Agencies and Regional Tourism Organisations across the country and
has provided $700,000 to the NRDA as part of a nationwide $20 million support
package. This is in addition to the $490,000 pre-COVID NRDA budget from
central government.
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2019-20 (Budget)
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2020-21 (June Budget)
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2020-21 (August Budget)
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NCC Core funding
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$970,500
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$982,700
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$982,700
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TDC Core funding
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$300,000
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$303,000
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$303,000
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Central government Funding
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$345,000
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$490,000
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$490,000
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|
Private
sector/Trading/Other
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$620,800
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$73,900
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$73,900
|
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Total Income
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$2,236,300
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$1,849,600
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$1,849,600
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|
Operating Expenses
|
$2,200,000
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$2,549,600
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$3,049,900
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|
Budget Shortfall
|
|
$700,000
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$1,200,300
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|
NCC Project
Kōkiri contribution
|
|
Up to $350k depending on
central govt. funding.
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$250,000
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Central govt.
contribution
|
|
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$700,000
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Residual shortfall
|
|
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$250,300
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5.14 At
the Annual Plan deliberations meeting on 3 June 2020, Council agreed to make
provision for an increase in funding to NRDA of up to $350,000 to develop and
implement Project Kōkiri. At that time, the Project Kōkiri
budget shortfall was $700,000. Council agreed that $500,000 of this
shortfall should be met by local government and the other $200,000 was hoped to
be provided by central government. $250,000 of Council’s $350,000
provision was to cover the NCC half of local government funding, with $100,000
set aside in case central government funding was not secured. This
initial budget deficit was developed at very short notice and subsequently
increased to $1.2 million. Note that this higher figure includes discrete
tourism related projects of $200,000 that were developed as part of the funding
pitch to central government.
5.15 NRDA
has made a funding request to TDC for $250,000. TDC considered this
request at its 30 July 2020 Council meeting, and has decided to defer the
decision until 19 August when it is holding a workshop to identify cost savings
to assist with its zero rates increase for 2020/21. An update on the outcome of
this meeting will be provided at the Committee meeting.
5.16 NCC
would work with the NRDA to assess the impact that any ongoing budget shortfall
would have on the scope and scale of activities for 2020/21. If
additional funding is required, NRDA will need to make a specific request for
the uncommitted funding of $100,000 and this will need to be approved by
Council. Assurances will be sought from NRDA that all funding provided from
NCC to Project Kōkiri for 2020/21 will be focused on economic development
outcomes that benefit Nelson City.
5.17 Council
has allocated approximately $2.3 million towards economic development in the
2020/21 financial year covering items such as funding to NRDA, support to
additional large scale sport and entertainment events, the Contestable Events
Fund, support to Uniquely Nelson, and the Nelson Tasman Business Trust.
5.18 The
NRDA SOI budgets propose that additional funding will need be provided for the
following two financial years. NCC will work with NRDA and TDC to
identify and evaluate the most appropriate sources of funding or changes to the
mix of services purchased by the two councils to address this ongoing
shortfall.
6. Options
6.1 The
Committee can recommend approval of the SOI or can provide feedback to the NRDA
in respect of changes to the SOI.
7. Conclusion
7.1 Officers
believe that the draft SOI adequately aligns with Council expectations and can
be adopted as the final SOI for 2020/21.
Author: Jessica
Bensemann, Nelson Tasman Economic Portfolio Manager
Attachments
Attachment 1: A2434416
NRDA Statement of Intent 2020-21 ⇩
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Important considerations for decision making
|
|
1. Fit
with Purpose of Local Government
Section 64 of the Local Government Act requires the
adoption of a Statement of Intent for every CCO.
|
|
2. Consistency
with Community Outcomes and Council Policy
The recommendation aligns with the following
outcomes: ‘Our Council provides leadership and fosters partnerships, a
regional perspective, and community engagement’ and ‘Our
region is supported by an innovative and sustainable economy’
|
|
3. Risk
There is a large degree of uncertainty related to
international and national events that will have an impact on the economic
outlook and recovery for Nelson/Tasman. These risks need to be managed
on an ongoing basis and are built into the adaptive approach that is taken in
Project Kōkiri.
In particular, the
timing of borders reopening will greatly impact the ability of many business
in the tourism sector to survive through this period. This will impact
on how effective Project Kōkiri can be in supporting businesses and the
options available to promote Nelson as a destination beyond the domestic
market in 2020/21.
Aspects of Project
Kōkiri are dependent on the nature of central government funding support
that is made available for the COVID-19 recovery. This is currently
uncertain given the national elections will occur in September 2020.
Any new government priority areas and related funding announcements will not
be known until after this date.
