|
Abbeyfield Properties Ltd. - Expression of Interest (Doc Id 1831608) |
Item 1 - Attachment 1 |
Prosperous Napier Committee
Open Agenda
|
Meeting Date: |
Wednesday 26 February 2025 |
|
Time: |
1.00pm |
|
Venue: |
Large Exhibition Hall |
|
|
Livestreamed via Council’s Facebook page |
|
Committee Members |
Chair: Councillor Crown Members: Mayor Wise, Deputy Mayor Brosnan, Councillors Boag, Browne, Chrystal, Greig, Mawson, McGrath, Price, Simpson, Tareha and Taylor (Deputy Chair) Ngā Mānukanuka o te Iwi representatives – Evelyn Ratima and (Vacancy) |
|
Officer Responsible |
Deputy Chief Executive / Executive Director Corporate Services |
|
Administration |
Governance Team |
|
|
Next Prosperous Napier Committee Meeting Thursday 10 April 2025 |
2022-2025 - TERMS OF REFERENCE - PROSPEROUS NAPIER COMMITTEE
|
Chairperson |
Councillor Crown |
|
Deputy Chairperson |
Councillor Tayor |
|
Membership |
Mayor and Councillors (13) Ngā Mānukanuka o te Iwi representatives (2) |
|
Quorum |
8 |
|
Meeting frequency |
At least 6 weekly (or as required) |
|
Officer Responsible |
Deputy Chief Executive / Executive Director Corporate Services |
Purpose
To provide governance oversight to the corporate business of the Council, monitor the Council’s financial position and financial performance against the Long Term Plan and Annual Plan, and to guide and monitor Council’s interests in any Council Controlled Organisations (CCOs), Council Organisations (COs) and subsidiaries.
Delegated Powers to Act
To exercise and perform Council’s functions, powers and duties within its area of responsibility, excluding those matters reserved to Council by law or by resolution of Council, specifically including the following:
1. To monitor the overall financial position of Council and its monthly performance against the Annual Plan and Long Term Plan.
2. To adopt or amend policies or strategies related to the Committee's area of responsibility, provided the new or amended policy does not conflict with an existing policy or strategy.
3. To consider all matters relating to CCOs and COs, not reserved to Council, including to monitoring the overall performance of CCO’s.
4. Provide governance to Council’s property operations and consider related policy.
5. Consider applications for the sale of properties within the Leasehold Land Portfolio.
6. To resolve any other matters which fall outside the area of responsibility of all Standing Committees, but where the Mayor in consultation with the Chief Executive considers it desirable that the matter is considered by a Standing Committee in the first instance.
Power to Recommend
The Committee may recommend to Council and/or any standing committee as it deems appropriate.
The Committee may recommend to Council and/or the Chief Executive any changes to the funding or rating system for the City, any variation to budgets that are outside the delegated powers of officers and the approval of Statements of Intent for CCOs and COs each year.
To bring to the attention of Council and/or the Chief Executive any matters that the Committee believes are of relevance to the consideration of the financial performance or the delivery of strategic outcomes of Council.
The Committee must make a recommendation to Council or the Chief Executive if the decision considered appropriate is not consistent with, or is contrary to any policy (including the Annual Plan or Long Term Plan) established by the Council.
ORDER OF BUSINESS
Karakia
Apologies
Mayor Wise
Conflicts of interest
Public forum
Nil
Announcements by the Mayor
Announcements by the Chairperson including notification of minor matters not on the agenda
Note: re minor matters only - refer LGOIMA s46A(7A) and Standing Orders s9.13
A meeting may discuss an item that is not on the agenda only if it is a minor matter relating to the general business of the meeting and the Chairperson explains at the beginning of the public part of the meeting that the item will be discussed. However, the meeting may not make a resolution, decision or recommendation about the item, except to refer it to a subsequent meeting for further discussion.
Announcements by the management
Confirmation of minutes
That the Minutes of the Prosperous Napier Committee meeting held on Thursday, 10 October 2024, be taken as a true and accurate record of the meeting......................... 156
Agenda items
1 Abbeyfield Housing Proposal Update....................................................................... 5
2 Treasury Activity and Funding Update................................................................... 22
3 Quarterly Performance Report............................................................................... 27
4 Submissions Schedule Update 29 August 2024 to 10 February 2025.................. 139
Minor matters not on the agenda – discussion (if any)
Recommendation to Exclude the Public
Nil
Agenda Items
1. Abbeyfield Housing Proposal Update
|
Type of Report: |
Enter Significance of Report |
|
Legal Reference: |
Enter Legal Reference |
|
Document ID: |
1831356 |
|
Reporting Officer/s & Unit: |
Bryan Faulknor, Manager Property Stephanie Murphy, Manager Strategy and Transformation |
|
1.1 Purpose of Report To update Council on discussions to date with Abbeyfield and obtain approval in principle to the proposal and provide a conditional letter of support for Abbeyfield’s funding applications.
