Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Thursday 22 September 2022, commencing at 9.04a.m.

 

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

In Attendance:    Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Group Manager Environmental Management (D Bush-King), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) Team Leader Governance (R Byrne) and Assistant Governance Adviser (A Bryce-Neumann)

Apologies :          Nil

1.       Remembrance - Queen Elizabeth II 

A one minute silence was held in remembrance of the passing of Queen Elizabeth II on 8 September 2022.

Karakia and Mihi Timatanga

2.       Apologies

No apologies had been received.

Attendance:  Councillor Skinner joined the meeting at 9.11a.m.

3.       Confirmation of Order of Business

Her Worship the Mayor Reese reflected on the agenda items and noted the Agenda included items that completed work of the current council, ensured current projects were brought up to date and reported in public, and set the foundation for future decisions of the next council.  She impressed on Council the importance of being provided with good information when making decisions.

4.       Interests

There were no updates to the Interests Register.

Councillor Bowater declared an interest in Item 1 on the Confidential Agenda: Infrastructure Acceleration Fund and Housing Outcomes Agreements, and took no part in the discussion or decision making.

Councillor Sanson subsequently declared an interest in Agenda Item 7: Confirmation of Minutes 11 August 2022.

5.       Public Forum

5.1.     Nelson Residents Association - Port Nelson Ltd / Nelson Airport Ltd Holding Company Proposal

Document number R27276

Steve Cross, on behalf of the Nelson Residents Association, spoke about the Port Nelson Ltd / Nelson Airport Ltd Holding Company Proposal, Item 20 on the Agenda.

He spoke about the level of debt and the consultation process, saying that he felt it had morphed into being an endorsement of a funding strategy for the subsidiaries which involved ratepayers guaranteeing large numbers of debt and that the proposal was a more entrenched version of the status quo.    

6.       Confirmation of Minutes

6.1      25 August 2022

Document number M19756, agenda pages 30 - 46 refer.

Resolved CL/2022/192

 

That the Council

1.    Confirms the minutes of the meeting of the Council, held on 25 August 2022, as a true and correct record.

Courtney/Edgar                                                                            Carried

7.       Confirmation of Minutes - 11 August 2022

Document number R27165, agenda pages 48 - 54 refer.

Councillor Sanson declared an interest and took no part in the decision making. 

Resolved CL/2022/193

 

That the Council

1.    Confirms the minutes of the meeting of the Council, held on 11 August 2022, as a true and correct record.

McGurk/Brand                                                                              Carried

 

8.       Public Forum (Agenda Item 5 reconvened (1))

8.1.     Mark Christensen and Craig Potton, State Cinemas - Nelson City Bus Hub

Document number R27274

Mark Christensen and Craig Potton, from State Cinemas, spoke about the Nelson City Bus Hub and tabled speaking notes (1982984479).

Mr Potton spoke about the financial impacts of earthquake strengthening, then the impacts of COVID-19, including the Omicrom wave and now the new retail theatre in Richmond, had on the financial stability of the theatre. He said that the reduction of car parks in Millers Acre for the bus hub could be the tipping point for the theatre, as the parking area was the preferred option for patrons. They asked for consultation before Council made the final decision on the bus hub.

Her Worship the Mayor agreed to move in to Confidential for Mr Christensen and Mr Potton to discuss economic impacts in more detail.

 

Attachments

1    1982984479  Mark Christensen and Craig Potton The Importance Of Car Parking To State Cinemas

                                    

Exclusion of the Public

 

Resolved CL/2022/194

 

 

That the Council

1.        Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, Mark Christensen and Craig Potton, State Cinemas, remain after the public has been excluded, for Public Forum as they had confidential information to provide to Council.

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

3.    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:

 

Her Worship the Mayor/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

Public Forum

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)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

 

The meeting moved in to Confidential session at 9.54a.m. and resumed in Public session at 10.10a.m. at which time Councillor Bowater, Mr Christensen and Mr Potton left the meeting.

9        Exclusion of the Public

Suresh Ram, Senior Lead – Commercial and Harry Bates, Adviser – Commercial of the Infrastructure Acceleration Fund, and Lorellin Syben, Manager Community Engagement and Partnerships, Kainga Ora  were in attendance for Item 1 of the Confidential agenda to answer questions and, accordingly, the following resolution was required to be passed:

Resolved CL/2022/195

 

That the Council

1.        Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Suresh Ram, Harry Bates from Infrastructure Acceleration Fund (IAF)  and Julia Campbell Kainga Ora remain after the public has been excluded, for Item 1 of the Confidential agenda (Infrastructure Acceleration Fund and Housing Outcomes Agreements for  
- Bridge Street Linear Active Transport Corridor and
- Rutherford/Achilles Social and Affordable Housing Development
), as they have knowledge relating to the IAF that will assist the meeting;  and

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

3.        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:

Her Worship the Mayor/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

Infrastructure Acceleration Fund and Housing Outcomes Agreements for
- Bridge Street Linear Active Transport Corridor and
- Rutherford/Achilles Social and Affordable Housing Development

Section 48(1)(a)

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

The withholding of the information is necessary:

·    Section 7(2)(h)

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

·    Section 7(2)(i)

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

The meeting moved in to Confidential session and 10.11a.m. and resumed in Public session at 10.35a.m. at which time  Suresh Ram, Harry Bates and Julia Campbell had left the meeting.

The meeting adjourned from 10.35a.m. until 11.00a.m., at which time Councillor Skinner had left the meeting and Councillor Bowater had returned to the meeting.

10.     Nelson Central Library - Flood Modelling and Flood Mitigation Plan Update  (Agenda Item 9)

Document number R26904, agenda pages 57 - 88 refer.

Group Manager Infrastructure, Alec Louverdis, and Activity Engineer Flood Protection, Toby Kay, presented the report and answered questions on  decision making timelines in the project plan, engagement and the Geotech report.  Mr Louverdis confirmed that it would take 12 – 18 months to complete further work on flood mitigation.

Jon Rix from Tonkin Taylor was present to answer questions on the technical report.  

Attendance: Councillor Skinner joined the meeting at 11.14a.m.

In response to a question regarding whether Council was following the Treasury’s Better Business Case methodology,  Group Manager Community Services, Andrew White, confirmed that Council was not following this methodology specifically as this required using a trained Better Business Case practitioner, but the Council’s business case conformed to the key principles of this methodology and had been signed off by Council through the Long Term Plan.

During discussion a question on whether Council was using Dynamic Adaptive Policy Pathways (DAPP) was raised.  A member noted that when questioned previously she had received no advice so had gone direct to the authors of DAPP. Her Worship the Mayor requested the member share the information obtained with officers in order to inform the role of DAPP in this instance.

Mr Louverdis and Mr Kay answered further questions on bridge renewal, transport planning and wider flood modelling, and confirmed there was a DAPP group working across the Council understanding the issues of related projects and reporting to the Senior Leadership Team.

The item was left to lie in order for the member to provide information received to clarify the role of DAPP. 

11.     Central Library Development Project Progress Report to End of August 2022

Document number R27191, agenda pages 89 - 99 refer.

Libraries Redevelopment Project Manager, Alice Heather, and Project Manager – Capital Projects, Ajith Rajmohan, presented the report and noted that the draft sustainability objectives referred to on page 92, 4.5.3 had not been approved and would be formally considered when a report was brought to Council in the new triennium.

Attendance: Councillor Sanson left the meeting at 12.03p.m.

Resolved CL/2022/196

 

That the Council

1.    Receives the report Central Library Development Project Progress Report to the End of August 2022 (R27191).

Edgar/Skinner                                                                              Carried

 

The meeting adjourned at 12.12p.m. and reconvened at 1.02p.m. at which time Councillors Rainey and Skinner were not in attendance.