Continued support from partners and stakeholders
such as councils and businesses is critical to the successful delivery of
Project Kōkiri and a comprehensive
communications plan.
|
|
4. Financial
impact
The $250,000 allocated for Project Kōkiri, and $100,000 in uncommitted funding
has been provided through the Annual Plan 2020/21 in addition to the annual
NCC core funding allocation of $880,000. As part of the Long Term Plan
process Council will need to assess whether or not additional funding can be
allocated in the next two financial years.
|
|
5. Degree
of significance and level of engagement
The adoption of the SOI is of low significance to
the community, business and iwi. Engagement has been carried out with
business and iwi during the development process of Project Kōkiri, and
key stakeholders will be involved on an ongoing basis through Project
Kōkiri leadership and management groups.
|
|
6. Climate
Impact
Project Kōkiri
acknowledges that climate change is one of the major risks facing the
region. Components of delivering on the necessary transition
towards a low carbon and more resilient economy will be factored in to the
work of the NRDA.
A number of key
activities to deliver in the areas of climate change and sustainability are
included in the SOI, such as the development of a low-carbon Destination
Management Plan, maintaining a strong dialogue with the Nelson Tasman
Businesses for Climate Change Action, and facilitating a climate change
transitions focused “build back better” workshop.
Guidelines for how
this will occur will be developed by the Project Kōkiri Action Team and signed off by the Project Kōkiri Leadership Team. The SOI outlines
some specific actions for how this process will be carried out.
|
|
7. Inclusion
of Māori in the decision making process
Iwi have been engaged as part of the development of
Project Kōkiri which has formed the basis of this report.
|
|
8. 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.
Areas of
Responsibility:
· Governance of Nelson City Council Controlled
Organisations, Nelson City Council Controlled Trading Organisations, and
Council Organisations
|
Item 8: Nelson Regional Development Agency Statement of Intent
2020/21: Attachment 1
Item 9: Carry Forwards
2019/20
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|
Governance and Finance Committee
27 August 2020
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REPORT R18189
Carry
Forwards 2019/20
1. Purpose
of Report
1.1 To
approve carry forward of unspent budget to the new financial year.
2. Summary
2.1 Invoice
processing is complete for the 2020/21 financial year and officers have
reviewed project expenditure in order to identify savings and consider whether
unspent budget is still required.
3. Recommendation
|
That the Governance and Finance Committee
1. Receives
the report Carry Forwards 2019/20 (R18189)
and its attachment (A2436022).
|
Recommendation to Council
|
That the
Council
1. Approves
the carry forward of $1.3 million unspent capital budget for use in 2020/21;
and
2. Notes
that this is in addition to the carry forward of $7.8 million approved during
the 2020/21 Annual Plan, taking the total carry forward to $9.1 million; and
3. Approves
the carry forward of $73,000 unspent capital budget to future years, for
consideration in the Long Term Plan 2021-31; and
4. Notes
total savings and reallocations in 2019/20 capital expenditure of $1.0
million including staff time; and
5. Notes that the total 2020/21 capital budget (including staff
costs and excluding consolidations and vested assets) will be adjusted by
these resolutions from a total of $57.1 million to a total of $58.4 million;
and
6. Approves
the carry forward of $122,000 unspent operating budget for use in 2020/21.
|
4. Background
4.1 The
capital programme for 2019/20, as agreed in the Annual Plan 2019/20, totalled
$43.4 million, including staff costs and excluding Nelson Regional Sewerage
Business Unit (NRSBU), Nelson Tasman Regional landfill and vested assets. All
figures quoted in this report are calculated on this basis.
4.2 The
addition of 2018/19 carry forwards, and other resolutions of Council over the
2019/20 year adjusted the total capital budget to $46.1 million.
4.3 The
2019/20 capital budgets were forecast quarterly throughout 2020 with a view to
what could realistically be achieved in the remainder of the financial year. In
light of the impacts of COVID-19, the capital budget was reforecast to $32.6
million in May 2020. The 2019/20 budget movements incorporated in the Annual
Plan 2020/21 were approved on adoption of the Annual Plan on 9 July 2020. In
particular, $7.8 million was carried forward from 2019/20 to 2020/21 during the
Annual Plan process.
4.4 Total
capital expenditure for the 2019/20 year was $30.8 million, $12.6 million less
than the adjusted Annual Plan 2019/20 budget of $43.4 million. Of this, $1.0
million has been identified as savings or reallocations.
4.5 April
2020 Capital Expenditure was 30% lower than March 2020 and 43% lower than April
2019.
4.6 Reasons
for capital carry forwards being requested include:
· COVID-19 delays
· alterations to the
phasing of multi-year projects
· reliance on
external funds
· delays created by
weather/season requirements, negotiations with external parties
· construction
delays
· lead time in
procuring materials and equipment
· projects running
behind time
4.7 Once
the 2019/20 year was closed for invoice processing, officers collated data
relating to the projects undertaken during the year, identifying variances
against the reforecast.
4.8 Project
managers were asked to identify which variances represented savings, and where
they wished to carry forward budget into 2020/21, or subsequent years, they
were asked to support their request.
4.9 The
capital expenditure programme will be re-assessed during Quarter 1 2020/21 to
gain a better understanding of projects that will not go ahead as planned in
2020/21.
