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 19 March 2018, commencing at 9.00am

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

Councillor Rachel Bowen left the meeting at 9.55am at the conclusion of clause 12.  She entered the meeting again at 10.29am during consideration of clause 14.  She was not present for clause 13.

The Mayor (Grant Smith) left the meeting at 10.20am during consideration of clause 14. He entered the meeting again at 10.54am during consideration of clause 15.  He was not present for clause 14.

Councillor Duncan McCann left the meeting at 11.41am during the consideration of clause 15.2. He entered the meeting again at 11.43am during consideration of clause 15.3. He was not present for clause 15.2.

8-18	Late Item - Fees and Charges Review
	Moved Susan Baty, seconded Grant Smith. The COMMITTEE RESOLVED 1.                     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)        Report, dated 15 March 2018 and entitled “Fees and Charges             Review” from the Strategy Manger Finance, Steve Paterson. As the item was not available at the time of 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 8-18 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.

9-18	Confirmation of Minutes
	Moved Lorna Johnson, seconded Gabrielle Bundy-Cooke. The COMMITTEE RESOLVED 1.         That the minutes of the Finance and Performance Committee meeting       of 19 February 2018 Part I Public be confirmed as a true and correct       record.
	Clause 9-18 above was carried 15 votes to 0, with 1 abstention, 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, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Abstained: Councillor Duncan McCann.

10-18	Palmerston North Airport Ltd - Interim Report for 6 months to 31 December 2017 Memorandum, dated 9 March 2018 from the Strategy Manager Finance, Steve Paterson.
	Moved Lorna Johnson, seconded Aleisha Rutherford. The COMMITTEE RECOMMENDS 1.         That the Interim Report and Financial Statements of Palmerston North       Airport Ltd for the period ended 31 December 2017 be received.
	Clause 10-18 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.

11-18	Palmerston North Airport Ltd - Draft Statement of Intent for 2018/19 Memorandum, dated 2 March 2018 from the Strategy Manager Finance, Steve Paterson.
	Moved Leonie Hapeta, seconded Tangi Utikere. The COMMITTEE RECOMMENDS 1.         That the Palmerston North Airport Ltd draft Statement of Intent for       2018/19 be received and its assumptions endorsed apart from the       performance measure for targeted net worth which it be       recommended to the Company be increased to $50 million.
	Clause 11-18 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.

12-18	Central Energy Trust Wildbase Recovery Update and Cost to Complete Report, dated 22 February 2018 from the Senior Property & Parks Planner, Aaron Phillips. During discussion Elected Members noted that the required funds had reduced due to additional funding being received after the presentation of the report.
	Moved Leonie Hapeta, seconded Lorna Johnson. The COMMITTEE RECOMMENDS 1.         That Council note progress on the construction of Central Energy Trust       Wildbase Recovery facility in the Victoria Esplanade. 2.         That Council approve additional borrowing to fund up to $525,000 to       complete construction to tendered specification for Central Energy       Trust Wildbase Recovery.
	Clause 12-18 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.

Councillor Rachel Bowen left the meeting at 9.55am

13-18	Water and Waste Capital New and Renewal 2017-18 Programme Adjustments Memorandum, dated 9 March 2018 from the Water & Waste Services Manager, Robert van Bentum.
	Moved Susan Baty, seconded Karen Naylor. The COMMITTEE RECOMMENDS 1.         That the budget for the 2017/18 Water Capital New “Programme 593 –     Water Safety and Security Mitigation” be revised from $170,000 to        $407,000 by approval of additional unbudgeted funding of $237,000. 2.         That the budget for the 2017/18 Wastewater Capital New “Programme        630 – City Wide - Seismic Strengthening to Wastewater Structures” be        revised from $100,000 to $200,000 by approval of additional        unbudgeted funding of $100,000. 3.         That a new 2017/18 Rubbish and Recycling Capital New Programme        called “Materials Recovery Facility – Air Quality Improvements” with a        budget of $50,000 be created by approval of unbudgeted funding of        $50,000. 4.         That the budget for the 2017/18 Wastewater Capital Renewal        “Programme 621 - Digester Lid Refurbishment” be revised from        $500,000 to $555,000 by approval of additional unbudgeted funding of        $55,000. 5.         That the budget for the 2017/18 Wastewater Capital Renewal        Programme “1056 – Totara Rd Replacement of Inlet Screens be revised       from $1,300,000 to $1,400,000 by approval of additional unbudgeted            funding of $100,000.
	Clause 13-18 above was carried 14 votes to 0, with 1 abstention, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Jim Jefferies, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Abstained: Councillor Leonie Hapeta.