|
The Prosperous Napier Committee:
a. Agree in principle to subdivide part of Council owned land (approx. 2,000m2) on the corner of Spriggs Crescent and Tait Drive and lease on a long-term basis to Abbeyfield Properties Limited or associated entity.
b. Note that the agreement in principle is subject to Abbeyfield negotiating a lease on terms satisfactory to Council, obtaining Council approval for final plans, securing full funding, carrying out all required due diligence and obtaining all required regulatory consents.
c. Require that the terms of the lease, mortgage terms, and final concept plans are brought back to Council for final approval.
d. Agree to provide a Letter of Intent to Abbeyfield setting out the intention to lease subject to the conditions being met as outlined above.
After considering an agenda item titled ‘Housing Divestment’, Council resolved on 31 October 2024 as part of its resolution to:
“Commence discussions with Abbeyfield NZ Incorporated (Hawke’s Bay branch) to facilitate delivering strategic housing priorities for Napier on the Greenmeadows East site, including site due diligence, feasibility and commercial terms”.
Abbeyfield NZ Incorporated Hawke’s Bay branch had previously submitted on and presented to the Three-Year Plan hearings.
Abbeyfield NZ Incorporated (ANZI) is a registered charity, and Community Housing Provider (CHP) established to develop, build and support Abbeyfield shared housing for older people in need of affordable accommodation. It operates 14 sites across NZ.
Abbey Field Properties limited (APL) is ANZI’s subsidiary which owns and develops Abbeyfield housing and enters into mortgages with commercial lenders.
Their model is to develop sites (approx. 2,000m2) for 12-14 older residents mainly in their 70s and 80’s with minimal assets. They typically build a facility that includes private studios with ensuite for residents within large family-styled house with communal lounge, dining area, laundry, and gardens. They do not provide medical care facilities; however, residents can have personal care support as required. Their model also requires their sites are close to public transport and within 1km of community facilities, including supermarkets, medical centres, libraries etc.
Officers have commenced discussions with Abbeyfield regarding due diligence and site feasibility of the Greenmeadows East site (83 Tait Drive) along with lease and legal terms discussions.
This process will ensure any proposed site layout does not hinder future proposed development on the Greenmeadows East site. The Greenmeadows East site is compatible with all Abbeyfield requirements including adjacent to an existing NCC retirement village.
Matters are at a stage where Abbeyfield have produced concept plans and require a conditional letter of Intent from Council to enable applications to be made for funding from sources such as the Ministry of Housing and Urban Development (MHUD).
Attachment 1 shows a letter from Abbeyfield Properties Ltd setting out an expression of interest.
Attachment 2 shows the Concept Plans.
Attachment 3 shows an aerial view of the Council land outlined in blue.
1.3 Issues
The proposal involves a subdivision of the site with Council retaining ownership of the subdivided land. Council would enter into a long-term lease with Abbeyfield.
Proposed Indicative Terms:
· Subdivision of required land (Approx. 2,034m2) to create a separate parcel and rateable land.
· Subdivision costs to be paid for by Abbeyfield.
· Council to retain ownership of the land.
· Lease period – Initial term of 33 years with rights of renewal to take total period to 50 years.
· Agreement to allow Abbeyfield Properties Limited to borrow and register a mortgage over the subject land. This would be conditional on Legal advice and an agreed borrowing limit and protections being given to Council in the event of a default.
· Peppercorn rental of $1 if demanded.
· Abbeyfield to pay Council rates as per applicable Council rating policies.
· Abbeyfield responsible for all due diligence, development and compliance costs, plus ongoing maintenance and renewals.
· Reasonable time limits being placed with regards requirement to complete the development.
1.4 Significance and Engagement
Abbeyfield presented to Council’s Three-Year Plan deliberations and Council decided to continue with discussion as a result.
The subject land whilst open space is not Reserve Land, is unencumbered and currently forms part of the title to the Greenmeadows East Retirement Village along with the Hall.
There would appear to be adequate open space in the area with close proximity to Anderson Park and the Greenmeadows East Drainage Reserve Walkway.
A Long-Term Lease would not trigger any requirements of Council’s Significance and Engagement Policy.
1.5 Implications
Financial
There is no cost to Council with the proposal. All due diligence, subdivision costs and development costs will be met by Abbeyfield along with ongoing operating and maintenance.
Council’s contribution is the provision of land at nil rental.
Abbeyfield will pay full rates on the subject land in accordance with Council’s rating policies.
The land currently provides no income to Council.
Social & Policy
Abbeyfield’s proposition fits well within Councils current focus to retirement housing.
The proposal provides ‘new net housing’ for the elderly.
The communal/shared residential model provides an alternative to the current independent retirement housing provided by Council.
Risk
There is no risk to Council as all due diligence, financing and construction will be met by Abbeyfield.