5. Discussion
Capital savings and
reallocations
5.1 Officers
identified savings and reallocations of $1.0 million in capital expenditure
against the 2019/20 Annual Plan. In total, this saving will have a positive
impact on interest, depreciation and debt levels, in excess of that already
identified in the 2020/21 Annual Plan.
Capital
carry forwards
5.2 Officers
have requested that $1.3 million be carried forward. Of this, $1.3 million is
requested to be added to 2020/21 capital budgets, $968,000 of which directly
relates to COVID-19 delays, and $73,000 is requested to be carried forward to
future years.
5.3 A
breakdown of budget movements in the total 2019/20 capital budgets is provided
as Table 1.
5.4 Table
2 itemises capital projects with carry overs requested greater than $50,000.
These are new carry forwards which have been requested in addition to those
approved during the 2020/21 Annual Plan.
Operating
carry forwards
5.5 In
addition to the Capital carry forward requests, there are two Operating Expense
budgets, totalling $122,000, that have been requested by staff to carry forward
to 2020/21:
· Emergency Fund
(for COVID Recovery in community) $118,000
· Mayoral
Discretionary Fund $4,000 due to a delay in release of funds
6. Options
6.1 Council
officers support Option 1, approve the recommendations. Not approving the
recommendations would be problematic as the future scope of some of these
projects has been agreed through Committee and Council resolutions including
Annual and Long Term Plans prior to this meeting. Work has continued on these
projects based on those decisions.
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Option 1: Approve the
recommendations
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Advantages
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· Work
has continued on 2019/20 capital projects and costs have been incurred.
· The
carry forward spending is within previously approved budgets.
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Risks and Disadvantages
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· None
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Option 2: Approve carry
forward with exceptions
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Advantages
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· If
Council wished, it could remove some items from the list of budgets to be
carried forward.
· Savings
in future debt, depreciation, interest and maintenance costs would occur.
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Risks and Disadvantages
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· The
projects concerned would then not have sufficient budget to be completed.
· Council
does not have complete information through this report to fully inform such a
decision.
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7. Conclusion
7.1 An
analysis of capital expenditure against forecast for 2019/20 indicates:
· There are
savings and reallocations from the capital budget of $1.0 million compared to
the 2019/20 Annual Plan.
· Additional
capital budget of $1.3 million not spent should be carried forward; $1.3
million should be carried forward into 2020/21 and $73,000 should be carried
forward to future years.
· Operating
Expenses totalling $122,000 have been requested by staff to carry forward to
2020/21.
8. Next
Steps
8.1 Once
approved, budgets will be updated to reflect the approved resolutions.
Author: Clare
Knox, Manager Finance
Attachments
Attachment 1: A2436022 -
Carry Forward Report 2019/20 - Attachment 1 ⇩
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Important considerations for decision making
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1. Fit
with Purpose of Local Government
Approval of the recommendation will allow
progress/completion of approved projects. This will promote social, economic,
environmental and cultural economic well-being in the present and future
through employment and purchasing of goods and services to deliver public infrastructure
and community services.
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2. Consistency
with Community Outcomes and Council Policy
Approval of this recommendation will allow projects
approved in the Long Term Plan 2018-28, Annual Plan 2019/20, and subsequent
Council resolutions, to be delivered efficiently and cost effectively to
create good quality infrastructure, well-planned and sustainably managed
environments.
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3. Risk
Failure to
approve the recommendation will introduce risk (financial, contractor and
community relationships) which does not currently exist.
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4. Financial
impact
There is little financial impact from approving the
recommendation as budgets are already approved and funded.
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5. Degree
of significance and level of engagement
This matter is of low significance as budgets are already
approved and the recommendation confirms business as usual. Therefore no
engagement is required.
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6. Climate
Impact
None
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7. Inclusion
of Māori in the decision making process
No engagement with Māori has been undertaken in
preparing this report.
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· Delegations
The Governance and Finance Committee has the
following delegations to consider the 2019/20 Carry Forwards.
Areas of Responsibility:
· Council’s financial performance
Powers to Decide:
· Monitoring Council’s performance for the
committee’s areas of responsibility, including legislative
responsibilities and compliance requirements
Powers to Recommend:
· Matters that, under the Local Government Act 2002,
the operation of law or other legislation, Council is unable to delegate
· Unbudgeted expenditure relating to the areas of
responsibility, not included in the Long Term Plan or Annual Plan.
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Item 9: Carry Forwards 2019/20: Attachment 1
Item 10: Governance and
Finance Committee End of Year Report to 30 June 2020
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Governance and Finance Committee
27 August 2020
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REPORT R18178
Governance
and Finance Committee End of Year Report to 30 June 2020
1. Purpose
of Report
1.1 To
inform the Committee of the financial and non-financial results for the last
six months of 2019/20 for activities under its delegated authority. End of year
financial and non-financial results for these activities, and Council as a
whole, are also discussed.
1.2 To
highlight any material variations.
