Agenda of Finance and Performance Committee

PALMERSTON NORTH CITY COUNCIL

Finance and Performance Committee MEETING

18 December 2017

Order of Business

Pursuant to Sections 46A(7) and 46A(7A) of the Local Government Official Information and Meetings Act 1987, to receive the Chairperson’s explanation that specified item(s), which do not appear on the Agenda of this meeting and/or the meeting to be held with the public excluded, will be discussed.

Any additions in accordance with Section 46A(7) must be approved by resolution with an explanation as to why they cannot be delayed until a future meeting.

Any additions in accordance with Section 46A(7A) may be received or referred to a subsequent meeting for further discussion. No resolution, decision or recommendation can be made in respect of a minor item.

3. Public Comment

To receive comments from members of the public on matters specified on this Agenda or, if time permits, on other Committee matters.

(NOTE: If the Committee wishes to consider or discuss any issue raised that is not specified on the Agenda, other than to receive the comment made or refer it to the Chief Executive, then a resolution will need to be made in accordance with clause 2 above.)

4. Confirmation of Minutes Page 7

“That the minutes of the Finance and Performance Committee meeting of 20 November 2017 Part I Public be confirmed as a true and correct record.”

5. Planning Fees & Charges - Confirmation Following Public Consultation Page 13

Memorandum, dated 4 December 2017 from the Strategy Manager Finance, Steve Paterson.

6. Update of Treasury Policy (incorporating Liability Management & Investment Policy) Page 15

Memorandum, dated 4 December 2017 from the Strategy Manager Finance, Steve Paterson.

7. Central Energy Trust Wildbase Recovery Naming Rights Memorandum of Understanding and Update Page 61

Report, dated 27 November 2017 from the Senior Property & Parks Planner, Aaron Phillips.

8. Conference Opportunity - Digital Nations 2030 Page 81

Memorandum, dated 4 December 2017 from the Governance & Support Team Leader, Kyle Whitfield.

9. Committee Work Schedule Page 89

10. Exclusion of Public

To be moved:

“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 - 20 November 2017	For the reasons setout in the Finance and Performance Committee minutes of 20 November 2017, held in public present.
12.	Library Redevelopment Project - Update	Commercial Activities	s7(2)(h)

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 and Marketing Manager (or their representative (name)) 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.

Manager, Service Delivery (Linda Moore), 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.

WT Partnership (Warren Wilkes) and Athfield Architects (Michelle Cooper), because of their knowledge and ability to assist the meeting in speaking to their report/s [or other matters as specified] and answering questions, noting that such person/s will be present at the meeting only for the items that relate to their respective report/s [or matters as specified].

PALMERSTON NORTH CITY COUNCIL

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 20 November 2017, commencing at 9:02am

Members

Present:

Councillor Susan Baty (in the Chair), and Councillors Brent Barrett, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

Apologies:

The Mayor (Grant Smith) and Councillors Rachel Bowen and Aleisha Rutherford.

89-17

Apologies

Moved Susan Baty, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 89-17 above was carried 13 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

90-17

Notification of Late Item

Moved Susan Baty, seconded Tangi Utikere.

The COMMITTEE RESOLVED

1. That the Committee receive the late item. That subject to Section 46A(7) of the Local Government Official Information and Meetings Act 1987 and in accordance with the advice by the Chairperson the following item be considered as an urgent item:

(i) Memorandum, titled “Ashhurst Domain – Manawatu River Bank Protection Works Upgrade”.

As the item was not available at the time the Agenda was circulated; and consideration of the item was a matter of urgency, requiring a decision without delay to enable the Council to manage relationships, meet deadlines, finalise decisions and receive information within agreed timeframes.

Clause 90-17 above was carried 13 votes to 0, the voting being as follows:

For:

91-17

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 16 October 2017 Part I Public be confirmed as a true and correct record.

Clause 91-17 above was carried 13 votes to 0, the voting being as follows:

For:

92-17

Conference Opportunity - Towards Healthier Homes: the rental WoF

Memorandum, dated 7 November 2017 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Susan Baty, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1. That the Committee approve the attendance of up to 2 elected members to attend, with expenses paid, the University of Otago Summer School – Towards Healthier Homes: the rental WoF being held on Monday 26 February 2018.

2. That, registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Governance and Support Team Leader, by 12 noon Friday 24 November 2017.