There is a risk in the event of a default, with regards a mortgage secured against Council land, however legal protections would be built into any agreement.
1.6 Options
The options available to Council are as follows:
a. To agree in principle to subdivide the subject land and lease on a long-term basis to Abbeyfield for Community Housing for the elderly. Noting that the agreement is contingent on certain criteria being met.
b. To decline to approve the proposal in principle at this point.
1.7 Development of Preferred Option
Option a. is the preferred option.
The proposal if successful would provide ‘new net housing’ for the elderly in Napier and provide an alternative communal/shared model of housing.
It is important that for funding applications to succeed Council at this point agrees in principle to the proposal.
1 Abbeyfield Properties Ltd. - Expression of Interest (Doc Id 1831608)
2 Proposed Abbeyfield House - Concept Design (Doc Id 1831609)
3 Aerial view showing Council land outlined in blue (Doc Id 1831607)
2. Treasury Activity and Funding Update
|
Type of Report: |
Information |
|
Legal Reference: |
N/A |
|
Document ID: |
1830854 |
|
Reporting Officer/s & Unit: |
Garry Hrustinsky, Corporate Finance Manager |
|
2.1 Purpose of Report The purpose of this report is to update the Prosperous Napier Committee on Council’s treasury activity.
|
The Prosperous Napier Committee:
a. Receive the report titled Treasury Activity and Funding Update dated 26 February 2025.
Investments
As at 10 February 2025 Council held $4m on term deposit at an average interest rate of 4.25%.
The following table reports the cash and cash equivalents on 10 February 2025:
|
|
$000 |
|
Cash on call* |
$8,029 |
|
Short term bank deposits |
$4,000 |
|
Total cash and deposits |
$12,029 |
*Includes $1.46m of retained funds.
*Includes cash held in accounts.
ANZ have been offering the best deposit rates for terms under 60 days. Due to relatively low cash and term deposit balances currently held by NCC, small deposits can result in significant changes in percentages against limit.
The primary consideration for placing deposits is timing the need for future expenditure, with returns a secondary consideration. Longer-dated investments beyond 60 days are not possible with the current cash balance.
Debt
Council’s current total external debt position as at the 10 February 2025 is $55m. During November 2024 $10m was borrowed from the Local Government Funding Agency (LGFA) in two tranches at fixed interest rates. A further $15m was borrowed in December 2024 in two tranches. The details of Council’s external debt are as follows:
|
Draw date |
Amount |
Interest rate |
Maturity date |
|
21/06/2023 |
$5m |
5.61% |
15/04/2026 |
|
21/06/2023 |
$5m |
5.46% |
15/05/2028 |
|
30/04/2024 |
$5m |
5.73% |
20/04/2029 |
|
30/04/2024 |
$5m |
5.79% |
15/05/2030 |
|
07/10/2024 |
$5m |
4.26% |
15/04/2027 |
|
07/10/2024 |
$5m |
4.92% |
15/05/2031 |
|
19/11/2024 |
$5m |
5.47% |
14/05/2032 |
|
19/11/2024 |
$5m |
5.55% |
14/04/2033 |
|
20/12/2024 |
$10m |
5.43% |
15/05/2035 |
|
20/12/2024 |
$5m |
5.61% |
15/04/2037 |
The interest rate assumptions for internal and external borrowings in the LTP are set out in the table below:
|
Interest rates |
24/25 |
25/26 |
26/27 |
27/28 |
28/29 |
29/30 |
30/31 |
31/32 |
32/33 |
33/34 |
|
External debt |
6.0% |
6.0% |
5.8% |
5.7% |
5.7% |
5.7% |
5.8% |
5.9% |
6.0% |
6.0% |
|
Internal debt |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
6.0% |
Council’s current total internal debt position as at the 1 July 2024 is $97.2m. Internal debt occurs when Council uses its own cash resources (reserves) to finance capital expenditure rather than new external borrowing.
Debt projections are based on the assumption that capital projects budgets will be completed. There is currently a gap of $30.6m between year-end budgeted and actual borrowing.
Council’s debt portfolio is managed within macro limits set out in the Treasury Policy. It is recognised that from time to time Council may fall out of policy due to timing issues. The Treasury Policy allows for officers to take the necessary steps to move Council’s funding profile back within policy in the event that a timing issue causes a breach in policy.
Council is currently compliant with its Treasury Management Policy.
The Reserve Bank of New Zealand (RBNZ) reduced the Official Cash Rate (OCR) by 50 basis points to 4.25% at its last review on the 27 November 2024.
As part of the media briefing the RBNZ noted that inflation was within their 1% to 3% target band, and was likely to remain around the 2% mark. It has been observed that both domestic and international inflation had slowed over the prevailing months.
As with their prior review, RBNZ restated that should inflation remain at, or below, 2% then further rate cuts may be possible in 2025.
