NAPIER CITY COUNCIL

Civic Building

231 Hastings Street, Napier

Phone:  (06) 835 7579

www.napier.govt.nz

 

 

 

Finance Committee

 

 

Open

Agenda

 

 

Meeting Date:

Wednesday 22 March 2017

Time:

3pm

Venue:

Main Committee Room
3rd floor Civic Building
231 Hastings Street
Napier

 

 

Council Members

Councillor Wise (In the Chair), Mayor, Councillors  Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White and Wright

Officer Responsible

Director Corporate Services, Adele Henderson

Administrator

Governance Team

 

 

Next Finance Committee Meeting

Wednesday 3 May 2017


Finance Committee22 March 2017 Open Agenda

ORDER OF BUSINESS

Apologies

CONFLICTS OF INTEREST

Public forum

Announcements by the Mayor

Announcements by the Chairperson

Announcements by the Management

Confirmation of Minutes (page 56 refers)

That the Minutes of the Finance Committee meeting held on Wednesday, 8 February 2017 be taken as a true and accurate record of the meeting.

Notification and Justification of Matters of Extraordinary Business

(Strictly for information and/or referral purposes only).

Agenda Items

1          Hawke's Bay Airport Limited - Statement of Intent.................................................... 3

2          Hawke's Bay Airport Limited Half Yearly Report .................................................... 10

3          Business Hawke's Bay Report ................................................................................ 27

4          Hawke's Bay Museums Trust - Half yearly report to 31 December 2016............... 29

5          HB Museums Trust Statement of Intent 2017 - 19.................................................. 43

6          HB LASS Limited - Half Yearly Report.................................................................... 49

7          Seismic Assessments of Council Buildings ............................................................ 52  

Public Excluded

Nil 


Finance Committee22 March 2017 Open Agenda

Agenda Items

1.      Hawke's Bay Airport Limited - Statement of Intent

Type of Report:

Procedural

Legal Reference:

N/A

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

1.1     Purpose of Report

To identify any changes or any comment Council wishes to make to Hawke’s Bay Airport Limited in regard to the Draft Statement of Intent.

 

Officer’s Recommendation

That the draft Statement of Intent of the Hawke’s Bay Airport Limited be received.

 

 

MAYOR’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

1.2     Background Summary

The Hawke’s Bay Airport Limited is a Council Controlled Organisation (CCO).  It is a company incorporated under the Companies Act and is owned by the Crown, Hastings District Council and Napier City Council.  Napier City Council has a 26% shareholding.

 

The Local Government Act 2002 requires Council Controlled Organisations (CCO) to submit a Statement of Intent to their shareholders for consideration.

 

The Hawkes Bay Airport Ltd Draft Statement of Intent is attached.

1.3     Significance and Consultation

None

1.4     Implications

Financial

None

Social & Policy

None

Risk

None

 

1.5     Attachments

a       Hawke's Bay Airport Draft Statement of Intent   


Finance Committee22 March 2017 Open Agenda


 


 


 


 


Finance Committee22 March 2017 Open Agenda

2.      Hawke's Bay Airport Limited Half Yearly Report

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Document ID:

340167

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

2.1     Purpose of Report

To receive the half-yearly report to shareholders from Hawke’s Bay Airport Limited to 31 December 2016.

 

 

 

Officer’s Recommendation

That the Hawke’s Bay Airport Limited half-yearly report to shareholders, to December 2016 be received.

 

 

CHAIRPERSON’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

2.2     Background Summary

Section 66 of the Local Government Act 2002 requires that a Council-controlled organisation must report to Council each half year.  However, Section 65 requires regular monitoring of performance of a Council Controlled Organisation.

 

The Hawke’s Bay Airport Limited is a Council-controlled organisation.  It is a company incorporated under the Companies Act and is owned by the Crown, Hastings District Council and Napier City Council.  Napier City Council has a 26% shareholding.  

 

The Company produces separate annual accounts. No payments are made by Napier City Council to the Company and there is no financial provision included in Council budgets. The Napier City Council share in the Company is included in its annual financial statements as an investment, valued using the equity method of accounting.

 

In accordance with Part 5, Section 65 of the Local Government Act 2002, Napier City Council has a responsibility to regularly undertake performance monitoring of the Hawke’s Bay Airport Limited.  The half yearly report to shareholders to 31 December 2016 has been received from Hawke’s Bay Airport Limited for Council’s information. 