Clause 92-17 above was carried 13 votes to 0, the voting being as follows:

For:

93-17

Conference Opportunity - Art and Public Health: Tackling Climate Change

Memorandum, dated 7 November 2017 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Gabrielle Bundy-Cooke, seconded Lorna Johnson.

The COMMITTEE RESOLVED

1. That the Committee approve the attendance of up to 2 elected members to attend, with expenses paid, the University of Otago Summer School – Art and Public Health: Tackling Climate Change being held on Friday 23 February 2018.

2. That, registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Governance and Support Team Leader, by 12 noon Friday 24 November 2017.

Clause 93-17 above was carried 13 votes to 0, the voting being as follows:

For:

94-17

Conference Opportunity - National Freshwater Conference 2018

Memorandum, dated 7 November 2017 from the Governance & Support Team Leader, Kyle Whitfield.

Moved Duncan McCann, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Committee approve the attendance of up to 2 elected members to attend, with expenses paid, the National Freshwater Conference 2018 being held on 14 and 15 February 2018.

2. That, registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Governance and Support Team Leader, Kyle Whitfield, by 12 noon Friday 24 November 2017.

Clause 94-17 above was carried 11 votes to 2, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Tangi Utikere.

Against:

Councillors Lew Findlay QSM and Leonie Hapeta.

95-17

Ashhurst Domain - Manawatu River Bank Protection Works Update

Memorandum, dated 16 November 2017 from the General Manager - City Networks, Ray Swadel.

Moved Gabrielle Bundy-Cooke, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the update information regarding funding the Manawatu River bank protection works adjacent to the Ashhurst Domain immediately upstream of the State Highway Ashhurst Bridge be received.

Clause 95-17 above was carried 13 votes to 0, the voting being as follows:

For:

96-17

Committee Work Schedule

Moved usan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

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

Clause 96-17 above was carried 13 votes to 0, the voting being as follows:

For:

Exclusion of PUBLIC

97-17

Recommendation to Exclude Public

Moved Tangi Utikere, seconded Karen Naylor.

The COMMITTEE RESOLVED

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

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
10.	Minutes of the Finance and Performance Committee meeting - Part II Confidential - 16 October 2017	For the reasons setout in the Finance and Performance Committee minutes of 16 October 2017, held in public present.
11.	Award of Contract 3473 - Arena 2 New Retractable Seating	Negotiations	s7(2)(i)
12.	Award of Contract 3476 - Cuba Street Renewal (Pitt Street to George Street)	Third Party Commercial and Negotiations	s7(2)(b)(ii) and s7(2)(i)

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

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

Building Asset Officer (Ian Stuart) and Infrastructure and Projects Engineer (Mark Read) 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 97-17 above was carried 13 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 9.14am

Confirmed 18 December 2017

Chairperson

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 18 December 2017

TITLE: Planning Fees & Charges - Confirmation Following Public Consultation

DATE: 4 December 2017

AUTHOR/S: Steve Paterson, Strategy Manager Finance, City Corporate

RECOMMENDATION(S) TO Council

1. That the following charges for Planning Services be approved effective from 1 January 2018:

· Boundary activities (under section 87BA of the Resource Management Act 1991) – a fixed fee and deposit of $270.

· Marginal/temporary breaches (under section 87BB of the Resource Management Act 1991) – a fixed fee and deposit of $270.

· Hearing commissioners appointed at the request of applicants (under section 357AB of the Resource Management Act 1991) – charge at cost plus disbursements of the independent commissioner.

1. ISSUE

At its meeting on 24 October 2017 the Council approved additional fees and charges for planning services, necessary because of changes to the Resource Management Act 1991, subject to public consultation. This memo now recommends confirmation of the fees and charges.

2. BACKGROUND

2.1 Previous Council Decision

On 24 October 2017 Council approved fees and charges for boundary activities and marginal/temporary breaches, two new activities required to be undertaken by the Council as a consequence of amendments to the Resource Management Act 1991 which became effective from 18 October 2017. In addition the changes to the Act enabled resource consent applicants or consent holders to request their application against a decision be heard by an independent commissioner in certain circumstances. Council approved charging for the commissioner’s time at cost plus disbursements. These approvals were subject to public consultation.

2.2 Public Consultation

Public consultation was carried out over the period from 30 October to 1 December 2017. It involved public notices in local media and on Council’s website.

No submissions were received.