Debt to revenue ratio headroom
This is the key measure for Councils debt profile as it is the measure used by Council’s major funders.
The closer Council gets to its limits the more likely it is that it will experience problems raising new debt. A Council with a credit rating would experience a decrease in cost of funds (lower credit rating and higher borrowing margins).
Note that Liquidity to External Debt has decreased by 30% and Net External Debt vs Income has increased by 20.6% since the last report in October 2024 due to a decline in liquid assets offsetting net debt.
Council is currently compliant with its borrowing limits.
Officers are exploring the option around taking on a credit rating. This would unlock more competitive borrowing rates through the LGFA and could increase Council’s debt limit to 280% of its revenue/income (providing more headroom to borrow). There is a cost to maintain a credit rating and requires council’s financials to be externally audited each year. Once Council reaches approximately $100m of external borrowings the interest savings achieved from having a credit rating start to outweigh the audit cost.
2.3 Issues
No issues.
2.4 Significance and Engagement
N/A
2.5 Implications
Financial
N/A
Social & Policy
N/A
Risk
N/A
2.6 Options
The options available to Council are as follows:
a. Receive the report titled Treasury Activity and Funding Update dated 26 February 2025.
b. Amend the report titled Treasury Activity and Funding Update dated 26 February 2025.
c. Reject the report titled Treasury Activity and Funding Update dated 26 February 2025.
2.7 Development of Preferred Option
N/A
Nil
3. Quarterly Performance Report
|
Type of Report: |
Legal and Operational |
|
Legal Reference: |
Local Government Act 2002 |
|
Document ID: |
1831603 |
|
Reporting Officer/s & Unit: |
Talia Foster, Financial Controller Alister Edie, Business Improvement Manager |
|
3.1 Purpose of Report To consider the Napier City Council Quarterly Performance Report for the three months ended 31 December 2024.
|
The Prosperous Napier Committee:
a) Receive the Quarterly Performance Report and Quarterly Report for the three months ended 31 December 2024.
As part of the Three-year Plan process, a resolution was passed directing the Chief Executive to produce enhanced performance reporting, monitoring key performance indicators against their assigned strategic priorities. The Quarterly Performance Report for Q2 2024-25 (attachment 1) is the second edition of this new reporting format.
The Quarterly Performance Report is intended to be a central, holistic report that tracks key performance measures across Council. It will monitor Councils achievement of strategic priorities and will apply consistent reporting frameworks for performance areas.
The new Quarterly Performance Report is a summary of Councils performance against its agreed strategic objectives. The performance measures contained in the previous Quarterly Report format (attachment 2), that track our agreed achievement of service levels for external stakeholders, will continue to be reported as an appendix. This allows the lower detail to be sourced as required and fulfils our Annual Plan reporting requirements.
3.3 Issues
N/A
3.4 Significance and Engagement
N/A
3.5 Implications
Financial
The year-to-date net operating shortfall of $7.9k is $3.6m favourable to the budgeted deficit of $11.5m. This favourable variance is attributable to a combination of factors as outlined below:
Revenue
· Other Revenue is $4.1m lower than budgeted, mainly due to lower Parklands Residential Development sales due to a change in strategy to ensure development and sales are completed with a commercial focus. Revenue at Community and Visitor Experiences facilities are also generally lower than budgeted due to the weather leading to cruise ship cancellations and affecting other tourism, and the cost of living crisis.
Expenditure
· Other Operating Expenses are $8.2m lower than budgeted due to timing of property compensation buyouts related to Cyclone Gabrielle and timing of Parklands Residential Development cost of sales.
· Depreciation and Amortisation are $0.9m lower than budgeted due to the reduced level of asset capitalisation from the previous year.
· This is partially offset by Employee Benefit Expenses which are $2.5m higher than budgeted. Elected Members directed labour efficiencies to be found during three year plan deliberations - directors are working on a strategy to meet these by year end, but they have not been achieved for the second quarter.
Capital
Total capital expenditure for Q2 was $5.4m ahead of the revised budget. The revised budget includes budget carry-forwards from 2023-24 and updated timing/re-phasing of budgets across years/months.
NB this capital expenditure includes Parklands development costs that were later transferred to inventory for sale.
Property Assets spent $2.6m more than budgeted in Q2 driven from development at Parklands areas 4 ($1.1m greater than budget) and the Civic precinct accommodation tower development was $0.9m ahead of budget as $1.2m budget needs to move from operational to capital.
Transportation spent $2.3m more than budgeted in Q2 as the budget for intersection safety improvement projects was not reflective of the actual expenditure profile ($1.4m overspend). Various roading renewal budgets have also progressed ahead of schedule ($886k overspend).
