NAPIER CITY COUNCIL

Civic Building

231 Hastings Street, Napier

Phone:  (06) 835 7579

www.napier.govt.nz

 

 

 

Finance Committee

 

 

Open

Agenda

 

 

Meeting Date:

Wednesday 13 September 2017

Time:

3.30pm

Venue:

School Hall

Napier Girls’ High School

Clyde Road

Bluff Hill, Napier

 

 

Council Members

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

Officer Responsible

Director Corporate Services, Adele  Henderson

Administrator

Governance Team

 

 

Next Finance Committee Meeting

Wednesday 25 October 2017


Finance Committee13 September 2017 Open Agenda

ORDER OF BUSINESS

Apologies

Cr Wise

CONFLICTS OF INTEREST

Public forum

Nil

Announcements by the Mayor

Announcements by the Chairperson

Announcements by the Management

Confirmation of Minutes

That the Minutes of the Finance Committee meeting held on Wednesday, 2 August 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       Statement of Proposal - Civic Site Optimisation....................................... 3

2       Loan Raising 2017/18..................................................................... 155

3       Budgets to be carried forward to 2017/18......................................... 159

4       Christmas Cheer Funding Applications.............................................. 162  

Public Excluded ............................................................................................. 164


Finance Committee13 September 2017 Open Agenda

Agenda Items

1.     Statement of Proposal - Civic Site Optimisation

Type of Report:

Procedural

Legal Reference:

Local Government Act 2002

Document ID:

383441

Reporting Officer/s & Unit:

Fleur  Lincoln, Strategic Planning Lead

 

1.1   Purpose of Report

The purpose of this report is to approve the Statement of Proposal that provides Council with the option to divest, by way of sale or long-term lease, the site currently occupied by the Civic Administration Building to a private developer for commercial development. The Statement of Proposal contains an outline of what is proposed; the reasons for the proposal; the options being considered their advantages and disadvantages; and the feasibility of the preferred option.

 

The Business Case contains the detailed information and analysis supporting the option put forward in the Statement of Proposal.

 

An Engagement Plan summary and methodology is also provided for Council approval.

 

Officer’s Recommendation

a.     That the Statement of Proposal – Civic Site Optimisation be approved for consultation in accordance with the Engagement Plan Summary.

b.     That the Statement of Proposal is notified to the public on the 4th October 2017, with submissions closing 3 November 2017.

 

 

MAYOR’S/CHAIRPERSON’S RECOMMENDATION

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

 

1.2   Background Summary

Prior to undertaking programmed refurbishment work on the Civic Administration and Library Buildings, Council engaged Strata Group to undertake a seismic assessment on both buildings, using the new method of assessment introduced following the Christchurch and Kaikoura earthquakes. The assessment returned a seismic strength result of 10% New Building Standard (NBS) for the Civic Administration Building and 15% NBS for the Library Building, making both buildings earthquake prone. Government departments typically require buildings to achieve at least 67% NBS, and to be accommodated within earthquake-prone buildings for as little time as possible.

 

In addition, there are a number of issues with these buildings including their current condition, design and configuration that need to be addressed in conjunction with this project.

 

Following the June 2017 discovery of the buildings earthquake-prone status, it was necessary for Council to consider the options for the redevelopment of this site. A number of options have been considered for this site, but the key question being presented is whether to strengthen and refurbish both buildings, or whether to redevelop one of these buildings while presenting an opportunity to utilise a part of the Hastings Street site for a commercial development. The Statement of Proposal that Council is being asked to approve for consultation addresses the future of the part of the site currently occupied by the Civic Administration Building.

 

The Proposal being presented to the public provides Council with the option to divest, either by way of sale or long-term lease, the part of the site shown as Site A in the plan below for commercial use, and to retain and consolidate Council’s administrative functions on Site B. The Statement of Proposal is analysed in the Business Case which presents the options, benefits, costs, and risks, and finally recommends a preferred option.

 

 

1.3   Issues

The main issue for the proposal presented is whether Council’s administrative functions can be accommodated within the part of the site currently occupied by the Library Building and the Library. Council’s functions are currently spread across two buildings and a large site. Consolidating Council into one of these buildings, or one half the site, would free up the remainder of this site for another opportunity that could provide benefits to the city of Napier.

 

Officers undertook a spatial planning exercise for Sites A and B to determine if Council’s administrative functions could be accommodated within either of these two sites. It was found that although both sites could do this, as well as accommodating a new Library, Site B was a significantly better site given that all of Council’s administrative staff and the majority of the Library could be accommodated within the existing strengthened and refurbished Library Building. In addition, the development would require very little earth moving work, and a new Library extension, Council chambers and customer services area could be built as an annex on the Station Street side of the Library Building, which would improve accessibility and activate this street edge.

