AGENDA

Finance and Performance Committee

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Susan Baty (Chairperson)

Jim Jefferies (Deputy Chairperson)

Grant Smith (The Mayor)

Adrian Broad

Leonie Hapeta

Gabrielle Bundy-Cooke

Lorna Johnson

Vaughan Dennison

Karen Naylor

Lew Findlay QSM

Bruno Petrenas

 

 

 

 

 

 

 


 

 

 


PALMERSTON NORTH CITY COUNCIL

 

 

 

 

Finance and Performance Committee MEETING

 

18 June 2018

 

 

 

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.         Declarations of Interest (if any)

            Members are reminded of their duty to give a general notice of any interest of items to be considered on this agenda and the need to declare these interests.

 

4.         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.)

5.         Confirmation of Minutes                                                                                    Page 7

“That the minutes of the Finance and Performance Committee meeting of 21 May 2018 Part I Public be confirmed as a true and correct record.”  

6.         Palmerston North Airport Ltd - Final Statement of Intent for 2018/19      Page 13

Memorandum, dated 5 June 2018 from the Strategy Manager Finance, Steve Paterson.

7.         Approval to Write Off Uncollectible Balances                                               Page 41

Memorandum, dated 15 May 2018 from the Financial Accountant, Keith Allan.

8.         Fees & Charges - Confirmation Following Public Consultation                    Page 45

Memorandum, dated 8 June 2018 from the Strategy Manager Finance, Steve Paterson.

9.         Committee Work Schedule                                                                              Page 61

    

 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 - 21 May 2018

For the reasons setout in the Finance and Performance Committee minutes of 21 May 2018, held in public present.

12.

Award of Contract 3532 Installation of "V" Category LED Street Lighting Luminaires Stage 2

Third Party Commercial

s7(2)(b)(ii)

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), General Manager, Marketing and Communications (Sacha Haskell), and Communications Advisor (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.

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

Project Engineer (Rob Cuff), because of his knowledge and ability to assist the meeting in speaking to his report and answering questions, noting that such officer will be present at the meeting only for the item that relates to his 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

 

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 21 May 2018, commencing at 9.02am

Members

Present:

Councillors Susan Baty (in the Chair), Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Karen Naylor and Bruno Petrenas.

Non Members:

Councillors Brent Barrett, Rachel Bowen, Duncan McCann and Aleisha Rutherford.

Apologies:

The Mayor (Grant Smith) (Lateness) and Councillors Leonie Hapeta, Jim Jefferies, Tangi Utikere, Rachel Bowen (Early Departure – Council Business) and Karen Naylor (Early Departure).

 

34-18

Apologies

 

Moved Susan Baty, seconded Gabrielle Bundy-Cooke.

The COMMITTEE RESOLVED

1.   That the Committee receive the apologies.

 

Clause 34-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

  

35-18

Confirmation of Minutes

 

Moved Vaughan Dennison, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1.   That the minutes of the Finance and Performance Committee meeting of 23 April 2018 Part I Public be confirmed as a true and correct record.

 

Clause 35-18 above was carried 10 votes to 0, with 2 abstentions, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

Abstained:

Councillors Rachel Bowen and Duncan McCann.

 

36-18

Conference Opportunity - 2 Walk and Cycle Conference

Memorandum, dated 1 May 2018 from the Governance & Support Team Leader, Kyle Whitfield.

 

Moved Aleisha Rutherford, seconded Rachel Bowen.

The COMMITTEE RESOLVED

1.       That the Committee approve the attendance of up to 6 elected member(s) to attend, with expenses paid, the 2 Walk and Cycle Conference being held in Palmerston North on 30 July to 1 August 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 25 May 2018.

 

 

Clause 36-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

 

37-18

Conference Opportunity - Climate Change & Business Conference

Memorandum, dated 1 May 2018 from the Governance & Support Team Leader, Kyle Whitfield.

 

Moved Brent Barrett, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1.       That the Committee approve the attendance of up to 2 elected member(s) to attend, with expenses paid, the Climate Change & Business Conference being held in Auckland on 9 and 10 October 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 25 May 2018.

 

 

Clause 37-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

 

38-18

Conference Opportunity - Age-Friendly Communities Forum

Memorandum, dated 1 May 2018 from the Governance & Support Team Leader, Kyle Whitfield.

 

Moved Lew Findlay QSM, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1.       That the Committee approve the attendance of up to 16 elected member(s) to attend, with expenses paid, the Age-Friendly Communities Forum being held in Wellington on 19 June 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 25 May 2018.

