Minutes of Finance & Audit Committee - Wednesday, 21 October 2020

Palmerston North City Council

Minutes of the Finance & Audit Committee Meeting Part I Public, held in the Council Chamber, First Floor, Civic Administration Building, 32 The Square, Palmerston North on 21 October 2020, commencing at 9.00am

Members

Present:

Councillor Susan Baty (in the Chair), The Mayor (Grant Smith), Mr Stephen Armstrong and Councillors Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson and Karen Naylor.

Non Members:

Councillors Brent Barrett, Rachel Bowen, Zulfiqar Butt and Billy Meehan.

Apologies:

Councillors Bruno Petrenas, Aleisha Rutherford and Lew Findlay QSM (early departure).

Councillor Leonie Hapeta left the meeting at 9.27am during consideration of clause 45. She entered the meeting again at 9.33am after consideration of clause 45. She was not present for clause 45.

Councillor Lew Findlay QSM was not present when the meeting resumed at 10.51am. He was not present for clauses 48 to 53 inclusive.

Councillor Aleisha Rutherford was present when the meeting resumed at 10.51am. She was not present for clauses 41 to 47 inclusive.

41-20

Apologies

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 41-20 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor and Mr Stephen Armstrong.

42-20

Public Comment

Mr Richard Lloyd, Campus Operations Manager, Massey University (Manawatū Campus) made public comment to acknowledge those who had contributed over the last few years to the successful installation of a hockey turf at Massey University. His colleague Jacob Oram, Sport Advancement Manager at the university was unable to be present.

The project was a partnership approach between Hockey Manawatū, Palmerston North City Council and Massey University. The turf opened on Thursday 25 June with a traditional Māori blessing and since then has had a number of different age groups, schools, clubs and representative teams use the turf.

Highlights included the lower North Island secondary schools premier tournament from 31 August to 4 September which saw the city host secondary schools from around the country, and a bespoke tertiary sports invitational tournament. Mr Lloyd thanked the Council on behalf of the university and Hockey Manawatū for their support of the turf and the opportunities it had given people young and old.

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the public comment be received for information.

Clause 42-20 above was carried 14 votes to 0, the voting being as follows:

For:

43-20

Confirmation of Minutes

Moved Karen Naylor, seconded Vaughan Dennison.

The COMMITTEE RESOLVED

1. That the minutes of the Finance & Audit Committee meeting of 16 September 2020 Part I Public be confirmed as a true and correct record.

Clause 43-20 above was carried 14 votes to 0, the voting being as follows:

For:

44-20

Palmerston North Airport Limited - Annual Report for 12 months ended 30 June 2020 & instructions relating to Annual Meeting

Memorandum, presented by Steve Paterson, Strategy Manager – Finance.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the memorandum entitled ‘Palmerston North Airport Limited - Annual Report for 12 months ended 30 June 2020 & Instructions relating to Annual Meeting’ presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That the Annual Report and Financial Statements of Palmerston North Airport Limited for the year ended 30 June 2020 be received.

3. 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.

Clause 44-20 above was carried 14 votes to 0, the voting being as follows:

For:

45-20

Massey University Hockey Turf - Agreement for Shared Use

Report, presented by Kathy-Dever Tod, Manager - Parks & Reserves.

After discussion Elected Members decided to appoint a councillor to the Massey University Hockey Turf Steering Group.

Councillor Leonie Hapeta left the meeting at 9.27am.

Moved Billy Meehan, seconded Patrick Handcock ONZM.

The COMMITTEE RECOMMENDS

1. That the report entitled ‘Massey University Hockey Turf – Agreement for Shared Use’, presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That the Council approves the Agreement for Shared Use for the Massey University Hockey Turf.

3. That the Council decides to appoint a Councillor to the Massey University Hockey Turf Steering Group.

Clause 45-20 above was carried 13 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor and Mr Stephen Armstrong.

Councillor Leonie Hapeta returned to the meeting at 9.33am.

46-20

Quarterly Performance and Financial Report - Quarter Ending 30 September 2020

Memorandum, presented by Stuart McKinnon, Chief Financial Officer and Andrew Boyle, Head of Community Planning.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the memorandum entitled ‘Quarterly Performance and Financial Report - Quarter Ending 30 September 2020’ presented to the Finance & Audit Committee on 21 October 2020, be received.

Clause 46-20 above was carried 13 votes to 1, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Billy Meehan, Karen Naylor and Mr Stephen Armstrong.

Against:

Councillor Lorna Johnson.

47-20

Audit arrangements for small Council Controlled Organisations

Memorandum, presented by Steve Paterson, Strategy Manager – Finance.

After discussion Elected Members selected Option One with respect to the Caccia Birch Trust – to require a review rather than an audit.

Moved Grant Smith, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the memorandum entitled ‘Audit arrangements for small Council Controlled Organisations’ presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That the Council liaise with the Boards of the Caccia Birch Trust and Palmerston North Performing Arts Trust to amend the respective trust deeds to modify the requirements for audited financial statements.

