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Extraordinary Council Meeting Wednesday 6 November 2019 at 9.30am
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Extraordinary Council Meeting Wednesday 6 November 2019 at 9.30am
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Extraordinary Council Meeting
6 November 2019
Northland Regional Extraordinary Council Meeting Agenda
Meeting to be held in the Council Chamber
36 Water Street, Whangārei
on Wednesday 6 November 2019, commencing at 9.30am
Recommendations contained in the council agenda are NOT council decisions. Please refer to council minutes for resolutions.
Item Page
Housekeeping
1.0 apologies (ngĀ whakapahĀ)
2.0 DECLARATIONS OF CONFLICTS OF INTEREST (NGA WHAKAPUAKANGA)
3.1 Declaration by Colin Kitchen 3
3.2 Northland Inc. Limited Annual Report for the Year Ending 30 June 2019 5
3.3 Local Government New Zealand National Council Elections: Call for Nominations Regional Sector and Zone One 44
4.0 Business with the Public Excluded 47
4.1 Land at 8 Kensington Avenue Whangarei
Extraordinary Council Meeting item: 3.1
6 November 2019
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TITLE: |
Declaration by Colin Kitchen |
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ID: |
A1253432 |
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From: |
Malcolm Nicolson, Chief Executive Officer |
Executive summary/Whakarāpopototanga
Elected candidates took up office on 22 October 2019; the day after the official result was declared by public notice. However, they cannot act in their capacity as a councillor until such time they have sworn the oath of office at the first meeting of council.
All the other elected candidates signed their declarations at the inaugural meeting of council held on 29 October 2019. This report facilitates the formal declaration to be made by elected member Colin Kitchen who was out of the country for the inaugural meeting.
That the report ‘Declaration by Colin Kitchen’ by Malcolm Nicolson, Chief Executive Officer and dated 25 October 2019, be received.
Background/Tuhinga
Elected members are invited to make and sign a declaration to enable them to carry out their duties as councillors, as required by law.
Section 14 of Schedule 7 to the Local Government Act 2002 provides as follows:
“14. Declaration by a member –
1. A person may not act as a member of a local authority until –
(a) That person has, at a meeting of the local authority following the election of that person, made an oral declaration in the form set out in subclause (3); and
(b) A written version of the declaration has been attested as provided under subclause (2).
2. The written declaration must be signed by the member and witnessed by –
(a) The Chairperson; or
(b) The Mayor; or
(c) A member of the local authority; or
(d) The Chief Executive of the local authority; or
(e) In the absence of the Chief Executive, some other officer appointed by the Chief Executive.”
The form of the declaration must consist of the following elements:
Declaration by member
“I, [state full name], declare that I will faithfully and impartially, and according to the best of my skill and judgement, execute and perform, in the best interests of the Northland region, the powers, authorities, and duties vested in, or imposed upon, me as a member of the Northland Regional Council by virtue of the Local Government Act 2002, the Local Government Official Information and Meetings Act 1987, or any other Act”
Dated at Whangarei this 6th day of November 2019
[Signature]
Signed in the presence of
Penny Smart [Chair, Northland Regional Council]
I will ask Colin Kitchen to step forward, read the declaration out loud and sign the declaration document. The Chair will then witness the declaration with her signature.
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
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Name: |
Malcolm Nicolson |
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Title: |
Chief Executive Officer |
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Date: |
31 October 2019 |
Extraordinary Council Meeting item: 3.2
6 November 2019
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TITLE: |
Northland Inc. Limited Annual Report for the Year Ending 30 June 2019 |
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ID: |
A1251322 |
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From: |
Darryl Jones, Economist and Simon Crabb, Finance Manager |
Executive summary/Whakarāpopototanga
Northland Inc. Limited’s (Northland Inc.) Annual Report 2018/19 conforms to the requirements of the Local Government Act 2002. Northland Inc. reported a surplus after tax of $11,185 in the 2018/19 financial year compared to a budget surplus of $289 (2017/18: $9,493 surplus compared to a budget surplus of $759), producing a closing equity position at 30 June 2019 of $133,656 ($122,471 as at 30 June 2018). In addition, 15 of the 17 performance measures set out in Northland Inc.’s Statement of Intent 2018–2021 have been achieved.