Wastewater spent $2.2m more than budgeted in Q2, with the Greenmeadows pump station improvements overspending by $0.9m due to equipment failures and contract extensions. The Awatoto treatment plant restoration was unbudgeted and funded by insurance ($0.8m overspend), and the wastewater treatment plant upgrade project was ahead of schedule ($0.4m overspend)
Offsetting the capital overspend, Community and Visitor Experiences spent $1.9m less than budgeted in Q2. The Pirates Rugby Club relocation project is behind schedule ($560k underspend), Ocean Spa upgrade work will be carried out in Q3 and Q4 ($300k underspend) and MTG projects for weathertightness and chiller and boiler work were delayed ($330k underspend).
Social & Policy
N/A
Risk
N/A
3.6 Options
The options available to Council are as follows:
a. Receive the Quarterly Performance Report
b. Not to receive the Quarterly Performance Report.
3.7 Development of Preferred Option
Receive the Quarterly Performance Report, and appendix Quarterly Report, for the three months ended 31 December 2024.
1 Attachment 1: Quarterly Performance Report (Doc Id 1831668)
2 Attachment 2: Quarterly Report (Detail) (Doc Id 1831669)
3 Attachment 3: Deliberation Actions Summary (Doc Id 1831667)
4. Submissions Schedule Update 29 August 2024 to 10 February 2025
|
Type of Report: |
Information |
|
Legal Reference: |
N/A |
|
Document ID: |
1829618 |
|
Reporting Officer/s & Unit: |
Jemma McDade, Governance Advisor |
|
4.1 Purpose of Report The purpose of this report is to provide an update on the new process of researching opportunities for Napier City Council (NCC) to submit towards the development of legislation and policy, the agencies being monitored for consultation opportunities, and those opportunities on which NCC did or did not make a submission. This report covers the time period between 29 August 2024 and 10 February 2025. |
The Prosperous Napier Committee:
b. Note the submissions made by Napier City Council during the period 29 August 2024 to 10 February 2025 detailed in the attachment DOC ID 1830268
The previous submissions process was passive, predominantly responding to proposed legislative updates, provided to Governance by Taitaurā and NCC officers.
This existing process was expanded to provide a centralized comprehensive process for monitoring, progressing and recording submissions made on behalf of NCC, and to inform elected members and the community about action taken through regular reporting.
The updated process, endorsed by the Prosperous Napier Committee on 29 August 2024, takes a more proactive approach, actively seeking submission opportunities by monitoring agencies of particular interest. The aim is to provide a wider scope for NCC to contribute to the formation of policy initiatives and legislative reforms.
Initiatives include, but are not limited to; proposed legislation, proposed legislative updates and amendments, public policy direction, and feedback sought from government agencies or representative groups collecting data for joint submissions; for example, Local Government New Zealand or Taituarā.
Following the Prosperous Napier Committee on 29 August 2024, in addition to Taituarā’s legislation ‘Open for submissions’ update, other agencies have been identified as offering consultation opportunities.
Organisations monitored for consultation opportunities as of 10 February 2025:
|
Organisation |
|
New Zealand Infrastructure Commission | Te Waihanga |
|
Ministry for Regulation | Te Manatū Waeture |
|
Wairoa District Council |
|
Water Services Authority | Taumata Arowai |
|
New Zealand Parliament | Pāremata Aotearoa |
|
Environmental Protection Agency | Te Mana Rauhī Taiao |
|
Central Hawkes Bay District Council |
|
Local Government New Zealand |
|
Hastings District Council |
|
Te Tūāpapa Kura Kāinga | Ministry of Housing and Development |
|
Ministry for Primary Industries | Manatū Ahu Matua |
|
Ministry of Youth Development | Te Manatū Whakahiato Taiohi |
|
Beehive.govt.nz |
|
Ministry for the Environment | Manatū mū Te Taiao |
|
Ministry of Business, Innovation and Employment | Hīkina Whakatutuki |
|
Department of Internal Affairs |
|
Te Manatū Waka | Ministry of Transport |
|
Te Kāwanatanga o Aotearoa | New Zealand Government |
|
NZ Transport Agency | Waka Kotahi |
|
Worksafe | Mahi Haumaru Aotearoa |
|
Manatū Hauora | Ministry of Health |
|
Ministry of Justice |
|
Reserve Bank of New Zealand | Tu Pūtea Matua |
|
Department of Conservation | Te Papa Atawhai |
|
Food Standards Australia New Zealand | Te Mana Kounga Kai – Ahitereiria me Aotearoa |
|
Creative New Zealand |
|
New Zealand Intellectual Property Office |
|
Standards New Zealand | Te mana Tautikanga o Aotearoa |
Submission results:
During the period 29 August 2024 to 10 February 2025 there were 29 consultations identified and raised with the relevant Directorates. Seven submissions were made on behalf of NCC.
|
Date of submission |
Directorate |
Name of Requester |
|
4 October 2024 |
Community Services |
Health Select Committee (New Zealand Parliament) |
|
18 October 2024 |
Infrastructure Services |
Water Services Authority | Taumata Arowai |
|
15 December 2024 |
Community Services / Te Waka Rangapū |
Ministry of Culture and Heritage | Manatū Taonga |
|
7 January 2025 |
Corporate Services |
Justice Committee (New Zealand Parliament) |
|
19 January 2025 |
Corporate Services |
Local Government New Zealand |
|
24 January 2025 |
Infrastructure Services |
Water Services Authority | Taumata Arowai |
|
7 February 2025 |
Infrastructure Services |
Ministry of Business, Innovation and Employment (Commerce Commission) |
Opportunities for submission by NCC Directorate:
Note: City Services did not have any opportunities to prepare submissions as no relevant opportunities were available during the reporting period.
