18 August 2020
Northland
Regional Council Minutes
Meeting held remotely
on Tuesday 18 August 2020,
commencing at 10.30am
Present:
Chairperson, Penny Smart
Councillors:
John Bain
Justin Blaikie
Jack Craw
Colin Kitchen
Amy Macdonald
Marty Robinson
Rick Stolwerk
Joce Yeoman
In Attendance:
Part or Full Meeting
Independent Financial Advisor
Independent Audit & Risk
Advisor
Northland Inc. Limited GM
Investment and Infrastructure
Chief Executive Officer
GM - Environmental Services
GM - Strategy, Governance and
Engagement
GM – Regulatory Services
GM – Corporate Excellence
Finance Manager
Regional Harbourmaster
Financial Accountant
Resource Management –
Strategic Policy Specialist
Eastern Coast Land Manager
Acting Strategy, Policy and
Planning Manager
Economist
Policy Specialist
Governance Support Manager
The Chair declared the meeting open at 10.35am and
proceedings commenced with a karakia by Councillor Macdonald.
Apologies (Ngā
whakapahā) (Item 1.0)
There were no apologies.
Declarations
of Conflicts of Interest (Nga whakapuakanga) (Item 2.0)
It was advised that councillors should make declarations
item-by-item as the meeting progressed.
Secretarial Note: The Supplementary Confidential Report
pertaining to Item 9.3 was noted.
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Health and Safety Report (Item 3.0)
ID:
A1348122
Report from Kelcie Mills, Health and Safety Advisor
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Moved
(Kitchen/Stolwerk)
That the report ‘Health
and Safety Report’ by Kelcie Mills, Health and Safety Advisor and dated
4 August 2020, be received.
Carried
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Confirmation of Minutes - 21 July 2020 and
29 July 2020 (Item 4.1)
ID:
A1347107
Report from Chris Taylor, Governance Support Manager
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Moved (Craw/Stolwerk)
That the minutes of the council
meeting held on 21 July 2020, and the extraordinary council meeting held on
29 July 2020, be confirmed as a true and correct record.
Carried
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Working Party Updates
and Chairpersons' Briefings (Item 4.2)
ID:
A1347780
Report from Sally Bowron, Strategy, Governance and
Engagement Team Admin/PA
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Moved (Robinson/Macdonald)
That the report ‘Working
Party Updates and Chairpersons' Briefings’ be received.
Carried
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Secretarial Note: The Te Taitokerau Māori
and Council Working Party to review its representatives on council’s
working parties in due course.
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Council River Working
Group and Council Catchment Group Updates
(Item 4.3)
ID:
A1339431
Report from Leah Porter, PA/Administrator Environmental
Services
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Moved (Yeoman/Blaikie)
That the report ‘Council
River Working Group and Council Catchment Group Updates’ be received.
Carried
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Externally Managed Investment Funds: 2019/20
Performance and Proposed Allocation of Gains
(Item 5.1)
ID:
A1347497
Report from Simon Crabb, Finance Manager
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Moved (Stolwerk/Bain)
1. That
the report ‘Externally Managed Investment Funds: 2019/20 Performance
and Proposed Allocation of Gains’ by Simon Crabb, Finance Manager and
dated 2 August 2020, be received.
2. That
$368,587 of the Long-Term Investment Fund gains earnt
in 2019/20 is reinvested and attributed to the Community Investment Fund
Reserve, and $72,148 of the Long-Term Investment Fund gains earned in 2019/20
is allocated to the Investment and Growth Reserve.
3. That NO Long-Term Investment Fund gains
attributable to the Property Reinvestment Fund Reserve are reinvested in
2019/20.
4. That NO
Long-Term Investment Fund gains attributable to the Infrastructure Investment
Fund Reserve are reinvested in 2019/20.
5. That $167,777 of
depreciation funding is invested into the Long-Term Fund and attributed to
the Infrastructure Investment Fund Reserve.
6. That $53,403 is
withdrawn from the Long-Term Investment Fund to reimburse council’s
working capital for the 2019/20 investment management fees.
Carried
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Secretarial
Note:
·
The Independent Financial Advisor provided commentary on the
current ‘rapidly moving [financial] environment’. Key
elements included:
-
Council had responded well to the downturn in equity markets
resulting in a ‘significant reversal’ in gains on council’s
managed funds.
-
The organisation needed to remain ‘agile, lean and
fast’ given that volatility was becoming the ‘new normal’.