Northland Inc. is required by legislation and their constitution to hold an annual meeting of shareholders no later than six months after the balance date being 30 June. An AGM has been set for 28 November 2019. Northland Inc. have requested that council, as 100% shareholder of Northland Inc., determine that an annual meeting not be held this year so that resources can be diverted to arranging and hosting engagement sessions around the region. Staff recommend accepting this request and that this be provided in writing to Northland Inc.
1. That the report ‘Northland Inc. Limited Annual Report for the Year Ending 30 June 2019’ by Darryl Jones, Economist and Simon Crabb, Finance Manager and dated 21 October 2019, be received.
2. That council authorise Malcolm Nicolson, Chief Executive Officer, send a letter to Northland Inc. Limited informing them that council, as the 100% shareholder of Northland Inc., does not require them to hold an annual meeting of shareholders in 2019.
Background/Tuhinga
As required under section 67 of the Local Government Act 2002 (LGA), Northland Inc. has provided council with a copy of their Annual Report for the year ended June 2019 (Attachment 1).
Staff have reviewed the Annual Report and confirm that the requirements of the LGA in relation to the content (i.e. sections 68 and 69) have been met, e.g. reporting against the Statement of Intent (SOI), audited consolidated financial statements, and an independent auditor’s report.
Northland Inc. reported a surplus after tax of $11,185 in the 2018/19 financial year compared to a budget surplus of $289 (2017/18: $9,493 surplus compared to a budget surplus of $759), producing a closing equity position at 30 June 2019 of $133,656 ($122,471 as at 30 June 2018).
In terms of reporting against the key performance indicators (KPI) set out in the SOI 2018–2021, the results are set out on pp. 16–17 of the Annual Report. Northland Inc. achieved 15 of the 17 targets. The two KPIs not meet were: Value of NZTE and Callaghan Innovation grant funding facilitated; and Client Satisfaction for Māori Businesses. The key reason for the former not being achieved was the confusion caused among business clients by changes to R&D tax credits and its impact on the availability of grants. The later was not achieved as the sample size of those who responded was considered too small to provide a meaningful result.
The audit report prepared by Deloitte gave an unqualified opinion that the financial statements and KPI reporting presents fairly the performance of the company and complies with legislative and standard accounting practices.
A representative from Northland Inc. Limited will attend the council meeting to answer any questions.
Northland Inc. has set a date for its Annual General Meeting on Thursday 28 November. However, they have requested that council agree to cancel this year’s meeting in order to devote resources to arranging and hosting engagement sessions around the region. The intention is to hold at least three of these, one in each district, in the new year. The purpose of these sessions is to inform a much wider community of people on the work done by Northland Inc.
Under section 120 of the Companies Act 1993 and clause 13 of the Northland Inc. constitution, which each say the same thing, Northland Inc. is required to hold an annual meeting of shareholders. However, clause 13 also states that ‘no annual meeting need be called and held if everything required to be done at the meeting is done by written resolution in lieu of the annual meeting passed in accordance with this constitution’.
As there is nothing required to be done at this year’s annual meeting there is no need to provide a written resolution on any matter. Further, there are no issues highlighted within the Auditor’s report that council would need to raise with the directors at an annual meeting. Council have had, and will continue to have, the opportunity through quarterly workshops with Northland Inc. directors to discuss progress towards the various KPIs. Council is therefore in a position to decide that an annual meeting of shareholders is not required for 2019.