Percentage of consultations on which NCC made a submission:
Where a submission was not made, it was requested that a reason be provided. The reasons that were given for not making a submission were: that the team involved in preparing the submission lacked the capacity to do so at the time, the consultation topic was out of the direct scope of NCC work or was a complex technical area which would be better left to agencies with a higher level of expertise. The most common reason for not submitting was that NCC agreed with the proposal and/or that officers supported the submission prepared by Taituarā.
4.3 Issues
There are no significant issues involved in the expansion of this process. NCC is seeking to ensure that the process for submitting on initiatives open for consultation is consistent and visible across NCC to demonstrate that NCC is effectively contributing to developing initiatives that affect core Council business.
The process requires that draft submissions are circulated to Elected Members five working days prior to the submission being made. This has been challenging to consistently maintain as some of the submission time periods are short, or information from supporting agencies is only available to officers close to the submission date. For these reasons, the five working days may not always be possible, but best efforts will be made to adhere to this timeframe.
4.4 Significance and Engagement
The submissions process does not trigger the NCC Significance and Engagement Policy, but will be reported on regularly to this Committee.
4.5 Implications
Financial
Nil
Social & Policy
Nil
Risk
Nil
4.6 Options
The options available to Council are as follows:
a. Receive the report titled Submissions Schedule Update 29 August 2024 to 10 February 2025 dated 26 February 2025.
b. Note the submissions made by Napier City Council during the period 29 August 2024 to 10 February 2025 detailed in the attachment DOC ID 1830268
OR
a. Not Receive the report titled Submissions Schedule Update 29 August 2024 to 10 February 2025 dated 26 February 2025, not noting the submissions made by Napier City Council during the period 29 August 2024 to 10 February 2025 detailed in the attachment DOC ID 1830268
4.7 Development of Preferred Option
Elected members are provided with a draft copy of all submissions made on behalf of NCC prior to the submission being made. The submission process will continue to be progressed, including the search for further agencies with which to engage, and report back to the Prosperous Napier Committee biannually.
1 Submission Schedule Update 29 August 2024 to 10 February 2025 Extract DOC ID 1830268
|
Submission Schedule Update 29 August 2024 to 10 February 2025 Extract DOC ID 1830268 |
Item 4 - Attachment 1 |
Prosperous Napier Committee
Open Minutes
|
Meeting Date: |
Thursday 10 October 2024 |
|
Time: |
9:30am – 10:47am |
|
Venue |
Large Exhibition Hall |
|
|
Livestreamed via Council’s Facebook page |
|
Present |
Chair: Councillor Crown Members: Mayor Wise, Deputy Mayor Brosnan, Councillors, Browne, Greig, Mawson, McGrath, Price, Simpson [online] and Tareha Ngā Mānukanuka o te Iwi representative – Evelyn Ratima |
|
In Attendance |
Chief Executive (Louise Miller)[online] Acting Executive Director Corporate Services (Caroline Thomson) Acting Executive Director City Services (Jessica Ellerm) Executive Director City Strategies (Rachael Bailey) Executive Director Infrastructure Services (Russell Bond) Executive Director Community Services (Thunes Cloete) Corporate Finance Manager (Garry Hrustinsky) Commercial Director (Richard Munneke) Financial Controller (Talia Foster) Manager Strategy and Transformation (Stephanie Murphy) Senior Advisor Corporate Planning (Danica Rio) Manager Community Strategies (Anne Bradbury) |
|
Also in attendance |
Jon Nichols (Director) and Rochelle Ham (Chief Financial Officer) – Hawke’s Bay Airport Limited |
|
Administration |
Governance Advisors (Carolyn Hunt and Jemma McDade) |
Prosperous Napier Committee – Open Minutes
Table of Contents
Order of Business Page No.