2. Recommendation
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That the Governance and Finance Committee
1. Receives
the report Governance and Finance Committee End of Year Report to 30 June
2020 (R18178) and its
attachments (A2434210, A2429786, A2429702, A2429514, and A2445782);
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3. Background
3.1 Quarterly
reports on performance are provided to each committee on the performance and
delivery of projects and activities within their areas of responsibility.
3.2 As
a result of the unprecedented disruption caused by the COVID-19 pandemic, it
was agreed (by the Chief Executive in discussion with the Mayor and committee
chairs) that the quarter three reports to committees would not be written, as
they would have provided little indication of how the year’s results
would track overall. Accordingly, this report covers six months –
including information from quarter three as well as quarter four’s full
‘end of year’ evaluation. Unless otherwise indicated, all
information is against operating budget, which is the
2019/20 Long Term Plan budget plus any carry forwards, plus or minus any other
additions or changes as approved by the Committee or Council.
3.3 The body of
this report is split into two sections. The first section (sections four to
nine) reports on Council activities within the Committee’s delegations
for the year, and the second section (sections 10 onwards) covers
Council’s overall financial performance. The whole of Council project
health summary reporting falls under the ‘risk’ category and goes
to the Audit and Risk Sub-committee.
3.4 There
are seven 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 2019/20, are multi-year projects with a budget over $1
million, or have been assessed to be of particular interest to the Committee.
Governance Activities
4. Key
developments for the six months to 30 June 2020
4.1 The
COVID-19 pandemic had a range of impacts on Governance and Finance activities
in 2019/20. These impacts were discussed in a report to the Committee on 21 May
2020.
4.2 Highlights
of the last six months include:
4.2.1 Immediately
transitioning over 270 Council staff to work remotely from the start of Alert
Level 4.
4.2.2 Working
to initiate a $200,000 Emergency Fund for community organisations.
4.2.3 Activating
the regional Emergency Operations Centre (EOC) for response and recovery work.
Council officers were seconded to work for the EOC.
4.2.4 Making
weekly payments to creditors to assist businesses with cash flow.
4.2.5 Providing
assistance to ratepayers struggling to pay their rates, through the rates
rebate scheme and payment plans.
4.2.6 Providing
support to Council lease and licence holders in the tourism and hospitality
sector, and community groups, with a three month waiver of rent and outgoings
until 30 June 2020.
4.3 The
Mayor and officers contributed to the development of Project Kōkiri, the
region’s economic recovery and regeneration plan. This included the
development and prioritisation of a list of ‘Shovel Ready’ projects
(together with Tasman District Council, NRDA, and the Chamber of Commerce),
that were put forward for central government consideration. Applications were
also put together for several Council projects associated with roading,
environmental jobs and the Stoke Hall upgrade to enable labour redeployment
outcomes. Some of these have been successfully funded, while others are still
awaiting decisions. Officers have worked with NRDA to ensure that Project
Kōkiri investment areas and performance measures, as captured in the
Statement of Intent, are relevant for the post COVID-19 economic
situation.
4.4 The
Annual Plan process was completed and the 2020/21 Annual Plan was adopted by
Council.
4.5 The
Nelson Residents’ Survey for 2020 was completed – a report on this
will be included in the agenda of the next Governance and Finance committee
meeting.
Nelson Centre of Musical Arts
(NCMA)
4.6 The
2019 NCMA review recommended transitioning from a grant agreement to a letter
of expectation/statement of intent process, similar to CCOs. Due to COVID-19
challenges forecasting financials and deliverables, shifting to this new model
has been moved out to 2021/22.
4.7 The
recruitment of a business advisor to the NCMA was delayed during the COVID-19
shutdown.
5. Financial
Results – full year 2019/20
5.1 Profit
and Loss by Activity
5.2 Other
Income variance of $100,000 is due to a $100,000 Provincial Growth Fund grant
from the Ministry of Business, Innovation and Education, which was received and
not budgeted for. Programmed Expense variance was $190,000 under budget due to
a budget of $102,000 being included for Regional Promotion in error. In addition,
Special Economic Projects was $30,000 under budget and Facilities Marketing was
under budget by $20,000 for the year.
5.3
5.4 Other Income variance of
$2.5 million is due to Dividends ($800,000) and Forestry Income ($1.5 million)
being lower than expected. Base expenditure variance of $1.3 million under
budget includes forestry harvest costs ($1.5 million under).
5.5 Depreciation costs are
behind budget and have not been finalised, with costs relating to current year
additions to be brought in as part of the annual journals. Unprogrammed
Expenses variance of $400,000 is mainly due to Tantragee hazardous tree
removal costs being under budget by $487,000.
5.6 A more detailed
narrative can be found below from section 5.9 onwards.
Notes to
Profit and Loss by Activity:
· The “Operating Budget” differs from the “Total
Annual Plan Budget” in that it includes carry forwards and reallocations
made after the final approval of the Annual Plan.
· Base Expenditure is expenditure that happens year after year, for
example yearly contracts or operating expenses.
