MINUTES

Finance, Audit and Risk Committee Meeting

Tuesday, 25 February 2020

 


Finance, Audit and Risk Committee Meeting Minutes

25 February 2020

 

Order of Business

1          Apologies. 3

2          Public Forum.. 4

3          Acceptance of Late Items. 4

4          Confidential Business to be Transferred into the Open. 4

5          Change to Order of Business. 4

6          Declaration of Conflicts of Interest 4

7          Business. 4

7.1            Mainstreet Monitoring Report July to December 2019. 4

7.2            Financial and Non-Financial Monitoring Report: Period ended 31 December 2019. 5

7.3            Quarter 2 - LGOIMA and Mayor & Councillor Requests. 7

8          Discussion of Late Items. 7

9          Public Excluded Session. 7

 

 


Finance, Audit and Risk Committee Meeting Minutes

25 February 2020

 

MINUTES OF Tauranga City Council
Finance, Audit and Risk Committee Meeting
HELD AT THE Tauranga City Council, Council Chambers, 91 Willow Street, Tauranga
ON Tuesday, 25 February 2020 AT 10am

 

PRESENT:              Mr Bruce Robertson (Chairperson), Cr Tina Salisbury (Deputy Chairperson), Mayor Tenby Powell, Cr Jako Abrie, Cr Andrew Hollis, Cr Heidi Hughes, Cr Dawn Kiddie, Cr Steve Morris and Cr John Robson.

IN ATTENDANCE: Marty Grenfell (Chief Executive), Paul Davidson (General Manager: Corporate Services), Barbara Dempsey (General Manager: Regulatory & Compliance), Christine Jones (General Manager: Strategy & Growth), Nic Johansson (General Manager: Infrastructure), Gareth Wallis (General Manager: Community Services), Michael Vujnovich (Manager: Project Tauranga), Kathryn Sharplin (Manager: Finance), Kath Norris (Team Leader: Democracy Services), Coral Hair (Manager: Democracy Services), Jenny Teeuwen (Committee Advisor),Robyn Garrett (Team Leader: Committee Support)

 

INTRODUCTION AND WELCOME

The Chairperson Mr Robertson opened the meeting and welcomed everyone.  Mr Robertson introduced himself and noted his appreciation of the honour of being appointed as the independent Chair for the committee.  Mr Robertson considered that he would bring a fresh independent approach to the committee, with a fresh eye on its scope and role.  Mr Robertson was currently a member of 12 local authority Audit and Risk committees, including his position as Deputy Chair of the Bay of Plenty Regional Council (BOPRC) Audit and Risk Committee. Noted the challenges of being a growth city; and the finance function of this committee as well as its audit and risk role.

The Chairperson noted several key points for an audit and risk committee:

·         The need to discuss the risks – the committee was designed to have constructive tension to test and gain assurance that Council’s risks were under control;

·         An expectation of honesty and transparency from management; and the importance of playing the risk not the person;

·         Risk often had a negative connotation (about avoidance) but risk was positive and about achieving outcomes for the community.

·         The need to be strategic – the role of the committee was to look up and forward not focus down.

Mayor Powell formally welcomed Mr Robertson, noted his experience and looked forward to his contribution to the committee and to Council.

1            Apologies

Apology

Committee Resolution  FI2/20/1

Moved:       Mr Bruce Robertson

Seconded:  Mayor Tenby Powell

That the apologies for absence received from Crs Larry Baldock, Kelvin Clout and Bill Grainger be accepted.

Crs Baldock and Clout were absent on other Council business.

Carried

2            Public Forum  

Nil

3            Acceptance of Late Items

Nil

4            Confidential Business to be Transferred into the Open

Nil

5            Change to Order of Business

The Chairperson indicated that the order may change if needed to accommodate external visitors.

6            Declaration of Conflicts of Interest

Nil

7            Business

7.1         Mainstreet Monitoring Report July to December 2019

Staff:         Gareth Wallis, General Manager: Community Services

                  Michael Vujnovich, Manager: Project Tauranga

 

Key points

·         Noted that the Mainstreets would normally present their six-monthly reports; however, due to the length of the meeting agenda, they had been asked to present to their annual reports.

