Finance and Audit Committee

 

OPEN MINUTES

 

 

 

Minutes of a meeting of Finance and Audit Committee held in the Council Chamber, 15 Forth Street, Invercargill on Wednesday, 17 October 2018 at 1.02pm to 1.03pm, 2.55pm to 4.16pm, 4.52pm to 5.24pm.

 

present

 

Chairperson

Ebel Kremer

Councillors

John Douglas

 

Paul Duffy

 

Bruce Robertson (1.02pm to 1.03pm, 2.55pm to 3.51pm)

 

APOLOGIES

Mayor Gary Tong

 

 

IN ATTENDANCE

 

Councillor Julie Keast (1.02pm to 1.03pm, 2.55pm to 4.16pm)

Chief Executive – Steve Ruru

Group Manager, Services and Assets – Matt Russell

Chief Financial Officer - Anne Robson

Communications Manager – Louise Pagan

Governance and Democracy Manager – Clare Sullivan

Committee Advisor - Fiona Dunlop


Finance and Audit Committee

17 October 2018

 

 

 

Adjournment of Meeting

 

The Chair advised that the meeting would have to open and adjourn until the conclusion of the Services and Assets Committee meeting.

 

Resolution

Moved Chairperson Kremer, seconded Cr Douglas and resolved that the Finance and Audit Committee adjourns until the conclusion of the Services and Assets Committee.

 

The meeting adjourned at 1.03pm.

 

The meeting reconvened at 2.55pm.

 

Councillors Kremer, Douglas, Duffy, Keast and Bruce Robertson (external member) were present when the meeting reconvened.

 

1             Apologies

 

There were apologies from Mayor Tong.

 

Moved Chairperson Kremer, seconded Cr Douglas and resolved:

That the Finance and Audit Committee accept the apology.

 

 

2             Leave of absence

 

There were no requests for leave of absence.

 

 

3             Conflict of Interest

 

There were no conflicts of interest declared.

 

 

4             Public Forum

 

There was no public forum.

 

 

5             Extraordinary/Urgent Items

 

There were no Extraordinary/Urgent items.

 

 


 

6             Confirmation of Minutes

 

Resolution

Moved Cr Duffy, seconded External Member Robertson and resolved:

That the Finance and Audit Committee confirms the minutes the meeting held on 24 September 2018 as a true and correct record of that meeting.

 

 

Reports

 

 

7.1

Business Case - Te Anau Wastewater Discharge Method - Kepler Block

Record No: R/18/10/23194

 

Group Manager, Services and Assets – Matt Russell, Management Accountant – Susan McNamara, Community Partnership Leader – Simon Moran and Stantec Consultant Roger Oakley were in attendance for this item.

 

Mr Russell advised that the purpose of the report was to enable the Committee to provide comment on the financial and risk management issues associated with the decision that Council needs to make in regard to the selection of a wastewater discharge method at the Kepler Block based on an updated and peer reviewed business case.

 

(External Member Bruce Robertson left the meeting at 3.51pm.)

 

The Chief Executive addressed the meeting regarding legal advice that he had sought in relation to Section 10 of the Local Government Act 2002.  Section 10 outlines the purpose of local government.  A copy of the legal advice is appended to the minutes as appendix one.

 

(Councillor Keast left the meeting at 4.16pm.)

 

(The meeting adjourned at 4.16pm and reconvened at 4.52pm.)

(Councillors Kremer, Douglas and Duffy were present when the meeting reconvened.)

 

Following the legal advice and more discussion on the matter the chair moved to receive the report but not the rest of the recommendations in the officer’s report.

 

Moved Cr Kremer, seconded Cr Douglas the motion that the Finance and Audit Committee Receives the report titled “Business Case - Te Anau Wastewater Discharge Method - Kepler Block” dated 8 October 2018.

 

The motion was put and declared CARRIED.

 

Moved Cr Kremer, seconded Cr Douglas the motion that the Finance and Audit Committee Recommends to Council that it notes:

•           That it is important for Council to ensure that it meets the relevant legislation requirements including the requirements in section 10 and Part 6 of the Local Government Act 2002

•           That Council needs to ensure that it can, under the Local Government Act 2002, adopt a funding tool that is at variance to its Revenue and Financing Policy if it is to ask the Te Anau and Manapouri community to fund the higher costs associated with option 3 and in this regard asks the Chief Executive to seek legal advice before the matter is referred back to Council for consideration

•           That the Council note that there are risks associated with obtaining, within a tight timeframe the resource consents that are needed for option 3 – subsurface drip irrigation and extension of the current Upukerora discharge

•           That it is important that Council retain centre pivot irrigation as a ‘fall back’ option, should there be delays in obtaining the resource consents needed to proceed with the implementation of option 3

•           That there is a risk that the costs of implementing option 3 could be higher than the estimates indicated in the business case and this could raise questions about the capacity of the Te Anau and Manapouri  communities to fund these increased costs

•           Notes that Council needs to consider the origin of cost increases should they arise in order to ensure that the Te Anau and Manapouri communities are not subjected to cost escalations that arise irrespective of the discharge method, such as those which might be associated with construction of the pipeline to the Kepler block.

 

The motion was put and declared CARRIED.

 

 

 

Final resolution

That the Finance and Audit Committee:

a)        Receives the report titled “Business Case - Te Anau Wastewater Discharge Method - Kepler Block” dated 8 October 2018.

b)        Recommends to Council that it notes:

•           That it is important for Council to ensure that it meets the relevant legislation requirements including the requirements in section 10 and Part 6 of the Local Government Act 2002

•           That Council needs to ensure that it can, under the Local Government Act 2002, adopt a funding tool that is at variance to its Revenue and Financing Policy if it is to ask the Te Anau and Manapouri community to fund the higher costs associated with option 3 and in this regard asks the Chief Executive to seek legal advice before the matter is referred back to Council for consideration

•           That the Council note that there are risks associated with obtaining, within a tight timeframe the resource consents that are needed for option 3 – subsurface drip irrigation and extension of the current Upukerora discharge

•           That it is important that Council retain centre pivot irrigation as a ‘fall back’ option, should there be delays in obtaining the resource consents needed to proceed with the implementation of option 3

•           That there is a risk that the costs of implementing option 3 could be higher than the estimates indicated in the business case and this could raise questions about the capacity of the Te Anau and Manapouri  communities to fund these increased costs

•           Notes that Council needs to consider the origin of cost increases should they arise in order to ensure that the Te Anau and Manapouri communities are not subjected to cost escalations that arise irrespective of the discharge method, such as those which might be associated with construction of the pipeline to the Kepler block.

 

 

 

The meeting concluded at 5.24pm.                      CONFIRMED AS A TRUE AND CORRECT RECORD AT A MEETING OF THE Finance and Audit Committee HELD ON WEDNESDAY 17 OCTOBER 2018.

 

 

 

DATE:............................................................................................

 

 

 

CHAIRPERSON:........................................................................

 


 

APPENDIX ONE