· Programmed Expenditure is planned, or there is a specific programme
of works. For example, painting a building.
· Unprogrammed Expenditure is reactive or unplanned in nature, for
example responding to a weather event. Budgets are included as provisions for
these expenses which are unknown.
5.7 Other
Operating Revenue (excluding rates income)
5.8 Operating
Expenditure
5.9 There
is a variance between actual and budgeted staff costs within cost centres but
overall, actual staff costs are in line with budget. Finance is currently
reviewing staff costs to reduce the variances going forward.
5.10 Administration
and Meeting Support expenditure is greater than budget
by $298,000. Staff costs appear to be over budget by $262,000,
however, this is due to the actuals being coded differently to the budget and
is offset in other cost centres – see 5.9.
5.11 Civic
Expenditure is greater than budget by $108,000. Staff
costs are over budget by $73,000 due to the allocation of costs being different
than budget.
5.12 Civil
Defence expenditure is greater than budget by $94,000. Staff
costs are over budget by $94,000 due to costs being allocated differently from
budget. In particular, staff have spent time on the COVID-19 response at the
Emergency Operations Centre and in administration support roles.
5.13 Civic
House expenditure is less than budget by $69,000. Unbudgeted
State Advances legal costs of $58,000 will be capitalised upon sale of the
building. Depreciation is under budget by $108,000. End of year depreciation
additions had not been processed at the time of writing this report.
5.14 Economic
Development income is greater than budget by
$100,000. A Provincial Growth Fund grant has been received from the
Ministry of Business, Innovation and Education to support economic activity.
5.15 Economic
Development expenditure is greater than budget by
$101,000. Staff costs are over budget by $182,000 which relates to
the allocation of costs, see 5.9. Regional promotion budget of $102,000 was
included in the budget in error. Policy consultant costs of $50,000 were
unbudgeted, and relate to Vodafone and the Smart Little City contract.
5.16 Forestry
income is less than budget by $1.6 million. This
variance relates to the Maitai Forest and is a result of delays to the harvest
of that forest.
5.17 Forestry
expenditure is less than budget by $2.2 million. Maitai
harvest costs are under budget by $1.5 million. In addition, Tantragee
hazardous tree removal costs are under budget by $487,000 and forestry
management costs are under budget by $125,000.
5.18 Investment
Management income is less than budget by $814,000.
5.18.1 Dividend
income is under budget by $554,000,
including Port Nelson ($750,000 under) and Nelmac ($239,000 under). A special,
unbudgeted dividend of $400,000 has been received from Port Nelson in
September, and was used to repay debt.
5.18.2 Internal
interest income is under budget by $252,000. This
income is offset across the organisation.
5.18.3 External
interest income is over budget by $116,000 due to prefunding upcoming debt maturities, and
is partially offset by interest expenditure.
5.19 Investment
Management expenditure is greater than budget by
$175,000. External interest
expenditure is over budget by $88,000. Reserves interest is over budget by
$88,000 due to reserves balances being higher than anticipated.
5.20 Members
Expenses are greater than budget by $53,000. Staff
costs are over budget by $57,000 due to the allocation of costs being different
than budget – see 5.9.
5.21 Rental
Properties expenditure is greater than budget by
$7,000. Unbudgeted costs of $56,000 have been incurred for the Neale
Park landfill gas issue. Programmed maintenance and asbestos testing costs are
under budget with works delayed.
5.22 Strategy
expenditure is less than budget by $524,000. Staff
costs are behind budget by $515,000 due to costs being allocated differently
from budget – see 5.9.
5.23 Capital
Expenditure (including capital staff costs, excluding vested assets)
5.24 The “Operating Capital”
Budget 2019/20 reflects the latest capital budgets approved by Council. During
the Annual Plan 2020/21 process, the 2019/20 capital budgets were reviewed in
detail. At that time, and in response to COVID-19, Council agreed to carry
forward significant works from 2019/20 to 2020/21. These changes have been made
in the June 2020 period, hence the decrease in budget in the June 2020
Operating Budget.
5.25 All capital projects, within the
Governance delegation, with a budget greater than $250,000 in this financial
year have a project sheet in Attachment 1 of this report.
6. Commentary
on capital projects
6.1 There are
six capital projects within the Governance delegation which have been included
as part of this six month report. All have a budget over $250,000 for 2019/20.
They are the Haven Precinct, CBD Enhancements, and four projects relating to
Civic House. Summaries are included in Attachment One.
6.2 An
additional project ‘Christmas Decorations CBD’ is under $250,000,
but has been included due to interest in the project. The majority of actual
spend to date on ‘Christmas Decorations CBD’ has been capex.
6.3 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.
7. Commentary
on operational projects
7.1 There is one
non-capital project within the Governance delegation that is included as part
of the six month reporting. This project, the 2020/21 Annual Plan, has been
selected for reporting as it makes an important contribution to Council’s
work programme. The summary is included in Attachment 1.
