Notice of the ordinary meeting of

Nelson City Council

Te Kaunihera o Whakatū

Date:		Thursday 17 December 2020
Time:		9.00a.m.
Location:		Council Chamber
			Civic House
			110 Trafalgar Street, Nelson

Late Item Agenda

Rārangi take

Mayor               Her Worship the Mayor Rachel Reese

Deputy Mayor Cr Judene Edgar

Members         Cr Yvonne Bowater

                         Cr Trudie Brand

                         Cr Mel Courtney

                         Cr Kate Fulton

Cr Matt Lawrey

Cr Brian McGurk

Cr Gaile Noonan

                         Cr Rohan O’Neill-Stevens

                         Cr Pete Rainey

                         Cr Rachel Sanson

                         Cr Tim Skinner

Quorum         7                                                   Pat Dougherty                                                                                         Chief Executive Officer

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. For enquiries call (03) 5460436.



 

 

 

 

 

 

When calling

please ask for:

 

Governance Advisers

Phone:

03 546 0200

Email

governance.advisers@ncc.govt.nz

16 December 2020

Memo to:            Mayor and Councillors

Memo from:        Governance Advisers

Subject:             Council 17 December 2020 – LATE ITEM

 

 

7.       Late Items:

          Mayor's Report and Elected Members’ Remuneration

Document R22540 and R21451

Minor Late Item: Mayor’s Report                                                4 - 6

A report titled Mayor’s Report is attached and to be considered as a minor late item at this meeting as no decision is required.  This report was listed as item 7 on the public agenda for the Council meeting on 17 December 2020 to ensure elected members were aware that it would be presented to this meeting.

Major Late Item: Elected Members’ Remuneration                   7 - 14

A report titled Elected Member’s Remuneration is attached and to be considered as a major late item at this meeting.  This report was listed as item 16 on the public agenda for the Council meeting on 17 December 2020 to ensure elected members were aware that it would be presented to this meeting.

Section 46A(1)-(6) of the Local Government Official Information and Meetings Act 1987 and Standing Order 9.8 require that agendas are distributed with the associated reports.  As this report was not distributed with the agenda for this meeting, it must be treated as a major late item to be considered at this meeting.

In accordance with section 46A(7) of the Local Government Official Information and Meetings Act 1987 and Standing Order 9.12, a procedural resolution is required before a major item that is not on the agenda for the meeting may be dealt with.

In accordance with section 46A(7)(b)(i) the reason why the item was not on the agenda is because information came to hand after the agenda had been distributed.

In accordance with section 46A(7)(b)(ii) the reason why discussion of this item cannot be delayed until a subsequent meeting is because a resolution on the matter is required before the next scheduled meeting of the Council to enable a timely decision to be made.

 

 

 

Recommendation

That the Council

1.    Considers the items regarding Elected Members’ Remuneration at this meeting as a major late item not on the agenda, pursuant to Section 46A(7)(a) of the Local Government Official Information and Meetings Act 1987, to enable a timely decision to be made.

 

 

 

 

  


 

Item 7: Mayor's Report

 

Council

17 December 2020

 

 

REPORT R21493

Mayor's Report

     

 

1.       Purpose of Report

1.1      To update Council on current matters.

 

 

 

2.       Recommendation

 

That the Council

1.    Receives the report Mayor's Report (R21493).

 

 

3.       Mayoral Discretionary Fund

3.1      The Mayor donated $500.00 from her Mayoral Discretionary Fund as a contribution to the Inspiring Youth Theatre Charitable Trust which is raising funds for scholarships for youth performers as well as for the purchase of a second shipping container for its expanding costume and set storage. 

4.       Emergency Fund

4.1      At the meeting on 9 April 2020 Council established a $200,000 Emergency Fund to support community organisations impacted by COVID-19. Applications were received online and at the 13 August 2020 Council meeting a schedule of applications and allocated grants of $82,220 was received. 