3. That with respect to the Caccia Birch Trust the change be:

a. Option one – require a review rather than an audit

4. That with respect to the Palmerston North Performing Arts Trust the requirement for an audit of the annual financial statements be removed as outlined in Option two.

Clause 47-20 above was carried 14 votes to 0, the voting being as follows:

For:

The meeting adjourned at 10.32am.

The meeting resumed at 10.51am.

When the meeting resumed Councillor Lew Findlay was not present.

When the meeting resumed Councillor Aleisha Rutherford was present.

48-20

Treasury Report - 3 months ending 30 September 2020

Memorandum, presented by Steve Paterson, Strategy Manager - Finance.

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RESOLVED

1. That the memorandum entitled ‘Treasury Report – 3 months ending 30 September 2020’ presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That the performance of Council’s treasury activity for the 3 months ended 30 September 2020 be noted.

Clause 48-20 above was carried 14 votes to 0, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Aleisha Rutherford and Mr Stephen Armstrong.

49-20

Mayor and Deputy Mayor Expenditure 2019/2020

Memorandum, presented by Hannah White, Democracy & Governance Manager.

Moved Susan Baty, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1. That the memorandum entitled ‘Mayor and Deputy Mayor Expenditure 2019/2020’, presented to the Finance & Audit Committee on 21 October 2020, be received.

Clause 49-20 above was carried 13 votes to 0, with 1 abstention, the voting being as follows:

For:

Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Aleisha Rutherford and Mr Stephen Armstrong.

Abstained:

The Mayor (Grant Smith).

50-20

Otira Park - Proposal to grant a lease on reserve land to Palmerston North Pony Club Branch

Report, presented by Bryce Hosking, Manager – Property and Kathy Dever-Tod, Manager – Parks and Reserves.

Moved Aleisha Rutherford, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the report entitled ‘Otira Park - Proposal to grant a lease on reserve land to Palmerston North Pony Club Branch’ presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That the Council approves notifying the public of the proposal to grant a lease at Otira Park, 22 Totara Road to Palmerston North Pony Club Branch Incorporated, in accordance with Section 54 of the Reserves Act 1977.

3. That the Council notes the land area affected by the lease for Palmerston North Pony Club Branch Incorporated is described as part of Section 1732 TN of Palmerston North, part of Section 1737 TN of Palmerston North, part of Section 1 SO 27741 and Part Lot 1 DP 3063. The lease area is shown in the draft proposal lease contained in Attachment 1 of the report titled ‘Otira Park – Proposal to grant a lease on reserve land to Palmerston North Pony Club Branch’ presented to the Finance & Audit Committee on 21 October 2020.

Clause 50-20 above was carried 13 votes to 0, with 1 abstention, the voting being as follows:

For:

The Mayor (Grant Smith) and Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Karen Naylor, Aleisha Rutherford and Mr Stephen Armstrong.

Abstained:

Councillor Leonie Hapeta.

51-20

Ashhurst Domain - Proposal to lease area for Scout hall

Report, presented by Kathy Dever-Tod, Manager - Parks and Reserves.

Moved Brent Barrett, seconded Aleisha Rutherford.

The COMMITTEE RECOMMENDS

1. That the report entitled ‘Ashhurst Domain – Proposal to lease area for Scout hall’ presented to the Finance & Audit Committee on 21 October 2020, be received.

2. That Council approves Option One in the report titled ‘Ashhurst Domain - Proposal to lease area for Scout hall’ presented to the Finance & Audit Committee on 21 October 2020 and proceeds to public notification on the proposal to grant a lease for a Scout hall at the Ashhurst Domain, meeting the requirements of Section 54 of the Reserves Act 1977.

3. That Council notes the recreation reserve on which the lease is proposed is part of Lot 1 DP 52268; the lease area and the draft lease are contained in Attachment One of the report titled ‘Ashhurst Domain – Proposal to lease area for a Scout hall’ presented to the Finance & Audit Committee on 21 October 2020.

Clause 51-20 above was carried 14 votes to 0, the voting being as follows:

For:

52-20

Committee Work Schedule

Elected Members discussed Item 4 on the Work Schedule (‘Energy and environmental efficiency options report for any public housing opportunities’) and noted that as a decision regarding public housing at Whakarongo had not yet been made, this report was no longer required.

Moved Susan Baty, seconded Brent Barrett.

The COMMITTEE RECOMMENDS

1. That the Finance & Audit Committee receive its Work Schedule dated October 2020.

2. That Council revoke the following resolution dated 17 June 2020 (clause 23-20 (3)): ‘That the Chief Executive be instructed to report back to the October meeting of the Finance & Audit Committee regarding energy and environmental efficiency options for any public housing opportunities’, as this report is no longer required.

Clause 52-20 above was carried 14 votes to 0, the voting being as follows:

For:

Exclusion of Public

53-20

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
16.	Bunnythorpe Community Facility Expansion	Negotiations	s7(2)(i)

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.

Clause 53-20 above was carried 14 votes to 0, the voting being as follows:

For:

The public part of the meeting finished at 11.29am

Confirmed 18 November 2020

Chairperson