 

 

2.3     Issues

None

2.4     Significance and Consultation

None

2.5     Implications

Financial

None

Social & Policy

None

Risk

None

 

 

 

2.6     Attachments

a       Hawke's Bay Airport Ltd Half Yearly Report to 31 December 2016   


Finance Committee22 March 2017 Open Agenda


 


 


 


 


 


 


 


 


 


 


 


 


 


 


Finance Committee22 March 2017 Open Agenda

3.      Business Hawke's Bay Report

Type of Report:

Procedural

Legal Reference:

N/A

Document ID:

344753

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

3.1     Purpose of Report

To provide Council with an update report from Business Hawke’s Bay (BHB).

 

Officer’s Recommendation

That the Council resolve that the report from Business Hawke’s Bay be received.

 

 

CHAIRPERSON’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

3.2     Background Summary

Council agreed as part of the Long Term Plan 2015-2025 to fund $110,000 to BHB over three years.  BHB is set up as a collaborative effort to:

 

   Foster business development and business growth in Hawke’s Bay

   Promote Hawke’s Bay as an attractive place to start, grow, and relocate businesses

   Attract investment to support commercialisation and expansion into international markets. 

 

BHB prepares six monthly reports to Council to keep Council updated with its activities.

 

BHB will present on their report at the Committee meeting. 

 

3.3     Issues

None

3.4     Significance and Consultation

None

3.5     Implications

Financial

None

Social & Policy

None

Risk

None

 

 

3.6     Attachments

Nil


Finance Committee22 March 2017 Open Agenda

4.      Hawke's Bay Museums Trust - Half yearly report to 31 December 2016

Type of Report:

Legal

Legal Reference:

Local Government Official Information and Meetings Act 1987

Document ID:

345481

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

4.1     Purpose of Report

To provide the half-yearly report for 2016/17 for the Hawke’s Bay Museum’s Trust for adoption.

 

Officer’s Recommendation

a.       That Council adopt the Hawke’s Bay Museums Trust half-yearly report to 31 December 2016.

 

 

CHAIRPERSON’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

4.2     Background Summary

The Local Government Act 2002 sets out monitoring and reporting requirements of council organisations (Part 5, Section 66, Local Government Act 2002).  The Hawke’s Bay Museums Trust is a council-controlled organisation as defined under Part 1, Section 6, of the Local Government Act 2002.

 

The Hawke’s Bay Museums Trust must produce a half-yearly report within 2 months after the end of the first half of each financial year.  The Board is required to deliver this report to shareholders.  This report must also include any information outlined in its Statement of Intent.

 

The half-yearly report covers the period from 1 July 2016 – 31 December 2016. 

4.3     Issues

None

4.4     Significance and Consultation

None

4.5     Implications

Financial

None

Social & Policy

None

Risk

None

4.6     Options

              None

 

 

4.7     Attachments

a       HBMT Half yearly report    


Finance Committee22 March 2017 Open Agenda


 


 


 


 


 


 


 


 


 


 


 


Finance Committee22 March 2017 Open Agenda

5.      HB Museums Trust Statement of Intent 2017 - 19

Type of Report:

Legal

Legal Reference:

Local Government Act 2002

Document ID:

345482

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

5.1     Purpose of Report

To provide the draft Statement of Intent 2017 – 19 for the Hawke’s Bay Museums Trust to Council for its consideration as part of the reporting requirements for council-controlled organisations. 

 

Officer’s Recommendation

That the HB Museums Trust Statement of Intent 2017 - 19 be received and any feedback is provided to the Trust for their consideration.

 

CHAIRPERSON’S RECOMMENDATION

That the officer’s recommendation be adopted.

5.2     Background

The Local Government Act 2002 sets out monitoring and reporting requirements of council organisations (Part 5, Section 66, Local Government Act 2002).  The Hawke’s Bay Museums Trust is a council-controlled organisation as defined under Part 1, Section 6, of the Local Government Act 2002.