 

Council Officers also explored the feasibility of a number of commercial options on Site A to ensure that offering this site for commercial development would result in a feasible development that would provide wider benefits to the city. Council sought expressions of interest from well-known local property developers to canvas their thoughts on the best commercial use of the site. Council also approached international-brand hotels for expressions of interest. A hotel feasibility assessment and an economic impact assessment (which considered three types of commercial development) were commissioned. These found that the hotel was the most feasible option that provided the greatest initial and long-term economic benefit to the city. An urban design assessment confirmed that Site A was the preferred site for commercial development given its extension of a main retail/commercial street, good connections to the CBD and waterfront, and the potential for sea views from upper storeys.

1.4   Significance and Consultation

The Statement of Proposal has been prepared in accordance with section 83 of the Local Government Act 2002.

 

Although the site itself is not deemed a strategic asset under Council’s Significance and Engagement Policy, Council has opted to utilise the Special Consultative procedure under the Local Government Act 2002 as it is a clear decision-making process that is familiar to both the public and Council.

1.5   Implications

Financial

The Statement of Proposal does not request a change to the Long Term Plan. Costs associated with the demolition of the Civic Administration Building can be met through existing budgets and by using the proceeds of the sale or lease of this site.

Social & Policy

The proposal is consistent with the principles of the City Vision. The City Vision recognises the location of Council’s Hastings Street offices as a key opportunity for activation and improved urban design. It recognises the connection through to the waterfront and ease of access to the CBD, and its principles seek to ensure decision-making supports a compact, vibrant city centre with excellent design and connectivity across the city.

Risk

Risk associated with the proposal has been assessed and is included as a summary in the Statement of Proposal and in full in the Business Case. An additional risk not outlined in the risk schedule is that of making a decision not to divest or lease Site A for commercial use. The benefits included in both the Statement of Proposal and Business Case will in all likelihood not be realised if the decision is made to reject the proposal.

1.6   Options

The options, as they are presented in the Statement of Proposal and accompanying Business Case are as follows

:

1. Option 1 – Do nothing

2. Option 2 – Consolidate Council administrative functions within a strengthened and refurbished existing building with new building extensions on half of the Hastings Street site and divest either: a) Site A; or b) Site B for commercial development

3. Option 3 – Strengthen and refurbish both the Civic Administration Building and the Library Building, and remain within both buildings

4. Option 4 – Demolish both Council buildings and build new in the same location

5. Option 5 – Dispose both Site A and Site B and either rebuild or lease elsewhere.

1.7   Development of Preferred Option

The Statement of Proposal, supported by the Business Case, narrows the viable options down to either Option 2(a) or 2(b).

 

The spatial analysis undertaken to determine if Council could be accommodated more effectively within either Site A or Site B recommended that Council be sited on Site B. An urban design assessment then considered which site would be better suited (from an urban design perspective) to civic administration and which to commercial. It concluded that Site A would be the preferred site for a commercial activity.

 

Various commercial activity scenarios were then assessed for feasibility and their economic impact to the city. Although it was found that all commercial options were feasible and provided a positive economic impact, the hotel option presented the most valuable case. It is important to note however, that the Statement of Proposal does not specify which type of commercial activity it recommends for Site A.

 

The recommended option put forward in this Statement of Proposal will provide Council with the option to divest, either by way of sale or long-term lease, Site A (part of the Hastings Street site).  This approach to leveraging Council’s assets has many benefits:

·    Affordability – the proposal presents the most affordable option to the community. Council can offset some of the costs through the sale of part of the site.

·    Positive economic impacts for the city – all three commercial types assessed showed that commercial use on part of the site would bring positive economic benefits to the city, with the option for an international-brand hotel providing the greatest benefit (and to the region).

·    Improved amenity – redevelopment of this site presents the opportunity to work with the developers to provide improved amenity of the building and in the streetscape.

·    Improved working environment for staff, better access to Council services for customers, and increased safety for all.

 

1.8   Attachments

a     Statement of Proposal

b      Site Optimisation Business Case

C     Seismic Assessment for Library Building (under separate cover)

D     Seismic Assessment for Civic Building (under separate cover)

E      Spatial Analysis

F      Economic Impact Assessment

G     Hotel Feasibility Assessment

H     Urban Design Assessment

I       Risk Assessment Schedule

J      NCC Risk Strategy

K     High Level Engagement Plan - Council Buildings   


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2.     Loan Raising 2017/18

Type of Report:

Procedural

Legal Reference:

Local Government Act 2002

Document ID:

371199

Reporting Officer/s & Unit:

Ian  Condon, Revenue and Treasury Manager

 

2.1   Purpose of Report

To approve new loan authorities and loan raising for 2017/18.