-
It was suggested that council should take a deeper strategic
level look at its systems/processes to ensure it was prepared for
‘ongoing crises’. As part of this, council should develop a
strategy regarding the appropriate balance between building up an
‘income generating balance sheet’ and investing in ‘the
urgent needs of the community’.
·
The Independent Audit and Risk Advisor also provided
commentary, focussing on:
-
The recent drought and COVID-19 had resulted in
unprecedented circumstances.
-
The current market volatility highlighted the need for
‘due consideration in reducing risk and exercising caution’, and
the need for council to prepare itself for ‘the long game’.
-
in such times the community would ‘increasingly look
to council to provide regional leadership’.
·
Appreciation was extended to the finance team, the
independent advisors and council’s subcommittees overseeing its
finances, for their guidance through such challenging times.
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Allocation of 2019/20
Surplus to the Opex Reserve and COVID-19 Reinstatement Reserve (Item 5.2)
ID:
A1349610
Report from Simon Crabb, Finance Manager
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Moved (Craw/Stolwerk)
1. That
the report ‘Allocation of 2019/20 Surplus to the Opex Reserve and
COVID-19 Reinstatement Reserve’ by Simon Crabb, Finance Manager and
dated 7 August 2020, be received.
2. That
$467,695 of the 2019/20 operating surplus is allocated
to the Opex Reserve, and funding representing the Opex
Reserve is invested into NZ registered bank fixed rate term deposits with
rolling maturity profiles ranging from 30 to 180 days.
3. That
a COVID-19 Reinstatement Reserve is established, and $1.7M
of the 2019/20 operating surplus is allocated to this Reserve, and funding representing the COVID-19 Reinstatement Reserve is invested into NZ registered bank fixed rate term deposits with
rolling maturity profiles ranging from 30 to 180 days.
4. That budgets of $30,000 for Tangata whenua capability and
capacity, $100,000 for Modelling highly allocated aquifers, and $86,385 for
Enviroschools staff and seminars are reinstated in 2020/21 and funded from
the COVID-19 Reinstatement Reserve.
5. That the CEO is delegated the authority to reinstate any work
programmes presented in Attachment One when appropriate, and funding
becomes available, from the COVID-19 Reinstatement Reserve.
6. That budgets of $58,000 for Bay of Islands harbour modelling and
$100,617 for committed obligations to the Regional Council collaboration are
introduced into 2020/21 with corresponding funding transferred from the
COVID-19 Reinstatement Reserve.
7. That
any 2020/21 investment income in excess of budget is transferred to the
COVID-19 Reinstatement Reserve, and any balance remaining in the COVID-19
Reinstatement Reserve at 30 June 2021 is transferred back to council’s
general funding, and that the Opex Reserve Policy is updated to reflect that
the target amount of the Opex Reserve includes Investment Management fees.
Carried
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Secretarial Note:
·
A correction was noted to recommendation four that the
budget for Enviroschools was $86,385 (not $100,617 as detailed in the
agenda). There was also a formatting error with regard to
recommendation 7.
·
Due to technical issues the meeting adjourned at 11.40am and
reconvened at 11.50am.
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Request for Approval
to Carry Forward Operational Budget from the 2019/20 Financial Year into the
2020/21 Financial Year (Item 5.3)
ID:
A1348582
Report from Vincent McColl, Financial Accountant and
Simon Crabb, Finance Manager
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Moved (Kitchen/Stolwerk)
1. That
the report ‘Request for Approval to Carry Forward Operational Budget
from the 2019/20 Financial Year into the 2020/21 Financial Year’ by Vincent
McColl, Financial Accountant and Simon Crabb, Finance Manager and dated 5
August 2020, be received.
2. That
council approves the operational expenditure carry forwards from the 2019/20
financial year into the 2020/21 financial year of:
a. $51,564
for the lakes survey;
b. $24,241
for the wetland survey;
c. $32,712
for eradication plants;
d. $37,300
for roadside weeds;
e. $53,200
for NIWA water quality modelling;
f. $7,225
for water quality mitigation measures;
g. $18,813
for Iwi environment management plans;
h. $19,000
for a Hokianga Harbour catchment investigation; and
i. $11,500
for a Northland drought river ecosystem health impact report.
