Minutes of Finance & Audit Committee - Wednesday, 24 February 2021

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 24 February 2021, commencing at 9.00am

Members

Present:

Councillor Susan Baty (in the Chair), Councillors Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Leonie Hapeta, Lorna Johnson, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

Non Members:

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

Apologies:

The Mayor (Grant Smith) (late arrival, on Council business).

Note: Councillor Renee Dingwall attended the meeting via audio visual link.

Councillor Billy Meehan left the meeting at 10.05am during consideration of clause 8. He entered the meeting again at 10.08am during consideration of clause 9. He was not present when the meeting resumed at 4.01pm. He was not present for clause 8 and clauses 11 to 15 inclusive.

The Mayor (Grant Smith) entered the meeting at 10.30am during consideration of clause 9. He was not present when the meeting resumed at 4.01pm. He was not present for clauses 1 to 8 and 11 to 15 inclusive.

Councillor Lew Findlay QSM was not present when the meeting resumed at 4.01pm. He was not present for clauses 11 to 15 inclusive.

1-21

Apologies

Moved Susan Baty, seconded Aleisha Rutherford.

The COMMITTEE RESOLVED

1. That the Committee receive the apologies.

Clause 1-21 above was carried 15 votes to 0, the voting being as follows:

For:

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, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

2-21

Hearing of Submissions - Proposal to grant a lease to the Pony Club at Otira Park

The following people appeared before the Committee and made oral statements in support of their submission and replied to questions from Elected Members.

James Good and Rachel Robertson (95 and 34):

Mr James Good and Ms Rachel Robertson spoke to their submissions and made the following additional comments:

· In the 70’s and 80’s Manawatu Pony Club had a minimum of eight branches in the area with a minimum of 40-50 riders per branch. Today there are four branches in the Manawatu area; one with twenty riders, and the other three are at eight-twelve per branch. Palmerston North branch currently has ten junior riders.

· Palmerston North Pony Club is the only club within the city boundary for children to join. At present riding members are aged between 4 and 13.

· Members are a fabulous bunch who love to get together to share their love of riding and learn skills in a supportive group. Friendships made here last a lifetime; the majority of parents were former pony club riders in their day.

· The club offers grazing and use of the grounds to members so that people living in town can participate in a predominately rural-based sport. Grazing is offered at a reduced rate that affords city owners the ability to buy their own horse and graze without the expense of owning their own land.

· Grazing funds are used solely for continuation of lease expenses, insurances and basic requirements of the club, as well as improvements from time to time where funds permit.

· The club has been operating with a negative balance for several seasons; it is only through the generous work of volunteers that it is able to keep going.

· The club has a great history in the area and is an asset to the city. To lose the lease of the grounds would cause greater financial hardship for the club, heartache to the children and possibly would mean the end of the club if it was unable to secure a new suitable location.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Finance & Audit Committee hear submissions from presenters who indicated their wish to be heard in support of their submission.

2. That the Committee note the Procedure for Hearing of Submissions, as described in the procedure sheet.

Clause 2-21 above was carried 15 votes to 0, the voting being as follows:

For:

3-21

Otira Park - Palmerston North Pony Club Land Lease Proposal - Summary of Submissions

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

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the memorandum titled ‘Otira Park - Palmerston North Pony Club Land Lease Proposal - Summary of Submissions’ presented to the Finance and Audit Committee on 24 February 2021, be received.

Clause 3-21 above was carried 15 votes to 0, the voting being as follows:

For:

4-21

Hearing of Submissions - Proposed Scout Hall in Ashhurst Domain

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Finance & Audit Committee hear submissions from presenters who indicated their wish to be heard in support of their submission.

2. That the Committee note the Procedure for Hearing of Submissions, as described in the procedure sheet.

Clause 4-21 above was carried 12 votes to 2, with 1 abstention, the voting being as follows:

For:

Councillors Susan Baty, Brent Barrett, Rachel Bowen, Zulfiqar Butt, Vaughan Dennison, Renee Dingwall, Lew Findlay QSM, Patrick Handcock ONZM, Lorna Johnson, Billy Meehan, Bruno Petrenas and Mr Stephen Armstrong.

Against:

Councillors Karen Naylor and Aleisha Rutherford.

Abstained:

Councillor Leonie Hapeta.

5-21

Ashhurst Domain - Scout Land Lease Proposal - Summary of Submissions

Memorandum, presented by Kathy Dever-Tod, Manager - Parks and Reserves; Bryce Hosking, Manager - Property.

Moved Lew Findlay QSM, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the memorandum titled “Ashhurst Domain - Scout Land Lease Proposal - Summary of Submissions” presented to the Finance and Audit Committee on 24 February 2021, be received.

Clause 5-21 above was carried 15 votes to 0, the voting being as follows:

For:

6-21

Confirmation of Minutes

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

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

Clause 6-21 above was carried 14 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, Lew Findlay QSM, Leonie Hapeta, Lorna Johnson, Billy Meehan, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

Abstained:

Councillor Patrick Handcock ONZM.

7-21

Quarterly Performance and Financial Report - Quarter Ending 31 December 2020

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

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RECOMMENDS

1. That the Quarterly Performance and Financial Report – Quarter Ending 31 December 2020 be received.

2. That Council note the three waters grant funding values, and approve a corresponding change to the 2020/21 revised budget to reflect the revenue and expenditure increase, as outlined in the memorandum titled ‘Quarterly Performance and Financial Report – Quarter Ending 31 December 2020’, presented to the Finance & Audit Committee on 24 February 2021.