Karakia
Apologies
Conflicts of interest
Public forum
Announcements by the Mayor
Announcements by the Chairperson
Announcements by the management
Confirmation of minutes
Agenda Items
1. Hawke's Bay Airport Limited Annual Report for the year ended 30 June 2024
2. Budgets to be carried forward to 2024/25
3. Hawke's Bay Museums Trust Annual Report for year ending 30 June 2024
4. Treasury Activity and Funding Update
5. Cyclone Gabrielle Category 3 Voluntary Buyout Progress Update
Minor matters
Resolution to Exclude the Public
Order of Business
The meeting opened with the Council karakia.
|
Councillors Mawson / Tareha That the apologies for absence from Councillors Taylor, Chrystal and Boag be accepted. Carried |
Nil
Nil
Nil
Announcements by the Chairperson
Nil
Announcements by the management
Nil
|
Councillors Tareha / Crown That the Minutes of the Prosperous Napier Committee meeting held on 29 August 2024 were taken as a true and accurate record of the meeting. Carried |
1. Hawke's Bay Airport Limited Annual Report for the year ended 30 June 2024
|
Type of Report: |
Legal |
|
Legal Reference: |
Local Government Act 2002 |
|
Document ID: |
1792950 |
|
Reporting Officer/s & Unit: |
Caroline Thomson, Chief Financial Officer |
1.1 Purpose of Report
To present to Council the Hawke’s Bay Airport Limited Annual Report for the year ended 30 June 2024.
|
At the meeting Jon Nichols (Director) and Rochelle Ham (Chief Financial Officer) of the Hawke’s Bay Airport presented to the meeting. Rochelle added a further two items to the highlights update; the naming of the new Fire Truck and the successful ambassador programme. The naming of the fire truck garnered a high level of community engagement. Jon provided the update that the Board is proud to be delivering on the Digital Strategy. Questions were answered clarifying: · The Board is actively engaging with Air New Zealand regarding future planning. Air New Zealand have requested increased awareness of events across the region, even smaller events, to enable them to efficiently plan their service. Napier has been identified as one of the main trunk routes. The Board is working with Air New Zealand to maximise opportunities for Hawke’s Bay. · The Board is aware that no recent dividend has been paid as the focus has been on repaying debt. This position is under review. · The apron is renewed on a five yearly basis, with some delay due to Cyclone Gabrielle. The runway renewal is the next big project. · First arrivals certification would require international service. The Board is focusing on the future of the domestic service, promoting Napier as a key ‘spoke’ port for Air New Zealand. The significant costings, both to the runways and from the CAA to support international services put this out of reach. |
|
|
Committee resolution
|
Mayor Wise / Councillor Mawson The Prosperous Napier Committee: a. Receive the Hawke's Bay Airport Limited Annual Report and Auditors Report for the year ended 30 June 2024. Carried |
|
|
Attachments 1 HB Airport presentation (Doc Id 1736691) |
2. Budgets to be carried forward to 2024/25
|
Type of Report: |
Operational |
|
Legal Reference: |
Local Government Act 2002 |
|
Document ID: |
1791694 |
|
Reporting Officer/s & Unit: |
Caroline Thomson, Chief Financial Officer Steve Walling, Senior Management Accountant Talia Foster, Financial Controller |
2.1 Purpose of Report
To seek Council approval to carry forward budgets from 2023/24 into 2024/25.
|
At the meeting The Officer presented the report, noting changes to the Capex carry forward which will affect community and visitor experiences, property assets, storm and wastewater. The Opex total carry forward has also been updated which will affect community and visitor experiences, other infrastructure and support units. Questions were answered clarifying: · The Capex items were removed due to timing regarding the budgeting. These are to be moved into the next annual plan. The rationale was to be realistic with what can be achieved, due to the size of the capital programme, with the aim of reducing carry forwards. · The Surface Water Quality Masterplan is reinstated in the capital carry forward budgeted expenditure. · The approximately $26 million difference between total spend for completed capital projects compared to the spend for delivered capital projects, is for projects that are still being progressed. · Gifted/vested assets are typically from developers. They create assets as part of a development and these are vested back to Council. |
|
|
Committee resolution
|
Deputy Mayor Brosnan / Councillor Crown The Prosperous Napier Committee: a) Approve capital carry forward budgeted expenditure of $19,903.077 from 2023/24 into 2024/25. b) Approve operational carry forward budgeted expenditure of $3,158,607 from 2023/24 into 2024/25.
ACTION: To provide information to show which of the carried forward Capex funded projects would have been one year projects and how many are multi year. ACTION: To provide information to show which of these projects should have been completed in this financial year and the reasons that they haven’t been completed. ACTION: To provide detail for gifted/vested assets to show the asset which relates to the figures. Carried |
|
|
Attachments 1 Amended Opex C-fwds 23-24 to 24-25 (Doc Id 1800520) 2 Amended Capex C-fwds 23-24 to 24-25 (Doc Id 1800521) 3 Removed by ELT Capex C-fwds 23-24 to 24-25 (Doc Id 1800519) |
3. Hawke's Bay Museums Trust Annual Report for year ending 30 June 2024
|
Type of Report: |
Operational |
|
Legal Reference: |
Local Government Act 2002 |
|
Document ID: |
1793360 |
|
Reporting Officer/s & Unit: |
Caroline Thomson, Chief Financial Officer |
|
3.1 Purpose of Report To provide Napier City Council with the Hawke’s Bay Museums Trust Annual Report for the year ended 30 June 2024.