Carried
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Request for Approval
to Carry Forward Capital Expenditure Budget from the 2019/20 Financial Year
into the 2020/21 Financial Year (Item 5.4)
ID:
A1348437
Report from Vincent McColl, Financial Accountant
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Moved (Stolwerk/Blaikie)
1. That
the report ‘Request for Approval to Carry Forward Capital Expenditure
Budget from the 2019/20 Financial Year into the 2020/21 Financial Year’
by Vincent McColl, Financial Accountant and dated 4 August 2020, be received.
2. That
council approves the carry forward of $234,624 capital expenditure budget
from the 2019/20 financial year into the 2020/21 financial year.
Carried
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Special Reserves at
30 June 2020 (Item 5.5)
ID:
A1348147
Report from Vincent McColl, Financial Accountant
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Moved (Bain/Stolwerk)
That the report ‘Special
Reserves at 30 June 2020’ by Vincent McColl, Financial Accountant and
dated 4 August 2020, be received.
Carried
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Secretarial Note: A correction was noted to the
Executive Summary of the report; that at 30 June 2020, council had $39.9M
(not $52.5M as detailed in the agenda) of special reserves set aside to cover
expenditure on specific projects and work programmes.
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Regional Rates
Collection - 2019/20 (Item 5.6)
ID:
A1347485
Report from Simon Crabb, Finance Manager
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Moved (Macdonald/Stolwerk)
That the report ‘Regional
Rates Collection - 2019/20’ by Simon Crabb, Finance Manager and dated 1
August 2020, be received.
Carried
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Draft Financial
Result to 30 June 2020 (Item 5.7)
ID:
A1346538
Report from Vincent McColl, Financial Accountant
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Moved (Bain/Stolwerk)
That the report ‘Draft
Financial Result to 30 June 2020’ by Vincent McColl, Financial Accountant
and dated 29 July 2020, be received.
Carried
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Secretarial Note: A correction was noted to the table
included as Attachment One to the report; with the column titles to read 30
June 2020 (not 30 June 1919 as detailed in the agenda).
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Joint Climate Change Adaptation Committee (Item 6.1)
ID:
A1336874
Report from Justin Murfitt, Strategic Policy Specialist
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Moved (Macdonald/Kitchen)
1.
That the report ‘Joint Climate Change Adaptation
Committee’ by Justin Murfitt, Strategic Policy Specialist and dated 7
July 2020, be received.
Carried
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It was further moved
(Stolwerk/Yeoman)
2.
That council authorises the establishment of a Joint Climate Change
Adaptation Committee with Far North District Council, Whangarei District
Council and Kaipara District Council, pursuant to clause 30(1)(b) and 30A of
Schedule 7 of the Local Government Act 2002.
Carried
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It was further moved
(Macdonald/Robinson)
3.
That council nominates two elected members to the joint committee one
as primary member being Councillor Amy McDonald and Councillor Craw to act as
back up.
Carried
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It was further moved
(Macdonald/Blaikie)
4.
That council endorse the two nominations to the committee by Te
Taitokerau Māori and Council Working Party, being Toa Faneva as primary
member and Thomas Hohaia as alternate to act as back up, on the basis that
they have skills and knowledge that will assist the committee.
Carried
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Secretarial Note:
·
Two corrections were noted to the draft terms of reference
as follows:
-
The title to read Joint Climate Change Adaptation Committee
Terms of Reference 10 August 2020 (not 10 February 2020 as detailed in
the agenda); and
-
The remuneration section to be amended with regard to
non-elected members as follows:
Remuneration
Remuneration and / or
reimbursement for costs incurred by council members is the responsibility of
each council.
Respective iwi / hapū
representatives will be remunerated and reimbursed by the nominating council
in accordance with the non-elected members’ remuneration policy of
that council (not the Northland Regional Council Non-Elected Members’
Remuneration Policy as detailed in the agenda).
·
The Joint Climate Change Adaptation Committee to consider
whether it be appropriate to include climate change mitigation and provide a
recommendation back to the councils if necessary.
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It was further moved
(Robinson/Blaikie)
5.
That council adopt the Terms of Reference for the Joint Climate Change
Adaptation Committee (with the amendments identified at the meeting),
delegates those responsibilities and duties to the Joint Climate Change
Adaptation Committee and acknowledges that this fulfils the requirements of
30A(1).
Carried
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Environmental Fund
Changes (Item 6.2)
ID:
A1338269
Report from Duncan Kervell, Land Manager
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Moved (Stolwerk/Macdonald)
1. That
the report ‘Environmental Fund Changes’ by Duncan Kervell, Land
Manager and dated 9 July 2020, be received.
