Minutes of a meeting of the Governance and Finance Committee

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

On Thursday 27 August 2020, commencing at 10.07a.m.

 

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

In Attendance:    Group Manager Strategy and Communications ( N McDonald), Group Manager Community Services (R Ball), Group Manager Corporate Services (N Harrison), Governance Adviser (E-J Ruthven), and Governance Support (K McLean)

Apology:             Councillor K Fulton

 

Karakia Timatanga

Committee members gave a karakia timatanga.

 

1.       Apologies

Resolved GF/2020/025

 

That the Governance and Finance Committee

1.        Receives and accepts an apology from Councillor Fulton.

Sanson/Edgar                                                                               Carried

 

2.       Confirmation of Order of Business

The Chairperson noted that the order of business would change to accommodate external presenters joining the meeting via zoom. 

Attendance:  Councillor Skinner joined the meeting at 10.11a.m.

3.       Interests

There were no updates to the Interests Register, and no interests with items on the agenda were declared.

4.       Public Forum 

There was no public forum.

5.       Confirmation of Minutes

5.1      21 May 2020

Document number M9874, agenda pages 9 - 20 refer.

Resolved GF/2020/026

 

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.

Courtney/Murray                                                                          Carried

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

Resolved GF/2020/027

 

That the Governance and Finance Committee

1.    Approves the Draft Annual Internal Audit Plan for the year to 30 June 2021 (A2357411).

Peters/Noonan                                                                                 Carried

6.2     Audit and Risk Subcommittee - 11 August 2020

6.2.1   Bad Debt Writeoff - Year Ending 30 June 2020

Resolved GF/2020/028

 

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.

Peters/Noonan                                                                                 Carried

 

 

7.       Chairperson's Report

Document number R18125, agenda pages 21 - 24 refer.

The Chairperson presented her report. 

She noted that Chief Executive of Nelson Airport, Rob Evans, had recently announced his resignation.  She acknowledged his work in bringing the new airport terminal through to completion and his leadership through the challenging COVID-19 period.

Councillor Sanson answered questions regarding social outcomes through procurement decisions, and there was a discussion regarding the living wage.

The meeting was adjourned from 10.28a.m. to 10.30a.m.

Point of order:  Points of order were raised by Councillor Lawrey and her Worship the Mayor against Councillor Skinner under Standing Orders 24.2(b) and 24.2(d), that disrespectful language had been used and statements had been misrepresented.  The points of order were upheld.

Resolved GF/2020/029

 

That the Governance and Finance Committee

1.    Receives the report Chairperson's Report (R18125).

Edgar/Noonan                                                                              Carried

8.       Carry Forwards 2019/20 (agenda item 9)

Document number R18189, agenda pages 73 - 81 refer.

Manager Finance, Clare Knox, presented the report.

Resolved GF/2020/030

 

That the Governance and Finance Committee

1.    Receives the report Carry Forwards 2019/20 (R18189) and its attachment (A2436022).

Courtney/Rainey                                                                           Carried

Recommendation to Council GF/2020/031

 

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.

Courtney/Rainey                                                                           Carried

10.     Governance and Finance Committee End of Year Report to 30 June 2020

Document number R18178, agenda pages 82 - 116 refer.

Manager Strategy, Mark Tregurtha, presented the report.  Along with Manager Finance, Clare Knox, Group Manager Corporate Services, Nikki Harrison, and Group Manager Community Services, Roger Ball, he answered questions regarding:

·         The allocation of staff costs against different activities;

·         Timing of a review of marina activities;

·         The review of the Joint Appointments policy being undertaken by Tasman District Council, and how Nelson City Council views would feed into this;

·         Progress on the appointment of a business adviser to the Nelson Centre for Musical Arts; and

·         Performance measures in relation to economic activity targets.

Resolved GF/2020/032

 

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).

McGurk/O'Neill-Stevens                                                                 Carried

The meeting was adjourned from 10.57a.m. to 11.04a.m.

8.       Nelson Regional Development Agency Statement of Intent 2020/21

Document number R18169, agenda pages 25 - 72 refer.