No changes are recommended to the fees provisionally adopted at the October meeting as a consequence of the public consultation process.

3. NEXT STEPS

Once approved the fees and charges will be published as an addendum on Council’s website and in all relevant fees and charges brochures and implemented from 1 January 2018.

Attachments

NIL

Steve Paterson

Strategy Manager Finance

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 18 December 2017

TITLE: Update of Treasury Policy (incorporating Liability Management & Investment Policy)

DATE: 4 December 2017

AUTHOR/S: Steve Paterson, Strategy Manager Finance, City Corporate

RECOMMENDATION(S) TO Council

1. That the updated Treasury Policy (incorporating the Liability Management and Investment Policy pursuant to section 102 of the Local Government Act 2002) as attached to this report be adopted.

2. That it be noted the Council will be reviewing the specific borrowing limits contained in clause 3.6.1 of the Policy as part of the process of developing its Financial Strategy for the 2018-28 10 Year Plan and that if the outcome of this is there are changes to these limits the Policy will be updated to include them.

1. ISSUE

Council adopted its current Treasury Policy on 28 October 2014. One of the terms of the Policy is that it will be reviewed every three years. This report recommends the adoption of an updated policy containing a number of minor changes to reflect changed circumstances, all of which have no significant impact on the way the treasury operations are managed.

2. BACKGROUND

The Council is required under section 102 of the Local Government Act 2002 to adopt a Liability Management Policy and an Investment Policy. As they are operational in nature these policies can be adopted by ordinary resolution of the Council.

Our Council chooses to combine the two policies into one document called a Treasury Policy and latest version of this Policy was adopted by the Council on 28 October 2014.

The Policy itself states it will be reviewed three yearly.

The following issues have arisen through the operation of the current policy:

· Management of the swap portfolio is reliant on the rolling 12 month forecast levels of debt – as capital expenditure and consequentially the level of debt has been lower than budgeted it has proved difficult to forecast realistically and therefore make appropriate decisions. Initially the debt forecasts (for the purposes of the policy) were based on the approved budget but more recently these figures have been discounted. The initial approach led for a period to being over-hedged.

· Occasionally the fixed rate maturity profile and the funding maturity profile has not been within the prescribed policy bands. This has meant it has been necessary for the Council to specifically acknowledge this by resolution. Sometimes with the passage of time the position self corrects – a proposed amendment indicates that such corrections (if they occur within 90 days) mean it will not be considered a policy breach.

· ISDA credit lines (for financial instrument/swap transactions) are maintained with three major banks (Westpac, ANZ and BNZ) – competitive quotes are obtained for each transaction. In addition funding lines are maintained with Westpac and ANZ. These arrangements provide market tension.

· Most of the Council’s debt is raised through the Local Government Funding Agency (LGFA) as they are able to provide funds more cost effectively than the banks. Each time funding is required the LGFA’s rates are compared with what else is available in the market. Occasionally the Council has been able to issue its own bonds at competitive rates. LGFA’s lawyers review all documentation associated with each debt issue.

· Computershare is engaged as Council’s registrar for stock on issue. They have comprehensive checks and balances to ensure interest and principal sums are paid as due. The stock register is independently audited each year.

· Details of all debt and financial instruments are recorded in an external on-line treasury management system. This provides certainty for regular position, valuation and interest accrual reports.

· Similar details are also held in a spreadsheet which is shared with Council’s treasury advisors (PricewaterhouseCoopers) and is used as the basis for monthly meetings concerning strategy. It is also audited by them from time to time.

· The Council’s overall debt position is reviewed annually by S&P Global Ratings who have continued to award Council a AA long term credit rating.

· Council’s external auditors review in some detail processes and outcomes associated with the management of debt and associated financial instruments. To date this has not resulted in any matters of concern being brought to Council’s attention. The auditors are also separately engaged to provide an assurance report to Council’s Trustee (Covenant Trustee Services Ltd).

Key changes proposed in the draft attached include:

· An explicit objective to maintain a long term credit rating of at least AA (1.2.1).

· Clarifying that a fixed rate maturity profile and a funding maturity profile which is outside the prescribed limits but which self corrects within 90 days is not a policy breach (3.2.9 & 3.3.5).

· Enabling longer term fixed rate swaps to match longer dated bonds issued by the LGFA (3.2.12 & 3.3.5).

· Removing references to the long term investment fund as this will be fully realised before 31 December 2017.

