Finance & Corporate Committee Agenda

265 Pages·2016·23.25 MB·English

by  Cathie Shaw

Finance & Corporate

Committee Agenda

Time: 11.30am
Date: Tuesday, 13 December 2016
Venue: Council Chambers, Waipa District Council, 101 Bank Street,
Te Awamutu

INDEX PAGE NO.
Agenda – 13 December 2016 1 – 8
2
Minutes of Previous Meeting – 23 September 2016 (9 - 13)

3
Deputation re Kihikihi Dog Pound (no papers)

3
Council Controlled Organisations & Civic Assurance Annual Reports (14 - 219)

3 - 4
Quarterly Property Report (220 - 228)

4 - 5
Stop, Declare Surplus & Sell a portion of unformed Lovells Road (229 - 236)

5 - 6
Lease for Café on Mighty River Domain (237 - 247)

6 - 7
Mighty River Domain S17a Review (248 - 265)

7
2017 Meeting Dates (no papers)
2
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Committee Agenda
AGENDA ITEMS
1 MEMBERS
Chairperson
Cr A Brown
Members
His Worship the Mayor JB Mylchreest, EM Andree-Wiltens, JM Bannon, EH Barnes, M
Gower, SDC Milner, SC O’Regan, EM Stolwyk, CS St Pierre, BS Thomas, GRP Webber,
VT Wilson
2 APOLOGIES
3 DISCLOSURE OF MEMBERS’ INTERESTS
4 VISITORS
5 MINUTES OF PREVIOUS MEETING
Pages: 9 - 13
Recommendation
That the minutes of the Finance & Corporate Committee meeting held on 20
September 2016 be received.
6 LATE ITEMS
7 CONFIRMATION OF ORDER OF MEETING
File: 01-89-0
Recommendation
That the order of the meeting be confirmed.
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8 DEPUTATION REGARDING KIHIKIHI DOG POUND
No papers

A deputation of residents from Kihikihi will be in attendance to present a letter to
Council on the proposed Kihikihi Dog Pound.

9 COUNCIL CONTROLLED ORGANISATIONS & CIVIC ASSURANCE ANNUAL
REPORTS
File: 090-01-25 / Pages 14 - 219
Council is a shareholder in Waikato Local Authority Shared Services Limited (WLASS),
Waikato Regional Airport Limited (WRAL) and the New Zealand Local Government
Funding Agency Limited (LGFA) which are Council Controlled Organisations (CCOs).
Council is also a shareholder of the New Zealand Local Government Insurance
Corporation trading as Civic Assurance Limited (Civic). The purpose of this report is
to summarise the highlights of the annual reports of WLASS, WRAL and the LGFA for
the year ended 30 June 2016, and the annual report of Civic for the year ended 31
December 2015.

Section 67 (1) of The Local Government Act 2002 (LGA) requires that within 3 months
after the end of each financial year, the board of a CCO must deliver to the
shareholders, and make available to the public, a report on the organisation's
operations during that year.

The audit of annual reports for these companies were completed within statutory
time frames and un-modified audit opinions were issued for all four organisations

Recommendation
That the information contained in the report of Kumaren Perumal, Manager Finance
be received, together with the 30 June 2016 Annual Reports of Waikato Local
Authority Shared Services Limited (document number 16118047), New Zealand Local
Government Funding Agency (document number 16091920), Waikato Regional
Airport Limited (document number 16095330) and the 31 December 2015 Annual
Report of Civic Assurance (document number 16048397).

10 QUARTERLY PROPERTY REPORT
File: 120-01-02/03 / Pages 220 - 228
The purpose of the staff report is to provide information on the activities of the
Property Services Team for the July 2016 to September 2016 quarter. This is an
‘information only’ report as no decisions are required.
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Recommendation
That the information contained in the Quarterly Property Services Report (document
16113020), of John Miles, Manager Property Services be received.

11 LOVELLS ROAD UNFORMED ROAD STOPPING
File: 90-02-25 & UR7/547 / Pages 229 - 236
The owner of land adjoining unformed road owned by Council (Lovells Road as per
Appendix 1 attached to the staff report) has applied to Council to purchase part of
the unformed section of the road for amalgamation with the land in their ownership.
Council is required to follow a process under the Public Works Act 1981 to stop the
road and be able to sell the land.
The road is surplus to Council’s requirements and its current legal status of road does
not reflect the true use of the land. It is proposed that Council consent to the
unformed road being stopped. A Notice in the Gazette under the Public Works Act
1981 will complete the legal process to stop the road and enable the sale of the land
by Council to proceed.
As the Local Government Act 2002 requires Council itself to authorise any sale of land
not specifically provided for in an Annual Plan, part c) of the recommendation
provides for a recommendation to Council to authorise the sale.

