Finance Committee – 22 March 2017 – Open Minutes
Apologies
None
CONFLICTS
OF INTEREST
None
Public
forum
None
Announcements
by the Mayor
None
Announcements
by the Chairperson
None
Announcements
by the Management
Council
participation in the Tremain’s triathlon was recognised with the
Council trophy for most teams.
Confirmation
of Minutes
|
Councillors Taylor / Boag
That the Minutes of the meeting head
on 8 February 2017 were taken as a true and accurate record of the meeting.
CARRIED
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Notification
and Justification of Matters of Extraordinary Business
(Strictly for information and/or referral purposes only).
1. Hawke's Bay
Airport Limited - Statement of Intent
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Type of Report:
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Procedural
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|
Legal Reference:
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N/A
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Reporting Officer/s & Unit:
|
Adele Henderson, Director Corporate Services
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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.
|
At the Meeting
The
representatives from the Hawke’s Bay Airport, Tony Porter, Olivia
Pierre and Sarah Park, were welcomed to the meeting. In the interests of the
availability of the presenters Items 1 and 2 were taken together.
The presenters spoke to their reports, noting:
·
There has been
continued growth in the airside and landside budgets. The Company intends to
work closely with its shareholders to better realise the value of the
business park.
·
The operating
expenses came in under budget for the first six months of the year, and a
significant payment was made against the loan.
·
The gearing ratio
is very low currently, but is forecast to climb steeply as funding is drawn
down for larger capital works in the near future, then to return relatively
quickly to a lower percentage by approximately year five of the budget model.
It is the nature of airport works that in large part drives the spikes in the
ratio.
·
A number of
capital works are planned for the next few years, of which the terminal
development is the largest. The detailed design for this project is due to be
complete this week. It is anticipated that the project will be fully
completed in March 2019.
·
Security updates
have been made across airport functions in line with recent CAA changes to
the regulations.
·
Airport staff have
had input into the NZTA “SH2/ Watchman Road roundabout” project,
the tender for which closed today.
In response to questions from elected members, it
was clarified that:
·
Stormwater
attenuation considerations have been integrated into every area of
development at the airport, including the business park.
·
The Airport
executive team has worked hard to keep operating costs low despite
significant changes in security, fire and rescue and other matters having
been rolled out over the six month period.
·
While it may be an
option to return to an earlier approach of paying no dividend to its
shareholders over the period of the larger capital works, the Airport Company
believes that the loan funding it is now able to draw on provides enough
flexibility to pay a dividend as part of its overall financial management.
|
|
Committee's
Recommendation
Councillors Taylor / McGrath
That the draft Statement of
Intent of the Hawke’s Bay Airport Limited be received.
CARRIED
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2. Hawke's Bay Airport Limited Half Yearly
Report
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Type of Report:
|
Legal and Operational
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|
Legal Reference:
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Local Government Act 2002
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Document ID:
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340167
|
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Reporting Officer/s & Unit:
|
Adele Henderson, Director Corporate Services
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2.1 Purpose
of Report
To
receive the half-yearly report to shareholders from Hawke’s Bay Airport
Limited to 31 December 2016.
The Airport
representatives left the meeting at 3.39pm.
3. Business Hawke's Bay Report
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Type of Report:
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Procedural
|
|
Legal Reference:
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N/A
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Document ID:
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344753
|
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Reporting Officer/s & Unit:
|
Adele Henderson, Director Corporate Services
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3.1 Purpose
of Report
To
provide Council with an update report from Business Hawke’s Bay (BHB).
|
At the Meeting
Carolyn Neville, Business Hawke’s Bay Marketing and
Operations Manager, was welcomed to the meeting.
Carolyn spoke to the report, noting:
·
Visitor numbers to
the Business Hub had increased over the last quarter.
·
A survey of
business travellers undertaken over a month indicated an increased level in
connectivity through travel, to which the introduction of JetStart Flights to
the Hawke’s Bay Airport had made a significant contribution. Of
particular note was the increased travel between Napier and Auckland.
·
Central Government
funding had contributed towards several initiatives underway, such as
Techweek 2017, as well as the recruitment of further staff including the role
of Marketing and Operations Manager.
·
The food and
beverage sector, as well as agri-business, had been in particular focus for
business attraction and development.
|
|
Committee's
Recommendation
Councillors Wright /
Boag
That the Council resolve
that the report from Business Hawke’s Bay be received.
CARRIED
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4. Hawke's Bay Museums Trust - Half yearly
report to 31 December 2016
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Type of Report:
|
Legal
|
|
Legal Reference:
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Local Government Official Information and Meetings Act
1987
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Document ID:
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345481
|
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Reporting Officer/s & Unit:
|
Adele Henderson, Director Corporate Services
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4.1 Purpose
of Report
To
provide the half-yearly report for 2016/17 for the Hawke’s Bay
Museum’s Trust for adoption.
5. HB Museums Trust Statement of Intent
2017 - 19
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Type of Report:
|
Legal
|
|
Legal Reference:
|
Local Government Act 2002
|
|
Document ID:
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345482
|
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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.
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Committee's
Recommendation
Councillors Price /
Taylor
That the HB Museums Trust
Statement of Intent 2017 - 19 be received and any feedback is provided to the
Trust for their consideration.
CARRIED
|
6. HB LASS Limited - Half Yearly Report
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Type of Report:
|
Legal and Operational
|
|
Legal Reference:
|
Local Government Act 2002
|
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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.
|
At the Meeting
In response to queries from elected members it was
clarified that:
·
No new shared
services were evaluated over the last six months. A lot of work had been
undertaken within the IT space as this will form a foundation to other shared
activities.
·
A HB LASS
Collaborator was recently recruited and will be involved in the development
of the HB LASS Statement of Intent.
|
|
Committee's
Recommendation
Councillor Dallimore
/ Hague
That the Council resolve
that the HB LASS half yearly report to 31 December 2016 be received.
CARRIED
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7. Seismic Assessments of Council Buildings
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Type of Report:
|
Operational
|
|
Legal Reference:
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N/A
|
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Document ID:
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344798
|
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Reporting Officer/s & Unit:
|
Bryan Faulknor, Manager Property
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7.1 Purpose
of Report
To
update Council on the progress regarding Seismic Assessments of Council owned
buildings.
|
At the Meeting
In response to queries from elected members it was
clarified that:
·
The last
assessment of the Civic Building was in 2011. As technologies have improved
significantly since that time, and with the consideration of potential
options for the building campus in mind, it was decided to re-assess the
building.
·
A building is
designated ‘earthquake prone’ if it meets less than 34% of the
current building code. It is accepted practice that any alterations and
renovations made to such buildings should bring them to 67% or higher.
Council aims to bring all buildings as close to 100% of code as it can, but
for some older buildings this is not feasible.
|
|
Committee's
Recommendation
Councillor Brosnan /
Mayor Dalton
That the update report on
progress regarding Seismic Assessment of Council owned buildings be received.
CARRIED
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The meeting concluded at 3.54pm.
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APPROVED
AND ADOPTED AS A TRUE AND ACCURATE RECORD OF THE MEETING
CHAIRPERSON:_________________________DATE
OF APPROVAL:____________________
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NAPIER CITY COUNCIL