 

Officer’s Recommendation

That the Council resolve as follows:

a.  That Council borrow such amounts and enter into such incidental arrangements on such terms and conditions as any of the Authorised Persons named in Resolution d. below may determine from time to time.

 

b.  That every borrowing or incidental arrangement incurred or entered into by the Council on the terms and conditions determined by any of the Authorised Persons shall:

 

i.  Be for the purposes specified below, or for general working capital purposes of the Council, subject, in each case, to the financial limitations contained in the Liability Management Policy.

 

NAME

PURPOSE

AMOUNT

Roading Loan 2017

Embankment Road Bridge

1,050,000

CBD Development Loan 2017

CBD Development

833,000

Whakarire Loan 2017

Whakarire Ave Groyne

500,000

Park Island Loan 2017

Park Island Expansion

1,260,000

Sportsgrounds Loan 2017

Sportsgrounds Infrastructure

2,268,000

Sportsgrounds Growth Loan 2017

Sportsgrounds Development

657,000

City General Loan 2017

General Borrowing

400,000

CBD Stormwater Loan 2017

CBD Stormwater Upgrade

355,000

Taradale Stormwater Loan 2017

Taradale Stormwater Upgrade

350,000

Conference Centre Loan 2017

 

Conference Centre Upgrade

                                   1,115,000

 

 

                        $8,788,000

 

 

ii. Be secured by and have the benefit of a Debenture Trust Deed, creating a charge over rates.

 

c.  That the Council considers that the financial limitations contained in the Ten Year Plan and Liability Management Policy address the risks and benefits of the proposed loan and security to be given by the Council.

 

d.  That the persons holding the following offices with the Council be designated as “Authorised Persons”:

i.      Director Corporate Services

ii.     Chief Financial Officer

iii.    Revenue and Treasury Manager

 

e.  That any of the Authorised Persons are hereby authorised, empowered and appointed, on behalf of the Council, (but subject to Resolutions a. and b. above) to:

i.  Negotiate and approve the specific terms and conditions of the borrowing in accordance with the financial limitations contained in the Liability Management Policy;

ii. Negotiate, execute and deliver such documents and take all actions as any of the Authorised Persons may consider necessary for the purpose of giving effect to the borrowing and the security which may be given in respect thereof; and

iii. Sign, despatch, any letter, acknowledgement, notice, certificate, authority, approval, payment, or other document on behalf of the Council as any of the Authorised Persons may consider necessary or desirable in connection with, or incidental to, the matters referred to or authorised in paragraphs i or ii above.

 

f.   That all further actions, documents, agreements, authorities, letters, payments, approvals or notices required in connection with the matters approved and authorised by these Resolutions be from time to time undertaken, executed, entered into, or given on behalf of the Council by any Authorised Persons, such further matters to be in the form and/or on the terms and conditions approved by an Authorised Person and the execution of any document/s relating to such matters by an Authorised Person shall be conclusive evidence of the agreement to and authorisation, approval and confirmation of that matter by the Council and the Authorised Persons.

 

g.  That the authorisations set out in Resolutions d. to f. inclusive above shall remain in full force and effect until written notice of their revocation by resolution of the Council has been received by the Authorised Persons, provided that any person dealing with the Authorised Persons shall be entitled to assume that the Authorisations have not been revoked and remain in full force and effect and, in so assuming, shall be protected unless and until he or she has actual notice of such revocation

 

h.  That the Council provides for the repayment of loans through the establishment of Redemption Funds or by such other mechanisms that are in accordance with the Liability Management Policy.

 

i.   That copies of this resolution and all other resolutions, orders and documents relating to the said loans, certified by the Mayor and Chief Executive as correct extracts from the minutes of all proceedings of the Council may from time to time be sealed with the Common Seal of the Council as evidence of the same and issued as required.

 

CHAIRPERSON’S RECOMMENDATION

That the officer’s recommendation be adopted.

2.2   Background Summary

Council’s borrowing is governed by the Local Government Act 2002, the adopted Annual Plan and Liability Management Policy.  Prior to raising any of the loans contained within the Annual Plan, Council is required to authorise each of the new loans by resolution.

2.3   Issues

For 2017/18, the Annual Plan provides for new borrowing of $7.323 million for projects contained in the Capital Plan.

In addition to the new borrowing contained in the Annual Plan, loan authority is also sought to formalize additional borrowing previously approved by Council and expended during 2016/17 as follows:

a. Conference Centre upgrade $1,115,000. This loan funding was approved by Council 6/4/2016 as part of the overall project funding.