· Inserting a clause indicating Council’s intention to invest in an ethical manner (4.1.4).

· Indicating that in addition to the other reasons shown, treasury investments are held to match retentions held ‘on trust’ for the benefit of contractors under the Construction Contracts Act 2002 as well as to pre-fund refinancing of maturing debt (4.2.1).

· Update to show the Council holds an equity investment in CEDA and to reflect the change of the name of the NZ Local Government Insurance Corporation Ltd to Civic Financial Services Ltd.

· Update to reflect the current arrangements for ownership and management of the Council’s forests.

· Update glossary of terms.

No change has been made to the specific borrowing limits (3.6.1) but a footnote indicates they are being reviewed as part of the development of the financial strategy for the 2018-28 10 Year Plan and that if changes are approved through that process the Policy will be consequentially updated.

3. NEXT STEPS

Once the updated Policy is approved it will be made available to financial institutions, advisors and published on Council’s website.

4. Compliance and administration

Does the Committee have delegated authority to decide?	No
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	Yes

Attachments

Treasury Policy - Updated draft 2017 ⇩

Steve Paterson

Strategy Manager Finance

PALMERSTON NORTH CITY COUNCIL

Report

TO: Finance and Performance Committee

MEETING DATE: 18 December 2017

TITLE: Central Energy Trust Wildbase Recovery Naming Rights Memorandum of Understanding and Update

DATE: 27 November 2017

AUTHOR/S: Aaron Phillips, Senior Property & Parks Planner, City Networks

RECOMMENDATION(S) TO Council

1. That the Central Energy Trust Wildbase Recovery Naming Rights Memorandum of Understanding as appended to the report dated 27 November 2017 be approved for signing.

2. That Council note progress on the construction of Central Energy Trust Wildbase Recovery facility in the Victoria Esplanade.

Summary of options analysis for

Problem or Opportunity	Central Energy Trust has provided $2 million towards the construction of Wildbase Recovery and $25,000 a year for 10 years towards the operational costs. A memorandum of understanding (MoU) formalising the naming rights understanding is required. This report provides a draft MoU for approval. Central Energy Trust Wildbase Recovery construction is nearing 50% complete. This report provides an update on progress.
OPTION 1:	Approve signing the draft Memorandum of Understanding with Central Energy Trust for Wildbase Recovery Naming Rights
Community Views	No objections have been received since the announcement of Central Energy Trust as the naming rights sponsor. There has been strong support for the Central Energy Trust’s involvement in officer interactions with the community.
Benefits	Finalises the naming rights relationship. Provides for understanding across the stakeholders in the project.
Risks	Requires a commitment to the rights and responsibilities noted in the agreement.
Financial	Finalises the largest contribution to the heavily community funded project.
OPTION 2:	Revise the Memorandum of Understanding to address any specific concerns Councillors may have.
Community Views	No objections have been received since the announcement of Central Energy trust as the naming rights sponsor. There has been strong support for the Central Energy Trust’s involvement in officer interactions with the community.
Benefits	Addresses any concerns Councillors may have about the MoU
Risks	CET are happy with the current MOU. Changes to it risk some frustration from CET.
Financial	Finalises the largest contribution to the heavily community funded project.
Contribution of Recommended Option to Council’s Strategic Direction	Active Recreation Strategy 2013 seeks “City reserves have unique features emphasising their individuality”. Central Energy Wildbase Recovery is a new development of the aviaries at the Victoria Esplanade which are a feature of the reserve. The Biodiversity Strategy 2013 includes the action “Develop the Aviary in the Victoria Esplanade for injured birds and reptiles”.

Rationale for the recommendations

1. Overview of the problem or opportunity

1.1 This report covers both consideration of a memorandum of understanding with Central Energy Trust (CET) and their naming rights for Wildbase Recovery and provides an update on progress on construction.

Central Energy Trust Memorandum of Understanding

1.2 In April 2016 the Central Energy Trust increased their contribution to the Wildbase Recovery project from $480,000 to $2 million conditional on;

a. securing naming rights for the facility,

b. confirmation of fundraising being completed,

c. confirmation the Palmerston North City Council and Massey University had reached agreement on the operational costs, and

d. development of a Memorandum of Understanding (MoU) between CET and all the parties that are signatories to the 2014 project MoU, being the Department of Conservation (DOC), Palmerston North City Council, Massey University and the three Rangitāne o Manawatū groups – Ngāti Hineaute Hapu, Tanenuiarangi Manawatū Inc and Te Rangimarie.