4.2      The following table provides a summary of further applications and grants allocated from 1 July 2020:

Emergency Fund Schedule of Grants - 2020/21

Balance 1 July 2020

 

$ 117,780.00

Applications received - 2020 / 2021

Application

 Granted

Nelson Surf Lifesaving

$   5,000.00

 decline

Tasman Bays Heritage Trust

$ 18,987.00

 decline

Nelson Tasman Hospice

$ 10,000.00

 decline

Iron Duke Sea Scouts

$   3,888.00

 decline

Stoke Toy Library

$   2,500.00

 $      2,000.00

Nelson Centre of Musical Arts (NCMA)

$ 16,500.00

 $    16,500.00

Nelson Historic Theatre Trust (Theatre Royal)

$ 30,000.00

 $    30,000.00

Nelson Festivals Trust

$   4,000.00

 $      4,000.00

Total 2020/2021

$ 90,875.00

 $ 52,500.00

Total (both years)

$577,569.00

 $  134,720.00

Balance remaining (15 December 2020)

$    65,280.00

 5.      Urban Development Subcommittee

5.1      The Urban Development Subcommittee held its first workshop on 26 November which focused on housing supply and the housing reserve as well as an update on the City Centre work programme.  As a result of those discussions, there are two items on today’s agenda for Council’s consideration: Upper Trafalgar Street budget request and the Draft Amendments to Rates Remissions Policy and Financial Impact Statement (rural rating differential).

5.2      Significant work has already taken place to help develop the Housing Reserve policy and criteria.  We have been incredibly fortunate to have had input from numerous regional and national housing organisations and specialists to help inform our work in this area, including meetings with: Community Action Nelson (CAN), Habitat for Humanity Nelson, Nelson Tasman Housing Trust, Abbeyfield New Zealand, Dr Kay Saville-Smith, Shamubeel Eaqub, Community Housing Aotearoa, Community Housing Regulatory Authority, and Ministry of Housing and Urban Development.

5.3      These meetings have been incredibly fruitful and have offered key themes and areas of consensus as well as some interesting ideas and innovations.  The National Policy Statement on Urban Development and the repeal of the Resource Management Act were considered critical opportunities for supporting increased housing supply, intensification and affordable housing.  It was also noted that the revised Public Housing Plan (building on the 2018 plan) is due to be released in the first quarter of the calendar year.

5.4      The Strategic Development and Property (SDP) Subcommittee held their first meeting on 26 November.  Some of their initial discussions and early work programme priority includes an evaluation of Council’s strategic landholdings.  This is a critical discussion for the Urban Development Subcommittee as land is a key factor in our ability to deliver on both housing affordability and supply.  We look forward to the SDP Subcommittee progressing this area of work and the opportunities it will afford.

6.       Strategic Development and Property Subcommittee

6.1      A workshop with the Strategic Development and Property Subcommittee was held on 26 November 2020 to seek guidance from the Subcommittee on the Draft Property and Facilities AMP 2021-31 (AMP). The Subcommittee’s delegations include three areas within this AMP – strategic properties, campgrounds and the marina. The workshop focussed on strategic properties only, with workshops on campgrounds and the marina to be scheduled in 2021.

6.2      A focus of the discussion at the workshop was to better understand the strategic purposes and future plans for strategic properties, with the Subcommittee suggesting that a focus should be to make progress with some of the developments, specifically the Haven Precinct.

6.3      Work on the Haven Precinct has not been prioritised to date due to resourcing constraints, with the focus being on other portfolios such as the community housing transfer. One of the key workstreams within the AMP captures this and work will be carried out through the first year of the AMP to better understand the strategic purposes for which the buildings were acquired and to determine if the property is still required by Council.

6.4      Following further workshops with the Subcommittee, officers will update the draft AMP and to bring it to Council in the new year for approval. The final AMP will be brought to Council for adoption in September 2021, following the LTP consultation and development.

6.5      A report in relation to campgrounds will be provided to the Subcommittee in the new year. A report on the marina will also be provided next year, following the drafting of the development plan.

6.6      The levels of service of Strategic property was also discussed with a general view that our commercial properties need a higher level of service.