2. That
for 2020/21 council approves an over-allocation of the general
Land/Biodiversity component of the Environment Fund (not including
commitments to Kaipara Moana, IKHMG and Coast Care) budget ($672K) by up to
20% ($134.4 K).
3. That
council approves other changes to Environment Fund allocation:
a. The
funding cap for projects is increased to $40,000 through delegated authority
approval;
b. That
coastal marine area fencing is no longer funded; and
c. That
a 3m buffer for all riparian fencing is strictly enforced with no payment for
non-compliant fencing.
Carried
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Changing Focus of the
Land Management Team (Item 6.3)
ID:
A1348914
Report from Duncan Kervell, Land Manager
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Moved (Macdonald/Blaikie)
1. That
the report ‘Changing Focus of the Land Management Team’ by Duncan
Kervell, Land Manager and dated 5 August 2020, be received.
2. That
council supports the adaptive approach and change in focus for the Land
Management Team and notes the negative impact on council’s ability to
achieve its Long Term Plan 2018–2028 key performance indicator relating
to the area of land under farm environment plans.
Carried
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Investment and Growth
Reserve: Project Development Funding - COVID-19 Economic Recovery Plan for
Northland (Item 6.4)
ID:
A1337509
Report from Darryl Jones, Economist
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Moved (Kitchen/Bain)
1. That
the report ‘Investment and Growth Reserve: Project Development Funding
- COVID-19 Economic Recovery Plan for Northland’ by Darryl Jones,
Economist and dated 8 July 2020, be received.
2. That
council agree to allocate $25,000 (plus GST if any) from the Project
Development funding category of the Investment and Growth Reserve to
Northland Inc. Limited to support the development of a COVID-19 economic
recovery plan for Northland.
3. That
council records that the allocation of this funding is inconsistent with the
criteria and procedures for the allocation of funding from the Investment and
Growth Reserve but that the exceptional nature of the COVID-19 crisis
requires a one-off response.
4. That
$25,000 be transferred from the Community Investment Fund into the Investment
and Growth Reserve to fund this allocation.
5. That
the allocation be provided to Northland Inc. once the Chief Executive Officer
is satisfied that the funding will be used for the development of a COVID-19
economic recovery plan rather than a regional economic development
strategy.
Carried
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Tāngata Whenua
Water Advisory Group (Item 6.5)
ID:
A1347155
Report from Ben Lee, GM - Strategy, Governance and
Engagement
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Moved (Macdonald/Yeoman)
1. That
the report ‘Tāngata Whenua Water Advisory Group’ by Ben Lee,
GM - Strategy, Governance and Engagement and dated 31 July 2020, be received.
2. That
a “Tāngata Whenua Water Advisory Group” be formed to provide
tāngata whenua-led analysis, feedback and advice on the development of
the plan change to give effect to the water quality planning requirements of
the National Policy Statement for Freshwater Management, as outlined in the
attached Māori engagement approach: Water quality plan change.
3. That
the following be appointed as the selection panel for considering and
appointing the members of the Tāngata Whenua Water Advisory Group:
a. Mira
Norris (tāngata whenua member of Te Taitokerau Māori and Council
Working Party);
b. Juliane
Chetham, or Janelle Beazley if Juliane Chetham is unavailable (tāngata
whenua members of Te Taitokerau Māori and Council Working Party);
c. Councillor
Blaikie; and
d. Councillor
Yeoman.
4. That Te
Taitokerau Māori and Council Working Party Māori members Nora
Rameka, Rowan Tautari and Alan Riwaka (and Antony Thompson as an alternative
to Alan Riwaka) be appointed to the Tāngata Whenua Water Advisory Group
and be invited to attend all council workshops on the content of the plan
change that gives effect to the water quality planning requirements of the
National Policy Statement for Freshwater Management.
Carried
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Secretarial Note: The associated communications
plan to be provided to the September 2020 meeting of Te Taitokerau Māori
and Council Advisory Working Party.
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Delegation to Make
Expert Consenting Panel Nominations Under the COVID-19 Recovery (Fast-track
Consenting) Act 2020 (Item 6.6)
ID:
A1347472
Report from Colin Dall, Group Manager - Regulatory
Services
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Moved (Yeoman/Bain)
1. That
the report ‘Delegation to Make Expert Consenting Panel Nominations
Under the COVID-19 Recovery (Fast-track Consenting) Act 2020’ by Colin
Dall, Group Manager - Regulatory Services and dated 31 July 2020, be
received.