1.3 Items a, b and c have been completed. A draft MoU to complete Item d. has been the subject of some rounds of discussion and is now in a final draft form ready for Council’s approval to sign.

Central Energy Trust Wildbase Recovery Construction update

1.4 The Central Energy Trust Wildbase Recovery project is a major capital project in the 2017/18 year. It is also a significant development in the Victoria Esplanade. In their October 2017 meeting the Steering Group recommended an update on the project be made to Council prior to the end of the calendar year. This report includes an update on the construction.

2. Background and previous council decisions

Memorandum of Understanding (MoU):

2.1 The Central Energy Trust (CET) has been working with Council officers on the draft MoU attached in Appendix One. The key points:

2.1.1 While an MoU is not legally binding there is a significant sum of funding involved at $2 million. CET are comfortable that the nature of the agreement is sufficient and it has been reviewed by the legal advisors.

2.1.2 One of the major concerns of CET is the facility closing down within what they would consider a reasonable time given the size of their support. They have addressed this by requiring that in the event of any closure Council and CET will negotiate alternative naming rights over whatever facility may replace CET Wildbase Recovery (MoU Clause 2(c).).

2.1.3 CET are providing on-going funding via a $25,000 a year operational sponsorship for 10 years (MoU Clause 3). In recognition of this on-going support CET would like a position on the Aviary Advisory Committee detailed in Schedule A of the 2014 Collaboration Agreement between Massey University and Palmerston North City Council.

2.1.4 The other stakeholders covered in the 2014 MoU that are included in the Aviary Advisory Committee – Massey University, Department of Conservation, and Rangitāne o Manawatu have all noted they are comfortable with CET representative being added to the Aviary Advisory Committee.

Construction update:

2.2 As at the end of November 2017 the build is approximately 45% complete. The following table summarises the high level work areas, progress and any key issues encountered.

2.3 The 27 November 2017 Project Managers Report is attached in Appendix Two. Officer commentary in addition to Project managers report:

WORK COMPONENT	PROGRESS DISCUSSION	RISKS/CONCERNS
Exterior Wall - predator proof, acoustic, security	· The pattern, designed by artist James Molnar whose heritage includes Rangitāne o Manawatu, has been particularly pleasing. · James’s design work has been extended to the entrance gates because it has been so well received.	· There has been some discoloration on the top of each panel where the coloured concrete has dried at different rates while resting on pads. Options for resolution of this issue are under discussion and investigation. · The set out of the walls was in the wrong location meaning 2 – 3 car parks will need to be removed and kerb extensions completed to accommodate walking access round the front of the facility.
Fitout and interpretation	· Good progress has been made on the detailed design and content development of the interpretive features and spaces. · Rangitāne artists are progressing the carving of a series of atua that will feature in the facility. · Openlab (division of Massey University’s Wellington based design school) are nearing completion of detailed design and some fabrication has been started. · Nina Mercer, former Department of Conservation educator and School teacher, is working with Manu Kawana of Rangitāne on the content including bi-lingual signage and Rangitāne content as well as web-site content.	· There were some cost overruns as detailed work was completed and fabrication quotes were sought. · The Steering Group authorised progressing the kiwi burrow $15,000, cubby hole fillers $5,000, outdoor TV monitor casings $15,000 and donation box $2,500 that were missed in design coordination and cost overruns totalling $37,500 affect the balance contingencies and risk of cost overrun.
Solar Panels	· An independent specialist engaged to prepare a business case visited the site on 5 December 2017. Preparation of a report is underway. · The switch board has allowed for solar connections – costing $4,000
DOC permit	· DOC permit information for the tuatara and permanently housed birds in the walkthrough aviary has been prepared and submitted.	· The application requires amendment and engagement with Ngaati Koata from the rohe where the tuatara originate from. Nina Mercer has been engaged to help facilitate progress on the engagement and permit.

Financial progress:

2.4 The November 2017 project Financial Statement from the Quantity Surveyor cost monitoring consultants shows $11,000 of the original contingency allowance of $330,000 remaining. The significant variations have been:

· Unexpected work due to soft ground total $166,845.77 - made up of $97,622.76 for ground improvement under walls, under crane stand $8784.48, additional base course under aviaries costing $38,622.40, dig barrier soft spots $7,000, temporary electrical cable (required because of additional depth of foundations affecting existing cable ) costing $10,327.31 and $4,488.82 to fill a void under the walk through aviary footing.

