Agenda of Manawatu District/Palmerston North City Joint Strategic Planning Committee

PALMERSTON NORTH CITY COUNCIL

Extraordinary Manawatu District/Palmerston North City Joint Strategic Planning Committee MEETING

21 March 2018

MEETING NOTICE

Pursuant to Clause 21 of Schedule 7 of the Local Government Act 2002, I hereby requisition an extraordinary meeting of the Council to be held at 9.00am on Wednesday, 21 March 2018 in the Council Chamber, first floor, Civic Administration Building, 32 The Square, Palmerston North, to consider the business stated below.

MAYOR

Order of Business

1. Apologies

2. Notification of Additional Items

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. Deputation - Graeme Everton Page 7

Deputation, dated 28 February 2018, by Kyle Whitfield.

5. Deputation - Dennis Emery Page 9

Deputation, dated 6 March 2018, by Kyle Whitfield.

6. Presentation - Stephen Stannard Page 11

Presentation, dated 12 March 2018, by Kyle Whitfield.

7. Confirmation of Minutes Page 13

“That the minutes of the Manawatu District/Palmerston North City Joint Strategic Planning Committing meeting of 21 November 2017 Part I Public be confirmed as a true and correct record”.

8. Central Economic Development Agency - Interim Report for 6 months to 30 December 2017 Page 19

Memorandum, dated 5 March 2018 from the General Manager, City Future, Palmerston North City Council, Sheryl Bryant and the General Manager, Community and Strategy, Manawatu District Council, Brent Limmer.

9. Central Economic Development Agency - Draft Statement of Intent for 2018/19 Page 73

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.	Confirmation of Minutes	Privacy	s7(2)(a)

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.

[Add Council Officers], 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.

[Add Third Parties], 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

Memorandum

TO: Manawatu District/Palmerston North City Joint Strategic Planning Committee

MEETING DATE: 21 March 2018

TITLE: Central Economic Development Agency - Interim Report for 6 months to 30 December 2017

DATE: 5 March 2018

AUTHOR/S: Sheryl Bryant, General Manager City Future, Palmerston North City Council

Brent Limmer, General Manager Community and Strategy, Manawatu District Council

RECOMMENDATION(S) TO Manawatu District/Palmerston North City Joint Strategic Planning Committee

1. That the Interim Report and Financial Statements of the Central Economic Development Agency for the period ending 31 December 2017 be received.

1. ISSUE

The Central Economic Development Agency (CEDA), as a Council Controlled Organisation is required to provide a 6-monthly report to the Councils. The report for the period ending 31 December 2017 is attached.

2. BACKGROUND

CEDA’s draft Statement of Intent (SOI) for 2017/18 was considered by the Joint Strategic Planning Committee in March 2017 with the final SOI considered and formally received by the Committee in June 2017.

The six-month report provides an interim update on the performance of CEDA against objectives, measures and targets included within the 2017/18 SOI. The interim report also includes an assessment of financial performance.

The report outlines significant progress made to the year ended December 31, with a number of programmes up and running for the benefit of the Manawatū Region. Specifically progress includes the design, development and administration of the first major event fund for the Region, alongside support for over 200 businesses, investment of over $500,000 in capability development and in research and development grants, in addition to an increase in collaboration across international education institutions.

The Statement of Service Performance section (pages 24-28) within the Report specifically outlines progress toward achieving service levels as set out within the performance measures and outcomes to 31 December 2017/18, under the objectives of:

1. Supporting the growth of business in the region;

2. Growing and retaining education and talent; and

3. Enhance the brand and experience of the region.

While progress toward objectives has been steady, CEDA also reports significant issues over the period in securing talent and capability to implement key growth projects, resulting in a material underspend for the year to date. CEDA anticipates the second half of the financial year to be busy as they advance the design phase of major growth projects such as the Ag Cluster, Capturing a day in a tourist journey, Manawatu Alumni, the identity of our region, and the inward investment strategy alongside New Zealand AgriFood Week and the Sort it Careers Expo.

CEDA’s current financial position is sound. To the six-months ended 31 December CEDA had received Council funding for various projects of $1,295,901 alongside other revenue of $594,460. Cost of sales and total expenses accrued to $1,692,728 leaving an operating surplus of $197,534 (before adjustments and tax).

CEDA has prepared a draft SOI for 2018/19 also considered within this March Joint Strategic Planning Committee Meeting. CEDA will prepare and provide an annual report for the 2017/18 financial year after 30 June 2018.

3. Compliance and administration

Does the Committee have delegated authority to decide?	Yes
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

Half Yearly Report ⇩

Sheryl Bryant

General Manager - City Future

Brent Limmer

General Manager, Community and Strategy, Manawatu District Council

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Manawatu District/Palmerston North City Joint Strategic Planning Committee

MEETING DATE: 21 March 2018

TITLE: Central Economic Development Agency - Draft Statement of Intent for 2018/19

DATE: 5 March 2018

AUTHOR/S: Sheryl Bryant, General Manager City Future, Palmerston North City Council

Brent Limmer, General Manager Community and Strategy, Manawatu District Council

RECOMMENDATION(S) TO Manawatu District/Palmerston North City Joint Strategic Planning Committee

1. That the Central Economic Development Agency’s draft Statement of Intent for 2018/19 be received.

2. That the comments on the draft Statement of Intent from discussion within Joint Strategic Planning Committee on 21 March be conveyed to CEDA for its consideration in finalising the Statement of Intent for 2018/19.