 

Author:          Rachel Reese, Mayor of Nelson

Attachments

Nil


 

Item 15: Elected Members' Remuneration

 

Council

17 December 2020

 

 

REPORT R21451

Elected Members' Remuneration

     

 

1.       Purpose of Report

1.1      To decide on the revised levels of elected member remuneration from the allocated pool of $603,300 set by the Remuneration Authority, to reflect the changes made to the Council’s governance structure.

2.       Summary

2.1      A review of the governance structure was considered at two extraordinary meetings of Council, on 22 October 2020 and 5 November 2020, resulting in changes made to both the governing committees and the subcommittees.  Consequently, levels of remuneration for elected members need to be reviewed to reflect these changes.

 

 

3.       Recommendation

 

That the Council

1.    Receives the report Elected Members' Remuneration  (R21451); and

2.    Approves the allocation of Elected Member Remuneration from the Pool in accordance with the Remuneration Authority Local Government Members (2020/2021) Determination Part 2 outlined in Option A:

a.     Deputy Mayor: $66,665

b.    Senior Chair (Chair Infrastructure, Regional Transport Committees, Deputy Chair Environment Committee (Nelson Plan Lead)): $62,662

c.     Committee Chair: $55,058

d.    Subcommittee Chair $48,500

e.     Committee Deputy Chair: $45,051

f.     Councillor: $45,051

 

 

 

 

4.       Background

4.1      The Remuneration Authority (the Authority) is the independent body established by Parliament to handle the remuneration of key office holders such as judges, members of parliament, local government representatives, some individual office holders and board members of independent statutory bodies. 

4.2      The Authority recently undertook an extensive review of how they assess the indices of a Council and the community it serves, and the ranking model used to allocate each Council’s Mayoral remuneration and pool from which the councillors will be paid. Part of the purpose of the review was to better encourage groups such as single parents to participate as elected members through more financial support than had been the case.

4.3      However it is recognised that, while the demands on elected members can vary from Council to Council, the remuneration often does not reflect the level of community service and loss of privacy (including for their families) that are typically associated with the role. As self-employed contractors, elected members are also personally responsible for managing the range of taxes and levies appropriate to self-employment from the remuneration they receive.

4.4      Local authorities must budget each year for the remuneration outlined by the Authority. Councils are responsible for the allocation of the set pool, and for the ways that specific roles and responsibilities are recognised. The whole pool must be allocated.

4.5      Council’s allocate the pool by resolution, following which the resolution, documentation outlining the proposed base rate for councillors, and supporting the responsibilities of any role that is to be remunerated, must be provided to the Remuneration Authority. The Authority will then assess whether the resolution proceeds into a determination or whether any aspect warrants further clarification or adjustment. 

4.6      In accordance with the Authority’s full pool approach of allocating councillor remuneration (initiated following the 2019 Local Government Election), Council resolved the base level of remuneration for councillors and additional remuneration for elected members with positions of responsibility at the Inaugural Council meeting held on 31 October 2019. This decision was confirmed by determination of the Authority in December 2019.  

4.7      The recent changes to the governance structure (which included a reduction in the number of governing committees of the whole from five to three and introduction of two additional subcommittees) mean changes to the roles and responsibilities held by councillors and consequently changes to the remuneration pool allocation to ensure the new structure is recognised and the pool fully allocated.

4.8      Based on the Authority’s ranking index, Council was allocated a pool of $603,300 for the 2019/2020 year; the Authority confirmed in June 2020 that there would be no increases to the pool for 2020/2021 financial year.

4.9      Important points to note regarding the full pool approach:

4.9.1   The Mayor’s annual remuneration is set by the Authority separately from the pool; the current determination is $144,500.

4.9.2   Base remuneration for councillors must not be set below the minimum prescribed by the Authority in its determination ($39,686) but can be higher, if there are sufficient funds available in the pool.

4.9.3   Positions of higher responsibility can be recognised in the remuneration from the pool.

4.9.4   The entire pool must be allocated.

4.9.5   Once the pool is allocated, Council is required to propose to the Authority the councillor base pay and the additional pay for positions of responsibility, along with documentation specifying the demands on those positions. The Authority will then consider the proposal and make a determination.