 

b. Taradale Stormwater Upgrade $350,000. Council approved this expenditure budgeted for 2017/18 to be brought forward to 2016/17 due to a timing variance in the project spend. (Council Meeting 5/4/2017)

***       The new loans scheduled as per Attachment A totaling $8.788 million are now submitted to be approved by resolution for 2017/18.

2.4   Significance and Consultation

Not Applicable

2.5   Implications

Financial

Budget provision has been made within the Annual Plan to provide for these loans.

Social & Policy

Not Applicable

Risk

Not Applicable

 

2.6   Attachments

a     Loans 2017/18   


Finance Committee13 September 2017 Open Agenda


Finance Committee13 September 2017 Open Agenda

3.     Budgets to be carried forward to 2017/18

Type of Report:

Enter Significance of Report

Legal Reference:

Enter Legal Reference

Document ID:

384406

Reporting Officer/s & Unit:

Mary  Quinn, Senior Management Accountant

Caroline Thomson, Chief Financial Officer

 

3.1   Purpose of Report

To seek Council approval to carry forward budgets into 2017/18.

 

 

Officer’s Recommendation

That Council

a.     Approve carrying forward budgeted expenditure of $1,499,000 from 2016/17 into 2017/18.

b.     Approve the release of additional budget of $200,000 for the skate ramps at Bay Skate funded from the capital reserve.

c.     Approve unbudgeted expenditure of $35,000 for street lighting for safety purposes at the Dickens Street West carpark, funded from the parking fund.

 

CHAIRPERSON’S RECOMMENDATION

That the officer’s recommendation be adopted.

 

3.2   Background Summary

Provision is made at the end of a financial year to carry forward project expenditure budgeted but not incurred either fully or in part.  The provision relates only to expenditure of a project nature and only applies to capital works.  Requests are subject to approval by Council.

 

At the Finance Committee meeting on 29 November 2016, Council approved $200,000 of capital expenditure for the purchase of skate ramps at Bay Skate to be funded from the Capital Reserve. This project is now being undertaken in 2017/18 and approval is sought from Council to release this budget.

 

The community strategies team were approached by Napier Business Inc because a number of retailers were feeling unsafe walking to their cars in the early mornings and evenings due to insufficient lighting. A lighting audit was completed and areas identified for improvement were Dalton Street, Raffles Street and the Dickens Street West carpark and attached alleyway.

 

A project is underway called ‘light the way’ to improve lighting in these areas and create a safer pathway for members of the public to reach the areas where their cars are most often parked.  Improvements include a redesign of street lighting in Raffles and Dalton streets, fairy lit trees on the corner of Raffles and Dalton streets and a redesign of lighting in the Dickens Street West carpark and attached alleyway. This project has been partially funded from CEPTED funding and Roading. Approval is sought to fund the remaining expenditure of $35,000 from the parking fund.

3.3   Significance and Consultation

Not applicable.

3.4   Implications

Financial

The proposed carry forward amounts have been reviewed by Council management.

 

The carry forward amounts are based on the final general ledger figures at 30 June 2017 and total $1,499,000.

 

The following table summarises by activity group carry forward expenditure that was budgeted but not incurred in 2016/17 together with the additional budget  for Bay Skate and Parking.

 

Activity Name

Carry/Fwd

Additional budget

Total funding

Principal Components

Roading

350,000

350,000

Embankment Road Bridge

Water Supply

268,000

268,000

New Reservoir Taradale

Wastewater

80,000

80,000

Wastewater Outfall IAR - Major diffuser maintenance

Recreation

200,000

200,000

400,000

Bay Skate - Ramps and the completion of the Marine Parade Reef garden

City Activities

50,000

50,000

War Memorial & Eternal Flame

Planning & Regulatory

35,000

35,000

Parking Security Upgrade

Property Assets

551,000

551,000

Civic Buildings Upgrade

TOTAL

$1,499,000

$235,000

$1,734,000

 

 

 

 

 

 

Funding of Requests

 

Loans

$900,000

 

 

Special Funds

 

Financial Contributions

268,000

 

L/Farm Res Dev (Parklands) Fund

217,000

 

Prior Years Project Funding

34,000

 

Wastewater Outfall IAR

80,000

 

Capital Reserve

200,000

 

Parking

35,000

 

$834,000

 

 

Rates

0

 

 

TOTAL

$1,734,000

 

Social & Policy

Not applicable.

Risk

Not applicable.

