Minutes of Council Meeting - Tuesday, 17 August 2021

Council Meeting

17 August 2021

Northland Regional Council Minutes

Meeting held in the Council Chamber

36 Water Street, Whangārei

on Tuesday 17 August 2021, commencing at 10.30am

Tuhinga/Present:

Chairperson, Penny Smart

Councillors:

Justin Blaikie

Jack Craw

Colin Kitchen (via audio-visual link)

Amy Macdonald

Marty Robinson

Rick Stolwerk

Joce Yeoman

I Tae Mai/In Attendance:

Full Meeting

Independent Audit & Risk Advisor

Chief Executive Officer

Governance Support Manager

Part Meeting

GM - Corporate Excellence

GM – Customer Services/Community Resilience

GM – Strategy, Governance and Engagement

GM – Environmental Services

GM - Regulatory Services

Acting Strategy, Policy and Planning Manager

Strategic Projects and Facilities Manager

Finance Manager

Financial Accountant

Management Accountant

Policy Specialist

EA to Customer Services/Community Resilience

The Chair declared the meeting open at 10.30am and proceedings commenced with the Tauāki a roto by full council.

Ngā whakapahā/Apologies (Item 1.0)

Moved (Robinson/Macdonald)

That the apologies from Councillor Archer and the Independent Audit and Risk Advisor for non-attendance be received.

Carried

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

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

Confirmation of Minutes - 28 July 2021 (Item 5.1)

Report from Chris Taylor, Governance Support Manager

Moved (Stolwerk/Blaikie)

That the minutes of the council meeting held on 28 July 2021 be confirmed as a true and correct record.

Carried

Receipt of Action Sheet (Item 5.2)

Report from Chris Taylor, Governance Support Manager

Moved (Robinson/Yeoman)

That the action sheet be received.

Carried

Externally Managed Funds: 2020/21 Performance and Proposed Allocation of Gains (Item 6.1)

Report from Simon Crabb, Finance Manager

Moved (Stolwerk/Yeoman)

1. That the report ‘Externally Managed Funds: 2020/21 Performance and Proposed Allocation of Gains ’ by Simon Crabb, Finance Manager and dated 13 July 2021, be received.

2. That $596,453 of Short-Term Investment Fund gains are transferred to the Opex Reserve and invested in NZ registered bank fixed rate term deposits with rolling maturity profiles ranging from 30 to 180 days.

3. That $2,054,194 of the Long-Term Investment Fund gains attributable to the Community Investment Fund Reserve are reinvested, and that the Infrastructure Facilities Reserve closing balance (at 30 June 2021) of $55,203 is transferred to the Community Investment Fund Reserve.

4. That $1,005,248 of Long-Term Investment Fund gains and $1,298,506 of Short-Term Investment Fund gains, both attributable to the Property Reinvestment Fund Reserve, are reinvested into their respective investment funds.

5. That $648,915 of Long-Term Investment Fund gains attributable to the Infrastructure Investment Fund Reserve are transferred to the Equalisation Reserve and invested in the Short-Term Investment Fund.

6. That $350,000 of Long-Term Investment Fund gains attributable to the Infrastructure Investment Fund Reserve are withdrawn from the Long-Term Investment Fund in lieu of using the Equalisation Fund and the capital base of the Infrastructure Investment Fund Reserve.

7. That $1,396,084 of targeted river scheme rates collected in 2020/21 for future debt repayment, and $205,066 of depreciation funding collected in 2020/21 are transferred to the Infrastructure Investment Fund Reserve, and invested into the Long-Term Investment Fund

8. That in 2021/22, $1,646,084 representing the total debt repayments collected, and $579,436 representing the total depreciation funding collected, are transferred from the Infrastructure Investment Fund Reserve into a newly established “Debt Repayment and Depreciation Funding” Reserve.

Carried

Secretarial Note:

· Assurance was provided that the proposed allocation of gains ensured there was a sufficient ‘buffer’ for council against one off OPEX costs or those that occurred on a triennial basis.

· Appreciation was extended to the finance team and council’s Investment Consultant for the report to council.

Request for Approval to Carry Forward Operational Budget from the 2020/21 Financial Year into the 2021/22 Financial Year (Item 6.2)

Report from Vincent McColl, Financial Accountant

Moved (Stolwerk/Macdonald)

1. That the report ‘Request for Approval to Carry Forward Operational Budget from the 2020/21 Financial Year into the 2021/22 Financial Year’ by Vincent McColl, Financial Accountant and dated 2 August 2021, be received.

2. That council approves the operational expenditure carry forwards from the 2020/21 financial year into the 2021/22 financial year of:

a. $9,015 for the electronic swipe card system for Total Mobility (Ridewise);

b. $12,000 for the IHEMP Projects; and

c. $25,000 for the report on feasibility of NRC collecting its own rates.