 

12.     Pūtangitangi Greenmeadows Centre Project External Review (Supplementary Agenda Item 28)

Document number R27038

Group Manager Infrastructure, Alec Louverdis, and General Counsel, Fiona McLeod presented the report. Consultant, Gordon Hassett of Klu’dup was present to answer questions. Ms McLeod advised the officer’s recommendation had been amended to direct the Chief Executive to report back on implementation of the recommendations within 12 months.

Ms McLeod advised members that the focus of the external review was on Council’s processes regarding managing large construction projects, what went wrong and what could be done to fix this in the future.  Any discussion on the role other parties may or may not have had could risk breaching the settlement agreement.  

Attendance: Councillor Skinner joined the meeting at 1.14p.m. and Councillor Rainey joined at 1.16p.m.   

Councillor Noonan moved the officer’s amended recommendation, seconded by Councillor Courtney.

Mr Hassett answered questions on the functions of governance oversight, operational oversight, project management and quality assurance.

Resolved CL/2022/197

 

That the Council

1.    Receives the report Pūtangitangi Greenmeadows Centre Project External Review (R27038) and its attachments (1016753008-157, 1016753008-225 and 1590798627-38); and

2.    Directs the Chief Executive to consider and report back within twelve months on the implementation of the recommendations as set out in 5.2 of Greenmeadows Centre Project Review Finding Report, (Attachment 2 1016753008-225), for improvements in the delivery of large vertical building projects; and

2.    Notes that the recommendations for improvements in the delivery of large vertical building projects will be considered by the Chief Executive, alongside improvements already implemented to date, to ensure that they are appropriately incorporated into standard Council practice for future projects of this nature.

Noonan/Courtney                                                                          Carried

  

13.     Nelson Central Library - Flood Modelling and Flood Mitigation Plan Update  (Agenda Item 9 reconvened (1))

Document number R26904, agenda pages 57 - 88 refer.

The Chief Executive advised that no further information had been received and Council’s Climate Change Advisor was unavailable to comment on whether the Dynamic Adaptive Policy Pathways (DAPP) process could be used.

In response to sharing of private correspondence the member confirmed she did not feel comfortable without checking with the author and requested that as best practice, Council should be undertaking a project specific DAPP process for the library project.    

Her Worship the Mayor agreed the information on DAPP was material to decision making and left the item to lie until staff with the relevant expertise were available to provide advice.  

14.     Elma Turner Library - Ceiling Tiles

Document number R27194, agenda pages 100 - 108 refer.

Manager Property Services, Rebecca van Orden, Team Leader Capital Project, Joel Felber, Project Manager Capital Projects, Lucy Clarke and Georgia Whitler from Beca were present to answer questions. Ms Van Orden presented the report and answered questions on the earthquake prone building notice,  the level of investment required, timeframe of restricted services and a timeline of assessments relating to the ceiling tiles.

Group Manager Corporate Services, Nikki Harrison confirmed a report would be brought to Council in October 2022 and would incorporate a full analysis of investment required, including an options around renting or relocating.

Her Worship the Mayor asked the Chief Executive to comment on how the Health and Safety risk assessment for Elma Turner Library aligned with the approach taken for Civic House, with specific reference to the vulnerable users of the library and lack of desks to provide cover in an earthquake.

The meeting adjourned from 1.54p.m. until 1.55p.m.

Library Manager, Sarina Barron, answered questions on the limitation of current library services. 

Attendance: Councillor O’Neill-Stevens left the meeting at 2.04p.m.

Her Worship the Mayor adjourned the item in order for officers to provide a timeline and precis of the management of the ceiling tiles since the issue was identified in 2014.

The meeting adjourned from 2.15p.m. until 2.25p.m. at which time Councillor O’Neill-Stevens joined the meeting.

 

15.     Recommendations from Committees (Agenda Item 13)

15.1   Infrastructure Committee - 1 September 2022

16.1.1 Adoption of E Tū Whakatū  Nelson's Active Travel Strategy

Recommendation to Council CL/2022/198

 

That the Council

1.    Adopts E Tū Whakatū – Nelson’s Active Travel Strategy 2022-32; and

2.    Delegates responsibility for any minor amendments of the Strategy to the Chair of the Infrastructure Committee and the Group Manager Infrastructure.

McGurk/Courtney                                                                          Carried

 

16.1.2 Infrastructure Quarterly Report

Clause 1 was taken separately. 

Recommendation to Council CL/2022/199

 

That the Council

1.    Approves bringing forwarded budgeted capital funding of $2,969,552 from 2023/24 and $108,426 from 2024/25, to allow completion of the Rutherford Street Stormwater project in 2022/23; and

2.    Approves unbudgeted additional capital funding of $60,000 in 2022/23 for the detail design of a new fluoridation system at the Water Treatment Plant following government directive from the Director-General of Health to fluoridate Nelson City Council drinking water supply; and

3.    Notes future budget for construction and commissioning the new fluoridation system will be included in 2023/24 Annual Plan and that officers are working with Manatū Hauora, who are making capital works funding available for local authorities that have been issued with a direction to fluoridate.

Her Worship the Mayor/Courtney                                                   Carried

 

15.2   Urban Development Subcommittee - 9 September 2022

15.2.1          Chairperson’s Report

Resolved CL/2022/200

 

That the Council

1.        Reaffirms the Housing Reserve criteria (A2748972) for future grants from the Housing Reserve Fund; and

2.        Agrees to leave open the time period for receiving applications for the Housing Reserve fund.

Bowater/Lawrey                                                                            Carried

Attendance: Councillor O’Neill-Stevens left the meeting at 2.35p.m.

15.4   Audit, Risk and Finance Subcommittee - 13 September 2022

15.3.1 Carry Forwards 2021/22

Recommendation to Council CL/2022/201

 

That the Council

1.    Approves the carry forward of $8.5 million unspent capital budget for use in the 2022/23 financial year; and

2.    Notes that this is in addition to the carry forward of $21 million approved during the Annual Plan 2022/23, taking the total carry forward to $29.5 million of which $23.7 million is for the 2022/23 year, $3.4 million is for the 2023/24 year and $2.4 million is for the 2025/26 year; and

3.    Notes the total savings and reallocations in 2021/22 capital expenditure of $782,000; and

4.    Notes that the total 2022/23 capital budget (including staff costs and excluding consolidations and vested assets and scope adjustment) will be adjusted by these resolutions from a total of $80.6 million to a total of $89.1 million; and

5.    Approves the carry forward of $2.95 million unspent operating budget for use in 2022/23, $2.7 million (for the Science and Technology Precinct Capital Grant)  of which is loan funded capital grant expenditure.

Her Worship the Mayor/Lawrey                                                      Carried

 

15.4   Community and Recreation Committee - 15 September 2022

15.4.1 Future public recreation use of Ngāti Koata whenua

Recommendation to Council CL/2022/202

 

That the Council

1.    Confirms its commitment to maintaining and enhancing recreational access to high-value recreation areas that are currently owned by Ngāti Koata, and to entering into a mutually advantageous long-term agreement, with resourcing subject to funding being approved through the 2023/24 Annual Plan and the 2024-2034 Long Term Plan.

2.    Notes that entering into a mutually advantageous long-term agreement with Ngāti Koata will be a priority matter for consideration through the 2023/24 Annual Plan and the 2024-34 Long Term Plan.

3.    Directs officers to continue dialogue with Ngāti Koata with a view to developing a proposal to maintain and enhance recreational access to high-value recreation areas that are currently owned by Ngāti Koata.

Skinner/Brand                                                                              Carried

 

16.     Nelson City Bus Hub - Proposed Site (Agenda Item 12)

Document number R27212, agenda pages 109 - 174 refer.