Considerations
1. Options
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No. |
Option |
Advantages |
Disadvantages |
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1 |
Agree to cancel the annual general meeting for 2019 |
Frees up administration and budget resources of Northland Inc. to reallocate to hosting engagement sessions throughout the region. |
Does not provide a forum for council to question the directors of Northland Inc. on matters relating to the performance of the company. |
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2 |
Require Northland Inc. to hold an annual meeting of shareholders |
Council has the opportunity to raise issues around the performance of the company. |
Reduces resources available to host engagement sessions. |
The staff’s recommended option is Option 1.
2. Significance and engagement
In relation to section 79 of the Local Government Act 2002, this decision is considered to be of low significance when assessed against council’s significant and engagement policy because it is part of council’s day to day activities. This does not mean that this matter is not of significance to tangata whenua and/or individual communities, but that council is able to make decisions relating to this matter without undertaking further consultation or engagement.
3. Policy, risk management and legislative compliance
The decision is inconsistent with the requirements of the Companies Act 2002 and Northland Inc.’s Constitution. There are no identified risks with this decision. Northland Inc.’s Annual Report is already publicly available on their website as required under the Local Government Act 2002 (available at https://www.northlandnz.com/northland-inc/resource-hub-documents/northland-inc-annual-report-2018-19/).
Being a purely administrative matter, Community Views, Māori Impact Statement, Financial Implications and Implementation Issues are not applicable.
Attachments/Ngā tapirihanga
Attachment 1: Northland Inc. Limited
Annual Report 2018/19 ⇩ 
Authorised by Group Manager
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Name: |
Jonathan Gibbard |
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Title: |
Group Manager - Strategy, Governance and Engagement |
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Date: |
31 October 2019 |
6 November 2019
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TITLE: |
Local Government New Zealand National Council Elections: Call for Nominations Regional Sector and Zone One |
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ID: |
A1251509 |
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From: |
Chris Taylor, Governance Support Manager |
Executive summary/Whakarāpopototanga
The purpose of this report is for council to authorise the Chair (or the Chair’s nominee) to exercise council’s vote at the:
· Regional Sector Group meeting being held on 8 November 2019 for the appointment of Chair of the Regional Sector, and also two representatives from the Regional Sector to serve on the National Council.
· Zone One meeting being held on 15 November 2019 for the appointment of a Zone One representative for National Council and the appointment of a Chair for Zone One.
1. That the report ‘Local Government New Zealand National Council Elections: Call for Nominations Regional Sector and Zone One’ by Chris Taylor, Governance Support Manager and dated 21 October 2019, be received.
2. That the Chair (or Chair’s nominee) is authorised to exercise council’s vote at the Regional Sector Group meeting being held on 8 November 2019 for the election of Chair of the Regional Sector, and also the election of two representatives from the Regional Sector on the National Council.
3. That the Chair (or Chair’s nominee) is authorised to exercise council’s vote at the Zone One meeting being held on 15 November 2019 for the appointment of a Zone One representative for National Council and appointment of a Chair for Zone One.
Background/Tuhinga
Local Government New Zealand (LGNZ) is calling for nominations for:
· Two representatives from the Regional Sector to be appointed to the National Council of LGNZ, and the Chair of the Regional Sector; and
· A Zone One representative to be appointed to the National Council of LGNZ, and the Chair of Zone One.
Nominations must be in writing and signed by two member authorities of the Regional Sector/Zone One, and by the person accepting the nomination. A separate nomination form for each nomination is required.
Nominations will be accepted only from representatives of councils that are members of the Regional Sector and Zone One.
Nominations must be received by LGNZ no later than 5 pm on Thursday 31 October 2019.
If only two nominations from the Regional Sector Group for National Council representatives are received those persons shall be declared elected, and if only one nomination for a Zone One representative to National Council is received that person shall be declared elected.
If an election to appoint the Regional Sector/Zone One representatives to National Council is required, then the election of that person will be conducted in accordance with relevant Sector/Zone rules and the LGNZ rules. The Returning Officer for any election is Malcolm Alexander, Chief Executive, LGNZ (or nominee).