Recommendation
That
a) The report of Cathy McNally, Property Advisor (document number 16116172) be
received;
b) The Committee resolve pursuant to section 116 of the Public Works Act 1981, to
request the Minister of Land Information to stop that portion of Lovells Road
shown on the attached plan (Appendix 2) containing 5,500 square metres
approximately;
c) The Committee recommends to Council that, pursuant to s.117(3)(b), it
considers it equitable to dispose of the stopped road to an adjoining landowner
by way of amalgamation with the land in Certificate of Title 724903, subject to
Council entering into a formal agreement under the Public Works Act to sell the
land for an amount determined by valuation. In addition the purchasers will be
responsible for:
(i) Arranging and/or meeting costs for the production of a Survey Office plan;
and
(ii) Meeting Council’s valuation costs and contribute towards Council’s
administrative and Public Works Act legalisation costs; and
(iii) Securing formal Public Works Act consents from the three neighbours.
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d) Subject to the Council approval required in part c) of this resolution, the Group
Manager Business Support be authorised to sign, apply the Council seal (if
required) and execute any documentation required to affect the road stopping
and transfer of land to the adjoining landowner.

12 LEASE FOR CAFÉ ON MIGHTY RIVER DOMAIN
File: P14149-07-05 / Pages 237 - 247
The Mighty River Domain (“the Domain”) hosts large numbers of visitors during
organised events and at other times when those associated with recreational and
competitive water sports, outdoor pursuits, the Te Awa cycleway, the Rowing NZ
High Performance Centre, the Domain camp ground/accommodation and functions
in the Sir Don Rowlands Centre are present on site. Visitors regularly express an
interest in being able to obtain refreshments on site, and such public demand has
motivated the proposal presented in this report.
The owners of Cambridge catering company Gourmet Delicious Limited (‘GD’) have
been in discussions with the Domain’s Site Manager and Council staff for several
years in relation to the possibility of opening a café on the Domain. They have
carried out extensive research and are confident that the business proposal is viable.
In November 2016, Council staff gained resource consent for the establishment and
operation of a standalone café on the Domain. GD are willing to fund construction of
the proposed café, on the basis that Council grant a ground lease in respect of the
facility. A site layout, floor plan and concept drawings of the proposed café are
included as appendices to the staff report.
Given that café activity is both anticipated by and in accordance with the Domain’s
Reserve Management Plan, neither the prior consent of the Minister nor public
notification is required for Council to grant a lease for the purpose of operating a café
on site. The Committee are therefore asked to approve this proposal.

Recommendation
That
a) The report of Jane Blackmore, Property Advisor (document number 16116853)
be received;
b) The Finance and Corporate Committee approve the granting of a commercial
ground lease to Gourmet Delicious Limited pursuant to s.54(1)(d) of the
Reserves Act 1977 and the Karapiro (Mighty River) Domain Reserve
Management Plan (September 2011) in respect of a café facility to be
constructed on the Mighty River Domain, Lake Karapiro, for a period of fifteen
(15) years with a right of renewal of ten (10) years, at a commercial rent to be
based upon advice from a registered valuer and rent reviews to occur after five
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(5) years and thereafter every two and a half (2.5) years, with the lease
document to include such conditions as considered appropriate to adequately
protect Council’s interests; and
c) Authority be delegated to the Group Manager Business Support to approve the
Heads of Agreement and Lease documents associated with the proposed café
and to execute and apply the Council Seal to these documents.

13 MIGHTY RIVER DOMAIN – S17A REVIEW
File: P14149-07-04 / Pages 248 - 265

At its 20 September 2016 meeting the Committee approved the engagement of a
consultant to conduct a review of the management model utilised for the Mighty
River Domain, Lake Karāpiro (‘the Domain’), in accordance with section 17A (4)(b) of
the Local Government Act 2002. Proposals were subsequently sought from potential
providers, and Horwath HTL was selected to carry out the review. Horwath staff
undertook two site visits, interviewed a variety of key stakeholders and considered
relevant documentation in order to inform their review of the Domain. A summary of
the review scope, background information and key findings from the final draft of the
review document is attached as Appendix 1 to the staff report. Section 17a of the
Local Government Act 2002 is attached as Appendix 2 to the staff report, for
reference also.

In considering the issue of cost effectiveness, Horwath staff take the view that the
question is as much about ‘effectiveness’ as it is about ‘cost’, and that the cheapest
service delivery option would not necessarily be the most cost effective, if it does not
meet Council’s objectives for the site.

Horwath staff received a strong message from those they interviewed, in relation to
the significance of the Domain and the necessity for the service delivered on site to
be of high quality. Although a review of the incumbent operator’s performance was
outside the scope of the review, a clear message was received by Horwath staff that
key stakeholders are very satisfied with the service being delivered on the Domain by
the incumbent operator, and this among other considerations has supported their
conclusion that the labour only management contract is the most cost-effective
means of service delivery.