Manager Transport and Solid Waste, Marg Parfitt, presented the report, noting that officers would engage with the State Cinema to work on mitigation measures resulting from the loss of carparks in Millers Acre, which would include looking at signage directing carparking for the theatre,  lighting and wayfinding in Whakatu car park. 

Attendance: Councillor O’Neill-Stevens joined the meeting at 3.25pm

Attendance: Councillor Noonan left the meeting at 3.30p.m.

In response to discussions on flood modelling and the library project Ms Parfitt confirmed that the current buildings in Millers Acre would be repurposed and usable for at least 20 years. 

Attendance: Councillor Noonan joined the meeting at 3.42p.m.

The meeting adjourned from 3.44p.m. until 4.04p.m.

Ms Parfitt confirmed that construction would commence in 12-18 months, that Waka Kotahi supported the project, and that current budget was available to progress with the design phase. 

Her Worship the Mayor Reese asked that further engagement be undertaken with other businesses that would be affected and the item be adjourned until the meeting was reconvened on Tuesday 29 September.

The meeting adjourned at 4.13p.m.,  to be reconvened Tuesday 27 September following the scheduled Council meeting.


 

 

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Minutes of a meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson, reconvened on Tuesday 27 September 2022, commencing at 11.35a.m.

 

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

In Attendance:    Chief Executive (P Dougherty), Group Manager Infrastructure (A Louverdis), Acting Group Manager Environmental Management (M Day), Group Manager Strategy and Communications (N McDonald) Team Leader Governance (R Byrne) and Assistant Governance Adviser (A Bryce-Neumann)

Apologies :          Nil

17.     Adoption of Taonga Tuku Iho, Heritage Strategy 2022-2032 (Agenda Item 16)

Document number R27185, agenda pages 237 - 280 refer.

Kaihautu, Pania Lee, Manager Community Partnerships, Mark Preston-Thomas and Consultant, Johnny O’Donnell were in attendance to present the report.  

Her Worship the Mayor invited Aaron Hēmi to open the Agenda Item.

Ms Lee acknowledged kaumātua Melanie McGregor, Barney Thomas and Aaron Hēmi.

A final copy of Taonga Tuku Iho, Heritage Strategy was tabled (1736347531-4249).

Mr O’Donnell spoke about the development of the Strategy, which was supported by iwi and strengthened Council’s relationship with iwi.

Attendance: Councillor Noonan joined the meeting at 11.58a.m.

Ms Lee confirmed that the steering group would agree the action plan. She noted the shift from the previous strategy where 90% of the actions were for Council to deliver,  Taonga Tuku Iho was based on the collective responsibility of many stakeholders and partnerships who hold the responsibility and accountability. 

Resolved CL/2022/202

 

That the Council

1.    Receives the report Adoption of Taonga Tuku Iho, Heritage Strategy 2022-2032 (R27185) and its attachments; and

2.    Adopts Taonga Tuku Iho, Heritage Strategy 2022-2032; and

3.    Authorises the Group Manager Community Services to approve any minor editorial amendments required to finalise the Strategy; and

4.    Notes that a Taonga Tuku Iho Steering Group will be established to agree an Action Plan to deliver outcomes for the Strategy; and

5.    Notes the current working group will be develop the structure, membership and terms of reference for the new Steering Group.

Her Worship the Mayor/Skinner                                                     Carried

 

Attachments

1    1736347531-4249 Council 22Sep2022 Taonga Tuku Iho 20222032 Final

 

Barney Thomas closed the item, and acknowledge Council in leading the development of the Strategy on behalf of its community

 

The meeting adjourned from 12.25p.m. until 1.30p.m. at which time Councillor Rainey was not present.

18.     Adoption of Partnership Agreement between Ngā Iwi o Te Tauihu o Te Waka a Māui and Nelson City Council (Agenda Item 15)

Document number R27230, agenda pages 218 - 236 refer.

The Chief Executive had removed this item from the Agenda.

 

19.     Nelson City Bus Hub - Proposed Site (Agenda Item 12 reconvened)

Document number R27212, agenda pages 109 - 174 refer.

Manager Transport and Solid Waste, Marg Parfitt, provided feedback from the meeting with business owners, also attended by Councillors Edgar, Courtney and O’Neill-Stevens. She had talked through their concerns about reducing car parks in Millers Acre and provided mitigation and support ideas, which were well received. 

Attendance:  Councillor Sanson joined the meeting at 1.56p.m. and Councillor Skinner joined at 1.59p.m.

Ms Parfitt provided an amended recommendation to include that officers would be working closely with the owners of State Cinema 6 and other businesses in the vicinity to Millers Acre, confirming this would include officers from the City Development and Transport teams. 

Resolved CL/2022/203

 

That the Council

1.        Approves the Receives the report Nelson City Bus Hub - Proposed site (R27212) and its Attachments (1862260321-18221 and 336940202-1318); and

2.        Approves Millers Acre as the long-term location for the new central city bus hub; and

3.        Agrees that officers will work closely with the owners of State Cinema 6 and other businesses in the vicinity of Millers Acre, to consider and implement mitigations that ensure a smooth transition, including promoting alternative parking options to account for the loss of carparks in Millers Acre. 

4.        Approves that following approval of the location of the new bus hub at Millers Acre by Council, that officers initiate the necessary planning, design and consenting this financial year that will allow implementation of the new bus hub to commence next financial year.

The motion was put and a division was called:

For

Cr Bowater

Cr Courtney

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Sanson

Her Worship the Mayor Reese (Chairperson)

Against

Cr Brand

Cr Skinner

Absent

Cr Rainey

The motion was carried 10 - 2.

Edgar/McGurk                                                                               Carried

 

20      Nelson Central Library - Flood Modelling and Flood Mitigation Plan Update  (Agenda Item 9 reconvened (2))

Document number R26904, agenda pages 57 - 88 refer.

Manager Climate Change, Rachel Pemberton, advised she had sought clarification from the Ministry for the Environment on whether Dynamic Adaptive Policy Pathways (DAPP) was an appropriate process for the library site. Dr Rob Bell, an author of the DAPP guidance document,  advised that while it could be simplified and adapted for building projects it was just as important to use it as a strategy for the area/location.  

 

Group Manager Infrastructure, Alec Louverdis, confirmed that officers would report back on the impact on roads, what the future library should look like,  floor levels, secondary flood paths and wider considerations and options in a broader context.

Resolved CL/2022/204

 

That the Council

1.        Receives the report Nelson Central Library - Flood Modelling and Flood Mitigation Plan Update  (R26904) and its attachment A2897579; and

2.        2.    Agrees to defer negotiations with Wakatū Inc until further work is undertaken by officers to better understand the implications of the new data with regards to coastal inundation impacts and adaptive planning for the inner city; and    

3.        3.    Notes that officers will report the implications of the increased coastal inundation flooding as a result of new information from NZ SeaRise with respect to the new library site and inner city back to a future Council meeting; and  

4.        Agrees that the new library community engagement (which has already commenced) continues on the basis that this will guide the vision of a new library irrespective of location.

McGurk/Fulton                                                                              Carried

 

 

The meeting adjourned at 2.46p.m. to be reconvened at 9.00a.m. on Thursday 29 September.  

 

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Minutes of a reconvened meeting of the

Nelson City Council

Te Kaunihera o Whakatū

Held in the Council Chamber, Civic House, 110 Trafalgar Street, Nelson on Thursday 29 September 2022, commencing at 9.06a.m.