8. Status
Report Updates
8.1 Haven
Precinct Project Progress Report – this project will be considered as
part of the development of the Long Term Plan 2021-31.
8.2 Policy
review: Appointments of directors/trustees to Council's Council Controlled
Organisations and Council Controlled Trading Organisations (left to lie on the
table) until after the next Joint Shareholders Committee meeting.
8.3 Nelson
Regional Development Agency - Statement of Expectation 2020/21 and update on
review of Nelson Regional Development Agency operations (left to lie on the
table). Subsequent to the meeting Project Kōkiri has been
developed. The Project provides the basis for the work programme for the
NRDA in 2020/21, and the proposed Statement of Intent for the NRDA is covered
in a separate report to this meeting.
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 ten
performance measures within the Governance and Finance Committee’s
delegations.
9.2 This report
shows the final performance result for these measures for the 2019/20 year.
These will be reported on in greater detail through the Annual Report 2019/20.
9.3 The results
of the performance measures at the end of the year are reported as one of the
following:
· Achieved
· Not achieved
· Not measured (for when data is not available at the time the
quarterly report is published – to be detailed in the commentary)
9.4 Attachment 2
lists all performance measures within the Governance and Finance delegation, their
status, and commentary for the quarter.
Quarterly
Review of Performance Measures
Status of Governance and
Finance Performance Measures, End of Year 2019/20
9.5 Four
of the ten measures for the Economic and Corporate activities were achieved at
the end of the year for 2019/20, and three of the measures were not achieved.
Two of the measures that were not achieved were in areas negatively impacted by
COVID-19 (annual spending in the CBD, and percentage of out of town visitors
attending events). Data from Infometrics is not yet available for two measures
(on GDP and tourism spend), but these will be reported on in the Annual Report
2019/20. See Attachment 2 for detail.
All of Council
10. Financial
Performance – full year 2019/20
10.1 Profit
and Loss
10.2 For
the year ending 30 June 2020 the activity surplus/deficits are $2.8 million
favourable to budget.
10.3 It
is noted that the full year information presented in this report is based on
the information available at the time of writing, and is subject to change in
the Annual Report 2020/21.
10.4 The
most significant variances to budget are set out below. These are also reported
to the relevant Committees.
Income
10.5 Rates
income is over budget by $1.4 million. This represents the draft rating
deficit, or the additional rates that are required to fund Council activities
in the current year, and is a deficit due to COVID-19. Because we have rated a
lower amount, the rating deficit is funded through prior year rating surpluses,
and hence debt. It is noted that this figure is not final as end of year
adjustments (relating to preliminary capital expenditure and depreciation) had
not yet been completed at the time of writing this report.
10.6 Forestry
harvesting income is under budget by $1.6 million due to the Maitai Forest
harvest not being completed in the current financial year.
10.7 Dividend
income is under budget by $554,000. Ordinary dividend income is under budget,
including Port Nelson ($750,000 under) and Nelmac ($239,000 under). A special,
unbudgeted dividend of $400,000 has been received from Port Nelson in
September, and was used to repay debt.
10.8 Community
Housing income is over budget by $463,000. Income was received for twelve
months, but had been budgeted for six months due to the anticipated sale.
10.9 Parking
Regulation and Parking Meter income are under budget by $380,000 due mainly to
the COVID-19 lockdown. Forecasts made in April, and reported to Council,
identified that income of $322,000 was at risk as a result of COVID-19.
10.10 Residential
Water Supply income is over budget by $222,000 reflecting higher water volumes
than anticipated.
10.11 Commercial
Water Supply and Trade Waste income are $162,000 over budget and $25,000 under
budget respectively. These income lines were flagged as potentially being
impacted by the COVID-19 lockdown.
10.12 Resource
Consents and Building Consents income are under budget by $50,000 and $102,000
respectively. Council’s Revenue and Financial Policy has an objective of
collecting 40-60% of resource consent costs and, between 60% and 80% for the
building unit costs. Reports to the Environment Committee on 5
March 2020 outlined that the 2019/2020 fees were at that stage, pre-COVID-19
lockdown, lower than budget. Council has subsequently completed
consultative processes to increase the fees for these services.
Expenses
10.13 Unprogrammed
expenditure is greater than budget by $1.2 million. Items include:
· Forestry expenditure
relating to removal of hazardous trees at the Tantragee ($487,000 under
budget).
· A provisional
building claim of $690,000 has been recognised in the current year but was
budgeted for next year. This claim is reserve funded.
· Unbudgeted freedom
camping initiatives expenditure of $215,000, which has been funded by an MBIE
grant.
10.14 Staff
operating expenses are slightly under budget ($119,000) at the whole
of organisation level. There are significant variances in staff costs in
specific cost centres, representing a different allocation of staff costs than
budgeted. These are discussed in the Committee reports.
10.15 Programmed
expenditure is less than budget by $2.6 million. Items include:
· Unspent Maitai
area Mountain Bike Trail grade 2-3 grant of $373,000, which has been deferred
to 2020/21.