 

5.3     Implications

Financial

None

Social & Policy

None

Risk

None

 

5.4     Attachments

a       Draft Statement of Intent 2017-19   


Finance Committee22 March 2017 Open Agenda


 


 


 


 


Finance Committee22 March 2017 Open Agenda

6.      HB LASS Limited - Half Yearly Report

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

6.1     Purpose of Report

To consider the Hawke’s Bay Local Authority Shared Services Limited (HB LASS Ltd) half yearly report to 31 December 2016.

 

Officer’s Recommendation

That the Council resolve that the HB LASS half yearly report to 31 December 2016 be received.

 

CHAIRPERSONS RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

6.2     Background Summary

HB LASS Ltd was established to develop opportunities to address the most cost effective elements of the purpose of Local Government as set out in Section 3 of the Local Government Act 2002.

 

The attached contains a statement of Financial Performance and Statement of Financial Position for the half-year ended 31 December 2016. There have been no movements in equity.

 

6.3     Significance and Consultation

None

6.4     Implications

Financial

None

Social & Policy

None

Risk

None

 

6.5     Attachments

a       HBLASS Half yearly report to 31 December 2016   


Finance Committee22 March 2017 Open Agenda


 


Finance Committee22 March 2017 Open Agenda

7.      Seismic Assessments of Council Buildings

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

344798

Reporting Officer/s & Unit:

Bryan  Faulknor, Manager Property 

 

7.1     Purpose of Report

To update Council on the progress regarding Seismic Assessments of Council owned buildings.

 

Officer’s Recommendation

a.       That the update report on progress regarding Seismic Assessment of Council owned buildings be received.

 

CHAIRPERSON’S RECOMMENDATION

That the Council resolve that the officer’s recommendation be adopted.

 

7.2     Background Summary

Council has been progressively carrying out structural seismic assessments of major Council owned buildings.

 

Attached is a Schedule of buildings showing the current status with regard to these assessments.

 

In general, higher risk older buildings and those two storied and above have been assessed first. In addition, buildings with planned upgrades are assessed to ensure that any required strengthening work is factored into the redevelopment project.

 

Detailed Seismic Assessments on single storied houses, modern newer buildings, and other single storied buildings such as implement sheds, changing rooms, toilets are not programmed at this stage. These buildings are deemed lower risk and as a result any assessment would be appropriate for the nature and style of the building.

7.3     Issues

A building with less than 34% of the New Building Standard (% NBS) is categorised as Earthquake Prone.

 

Where strengthening works are carried out, it is prudent to design work to achieve a NBS rating of as close as is practically possible to 100% with a minimum of 67% NBS.

 

For any Council buildings that have been deemed as earthquake prone, Council has approved and planned strengthening works within a reasonable timeframe.  Where appropriate, some facilities have remained open pending strengthening depending on the % NBS.  In these instances, Council has provided notification to users and staff in the building with information regarding the status.  

 

Of the 27 individual Detailed Seismic Assessments completed to date, 9 buildings have been deemed earthquake prone.

 

              Strengthening works now completed

   Meeanee Memorial Hall

   Meeanee Indoor Sports Centre

   King Georges Hall

   Ivan Wilson Pool Building

   Napier Conference Centre

   Harris Stand and old lighting towards at McLean Park

 

    Strengthening works in progress

   Greenmeadows East Community Hall (Open)

 

    Strengthening works on hold pending review of future use

   Taradale Plunket Rooms (Vacant)

   Memorial Square Rooms (Closed)

   Faraday Centre (Open) – Owned by NZ Defence Force and operated by Council - Strengthening on hold pending review of site.

 

Detailed Seismic Assessments are currently underway for the Pettigrew Green Arena (on behalf of the stakeholders).

 

The original assessments for the Library and Civic Buildings are being reviewed using the latest assessment technology. This is part of the first stage of the Civic Buildings Campus upgrade project and is required to confirm current building % NBS.

7.4     Significance and Consultation

N/A

7.5     Implications

Financial

 

Minor works were funded from existing budgets. In addition, funding of $1.5m was allocated for Seismic Strengthening as part of the 2015 – 2025 Long Term Plan. Of this, $1.2m was allocated to the Napier Conference Centre Redevelopment project and the remainder has been earmarked in the first instance to the Greenmeadows East Community Hall strengthening.

Social & Policy

N/A

Risk

Earthquake Prone Buildings obviously present a risk to life in the event of a major earthquake.