 

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

In Attendance:    Chief Executive (P Dougherty), Acting Group Manager Infrastructure (D White), Acting Group Manager Environmental Management (Maxine Day), Group Manager Community Services (A White), Group Manager Corporate Services (N Harrison), Group Manager Strategy and Communications (N McDonald) Team Leader Governance (R Byrne) Governance Adviser (T Kruger) and Assistant Governance Adviser (A Bryce-Neumann)

Apologies :          Nil

 

5.        Public Forum (Agenda Item 5 Reconvened (2))

 

Ali Boswick, Chamber of Commerce

Ms Boswick spoke about the proposed Holding Company, Item 20 on the Agenda, noting the Chamber of Commerce (CoC) supported the proposal and the key objective of providing access to cheaper financing.  The CoC agreed that the Holding Company was one component in the messaging about the Nelson Tasman region, and unity was important to continue to attract central government funding and to build the region’s economy.

 

21.     Elma Turner Library - Ceiling Tiles (Agenda Item 11 reconvened (1))

Document number R27194, agenda pages 100 - 108 refer.

Group Manager Corporate Services, Nikki Harrison and Manager Property Services, Rebecca van Orden, provided additional information requested at the meeting on 22 September 2022, noting that in October 2021 it was identified that the tiles had the heating system incorporated in them and simple replacement was not possible. The budget at the time was under $250,000 and as such did not require reporting to the Community and Recreation Committee. The work was deferred to the 22/23 financial year.

Chief Executive, Pat Dougherty, advised that when the significant issues regarding the ceiling tiles in Civic House was identified staff examined the Elma Turner Library ceiling tiles and found they were heavier than expected.  Noting that the tiles had been in the building for 25 years and had withstood several earthquakes, the probability risk was quite low. Although the MBIE guidelines allowed the library to remain open the decision was made to take a conservative approach and close the library as it was accessed by many elderly and young people and there were large areas where there was nowhere to drop, cover and hold.                

Attendance: Councillor Rainey left the meeting at 9.17a.m.

Ms Van Orden answered questions on the timing to expect the Detailed Seismic Assessment (DSA), and timing for ceiling repairs should that option be taken.

Attendance: Councillor Fulton joined the meeting at 9.37a.m.

Members agreed the Elma Turner Library was a critical asset and options needed to be considered to quickly get it back to full operation.  Amendments to the officer’s recommendation were discussed to provide clarity.

Councillor Edgar moved an amended officer’s recommendation requesting a review and report, seconded by Councillor Fulton.

Her Worship the Mayor adjourned the item and requested officers provide further information on the seismic assessment.

22.     Civic House Refurbishment Project (Agenda Item 17)

Document number R27053, agenda pages 281 - 288 refer.

Group Manager Corporate Services, Nikki Harrison, and Manager Property Services, Rebecca van Orden took the report as read and answered questions on budgets in the Long Term Plan, noting these were provided by BECA on a square metre basis based on a comparable building upgrade in Wellington.

Chief Executive, Pat Dougherty advised that since the initial business case was compiled the way we work had changed, a hybrid model including working from home was more realistic and would only require 60% of staff working in the building at one time. In addition the local government review, Resource Management Act and 3 Waters reforms  and sea level rise projections would also inform an updated business plan.

The Chief Executive answered questions on alternative uses for Civic House and the option of moving Council premises.

Her Worship the Mayor Reese adjourned the item to be revisited later in the meeting.

The meeting adjourned from 10.34a.m. until 10.52a.m. at which time Councillor Lawrey was not present.

23.     Discharge of Encumbrance - Nelson Tasman Housing Trust (Agenda Item 18)

Document number R27094, agenda pages 289 - 314 refer.

Resolved CL/2022/205

 

That the Council

1.    Receives the report Discharge of Encumbrance - Nelson Tasman Housing Trust (R27094) and its attachments (821857120-10, 821857120-11 and 821857120-12); and

2.    Approves the discharge of encumbrance instrument 8804711.5 from the title of 285 Brook Street, Nelson.

Edgar/Courtney                                                                            Carried

 

24.     Approval of the Better Off Funding proposal (Agenda Item 23)

Document number R27193, agenda pages 532 - 536 refer.

 

Resolved CL/2022/206

 

That the Council

1.    Receives the report Approval of the Better Off Funding proposal (R27193) and its attachments (1601344813-168); and

2.    Approves the funding proposal (1601344813-168) for Tranche 1 Better Off Funding be submitted to the Department of Internal Affairs.

O'Neill-Stevens/Edgar                                                                   Carried

 

25.     Review of Freedom Camping Bylaw 2017

Document number R27158, agenda pages 541 - 592 refer.

Resolved CL/2022/207

 

That the Council

1.    Receives the report Review of Freedom Camping Bylaw 2017 (R27158) and its attachments (606908324-33985, 606908324-33982 and 606908324-33983); and

2.    Agrees to make the determinations required by sections 11(2) and 13(3) of the Freedom Camping Act 2011, to review the Council’s Freedom Camping Bylaw 2017; and

3.    Determines that the bylaw is:

·        necessary to protect areas in the district, to protect the health and safety of people who may visit those areas in the district, and to protect access to those areas; and

·        the most appropriate and proportionate way of addressing the perceived problems in relation to those areas; and

·        is not inconsistent with the New Zealand Bill of Rights Act 1990; and

4.    Notes that staff will prepare a further report that takes into account the review of the Bylaw and other relevant matters including those noted in resolution 6 below, and that recommends consultation (whether or not any changes to the Bylaw are proposed), in order to meet the statutory requirements in s 13(4) of the Freedom Camping Act 2011; and

5.    Notes that the Government has signalled its intention to amend the Freedom Camping Act 2011 and the Plumbers, Gasfitters and Drainlayers Act 2006 to support Sustainable Freedom Camping prior to the 2022/23 summer period; and

6.    Notes that Council officers will continue to liaise with relevant support agencies where individuals are believed to be homeless.

Noonan/McGurk                                                                            Carried

26.     Recommendations from Committees (Agenda Item 13 reconvened (1))

26.1   Nelson Tasman Regional Landfill Business Unit - 9 September 2022

26.1.1 Nelson Tasman Regional Landfill Business Unit Annual Report 2021/22

Recommendation to Council CL/2022/208

 

That the Council

1.    Receives the Nelson Tasman Regional Landfill Business Unit Annual Report 2021/22 (1399367370-7648), the Nelson Tasman Regional Landfill Business Unit – Annual Financial Statements 2021/22.

Edgar/Courtney                                                                            Carried

The meeting adjourned from 11.06a.m. until 12.11p.m. at which time Councillors Skinner and Lawrey had joined the meeting.

27.     Nelson Marina Masterplan Deliberations Report (Agenda Item 21)

Document number R26111, agenda pages 379 - 505 refer.

Manager Nelson Marina, Nigel Skeggs, took the report as read and advised that minor editorial amendments had been made.    

Attendance: Councillor Rainey joined the meeting at 12.23p.m.

Resolved CL/2022/209

 

That the Council

1.    Receives the report Nelson Marina Masterplan Deliberations Report (R26111) and its attachment, Nelson Marina Masterplan (149934158-8518); and

2.    Notes the changes made to the Masterplan after public feedback from the consultation phase; and

3.    Adopts the Nelson Marina Masterplan as the guiding plan for developing Nelson Marina; and

4.    Notes that the proposed location of the new Sea Sports Facility at 305 Akersten is approved in principle, subject to the following:

i.             That further studies are completed to ensure that the proposed water-based structures will be safe for the launching and retrieval of all watercraft and participants in most weather conditions; and

ii.    That the land and buildings are independently deemed safe for the new activity; and

5.    Notes that iwi will be partnered with to ensure that each project within the Masterplan is designed to uphold the mana of tangata whenua, acknowledging that the design, layout and allocation of space is an opportunity to recognise and acknowledge that the marina is an area of significance to iwi; and

6.    Notes that the Nelson Marina Extension requires further work with Iwi and affected stakeholders to uphold the mana of tangata whenua and ensure that the environmental health of the Haven is preserved; and

7.    Notes officers will begin the design, timing, consenting and budgetary work for the priority projects as outlined in the Masterplan to feed into the Long Term Plan process; and

8.    Delegates to the Mayor, Chair of the Strategic Development and Property Subcommittee, and the Chief Executive, authority to approve any minor amendments required to the Masterplan prior to final public release.