3.5   Options

The preferred options are as follows:

1.   Approve carrying forward total project expenditure of $1,499,000 to 2017/18.

2.   Approve releasing budget of $200,000 for Bay Skate ramps.

3.   Approve unbudgeted expenditure of $35,000 for car park street lighting.

3.6   Development of Preferred Option

N/A

 

3.7   Attachments

Nil


Finance Committee13 September 2017 Open Agenda

4.     Christmas Cheer Funding Applications

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

382414

Reporting Officer/s & Unit:

Belinda  McLeod, Community Funding Advisor

 

4.1   Purpose of Report

To seek approval to apply for external funding to support the Christmas Cheer Appeal for 2017.

 

 

Officer’s Recommendation

a.     That the Council apply to external funders as outlined in Table a.

Table a

Funder

Up To

Returned Service Association Napier

    6,000

Returned Service Association Taradale

    6,000

Infinity Foundation

    6,000

Total

$18,000

That a DECISION OF COUNCIL is required as the funders close dates are  before the next Council meeting. This will require the following resolution to be passed before the decision of Council is taken:

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.

 

 

CHAIRPERSON’S RECOMMENDATION

That the Officer’s recommendation to apply for funding as stated in Table a, is approved.

 

4.2   Background Summary

Napier Christmas Cheer has been operating for approximately 35 years, and is managed by Community Services. It operates independently, but in conjunction with Hastings Christmas Cheer.

This community project attracts donations from Napier businesses and the public of around $9000-$12,000 per year, and with the external funding received (average amount $2000 per year), allows us to purchase gifts (as/if required) and food vouchers to distribute to disadvantaged families in Napier.

The parcel recipients are provided by community organisations. On an average 500 parcels are packed and distributed every year to families in Napier.

4.3   Issues

No Issues

4.4   Significance and Consultation

N/A

4.5   Implications

Financial

External funding enables the project to continue, and distribute around 500 parcels to families in need. If our funding applications are not successful, the number of parcels would have to be reduced.

Social & Policy

N/A

Risk

N/A

4.6   Options

The options available are as follows:

 

1.  Reduce the number of parcels packed and distributed.

2.  Reduce the value of the grocery vouchers.

3.  Status Quo (preferred option) to apply for external funding to enable the project to continue at the same level as it has for the past several years.

4.7   Development of Preferred Option

N/A

 

4.8   Attachments

Nil      


Finance Committee13 September 2017 Open Agenda

 

PUBLIC EXCLUDED ITEMS

 

 

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

 

AGENDA ITEMS

1.      Service Delivery Review (17A) for Transport

2.      Service Delivery Review for Waste Minimisation

3.      Council Projects Fund - Applications 

 

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.  Service Delivery Review (17A) for Transport

7(2)(b)(ii) 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

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.  Service Delivery Review for Waste Minimisation

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

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.

3.  Council Projects Fund - Applications

7(2)(b)(ii) 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

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.

 

 

 


NAPIER CITY COUNCIL

Civic Building

231 Hastings Street, Napier

Phone:  (06) 835 7579

www.napier.govt.nz

 

 

 

Finance Committee

 

 

Open

MINUTES

 

 

Meeting Date:

Wednesday 2 August 2017

Time:

3pm-4.08pm

Venue:

East Coast Lab

Level 1

National Aquarium of New Zealand

Marine Parade

Napier

 

 

Present:

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

In Attendance:

Chief Executive, Director City Infrastructure, Director Corporate Services, Director Community Services, Director City Services, Manager Communications and Marketing, Manager Community Strategies, Manager Property, Chief Financial Officer, Senior Advisor Policy, Community Funding Advisor

Administration:

Governance Team

 

 

 


Finance Committee02 August 2017 Open Minutes

 

Apologies

Apologies

Councillors Wright/ Brosnan

That the apology from Cr Boag be accepted.

CARRIED

CONFLICTS OF INTEREST

Nil

Public forum

Sindy Cormack and Wendy Piri provided a presentation on their intended development of a children’s activity centre at Cato Road, noting that the area is already under-resourced for child care options and it is a location where increasing residential development is already underway. The proposed accessway to the site would follow on from an existing paper road and would be developed at their cost before being gifted back to Council.

The accessway development would include high quality pathway forming (which would available to the public to use), safety barriers and plantings of native trees in keeping with existing fauna.

 

In response to questions from Councillors, the presenters clarified that:

·         The parking/ turning bay will be allowed for between the site land and the paper road; it will not be on reserve land.

·         The accessways to the site and to the cemetery are completely separate. The site is in a valley below the cemetery and between the steep topography and the trees (existing and intended) it is likely that cemetery users would not see the centre.

·         Ad hoc conversations with bypassers had been had regarding the development of the site but ‘consultation’ as such had not been undertaken with neighbouring residents.