 

Council is being responsible in progressively assessing its buildings. In many cases Council has exceeded the requirements of its own regulatory policies and Central Government Legislation in terms of which buildings are required to be assessed.

 

Most major buildings have or are being assessed. A strategy for assessments of lower risk single storied buildings along with newer modern buildings is yet to be determined. This will be developed in conjunction with Council’s regulatory division taking into account recently amended legislation.

 

 

 

7.6     Attachments

a       Napier City Council Building Seismic assessments   



 


 

NAPIER CITY COUNCIL

Civic Building

231 Hastings Street, Napier

Phone:  (06) 835 7579

www.napier.govt.nz

 

 

 

Finance Committee

 

 

Open

MINUTES

 

 

Meeting Date:

Wednesday 8 February 2017

Time:

3pm-3.12pm and reconvened from 4.12pm-4.13pm

Venue:

Main Committee Room
3rd floor Civic Building
231 Hastings Street
Napier

 

 

Present:

Councillor Wise (Chair) Councillors Boag, Brosnan, Dallimore, Hague, Jeffery, McGrath, Price, Tapine, Taylor, White and Wright

In Attendance:

Director Infrastructure Services, Director Community Services, Manager Communications and Marketing, Manager Sports and Recreation, Chief Financial Officer, Manager Visitor Experiences, Manager Community Services, Manager Property, Venues Manager, Communications Specialist, Team Leader Governance, Governance Advisor

 

 

 


Finance Committee22 March 2017 Open Agenda

 

Apologies

 

Apologies

Committee's Recommendation

Councillors Wise / Wright

That the apology from Mayor Dalton be accepted.

CARRIED

 

CONFLICTS OF INTEREST

Nil

Public forum

Nil

Announcements by the Mayor

Nil

Announcements by the Chairperson

Adjournment of Meeting

Committee's Recommendation

Councillors Wise / Boag

That the meeting adjourn after the open agenda to allow the open agenda of the Community Services Committee to be taken, and that the Finance Committee reconvene at the conclusion of the Community Services Committee.   

 

CARRIED

 

Announcements by the Management

Nil

Confirmation of Minutes

Councillors Price / Dallimore

That the Minutes of the meeting head on 29 November 2016 were taken as a true and accurate record of the meeting.

CARRIED

 

Agenda Items

1.      Mayoral Travel

Type of Report:

Procedural

Legal Reference:

N/A

Document ID:

337577

Reporting Officer/s & Unit:

Jane McLoughlin, Team Leader Governance

 

1.1     Purpose of Report

To request Council’s approval for the Mayor to travel to the United States for the purposes of research and relationship building in preparation for the National Aquarium of New Zealand expansion project. 

 

Committee's Recommendation

Councillors Wright / Hague

a.       That, in terms of Section 82 (3) of the Local Government Act 2002, the principles set out in that section have been observed in such manner that the Napier City Council considers, in its discretion, it is appropriate to make decisions on the recommendation; and therefore

b.       That a DECISION OF COUNCIL be made approving the Mayor to travel with officials to the United States in March 2017 for the purposes of research and relationship building in preparation for the National Aquarium of New Zealand expansion project.

 

CARRIED

Councillors Taylor / Price

That, in terms of Section 82 (3) of the Local Government Act 2002, that the principles set out in that section have been observed in such manner that the Napier City Council considers, in its discretion, is appropriate to make decisions on the recommendation.

CARRIED

 

Council Resolution

Councillors Wright / Brosnan

That a DECISION OF COUNCIL be made approving the Mayor to travel with officials to the United States in March 2017 for the purposes of research and relationship building in preparation for the National Aquarium of New Zealand expansion project.

 CARRIED

 


 

 

 

2.      Local Government Official Information Act Requests - Update to Charges

Type of Report:

Operational and Procedural

Legal Reference:

Local Government Official Information and Meetings Act 1987

Document ID:

336110

Reporting Officer/s & Unit:

Deborah Smith, Governance Advisor

 

2.1     Purpose of Report

To outline the proposed changes to charges of Local Government Official Information and Meetings Act requests.

 

At the Meeting

It was clarified that the Council will amend its charges in line with any further updates from the Ministry of Justice.  In response to a further question around what constitutes a request under the Local Government Official Information and Meeting Act, officials advised that any request for information comes under the Act however some requests are very simple to respond to and therefore do not need to go through a formal process.  Officials also advised as outlined in the report, that charging would be applied on a case by case basis.  

