Late Item Agenda of Council

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

PALMERSTON NORTH CITY COUNCIL

Memorandum

TO: Council

MEETING DATE: 24 October 2018

TITLE: Palmerston North Airport Limited - Annual Report for 12 months ended 30 June 2018 & Instructions relating to Annual Meeting

DATE: 18 October 2018

Presented By: Steve Paterson, Strategy Manager Finance, Finance

APPROVED BY: Grant Elliott, Chief Financial Officer

RECOMMENDATION(S) TO Council

1. That clause 66-18 of the Finance and Performance Committee recommendations from the meeting on 17 September 2018 be uplifted.

2. That the recommendations from the Committee be adopted.

1. ISSUE

At its meeting on 24 September 2018 the Council decided to leave lying on the table a recommendation from the meeting of the Finance & Performance Committee meeting on 17 September 2018 relating to the Palmerston North Airport Limited (PNAL) annual meeting.

This memo recommends the item be uplifted from the table and the Committee’s recommendations be adopted.

2. BACKGROUND

At its meeting on 17 September the Finance & Performance Committee considered a report relating to PNAL’s annual report for the year ended 30 June 2018.

One of the issues discussed at the meeting was the proposal from PNAL that directors’ remuneration be increased to a total of $124,000 per annum effective from 1 July 2018.

The Committee resolved to make the following recommendation 66-18 to the Council:

“That the Annual Report and Financial Statements of Palmerston North Airport Limited for the year ended 30 June 2018 be received.

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

At the Council meeting it was determined the matter would lie on the table. This was to enable Councillors who wished to have access to a report from the Institute of Directors to do so.

Since the Council meeting the report has been made available.

The report considered by the Finance & Performance Committee contained an attachment that showed how PNAL had benchmarked itself against other similar regional airports.

In addition, the 2018 Institute of Directors’ fees survey report shows the following:

Revenue ($ pa)

Median non-executive chair fees

Median non-executive director fees

0 – 5m

5.1 – 10m

10.1 – 20m

$24,000

$41,600

$42,000

$15,500

$24,500

$25,000

(PNAL’s operating revenue for the year ended 30 June 2018 was $8.5m)

The survey also shows the following non-executive director fees for council-controlled organisations:

Lower quartile	Median	Upper quartile	Average
$24,556	$36,000	$45,000	$35,249

These compare with the sums proposed by PNAL that would result in the following allocations of the total remuneration of $124,000 per annum (fixed for three years):

Board chair $35,000

Audit & Risk chair $24,500

Other directors $21,500

3. NEXT STEPS

PNAL’s annual report will be published on the Company’s website and be made available in Council offices and libraries. The resolutions for the annual meeting will be authorised in writing by the Council’s shareholder representative.

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
The recommendations contribute to Goal 1: An Innovative and Growing City
The recommendations contribute to the outcomes of the Economic Development Strategy
The recommendations contribute to the achievement of action/actions in the Economic Development PlanThe action is: operating a key gateway for people and freight to and from the city and the wider region; grow passenger numbers and freight using the airport.
Contribution to strategic direction	PNAL is playing an active part in growing the City.

Attachments

Nil