 

Cr Jeffery noted that he had spoken with residents in Fryer Road who had indicated they were comfortable with the proposal as long as the access way terminated at the site of the child care centre.

Announcements by the Mayor

Thanks were extended to those who were able to attend the public meeting on the War Memorial yesterday evening. Very positive feedback had been received from members of the public who were in attendance.

Announcements by the Chairperson

Nil

Announcements by the Management

Council was recently awarded the Best Creative Place award at the annual Local Government Excellence Awards for the City Vision project. Congratulations were extended to all those who had been involved in the strategy’s development.


 

Confirmation of Minutes

Councillors McGrath / Wright

That the Minutes of the meeting held on 14 June 2017 were taken as a true and accurate record of the meeting.

CARRIED

 

Notification and Justification of Matters of Extraordinary Business

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

 

Agenda Items

1.      Cato Road Accessway

Type of Report:

Legal

Legal Reference:

Public Works Act 1981

Document ID:

377905

Reporting Officer/s & Unit:

Debra Stewart, Team Leader Parks, Reserves, Sportsgrounds

 

1.1     Purpose of Report

To gain Council approval for a Licence to Occupy. The proposed Licence to Occupy relates to a piece of land which forms part of the Wharerangi Cemetery and a portion of Council’s Paper Road.

 

The purpose of the Licence is for a road to access a commercial childcare centre that is proposed on an adjoining site. The childcare centre is subject to Resource Consent which is currently being considered by Council’s Planning Team.

 

At the Meeting

General agreement was expressed that the presentation and concept for the child care centre were excellent but the lack of consultation with neighbouring residents and cemetery users was a risk to Council. Significant discussion was held as to appropriate forms of engagement with the community on the matter.

It was specified that parts a, b and c of the officer’s recommendation would be moved, with the original part d and replaced by a direction that community engagement to be undertaken by officers prior to the meeting of Council on 16 August 2017. 

Committee's Recommendation

Councillors Taylor / Tapine

That Council 

a.       Receive the report titled Cato Road Accessway

b.       Consider the information provided, including the issues and options outlined in this report.

c.       Approve the Licence to Occupy for the part of the cemetery and paper road as shown in Attachment A.

d.       Direct officers to undertake engagement with neighbouring residents and cemetery users on the proposed accessway (for example through a letter drop to neighbouring residents, a site notice in the area and social media) prior to the final decision of Council at its meeting scheduled for 16 August 2017.

CARRIED

 

 

2.      Community Outcome, Activities and Activity Groups

Type of Report:

Legal and Operational

Legal Reference:

Local Government Act 2002

Document ID:

371697

Reporting Officer/s & Unit:

Elaine  Cooper, Corporate Planner

 

2.1     Purpose of Report

In preparation for the 2018–2028 Long Term Plan (LTP) a number of Policies, Strategies and building blocks are required to be adopted by Council. This report outlines the first set of building blocks to define Council’s overall direction for this LTP: Council’s Mission, Vision, Community Outcomes, Activities and Activity Groups through which Council will deliver on its outcomes. The report also identifies the community outcome to which each activity primarily contributes.

 

These statements provide the strategic direction for the preparation of activity and asset management plans and in the preparation of required policies and strategies.

 

At the Meeting

Council were pleased that the vision and new mission are clearly outlined, as well as the five primary outcomes to be delivered.

 

Committee's Recommendation

Councillors Hague / Brosnan

a.       That Council adopt the Mission, Vision, Community Outcomes and Council’s Activities and Activity Groups to be used for the preparation of the 2018 – 2028 LTP and supporting plans, policies and strategies.

 

CARRIED

 


 

 

3.      Civic and Library Building

Type of Report:

Legal and Operational

Legal Reference:

Building Act 2004

Document ID:

378350

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

3.1     Purpose of Report

To formally receive the Detailed Seismic Assessment (DSA) undertaken on the Civic and Library buildings and to approve the decanting of staff into alternative locations until such time a fit for purpose Council building is available.

 

At the Meeting

Updated recommendations were tabled at the meeting (attachment A).

The Chief Executive spoke to the item, providing an update to information provided at a previous seminar on the topic. It was noted that the original intention to upgrade the library building in stages while staff were still in the building had been assessed by engineers as unfeasible due to noise and construction issues.

While the preference was to keep teams together as much as possible, there were also some key criteria that any building had to meet in order to be considered acceptable:

·         A current seismic assessment, or recent strengthening work with an engineer’s assessment

·         Fire safety certification

·         Toxins certification (particularly but not limited to asbestos in keeping with regulations that will be implemented in the near future)

·         A high standard of accessibility

Three smaller sites have been identified which meet the criteria and negotiations are underway to finalise likely costs. The sites are essentially empty ‘ shells’ and fit outs cannot begin until a lease is signed.

