Investment and Property Subcommittee

Wednesday 26 February 2020 at 1.00pm

 

 

AGENDA

 


Investment and Property Subcommittee

26 February 2020

Investment and Property Subcommittee Agenda

 

Meeting to be held in the Council Chamber

36 Water Street, Whangārei

on Wednesday 26 February 2020, commencing at 1.00pm

 

Recommendations contained in the agenda are NOT decisions of the meeting. Please refer to minutes for resolutions.

 

MEMBERSHIP OF THE Investment and Property Subcommittee

Chairperson, NRC Councillor Rick Stolwerk

Councillor Justin Blaikie

Councillor John Bain

Councillor Colin Kitchen

Ex-Officio Penny Smart

Independent Financial Advisor Geoff Copstick  

 

 

 

Item                                                                                                                                                                                   Page

1.0       apologies   

2.0       declarations of conflicts of interest

3.0       Confirmation of Minutes

3.1       Confirmation of Minutes - 16 December 2019                                                                                 3

4.0       Reports

4.1       Performance of Councils Externally Managed Funds to 31 January 2020                              6

4.2       Mount Tiger Forest Quarter Two Report (October - December 2019)                                  24   

5.0       Business with the Public Excluded                                                                                                      28

5.1       Confirmation of Confidential Minutes - 16 December 2019

5.2       Value of Consolidated Whangarei CBD Properties  

   


Investment and Property Subcommittee                                                                                                                   item: 3.1

26 February 2020

 

TITLE:

Confirmation of Minutes - 16 December 2019

ID:

A1286905

From:

Dave Tams, Group Manager, Corporate Excellence

 

Recommendation

That the minutes of the Investment & Property Subcommittee meeting held on 16 December 2019 be confirmed as a true and correct record.

 

Attachments/Ngā tapirihanga

Attachment 1: Investment & Property Subcommittee minutes 16 December 2019  

Authorised by Group Manager

Name:

Dave Tams

Title:

Group Manager, Corporate Excellence

Date:

24 February 2020

 


Extraordinary Investment and Property Subcommittee  ITEM: 3.1

26 February 2020Attachment 1

Extraordinary Investment and Property Subcommittee Minutes

 

Meeting held in the Whale Bay Rm 3rd floor

36 Water Street, Whangārei

on Monday 16 December 2019, commencing at 1.00pm

 

 

Present:

Chairperson, NRC Councillor Rick Stolwerk

Councillor Justin Blaikie – Phoned in

Councillor John Bain

Ex-Officio Penny Smart

Independent Financial Advisor Geoff Copstick

 

 

In Attendance:

Full Meeting     

Councillor Jack Craw

Chief Executive

Group Manager Corporate Excellence

Strategic Projects Manager

Property Officer

Personal Assistance to Group Manager Corporate Excellence

 

Part Meeting

 

Ian Jenkins – Jenksmax Consulting Limited

 

The Chair declared the meeting open at 1.05pm.

Apologies/Whakapahā (Item 1.0)

Moved ( Bain  / Smart )

That the apologies from Councillor Colin Kitchen for non-attendance be received.

Carried

 Declarations of Conflicts of Interest (Nga whakapuakanga) (Item 2.0)

It was advised that members should make declarations item-by-item as the meeting progressed.

Secretarial Note: Item 4.1 was addressed following Item 4.2.

1.             Whangarei District Council's Civic Centre (Item 3.1)

ID: A1267030

Report from Phil Heatley, Strategic Projects Manager

Moved ( Bain  / Smart )

That the report ‘Whangarei District Council's Civic Centre ’ by Phil Heatley, Strategic Projects Manager and dated 6 December 2019, be received.

Carried

Strategic Projects Manager to reply back to Whangarei District Council (WDC) to advise Northland Reginal Council has a property strategy in place that does not include relocating in Whangarei.  Interested in what WDC is proposing to NRC and will consider it. 

 

 Moved ( Bain  / Smart )

1.30pm Moved into Business with Public Excluded (Item 4.0) 

Recommendations

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:

Item No.

Item Issue

Reasons/Grounds

4.1

Request to Purchase Whangarei CBD Properties

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).

4.2

Draft Forest Management Plan 2020-2024

The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information s7(2)(b)(ii) and the withholding of which is necessary to prevent the disclosure or use of official information for improper gain or improper advantage s7(2)(j).

3.         That the Independent Financial Advisor be permitted to stay during business with the public excluded.

Carried

 

Moved ( Bain  / Smart )

The meeting concluded at 3.02.pm.

