Minutes of Finance and Performance Committee

Palmerston North City Council

Minutes of the Finance and Performance Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 18 September 2017, commencing at 9.02am

Members

Present:

Councillor Susan Baty (in the Chair), The Mayor (Grant Smith) and Councillors Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Apologies:

Councillor Jim Jefferies (for lateness).

At the beginning of the meeting Councillor Rachel Bowen congratulated the ‘Play Palmy’ on behalf of the Council for it’s award on the ‘Right to Play’ programme category at the International Play Association Conference in Calgary, Canada

Councillor Jim Jefferies entered the meeting at 9.42am during consideration of clause 66. He was not present for clauses 66 to 68 inclusive.

66-17

Apologies

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 66-17 above was carried 15 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

67-17

Confirmation of Minutes

Moved Vaughan Dennison, seconded Gabrielle Bundy-Cooke.

The COMMITTEE RESOLVED

1. That the minutes of the Finance and Performance Committee meeting of 21 August 2017 Part I Public be confirmed as a true and correct record.

Clause 67-17 above was carried 12 votes to 0, with 3 abstentions, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor and Bruno Petrenas.

Abstained:

Councillors Leonie Hapeta, Aleisha Rutherford and Tangi Utikere.

68-17

Palmerston North Airport Ltd - Comment on Annual Report for 12 months ended 30 June 2017 & Instructions Relating to Annual Meeting

Memorandum, dated 31 August 2017 from the Strategy Manager Finance, Steve Paterson.

Moved Tangi Utikere, seconded Leonie Hapeta.

The COMMITTEE RECOMMENDS

1. That the Annual Report and Financial Statements of Palmerston North Airport Limited for the year ended 30 June 2017 be received.

2. That the Council shareholder representative be instructed to support the proposed resolutions to be considered at the Annual Meeting of Palmerston North Airport Limited to be conducted by way of resolution in writing.

Clause 68-17 above was carried 15 votes to 0, the voting being as follows:

For:

69-17	Recommendation for Adoption 2016/17 Annual Report Memorandum, dated 5 September 2017 from the Financial Accountant, Keith Allan. Councillor Jim Jefferies entered to the meeting at 9:42am During discussion Elected Members decided that in the public interest that the Councillor Portfolios be included in the “Year in Review” of the 2016/17 Annual Report.
	Moved Vaughan Dennison, seconded Lew Findlay QSM. The COMMITTEE RECOMMENDS 1. That the Committee recommend to Council that the 2016/17 Annual Report and 2016/17 Summary Annual Report be adopted. 2. That the Committee note that an Auditor’s “opinion” from Audit New Zealand would be expected to be received immediately following recommended adoption by Council on 25 September 2017 and Council signing of the reports. 3. That delegated authority is given to the Chairperson and Deputy Chairperson of the Finance and Performance Committee to make minor amendments to the 2016/17 Annual Report and 2016/17 Summary Annual Report. 4. That the Committee note that recommendation 2 be varied in that the Statement of Compliance and Responsibility will also be signed by Grant Elliott, Chief Financial Officer.
	Clause 69-1 to 69-4 inclusive above were carried 16 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.
	Moved Leonie Hapeta, seconded Brent Barrett. 5. That the Councillor Portfolios be included on page 9 of the “Year in Review”.
	Clause 69.5 above was carried 15 votes to 1, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Against: Councillor Karen Naylor.