The need to act in the best interests of staff safety and wellbeing was reiterated strongly. This, as well as the timing of required fitouts and availability of contractors to complete the work, were some key considerations in the decision to present the recommendations for a Decision of Council at this meeting.

In response to questions from Councillors it was clarified that:

·         The signage on buildings identifying them as earthquake prone is required under law.

·         A business case on options for the Civic Building is currently being prepared by officers and will be brought to Council in the near future.

Work is underway to better clarify the expected timeframes for the work on the Library Building. A motion was proposed that the decision lie on the table until the Council meeting of 16 August 2017.

Item(s) of business to lie on the table

Councillors Brosnan / Jeffery

That pursuant to Standing Order 3.12.1 that Item 3 – Civic and Library Building lie on the table and will not be further discussed at this meeting but will be reconsidered at the Council meeting scheduled to be held on 16 August 2017.

 

The motion was spoken to, during which, at the decision of the Chair, in recognition of the commercial considerations related to this item and to ensure any negotiations are not prejudiced, this item was adjourned to be further considered in committee.

………………………………………………………………………………………………………...

 

As per the resolution of Council, the final Decision of Council for this item is recorded in the open minutes of this meeting.

 

Committee's Recommendation

Councillors Wise / Brosnan

That Council:

a.       Receive the Detailed Seismic Assessment report undertaken by Strata Group.

b.       Approve the relocation of staff to alternative locations within Napier that meet the due diligence requirements.

c.       Approve the capitalisation of improvement and lease costs associated with alternative premises to be funded from the building upgrade budget.

d.       Seek any variance in funding through the Long Term Plan 2018-28.

e.       Note that Council will undertake a Special Consultative Procedure on the proposed options for the Civic Building and potential Commercial development opportunities approximately October 2017.  A separate consultation on Library options will be undertaken once the Library Strategy has been completed.

f.       Provide the Chief Executive delegation up to $1m per annum to undertake and sign lease negotiations to accommodate staff, customer services and a library service centre for a period of 2/3 years with rights of renewals up to 5 years

g.       Provide the Chief Executive delegation up to $1m to undertake fitout requirements for staff, customer services and library service centre requirements

h.       That a DECISION OF COUNCIL is required urgently due to the timeframe within which lease agreements must be finalised to secure appropriate alternative office space.

i.        This will require the following resolution to be passed before the decision of Council is taken:

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

 

Decision of Council

Mayor Dalton / Councillor Wright

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 Taylor / Price

That Council:

a.       Receive the Detailed Seismic Assessment report undertaken by Strata Group.

b.      Approve the relocation of staff to alternative locations within Napier that meet the due diligence requirements.

c.       Approve the capitalisation of improvement and lease costs associated with alternative premises to be funded from the building upgrade budget.

d.      Seek any variance in funding through the Long Term Plan 2018-28.

e.       Note that Council will undertake a Special Consultative Procedure on the proposed options for the Civic Building and potential Commercial development opportunities approximately October 2017.  A separate consultation on Library options will be undertaken once the Library Strategy has been completed.

f.       Provide the Chief Executive delegation up to $1m per annum to undertake and sign lease negotiations to accommodate staff, customer services and a library service centre for a period of 2/3 years with rights of renewals up to 5 years.

g.      Provide the Chief Executive delegation up to $1m to undertake fitout requirements for staff, customer services and library service centre requirements.

 

CARRIED

  

 

 

 

 


 

Attachment A – Explanatory Note tabled:

 

Explanatory Note

3. Civic and Library Building – Finance Committee – 2 August 2017 – Open Agenda

 

This note sets out the options considered by the Senior Leadership Team (SLT) for staff accommodation and council functions following the receipt of seismic ratings for the Civic and Library Buildings.

 

As part of a comprehensive process, SLT identified a number of key objectives when considering temporary options for staff accommodation and council functions.  These objectives include:

 

·         Safety of staff and visitors using NCC offices and library is improved

·         Internal reputation – NCC reputation as a good employer acting in the best interest of staff

·         Fit for purpose premises to allow staff to work to their best ability

o   co-location of business groups/Directorates/teams

o   continue to develop team culture, collaboration, alignment

·         Function – new ways of working are tested and staff buy-in to modern open plan working environments increase

·         Community service - public do not experience a drop in service during the transition phase

·         Fiscal responsibility, making prudent decisions for staff and community safety

·         Keep Council within the CBD

 

Using these objectives, SLT worked through a range of options.  The main options considered were:

 

1.    Remaining in the current buildings – while this option is allowed for under legislation providing 7.5 years for remedial work to be undertaken, it was discounted as it did not fit the objectives of a good employer, staff safety, or providing premises that were fit for purpose. Demolition/remedial work will be loud, messy and intrusive to staff and visitors.  Multiple moves would need to be undertaken to work around construction staff.  There would likely be a lowering of morale in staff and loss of staff.