2. That
pursuant to Schedule 7 clause 32(1) of the Local Government Act 2002, the
council delegate to the Chief Executive Officer and Group Manager –
Regulatory Services the power to nominate
a person or persons to be a member of an expert consenting panel appointed
under Schedule 5 of the COVID-19 Recovery (Fast-track Consenting) Act 2020.
Carried
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Marsden Maritime
Holdings Interview Panel (Item 6.7)
ID:
A1351304
Report from Jessica Matson, Human Resources Advisor
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Moved (Craw/Kitchen)
1. That
the report ‘Marsden Maritime Holdings Interview Panel’ by Jessica
Matson, Human Resources Advisor and dated 12 August 2020, be received.
2. That
council nominates Councillor Smart, Councillor Bain and Councillor Stolwerk
for the interview panel for the Marsden Maritime Holdings Director
appointments.
Carried
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Chair's Report to Council (Item 7.1)
ID:
A1346558
Report from Penny Smart, Chair
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Moved (Smart/Yeoman)
That the report ‘Chair's
Report to Council’ by Penny Smart, Chair and dated 3 August 2020, be
received.
Carried
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Chief
Executive’s Report to Council (Item 7.2)
ID:
A1346416
Report from Malcolm Nicolson, Chief Executive Officer
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Moved (Stolwerk/Macdonald)
That the report ‘Chief
Executive’s Report to Council’ by Malcolm Nicolson, Chief Executive
Officer and dated 31 July 2020, be received.
Carried
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Secretarial Note:
·
The Chief Executive highlighted that the funding secured
from central government to support activities also presented a financial risk;
given it would have a significant impact on council’s operations when
it ceased.
·
Appreciation was extended to the Biodiversity Team,
particularly for their efforts in the FIF Dune Lakes Project and broader
lakes programme.
·
Appreciation was also extended to the Chief Executive Officer
and the team for its response to the recent flooding.
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Code of Conduct
Complaint (Item 7.3)
ID:
A1348224
Report from Malcolm Nicolson, Chief Executive Officer
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Moved (Bain/Macdonald)
That the report ‘Code of
Conduct Complaint’ by Malcolm Nicolson, Chief Executive Officer and
dated 4 August 2020, be received and councillors take cognisance of its
recommendation.
Carried
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Reporting on Long
Term Plan 2018-2028 Performance Measures for the Year Ended 30 June 2020 (Item 7.4)
ID: A1347486
Report from Robyn Broadhurst, Policy Specialist
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Moved (Yeoman/Macdonald)
That the report ‘Reporting
on Long Term Plan 2018-2028 Performance Measures for the Year Ended 30 June
2020’ by Robyn Broadhurst, Policy Specialist and dated 1 August 2020, be
received.
Carried
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Legislative
Compliance for the Period 1 January - 30 June 2020 (Item 7.5)
ID:
A1347548
Report from Kyla Carlier, Acting Strategic Policy and
Planning Manager
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Moved (Bain/Stolwerk)
That the report ‘Legislative
Compliance for the Period 1 January - 30 June 2020’ by Kyla Carlier,
Acting Strategic Policy and Planning Manager and dated 3 August 2020, be
received.
Carried
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Receipt of Committee Minutes (Item 8.0)
ID:
A1348386
Report from Chris Taylor, Governance Support Manager
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Moved (Stolwerk/Bain)
That the unconfirmed minutes of
the:
· Regional
Transport Committee – 10 June 2020; and
· Civil
Defence and Emergency Management Group – 17 June 2020
be received.
Carried
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Business with Public
Excluded (Item 9.0)
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Moved (Bain/Macdonald)
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.
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Item Issue
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Reasons/Grounds
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9.1
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Confirmation
of Confidential Minutes - 21 July 2020
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The public
conduct of the proceedings would be likely to result in disclosure of
information, as stated in the open section of the meeting.
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9.2
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Human
Resources Report
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The public
conduct of the proceedings would be likely to result in disclosure of information,
the withholding of which is necessary to protect the privacy of natural
persons, including that of deceased natural persons s7(2)(a).
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9.3 and
Supplementary 9.3
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Shovel
Ready Project for Public Consultation
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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 on, without prejudice or disadvantage, negotiations (including
commercial and industrial negotiations) s7(2)(i).
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3.
That the Independent Financial Advisors be permitted to stay during
business with the public excluded.
Carried
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Conclusion
The meeting concluded at 1.22pm.