Nelson Tasman Economic Portfolio Manager, Jessica Bensemann, presented the report, and Nelson Regional Development Agency (NRDA) Chief Executive, Mark Rawson, and Board Chair, Meg Matthews, joined the meeting via audio-visual link. 

Mr Rawson and Ms Matthews answered questions regarding:

·         NRDA work in leading Project Kōkiri, to assist the region’s recovery from COVID-19;

·         addressing the impact of COVID-19 on women, youth and Māori in the region through Project Kōkiri;

·         how the end of the wage subsidy would affect the Project Kōkiri workstreams;

·         improving alignment and communication between the NRDA and the Councils, to clarify the matters on which the NRDA should be focusing;

·         The updated budget, including central government contributions, and whether a cash injection was required;

·         Performance measures in the Statement of Intent for the targeted business recovery and regenerated accelerator programme focus area;

·         Productivity challenges for the region, and potential innovations under consideration; and

·         The national Tourism Industry Aotearoa Sustainability Pledge and benchmarking of carbon emissions in the tourism industry.

Resolved GF/2020/033

 

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.

Her Worship the Mayor/Edgar                                                        Carried


The meeting was adjourned from 11.44a.m. to 11.52a.m, during which time Councillors Skinner and Edgar left the meeting. 

11.     Bishop Suter Trust - Adoption of Final Statement of Intent

Document number R18092, agenda pages 117 - 158 refer.

Group Manager Community Services, Roger Ball, presented the report, and Suter Art Gallery Director, Julie Catchpole, and Bishop Suter Trust Board member, Gabrielle Hervey, joined the meeting via audio-visual link.

Attendance:  Councillor Edgar returned to the meeting at 11.54a.m.

Ms Catchpole and Ms Hervey answered questions regarding:

·         Suter Gallery visitor numbers following the COVID-19 lockdown period;

·         The investment risk profile for investments of donated funds;

·         Measuring sustainability and emissions baselines and monitoring of energy use;

·         Implementation of the plan to make the collection accessible and searchable;

·         Treatment of donated artwork as income;

·         How to quantify volunteer hours at the gallery;

·         The Trust’s movement towards bringing all employees up to a living wage; and

·         Developing a risk management position to protect Council’s position should the Trust ever be wound up.

Resolved GF/2020/034

 

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.

Noonan/Courtney                                                                          Carried

       

12.     Exclusion of the Public

Attendance:  Councillor Rainey left the meeting at 12.17p.m.

Resolved GF/2020/035

 

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:

O'Neill-Stevens/Edgar                                                                     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 -  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)

The meeting went into confidential session at 12.19p.m. and resumed in public session at 2.10p.m.

Karakia Whakamutunga

Committee members gave a karakia whakamutunga.

 

Restatements

 

It was resolved while the public was excluded:

 

1

PUBLIC EXCLUDED: The Bishop Suter Trust - Trustee Rotation and Remuneration

 

That the Governance and Finance Committee

5.      Agrees that the decisions only be released from public excluded business once the 2020 Suter Annual General Meeting has taken place.

 

2

PUBLIC EXCLUDED: Director reappointment for Nelson Airport Limited

 

That the Governance and Finance Committee

3.      Agrees that the decisions only be released from public excluded business once the 2020 Nelson Airport Limited Annual General Meeting has taken place.

 

3

PUBLIC EXCLUDED: Director reappointment for Port Nelson Limited

 

That the Governance and Finance Committee

3.      Agrees that the decisions only be released from public excluded business once the 2020 Port Nelson Limited Annual General Meeting has taken place.

 

5

PUBLIC EXCLUDED: Directors remuneration 2020 - Nelmac Limited

 

That the Governance and Finance Committee

4.      Agrees that the decisions only be made publicly available once the 2020 Nelmac Annual General Meeting has taken place.

There being no further business the meeting ended at 2.10p.m..

Confirmed as a correct record of proceedings:

 

 

                                                       Chairperson                                     Date