1. ISSUE

The purpose of this report is to present the draft Statement of Intent (SOI) for the Central Economic Development Agency (CEDA) for 2018/19.

2. BACKGROUND

CEDA is a Council Controlled Organisation (CCO) under the Local Government Act 2002 and is jointly owned by the Palmerston North City Council and Manawatu District Council. A CCO must deliver a draft SOI to shareholders by 1 March each year and a final SOI by 30 June.

The Board has 2 months from 1 March to consider any comments of the Shareholders before delivering its final SOI in June. At that stage, the Councils agree to the SOI, or if they do not agree, take all practicable steps to require the SOI to be modified.

The Councils delivered their Letter of Expectations to CEDA 1 December 2017. CEDA has considered the contents of the Shareholders Letter of Expectations within their draft SOI identifying the following three strategic objectives and associated activities:

1. People - Grow and retain education and talent in the region so our businesses have the skills to grow;

2. Business – Support the growth of business in the region to grow bigger and better;

3. Place – Enhance the brand and experience of the region so people and businesses want to be based here.

The following table outlines the responsibilities of CEDA as prescribed within the Service Contract and prioritised within the Letter of Expectations, against the CEDA draft Statement of Intent.

Contract - Service Outcomes & ED services

Letter of Expectations - Key Strategic priorities/issues of importance

Draft SOI Reference

Strategy Implementation Deliver information, advice, programmes and initiatives to drive and facilitate economic growth.

Give effect to shareholder direction.

Fulfil the service contract.

Align strategy, business plan and activities to reflect strategic objectives of the Shareholders.

Develop a business plan for 2018/19 demonstrating strong links to both Councils ED Strategies and that this is provided to the funders.

P7. ‘… principal objectives of the company are to achieve the objectives of the Shareholders… as specified… in the Statement of Intent and, in particular, to drive and facilitate the creation of economic wealth for Manawatu and beyond.

No reference to the development of a business plan for 2018/19.

Leadership Establish as the lead agency for ED in the Manawatu.

Galvanise local businesses and organisations to fully utilise the resources of the region.

Be a proactive leader demonstrating a culture of being open for business and coordinating action in attracting investment into the Region.

Lead, facilitate and champion regional economic development initiatives.

Providing leadership, expertise, collateral to support productive engagement of Regional Stakeholders in economic development.

References to the leadership role of CEDA – Alumni programme p.13, Destination development, p.14, Regional events, p.15, Sector development, p.17.

Innovation and Entrepreneurship Facilitate collaboration, innovation and entrepreneurship in key sectors.

Assist BCC to scale up the commercialisation of innovative start-ups.

Establishing Manawatu as a World Leading Agri-Food/Agri-tech cluster.

Maintaining effective relationships with BCC and FoodHQ to support and capitalise on innovation opportunities.

Sector Development, p.17. we will deliver an Ag Cluster strategy for the Manawatu..’

Advancing innovation p. 17. ‘…Collaborative partnership with Callaghan Innovation, FoodHQ and BCC, providing access to global expertise …’

Education and Talent Attraction and retention of talent.

Increasing talent capability.

Supporting the attraction of world-class professional, business and scientific expertise to grow our science, agribusiness and innovation sectors.

Implementation of the Labour Market Strategy to address identified barriers to workplace participation.

‘Grow and Retain Education and Talent’, p. 13. ‘Building on our regional talent and skills action plan, we will partner with priority sectors, Talent Central and central government to deliver specific programmes to address region skills shortages… We will deliver campaigns in key domestic and international markets to attract sector specific talent and skills [including priority sectors].

Student employability and pathways to employment p.13. ‘We will identify skills gaps, help international tertiary students become more employable and identify opportunities for increased pathways into local employment.

No direct reference to the Labour Market Strategy.

Business development and support Interventions that unlock business potential.

Build business capability (in particular digital capability)

Building skills and capabilities of Regional businesses to engage in the global digital business environment.

National business partner programme, p. 16.

Business Growth and Development, p.16

Advancing innovation, p.17 – ‘focus is on building the skills and capabilities of regional businesses to engage and grow in the global digital environment.’

Attract and retain business and investment Identify and chase business opportunities in priority sectors to relocate to/set-up in the Manawatu.

Deliver support to relocated businesses.

Seek investment to scale existing businesses, or to retain businesses.

Inward investment -Delivery of an Inward investment strategy for the Region including increasing access to global value chains and emerging export markets.

Ensuring the inward investment programme is delivered successfully against the strategy.

Business Attraction and

Retention p.17

A strategic approach to business attraction

and inward investment, aligned to our priority

growth sectors - distribution and logistics, agrifood and agritech, education, defence

and health - is central to achieving the region’s

growth aspirations.

No reference to the development or implementation of an inward investment strategy.