· The Champion road
roundabout grant ($470,000) was unspent this financial year. The grant has been
reduced and $150,000 has been budgeted in 2020/21. (This is a Tasman District
Council project).
· Subsidised roading
costs which are under budget by $175,000 across a variety of codes due to
delays relating to the COVID-19 lockdown, in particular bridge maintenance
($76,000 under) and condition inspections and data collection ($105,000 under).
· Programmed maintenance
costs were delayed across the organisation due to the COVID-19 lockdown.
Specific items are discussed in the Committee reports.
· COVID-19 Community
Organisation Grants expenditure is under budget by $118,000.
· Preliminary capital
investigation costs are behind budget by $299,000 across a variety of codes.
These costs will be recognised when the annual adjustments are completed, but
were not yet available at the time of writing.
10.16 Depreciation
expenditure is behind budget by $731,000. Depreciation on capital
additions had not yet been calculated at the time of writing this report.
10.17 Base
expenditure is behind budget by $1.6 million. Maitai harvest costs
are under budget by $1.5 million due to delays in the completion of that
harvest.
10.18 Capital
Expenditure (excluding vested assets)
10.19 The
Operating Budget 2019/20 reflects the latest capital
budgets approved by Council. During the Annual Plan 2020/21 process, the
2019/20 capital budgets were reviewed in detail. At that time, and in response
to COVID-19, Council agreed to carry forward significant works from 2019/20 to
2020/21. These changes have been made in the June 2020 period, hence the
decrease in budget in the June 2020 Operating Budget.
10.20 Financial
information provided in Attachment 3
includes:
· A financial measures dashboard with information on
rates revenue, operating revenue and expenditure, and capital revenue and
expenditure.
· Operating income and expenditure displayed against budget
by category.
· Treasury measures dashboards.
· A debtor analysis graph over 13 months, showing
outstanding debt levels and patterns for major debt types.
10.21 Capital
expenditure is $2 million under Operating Budget and
$13.3 million under Annual Plan budget.
11. Insurance
Renewal
11.1 Nelson
City Council is part of the Top of the South Collective with Tasman District
Council and Marlborough District Council which was formed 1 July 2011.
The insurance broker is Marsh (formerly Jardine
Lloyd
Thomson (JLT)) and Nelson City Council has various insurance policies
including:
· Material Damage –
commercial and residential
· Business Interruption
· Motor Vehicle
· Public and Professional
Indemnity
· Crime, Statutory and
Employers Liability
· Harbour Masters and
Wreck Removal Liability
· Hall Hirers Liability
· Personal Accident
· Forestry
11.2 The
insurance was successfully placed for 1 July 2020 for this programme. The
infrastructure asset insurance renewal is on 1 November 2020.
11.3 Premiums
have increased overall by $86,040 (7%) mainly driven by increased material
damage premiums (4% or $38,000) and Professional indemnity / public liability
(38% or $31,000).
11.4 An
allowance for premium increases of $354,000 was included in the 2020/21 Annual
Plan, and there is still some risk around costs for the infrastructure renewal
in November 2020 given market conditions.
11.5 Council has added an
Environmental Impairment Policy to its insurance cover. This was previously
included as part of the Public Liability Insurance. The policy is to cover
Council for release of pollutants / contaminants into the environment over an
extended period of time. A one off breach will still be covered by
Council’s Public Liability policy.
Council’s
Performance Measures
Status of all Council’s
Performance Measures for 2019/20, as at 30 June 2020
11.6 At
the time of writing this report, of Council’s 80 total performance
measures across all activities, 51 measures have been achieved in 2019/20
(63.7%), and 19 not achieved (23.7%).
11.7 10
performance measures are not yet able to be measured (12.5%) – four of
these will be reported on in the 2019/20 Annual Report to Council later in 2020
when data is available. The remaining six will remain unmeasured for the year
(7.5%) - one due to the COVID-19 shutdown cancelling footpath condition surveys
for 2019/20 (transport), one because it a new measure that does not yet have a
comparative to determine achievement (economic, see Attachment 2).
11.8 As
described in the 2018/19 Annual Report, four measures in the environment
activity cannot be reported on, as Council's reporting systems are not
currently at a level that enables the results to be 100% verified. A review of
how this information can be provided to substantiate performance in future
years is being undertaken.
12. Conclusion
12.1 The
review of performance for the last six months of 2019/20 for the Governance and
Finance Committee is included in this report, with project sheets and
performance measure updates attached.