 

 

Clause 38-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

 

39-18

Committee Work Schedule - May 2018

 

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1.   That the Finance and Performance Committee receive its Work Schedule dated May 2018.

 

Clause 39-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Brent Barrett, Susan Baty, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

      

Exclusion of Public

40-18

Recommendation to Exclude Public

 

Moved Susan Baty, seconded Vaughan Dennison.

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 - 23 April 2018

For the reasons setout in the Finance and Performance Committee minutes of 23 April 2018, held in public present.

12.

Kelvin Grove Crematorium Out of District Surcharge Analysis

Third Party Commercial

s7(2)(b)(ii)

13.

He Ara Kotahi - Updated budget and timeline

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), General Manager, Marketing and Communications (Sacha Haskell), and Communications Advisor (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.

Parks and Property Manager (John Brenkley) and Roading Manager (Jon Schwass) because of their knowledge around particular reports.

 

 

Clause 40-18 above was carried 12 votes to 0, the voting being as follows:

For:

Councillors Susan Baty, Brent Barrett, Rachel Bowen, Adrian Broad, Gabrielle Bundy-Cooke, Vaughan Dennison, Lew Findlay QSM, Lorna Johnson, Duncan McCann, Karen Naylor, Bruno Petrenas and Aleisha Rutherford.

 

 

 

The public part of the meeting finished at 9.14am

 

Confirmed 18 June 2018

 

 

 

Chairperson



 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Finance and Performance Committee

MEETING DATE:           18 June 2018

TITLE:                            Palmerston North Airport Ltd - Final Statement of Intent for 2018/19

DATE:                            5 June 2018

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

 

 

RECOMMENDATION(S) TO Council

1.   That the Palmerston North Airport Ltd Statement of Intent for 2018/19 be endorsed.

 

 

 

1.         ISSUE

Palmerston North Airport Ltd (PNAL) as a Council controlled trading organisation is required to prepare and adopt a Statement of Intent (SOI) each year before 30 June.  The final SOI for 2018/19 is attached for Council endorsement.

2.         BACKGROUND

PNAL’s draft SOI for 2018/19 was considered by the Finance & Performance Committee on 19 March 2018.   The draft was noted and its assumptions endorsed with one suggested change to the financial performance targets.

PNAL’s Board has reconsidered the draft and made a number of changes which are outlined in the introductory letter from the Chief Executive.  The changes mainly reflect an updating of the timing of the proposed capital expenditure programme but also incorporate updated and more specific performance targets covering matters that were discussed at the Committee meeting in March. The overall thrust of the SOI is unchanged.

The SOI is consistent with the assumptions made in the Council’s 2018-28 10 Year Plan.

3.         NEXT STEPS

PNAL will make their final SOI publicly available as required by the Local Government Act.

It is intended that PNAL’s annual report for the year to 30 June 2018 will be considered by the Finance & Performance Committee at its September meeting.

 

 

Attachments

1.

PNAL cover letter for final SOI 2018/19

 

2.

PNAL final SOI for 2018/19

 

 

 

Steve Paterson

Strategy Manager Finance

 

 

 

 

 

 

 

 


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PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Finance and Performance Committee

MEETING DATE:           18 June 2018

TITLE:                            Approval to Write Off Uncollectible Balances

DATE:                            15 May 2018

AUTHOR/S:                   Keith Allan, Financial Accountant, City Corporate

 

 

RECOMMENDATION(S) TO Council

1.   That the Committee recommends Council approve the write off of bad debts totalling $44,857.05 (including GST) with removal from the accounts receivable ledger.

 

 

 

1.         ISSUE

Review of collectability of accounts receivable is completed annually. Accounting standards require that provision for doubtful debt or write off is required where there are doubts concerning collectability, or are deemed to be uncollectible.

2.         BACKGROUND

Council has accrued revenue as invoiced for income earnt. Balances outstanding have been reviewed with some provisions for doubtful debt or write offs made by management. All feasible avenues have been followed to collect those written off however the amounts have been deemed not to be collectible.

There are two amounts which are in excess of the delegation to the Chief Executive and Chief Financial Officer of $8,000 for write off of each individual debtor and therefore require Council approval to enable write off to occur.

The outstanding amounts relate to:

Bethany’s Ltd (In Liquidation)

$22,607.54

Rent and costs associated with use of Bethany’s Restaurant as part of CAB

Farm Holdings (4) Ltd (Removed from Register)

$22,249.51

Costs associated with Land Resource Consent application

 

 

 

 

 

While the liquidation of Bethany’s Ltd (In Liquidation) is continuing the latest report details significant preferential creditors with minimal assets, dependant on collection on any overdrawn shareholder accounts and voidable transactions. It seems unlikely that any amount will be received and therefore write off is recommended. This will not prevent receipt of any future amounts should the Liquidator be in a position to pay a distribution.