Committee's Recommendation

Councillors Brosnan / White

a.       That the charges used by Napier City Council for requests under the Local Government Official Information and Meetings Act 1987 be updated to the charges recommended in the Ministry of Justice Charging Guidelines.

b.       The charges will be as follows: $38 per half hour of staff time after the first hour, $0.20 cents per page for photocopying in excess of 20 pages, calculated as per the formula provided in the Office of the Ombudsman Guidelines June 2016.

 

CARRIED

 

 

3.      Contribution towards artwork purchase by Hawke's Bay Museums Trust

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

336993

Reporting Officer/s & Unit:

Caroline Thomson, Chief Financial Officer

 

3.1     Purpose of Report

To seek Council approval to contribute $12,000 towards the Hawke’s Bay Museums Trust purchase of artworks by Jono Rotman entitled ‘Omarunui’.

 

At the Meeting

General agreement was expressed that this is considered a unique opportunity to purchase an entire collection of art which is relevant to the heritage of Hawke’s Bay, in partnership with other Councils and organisations. 

It was clarified that this request should not set a precedent and be taken on its merit.  Officials advised that there was no record of a similar opportunity being brought to Council in the past. 

Committee's Recommendation

Councillors Jeffery / White

a.       That Council approve a financial contribution of $12,000 towards the Hawke’s Bay Museums Trust purchase of artworks by Jono Rotman entitled ‘Omarunui’; and

b.       That the contribution of $12,000 be funded from Council’s contingency fund. 

 

CARRIED

 

 

4.      Napier Conference Centre - temporary charges March-June 2017

Type of Report:

Information

Legal Reference:

Local Government Act 2002

Document ID:

337525

Reporting Officer/s & Unit:

Glenys  Fraser, Venues Manager

 

4.1     Purpose of Report

To outline Napier City Council’s temporary approach to charging fees for use of the new spaces created in the upgrade of the Napier Conference Centre. 

 

At the Meeting

At the request of Councillors, officials confirmed that the schedule of charges would specify that funerals are considered community events and that a report clarifying the definition of community versus commercial would be brought to Council as part of the annual planning cycle. 

Committee's Recommendation

Councillors Wright / Dallimore

a.       That Council receives the report titled Napier Conference Centre – Temporary Charges March-June 2017.

 

CARRIED

 

The meeting was adjourned at 3.12pm in order to commence the open agenda of the Community Services Committee while the public were present. 

 

The meeting reconvened at 4.12pm.


 

 

 

 

PUBLIC EXCLUDED ITEMS

 

 

Councillors Wise / Boag

That the public be excluded from the following parts of the proceedings of this meeting, namely:

 

1.         Bid for 2018/19 All Blacks Test

2.         Parklands Residential Subdivision, Area 3, Stage 4 Civil Works

3.         Hawke's Bay Airport Limited - Report to Shareholders

 

CARRIED

 

The general subject of each matter to be considered while the public was excluded, the reasons 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 were as follows:

 

GENERAL SUBJECT OF

EACH MATTER TO BE CONSIDERED

REASON FOR PASSING THIS RESOLUTION IN RELATION TO EACH MATTER

GROUND(S) UNDER SECTION 48(1) TO THE PASSING OF THIS RESOLUTION

1.  Bid for 2018/19 All Blacks Test

7(2)(i) Enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

2.  Parklands Residential Subdivision, Area 3, Stage 4 Civil Works

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

3.  Hawke's Bay Airport Limited - Report to Shareholders

7(2)(h) Enable the local authority to carry out, without prejudice or disadvantage, commercial activities

48(1)A That the public conduct of the whole or the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist:
(i) Where the local authority is named or specified in Schedule 1 of this Act, under Section 6 or 7  (except 7(2)(f)(i)) of the Local Government Official Information and Meetings Act 1987.

 

 

 

 

The meeting concluded at 4.13pm. 

 

 

 

APPROVED AND ADOPTED AS A TRUE AND ACCURATE RECORD OF THE MEETING

 

 

 

 

CHAIRPERSON:_________________________ DATE OF APPROVAL:____________________