Investment and Property Subcommittee

Wednesday 29 September 2021 at 1.00pm

 

 

AGENDA

 


Investment and Property Subcommittee

29 September 2021

Investment and Property Subcommittee Agenda

 

Meeting to be held in the Remote via Zoom

on Wednesday 29 September 2021, 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

Ex-Officio Penny Smart

Councillor Justin Blaikie

Councillor Colin Kitchen

Councillor Jack Craw

Councillor Terry Archer

Independent Consultant Jonathan Eriksen

Independent Audit & Risk Advisor Danny Tuato'o

Independent Advisor Stuart Henderson

 

 

KARAKIA / WHAKATAU

 

RĪMITI (ITEM)                                                                                                                                                                Page

1.0       Ngā Mahi Whakapai/Housekeeping

2.0       Ngā Whakapahā/apologies   

3.0       Ngā Whakapuakanga/declarations of conflicts of interest

4.0       Ngā Whakaae Miniti (Confirmation of Minutes)

4.1       Confirmation of Minutes - Investment and Property Subcommittee 30 June 2021           4

5.0       Reports

5.1       Mount Tiger Forest Management Plan - Reporting Actual Performance Against Targets 2020/2021                                                                                                                                                                           9

5.2       Responsible Investment Report - June 2021                                                                                   16

5.3       Performance of Councils Externally Managed Funds to 31 August 2021                             24

6.0       Kaupapa ā Roto (Business with the Public Excluded)                                                             52

6.1       Confirmation of Confidential Minutes - Investment and Property Subcommittee 30 June 2021

6.2       Progressing the Hannah Street Redevelopment

6.3       Progressing the Waipapa Service Centre

6.4       Purchasing Process for Whangarei CBD and Hihiaua Precinct

6.5       Kaipara Service Centre Update

6.6       Ngunguru Sandspit Protection Society Inc Request


Investment and Property Subcommittee                                                                                                                   item: 4.1

29 September 2021

 

TITLE:

Confirmation of Minutes - Investment and Property Subcommittee 30 June 2021

ID:

 

From:

Judith Graham, Corporate Excellence P/A

Authorised by Group Manager:

Bruce Howse, Group Manager - Corporate Excellence, on

 

Ngā mahi tūtohutia / Recommendation

That the minutes of the Investment and Property Subcommittee meeting held on 30 June 2021 be confirmed as a true and correct record.

 

Attachments/Ngā tapirihanga

Attachment 1: Investment and Property Subcommittee Minutes 30 June 2021   


Investment and Property Subcommittee  ITEM: 4.1

29 September 2021Attachment 1

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Whakamutunga (Conclusion)

The meeting concluded at 2.44pm


Investment and Property Subcommittee                                                                                                                   item: 5.1

29 September 2021

 

TITLE:

Mount Tiger Forest Management Plan - Reporting Actual Performance Against Targets 2020/2021

From:

Nicole Inger, Property Officer

Authorised by Group Manager/s:

Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on 22 September 2021

 

Whakarāpopototanga / Executive summary

The purpose of this report is to present the actual performance of council’s Mt Tiger forestry holding against the prescribed actions of the Forestry Management Plan and Budget for the 2020/21 financial year.

 

Ngā mahi tūtohutia / Recommendation

That the report ‘Mount Tiger Forest Management Plan - Reporting Actual Performance Against Targets 2020/2021’ by Nicole Inger, Property Projects Officer and dated 21 September 2021, be received.

 

Background/Tuhinga

The actual performance against targets for the 2020/2021 year is attached. Key points to note are as follows:

 

·    The forestry holding was valued at $3,803,000 as of 30 June 2021.

·    Council held a total of 17,460 NZ ETS Units as of 30 June 2021 valued at a total of $758,986 ($43.47 per Unit).  This resulted in a non-cash revaluation gain of $198,520.

·    The tree crop value increased by 16.8%. This was mainly a result of tree growth and higher valuation log prices.

·    There was no harvest for the 2020/21 year.  Last harvest was 2018/19.  Next harvest around 2023, when markets are deemed suitable.

·    The net stocked area as of 30 June 2021 was 310.8ha, an increase from last year as a result of 16.4 ha replanting.

·    Forest costs were $89,884, 4% less than budget.

·    The significant storm in July 2020 caused substantial slipping and road damage to forest.  Hence total YE2021 maintenance spend was $35,644 (mostly on slip clearance, large culvert and a creek crossing repair) leading to an overspend of $19,324.

·    Council (Biosecurity department) is implementing the pest and weed control plan effectively.

·    Overall, forest health remains good, and no corrective actions were required in the 2020/21 year.