 

The motion was put and a division was called:

For

Cr Bowater

Cr Brand

Cr Courtney

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Sanson

Cr Skinner

Her Worship the Mayor Reese (Chairperson)

Against

Nil

Abstained

Cr Rainey

The motion was carried 12 - 0.

Noonan/Brand                                                                              Carried

 

28.     Nelson Marina Management Council Controlled Organisation Formation (Agenda Item 22)

Document number R26940, agenda pages 506 - 531 refer.

Manager Nelson Marina, Nigel Skeggs, took the report as read.

Resolved CL/2022/210

 

That the Council

1.    Receives the report Nelson Marina Management Council Controlled Organisation Formation (R26940) and its attachment/s Nelson Marina CCO Constitution (149934158-8500); and

2.    Approves the incorporation of a Management Council Controlled Organisation company; and

3.    Approves the Constitution for the Management Council Controlled Organisation (149934158-8500); and

4.    Notes that a Management Agreement, Delegations and Structure between Council and the Management Council Controlled Organisation will be developed and brought to Council for approval prior to the appointment of Directors; and

5.    Notes the timeline for the transition of the governance of Nelson Marina from a Council managed facility to the Management Council Controlled Organisation; and

6.    Approves the recruitment process for the board positions as per Council policy - Appointment of Directors/Trustees of Council Controlled Organisations and Council Controlled Trading Organisations; and

7.    Agrees that further consultation is required with iwi partners as to how iwi representation can be achieved in the new governance model; and

8.    Delegates to the Chair of the relevant committee, Chief Executive and Group Manager Corporate Services to make adjustments and changes to company documentation, the recruitment process and proposed schedule, provided the changes are substantially consistent with the decisions made herein.

 

The motion was put and a division was called:

For

Cr Bowater

Cr Brand

Cr Courtney

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Cr Rainey

Cr Sanson

Cr Skinner

Her Worship the Mayor Reese (Chairperson)

Against

Nil

Abstained/Interest

Nil

The motion was carried 13 - 0.

Noonan/Edgar                                                                              Carried

 

29.     Recommendations from Committees (Agenda Item 13 reconvened (2))

 

29.1   Nelson Tasman Regional Landfill Business Unit - 9 September 2022

29.1.1 Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2023/2024

Resolved CL/2022/211

 

That the Council

1.        Receives the Nelson Tasman Regional Landfill Business Unit Draft Business Plan 2023/24 (1399367370-7649) for review and provide feedback to the Nelson Tasman Regional Landfill Business Unit, if required.

Edgar/Courtney                                                                            Carried

 

29.1.2 Nelson Tasman Regional Landfill Business Unit Governance Agreement Review Report

Resolved CL/2022/212

 

That the Council

1.        Receives the Draft Amended and Restated Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (A2921574), and the Draft Updated Terms of Reference for the Nelson Tasman Regional Landfill Business Unit (A2921572); and

2.    Approves, subject to Tasman District Council approval, the Draft Amended and Restated Deed of Agreement for the Nelson-Tasman Regional Landfill Business Unit (A2921574), and the Draft Updated Terms of Reference for the Nelson Tasman Regional Landfill Business Unit (A2921572).

Edgar/Courtney                                                                            Carried

 

29.2   Nelson Regional Sewerage Business Unit - 16 September 2022

29.2.1 Nelson Regional Sewerage Business Unit Annual Report 2021/2022

Resolved CL/2022/213

 

That the Council

1.        Receives the Nelson Regional Sewerage Business Unit Annual Report 2021/22 (R27151) and its attachment, the Nelson Regional Sewerage Business Unit – Annual Financial Statements 2021/22 (1080325921-64).

McGurk/Skinner                                                                            Carried

29.2.2 Nelson Regional Sewerage Business Unit Business Plan 2023/24

The Agenda incorrectly repeated the recommendation to adopt the Annual Report, the correct motion to receive the Business Plan was put.

Resolved CL/2022/214

 

That the Council

1.        Receives the Nelson Regional Sewerage Business Unit Draft Business Plan 2023/24 (1399367370-7649) for review and provide feedback to the Nelson Regional Sewerage Business Unit, if required..

McGurk/Skinner                                                                            Carried

         The meeting adjourned from 12.47p.m. until 1.38p.m.

30.     Elma Turner Library - Ceiling Tiles (Agenda Item 11 reconvened (2))

Document number R27194, agenda pages 100 - 108 refer.

Group Manager Corporate Services, Nikki Harrison, tabled excerpts of a draft report that set out an additional capital funding request for Elma Turner Library  (606908324-34801), which was removed from the original report as it was agreed by staff it would be better to include the information following the Detailed Seismic Assessment (DSA) report being received.

Members discussed a request for a review of events leading to the closure of Elma Turner Library,  and a report on options, noting that a full options analysis would incorporate looking at alternative venues, including those currently owned by Council.

With the leave of the mover, Councillor Edgar and seconder, Councillor Fulton, the motion was amended to provide clarity about the library building and library services

Resolved CL/2022/215

 

That the Council

1.        Receives the report Elma Turner Library - Ceiling Tiles (R27194) and its attachments (714127617-7600 and 714127617-7774);  and

2.        Requests officers to review the events leading to the closure of Elma Turner Library and report to the Audit Risk and Finance Subcommittee (or its successor); and

3.        Requests officers to report back, with urgency, a full options analysis for the Elma Turner Library building, including Library service delivery options.

Edgar/Fulton                                                                                 Carried

Attachments

1    606908324-34801 DRAFT Report exerpt - 25 Dec 2022 - Additional Capital Funding Request for ETL

 

31.     Status Report (Agenda Item 14)

Document number R26690, agenda pages 176 - 217 refer.

Manager Property Services, Rebecca Van Orden, provided an update on  Millers Acre recladding and advised work was expected to start in October 2022, it would be staged and final completion was expected in March 2023.  

Her Worship the Mayor noted the item would be revisited for further discussion if time permitted.

Resolved CL/2022/216

 

That the Council

1.        Receives the report Status Report (R26690) and its attachment (1982984479-4496).

O'Neill-Stevens/Noonan                                                                Carried

32.     Exclusion of the Public

Resolved CL/2022/217

 

That the Council

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:  

Her Worship the Mayor/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)

3

Council Meeting - Confidential Minutes - 25 August 2022

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)

·    Section 7(2)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

4

Confirmation of Confidential Minutes - 11 August 2022

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)

5

Status Report - Confidential

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

6

Mayor's Report  - Confidential

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 2.34p.m. and resumed in public session at 3.26p.m.

 

33.     Civic House Refurbishment Project (Agenda Item 17 reconvened (1))

Document number R27053, agenda pages 281 - 288 refer.

Her Worship the Mayor Reese advised the refurbishment project didn’t sit in isolation and was linked to the Elma Turner library and Climatorium projects,  and that Council needed time to reflect on rescinding the original resolution of 11 May 2021 and asked why Clauses 4 and 5 had not been actioned or reported on in the Status Report. 

Moved by Councillor Fulton,  seconded by Her Worship the Mayor Reese that only the report be received at this time. 