·         Noted that all were in surplus and financially positive; place-making and economic development were key concerns.

 

In response to questions

·         The challenge to sustain a bus service for the cruise ships was noted, as was the recent council decision to contribute up to $50,000 to assist with the provision of the service.  This was still an ongoing issue; TBOP would be conducting a comprehensive review of all cruise ship shuttle operations from the summer and would co-ordinate a collective workshop with council and the various Mainstreets.  The intention was to find a solution before the start of the next cruise ship season.

·         Provision of appropriate signage from the cruise ships to the Mount shopping centre was still being investigated; there was an issue with degraded light and power poles in terms of attaching signage. 

·         In relation to the possible inclusion of parking prices for the Mount and Greerton in the draft parking strategy, technical work was being completed on the parking strategy with no decisions yet made and would come back to council through the Urban Form and Transport Initiative (UFTI) project.

·         The terms of reference for all four Mainstreets were being reviewed, in terms of their role in the city and funding.

 

Committee Resolution  FI2/20/2

Moved:       Mr Bruce Robertson

Seconded:  Cr Tina Salisbury

That the Finance, Audit and Rick Committee:

(a)     Receives the report Mainstreet Monitoring Report July to December 2019.

Carried

 

7.2         Financial and Non-Financial Monitoring Report: Period ended 31 December 2019

Staff:         Kathryn Sharplin, Manager: Finance

                  Tracey Hughes, Financial Insights and Reporting Manager

                  Mohan de Mel, Treasurer

                  Rhea Brooks, Corporate Planner

 

Key points

·         Overall financial performance was on track, with some unders and overs.

·         Noted the key information provided in the Statement of Comprehensive Revenue and Expense.

·         Noted the smaller operating budget; forecast was to continue to be under budget but by a decreasing amount. 

·         Explained the structure of the Capital expenditure (Capex) programme as reported.  Colours were used to identify status of project e.g. red – critical. Noted the adjustment downwards of $60 million.

·         Treasury report projected a full year debt position close to budget. 

 

In response to questions

·         Te Maunga works were identified as critical and would be in either the Annual or Long-Term planning process; further information would be provided through the Projects, Services and Operations Committee.

·         A report on the Harington Street transport hub, including costings and liabilities, would be brought to the 10 March Council meeting.

·         The Mauao base track repairs budget was adopted through the last Annual Plan; the budget would not be altered but expenditure would be lower.  Noted forecast expenditure of $840,000. 

·         Clarification was provided on the overspend on Te Papa o Ngā Manu Porotakataka.

·         A significant cost increase was expected with the Waiari project; difficult to quantify the unknown costs of a big project such as this.  Areas of increased cost included geotech testing; challenging ground conditions on the farms section of the pipeline; tender prices above estimate; completion date pushed out so works of longer duration.

·         To decrease the “unknown” risk in a tender and contract process involved paying a premium for someone else to take that risk and was a balancing act with the contracting sector.  An independent piece of work was being undertaken on procurement processes and risk management, particularly in larger projects.

·         Debt position lower than anticipated as expected borrowing was adjusted down to reflect more realistic delivery of capital projects. 

·         Pending Elizabeth St development was to coincide with the Farmers site development.  There was an obligation to complete this in full and on time as part of partnership with the Farmers development.

·         Noted that a lack of contractors available to conduct building inspections was impacting the Building Services KPIs.

·         Inability to meet the current National Policy Statement requirements for housing supply was due to an insufficient supply of land – key barriers were multiple owned Maori land, road linkages to state highways, and resilience issues.  Had been raised at national level through various submissions; a consortium of growth councils was in discussion with central government. 

·         With the Special Housing Area (SHA) tool now no longer available, there were no other mechanisms to provide additional zoned land apart from the normal plan change process.