Clause 7-21 above was carried 15 votes to 0, the voting being as follows:

For:

8-21

Treasury Report - 6 months ending 31 December 2020

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

Councillor Billy Meehan left the meeting at 10.05am

Moved Karen Naylor, seconded Brent Barrett.

The COMMITTEE RESOLVED

1. That the performance of Council’s treasury activity for the 6 months ended 31 December 2020 be noted.

Clause 8-21 above was carried 14 votes to 0, the voting being as follows:

For:

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

9-21

Animal Shelter Options

Report, presented by Bryce Hosking, Manager - Property & Kerry-Lee Probert, Head of Environmental Protection Services.

Councillor Billy Meehan entered the meeting at 10.08am.

The Mayor (Grant Smith) entered the meeting at 10.30am.

The meeting adjourned at 10.39am
The meeting resumed at 11.00am

Moved Lorna Johnson, seconded Aleisha Rutherford.

The COMMITTEE RECOMMENDS

1. That Council proceeds with Option 1 of the report titled ‘Animal Shelter Options’ presented to the Finance & Audit Committee on 24 February 2021, and undertakes the construction of the Animal Shelter Base Build only.

2. That the request for the increase of the total budget of Programme 1552 from $2,750,000 to $4,173,600, to enable the construction of the Animal Shelter Base Build, be included in the draft 2021-31 LTP for consideration.

This budget will have the following financial year split:

· 2021/22 (Year 1) – $2,750,000, and

· 2022/23 (Year 2) – $1,423,600.

Clause 9-21 above was carried 15 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, Lorna Johnson, Billy Meehan, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

Against:

Councillor Karen Naylor.

10-21

Health, Safety and Wellbeing Report October - December 2020

Memorandum, presented by Alan Downes, Health, Safety and Wellbeing Manager and Wayne Wilson, Human Resources Manager.

Moved Vaughan Dennison, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the memorandum titled ‘Health, Safety and Wellbeing Report October – December 2020’, presented to the Finance & Audit Committee on 24 February 2021, be received for information.

Clause 10-21 above was carried 16 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, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

The meeting adjourned at 11.55am

The meeting resumed at 4.01pm

The Mayor (Grant Smith) and Councillors Lew Findlay QSM, Leonie Hapeta and Billy Meehan were not present when the meeting resumed.

11-21

Manawatu Community Athletics Track - Reviewed Memorandum of Understanding

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

Councillor Leonie Hapeta entered the meeting at 4.03pm.

Moved Susan Baty, seconded Leonie Hapeta.

The COMMITTEE RECOMMENDS

1. That Council endorse the proposed 2020 Manawatu Community Athletics Track Memorandum of Understanding, as attached to the memorandum titled ‘Manawatu Community Athletics Track - Reviewed Memorandum of Understanding’ presented to the Finance and Audit Committee on 24 February 2021, noting that it replaces the 2000 and 2006 Memoranda of Understanding.

2. That Council approve signing of the 2020 Manawatu Community Athletics Track Memorandum of Understanding subject to funding in the 2021/31 Ten Year Plan.

Clause 11-21 above was carried 13 votes to 0, 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, Karen Naylor, Bruno Petrenas, Aleisha Rutherford and Mr Stephen Armstrong.

12-21

CET Arena Pedestrian Entrance Bridge LED Display

Memorandum, presented by Bryce Hosking, Manager - Property.

Moved Vaughan Dennison, seconded Leonie Hapeta.

The COMMITTEE RECOMMENDS

1. That Council increase the budget of Programme 1534 – Central Energy Trust Arena Manawatu – Embankment Redevelopment by $130,000 + GST to allow for the additional external funding received to be used for the supply and installation of the LED displays along the pedestrian entrance bridge, and the balance of $20,000 + GST of the external funding to be used as an operational expense for the initial licensing and content of these LED displays.

Clause 12-21 above was carried 13 votes to 0, the voting being as follows:

For:

13-21

Clearview Reserve - Proposal to Grant an Easement on Reserve Land to Powerco

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

Moved Susan Baty, seconded Vaughan Dennison.

The COMMITTEE RECOMMENDS

1. That the Council approves notifying the public of the proposal to grant an easement at Clearview Reserve, Palmerston North to convey electricity, to Powerco, in accordance with Section 48 of the Reserves Act 1977.

2. That the Council notes the land area affected by the easement for Powerco is described as part of Lot 1 DP 69185. The affected area of the easement is shown in the draft LT plan contained in Attachment 1 of the report titled ‘Clearview Reserve - Proposal to Grant an Easement on Reserve Land to Powerco’ presented to the Finance & Audit Committee on 24 February 2021.

Clause 13-21 above was carried 13 votes to 0, the voting being as follows:

For:

14-21

Assurance Report on Review of Project Management Office

Memorandum, presented by Masooma Akhter, Business Assurance Manager and Geoff Snedden, PMO Manager.

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the memorandum titled ‘Assurance Report on Review of Project Management Office’ and its attachment, presented to the Finance & Audit Committee on 24 February 2021, be received for information.

Clause 14-21 above was carried 13 votes to 0, the voting being as follows:

For:

15-21

Committee Work Schedule

Moved Susan Baty, seconded Karen Naylor.

The COMMITTEE RESOLVED

1. That the Finance & Audit Committee receive its Work Schedule dated February 2021.

Clause 15-21 above was carried 13 votes to 0, the voting being as follows:

For:

The meeting finished at 4.35pm

Confirmed 24 March 2021

Chairperson