Resolved CL/2022/218

 

That the Council

1.        Receives the report Civic House Refurbishment Project (R27053).

Fulton/Her Worship the Mayor                                                       Carried

Chief Executive, Pat Dougherty expressed the same disappointment as others in the room at not being able to make progress with the project, reiterating the need to revisit the business case due to a hybrid working environment, sealevel rise, 3 Waters reform, RMA reform and the local government review.  He acknowledged the building was far from ideal in terms of attracting staff, but that other factors like workplace culture were just as important and the turnover rate was similar to most other Councils in the country.  He was seeking to go back and do a Better Business Case, reflecting the changes to the working environment.

 

Extension of Meeting Time

Resolved CL/2022/219

 

That the Council

1.        Extends the meeting time beyond six hours, pursuant to Standing Order 4.2.

Her Worship the Mayor/Bowater                                                    Carried

Attendance:  Councillor Skinner left the meeting at 4.23p.m.

Her Worship the Mayor Reese adjourned the item for further discussion at a later time.

34.     Interregnum Period Delegation (Agenda item 24)

Document number R27124, agenda pages 537 - 540 refer.

Manager Governance and Support Services, Devorah Nícuarta-Smith, took the report as read and noted a recent change of legislation meant the public notice declaring the election result was no longer required to be published in a local newspaper and this meant public notification of  results would be earlier.

Her Worship the Mayor raised the importance of the Mayoral Relief Fund continuing to operate given the ongoing need of people impacted by the weather event.  She sought an amendment to the recommendation to allow the Mayoral Relief Fund panel members to continue to operate until the new Council was sworn in.

The meeting adjourned from 4.45p.m. until 5.04p.m.

In response to discussion on the Mayoral Fund the Chief Executive advised his view that the legislation did not provide for the members of the Mayoral Relief Fund panel to continue however it was his intention to talk to the Mayor Elect and request the three current Elected Members remain as decision makers on the Mayoral fund. 

Resolved CL/2022/220

 

That the Council

1.    Receives the report Interregnum Period Delegation  (R27124); and

2.    Delegates the Chief Executive the power to make decisions in respect of urgent matters, from the day after the declaration of official results by the Electoral Officer until the new Council is sworn in; and

3.    Notes that any decisions made under this delegation would be taken in consultation with the Mayor-Elect (where a clear election result for this vacancy exists); and

4.    Further notes that any decisions made under this delegation will be reported to the first ordinary meeting of the new Council.

Courtney/Edgar                                                                            Carried

35.     Rates remission for landowners affected by the August 2022 rainfall event (Agenda Item 19)

Document number R27180, agenda pages 315 - 331 refer.

Group Manager, Corporate Services, Nikki Harrison, took the report as read and advised that officers would be writing to affected parties who had red or yellow stickered houses for more than 30 days offering assistance with applications rates remission.

Resolved CL/2022/221

 

That the Council

1.    Receives the report Rates remission for landowners affected by the August 2022 rainfall event  (R27180) and its attachment (839498445-7760); and

2.    Agrees that the August 2022 rainfall event qualifies as a natural calamity event for the purpose of applying the Rates Remission Policy for Land Affected by Natural Calamity; and

3.    Approves the criteria and level of remission rates for the August 2022 rainfall event, as set out in paragraphs 5.5 to 5.11 of this report; and

4.    Delegates the Group Manager Corporate Services and the Group Manager Environmental Management to determine applications for rates remission.

Edgar/Brand                                                                                 Carried

 

36.     Draft Urban Greening Strategy

Document number R27126, agenda pages 593 - 601 refer.

Manager Parks and Facilities, Rosie Bartlett, Team Leader Parks and Facilities Activity Management, Paul Harrington and Consultant Den Aitken presented the Strategy.  

Resolved CL/2022/222

 

That the Council

1.    Receives the report Draft Urban Greening Strategy (R27126) and its attachment (839498445-9177); and

2.    Approves the Draft Urban Greening Strategy (839498445-9177) for community feedback; and

3.    Delegates responsibility for agreeing to any minor amendments to the Draft Urban Greening Strategy (839498445-9177) to the Group Manager Community Services.

Fulton/Courtney                                                                            Carried

  

The meeting adjourned from 5.30p.m. until 6.19p.m. at which time Councillors Rainey and Skinner had left the meeting.

37.     Exclusion of the Public

Meg Matthews of Nelson Regional Development Agency was in attendance for Confidential Item 2: Nelson Regional Development Agency - Appointment of Directors of the Confidential agenda to answer questions and, accordingly, the following resolution was required to be passed:

Resolved CL/2022/223

 

That the Council

1.        Confirms, in accordance with sections 48(5) and 48(6) of the Local Government Official Information and Meetings Act 1987, that Meg Matthews remain after the public has been excluded, for Item 3 of the Confidential agenda (Nelson Regional Development Agency - Appointment of Directors), as she has knowledge relating to Director appointments that will assist the meeting.

Her Worship the Mayor/McGurk                                                     Carried

 

Resolved CL/2022/224

 

That the Council

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

3.        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:  

Her Worship the Mayor/McGurk                                                     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)

2

Nelson Regional Development Agency - Appointment of Directors

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

Open Space Operations and Maintenance Contract - Procurement Options

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)

9

Section 17A reviews since 2016

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)(b)(ii)

     To protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information

The meeting went into confidential session at 6.20p.m. and resumed in public session at 7.27p.m. Councillor Skinner had joined the meeting at 7.26p.m.

 

38.     Infrastructure Holdings Limited

Document number R27257, agenda pages 332 - 378 refer.

Group Manager Corporate Services, Nikki Harrison, took the report as read.

Her Worship the Mayor Reese advised the recommendation, which was strongly supported at Joint Shareholders Committee, was brought back to Council for reconsideration.

Councillor Courtney, seconded by Councillor Skinner moved the officer’s alternative option to approve unbudgeted expenditure of $231,000 with additional wording ‘to close out the project’.

Ms Harrison answered questions on iwi input, impact on the Standard and Porse rating, Council mechanisms for driving the group and noted that the decision to form a Holding Company had been made by Council when adopting the Long Term Plan 2021-2031.

Her Worship the Mayor foreshadowed moving the officer’s alternate motion, seconded by Councillor McGurk.

 

That the Council

1.     Approves unbudgeted operating expenditure of $231,000 in the 2022/23 financial year relating to Nelson City Council’s 50% share of the Infrastructure Holdings Limited project costs incurred by Port Nelson Limited and Councils legal costs to close out the project.

 

 The motion was put and a division was called:

For

Cr Brand

Cr Courtney

Cr Sanson

Cr Skinner

Against

Cr Bowater

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Her Worship the Mayor Reese (Chairperson)

Absent

Cr Rainey  

 

The motion was lost 4 - 8.

Courtney/Skinner                                                                           Lost

 

Extension of Meeting Time

Resolved CL/2022/225

 

That the Council

1.        Extends the meeting time beyond six hours, pursuant to Standing Order 4.2.

Her Worship the Mayor/Noonan                                                     Carried

The meeting adjourned from 8.35p.m. until 8.43p.m at which time Councillor Sanson had left the meeting.

 

Resolved CL/2022/226

 

That the Council

1.    Receives the report Infrastructure Holdings Limited (R27257) and its attachments (1511110536-309 and 1511110536-310).

Recommendation from the Joint Shareholders Committee 7 June 2022

The Council notes that:

Purpose

A.    The purpose of these resolutions is to seek the Council’s approval of the documents and transactions necessary to approve the:

a)    Restructuring Proposals (including the Initial Share Issue); and

b)    Financing Proposals (including the New Share Issue). 