4.9.6   Once confirmation of a determination is received, remuneration will be backdated to the date specified in the Council resolutions to effect the changes to the committee structure, this date being 16 November 2020. It should be noted that the gazetting process by the Remuneration Authority only takes place at certain times in a year, and so there will be a delay until April 2021 for the confirmation of the changes to be agreed by Council at this December 2020 meeting.

4.10    As this reallocation is taking place part way through a financial year, the full pool is used as a reference to help consider annual amounts per councillor; however actual payments will be pro rata to reflect that some of the fund has already been paid out for the year. 

5.       Discussion

5.1      There are a number of ways in which the remuneration pool could be allocated to reflect the changes to the governance structure, depending on where Council chooses to place its emphasis.

5.2      Following a workshop session with elected members, a number of options are outlined below along with a brief description of the factors that have been particularly considered in the option, and a discussion comparing the implications of each option. 

5.3      All options comply with the requirement to fully allocate the remuneration pool. 

 

6.       Options

6.1      The changes to the governance structure adopted on 22 October 2020, including the disestablishment of two standing committees and the creation of two subcommittees, resulted in the requirement to significantly update the delegations of the standing committees and agree the mandate and delegations for the new subcommittees which Council completed at the ensuing meeting of 5 November 2020. These changes came into effect on 16 November 2020 and must also be reflected in the elected members’ remuneration. Several options as to how this could be approached are outlined below, each with a slightly different emphasis.

 

6.2    Option A

·      Deputy Mayor increases by $4003

·      Committee Chairpersons increase by $2914

·      Subcommittee Chairperson increases by $3,600 (from 2019 base rate)

·      Base rate increases by $151

·      No change to Senior Chairperson

6.2.1   Option A proposes an allocation approach intended to create widest benefit across all roles.

6.2.2   An increase in the remuneration of the Deputy Mayor is allowed for; this role bears a challenging workload and weighty responsibility, including legislative obligation during times of temporary or extraordinary vacancy in the Office of Mayor, which the increase seeks to better recognise. 

6.2.3   Increased provision is made for Committee Chairpersons, reflecting the leadership and time demands asked of those holding these roles, although it is noted that the remuneration for the Senior Chairperson is not proposed for alteration as the current rate is believed to be appropriate.

6.2.4   The role of Subcommittee Chairperson is newly proposed to be recognised through remuneration, which has not previously been the case, as a reflection of the regular demands on those leading Council’s Subcommittees.

6.2.5   Option A also provides for an increase to the base rate from the 2019 setting, which benefits all deputy chairs and those councillors who do not currently hold roles which are recognised with specific remuneration.

6.2.6   As it provides an increase to almost all roles from the 2019 setting while reflecting the demands on the Deputy Mayor and all Chairpersons, Option A is the recommended proposal.

6.3      Option B

·      Deputy Mayor increases by $2000

·      Committee Chairpersons increase by $500

·      Subcommittee Chairperson increases by $4012 (from 2019 base rate)

·      Base rate increases by $1068

·      No change to Senior Chairperson

6.3.1   The primary focus of Option B is an increase to the base rate, proposing a significant increase from the 2019 setting. It also provides a reasonably substantial allocation for the role of Subcommittee Chairperson, which has not previously been specifically recognised by remuneration. This Option further allows for some extra recognition of the Deputy Mayor, and of the Committee Chairpersons but to a smaller degree than either Option A or C. No change is proposed to the Senior Chairperson remuneration.

6.3.2   While this Option does provide adjustments for most roles, Council may wish to place greater emphasis on recognising the demands on the Deputy Mayor and Chairpersons than this Option allows for. 

6.4      Option C

·      Deputy Mayor increases by $7246

·      Committee Chairpersons increase by $2414

·      Subcommittee Chairperson increases by $2414

·      No change to Senior Chairperson or base rate

6.4.1   Option C proposes to increase the remuneration of most Chairpersons equally (noting that alteration is not proposed to the Senior Chairperson rate), including the Subcommittee Chairperson which role has not previously been recognised through remuneration. Further to this, the Option proposes a substantial increase to the remuneration of the Deputy Mayor taking into account the regular heavy demands of the role as well as the legislative responsibilities during times of temporary or extraordinary vacancy in the Office of Mayor.

