Investment and
Property Subcommittee
27 May 2020
Investment
and Property Subcommittee Minutes
Meeting held in the Council Chamber
36 Water Street, Whangārei
on Wednesday 27 May 2020, commencing
at 1.00pm
Present:
Chair, Councillor Rick Stolwerk
Councillor John Bain
Councillor Colin Kitchen
Ex-Officio Councillor Penny
Smart
In Attendance:
Full Meeting
Chief Executive Officer - Malcolm
Nicolson
GM Corporate Excellence - Dave Tams
Strategic Projects Manager –
Phil Heatley
Property Officer – Nicole
Inger
Finance Manager – Simon Crabb
Independent Audit & Risk Member
-Danny Tuato’o
Independent Financial Advisor
Jonathan Eriksen
Independent Financial Advisor Geoff
Copstick
PA Corporate Excellence –
Judy Graham
Business Support – Robyn
Valentine
Part Meeting
Jalissa Karena-Lange
Ian Jenkins
The Chair declared the meeting open at 1.03pm.
Apologies (Ngā whakapahā) (Item 1.0)
Moved (Smart / Bain)
That the apologies from
Councillor Blaikie 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.
Confirmation of Minutes - 26 February 2020 (Item 3.1)
ID:
A1316638
Report from Judith Graham, Corporate Excellence P/A
|
Moved (Smart / Bain)
That the minutes of the
Investment & Property Subcommittee meeting held on 26 February 2020 be
confirmed as a true and correct record.
Carried
|
Mount Tiger Forest Quarterly Report January
- March 2020 (Item 4.1)
ID:
A1315134
Report from Nicole Inger, Property Officer
|
Moved (Bain /
Kitchen)
That the report ‘Mount
Tiger Forest Quarterly Report January - March 2020’ by Nicole Inger, Property
Officer and dated 12 May 2020, be received.
Carried
Ian Jenkins from Jenksmax
consulting gave an update on the Mount Tiger forest and advised that no health
and safety matters have arisen in the January to March quarter. Operations
running on target and under budget with six weeks to go to the end of
financial year.
·
Two programmes underway – 1. conifer removal programme
underway in Awanui and Kaiwi lakes – 2. Working with arborists to
increase labour force to take on more of that work.
·
Change the frequency of the Mount Tiger quarterly report to six
monthly June and December supported and agreed by the Investment &
Property subcommittee. Issues will be bought up as they occur within the 6
month reporting period.
|
Responsible
Investment Report - as at 31 December 2019
(Item 4.2)
ID:
A1314443
Report from Simon Crabb, Finance Manager
|
Moved (Bain
/Kitchen)
1. That
the report ‘Responsible Investment Report - as at 31 December
2019’ by Simon Crabb, Finance Manager and dated 11 May 2020, be
received.
Carried
Secretarial
Note: 1.17pm Jonathan Eriksen from EriksenGlobal joined the meeting.
Jonathan Eriksen addressed the responsible investment report. The report is
on investments lined up with socially responsible ideals/goals.
·
Industry norm is extraction/processing fossil fuels that are
highest -2% is conceded relatively low but some try to get lower if possible,
until recently it was between 3-4% globally.
·
Tables on page 3 & 4 in the responsible investment report show
percentages, Jonathan Eriksen to add dollar value on the next report that is
produced twice a year.
·
Renewable energy can be profitable depending on costs of fossil
fuel.
·
Sustainable forestry depends on supply and demand, China
opening up again is fuelling the demand. Council to understand if renewable
energy is profitable.
·
Councillors need to be able to say we invest ethically.
|
Performance of
Councils Externally Managed Funds to 30 April 2020 (Item 4.3)
ID:
A1317688
Report from Simon Crabb, Finance Manager
|
Moved (Bain /Smart)
That the report ‘Performance
of Councils Externally Managed Funds to 30 April 2020’ by Simon Crabb,
Finance Manager and dated 19 May 2020, be received.
Carried
Jonathan Eriksen gave an update
on Northland Regional Council externally managed investment funds. April
showed a significant improvement. Government response including spending on welfare/medical
etc. assisted in the improvement to the economy.
·
Percentages in red – short term performances for one
month and three month figures – February /March stock markets
fell further/faster than before; market bonds gave negative returns in March.
More positive figures coming in since March
·
forecast to year end? Currently looking good but
can’t guarantee returns – the Australian market is looking good
as Chinese are buying iron ore again.
·
Short term funds are out-performing long term funds; Short term
funds are well positioned – long term funds have a higher risk as we expect
higher returns. Managers of funds are performing very well but won’t
know until later in the year what the final performance at year end will be.
·
New Zealand stock market is very well sort after –
KiwiSaver Managers investing sizable sums in Australasian markets, currently
there are more buyers than sellers in New Zealand market.
|
Business with Public
Excluded (Item 5.0) 1.48pm
Moved (Kitchen /Smart)
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 - 26 February 2020
|
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
|
Kensington
Crossing Redevelopment Update
|
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).
|
5.3
|
Leaseholder's
Notice of Exit
|
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).
|
5.4
|
Proposed
Sale of a Whangarei CBD Property
|
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).
|
5.5
|
Request
for Nil or Low Rent
|
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).
|
5.6
|
Tenant
Request for Rent Relief
|
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), 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).
|
5.7
|
Land and
Lease Holders' Easement and Covenant Requests
|
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 enable council to carry out, without prejudice or
disadvantage, commercial activities s7(2)(h).
|
5.8
|
Kaipara
Service Centre Tenancy
|
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).
|
5.9
|
Proceeds
From Land Sale
|
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.
Carried
|
Conclusion
The meeting concluded at 3.29pm.