B.    The Restructuring Proposals, Initial Share Issue, Financing Proposals and New Share Issue are explained below.

A new holding company for Port Nelson Limited and Nelson Airport Limited

C.    Nelson City Council and Tasman District Council (together, the Shareholders) have together been investigating the incorporation of a holding company which they will own in equal shares. The holding company will hold and administer investments in entities in which the Shareholders have a substantial interest for the benefit of the Nelson and Tasman regions, being Port Nelson Limited (PNL) and Nelson Airport Limited (NAL). 

D.    Nelson City Council and Tasman District Council through their Long Term Plan process and Joint Shareholders Committee (JSC), have each received and reviewed advice from Deloitte about operational synergies of holding investments, being PNL and NAL, in a holding company, and tax structure options.

E.    The name agreed for the holding company is Infrastructure Holdings Limited (IHL).

F.    The initial directors approved for IHL are Catherine Taylor, Paul Steere, Gerrard Wilson and Paul Zealand and an independent chairperson is being recruited.

Restructuring Proposals

G.    As part of the proposal to incorporate IHL, it is proposed that each of the Shareholders transfer all their shares in PNL and NAL to IHL (Share Sale) for $8,446,000 in total (Purchase Price). The Purchase Price will be owed to the Shareholders in equal portions (being $4,223,000 each). The Crown holds, and will continue to hold, one special “Kiwi Share” in NAL.

H.    The Purchase Price allocation is:

a)    $2,400,000 for the shares in NAL; and

b)    $6,046,000 for the shares in PNL.

I.     Nelson City Council and Tasman District Council will each subscribe for 42,230 ordinary shares in IHL (being 84,460 ordinary shares in total) (Initial Shares), at an issue price of $100.00 per share (Initial Share Issue). The total subscription amount for the Initial Shares is therefore $8,446,000 (Initial Subscription Amount), which is equal to the Purchase Price. 

J.     Accordingly, the Purchase Price will be satisfied on a cashless basis by set-off against the Initial Subscription Amount.

K.    The sale of shares in PNL and NAL and the subscription for the Initial Shares will be referred to in these resolutions as the “Restructuring Proposals”.

Financing Proposals

L.    The New Zealand Local Government Funding Agency Limited (LGFA) is a limited liability company owned by central government and local authorities. It was established to borrow funds and then on-lend those funds to local authorities and (now) council-controlled trading organisations (CCTOs) at lower margins than those local authorities and council-controlled organisations would otherwise pay. 

M.    Currently, PNL and NAL service their debt requirements through ordinary bank borrowing from Westpac New Zealand Limited (Westpac). However, it is projected that PNL’s and NAL’s debt requirements and financing costs may increase over the next 10+ years to meet infrastructure-upgrade demands.

N.    Given the projected increase in PNL’s and NAL’s debt requirements and financing costs, IHL’s primary purpose is to operate as a treasury vehicle for PNL and NAL. To achieve this purpose, it is further proposed that (Financing Proposals) IHL will:

a)    join the LGFA borrowing programme (LGFA Accession) as a CCTO, following which, IHL will be able to borrow funds directly from LGFA by issuing securities to LGFA;

b)    enter into borrowing and risk hedging facilities with Westpac, which is PNL’s and NAL’s current bank; and

c)    on-lend amounts borrowed from the LGFA borrowing programme and Westpac to PNL and NAL under intra-group funding arrangements.

O.    Joining the LGFA borrowing programme will enable IHL to access cheaper core debt on behalf of PNL and NAL. As a “port company” under the Port Companies Act 1988, PNL is not permitted to join LGFA and NAL does not have the scale to make joining LGFA economical.  It is considered that, once implemented, the Financing Proposals will deliver considerable financial benefits, including savings in financing costs for PNL and NAL and, consequently, increased dividend return to Nelson City Council and Tasman District Council (as the ultimate owners of PNL and NAL). Nelson City Council and Tasman District Council through their Long Term Plan process and the JSC have each received and reviewed advice from Deloitte about LGFA funding benefits.

P.    PNL and NAL will continue to require the flexibility offered by Westpac’s transactional banking products. IHL will also enter into borrowing and risk hedging facilities with Westpac for working capital requirements and risk-management (such as interest-rate hedging).

The LGFA Accession and Westpac facilities

Q.    LGFA and Westpac will require certain credit support as conditions to the LGFA Accession and the availability of the Westpac facilities. Such credit support will include:

a)    a subscription from the Shareholders for an agreed amount of uncalled and unpaid equity capital in IHL (further details are described below);

b)    IHL, PNL and NAL will each cross-guarantee each other’s obligations to LGFA, Westpac as lender under borrowing facilities and Westpac as counter-party to risk-management facilities (together, the Finance Parties); and

c)    IHL, PNL and NAL will each grant general security over all of their personal property in favour of the Finance Parties.  In the case of IHL, this will include security over its right to call for uncalled and unpaid equity capital.

R.    As mentioned above, it will be a condition to the LGFA Accession and the availability of the Westpac facilities that the Shareholders subscribe for, and IHL issues to the Shareholders (New Share Issue), a further 1,165,000 ordinary shares each (totalling 2,330,000 ordinary shares) in IHL (New Shares) for an issue price of $100.00 per share. The total amount payable for the New Shares will therefore be $233,000,000 (Issue Amount). The Issue Amount will remain uncalled and unpaid until such time as the directors of IHL make a call on the New Shares for the Issue Amount. 

Shareholder approvals

S.    The Restructuring Proposals and the Financing Proposals will require the approval of the Shareholders as:

a)    the proposals are, or may be, “major transactions” (as defined in section 129 of the Companies Act 1993 (Act));

b)    the Initial Share Issue and the New Share Issue require the agreement of IHL’s entitled persons (as that term is defined in the Act) for the purposes of section 107(2) of the Act. The only entitled persons of IHL will be the Shareholders; and

c)    Nelson City Council and Tasman District Council (as the shareholders of IHL) must consent, for the purposes of section 50 of the Act and for all other purposes, to becoming the holder of the Initial Shares and the New Shares.

T.    Accordingly, IHL’s board of directors will, at the relevant times, separately request that Tasman District Council and Nelson City Council (as shareholders and entitled persons of IHL) confirm and approve IHL’s entry into, execution and performance, of the:

a)    Restructuring Proposals (including the Initial Share Issue); and

b)    Financing Proposals (including the New Share Issue),

by separate unanimous resolutions and entitled persons’ agreements.  The unanimous resolutions and entitled persons’ agreements for the Restructuring Proposals and the Financing Proposals are together referred to as the “Unanimous Shareholder Resolutions and Entitled Persons’ Agreements”.

Next steps

U.    In order to incorporate IHL and give effect to the Restructuring Proposals, the Shareholders will need to:

a)      register IHL as a limited liability company on the New Zealand Companies Office and each complete the Companies Office requirements in relation to the incorporation of IHL (such as shareholder consent forms) (Companies Office Forms);

b)      appoint directors to the board of IHL (including an independent chairperson);

c)      cause IHL to adopt the constitution in the form attached (the Constitution);

d)      enter into a shareholders’ agreement (which will include the subscription provisions for the Initial Shares) with IHL, in the form attached (the Shareholders’ Agreement);

e)      enter into a sale and purchase agreement with IHL relating to the transfer of shares in PNL and NAL in the form attached (the Sale and Purchase Agreement);

f)      execute and deliver the share transfer forms (in the form attached) in relation to the Sale and Purchase Agreement (the Share Transfer Forms); and

g)      any other documents necessary or desirable in connection with the Restructuring Proposals.

The Companies Office Forms, Shareholders’ Agreement, Sale and Purchase Agreement, Share Transfer Forms and any other documents captured by paragraph U.g) above, are together referred to as the “Restructuring Documents”, and the transactions contemplated by the Restructuring Documents are referred to as the “Restructuring Transactions”.