According to Rule E8 of the LGNZ rules, appointments to National Council by Sectors/Zones must be made and notified to LGNZ within eight weeks after the triennial local government elections. Successful candidates assume office on the day that is eight weeks after the triennial elections (Rule 10).
Voting papers will be prepared (if required) by LGNZ and distributed to members at the Regional Sector meeting on 8 November 2019, and the Zone One meeting on 15 November 2019. For the Regional Sector each member council has one vote, and each member council is entitled to vote for two representatives for National Council. For Zone One each member council has the votes allocated to it as determined under Rule H1, unless this is specifically precluded in the Zone rules. Proxy voting may occur for both Regional Sector and Zone One.
No voting paper shall be valid unless signed by the presiding delegate or a notified alternative.
Should any matters arise in the conduct of the elections which is not expressly provided for in either the Sector/Zone or LGNZ rules, the Returning Officer shall determine the matter.
In the event of an equality of voting, the Chair still have a casting vote.
Under the current LGNZ rules the term of office for the position of:
· Sector Chair is from the time of the appointment until either the person ceases to hold office as an elected member or the successor assumes office (unless the Sector rules state otherwise);
· The term of office for the position of Sector representative on National Council will be from the time of the appointment (eight weeks after the local government triennial elections) until a successor takes office;
· Zone Chair is from the time of the appointment until either that person ceases to hold office as an elected member or the successor assumes office (unless the Zone rules state otherwise); and
· Zone representative on National Council will be from the time of the appointment (eight weeks after the local government triennial elections) until a successor takes office.
Voting papers will be destroyed by the Returning Officer after the results have been declared.
Considerations
1. Options
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No. |
Option |
Advantages |
Disadvantages |
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1 |
Allow the Chair or their nominee to have a vote |
Allows council to have some input into the makeup of national groups. |
None apparent. |
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2 |
Don’t provide the Chair or their nominee an opportunity to vote |
None apparent. |
Does not allow council to have a say in the makeup of national groups. |
The staff’s recommended option is Option 1.
2. Significance and engagement
This is of low significance as it is part of the day to day activities of council in an administrative matter.
3. Policy, risk management and legislative compliance
This is an administrative matter that has no specific legislative policies or risk management implications.
Being a purely administrative matter, Community Views, Māori Impact Statement, Financial Implications and Implementation Issues are not applicable
Attachments/Ngā tapirihanga
Nil
Authorised by Group Manager
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Name: |
Jonathan Gibbard |
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Title: |
Group Manager - Strategy, Governance and Engagement |
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Date: |
31 October 2019 |
Extraordinary Council Meeting ITEM: 4.0
6 November 2019
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TITLE: |
Executive Summary
The purpose of this report is to recommend that the public be excluded from the proceedings of this meeting to consider the confidential matters detailed below for the reasons given.
1. That the public be excluded from the proceedings of this meeting to consider confidential matters.
2. That the general subject of the matters to be considered whilst the public is excluded, the reasons for passing this resolution in relation to this matter, and the specific grounds under the Local Government Official Information and Meetings Act 1987 for the passing of this resolution, are as follows:
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Item No. |
Item Issue |
Reasons/Grounds |
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4.1 |
Land at 8 Kensington Avenue Whangarei |
The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to enable council to carry out, without prejudice or disadvantage, commercial activities s7(2)(h) and the withholding of which is necessary to enable council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(i). |
3. That the Independent Financial Advisor be permitted to stay during business with the public excluded.
Considerations
1. Options
Not applicable. This is an administrative procedure.
2. Significance and Engagement
This is a procedural matter required by law. Hence when assessed against council policy is deemed to be of low significance.
3. Policy and Legislative Compliance
The report complies with the provisions to exclude the public from the whole or any part of the proceedings of any meeting as detailed in sections 47 and 48 of the Local Government Official Information Act 1987.
4. Other Considerations
Being a purely administrative matter; Community Views, Māori Impact Statement, Financial Implications, and Implementation Issues are not applicable.