Author: Mark
Tregurtha, Manager Strategy
Attachments
Attachment 1: A2434210 -
Governance and Finance Committee Project Sheets End of Year 2019/20 ⇩
Attachment 2: A2429786
- Governance and Finance Performance Measures End of Year 2019/20 ⇩
Attachment 3: A2429702
- Finance Dashboards and Charts ⇩
Attachment 4: A2429514
- All of Council Project Health Summary 2019/20 ⇩
Item 10: Governance and Finance Committee End of Year Report to 30
June 2020: Attachment 1
Item 10: Governance and
Finance Committee End of Year Report to 30 June 2020: Attachment 2
Item 10: Governance and
Finance Committee End of Year Report to 30 June 2020: Attachment 3
Item 10: Governance and
Finance Committee End of Year Report to 30 June 2020: Attachment 4
Item 11: Bishop Suter
Trust - Adoption of Final Statement of Intent
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Governance and Finance Committee
27 August 2020
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REPORT R18092
Bishop
Suter Trust - Adoption of Final Statement of Intent
1. Purpose
of Report
1.1 To
receive and approve the final Statement of Intent 2020/25 from the Bishop Suter
Trust.
2. Recommendation
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That the Governance and Finance Committee
1. Receives
the report Bishop Suter Trust - Adoption of Final Statement of Intent (R18092) and its attachments (A2315613 and
A2351670); and
2. Notes the delivery of the
Bishop Suter Trust’s final Statement of Intent 2020/25 as required
under the Local Government Act 2002; and
3. Approves the final Statement
of Intent of the Bishop Suter Trust for 1 July 2020 to 30 June 2025.
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3. Background
3.1 The
Bishop Suter Trust is a Council Controlled Organisation. The Governance and
Finance Committee considered the draft Statement of Intent (SOI) from the
Bishop Suter Trust at its meeting on 21 May 2020. The Committee provided the
following feedback to the Bishop Suter Trust on its draft SOI 2020/25:
Requests the Board better
reflects the Statement of Expectation and considers including a timeline around
measurement of carbon emissions and reduction in the Statement of Intent.
4. Discussion
4.1 The
Bishop Suter Trust has amended the draft SOI as requested by the Governance and
Finance Committee. A copy of the Letter of Expectation (Attachment 1) and the
revised SOI (Attachment 2) are appended to this report. Revisions to the SOI
are shown in Attachment 2 using yellow highlights. The main changes are as
follows:
4.1.1 An
update on programming during the COVID-19 recovery period (section 1.1, p4).
4.1.2 Marketing
to international visitors when borders re-open (section 2.2.1, p7).
4.1.3 Implementing
a new collections policy and the inclusion of electronic devices (section
2.2.4, p9 and section 3.4, p13).
4.1.4 Periodically
meeting with Nelson and Tasman Council staff and representatives (section 2.3,
p11).
4.1.5 Reducing
visitor targets from 130,000 to 100,000 per annum (section 3.1, p12 and section
5 p16) post COVID-19.
4.1.6 Undertaking
an energy and carbons emission audit and developing a management plan (section
3.1, p12 and section 5 p18). This action was specifically requested via
resolution when the Committee considered the draft SOI.
4.2 The
final SOI was received within statutory timeframes.
5. Options
5.1 The
Committee can either approve the SOI as the final version or reject it. If the
Committee does not agree to the SOI, then shareholders must take all
practicable steps under Clause 5 of Schedule 8 of the Local Government Act to
require the SOI to be modified. Given that the Bishop Suter Trust Board has
complied with requests for further information from Council, this approach is
not recommended.
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Option 1: Agree to the SOI
(Recommended option)
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Advantages
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· Gives
clarity to the Bishop Suter Trust on direction for the 2020/21 year
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Risks and Disadvantages
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· None
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Option 2: Decline to agree to
the SOI
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Advantages
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· Allows
the Council to set a different direction
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Risks and Disadvantages
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· Lack
of clarity for the Bishop Suter Trust
· Damage
to relationship between the Council and the Bishop Suter Trust
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6. Conclusion
6.1 The
adoption of the final SOI of the Bishop Suter Trust is supported.
7. Next
Steps
7.1 The
Bishop Suter Trust will be notified of the outcome. The SOI will be published
on Council’s website.
Author: Mark
Preston-Thomas, Manager Community Partnerships
Attachments
Attachment 1: A2315613:
Letter of Expectation to the Bishop Suter Trust ⇩
Attachment 2: A2351670:
Suter Revised SOI with Mark Ups ⇩
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Important considerations for decision making
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1. Fit
with Purpose of Local Government
The preparation of a Statement of Intent is a requirement
of Schedule 8 of the Local Government Act.
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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’.
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3. Risk
There is a
risk that COVID 19 impacts will require further 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.
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4. Financial
impact
The operation of the Suter Gallery is a budgeted
activity for the Council.
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5. Degree
of significance and level of engagement
This matter is of low significance and no further
consultation is proposed.
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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.
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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.
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8. Delegations
The Governance and Finance Committee has the
following delegation to consider the content of the Statement of Intent:
Areas of Responsibility:
· Governance
of Nelson City Council Controlled Organisations, Nelson City Council
Controlled Trading Organisations, and Council Organisations
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Item 11: Bishop Suter Trust - Adoption of Final Statement of Intent:
Attachment 1
Item 11: Bishop Suter
Trust - Adoption of Final Statement of Intent: Attachment 2