 

 

Attachments/Ngā tapirihanga

Attachment 1: Performance Against Targets 2020/2021   


Investment and Property Subcommittee  ITEM: 5.1

29 September 2021Attachment 1

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Investment and Property Subcommittee                                                                                                                   item: 5.2

29 September 2021

 

TITLE:

Responsible Investment Report - June 2021

From:

Simon Crabb, Finance Manager

Authorised by Group Manager/s:

Bruce Howse, Group Manager - Corporate Excellence, on 13 September 2021

 

Whakarāpopototanga / Executive summary

Responsible investing, also known as ethical investing or sustainable investing, is a holistic approach to investing, where social, environmental, corporate governance (ESG) and ethical factors are considered alongside financial performance when making an investment decision.

Councils Statement of Investment Policy and Objectives (SIPO) is the key document that sets out council’s responsible investment expectations regarding its externally managed fund portfolio. Specifically, transitioning away from any investments listed below over a five-year time horizon:

·    Fossil fuels (exploration, extraction, and processing)

·    Alcohol

·    Tobacco

·    Gambling

·    Military weapons

·    Civilian firearms

·    Nuclear power

·    Adult entertainment

The EriksensGlobal responsible investment report illustrating councils’ exposure to investments in the criteria listed above and investments in companies that support environmental sustainability at 30 June 2021 is attached.   Graph 1 below shows how council has adjusted its investment exposures (since 2018) to enhance its contribution to a sustainable economy.

 

 

 

Ngā mahi tūtohutia / Recommendation

That the report ‘Responsible Investment Report - June 2021’ by Simon Crabb, Finance Manager and dated 24 August 2021, be received.

 

 

Attachments/Ngā tapirihanga

Attachment 1: NRC Responsible Investment Report June 2021   


Investment and Property Subcommittee  ITEM: 5.2

29 September 2021Attachment 1

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Investment and Property Subcommittee                                                                                                                   item: 5.3

29 September 2021

 

TITLE:

Performance of Councils Externally Managed Funds to 31 August 2021

From:

Simon Crabb, Finance Manager

Authorised by Group Manager/s:

Bruce Howse, Pou Taumatua – Group Manager Corporate Services, on 21 September 2021

 

Whakarāpopototanga / Executive summary

A summary of the returns and target objectives for the 2 months ending 31 August 2021 for councils 2 managed funds is presented below, with the supporting detail and fund performance for longer periods contained in the attached EriksensGlobal Report (Attachment 1).

 

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Jonathan Eriksen from EriksensGlobal will be joining in via Zoom to answer any questions.

 

All monthly, quarterly and year to date (YTD) return percentages in this report and its attachment are not annualised.

 

Ngā mahi tūtohutia / Recommendation

That the report ‘Performance of Councils Externally Managed Funds to 31 August 2021 ’ by Simon Crabb, Finance Manager and dated 17 September 2021, be received.

 

Background/Tuhinga

Councils managed fund portfolio generated returns of $741K for the month of August 2021 with both the Long-Term and Short-Term Investment funds outperforming their respective target objectives in all reporting periods.

 

Long Term Investment Fund (LTF)

At 31 August 2021, the LTF has an overall market value of $50.4m, comprising of funds attributable to: Economic Development of $17.5m, Property Reinvestment of $16.6m, and Regional Project Development of $16.3m.

The LTF has performed as follows:

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Short Term Investment Fund (STF)

At 31 August 2021, the STF has an overall market value of $10.6m, comprising funds attributable to Working capital requirements of $3.8 m and Property Reinvestment of $6.8m.

The STF has performed as follows:

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Non-compliance with the Statement of Investment Policy and Objectives (SIPO)At 31 August 2021, the Long-Term Investment Fund allocation to the Schroder Real Return fund was 7.4% which is above its upper limit of 5%. A recommendation to raise this limit to 10% will be presented to full council on 21 September 2021.

 

The Short-Term Investment Fund allocation to diversified income assets was 57.5% at the end of August, which is lower than its minimum investment level of 60%.  Although no immediate action is recommended by EriksensGlobal, there will be an opportunity to rebalance the Short-Term portfolio when the first rates instalment for the year and the Marsden Maritime Holdings dividend are received on the 24 September 2021.

 

Attachments/Ngā tapirihanga

Attachment 1: EriksensGlobal Monthly Report - 31 August 2021   


Investment and Property Subcommittee  ITEM: 5.3

29 September 2021Attachment 1

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Investment and Property Subcommittee                                                                                                                    ITEM: 6.0

29 September 2021

 

TITLE:

Business with the Public Excluded

 

Whakarāpopototanga / 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.

Ngā mahi tūtohutia / 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

6.1

Confirmation of Confidential Minutes - Investment and Property Subcommittee 30 June 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 -.

6.2

Progressing the Hannah Street Redevelopment

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).

6.3

Progressing the Waipapa Service Centre

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).

6.4

Purchasing Process for Whangarei CBD and Hihiaua Precinct

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).

6.5

Kaipara Service Centre Update

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).

6.6

Ngunguru Sandspit Protection Society Inc Request

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).

3.              That the Independent Financial Advisors 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.