 

2.    Working from home – this option has been used in extremely urgent situations (post Christchurch and Wellington earthquakes) where the level of the threat necessitates relocating staff before alternative premises can be arranged. This is not the situation for NCC. Having staff work from home for any length of time can cause loss in productivity, low morale and culture, and disconnection from teams and common purpose. In assessing this option SLT also determined that there would be significant IT implications from not having a direct link to NCC systems. This option was discounted for all of these reasons.

 

3.    Single site – a single premise for all staff is the preferred option.  However there are very few buildings available in the Napier area that could accommodate all NCC staff and functions.   These sites were identified and assessed for their suitability, including seismic ratings, refit costs, and building issues.  The few buildings available had to be discounted for these reasons.

 

4.    Purchase or lease  - SLT continue to ensure that the most cost-effective and commercially viable options are being considered and this has included options to purchase buildings. 

 

4.      Remuneration of Elected Members

Type of Report:

Operational and Procedural

Legal Reference:

Local Government Act 2002

Document ID:

378660

Reporting Officer/s & Unit:

Adele  Henderson, Director Corporate Services

 

4.1     Purpose of Report

To advise Council of the proposed remuneration levels to apply for the 2017/2018 year, as received from the Remuneration Authority, and to seek Council approval of these.

 

At the Meeting

There was no discussion on this item.

 

Committee's Recommendation

Councillors Wright / White

a.       That the remuneration levels proposed by the Remuneration Authority for the 2017/18 year be adopted.

b.       That confirmation be sent to the Remuneration Authority that the adopted remuneration levels will be implemented from 1 July 2017.

 

CARRIED

 

 

5.      Electoral Systems for Elections

Type of Report:

Legal

Legal Reference:

Local Electoral Act 1991

Document ID:

377703

Reporting Officer/s & Unit:

Jane McLoughlin, Team Leader Governance

 

5.1     Purpose of Report

To outline the process for making any changes to the electoral system to be used for the 2019 elections. 

 

At the Meeting

There was no discussion on this item.

Committee's Recommendation

Councillors Price / McGrath

That Council

a.       Receive the report titled Electoral Systems for Elections.

b.       Note that if Council wishes to make a decision to change the electoral system to STV for the 2019 elections, a decision will need to be made by 12 September 2017. 

c.       Note that staff will undertake an education campaign and consultation process and report back to Council on the community’s views to inform Council’s decision-making.  A report back will be provided at the Strategy and Infrastructure Committee meeting on 30 August for Council to make a decision on the electoral system.    

 

CARRIED

 

6.      New Year's Eve Event - Funding Applications

Type of Report:

Operational

Legal Reference:

N/A

Document ID:

376879

Reporting Officer/s & Unit:

Belinda  McLeod, Community Funding Advisor

 

6.1     Purpose of Report

To seek approval to apply for external funding to support the New Year’s Eve event for 2017-18.

 

At the Meeting

There was no discussion on this item.

Committee's Recommendation

Councillors Wright / Taylor

a.       That the Council apply to external funders as outlined in Table a.

b.       That a DECISION OF COUNCIL is required urgently. This will require the following resolution to be passed before the decision of Council is taken:

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

 

Decision of Council

Councillors Price / Wright

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 the Council apply to external funders as outlined in Table a:

 

External Funder

Apply for funding up to:

Pub Charity Ltd

23,000

Eastern & Central Community Trust

14,000

Youthtown

6,000

North and South Trust

4,000

First Sovereign Trust

4,000

Infinity Foundation

10,000

Grassroots Trust

9,000

Total

$70,000

 

 

CARRIED

  

The meeting adjourned at 3.56pm, and was reconvened at 4.07pm following the Community Services Committee meeting.

 

 

PUBLIC EXCLUDED ITEMS

 

 

Councillors White/ Brosnan

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

 

1.    Continuance of Item 3 – Civic and Library Building

 

Under the following sections of the Local Government Official Information and meetings Act 1987:

 

Section 7(2)(h) – that the local authority holding the information may carry out commercial activities without prejudice or disadvantage

 

Section 7(2)(i) – that the local authority holding the information may carry out negotiations (including but not limited to commercial and industrial negotiations)

CARRIED

 

The meeting moved into committee at 4.08pm.

 

 

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

 

 

 

 

 

CHAIRPERSON:_____________________________

 

DATE OF APPROVAL:____________________