The key finding presented by Horwath HTL in their s17a report is as follows:
“Based on our analysis of reasonably practicable alternative options, we believe
the arrangement with the present community-orientated private sector
contractor ... is currently, and is likely to continue to be, the most cost-effective
option for the funding, governance and delivery of the management of the
Mighty River Domain, Lake Karāpiro.
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Horwath have, however, identified that it would be prudent for Council to develop a
‘plan B’ for the Domain’s management, to reduce the risk associated with Council
having all of its eggs in one basket. The ‘plan B’ recommendation is that Council build
capacity within its ranks to handle some or all of the site’s service delivery
requirements in-house, if a suitable contractor cannot be found.

In addition, Horwath have identified improvements to contract-related
documentation, planning, reporting and accountability practices associated with the
Domain. Horwath suggest that by effecting these improvements, Council will move
closer to achieving ‘best practice’ and could realise even greater cost effectiveness in
the future.

Provided that the Committee approve the staff report’s recommendation that the
status quo management model for the Domain be retained, an open market process
will be entered into to identify a suitable contractor to continue to manage the
Domain on Council’s behalf for a three year term with three year right of renewal.
Staff would expect to bring a recommendation in this regard to the Committee’s
March 2017 meeting. Although timeframes are tight, this should allow time for the
successful contractor to prepare for the role, prior to the expiry of the current
contract.

Recommendation
That
a) The report of Jane Blackmore, Property Advisor (document number 161173333)
be received;
b) The Committee accept the recommendations presented by Horwath HTL in their
report of 5 December 2016, attached as Appendix 1 to the report (document
16117333), in relation to the future delivery of services on the Mighty River
Domain, Lake Karāpiro;
c) Staff be authorised to undertake an open market process to select a suitable
site management contractor for the Mighty River Domain for a three year term
with three year right of renewal beginning 1 July 2017, on the basis that this
management model has been identified as the most cost effective method of
delivering services on the Domain, in accordance with section 17A (4)(b) of the
Local Government Act 2002.

14 MEETING DATES FOR 2017
No papers

The Local Government Act 2002 requires Council and its Committees to set the dates of
meetings, or a schedule of meetings, for a period of time. It is now appropriate to adopt
a schedule of meetings for the Finance & Corporate Committee for 2017.
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The Committee’s practice has been to meet at 1.00pm on the Third Tuesday of each
month, except for January.

Recommendation
That in accordance with the Local Government Act 2002, Schedule 7 Clause 19(6)(i) the
Finance & Corporate Committee adopt the following schedule of meeting dates for 2017
(generally being the third Tuesday of each month except for January):

21 February, 21 March, 18 April, 16 May, 20 June, 18 July, 15 August, 19 September, 17
October, 21 November and 19 December.

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9
Finance & Corporate
Committee Minutes
Time: 1.00pm
Date: Tuesday, 20 September 2016
Venue: Council Chambers, Waipa District Council, 101 Bank Street,
Te Awamutu
1 PRESENT
Chairperson
Cr A Brown
Members
His Worship the Mayor JB Mylchreest, JM Bannon, J Bishop, M Gower, SDC Milner,
EM Stolwyk, CS St Pierre, BS Thomas, GRP Webber, VT Wilson
In attendance
Group Manager Business Support K Morris; Manager Property Services J Miles;
Business Development Manager S Tritt; Communications Consultant J Tyrell; Property
Advisor J Blackmore; Policy Analyst S O’Dea; Event Co-ordinator G Burke;
Management Accountant S Paterson; Governance Support Senior C Shaw
2 APOLOGIES
RESOLVED
3/16/53
That the apologies from Councillors Barnes and Hoverd for non-attendance, be
received.
Cr St Pierre/Cr Bannon
3 DISCLOSURE OF MEMBERS’ INTERESTS
Cr Stolwyk declared an interest in item 10.
4 VISITORS
Jason Dawson, new Chief Executive and Nicola Greenwell from Hamilton Waikato
Tourism were in attendance for item 8.
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5 MINUTES OF PREVIOUS MEETING

RESOLVED
3/16/54
That the minutes of the Finance & Corporate Committee meeting held on 16 August
2016 be confirmed as a true and correct record.
Cr Bishop/Cr Bannon

6 LATE ITEMS

There were no late items.

7 CONFIRMATION OF ORDER OF MEETING
File: 01-89-0

RESOLVED
3/16/55
That the order of the meeting be confirmed.
Cr Webber/Cr Wilson

8 ANNUAL REPORT AND PRESENTATION FROM HAMILTON WAIKATO
TOURISM
File: 01—67-01

Jason Dawson and Nicola Greenwell were in attendance and made their annual
report presentation with the aid of a power point presentation. Councillors asked
questions on the presentation and congratulated Hamilton Waikato Tourism for
promoting Waipa attractions.

In response to a question regarding Sanctuary Mountain and the extra funding
provided, Mr Dawson said that a strategy document had been prepared and
identified areas that could improve the visitor offering. He said he was about to meet
with the Trust Board to develop a plan for working through the document and the
proposed initiatives.

Discussion was held around the increase in international visitor nights and what has
driven that. Mr Dawson said Hobbiton had driven the major increase. He said
Waitomo was still popular but if the visitors are wanting to go to both they are
staying in Hamilton or Rotorua.

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