·         A variety of workstreams were underway for pandemic preparedness; the General Manager:  Community Services had been appointed as responsible for pandemic planning.

·         Clarification was provided regarding the overspends noted in the report.  The overspends were within the Chief Executive’s financial delegation and had been included for information not approval.

 

Committee Resolution  FI2/20/3

Moved:       Cr John Robson

Seconded:  Cr Andrew Hollis

That the Finance, Audit and Risk Committee:

(a)     Receives Report Financial and Non-Financial Monitoring Report: Period ended 31 December 2019.

b)      Notes an overspend of $375,000 for the Durham Street Streetscape project

(c)     Notes an overspend of $194,000 for Te Papa o Ngā Manu Porotakataka.

Carried

 

7.3         Quarter 2 - LGOIMA and Mayor & Councillor Requests

Staff:         Kath Norris, Team Leader: Democracy Services

                  Coral Hair, Manager: Democracy Services

 

Key points

·         The report was taken as read.

 

In response to questions

·         Councillors requested that the Colgan report be made available to councillors and noted that it was a matter of trust that the report and its contents would remain out of the public domain. 

·         The Office of the Ombudsman had been on site the previous week and had conducted a number of interviews of staff across the organisation; a formal report would follow.  Some recommendations were expected around transparency of process and accountability, and there would be a subsequent work programme as a result of that report.

·         The Ombudsman was required to review several local authorities per year; the report would be tabled in Parliament.

 

Committee Resolution  FI1/20/4

Moved:       Cr Andrew Hollis

Seconded:  Cr Jako Abrie

That the Finance, Audit and Risk Committee:

Receives the report: Quarter 2 Local Government Official Information and Meetings Act 1987 and Mayor and Councillors requests.

Carried

 

8            Discussion of Late Items

Nil

9            Public Excluded Session

RESOLUTION TO EXCLUDE THE PUBLIC

Committee Resolution  FI1/20/5

Moved:       Mr Bruce Robertson

Seconded:  Cr Andrew Hollis

That the public be excluded from the following parts of the proceedings of this meeting with the excption of Council legal advisers who are allowed to stay and contribute to the discussion due to their specialist knowledge of legal proceedings.

The general subject matter of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48 of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution are as follows:

General subject of each matter to be considered

Reason for passing this resolution in relation to each matter

Ground(s) under section 48 for the passing of this resolution

9.1 - Litigation Report

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

9.2 - Bella Vista Update - Building Matters

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

9.3 - Corporate Risk Register - Quarterly Update

s7(2)(b)(i) - the withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret

s7(2)(b)(ii) - the withholding of the information 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)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

 

 

s7(2)(i) - the withholding of the information is necessary to enable Council to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations)

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

9.4 - Internal Audit Programme for 2019/20 to 2020/21

s6(b) - the making available of the information would be likely to endanger the safety of any person

s7(2)(a) - the withholding of the information is necessary to protect the privacy of natural persons, including that of deceased natural persons

s7(2)(b)(i) - the withholding of the information is necessary to protect information where the making available of the information would disclose a trade secret

s7(2)(d) - the withholding of the information is necessary to avoid prejudice to measures protecting the health or safety of members of the public

s7(2)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(j) - the withholding of the information is necessary to prevent the disclosure or use of official information for improper gain or improper advantage

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

9.5 - Harington Street Transport Hub - Project Update

s7(2)(b)(ii) - the withholding of the information 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)(g) - the withholding of the information is necessary to maintain legal professional privilege

s7(2)(h) - the withholding of the information is necessary to enable Council to carry out, without prejudice or disadvantage, commercial activities

s48(1)(a)(i) - the public conduct of the relevant part of the proceedings of the meeting would be likely to result in the disclosure of information for which good reason for withholding would exist under section 6 or section 7

Carried

 

  

The meeting closed at 4.28pm.

 

The minutes of this meeting were confirmed at the Finance, Audit and Risk Committee meeting held on 30 June 2020.

 

...................................................

CHAIRPERSON