Carried

Secretarial Note: The Chief Executive Officer was congratulated for the minimal OPEX carry forwards given the challenges faced during the past financial year.

Request for Approval to Carry Forward Capital Expenditure Budget from the 2020/21 Financial Year into the 2021/22 Financial Year (Item 6.3)

Report from Vincent McColl, Financial Accountant

Moved (Stolwerk/Craw)

1. That the report ‘Request for Approval to Carry Forward Capital Expenditure Budget from the 2020/21 Financial Year into the 2021/22 Financial Year’ by Vincent McColl, Financial Accountant and dated 2 August 2021, be received.

2. That council approves the carry forward of $337,593 capital expenditure budget from the 2020/21 financial year into the 2021/22 financial year.

Carried

Secretarial: Identical sentiments were made as per Item 6.2.

Draft Financial Result to 30 June 2021 (Item 6.4)

Report from Vincent McColl, Financial Accountant

Moved (Stolwerk/Robinson)

That the report ‘Draft Financial Result to 30 June 2021’ by Vincent McColl, Financial Accountant and dated 3 August 2021, be received.

Carried

Secretarial Note: Consideration would need to be given to bus fare revenue and the public subsidisation of the bus services at such time Waka Kotahi confirmed its funding arrangements through the National Land Transport Programme.

Special Reserves at 30 June 2021 (Item 6.5)

Report from Vincent McColl, Financial Accountant

Moved (Stolwerk/Macdonald)

That the report ‘Special Reserves at 30 June 2021’ by Vincent McColl, Financial Accountant and dated 4 August 2021, be received.

Carried

Regional Rates Collection 2020/21 (Item 6.6)

Report from Simon Crabb, Finance Manager

Moved (Stolwerk/Macdonald)

That the report ‘Regional Rates Collection 2020/21’ by Simon Crabb, Finance Manager and dated 13 July 2021, be received.

Carried

Review of Non-Elected Members' Allowance Policy (Item 6.7)

Report from Ben Lee, GM - Strategy, Governance and Engagement

Moved (Yeoman/Robinson)

1. That the report ‘Review of Non-Elected Members' Allowance Policy’ by Ben Lee, GM - Strategy, Governance and Engagement and dated 5 July 2021, be received.

2. That council adopt the changes to the Non-Elected Members’ Allowance Policy as set out in Attachment 1 (pertaining to Item 6.7 of the 17 August 2021 council agenda).

Carried

Secretarial Note: A correction was applied to the purpose of the policy following the meeting due to an administrative error whereby working parties had been incorrectly deleted (instead of working groups).

Environmental Fund Over Allocation (Item 7.1)

Report from Ruben Wylie, Land Management Programme Manager

Moved (Craw/Macdonald)

1. That the report ‘Environmental Fund Over Allocation’ by Ruben Wylie, Land Management Programme Manager and dated 2 August 2021, be received.

2. That for 2021/22 council approves an over-allocation of the general Land/Biodiversity component of the Environment Fund (not including commitments to the nursery) budget ($601,114) by up to 20% ($120,222).

Carried

Freshwater farm plan regulations and Stock exclusion regulations: Proposed changes to the low slope map – Discussion Documents (Item 7.2)

Report from Ruben Wylie, Land Management Programme Manager

Moved (Yeoman/Macdonald)

1. That the report ‘Freshwater farm plan regulations and Stock exclusion regulations: Proposed changes to the low slope map – Discussion Documents’ by Ruben Wylie, Land Management Programme Manager and dated 3 August 2021, be received.

2. That council approve the lodgement of a submission on the Freshwater farm plan regulations and Stock exclusion regulations: Proposed changes to the low slope map, in line with the key submission points outlined in this report.

3. That council delegates authority to the Chief Executive Officer to approve the final content and lodgement of a submission on the Freshwater farm plan regulations and Stock exclusion regulations: Proposed changes to the low slope map on behalf of council.

Carried

Secretarial Note: Confirmation was provided that the submission would be circulated to councillors prior to the Chief Executive Officer approving and lodging the final version.

Emergency Services Fund Allocations 2021-2024 (Item 7.3)

Report from Tony Phipps, Group Manager - Customer Services - Community Resilience

Moved (Macdonald/Craw)

1. That the report ‘Emergency Services Fund Allocations 2021-2024’ by Tony Phipps, Group Manager - Customer Services - Community Resilience and dated 3 August 2021, be received.

2. That the council approves the distribution of the Emergency Services Fund for the next three financial years 2021-2024 as follows:

o Northland Emergency Services Trust - $535,000 annually

o Far North & Northland Land Search and Rescue - $30,000 jointly annually

o Far North Radio and Sea Rescue - $9,000 annually

o Coastguard Northern Region - $84,000 annually

o St John Northern Region - $90,000 annually

o Surf Life Saving Northern Region - $224,000 annually.