14-18	Process for Reallocating and Prioritisation of Underspending on Programmes Memorandum, dated 5 March 2018 from the Chief Financial Officer, Grant Elliott. The Mayor (Grant Smith) left the meeting at 10.20am Councillor Rachel Bowen entered the meeting again at 10.29am
	Moved Susan Baty, seconded Vaughan Dennison. The COMMITTEE RESOLVED 1.         That the Committee receive the report entitled “Process for        Reallocating and Prioritisation of Underspending on Programmes”.
	Clause 14-18 above was carried 14 votes to 1, 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, Aleisha Rutherford and Tangi Utikere. Against: Councillor Rachel Bowen.

15-18	Fees and Charges Review Report, dated 15 March 2018 from the Strategy Manager Finance, Steve Paterson. The Mayor (Grant Smith) entered the meeting again at 10.54am Meeting adjourned at 11.09am Meeting resumed at 11.25am During discussion the Committee talked about the fees and charges relating to e-waste. They requested that a financial report be brought back to the committee.
	Moved Brent Barrett, seconded Aleisha Rutherford. The COMMITTEE RECOMMENDS 1. That fees for household e-waste in categories of 'TV and Electronics', 'Consumer Electronics', and 'Other' excluding photocopiers, be set to $0 on a trial basis, for a 6 month period in FY19. Subject to a financial analysis report being brought back to Finance and Performance April 2018.
	Clause 15.1 above was carried 13 votes to 3, the voting being as follows: For: The Mayor (Grant Smith) and Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Lew Findlay QSM, Leonie Hapeta, Jim Jefferies, Duncan McCann, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Against: Councillors Vaughan Dennison, Lorna Johnson and Karen Naylor.
	Moved Tangi Utikere, seconded Lorna Johnson. Burial & Cremation 2.                     That the fees and charges for Burial and Cremation, be increased by                3%, be             adopted and following public notification take effect from 1 July                        2018. Councillor Duncan McCann left the meeting at 11.41am.
	Clause 15.2 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, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere.
	Moved Tangi Utikere, seconded Lorna Johnson. Councillor Duncan McCann entered the meeting again at 11.43am. Burial & Cremation 3.         That the application of “Out of District surcharge” Chapel and             Cremation services be reviewed and reported back to the April             Finance and Performance Committee meeting.
	Clause 15.3 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.
	Moved Vaughan Dennison, seconded Lorna Johnson Event Recycling Fees 4.         That the fees and charges for event recycling as proposed in Appendix             8 be adopted and take effect immediately.
	Clause 15.4 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, Jim Jefferies, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Tangi Utikere. Note: Councillor McCann declared a conflict of interest and withdrew from discussion and voting on clause 15.4.
	Moved Vaughan Dennison, seconded Lorna Johnson 5.         That the report be received and the current status of fees and charges             be noted. Planning & Miscellaneous 6.         That the Statement of Proposal (and the associated summary) to adopt       updated fees and charges for Planning Services and Miscellaneous       Services effective from 1 July 2018 as attached in Appendix 2, be       approved for public consultation and the Chief Executive be authorised       to undertake the necessary consultative process under sections 83 and       150 of the Local Government Act 2002. Building 7.         That the fees and charges for Building Services, as proposed in       Appendix 3 be adopted and following public notification take effect       from 9 April 2018. Environmental Health 8.         That the fees and charges for Environmental Health Services (in terms       of regulation 7 of the Health (Registration of Premises) Regulations       1966 and regulation 83 of the Food Hygiene Regulations 1974) as       proposed in Appendix 4, be adopted and following public notification,       take effect from 1 July 2018. Animal Control 9.         That the fees and charges for the Impounding of Animals (in terms of       section 14 of the Impounding Act 1955) and for Dog Registration and       Dog Impounding (in terms of section 37 of the Dog Control Act 1996) as       proposed in Appendix 5 be adopted, and once following public       notification, take effect from 1 July 2018. Service Connections 10.       That the fees and charges for Service Connections, as proposed in       Appendix 7 be adopted and take effect from 1 July 2018. E-Waste Charges 11.       That the fees and charges for e-waste disposal as proposed in Appendix       8 be adopted and take effect from 1 July 2018.
	Clauses 15.5 to 15.11 inclusive 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.

16-18	Committee Work Schedule - March 2018
	Moved Susan Baty, seconded Leonie Hapeta. The COMMITTEE RESOLVED 1.   That the Finance and Performance Committee receive its Work Schedule dated March 2018.
	Clause 16-18 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

17-18

Recommendation to Exclude Public

Moved Susan Baty, seconded Duncan McCann.

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
12.	Purchase of Land to Extend Walkways Network	Third Party Commercial and Commercial Activities	s7(2)(b)(ii) and s7(2)(h)
13.	Purchasing Property to Partner with a Housing Provider	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) 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.

Property Officer (Bryce Hosking), Parks and Property General Manger (John Brenkley and Senior Communications Advisor (Sandra Crosbie) 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 17-18 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.

The public part of the meeting finished at 11.52am

Confirmed 23 April 2018

Chairperson