Farm Holdings (4) Ltd (Removed from Register) has been removed from the companies register and is no longer a company. As such debts can no longer be pursued from that entity. Council has investigated and taken legal actions available without being able to recover the debt.

As the amounts cannot, or are unlikely to be collected, full write off is required.

A provision for doubtful debt for Farm Holdings (4) Ltd (Removed from Register) of $20,441.71 (including GST) was made in previous financial years. No provision exists for Bethany’s Ltd (In Liquidation) as this liquidation occurred during this financial year. The net impact on surplus for this year of this recommendation is a cost of $21,230.73 (excluding GST). The current year effect on surplus of total write offs and provisions has been minimal as this has been offset by reversal of provisions for doubtful debt made in prior years where the provision is no longer required.

3.         NEXT STEPS

This action writes off the receivable amounts from the accounts receivable ledger. The write off does allow refund of any GST paid and therefore provides a cashflow benefit.

 

4.         Compliance and administration

Does the Committee have delegated authority to decide?

If Yes quote relevant clause(s) from Delegations Manual <Enter clause>

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

Nil

 

Keith Allan

Financial Accountant

 

 

 

 



 

 

 


PALMERSTON NORTH CITY COUNCIL

 

Memorandum

TO:                                Finance and Performance Committee

MEETING DATE:           18 June 2018

TITLE:                            Fees & Charges - Confirmation Following Public Consultation

DATE:                            8 June 2018

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

 

 

RECOMMENDATION(S) TO Council

1.   That the submission from Aokautere Land Holdings Ltd be received and the officer’s comments in response, as outlined in Attachment A be noted.

2.   That the fees and charges for Planning & Miscellaneous Services, as scheduled in Attachments B and C, be approved, effective from 1 July 2018.

3.   That the fees and charges for Trade Waste Services, as scheduled in Attachment D, be approved, effective from 1 July 2018.

 

 

 

1.         ISSUE

            At its meeting on 26 March 2018 the Council approved fees and charges for planning and miscellaneous services and on 30 April 2018 fees and charges for trade waste services, all subject to public consultation.  This memo addresses submissions received and recommends confirmation of the fees and charges as attached.

2.         BACKGROUND

2.1       Previous Council Decisions

 

On 26 March 2018 Council adopted recommendations from the 19 March 2018 meeting of the Finance and Performance Committee.  These approved a schedule of fees and charges for planning and miscellaneous services subject to public consultation.

 

Similarly on 30 April 2018 Council adopted recommendations from the 23 April 2018 meeting of the Finance and Performance Committee.  These approved a schedule of fees and charges for trade waste services subject to public consultation.

2.2       Public Consultation

 

2.2.1    Planning & miscellaneous services

Public consultation for planning and miscellaneous services was carried out over the period from 12 April to 18 May 2018.  It involved direct written communication with planning consultants as well as public notices in local media and on Council’s website.  One written submission was received from Aokautere Land Holdings Ltd.  Although he initially indicated he wished to be heard in relation to the submission he subsequently decided he no longer wished to.

 

A copy of the submission together with officer’s comments in relation to the matters raised in the submission is contained in Attachment A.

 

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

 

2.2.2    Trade waste services

Public consultation for trade waste services was carried out over the period from 7 May to 8 June 2018.  It involved direct written communication with major trade waste users as well as all those who are required to pay fees relating to grease traps.  In addition there were 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 April meeting as a consequence of the public consultation process.

 

3.         NEXT STEPS

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

 

 

Attachments

1.

Attachment A - Planning & Miscellaneous fees - submission & officer comments;   Attachment B - Planning fees & charges;   Attachment C - Miscellaneous fees & charges;   Attachment D - Trade waste fees & charges

 

 

 

Steve Paterson

Strategy Manager Finance

 

 

 

 

 

 

 

 

 

 

 

 


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PALMERSTON NORTH CITY COUNCIL

 

Committee Work Schedule

TO:                                Finance and Performance Committee

MEETING DATE:           18 June 2018

TITLE:                            Committee Work Schedule

 

 

RECOMMENDATION(S) TO Finance and Performance Committee

1.   That the Finance and Performance Committee receive its Work Schedule dated June 2018.

 

 

Attachments

1.

Committee Work Schedule - June 2018

 

    


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