70-17	Capital New Programme Adjustments for 2017-18 Memorandum, dated 14 August 2017 from the Water & Waste Services Manager, Robert van Bentum. Elected Memebers decided that it would be useful for the Chief Executive to report back on a process around reallocating and prioritising underspend on programmes.
	Moved Gabrielle Bundy-Cooke, seconded Jim Jefferies. The COMMITTEE RECOMMENDS 1. That a new 2017/18 Rubbish and Recycling Capital New Programme called “Awapuni Lease Property Improvements” with a budget of $40,000 be created by utilising savings of $40,000 from Water Capital New Programme 610 – “Turitea Valley Road / Pacific Drive New Water Supply Link.” 2. That a new 2017/18 Water Capital New Programme called “Turitea WTP Access Road Retaining Wall” with a budget of $180,000 be created by utilising savings of $180,000 from Water Capital New Programme 610 – “Turitea Valley Road / Pacific Drive New Water Supply Link”. 3. That the budget for the 2017/18 Wastewater Capital New Programme “1048 Totara Road WWTP – Construction of New Food Waste Facilities” be revised from $101,000 to $150,000 by utilising savings of $49,000 from Water Capital New Programme 610 – “Turitea Valley Road / Pacific Drive New Water Supply Link.” 4. That the budget for the 2017/18 Wastewater Capital New Programme “570 Totara Road WWTP – Replacement of Inlet Screens (Growth)” be revised from $385,000 to $475,000 by utilising savings of $90,000 from Water Capital New Programme 610 – “Turitea Valley Road / Pacific Drive New Water Supply Link”.
	Clause 70.1 to 70.4 inclusive above were carried 16 votes to 0, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.
	Moved Lorna Johnson, seconded Leonie Hapeta. 5. That the Chief Executive report back on a process for reallocation and prioritisation of underspending on programmes.
	Clause 70.5 above was carried 10 votes to 6, the voting being as follows: For: Councillors Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Karen Naylor, Aleisha Rutherford and Tangi Utikere. Against: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Jim Jefferies, Duncan McCann and Bruno Petrenas.

71-17

Victoria Esplanade Erosion

Report, dated 17 August 2017 from the Parks & Property Manager, John Brenkley.

Moved Grant Smith, seconded Aleisha Rutherford.

The COMMITTEE RECOMMENDS

1. That Council contribute $125,000 to Horizons RC to rock line the riverbank below the Victoria Esplanade to prevent further erosion occurring in this location as an accommodated operational cost within the City Reserves General Activity. Furthermore it be noted that this contribution is unbudgeted and that the activity will be monitored and any likely overspend be reported back.

Clause 71-17 above was carried 14 votes to 2, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Against:

Councillors Leonie Hapeta and Karen Naylor.

72-17

Committee Work Schedule September 2017

Moved Susan Baty, seconded Jim Jefferies.

The COMMITTEE RESOLVED

1. That the Finance and Performance Committee receive its Work Schedule dated September 2017.

Clause 72-17 above was carried 16 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.

Exclusion of Public

73-17

Recommendation to Exclude Public

Moved Susan Baty, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

“That the public be excluded from the following parts of the proceedings of this meeting listed in the table below.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under Section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered		Reason for passing this resolution in relation to each matter	Ground(s) under Section 48(1) for passing this resolution
11.	Minutes of the Finance and Performance Committee meeting - Part II Confidential - 21 August 2017	For the reasons setout in the Finance and Performance Committee minutes of 21 August 2017, held in public present.
12.	Increase in Leased Reserve Land for Hokowhitu School Pool	Commercial Activities	s7(2)(h)
13.	Sale of land - request to amend settlement date	Negotiations	s7(2)(i)

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by Section 6 or Section 7 of that Act which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public as stated in the above table.

Also that the persons listed below be permitted to remain after the public has been excluded for the reasons stated.

Chief Executive (Heather Shotter), Chief Financial Officer (Grant Elliott), General Manager, City Enterprises (Ray McIndoe), General Manager, City Future (Sheryl Bryant), General Manager, City Networks (Ray Swadel), General Manager, Customer Services (Peter Eathorne), General Manager, Libraries and Community Services (Debbie Duncan), Human Resources Manager (Wayne Wilson) and Communications Advisor (or their representative (Brigette Marulli de Barletta) because of their knowledge and ability to provide the meeting with advice on matters both from an organisation-wide context (being members of the Council’s Management Team) and also from their specific role within the Council.

Legal Counsel (John Annabell), because of his knowledge and ability to provide the meeting with legal and procedural advice.

Governance and Support Team Leader (Kyle Whitfield) and Committee Administrators (Penny Odell, Carly Chang and Rachel Corser), because of their knowledge and ability to provide the meeting with procedural advice and record the proceedings of the meeting.

Parks and Property Manager (John Brenkley), Property Officer (Bryce Hosking), Strategy Manager – Finance (Steve Paterson) , because of their knowledge and ability to assist the meeting in speaking to their report and answering questions, noting that such officer will be present at the meeting only for the item that relate to their respective report.

Clause 73-17 above was carried 16 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 11.31am

Confirmed 16 October 2017

Chairperson