· Plant sheds (for water reticulation pumps and filters) – revised design from sunken below ground level pits following detailed design coordination and review - $24,661.64

· Additional services design work $15,283.80 and drainage $10,000 and sewer pump requirements $10,000

2.5 This is a very lean allowance at this stage of the project. While most of the major variations are expected to have been completed as the ground works, walls and education centre work is largely complete there remains some risk of some overspend if further variations are required.

Funding update:

2.6 In March 2017 when Council approved the award of tender the fundraising total was still $467,792 short of the total project budget.

2.7 Council approved an underwrite of $440,000 (Resolution 40-17) so the construction could proceed on the basis this shortfall would be addressed as far as possible. Officers signalling they believed the majority could be covered through mesh specification changes and additional fundraising. That funding gap was successfully filled between specification changes to aviary mesh and education centre flooring as well as further fundraising.

2.8 At the time of tender reporting a risk was highlighted with the Pub Charity funding for the raptor aviaries creating a timing challenge. The Project Managers and Contactors have successfully eliminated that issue and the full grant amount of $120,000 has been used.

2.9 Funding support work has continued, much of it driven by the Mr Scott Bruce, helping to off-set some of the variations that have arisen during construction and providing higher quality outcomes at no cost change.

2.10 In-kind support generated since tender:

· Peterfell and LANXESS donated the colour for the exterior concrete walls for a higher quality finish not affecting budget

· Powerco donating additional power cable work required due to additional depth required for foundations reduced variations amount

· Humes pipelines donating materials

· EMF switchboards have undertaken to donate the equivalent value of the switchboard installed to the Wildbase Recovery Community Trust

· IPlex Pipelines donated additional product, over and above their previous earlier general services pipe product) for aviary ponds and pool reticulation and audio-visual cabling conduit.

· Hand dryers were donated by SPL Limited thanks to Chapple Architects approach

· Silvester Clark consulting engineers continue to work for free on project design and construction monitoring.

· Programmed Property Services – supply and labour for graffiti coating exterior pre-cast wall. This was not covered in the original specifications but can now be added at no extra cost to the project.

· RLB Quantity Surveyors – Mr Wayne Kitching has been doing some of the cost control and monitoring work on his own time.

· A number of small community donations to the Wildbase Recovery Community Trust such as those covered in media articles.

Possible further savings or support:

1. Winstone Wallboards recently toured the facility and verbally agreed to at least a discount but possibly some product donation. This support is thanks to a Chapple Architects approach.

2. McIntosh Cranes, and Hoults Contractors donating logs and their transport for aviary fitout may reduce the end bill covered in a provisional sum depending on other costs.

2.11 It needs to be noted that the Quantity Surveyors report referred to under Clause 2.4 of this report, values all components of the project, including in-kind work and material supplies. Accordingly the cash funding required by Council following payments from other funding partners needs to also make adjustments for the value of the in-kind contributions.

2.12 This cash position is currently being prepared at the time of writing this report and will be available for presentation at the Committee meeting.

Timeframes

2.13 Some delays in the first 6 months of construction were incurred due to the poor weather over that period and the additional work required due to soft ground. Furthermore an issue has arisen with the pole support structure for the alternative aviary mesh. This is currently being assessed by the design team in conjunction with the main contractor and his mesh supply subcontractor. That assessment will address areas of responsibility and cost implications. It may also lead to a time extension.

2.14 However at this stage is now expected to be complete in early June 2018.

2.15 Massey Vets note the need for a one month quarantine period where pest exclusion and elimination is undertaken along with any commissioning issues that need to be dealt with.

2.16 Opening Central Energy Trust Wildbase Recovery to the public is therefore likely to be in August 2018.

3. Description of options

Central Energy Trust naming rights Memorandum of Understanding

3.1 Option One: Approve signing the draft Memorandum of Understanding with Central Energy Trust for Wildbase Recovery Naming Rights

3.2 Option Two: Revise the Memorandum of Understanding to address any specific concerns Councillors may have.

Construction update:

3.3 No options are presented as part of the general project update.

4. Analysis of options

Central Energy Trust naming rights Memorandum of Understanding

4.1 Central Energy Trust are the largest financial contributor to the Wildbase Recovery contributing more than the Pamerston North City Council capital contribution of $1.37 million or Lotteries $950,000.

