Finance and Council Controlled Organisations Committee

MINUTES

Minutes of an ordinary meeting of the Finance and Council Controlled Organisations Committee held in the Edinburgh Room, Municipal Chambers, The Octagon, Dunedin on Tuesday 12 September 2017, commencing at 2.00 pm

PRESENT

Chairperson	Mike Lord
Deputy Chairperson	Doug Hall
Members	David Benson-Pope	Rachel Elder
	Christine Garey	Aaron Hawkins
	Marie Laufiso	Damian Newell
	Jim O'Malley	Conrad Stedman
	Andrew Whiley	Lee Vandervis (via audio link)
	Kate Wilson

IN ATTENDANCE

Sue Bidrose (Chief Executive Officer), Simon Pickford (General Manager Community Services), Gavin Logie (Acting Chief Financial Officer), Kristy Rusher (Manager Civic and Legal), Lawrie Warwood (Financial Analyst) and Alan Worthington (Resource Consents Manager)

Governance Support Officer       Jennifer Lapham

1       Public Forum

1.1    Public Forum

David Ross, spoke to committee regarding the Waipori Fund, debt and the Building Warrant of Fitness Fee.

In regards to the Waipori Fund he believed that the Fund was constrained because it was required to provide a dividend each year, and that the Fund should be a growth fund.  He felt that the Council should sacrifice lower income used to reduce rates, in exchange for higher capital growth, which instead, would be accumulated to pay off debt.

In speaking to the debt issue, he felt that as interest rates were low at the moment capital projects should not be put off to keep debt low.  If the Council needs to borrow money to undertake capital projects this should be undertaken now while the interest rates are low.

Mr Ross also expressed his concern regarding the increasing fee for a Building Warrant of Fitness.

2       Apologies
	Moved (Mike Lord/Doug Hall): That the Committee: Accepts the apologies from Mayor Dave Cull and Cr Chris Staynes Motion carried (FCCO/2017/023)

3       Confirmation of agenda
	Moved (Cr Mike Lord/Cr Doug Hall): That the Committee: Confirms the agenda with the following alterations: a)     In regard to Standing Order 21.1, Option C be adopted in relation to moving and seconding and speaking to amendments. Motion carried (FCCO/2017/024)

4       Declarations of interest

Members were reminded of the need to stand aside from decision-making when a conflict arose between their role as an elected representative and any private or other external interest they might have.

Moved (Cr Mike Lord/Cr David Benson-Pope):

That the Committee:

a)     Notes the Elected Members' Interest Register attached as Attachment A; and

b)     Confirms the proposed management plan for Elected Members' Interests.

Motion carried (FCCO/2017/025)

Part A Reports

5       Insurance Renewal Year Ended 30 June 2018
	In a report from Finance a summary is provided of the insurance renewal for the Dunedin City Council for the year ended 30 June 2018. The report detailed the changes that have been negotiated around policy terms, conditions, coverage, excesses and premiums applied.  The material damage premium for 2017/18 have been impacted by a number of factors including: increase in insured values (8.5%) and tightening of local market pricing and capacity following recent insurance events (Kaikoura earthquakes and Edgecumbe flooding).
	Moved (Cr Kate Wilson/Cr Christine Garey): That the Committee: a)     Notes the Insurance Renewal Year Ended 30 June 2018. Motion carried (FCCO/2017/026)

6       Financial Result - Year Ended 30 June 2017
	This report provides the financial results for the year ended 30 June 2017 and the financial position as at that date.
	Moved (Cr David Benson-Pope/Cr Kate Wilson): That the Committee: a)     Notes the Financial Performance for the year ended 30 June 2017 and the Financial Position as at 30 June 2017. b)     Notes that the year end result is subject to external audit by Audit New Zealand. Motion carried (FCCO/2017/027) – with Cr Vandervis voting against

7       Special Consultative Procedure for new RMA fee categories
	A report from Community and Planning provided details on the need to undertake a special consultative procedure to add three new fee categories to the schedule of fees for Resource Management Act (RMA) processes.
	Moved (Cr Aaron Hawkins/Cr Kate Wilson): That the Committee: a)     Undertakes a special consultative procedure to add to the fee schedule for planning applications. Motion carried (FCCO/2017/028)

8       Notification of Agenda Items for Consideration by the Chair
	There were no items notified.

Resolution to exclude the public

Moved (Cr Mike Lord/Cr Kate Wilson):

That the Committee:

Pursuant to the provisions of the Local Government Official Information and Meetings Act 1987, exclude the public from the following part of the proceedings of this meeting namely:

General subject of the matter to be considered	Reasons for passing this resolution in relation to each matter	Ground(s) under section 48(1) for the passing of this resolution	Reason for Confidentiality
C1  Property Sale	S7(2)(i) The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).	S48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	This report is confidential to protect Council's position in respect of the negotiations for a proposed property sale.

This resolution is made in reliance on Section 48(1)(a) of the Local Government Official Information and Meetings Act 1987, and the particular interest or interests protected by Section 6 or Section 7 of that Act, or Section 6 or Section 7 or Section 9 of the Official Information Act 1982, as the case may require, which would be prejudiced by the holding of the whole or the relevant part of the proceedings of the meeting in public are as shown above after each item.

Motion carried (FCCO/2017/029)

The meeting went into non-public 2.18 pm and concluded at 3.30 pm.