Develop and lead the growth of priority sectors – retail, logistics, defence, education, Food (agri-tech), Agribusiness, Health, Visitors.

Sector Development, p. 17. CEDA will lead the development and growth of priority sectors.

Through development of Ag Cluster Strategy; Distribution and Logistics business attraction plan developed and initiated; Partnership agreements and workplans in place with tertiary sector, and defence committee, p. 23.

Health excluded from priority sectors in Service level statement (included in other sections where relevant).

Growing the priority sector – visitors supported by regional events Promotion and information services that increase the number of visitors and guest nights.

Major events that support priority sectors and economic growth and/or enhance the reputation of the Manawatu.

Coordinating the promotion of key events and adding value to the visitor experience.

Growing visitor markets and events in accordance with the agreed Events Framework including emerging opportunities.

Facilitating major events to the region and utilising the Mayors for bids where appropriate.

Adding value to our tourism industry by connecting with tourist routes to add an extra day of the average tourist stay in NZ.

Work collaboratively with Councils on:

Building the domestic and international reputation of the Manawatu Region.

Effectively marketing the social capital and lifestyle advantages of the region to attract new residents and businesses.

Management of media profile.

Developing an alumni of influential global leaders

Enhance the brand and experience, p.14.

Major Events Fund, p.15.

Major Events Fund, p.15, Regional Events, p. 15 and Destination Development, p. 14.

Major events and conference/business events, p. 22.

No service level statement or performance measure for assessing the addition of an extra day.

Regional Identity Strategy, Destination Marketing and Destination Development, p.14.

Enhance and grow awareness of the region to inspire visitors to travel here, new residents to live here, businesses to choose here and students to learn. P. 22.

‘Alumni Programme’ p.13.

Amended from Build Reputation to Enhance the Brand and Experience.

Build Reputation Marketing priority sectors for investment

Promotion of the region as a place to live, work, study, visit and do business.

Maori business and employment Work with local iwi to identify opportunities to unlock potential of local iwi business and investment.

Support Maori business and the Maori business sector/connection to Iwi [through the] Regional Business Partner Programme. p. 23.

Outcome has been softened to ‘support Maori business and the Maori business sector..’ as opposed to ‘work with local Iwi to identify opportunities to unlock potential of local iwi business and investment.’

The above assessment of the Service Contract responsibilities and the Letter of Expectations against the CEDA draft SOI has identified the following points for consideration by Committee:

1. Whether the following items should be referenced in the SOI:

· development of a business plan for 2018/19;

· implementation of the Labour Market Strategy (assuming the development of the strategy was completed in 2017/18);

· development or implementation of an inward investment strategy;

· listing Health as a priority sector within the service Level Statement, p. 23;

2. There is no inclusion of a service level statement or performance measure for assessing the addition of an extra day to visitor stays. ‘Destination Development – p.14 states the extra day as a long term project. Can we expect to see the inclusion of the performance measure in future iterations of the CEDA SOI?.

3. Whether amended outcome ‘Enhance the Brand and Experience’ is more of an action under the contract outcome of “Building Reputation”.

4. For Maori business and employment, the outcome has been softened to ‘support Maori business and the Maori business sector…’ as opposed to the contract outcome ‘work with local Iwi to identify opportunities to unlock potential of local iwi business and investment.’ Is this acceptable to the Committee?

CEDA’s financial statements have been prepared in accordance with the requirements of the Local Government Act 2002, the Companies Act 1993, and the Financial Reporting Act 2013. This includes the requirement to comply with generally accepted accounting practice in New Zealand (NZ GAAP).

These financial statements comply with Public Benefit Entity International Public Sector Accounting Standards (PBE IPSAS) Reduced Disclosure Regime (RDR). CEDA is eligible and has elected to report in accordance with Tier 2 PBE standards RDR on the basis the entity has no public accountability and has expenses > $2m and < $30m.

Based on the current budget and forecasts CEDA will have adequate working capital for its requirements.

CEDA’s draft SOI is attached to guide any further comment the Committee may want to provide for the Board’s consideration in finalising the SOI for the 2018/19 financial year. The Letter of Expectations received from Councils is also included within the appendices of the CEDA draft SOI.

3. NEXT STEPS

The Committee can either endorse the SOI as presented or make suggestions for change to a greater or lesser extent.

CEDA is obliged to consider shareholders comments then decide whether or not to make any changes to the draft when finalising the SOI prior to 30 June 2018. The final SOI will need to be delivered to the Councils by 5 June 2018, for consideration by the Joint Strategic Planning Committee on 20 June 2018.

4. Compliance and administration

Does the Committee have delegated authority to decide?	Yes
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

CEDA Draft Statement of Intent 2018/19 ⇩

Sheryl Bryant

General Manager - City Future

Brent Limmer

General Manager, Community and Strategy, Manawatu District Council

Grant Smith (Chairperson)
Helen Worboys (Deputy Chairperson)
PNCC	MDC
Susan Baty	Barbara Cameron
Leonie Hapeta	Shane Casey
Jim Jefferies	Michael Ford
Tangi Utikere	Phil Marsh