6.4.2   While the Option does reflect the demands on the Deputy Mayor and Chairpersons, Council may wish to take this opportunity to review the base rate which this Option does not allow for.

7.       Conclusion

7.1      Following the recent review of the governance structure, changes to the committees and subcommittees mean a review of the remuneration allocation for councillors is required to ensure that the new roles and responsibilities are appropriately recognised. A number of options have been provided as to how this could be approached; it is important to note that the remuneration pool must be fully utilised.

8.       Next Steps

8.1      Following Council’s direction as to how the remuneration pool should be allocated for the remainder of this financial year, the updated governance structure and associated roles and responsibilities, as well as Council’s resolution on its preferred allocation of the pool, will be provided to the Remuneration Authority. Once confirmation by determination has been received from the Authority, any back payments due to councillors will be calculated and actioned. The gazetting of the new determination is anticipated to take place in late April 2021.

 

Author:          Devorah Nicuarta-Smith, Manager Governance and Support Services

Attachments

Nil

 

Important considerations for decision making

1.   Fit with Purpose of Local Government

The establishment of committees and subcommittees by a Council is allowed for under the Local Government Act 2002 [the Act] (c30, schedule 7), and is commonly utilised as a way to help support effective and efficient democratic decision-making.

A governance structure established around the central governing Council can enable efficiency and effectiveness in decision-making by: allowing the Council to focus on the central powers established under the Act (c32, schedule 7), helping manage elected member workloads, and increasing community participation in decision making through the appointment of non-elected members as appropriate.

Schedule 7 of the Act also speaks to the role and responsibilities of the Remuneration Authority, and the requirement on Local Authorities to follow the conditions of a determination by the Authority.

This decision is intended to ensure that councillors are appropriately recognised for roles and responsibilities held under the newly established governance structure, and that Council is meeting its obligations in relation to remuneration and the Authority. 

 

2.   Consistency with Community Outcomes and Council Policy

The community outcome that this matter most closely supports is “Our Council provides leadership and fosters partnerships, a regional perspective, and community engagement” which states “Our leaders understand our community, are confident in our future, know how to drive success and to work with others to tackle the big issues facing Nelson.”  The recommendation to allocate the pool is in line with this outcome in respect of elected members taking responsibility for decisions.

 

3.   Risk

 The apportioning of councillor remuneration is generally a lower risk exercise, as the total amount available each year is set by the Remuneration Authority which also provides extensive guidance for councils going through an allocation process. Any decision of Council as to a preferred allocation is also subject to approval by the Authority following the weighing of a number of factors including the demands of each role/ responsibility.

Matters in relation to elected member remuneration are usually of high public interest and there can be some perception risk if an allocation is not seen to be in line with the perceived demands of a role or otherwise outside of the community’s expectations. It is important to note that the pool is set by the Remuneration Authority without council input based on multiple demographic factors expressed through their ranking index, and the set pool must be fully utilised.

 

4.   Financial impact

The decision relates to a re-allocation of budgeted funds for elected member remuneration to ensure that the roles and responsibilities under the new governance structure are appropriately recognised; there is no change to the total amount to be allocated at this time. The next annual remuneration determination from the Authority which may adjust the available pool will be received in June/ July 2021.

 

5.   Degree of significance and level of engagement

This matter is largely a procedural decision to ensure Council is maintaining its obligations under schedule 7 of the Local Government Act, and to the Remuneration Authority’s determinations in relation to the allocation of councillor remuneration, and there is no change to the overall remuneration pool available to be allocated.

Community consultation is not required.

 

6.   Climate Impact

This report does not touch on matters related to climate change.

 

7.   Inclusion of Māori in the decision making process

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

8.   Delegations

This matter is a legislative requirement for Council to address.