V.    In order to give effect to the Financing Proposals, each of the Shareholders will need to enter into:

a)      a subscription agreement (in the form attached) with IHL, under which the Shareholders will subscribe for the New Shares (Subscription Agreement);

b)      (as part of the LGFA Accession) accession deeds to the multi-issuer deed and notes subscription agreement (which Tasman District Council and Nelson City Council are each already a party to) (Accession Deeds); and

c)      any other documents necessary or desirable in connection with the Financing Proposals.

The Subscription Agreement, the Accession Deeds and any other documents captured by paragraph 0 are together referred to as the “Financing Documents” and the transactions contemplated by the Financing Documents are referred to as the “Financing Transactions”.

Documents

W.   The Council tables the most recent drafts of the Restructuring Documents, the Subscription Agreement and the Unanimous Shareholder Resolutions and Entitled Persons’ Agreements.

X.    The Council has not tabled copies of the Accession Deeds because they are not yet available for the Council to review and approve.  However, the Accession Deeds will be based on the standard form for accession deeds scheduled to the LGFA Multi-Issuer Deed and Notes Subscription Agreement respectively.

That the Council resolves:

1.    the Council consents, for the purposes of section 50 of the Act and for all other purposes, to being the joint owner in equal shares of the Initial Shares and the New Shares;

2.    the form of the Constitution be approved, and the Shareholders will cause IHL to adopt the Constitution;

3.    the Restructuring Documents and the Restructuring Transactions (including, specifically, the Initial Share Issue) are approved, and any pre-emptive rights available to the Shareholders in relation to the Share Sale are to be waived in the Sale and Purchase Agreement;

4.    the Financing Documents and the Financing Transactions (including, specifically, the New Share Issue) are approved;

5.    the forms of the Unanimous Shareholder Resolutions and Entitled Persons’ Agreements are approved;

6.    the Council enters into and, following execution, delivers and performs its obligations under, each of the Restructuring Documents and the Financing Documents and that these documents may be executed by:

a)    (in the case of agreements) the Chief Executive; and

b)    (in the case of deeds) two elected members,

on behalf of the Council, subject to any minor amendments cleared by both Tasman District Council’s and Nelson City Council’s legal advisors;

7.    when requested to do so by the board of IHL, the Chief Executive is authorised to sign the Unanimous Shareholder Resolutions and Entitled Persons’ Agreements on behalf of the Council, subject to any minor amendments cleared by both TDC’s and NCC’s legal advisors;

8.    the Chief Executive is authorised on behalf of the Council to, subject to clearance by both Tasman District Council’s and Nelson City Council’s legal advisors:

a)    approve any further minor amendments to the Restructuring Documents, the Financing Documents and the Unanimous Shareholder Resolutions and Entitled Persons’ Agreements prior to their execution; ands

b)    enter into, execute, and deliver such other agreements, instruments, notices, communications, and other documents; and

c)    do such other things, in connection with the Restructuring Documents and the Restructuring Transactions, the Financing Documents and the Financing Transactions, and the Unanimous Shareholder Resolutions and Entitled Persons’ Agreements, as the Chief Executive may consider necessary.

and

9.    Approves unbudgeted operating expenditure of $231,000 in the 2022/23 financial year relating to Nelson City Council’s 50% share of the Infrastructure Holdings Limited project costs incurred by Port Nelson Limited and Councils legal costs to be offset against the Port Nelson Limited dividends received.

 

The foreshadowed motion was put and a division was called:

For

Cr Bowater

Cr Edgar

Cr Fulton

Cr Lawrey

Cr O'Neill-Stevens

Cr McGurk

Cr Noonan

Her Worship the Mayor Reese (Chairperson)

Against

Cr Brand

Cr Courtney

Cr Skinner

Absent

Cr Rainey

Cr Sanson

The motion was carried 8 - 3.

Her Worship the Mayor/McGurk                                                     Carried

 

39.     Civic House Refurbishment Project (Agenda Item 17 reconvened (2))

Document number R27053, agenda pages 281 - 288 refer.

Attendance: Councillor Lawrey left the meeting at 9.00p.m.

The report had previously been received and Councillor Edgar, seconded by Councillor Courtney proposed an amendment to reiterate that  a further report was required.

Resolved CL/2022/227

 

That the Council

2.        Agrees that the information provided in Report R27053 does not support a staged development of Civic House as previously resolved at the Council meeting on 11 May 2021 .    

3.        3.    Notes that officers are still to report back on Council meeting 11 May 2021, resolution CL/2021/049, clause (5):

“(5) Requests the Chief Executive to provide a      further report with regards to appropriate levels       of earthquake strengthening.”.

Edgar/Courtney                                                                            Carried

 

40.     Mayor's Report

Document number R27232, agenda pages 55 - 56 refer.

Resolved CL/2022/228

 

That the Council

1.    Receives the report Mayor's Report (R27232).

Her Worship the Mayor/Edgar                                                        Carried

 

Karakia Whakamutanga

 

 

41.     Restatements

 

It was resolved while the public was excluded:

 

 

2

Nelson Regional Development Agency - Appointment of Directors

 

Agrees the decision and the report only be publicly available once the appointments have been made public by the Nelson Regional Development Agency.

 

5

Mayor's Report  - Confidential

 

Amends Clauses (4) (5) and Clause (6) of Resolution CL/2022/184 passed by Council on 25 August 2022 to include three iwi representatives in the Chief Executive Appointment Panel, being one from each waka (Tokomaru, Tainui, Kurahaupō) and to ensure transition of the Chief Executive appointment process

4.    Appoints Her Worship the Mayor Reese, Deputy Mayor Edgar, Councillors Brand and Rainey, (with Councillor Courtney as alternate), a Te Tai Ihu recommended iwi representative three iwi representatives (being one from each waka - Tokomaru, Tainui, Kurahaupō), and Annika Striefland as lead independent adviser to the Chief Executive Appointment Panel; and

5.    Notes that this Panel will dissolve at the end of triennium, 07 October 2022 the day before the Council-elect is sworn in, and that the Panel has no decision-making powers; and

6.    Recommends to the Council-elect that the incoming Mayor, incoming Deputy Mayor, two Councillors, the Te Tai Ihu iwi recommended representative three iwi representatives (being one from each waka - Tokomaru, Tainui, Kurahaupō), and an independent adviser Annika Streefland be appointed to the Chief Executive Appointment Panel;”.

 

6

Open Space Operations and Maintenance Contract - Procurement Options

 

1.     Receives the report Open Space Operations and Maintenance Contract - Procurement Options (R26772) and it’s attachments (606908324-34575, 606908324-21916, 606908324-34513); and

2.     Approves a two-year extension of the Open Space Operations and Maintenance contract with Nelmac to 30 June 2025;.

3.     Notes that the decision to extend the Open Space Operations and Maintenance contract with Nelmac is inconsistent with the Procurement Policy and there is no intention to amend the Procurement Policy. This decision is being made to recognise Council’s strategic relationship with Nelmac and to align with the Long Term Plan 2024-34.

4.     Agrees that costs of the Open Space Operations and Maintenance Contract will be included in Council’s Long Term Plan.

5.     Notes that the management of Conservation Reserves, Landscape Reserves, Rural Esplanade Reserves, the Waahi Taakaro Golf Course, the Crematorium and Saxton Field will be included in the Open Space Operations and Maintenance Contract.

6.     Agrees that the decision only be made publicly available.

There being no further business the meeting ended at 9.14pm .

 

CONFIRMED AS A TRUE AND CORRECT RECORD BY THE CHAIRPERSON AND CHIEF EXECUTIVE UNDER STANDING ORDER 26.4:

                                                       Chairperson                                     Date

 

                                                       Chief Executive                                 Date