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
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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.
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Item 7: Mayor's Report
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Council
17 December 2020
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REPORT R21493
Mayor's
Report
1. Purpose
of Report
1.1 To
update Council on current matters.
2. Recommendation
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That the Council
1. Receives
the report Mayor's Report (R21493).
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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 $82,220 was received.
4.2 The
following table provides a summary of further applications and grants allocated
from 1 July 2020:
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Emergency Fund Schedule of Grants -
2020/21
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Balance 1
July 2020
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$ 117,780.00
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Applications
received - 2020 / 2021
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Application
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Granted
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Nelson Surf
Lifesaving
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$ 5,000.00
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decline
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Tasman Bays Heritage Trust
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$ 18,987.00
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decline
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Nelson Tasman Hospice
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$ 10,000.00
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decline
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Iron Duke Sea
Scouts
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$ 3,888.00
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decline
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Stoke Toy
Library
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$ 2,500.00
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$
2,000.00
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Nelson Centre
of Musical Arts (NCMA)
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$ 16,500.00
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$ 16,500.00
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Nelson Historic
Theatre Trust (Theatre Royal)
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$ 30,000.00
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$ 30,000.00
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Nelson
Festivals Trust
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$ 4,000.00
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$
4,000.00
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Total
2020/2021
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$ 90,875.00
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$ 52,500.00
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Total (both
years)
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$577,569.00
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$
134,720.00
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Balance
remaining (15 December 2020)
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$ 65,280.00
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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
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Council
17 December 2020
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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
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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
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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
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Important considerations for decision making
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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.
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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.
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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.
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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.
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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.
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6. Climate
Impact
This report does not touch on matters related to
climate change.
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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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8. Delegations
This matter is a legislative requirement for Council
to address.
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