|
|
At the meeting The Financial Controller (Talia Foster) joined the officer to present the report. Questions were answered clarifying:
|
|
|
Committee resolution
|
Councillors Greig / Mawson The Prosperous Napier Committee: a. Receive the Hawke’s Bay Museum Trust Annual Report (Doc Id 1798253) for the year ended 30 June 2024. ACTION: To provide information relating to unspent grants and how many of these are targeted to a particular project or period of time. Carried |
4. Treasury Activity and Funding Update
|
Type of Report: |
Information |
|
Legal Reference: |
N/A |
|
Document ID: |
1796806 |
|
Reporting Officer/s & Unit: |
Garry Hrustinsky, Corporate Finance Manager |
|
4.1 Purpose of Report The purpose of this report is to update the Prosperous Napier Committee on Council’s treasury activity. |
|
At the meeting The officer presented the report, updating the Committee that Council borrowed a further $10million of funds on 10 October in two issues of $5 million for between five and seven years to fill in the maturity profile. Cash balance is sitting at a little over $15 million. Surplus balance will be reinvested. Questions were answered clarifying:
|
|
|
Committee resolution
|
Councillors Crown / Mawson The Prosperous Napier Committee: a. Receive the report titled Treasury Activity and Funding Update dated 10 October 2024. Carried |
5. Cyclone Gabrielle Category 3 Voluntary Buyout Progress Update
|
Type of Report: |
Operational |
|
Legal Reference: |
Local Government Act 2002 |
|
Document ID: |
1792942 |
|
Reporting Officer/s & Unit: |
Richard Munneke, Commercial Director Anne Bradbury, Manager Community Strategies |
|
5.1 Purpose of Report The purpose of this report is to update Council on the progress made by Napier City Council (NCC) and Hastings District Council (HDC) with the category 3 voluntary buyout activity and report the current financial status of the buyout within the crown funding cap. |
|
At the meeting The officers presented the report updating the Committee that progress has been good with the voluntary buy-out process. This has been a new activity for Council. Council officers have been community facilitators for the 14 category 3 properties and these are in the final stages of the offer process. The demolition of residential buildings and site remediation is progressing and the costs are on track. Questions were answered clarifying:
|
|
|
Committee resolution
|
Councillors Price / Browne The Prosperous Napier Committee: a. Receive the report noting: i. Progress with the Category 3 voluntary residential buyout programme in terms offers being accepted. ii. That the category 3 buyout actual expenditure and forecast is expected to use most of the contingency but remain within the $5m cap specified in the Crown Agreement. iii. 5 properties are now in Council ownership. iv. Progress with site remediation. Carried |
Fast Track Consenting Projects
Executive Director Infrastructure Services (Russell Bond) updated the Committee regarding the NCC projects which had applied for Fast Track Consenting. The Taradale/Awatoto borefield project was successful in achieving fast track status. This means that, although still carried out through Hawkes Bay Regional Council, some of the consenting process can be streamlined. This will reduce costs as the two consent processes can be combined.
ACTION: to continue to update the Sustainable Napier Committee with progress on the Fast Track process in relation to the Taradale/Awatoto borefield.
ACTION: to determine the impact on Council’s Regulatory team when processing Fast Track Consenting projects.
Resolution to EXCLUDE the Public
|
Councillors Tareha / Greig That the public be excluded from the following parts of the proceedings of this meeting, namely: 1. Request for Rates Remission for Special Circumstances 2. Property Disposal Acquired via the Category 3 Buyout Process 3. Draft 2023/24 Annual Report 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. |
Plain English reason for passing this resolution in relation to each matter. |
|
1. Request for Rates Remission for Special Circumstances |
7(2)(a) Protect the privacy of natural persons, including that of a deceased person |
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: |
Remission applications under the Special Circumstances clause are public excluded as they include private information and potentially sensitive topics. |
|
2. Property Disposal Acquired via the Category 3 Buyout Process |
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: |
To protect Council's negotiating position with potential purchasers of Category 3 land and/or dwellings. |
|
3. Draft 2023/24 Annual Report |
7(2)(c)(ii) Protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely to damage the public interest |
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: |
The information contained within is draft and still subject to audit to confirm the accuracy and completeness of the information. Until it has been verified, it should be treated as confidential. |
|
Public Excluded Text |
|||
|
Council has considered the public interest in the information above and balanced those interests with the reason(s) for withholding this information. This ensures Council has met the requirements for withholding information under section 7(2) of the Local Government and Official Information and Meetings Act 1987. |
|||
The meeting moved into Public Excluded at 10:47am
|
Approved and adopted as a true and accurate record of the meeting.
Chairperson ......................................................................................................................
Date of approval ............................................................................................................... |