4.2 Central Energy Trust have paid $900,000 over to Council in March 2017. They are due to make their final $1.1 million contribution, when 85% of the construction is completed, expected to be end of March 2018.

4.3 The MoU has been prepared over the last 6 months and CET are happy with it in its current form.

5. Conclusion

5.1 The CET naming rights sponsorship was the turning point in the fundraising timeline for Wildbase Recovery. Signing of the MoU formalises the undertakings made in accepting that funding.

5.2 Progress on the construction of Central Energy Trust Wildbase Recovery has experienced some delays but construction is still expected to be completed within the financial year.

5.3 Forecasting expenditure against budget is tight, particularly due to discovery of soft ground in the early construction phases. There is some risk of overruns. Fundraising and in-kind contributions continue and have achieved the original targets as well as off-set some potential variations.

6. Next actions

6.1 Sign the MoU and circulate it to the other parties for signing.

7. Outline of community engagement process

7.1 Not applicable for the MoU or construction update.

Compliance and administration

Does the Committee have delegated authority to decide? If Yes quote relevant clause(s) from Delegations Manual	No
Are the decisions significant?	No
If they are significant do they affect land or a body of water?	No
Can this decision only be made through a 10 Year Plan?	No
Does this decision require consultation through the Special Consultative procedure?	No
Is there funding in the current Annual Plan for these actions?	Yes
Are the recommendations inconsistent with any of Council’s policies or plans?	No

Attachments

1.	draft CET Naming Right MOU ⇩
2.	CET Wildbase Recovery Construction Project Report November 2017 ⇩

Aaron Phillips

Senior Property & Parks Planner

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Finance and Performance Committee

MEETING DATE: 18 December 2017

TITLE: Conference Opportunity - Digital Nations 2030

DATE: 4 December 2017

AUTHOR/S: Kyle Whitfield, Governance & Support Team Leader, City Corporate

RECOMMENDATION(S) TO Finance and Performance Committee

1. That the Committee approve the attendance of up to XX elected member(s) to attend, with expenses paid, the Digital Nations 2030 conference being held in Auckland on 19-20 February 2018.

2. That, in the event that the Committee approves the attendance of elected member(s) at the above training, then registrations of interest be invited from elected members wishing to attend, with expenses paid, and advise the Governance and Support Team Leader, Kyle Whitfield, by 12 noon Friday 22 December 2017.

1. ISSUE

The elected members’ budget for conference attendance and training opportunities is $72,336. As at 4 December 2017 there remains $54,070 available for the balance of the financial year ending 30 June 2018. This does not include outstanding invoices that have been previously approved, but have yet to be presented for payment.

Anticipated expenses for attending this conference are:

Conference $1,399.00 plus GST (Full summit pass)

$1,099.00 plus GST (Day 2 Pass)

Travel $350.00

Accommodation $120.00

No financial provision is to be made for any spouse or partner of an elected member attending any conference or training opportunity, other than for the Mayor’s spouse or partner attending a conference in association with the Mayor.

2. BACKGROUND

Digital Nations 2030 is an international summit located in Auckland. The event coincides with the visiting Ministerial and business delegations from the world’s leading Digital Nations and the D5 meeting.

International thought leaders will be joined by digital leaders from throughout New Zealand to engage in stimulating dialogue and aspirational discussions on actions needed to create a truly digital nation by 2030.

Day 2 presents a unique opportunity for participants across all sectors to co-design the digital future of sectors and society.

The Agenda is attached.

3. NEXT STEPS

The Committee may choose whether any elected members should attend the conference, and if so, how many, in which case the Committee could invite registrations of interest from elected members wishing to attend.

If the Committee decides to approve the attendance of one or more elected members, registrations of interest will be sought from elected members. At the closing date of registrations (12 noon on Friday 22 December 2017), the Governance and Support Team Leader will advise the Chairperson and Deputy Chairperson of the interest received, for them to make a decision on the successful registrant(s).

Once the Chairperson and Deputy Chairperson have advised the Governance and Support Team Leader of the successful registrant(s), all further information regarding the conference will then be forwarded to that person or those persons direct.

Attachments

Conference Agenda ⇩

Kyle Whitfield

Governance & Support Team Leader

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