2015-10-19 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                 19 OCTOBER 2015


NBRF EOI Process
NBRF is currently undertaking an Expression of Interest (EOI) process for projects that will
advance the purposes of the trust. NBRF have advised that they are using a two tier process for
determining projects that could be funded. The first stage is to call for EOIs for potential projects.
That has occurred and the NBRF Board is currently assessing those EOIs.
The second stage of the NBRF process (which is about to occur) is for the NBRF Board to invite
those applicants who have projects which best meet the purposes of the trust to work up their
EOIs into detailed projects. The Board would then consider those detailed projects for funding
and the projects can commence if approved by the NBRF Board.
Multi-Year Proposals
The Chairperson of NBRF has written to the CEO advising that they have received a number of
EOIs which warrant further consideration by the NBRF Board but that these projects span a
number of years beyond the current financial year. Some of these projects also have significant
funding commitments but the EOIs appear to be worthy of further consideration by the NBRF
Board.
As such, the NBRF Board has a dilemma. They would like to consider these EOIs further but
need clarity in relation to whether they can commit to projects that have a financial component
beyond 30 June 2016. They are also seeking clarity about whether a financial commitment to
significant projects will impact on their capacity to undertake other projects in the future.
Dealing with each of these issues in turn:-
1.    Multi-Year Funding – The funding deed between NBRF and Council recognises that this
      may occur. Clause 4.2 of the funding deed provides as follows:-
      “Before NBRF commits to any purchase, contract, undertaking or activity that has financial
      commitments beyond the period of approved funding and for which purchase, contract,
      undertaking or activity NBRF will require Council funding, NBRF must apply for and obtain
      approval from Council’s Chief Executive Officer or his or her delegate prior to NBRF
      making the commitment.”.
      At this stage, Council is not being asked to pre-approve funding for future years. NBRF is
      simply seeking Council’s views on whether it would countenance NBRF continuing to
      explore proposed multi-year projects.
      If not, NBRF could not ask any applicants who have relevant multi-year EOIs to further
      refine those projects for formal consideration by the NRF Board as the Board could not
      commit future funding beyond 30 June 2016.
      Conversely, if the Council would consider this “in principle”, then the NBRF Board may ask
      these applicants in their EOI process to develop their proposals further for formal
      consideration by the NBRF Board. In that circumstance, and if the NBRF wished to
      approve these particular projects, then the matter would be referred back to Council in a
      future round of Council meetings for final consideration of committing future funding
      (pursuant to section 4.2 of the funding deed) with full details of the proposed projects being
      provided to Council at that stage.
      My advice is that the Council should agree to advise the NBRF Board that it can proceed to
      consider these multi-year projects submitted under the EOI process. This would allow
      those projects to be fully developed and assessed by the NBRF Board. If after considering
      those, the NBRF wishes to approve those multi-year projects, it would need to provide the
      Council with full details so the Council can consider whether or not it will provide formal and
      final approval under section 4.2 of the funding deed. That decision will be Council’s alone
      under section 4.2 of the funding deed. Depending on timing, such a decision would likely
      be referred to the November or December round of Council meetings.



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