Carried

(Councillor Stolwerk abstained from voting)

Adoption of the Investment Policy and Liability Management Policy (Item 7.4)

Report from Casey Mitchell, Management Accountant

Moved (Yeoman/Stolwerk)

1. That the report ‘Adoption of the Investment Policy and Liability Management Policy’ by Casey Mitchell, Management Accountant and dated 3 August 2021, be received.

2. That in accordance with the requirements of section 102, and pursuant to sections 104 and 105 of the Local Government Act 2002, the council adopts the following policies:

a) Liability Management Policy; and

b) Investment Policy.

Carried

Secretarial Note:

· Attention was drawn to the borrowing and interest exposure limits as detailed in the Liability Management Policy which were effectively technical caps as advised by council’s treasury management advisor. In reality they were unrealistic to where council was operating.

· Clarification was provided that the Investment Policy (which was a statutory document) gave effect to council’s Statement of Investment Policy and Objectives (SIPO) because in practise the latter was a living document and all changes to it must be approved by full council.

Health and Safety Report (Item 8.1)

Report from Kelcie Mills, Health and Safety Advisor

Moved (Macdonald/Robinson)

That the report ‘Health and Safety Report’ by Kelcie Mills, Health and Safety Advisor and dated 3 August 2021, be received.

Carried

Secretarial Note: Staff undertook to follow up the need for all new workers to be health and safety inducted within an acceptable timeframe.

Chair's Report to Council (Item 8.2)

Report from Penny Smart, Chair

Moved (Smart/Macdonald)

That the report ‘Chair's Report to Council’ by Penny Smart, Chair and dated 2 August 2021, be received.

Carried

Chief Executive’s Report to Council (Item 8.3)

Report from Malcolm Nicolson, Chief Executive Officer

Moved (Blaikie/Robinson)

That the report ‘Chief Executive’s Report to Council’ by Malcolm Nicolson, Chief Executive Officer and dated 31 July 2021, be received.

Carried

Secretarial Note: Staff undertook to confirm the scope and also the degree in which climate change was factored into ‘Water Projects in Northland’ being led by Aqua Intel Aotearoa.

Reporting on Long Term Plan 2018-2028 Performance Measures for the year ended 30 June 2021 (Item 8.4)

Report from Robyn Broadhurst, Policy Specialist

Moved (Stolwerk/Yeoman)

That the report ‘Reporting on Long Term Plan 2018-2028 Performance Measures for the year ended 30 June 2021’ by Robyn Broadhurst, Policy Specialist and dated 27 July 2021, be received.

Carried

Secretarial Note:

· There were two corrections to the report:

1. The number of subsidised poplar poles provided for erosion-prone land by the Flyger Road nursery was 5,750.

2. The number of kilometres of waterway margins protected to reduce sediment, nutrient run-off and general contamination of water funded by the Environment Fund was 157kmm (not 147km as reported).

· While there were a number of targets not achieved it was acknowledged that it had been a very challenging year.

Legislative compliance for the period 1 January to 30 June 2021 (Item 8.5)

Report from Kyla Carlier, Acting Strategy Policy and Planning Manager

Moved (Yeoman/Macdonald)

That the report ‘Legislative compliance for the period 1 January to 30 June 2021’ by Kyla Carlier, Acting Strategy Policy and Planning Manager and dated 30 July 2021, be received.

Carried

Secretarial Note: It was advised that details regarding the ‘condensed’ review of the Regional Policy Statement would be brought to council in due course.

Receipt of Committee Minutes (Item 9.1)

Report from Chris Taylor, Governance Support Manager

Moved (Yeoman/Macdonald)

That the unconfirmed minutes of the:

· Kaipara Moana Remediation Joint Committee - 22 July 2021; and

· Joint Regional Economic Development Committee – 30 July 2021

be received.

Carried

Secretarial Note:

· Councillors Macdonald, Smart and Yeoman were acknowledged for their contribution and commitment to the Kaipara Moana Remediation Joint Committee.

· Appreciation was extended to the staff that supported the inaugural meeting of the Joint Regional Economic Development meeting.

Kaupapa ā Roto/Business with Public Excluded (Item 10.0)

Moved (Smart/Stolwerk)

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
10.1	Confirmation of Minutes - Confidential Council Meeting Minutes 28 July 2021	The public conduct of the proceedings would be likely to result in disclosure of information, as stated in the open section of the meeting.
10.2	Human Resources Report	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).
10.3	Nomination of Directors to Marsden Maritime Holdings Limited	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).
10.4	Enterprise System for Approval to Execute Contract	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 on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations) s7(2)(i).
10.5	NIWA Kingfish RAS Project	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).
10.6	Introduction of Two New Fund Managers into the Long-Term Investment Fund	The public conduct of the proceedings would be likely to result in disclosure of information, 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.

Whakamutunga (Conclusion)

The meeting concluded at 12.31pm.