Carried

 

 


Investment and Property Subcommittee                                                                                                                   item: 4.1

26 February 2020

 

TITLE:

Performance of Councils Externally Managed Funds to 31 January 2020

ID:

A1288563

From:

Simon Crabb, Finance Manager

 

Executive summary/Whakarāpopototanga

At this stage of the year the total actual gains generated from our Managed Fund portfolio is $3.3M. The corresponding budget for the full year is $2.9M.

 

The gains generated from the Managed fund portfolio are utilised to fund:

·    council’s general operations (this year’s general funding contribution is budgeted at $2.1M)

·    related investment advisor fees,

·    investment into the Opex Reserve (a source of funds to cover any unanticipated loss in councils funding arising from adverse economic conditions)

·    reinvestment (recapitalisation) back to the capital value of a fund.

·    other projects.

 

A summary of the returns and target objectives for the 7 months ending 31 January 2020 for councils 2 managed funds is presented below, with the supporting detail and fund performance for longer periods contained in Attachment 1. All monthly, quarterly and year to date (YTD) return percentages in this report and its attachment are not annualised.

 

 

 

Recommendation

That the report ‘Performance of Councils Externally Managed Funds to 31 January 2020’ by Simon Crabb, Finance Manager and dated 20 February 2020, be received.

 

Background/Tuhinga

Long Term Investment Fund (LTF)

At 31 January 2020, the LTF has an overall market value of $46.3M, comprising of funds attributable to: Infrastructure Investment of $22.1M; Property Reinvestment of $8.2M; and Community Investment of $16M.

The LTF has performed as follows:

 

 

Short Term Investment Fund (STF)

At 31 January 2020, the STF has an overall market value of $11.1M, comprising of funds attributable to Working capital requirements of $4.6M and Property Reinvestment of $6.5M.

The STF has performed as follows:

 

The values reported in the year to date “Return $” columns above include the actual returns earnt in the month of January 2020 ($887K) as opposed to an estimated gain accrual ($281K) used in Januarys Financial Report presented to council on 18 February 2020).

 

Attachments/Ngā tapirihanga

Attachment 1: EriksensGlobal Monthly Report 31 January 2020  

Authorised by Group Manager

Name:

Dave Tams

Title:

Group Manager, Corporate Excellence

Date:

21 February 2020

 


Investment and Property Subcommittee  ITEM: 4.1

26 February 2020Attachment 1

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Investment and Property Subcommittee                                                                                                                   item: 4.2

26 February 2020

 

TITLE:

Mount Tiger Forest Quarter Two Report (October - December 2019)

ID:

A1284587

From:

Alicia Jurisich, Property Officer

 

Executive summary/Whakarāpopototanga

The purpose of this report is to present an update on Council’s Mount Tiger Forest by way of the attached report from Ian Jenkins of Jenksmax Consulting Limited, Council’s Forestry Consultant.  Mr Jenkins will be present at the meeting to answer any questions.

 

Recommendation

That the report ‘Mount Tiger Forest Quarter Two Report (October - December 2019)’ by Alicia Jurisich, Property Officer and dated 10 February 2020, be received.

 

Background/Tuhinga

As per the Forestry Management Plan, council’s consultant, Jenksmax Consulting Limited, is to report back to Council every quarter providing an update of the Mount Tiger Forest.  The significant matters reported in Quarter Two are as follows:

 

·        No Health and Safety issues have arisen.

·        Silvicultural work commenced and a suitable contractor successfully sourced for Mt Tigers “small one-off job”.

·        Initiatives continue to be undertaken with NRC’s Biosecurity Team to control wild pigs which has resulted in a lower number of hunters illegally trespassing.

·        The 2020-2024 Forest Management Plan (“FMP”) was prepared and a draft presented to the Subcommittee in December 2019.  At the date of this meeting, the final FMP should be approved by Council at the 18 February 2020 Council Meeting.

 

Attachments/Ngā tapirihanga

Attachment 1: Mount Tiger Forest Quarter Two 2019-20 Report  

Authorised by Group Manager

Name:

Phil Heatley

Title:

Strategic Projects Manager

Date:

11 February 2020

 


Investment and Property Subcommittee  ITEM: 4.2

26 February 2020Attachment 1

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Investment and Property Subcommittee                                                                                                                    ITEM: 5.0

26 February 2020

 

TITLE:

Business with the Public Excluded

 

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.

Recommendations

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:

Item No.

Item Issue

Reasons/Grounds

5.1

Confirmation of Confidential Minutes - 16 December 2019

The public conduct of the proceedings would be likely to result in disclosure of information, the withholding of which is necessary to protect information which is subject to an obligation of confidence or which any person has been or could be compelled to provide under the authority of any enactment, where the making available of the information would be likely otherwise to damage the public interest s7(2)(c)(ii).

5.2

Value of Consolidated Whangarei CBD Properties

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).

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.